Global Supplier Manual
Global Supplier Manual
SupplyNET
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STANLEY® Engineered Fastening Supplier Manual
Table of Contents
Company Background………………………………………...... Page 4
Brands
Globalization at STANLEY® Engineered Fastening
Supplier Manual………………………………………....... Page 5
General Requirements
Quality Requirements……………………………………………… Page 7
Quality Policy
Overview
Purpose and Goal
Supplier Quality Objectives
Supplier Management Philosophy
Supplier Responsibility…………………………………………. Page 8
Organization
Quality Planning
Records
Measurement and Test Equipment
Part and Process Validation and Capability Studies
Production Part Approval Process (PAPP)
Notification of Changes
Material Packaging
Supplier Reliability
Inspection and Sampling Methods
Non-Conformance Requests
Six Sigma…………………………………………………………… Page 11
Nonconformance & Corrective Action …………………….. Page 12
Nonconforming Materials
Corrective Actions
Timeliness
Approval of Suppliers and Materials..……………………….. Page 13
Approved Suppliers
Approved Materials
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Purchasing Information…………………………………………. Page 14
Sourcing Expectations
Request for Quotations
Certificate of Origin
Delivery
Insurance
Warranty
Sales to Third Party
Confidentiality
Supplier Performance ………………………………………….. Page 19
Key Performance Indicators
World Class Supply Base
Supplier Status………………………………………………….. Page 20
Preferred Suppliers
Supplier Strategic Status
Supplier Development…………………………………………. Page 21
New Product Development & Innovation …………………. Page 21
Inventory ………………………………………………………… Page 22
Supplier Managed Inventory
Consignment Stock
Packaging, Labeling, Shipping………………………………… Page 23
International Shipping Documentation……………………….. Page 23
Environmental, Health and Safety…………………………… Page 24
Compliance with Law…………………………………………… Page 24
Terms & Definitions…………………………………………….. Page 25
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STANLEY® Engineered Fastening is a platform within the Industrial Division of
Stanley Black & Decker, Inc. STANLEY® Engineered Fastening includes legacy
businesses known as Emhart Teknologies, Infastech, Fastener Innovation
Technologies, Spiralock®, STANLEY® Assembly Technologies, and all known brands
associated with those formal legal entities who will be referred in this document
as STANLEY® Engineered Fastening.
Background
STANLEY® Engineered Fastening, a wholly owned subsidiary of Stanley Black & Decker,
is a leading supplier of specialty fasteners and fastening systems worldwide, serving
customers with a vast array of custom-designed parts, equipment, and assembly
technology in the Industrial, Aerospace, and Automotive Industries. Most automobiles
produced in Western Europe, Asia, and North America are built with STANLEY®
Engineered Fastening Products, Systems, and Equipment.
STANLEY® Engineered Fastening products also are vital in such major industries as
aerospace, appliance, computer, HVAC, construction, marine, defense, electronics,
communications, medical, and recreation equipment. Among the thousands of global
customers, the company lists Maytag, United Technologies, Hitachi, General Electric,
Apple, Bayliner, and Stanley Black & Decker, the parent company of STANLEY®
Engineered Fastening.
Each of our manufacturing locations operate within recognized quality systems
consistent to ISO9000, AS9100, VDA 6, or TS16949. There are many similarities
between these systems, with a few items that differentiate each, specifically attuned to
our customers’ expectations. Within the next few years, all of our production sites
supporting the automotive industry will be certified to meet the TS16949 quality
standard.
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Globalization at STANLEY® Engineered Fastening
As a recognized industry leader in the development, production, and supply of fasteners
and fastening systems technology, STANLEY® Engineered Fastening will achieve sales
growth through the penetration of existing and emerging markets with breakthrough
technology and extensive customer partnerships on a worldwide basis.
Our leadership position is supported by a flexible cross-functional global organization
that responds quickly to customer and market requirements and one that successfully
leverages our manufacturing, distribution, and supply chain superiority.
STANLEY® Engineered Fastening recognizes its supply base as an extension of its
business and the need for consistent material supplies on a global basis. Our global
supplier network will help create value in the supply chain through continuous
improvement, innovation, efficiency, and the flexibility to deliver in support of the needs of
our customers.
Supplier Manual
The purpose of this Manual is to inform suppliers of the methodologies used by
STANLEY® Engineered Fastening to ensure that all members of its supply chain meet its
requirements and expectations. The guidelines set forth in this Manual applies to all
products, services, and materials purchased by STANLEY® Engineered Fastening. Any
references to decisions or determinations to be made by STANLEY® Engineered
Fastening herein shall be understood to mean decisions or determinations made by
STANLEY® Engineered Fastening in its sole discretion. Notwithstanding the foregoing or
anything else contained in this Manual, except as set forth below in this paragraph with
respect to the section titled – “Compliance with Law”, the legal relationship between
STANLEY® Engineered Fastening and the supplier will be defined solely by the
provisions, terms, and conditions set forth and/or referenced in its purchase order or
other supply agreement entered into between STANLEY® Engineered Fastening and the
supplier. Without limiting the generality of the foregoing, this Manual shall not be
deemed to create any legal obligation or liability of STANLEY® Engineered Fastening or
to constitute any representation, warranty, or agreement by STANLEY® Engineered
Fastening. Compliance with the section titled – (Compliance with law), of this Manual
shall be required of all suppliers and shall be legally enforceable by STANLEY®
Engineered Fastening for all and any suppliers that enter into a supply arrangement
with STANLEY® Engineered Fastening shall be deemed to have agreed to such
provisions. Neither compliance by the supplier with any other guidelines of this Manual,
nor the acceptance or approval by STANLEY® Engineered Fastening of the supplier’s
products, services, or materials, will relieve the supplier of any of the terms or conditions
set forth in the applicable purchase order or supply agreement.
This Global Supplier Manual has been developed to create a favorable business
environment for both STANLEY® Engineered Fastening and its suppliers that strive for
customer satisfaction in an environment that supports continuously improving costs,
quality, deliveries, efficiencies, productivity, and ultimately profits.
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The value of the supply chain is fully recognized within STANLEY® Engineered Fastening.
Continuous improvement can only be accomplished through effective communication,
documentation of quality expectations, and successful implementation of supporting
action plans that support long-term customer loyalty and satisfaction.
