Eradication of Material Re-Labelling at Receiving

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The process of eliminating the need for material re-labelling at receiving involves key steps such as identifying packaging, adding traceability information, defining storage locations, and digitally recording labels. Suppliers and Valeo play crucial roles in this process by exchanging information, printing labels, sending advance shipping notices, and updating component databases. The SDI project scope includes DESADV delivery advice and ASN containing dispatch details, with ASN Rich providing additional packaging and labeling information. Overall, the goal is to streamline the material receiving process and enhance efficiency.

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SDI Supplier Digital Integration Eradication of material re-labelling at receiving Didier HUET Group Supply Chain Director March 2016 February 25 I1 Property of Valeo Duplication prohibited

Few figures Every month, about 6.5 million of labels identifying the packages of components and raw materials: Origin of material labels* 54% of labels are printed and pasted on the packaging, on receipt of the goods at Valeo (re-labelling) 15% 31% of labels are printed and pasted on the packaging by the supplier, not usable by Valeo (not known in our system) 54% 31% 15% of labels are printed and pasted on the packaging by the supplier from Valeo information received by EDI or Web-EDI, thus usable in internal and up-to-date Manual receipt at Valeo Supplier's label Direct receiving by scan The re-labelling activity covers about 80 FTE (*) Figures based on 117 sites answers and average lines February 25 I2 Property of Valeo Duplication prohibited

Eradication of material re-labelling at receiving The labeling process on receipt is required for: Identify each boxes or cardboard boxes when they are not identified by suppliers Add traceability information required by Valeo and/or customer (delivery note, production date, electronic, ) Define the storage location of materials into the plant (identification flat storage, lane number or point of consumption) Record the label digitally in Valeo Comp@ss system for later use (scanning, traceability ...) For eliminating the labelling process at receiving, it is necessary to: 2. Suppliers must retrieve information, put them on the labels and stick them on each packaging 1. Valeo has to send the necessary information of each component to suppliers Being able to receive the EDI message and incorporate it into their own ERP system Being able to print labels with the data sent by Valeo Being able to send Advance Shipping Notice (ASN / DESADV) full or rich, including detailed information on the packaging and labeling Update the component database, including detailed data on packaging (type, quantity per box, weight, ...) Send messages and DELFOR DELJIT EDI or Web EDI with these parameters according to the standard February 25 I 3 Property of Valeo Duplication prohibited

SDI Project Scope DESADV Delivery Shipping Advice or ASN Advanced Shipping Notice contains dispatch information from the supplier including: Product reference Consignment Quantity And ASN Rich contains additional information's such as : Packing information Labelling number DELINS Delivery Instructions Valeo Production Plan sent to the supplier Valeo Sites DELINS DESADV /ASN INVOICE Eradication of material re-labelling at receiving Supplie r SELF BILLING Valeo SSC Finance Billing information are sent electronically via message INVOICE Self-billing is when billing information is sent to the supplier on his behalf based on goods receipt information February 25 I 4 Property of Valeo Duplication prohibited

2 main solutions Classical EDI Web EDI For which flow: For which flow: Intra Valeo s sites LCC suppliers Mature and Tier 1 suppliers Others suppliers High material flows (volume) Medium or low material flows Pre-requisites: Pre-requisites: Integrated ERP and bar-coding system Printers Printers February 25 I 5 Property of Valeo Duplication prohibited