If after reviewing this manual you have any questions or comments, please contact the
appropriate Purchasing/Sourcing Representative.
General Requirements
Rights of STANLEY® Engineered Fastening
STANLEY® Engineered Fastening reserves the right to examine all supplier’s
documentation, as referred to in this manual and in relation to other requirements of
STANLEY® Engineered Fastening such as ISO 9001:2008, ISO TS 16949, and GMMOG.
The supplier agrees to permit STANLEY® Engineered Fastening and its customers (if
required) access to all parts of the business premises, including test laboratories,
warehouses, and other areas of interest and to allow them to view relevant documents.
The supplier also guarantees this for their sub-suppliers. STANLEY® Engineered Fastening
accepts any reasonable restrictions imposed by the supplier deemed as necessary to
safeguard the supplier's business secrets.
Confidentiality
Suppliers and Sub-Contractors shall protect as a trade secret all commercial and
technical information not publicly available which becomes known to them through the
business relationship. Information may not be disclosed to third parties or made
accessible in any other way. The duplication of any documents that may have been
provided is permissible only within the framework of commercial requirements and
the terms of copyright. Failure to comply with the above may result in Legal Action being
taken.
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Quality Requirements
STANLEY® ENGINEERED FASTENING: QUALITY POLICY
STANLEY® ENGINEERED FASTENING IS DEDICATED TO FULFILLING OUR
CUSTOMERS’ NEEDS WITH INNOVATIVE, COST-EFFECTIVE ENGINEERED
SOLUTIONS ON A GLOBAL BASIS.
WE ARE COMMITTED TO EXCEEDING THE EXPECTATIONS OF OUR CUSTOMERS
THROUGH UNCOMPROMISING INTEGRITY AND TEAMWORK.
WE OPERATE OUR GLOBAL BUSINESS IN A PARTICIPATIVE ENVIRONMENT OF
INNOVATION AND EXCELLENCE THROUGH CONTINUOUS IMPROVEMENT THAT
PROVIDES ERROR-FREE PRODUCTS AND SERVICES, DELIVERED ON TIME TO
OUR CUSTOMERS.
QUALITY, INNOVATION, AND CUSTOMER SATISFACTION ARE THE MOST
IMPORTANT DRIVERS OF OUR BUSINESS.
MICHAEL A. TYLL
PRESIDENT, STANLEY® ENGINEERED FASTENING
Overview
STANLEY® Engineered Fastening is committed to serving the needs of our customers by
supplying the highest quality products and support services in the world. To do this we must
continually strive to improve our product quality while providing value to our customers.
Realizing that communication and cooperation are key elements to maintaining high-
quality standards, this manual has been developed to be used as a guide for aiding
suppliers in understanding the quality requirements that are expected when supplying
products and services to STANLEY® Engineered Fastening.
The guidance provided by this manual applies to all purchased components and
materials used by STANLEY® Engineered Fastening facilities. However, if the
requirements of this manual conflict with terms and conditions or specific requirements
incorporated into the purchase order, the requirements of the purchase order shall be final.
Questions concerning this manual as it relates to quality should be directed to the
STANLEY® Engineered Fastening SQA & Supplier Development, who will act as the
primary contact between suppliers and other functions within STANLEY® Engineered
Fastening.
Purpose and Goal
As a supplier to STANLEY® Engineered Fastening, your understanding and compliance
with the requirements stated in this manual is an important building block toward
achieving our quality commitment to our customers. Continued growth in our current
markets and entrenchments in new markets worldwide requires that we not only meet
our customers’ needs and requirements, but exceed those needs while adding value
through enhanced products and services.
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Supplier Quality Objectives
The company’s supplier quality objectives exist to ensure that our quality requirements
are accurately specified and communicated. Specifically, we:
• Expect 100% conformance to all quality requirements
• Strive to ensure that our quality and reliability levels are maintained on a
continuous basis
• Strive to eliminate the need for incoming inspection through supplier certification
Supplier Management Philosophy
Quality, Innovation, and Customer Satisfaction are the most important drivers of our
business and thus conformance to the requirements of our customers is inherent in our
processes and procedures. It is the philosophy of STANLEY® Engineered Fastening to
exceed customer expectations wherever possible. Our approach is to consider suppliers
as an extension of our own operations. Underlying this relationship is a mutual
commitment to assure that quality, cost, and delivery requirements are completely
defined and agreed upon before delivery begins.
STANLEY® Engineered Fastening expects suppliers to maintain a documented quality
program to ensure consistency and compliance to our requirements as well as practicing
continuous improvement initiatives. STANLEY® Engineered Fastening expects suppliers
to be committed to introduce and maintain a quality management system that satisfies
the requirements contained in ISO/TS 16949. Certification to ISO/TS16949 is desired
but not mandatory, unless otherwise required by the customer. Suppliers’ Quality
Management systems certified to DIN EN ISO 9001: 2008 or VDA 6, AS9100 can be the
basis for this.
ISO 9001:2008 is the minimum requirement of suppliers to STANLEY® Engineered
Fastening. Where suppliers to STANLEY® Engineered Fastening are trading companies,
STANLEY® Engineered Fastening requires proof of certification of the manufacturers
Quality Management system.
In the spirit of partnership, STANLEY® Engineered Fastening SQA & Supplier
Development provides support to our suppliers for the development of the Quality
Management system where needed.
Supplier Responsibility
Organization
The supplier shall clearly document their quality system. Personnel who are performing
quality functions shall have well-defined training, responsibility, authority, and
organizational freedom to identify, evaluate, and solve problems that affect quality.
Quality Planning
The supplier shall review all requirements specified on the STANLEY® Engineered
Fastening purchase order, engineering drawing, and relevant specifications and
documents during the earliest practical phase to assure that compliance can be attained.
The supplier is expected to identify and provide for the controls, processes, test
equipment, fixtures tooling, and skills required to ensure consistency in product quality.
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STANLEY® Engineered Fastening expects its suppliers to be committed to a quality
assurance program consisting of quality at source:
• Defect Prevention
• Problem Solving
• Corrective Action
Records
For each STANLEY® Engineered Fastening part number, the supplier shall maintain a file
consisting of the following items:
• Purchase Order
• Inspection Reports, PAPPs, Test Data
• Part drawing to the correct engineering change level
• All specifications and documents referenced on the part drawing, purchase order,
and this manual
• Any deviation requests authorized by STANLEY® Engineered Fastening.
Supplier must retain documents for a minimum of 7 years or for a period relevant to the
application. Any variance from this policy needs to be issued in writing at the local level.
NOTE: The Supplier must have a system to ensure that STANLEY® Engineered
Fastening Document Control is issued with all up issued drawings and specifications
where the supplier has Design Authority.
Measurement and Test Equipment
Measurement and test equipment used in the manufacture and/or inspection of
STANLEY® Engineered Fastening products will be calibrated to measurement standards
that are traceable to the appropriate National Standards of the country of manufacture.
Equipment will be calibrated at intervals necessary to ensure accuracy.
Part and Process Validation and Capability Studies
Dimensional First Piece Inspections will be performed on parts produced for STANLEY®
Engineered Fastening. The purpose is to determine prior to delivery that the parts meet
the drawing requirements and that methodologies are compatible.
Parts and processes will be validated by using the Production Part Approval Process
(PPAP) as well as any customer-specific requirements or established documentation.
The PPAP level required will be dependent upon the criticality of the end use. Suppliers
will be notified of the PPAP level required through the initial Purchase Order.
First piece samples shall be representative of that produced from production tooling and
workmanship that can be expected on future shipments.
If nonconformances are found, the nonconformance is to be noted on the report, and
only STANLEY® Engineered Fastening will make a determination of the disposition.
An IMDS submission must be made for all parts manufactured for STANLEY® Engineered
Fastening at PPAP submission stage. In addition, reporting of additional information as
per the current governmental requirements and/or restrictions (Example- Mineral
Content) is required.
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Suppliers must ensure that they and/or their sub-contractors are in compliance to, or
have improvement plans in place for compliance to, the industry standards CQI-9, CQI-
11, & CQI12 for Heat Treatment and Coating Processes respectively.
Production Part Approval Process (PAPP)
Depending upon the level of submission requested, the activities, retentions, and
document submittal will vary. Please refer to the Production Part Approval Process
(PPAP) manual which is available from AIAG (Automotive Industries Action Group).
After a part is validated for production, a first piece inspection will be performed when:
• The processing method is changed
• Raw material changed
• Sub-suppliers changed
• Manufacturing location changed
• New tools/cavities needed for injection molds
• Drawing tolerance is changed
• Tooling is moved from one facility to another
Notification of Changes
The supplier is responsible for notifying STANLEY® Engineered Fastening SQA &
Supplier Development of any changes affecting product quality, performance, reliability,
packaging, delivery, or workmanship. No revisions to design, materials, tooling, or
processes are acceptable without prior approval from STANLEY® Engineered Fastening.
Material Packaging
If packaging is not specified, the supplier will ensure that good commercial packaging
techniques are followed. Improper packaging or lack of proper identification will be cause
for rejection of material when received.
Supplier Reliability
STANLEY® Engineered Fastening operates on the premise that the supplier has
inspected and removed all defective parts from the shipment. A single defect found in
the batch will be cause for rejection of the entire batch without further inspection.
STANLEY® Engineered Fastening will not be liable for product not meeting required
specifications. Product will only be accepted upon STANLEY® Engineered Fastening’s
customer acceptance.
A shipment received by STANLEY® Engineered Fastening may prove to be defective at a
later point in the distribution cycle. The supplier is liable for parts throughout STANLEY®
Engineered Fastening’s receiving, storage, and customer locations, and the end user,
except for deterioration due to exceeding shelf life or improper handling.
Inspection and Sampling Methods
STANLEY® Engineered Fastening employs a variety of inspection methods. These
include sampling inspection. Inspection and sampling methods are determined primarily
from historical data. Complexity of the component produced and the criticality of the
product's end use are two of the criteria which determine the extent of the inspections
performed.
Non-Conformance Requests
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STANLEY® Engineered Fastening requires its suppliers to manufacture or supply all parts
to print. Should the need arise to deviate from the drawing, a request must be made to
STANLEY® Engineered Fastening receiving location Quality Department for a temporary
deviation to allow non-conforming product to be shipped.
The request will be evaluated by STANLEY® Engineered Fastening’s Quality, Engineering,
and Supply Chain Departments. The request must be supported by full details of the
deviation from specification and an appropriate Improvement Plan (See Appendix for
example of STANLEY® Engineered Fastening Improvement plan).
STANLEY® Engineered Fastening will make every reasonable effort to grant such “one
time” requests but is under no obligation for approval.
Six Sigma
Six Sigma is a data-driven methodology for reducing waste, increasing customer
satisfaction, and improving processes, with a focus on the highest possible quality and
maximum financial benefit. To achieve this, it follows the four core stages of Measure,
Analyze, Improve, and Control, utilizing many traditional and modern problem-solving
tools and techniques.
STANLEY® Engineered Fastening endeavors to perform at Six Sigma levels. This cannot
be accomplished without Six Sigma performance and ambition from its suppliers.
Suppliers are encouraged and expected to embrace the Six Sigma principles and
philosophy as a means to controlling their costs and improving their performance in the
supply chain. To adopt and benefit from the methodology will require an “open book”
approach of cost transparency in order to identify areas of waste in a process and
eliminate them.
STANLEY® Engineered Fastening is willing to provide training for suppliers in the Six
Sigma methodologies. These suppliers must demonstrate the will to embrace Six Sigma
principles and have the resources and management support to commit to identified
worthwhile opportunities. The projects identified will be supplier-led with STANLEY®
Engineered Fastening monitoring and providing any additional support it determines to
be necessary during the process. Cost savings identified and achieved from the projects
to be initially shared between STANLEY® Engineered Fastening and the supplier as
agreed.
Suppliers trained in Six Sigma shall further benefit by applying the tools and principles of
the Six Sigma program to other areas of their business.
% PPM Sigma
Good Levels
80.000% 200,000.00 2.34
85.000% 150,000.00 2.54
90.000% 100,000.00 2.78
93.300% 67,000.00 3
95.000% 50,000.00 3.14
97.700% 23,000.00 3.5
99.000% 10,000.00 3.83
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99.379% 6,210.00 4
99.976% 240.00 5
99.990% 100.00 5.22
99.999% 10.00 5.77
100.000% 3.40 6
*with 1.5 Sigma shift.
Defects per Million (PPM) is defined as:
• A key six sigma metric
• A corporate standard for counting defects
• A means of quantifying the impact of our improvements
• Is equal to the number of defects observed per 1 million opportunities
• Magnifies the urgency of problems
PPM = Defects/Opportunities * 1000000
Defects are defined as: Any deviation from the requirements provided by STANLEY®
Engineered Fastening such as but not limited to:
• Any variation in a product or service that fails to meet expected results
• Anything that causes a person or product to deviate from the normal process
(sorting/rework/expediting etc.)
Nonconformance & Corrective Action
Nonconforming Material
All parts and materials received from suppliers are expected to be free of defects, with a
target to achieve Zero PPM.
As determined by STANLEY® Engineered Fastening, any nonconforming material or
parts received will be rejected and returned for a full credit or refund. All risk of loss due
to nonconformance will be with the supplier. Such loss shall include, but not be limited
to, transportation, packing/unpacking, sorting, and administrative fees.
Corrective Action
Suppliers will be notified of any materials or parts received that are found to be nonconforming.
STANLEY® Engineered Fastening will issue a notice of nonconformance to
document the occurrence and will also issue a corrective action request as it determines
to be necessary. The supplier shall immediately advise on containment and corrective
action. Any corrective action notices will be closely monitored and reviewed to ensure
compliance. Suppliers that generate multiple corrective action notices shall risk loss of
business. Further details on nonconformance and corrective action reporting can be
found on the SupplyNET web site.
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Timeliness
Timeliness is critical. All material and/or product defects identified shall require prompt
attention by the supplier to achieve resolution.
Approval of Suppliers and Materials
Approved Suppliers
All suppliers to STANLEY® Engineered Fastening are required to operate a formal
documented quality system. The goal is for this system to be in compliance with
TS16949 or recognized equivalent through third party accreditation.
Any potential new supplier will be required to complete the STANLEY® Engineered
Fastening Supplier Profile document located on the SupplyNET web site. The supplier
may then be subject to a formal supplier appraisal that will be based on the requirements
and elements of TS16949. In conducting this appraisal, STANLEY® Engineered
Fastening will be looking to assess the capability and potential of a supplier to meet its
current and future requirements.
In satisfying a formal supplier appraisal, a supplier will be required to complete the
following qualification process:
• Supply of initial material, product, or service supported by level 3 Production Part
Approval Process (PPAP) documentation in line with TS16949 requirements and
detailed on the SupplyNET web site. Including any customer-specific requirements on
documentation, testing, samples, validations, etc.
• Supply of two further acceptable batches but without the need for PPAP
documentation.
Upon each delivery, a supplier will be expected to satisfy all aspects of STANLEY®
Engineered Fastening’s purchase order and specification. Failure to satisfy any stage of
the requirements will require that stage to be repeated.
Successful supply in accordance with the requirements will result in the addition of that
supplier to the STANLEY® Engineered Fastening Global Register of Approved Suppliers.
Once approved, a supplier can commence the process of gaining approval for other
items. Approved Suppliers also obtain the credentials required to supply any STANLEY®
Engineered Fastening location, as determined by STANLEY® Engineered Fastening.
To retain qualification as an Approved Supplier, maintenance of original quality
approvals through third party audits is required. Non-supply for a period of two years or
prolonged unacceptable performance will result in the removal of a supplier from the
Global Register of Approved Suppliers.
Approved Materials
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In order for a supplier to build up consistent business with STANLEY® Engineered
Fastening, it will be necessary for that supplier to gain approval for individual materials,
products, or services.
Once approved at one location, that material, product, or service will generally qualify as
approved for other STANLEY® Engineered Fastening locations, subject to local facility
approval.
To qualify a new material, product, or service, a supplier is required to go through the
following approval process:
• Supply of the new material, product, or service supported by level 3 PPAP
documentation in line with TS16949 requirements and detailed on the STANLEY®
Engineered Fastening SupplyNET web site. Including any customer-specific
requirements on documentation, testing, samples, validations, etc. Suppliers with
TS16949 accreditation will submit level 3 PPAP documentation unless authorized in
writing by STANLEY® Engineered Fastening.
• Supply of two further batches, but without the need for PPAP documentation.
Completing a second and third batch will enable the supplier to reaffirm their process
and for STANLEY® Engineered Fastening to build confidence in a consistent future
supply.
Upon each delivery, a supplier will be expected to satisfy all aspects of STANLEY®
Engineered Fastening’s purchase order and specification. Failure to satisfy all
requirements at any approval stage will require that stage to be repeated.
STANLEY® Engineered Fastening operates on a dock-to-stock basis and holds it
suppliers responsible for the quality of its materials, products, and services supplied.
Upon approval there will be no Incoming Material/Goods Inwards inspection apart from
that of periodic audits.
In accordance with TS16949, any changes in the supplier’s production process, raw
materials, or manufacturing location will require the resubmission of a PPAP. This will not
affect the approval status of that material, product, or service provided the PPAP is
submitted and approved in writing by STANLEY® Engineered Fastening prior to the
implementation of the change and any shipment of the new material, product, or service.
All STANLEY® Engineered Fastening locations will have access to the individual approval
details for a material, product, or service including supplier PPAP submissions and any
feedback from STANLEY® Engineered Fastening. Successful approval of a material,
product, or service will result in it being added to the “scope” of that supplier on the
Global Register of Approved Suppliers.
STANLEY® Engineered Fastening (or its designated agent) reserves the right to inspect
and/or test a material or product at the supplier’s site prior to dispatch to any of our units.
Purchasing Information
STANLEY® Engineered Fastening realizes that only by developing partnerships with our
suppliers will we be able to achieve the goal of exceeding the expectations of our
internal / external customers and grow our businesses together. In an effort to establish
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a basis for these partnerships STANLEY® Engineered Fastening has established the
following requirements:
Sourcing Expectations
STANLEY® Engineered Fastening will expect the following from its suppliers:
• Commitment to support STANLEY® Engineered Fastening’ Quality Policy.
• Commitment to attain STANLEY® Engineered Fastening’ Supplier Performance
Objectives/Key Performance Indicators (KPIs).
• Commitment to continuous improvement.
• Minimum certification to ISO9001:2008 leading to compliance with TS16949.
• Zero-defect policy.
• Timely and effective corrective action in the event of nonconformance.
• Collaboration with business, technical, and manufacturing personnel.
• Advanced communication of production and shipping concerns.
• Financial stability and sound management.
• Innovator of products, processes, technologies, and systems.
• Commitment to be “best-in-class,” “best-cost” producer.
• Commitment to supplier-managed inventory programs.
• Willingness to participate in consignment programs.
• Communication technologies enabled via EDI and/or the Internet.
• Conformance to all policies and procedures contained in this Global Supplier Manual.
• Acceptance and adherence to the terms and conditions of our purchase orders and
any other supply agreements
• Confidentiality relative to products, processes, drawings, data, and communications
shared between STANLEY® Engineered Fastening and its suppliers including,
but not limited to, all materials / technologies / designs, whether or not they are
considered intellectual property.
Suppliers to STANLEY® Engineered Fastening can expect the following:
• Planning and scheduling forecasts to be provided as agreed upon.
• Open lines of communications and timely response with STANLEY® Engineered
Fastening personnel.
• Access to STANLEY® Engineered Fastening supplier web site (SupplyNET).
• Agreed upon performance and quality expectations.
• Payment in accordance with agreed-upon terms.
• Six Sigma training, support, and mentoring where shared benefits exist.
• Performance appraisal against STANLEY® Engineered Fastening objectives/KPIs.
• Joint participation on productivity and cost-reduction programs, with agreed upon
shared benefit.
• Potential for early supplier involvement with new product development and innovation.
• Long-term mutually beneficial relationships.
Request for Quotations
To remain competitive in our increasingly fast paced industry we must respond to
customer inquiries in an ever shorter time frame. Our customers demand a competitive
and timely response. To support these customer requirements we are issuing Request
for Quotations (RFQ) with 24-hour lead times. The ability to process quotation packages
accurately and return them within 24-hours is becoming more and more vital. Those
suppliers unable to consistently meet this 24-hour submission requirement on Request
for Quotations disadvantage STANLEY® Engineered Fastening, our customers, and
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themselves. Suppliers must quote us at their lowest possible margin at the outset or risk
wasting an opportunity -following up to revise quotes costs all parties valuable time.
It is important that you, the Supplier, complete all of the fields on the STANLEY®
Engineered Fastening Request for Quotation form. The amount of time spent following
up incomplete quotes far exceeds the amount of time needed to complete it properly the
first time. Insufficient information will cause a delay in the quoting process and may
result in the suppliers not being selected for new business orders to supply product. We
prefer that you submit your quotes using the STANLEY® Engineered Fastening Format
and make sure to include the following:
• Request for Quote Number (R.F.Q. No.)
• Part Number
• Part Description
• Estimated Annual Usage (E.A.U.)
• Economical Manufacture Quantity (Minimum Order Quantity)
• Release Quantity
• Weight per 1,000 pieces
• PPAP Sample Lead Time
• First Production Batch Lead Time
• Box Quantity
• Cost per 1,000 pieces
• Inco terms
• Country of Origin (where parts are manufactured)
• Deviations from Print Specifications (if applicable)
• Committed PPM Level
Insufficient information can result in a response to be considered invalid and considered
as a “No Quote”.
Certificate of Origin
Upon importing or exporting goods, government customs require information on the
goods that are crossing their borders. Two key pieces of that information are Country of
Origin (COO) and Harmonized Tariff Schedule Code (HTS Code). COO and HTS Codes
are specific by part.
In order to comply with U.S., Canadian and Mexican Customs requirements, a signed
COO certificate verifying COO and HTS codes for all parts supplied must be submitted
to benefit from the preferential duty treatment offered under the NAFTA program.
Eligibility must be substantiated annually. STANLEY® Engineered Fastening also requires
a Certificate of Origin for each new item that is supplied within the current year with the
initial order. If the merchandise you supply to STANLEY® Engineered Fastening is
manufactured outside a NAFTA country (US, Canada, or
Mexico), a COO certificate is still required. COO and HTS code information is essential
for customs compliance, whether or not the goods qualify for NAFTA preferential
treatment.
Please make certain all fields of the certificate are completed. The certificate of origin is
invalid if the HTS code classification number, producer, net cost, or COO Fields are left
blank. The certificate is invalid by missing signature, page numbers, or tax identification
numbers as well.
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HTS codes can vary in length from 6 to10 digits dependent upon different countries'
classifications; STANLEY® Engineered Fastening requires that you supply the first 6 digits
to the US form. If STANLEY® Engineered Fastening exports your product or procures it
directly into a country other than the US, we may request the 7, 8, 9 & 10th digits
dependent on the countries we are selling the product in (The first 6 digits are
harmonized). This request will come in a separate communication. We may challenge
your classification. After discussion with both parties we will agree on a classification to
be put on the certificate.
If a supplier does not make the finished product and changes its supplier resulting in a
change to country of origin, a new certificate must be issued. If you are a distributor and
buy product from many different sources, you must supply a Certificate of Origin for each
lot in the shipment, that would allow us to cross borders at the correct duty rate. If you
are awarded new parts, a Certificate of Origin will be required with the initial orders.
Certificates of Origin are a requirement of doing business with STANLEY
Engineered Fastening.
We require information on all products that STANLEY® Engineered Fastening has and is
purchasing from your company. Without this information STANLEY® Engineered
Fastening incurs unnecessary duties/taxes and consequently can not supply your goods
competitively to our customers.
Delivery
STANLEY® Engineered Fastening’s Distribution Centers serve the automotive, industrial,
and commercial sectors globally. These routing instructions will supply you with all the
information necessary to ship product from various regions to our STANLEY® Engineered
Fastening locations globally. Please pay specific attention to the ship to location
instructions on your purchase order, as the location may be different from the “ordering”
location.
Insurance
The supplier shall at all times insure and keep itself adequately insured with a reputable
insurance company against all insurable liability and shall, on request, provide
STANLEY® Engineered Fastening with evidence of such insurance as STANLEY®
Engineered Fastening may reasonably require. The supplier shall provide assistance
and advice required by STANLEY® Engineered Fastening or its insurers for the purposes
of contesting or dealing with any action, claim, or matter arising out of supplier’s
performance or failure to perform.
Warranty
Supplier represents and warrants that all products sold to STANLEY® Engineered
Fastening:
• Comply with specifications, the purchase orders, and releases.
• Are free from defects in material and workmanship.
• Comply with all safety and environmental regulations applicable in the countries
of manufacture and sale of the products.
• Do not infringe or otherwise violate the intellectual property rights of any third
party (except if products are exclusively supplied in accordance with a design
specified by STANLEY® Engineered Fastening).
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Sales to Third Party
The Supplier shall not, under any circumstances, without STANLEY® Engineered
Fastening’s prior written consent, manufacture for the benefit of or supply to a third party
any Products that:
• Are based in whole or in part upon the STANLEY® Engineered Fastening
drawings or Specifications.
• Use any Intellectual Property Right of STANLEY® Engineered Fastening or any of
its Affiliates.
• Are based in whole or in part upon the STANLEY® Engineered Fastening
drawings and/or Specifications, or any derivative product, except for any
products or parts that Supplier independently developed or products or parts that
are Fastener Industry Standards.
Confidentiality
The Parties recognize that each of them (“Receiving Party”) may, during the course of
this Agreement, gain knowledge of, have access to, and have otherwise disclosed to it
certain non-public information that is proprietary to the other Party and its Affiliates
(“Disclosing Party”) and which is of a secret or confidential nature (“Confidential
Information”). The following information shall be considered the Confidential Information:
• Information concerning the business operations of either Party or its Affiliates
(including product planning, manufacturing, development, complaints, budgets,
and forecasts).
• Inventions, designs, and research and development programs
The Receiving Party shall not disclose, publish, release, transfer, or otherwise make
available Confidential Information of the Disclosing Party in any form to, or for the use or
benefit of, any third party without the Disclosing Party’s prior written consent.
The obligations of confidentiality shall not apply if:
• The Confidential Information is, or becomes (other than through a breach of this
Agreement) generally known to the public.
• The Confidential Information was in the Receiving Party’s possession prior to its
disclosure by the Disclosing Party, as demonstrated by the Receiving Party’s
written records.
• The Confidential Information is developed independently by the Receiving Party
without reliance on information or materials provided by the Disclosing Party, as
demonstrated by the Receiving Party’s written records.
• The Confidential Information was rightfully received by the Receiving Party
without obligation of confidentiality from a third party, as demonstrated by the
Receiving Party’s written records.
• Disclosure is required by law; provided that the Receiving Party gives the
Disclosing Party prompt notice of the request for disclosure, cooperates with the
Disclosing Party in obtaining a protective order or other remedy, and discloses
only that portion of the Confidential Information which it is legally compelled to
disclose.
Notwithstanding the provision of paragraph 2:
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• STANLEY® Engineered Fastening may disclose Confidential Information to
STANLEY® Engineered Fastening Affiliates provided that STANLEY® Engineered
Fastening shall ensure that such Affiliates are aware of and undertake to
maintain confidential nature of Supplier’s Confidential Information.
• Supplier may disclose STANLEY® Engineered Fastening’s Confidential
Information to its subcontractors to the extent necessary for performing
Supplier’s obligations under this Agreement, provided that Supplier shall ensure
that such Subcontractors are aware of and undertake to maintain the secret or
confidential nature of STANLEY® Engineered Fastening’s Confidential Information.
Each Party acknowledges that the disclosure of the other Party’s Confidential
Information may result in irreparable injury to that Party and that such Party will be
entitled to seek injunctive relief in addition to any other legal or equitable remedies that
may be available.
The provisions of this confidentiality shall survive termination or expiration of conducting
business.
Supplier Performance
Key Performance Indicators
STANLEY® Engineered Fastening has established a number of Key Performance
Indicators (KPIs) to measure and monitor the performance of its supplier network on a
consistent and universal basis. The following are typical STANLEY® Engineered
Fastening Global Sourcing KPIs:
• Quality PPM/Reliability
• On-time delivery/Service level
• Productivity/Cost
• Payment terms
• Inventory Programs
• Leadtime and Minimum Order Quanitity
• Value recognition
KPIs will be assessed both quantitatively and qualitatively, and in turn, be translated into
an overall score through STANLEY® Engineered Fastening’ supplier scorecard rating
system. Supplier scorecard information will be communicated to suppliers via the
SupplyNET web site and will determine the supplier status as Preferred, Approved,
Probation, or Suspended.
Annually, STANLEY® Engineered Fastening will establish supplier goals and objectives to
ensure that ongoing continuous improvements are met. These goals and objectives will
be judged by benchmarking against the “best in class” and the expectations of “supply
chain excellence”. Improvements in the KPIs are expected to be self-led by the supplier
with STANLEY® Engineered Fastening offering expertise or support as deemed
necessary.
World Class Supply Base
STANLEY® Engineered Fastening is committed to continuous improvement through the
entire customer value chain. The vision is to establish a global network of suppliers that
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exhibits excellence in each of the KPI’s which will result in a World Class Supply
Network. STANLEY® Engineered Fastening has established a matrix of rating to each of
these categories and the relationship to excellence.
Supply
Chain
Excellence
Vulnerable Competitive World Class
Quality < 4 Sigma 4 - 5 Sigma 6 Sigma (Zero PPM)
Delivery < 95% 95 - 99% 99%+
Payment Terms < 90 days 90 days > 90 days / 120 days
Inventory Programs None Consignment JIT / VMI
Lead Times > 3 wks > 1 wk < 3 wks =< 1 wk
Productivity (Direct &
Indirect) 0 - 3 % 4 - 7% >7%
Innovation None Occasional
Consistent &
Exclusivity
Supplier Status
Preferred Suppliers
Within the Global Register of Approved Suppliers exists a special category of suppliers
with “Preferred Supplier” status. This select group of suppliers will be deemed to have
adopted best practices in supply strategy, cost, and performance that may be rewarded
with the opportunity to quote on new business across STANLEY® Engineered Fastening
locations. Essentially, these suppliers consistently rank in each of the KPI categories
within the World Class achievement. New business offered could include additional
volumes to an existing location, supply to additional locations, product innovation
programs, or the participation in new product development projects.
Suppliers may achieve Preferred Supplier status by, among other things, demonstrating
year-on-year improvements in the Key Performance Indicators (KPIs). This will be
reflected in the supplier’s overall supplier rating. In addition to excellent performance in
the KPIs, STANLEY® Engineered Fastening will consider suppliers who have
demonstrated a proactive approach in adopting leading-edge techniques and/or
technologies. This may range from the positive participation in specific STANLEY®
Engineered Fastening supplier programs, to adopting information technologies that
enhance the ease of doing business, to innovations in service, process, and product that
reduce overall cost over time.
Preferential status will be given to those suppliers who approach their business with
STANLEY® Engineered Fastening in a manner that provides value and competitive
advantage in the supply chain.
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Preferred Supplier status may be withdrawn at STANLEY® Engineered Fastening’ sole
discretion upon deterioration in the performance of a supplier.
Supplier Strategic Status:
• TBA – The supplier has submitted an application for approval on SupplyNet and
is awaiting disposition from the site purchasing manager.
• Registered – The supplier’s profile has been approved by the site purchasing
manager. A ‘Registered’ supplier status can apply for both Product Related
suppliers awaiting trial, and for all non-Product Related suppliers
• On Trial – ‘On Trial’ status is assigned to new Product Related suppliers whose
materials, products, or services (Product Related Supplies) are in the process of
being evaluated and qualified.
• Approved – An ‘Approved’ status is assigned to a supplier who has successfully
supplied sufficient deliveries of product related supplies that a regular
commitment of business is deemed appropriate.
• Preferred – A supplier may be awarded a ‘Preferred’ status having demonstrated
continued and sustained improvement in business performance. A Preferred
supplier is an Approved supplier that is entitled to first refusal of new business.
• Probation – A ‘Probation’ status is assigned to a Product Related supplier whose
KPI performance has deteriorated to an unacceptable level. Suppliers with a
Probation status are not entitled to be offered any new business and are subject
to additional controls and monitoring by STANLEY® Engineered Fastening.
• Inactive – An ‘Inactive’ status applies to those approved suppliers that have not
been engaged in any form of business activity with STANLEY® Engineered
Fastening for a one-year time period. Reactivation shall include a review of the
supplier’s business condition and a re-evaluation of the materials supplied
Supplier Development
All suppliers will be expected to participate in STANLEY® Engineered Fastening’ supplier
development programs. By working closely with its suppliers, STANLEY® Engineered
Fastening aims to link the technologies and systems that both parties use into a
seamless and effective supply chain. The aim of these supplier development programs
is not to be bureaucratic but to be meaningful and purposeful from which both STANLEY®
Engineered Fastening and its suppliers can benefit.
The level of involvement in the supplier development programs will be determined by
STANLEY® Engineered Fastening and will partly depend on the material, product, or
service provided by the suppliers. The level of involvement will also depend on a
supplier’s formal quality accreditation. In its supplier development programs, which may
differ in approach across locations, STANLEY® Engineered Fastening is committed to
using the principles of TS16949 and Six Sigma as a framework. STANLEY® Engineered
Fastening may expect its key suppliers to demonstrate their commitment towards
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TS16949 by completing self-assessments and, where necessary, corrective actions
within a mutually agreed time frame. In return, STANLEY® Engineered Fastening will
endeavor to provide guidance and support as its suppliers develop their business and
quality systems.
New Product Development & Innovation
STANLEY® Engineered Fastening aspires to maintain its lead position as an innovator in
the development, production, and supply of fastening systems. There is a constant need
to innovate and change in response to and ahead of market changes. New product
development is a route to increased competitiveness and customer satisfaction. The
cooperation and integration of suppliers is vital to the success of this program.
In order to support new product developments, STANLEY® Engineered Fastening
expects its suppliers to be technically competent and have the capability to create value-adding
solutions. We will endeavor to involve suppliers in the development of new
products at the earliest possible stage. Additionally, suppliers are encouraged to share
with STANLEY® Engineered Fastening any new material, process, or product
developments and innovations that can improve our cost basis, increase our ability to
compete, or that opens new markets for both parties.
Time to market for a new product is critical. STANLEY® Engineered Fastening will look for
suppliers that can quickly provide thorough and effective solutions. Excellent project
management skills are expected, supported by a flexible and responsive effort from a
timely quotation to the “fast track” supply of an initial sample, and subsequent full
production quantities.
Expanding the definition of the word “product”, STANLEY® Engineered Fastening
encourages suppliers to be innovative in their approach to enhancing service. Identifying
ways to improve the way business is done is equally important in satisfying customer
needs. This typically includes speeding up the time to market for new products by
sharing information through web-based technologies.
Inventory
Supplier Managed Inventory
STANLEY® Engineered Fastening encourages the principles of supplier-managed
inventory (SMI) as a means to taking costs out of the supply chain and improving
efficiency and effectiveness. By sharing planning information with suppliers, inventory
levels can be reduced throughout the supply chain with each party working from the
same data. This enables suppliers to more effectively plan and optimize their production,
based on reliable planning data.
Moreover, adopting a SMI policy passes the responsibility for continuity of supply to the
supplier. As such, suppliers are expected to have reliable and capable planning systems
to support this approach.
Types of planning data made available to suppliers can include long-range forecasts,
medium-term order loading information with stock levels and transaction histories by
individual item for short-term control.
Extending the principle of sharing planning data, STANLEY® Engineered Fastening
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expects to have similar access to a supplier’s stock level and production schedules in
order to retain a high level of confidence of zero stock-outs.
This SMI policy is applicable regardless of ownership or where the materials or parts are
located. The underlying principle is to take inventory and wasted effort out of the supply
chain and to share the benefits.
Consignment Stock
Consignment stock arrangements are encouraged with suppliers where there are
tangible benefits to both parties. Consignment stock arrangements can provide the
supplier with the opportunity to optimize its manufacturing schedule and also allows for
fluctuations in demand that could not otherwise be accommodated by normal make-to-order
scheduling.
If a consignment stock arrangement is agreed upon, the materials or parts would remain
the property of the supplier until withdrawn for use. STANLEY® Engineered Fastening will
be responsible for the proper storage of the consignment stock to maintain its quality
and integrity at all times.
Rules regarding the replenishment of stock to be agreed locally with the respective
STANLEY® Engineered Fastening representative. Other typical consignment stock
agreement rules would apply in conjunction with the terms and conditions of STANLEY®
Engineered Fastening’s purchase order.
Packing, Labeling & Shipping
STANLEY® Engineered Fastening expects all shipments to be delivered on time, in a
condition fit for immediate use, and in full compliance with the purchase order. Materials
or parts delivered should be readily recognizable, clearly labeled, error free, and where
appropriate, bar coded. Special packaging and labeling requirements may be necessary
by product or location. Suppliers are expected to comply with all specific label, packing,
and shipment requirements as specified by the ordering location. Each delivery must be
accompanied by any supporting documentation such as advice notes, test certificates,
and, where necessary, environmental data sheets.
All deliveries are to be professionally presented and packed with the minimum of
packaging to guarantee protection from deterioration. All forms of packaging should be
presented with a view to ease of handling and the minimum opportunity for damage.
When arranging the shipment of materials or parts to STANLEY® Engineered Fastening,
the supplier is expected to operate a transport policy that is both timely and cost
effective. The supplier should measure performance in relation to cost of transport and
compliance with the delivery schedule, including delivery to the correct
stores/warehouse location during the specified opening hours. Suppliers should have
adequate systems in place to effectively track shipments, supported by available and
knowledgeable staff that can advise on a delivery status.
STANLEY® Engineered Fastening considers the area of shipping and packing an integral
part of the product it purchases. Furthermore, STANLEY® Engineered Fastening expects
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suppliers to treat the issue with the same level of importance as the physical product
itself.
International Shipping Documentation
Original documents must be provided to the designated freight forwarder with every
shipment. STANLEY® Engineered Fastening also requires these documents to be sent
via fax or e-mail on shipment to our receiving location. The documents required are:
• Original Bills of Lading.
• Supplier Invoice.
• Supplier Packing List.
• Certificates of Origin.
All international shipments require wooden packaging materials (e.g., pallets, crates,
boxes, and dunnage). These must be heat treated or fumigated with methyl bromide and
marked with the International Plant Protection Convention (IPPC) logo and appropriate
country code designating the location of treatment.
Environmental, Health, and Safety
STANLEY® Engineered Fastening fully embraces its responsibility to the environment by
having a clear understanding of its significant effects on the environment. It expects this
same level of commitment from its supply base and encourages suppliers to pursue
accreditation to environmental standard DIN EN ISO 14001, EMAS, ELV, ROHS,
REACH, and the worldwide Responsible Care Initiative of the chemical industry to be
incorporated in the QM system and the system to be certified externally.
STANLEY® Engineered Fastening believes that the effective management of
environmental issues produces real cost savings, as well as demonstrating a
commitment to improve the environment. As such, STANLEY® Engineered Fastening has
an environmental management system of policies in place that clearly outlines
procedures and measures that cascade across all of its locations.
Suppliers are expected to conform to existing and future legal obligations, including all
local, state, federal, and international laws, rules, and regulations. Moreover, suppliers
are expected to comply with all governmental/safety constraints on restricted, toxic, and
hazardous materials. In managing their business, suppliers are expected to demonstrate
a firm management commitment in planning reductions in the environmental effects of its
company’s operations, products and supply chain. This may include the reduction of
hazardous waste, reduced energy consumption, and the more effective use of materials
through such programs as recycling.
As a tool to manage our business with suppliers, STANLEY® Engineered Fastening
requires that suppliers provide the necessary information in order to complete an
environmental risk assessment of their operation. This is to identify any environmental
high-risk areas in order that they are addressed through corrective and preventive
actions.
STANLEY® Engineered Fastening strives to provide a safe work environment – injury
free. We recommend that the requirements of the OHSAS18001 safety standards be
integrated in the quality management system. Suppliers shall keep its plants orderly and
clean and pay attention to safety in the work place. We also suggest implementation of
5S.
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Compliance with Law
STANLEY® Engineered Fastening’s suppliers shall be required to ensure that (i) supplier
and all subcontractors and agents involved in the supply, production, or delivery of
products, materials, and services to STANLEY® Engineered Fastening strictly adhere, and
shall continue at all times during their dealings with STANLEY® Engineered Fastening to
strictly adhere, to all applicable federal, state, and local laws, regulations, or prohibitions
of the United States, its territories, and all countries in which the products, materials, or
services are produced or delivered with respect to the operation of their production
facilities and their other business and labor practices, including but not limited to laws,
regulations, and prohibitions governing the working conditions, wages, hours, and
minimum age of the workforce, (ii) any products, materials, or services provided by the
supplier have not been and shall not be provided, produced, or manufactured, in whole or
in part, by child labor or by convict or forced labor, and (iii) any products, materials, or
services provided by the supplier shall not be transshipped for purposes of avoiding
compliance with labor laws. Suppliers shall also be required to furnish such
documentation as required by STANLEY® Engineered Fastening to evidence compliance
with the foregoing.
STANLEY® Engineered Fastening or a third party designated by STANLEY® Engineered
Fastening shall have the right, at any time during which its suppliers are providing
products, materials, or services to it, upon reasonable notice, to inspect the suppliers’
and their subcontractors’ and agents’ facilities to verify compliance with the foregoing.
Terms & Definitions
Bill of Lading: This is a document prepared by the shipper and given to the carrier that
acts as a contract between the shipper and the carrier. From this document the carrier
finds out where the freight is going to (consignee), who will pay the freight bill, what the
product is that they are moving, weight, skid count, and box count and the carrier driver
signs to confirm he picked up what the Bill of Lading stated in case of a claim at
a later date.
Broker: A company that represents you with authority to clear your goods.
Consignee: All freight is paid by the “consignee” as noted on the carriers’ freight bill.
FCL: Full Container. Shipping an order that fills the allowed weight or space. Either full or
visible capacity but not greater than 17,000 kilos.
Freight Forwarder: Is a company that handles all the movement of the freight from
origin to destination. Depending on its authority can be the broker as well and can
represent you to customs.
Small Package: This is related to deliveries by courier, for example Federal Express,
and is typically for shipments less than 330 kilos.
Invoice Requirements
STANLEY® Engineered Fastening requires specific information to be listed on invoices.
Delays in payment can be expected by those suppliers failing to provide complete
information on invoices.
• Name and address of seller.
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• Name and address of buyer.
• Shipping or delivery address.
• Complete description of goods being shipped.
• STANLEY® Engineered Fastening part number as indicated on the purchase
order.
• Quantity of goods being shipped by STANLEY® Engineered Fastening part
number.
• Number of boxes and pallets.
• Total weight of part(s) and shipment.
• Total Invoice price in the currency of the purchase order.
• Additional costs incurred listed separately (packing, plating, etc.).
• Country of Origin (manufacture).
• Harmonized Tariff Schedule number.
• Terms of delivery / Inco terms (EXW, FOB Shipping Point, etc.).