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STEMCO Commercial Vehicle Products Supplier Program

 

Goals of the Supply Chain / Quality Assurance Supplier Process:

  • Insure a 100% on-time, consistent delivery of usable parts into the production processes of STEMCO at a reasonable cost to STEMCO and a reasonable profit to the supplier.
  • Eliminate the need for inspection upon delivery by a supplier to STEMCO.
  • Eliminate the costs of rework, repair, rejection, handling and return of substandard material or components to suppliers.
  • Reduce the “total cost of ownership” through continuous waste reduction, improvements to process and product, and re-engineering efforts by both STEMCO and its supplier.

The principles to be recognized in support of this program are:

  • The supplier must assume full responsibility for the quality of its commercial vehicle products and services and the integrity of its processes, continuing to work to improve process capability and product quality.
  • STEMCO should not be required to verify that the supplier has provided acceptable product.


STEMCO’s expectations for a supplier’s quality system:

  • Each supplier should have in place or develop an effective quality system based on the fundamentals listed within ISO 9001.
  • A supplier’s quality system should target defect prevention rather than defect detection, monitor the performance of its manufacturing and business system processes, to include statistically based quality planning, with the goal of reduced variation and continuous improvement.
  • If a supplier cannot meet the requirement of being ISO 9001 certified as a minimum, then every effort should be made by the supplier to get certified or their business may be terminated in favor of a supplier who is certified.  During the interim process of becoming certified, non-certified suppliers will either be subject to a periodic audit or a self-certification survey by the STEMCO site that receives the supplier’s product.  The decision on which STEMCO certification process the supplier will be subjected to will be based on supplier’s history, performance, and location proximity to the STEMCO site.


Supplier Selection

  • STEMCO’s Supply Chain Department is responsible for coordinating the supplier selection and approval process.  Assistance from other departments within STEMCO is utilized to assure that recommended suppliers can consistently meet STEMCO’s specifications.
  • STEMCO requires each potential supplier to complete a Supplier Profile, which provides us with essential information necessary in our supplier selection / approval process.  The Supplier Profile form is located on our web-site.
  • Suppliers that will provide material utilized in the manufacture of products by STEMCO are expected to have a formal Quality Management System and be ISO 9001 certified and/or be ISO/TS16949 compliant. As such, evidence of this system will be provided to STEMCO upon request.


Supplier Relations

It is the policy of STEMCO to maintain and practice the highest possible standards of business ethics, professional courtesy, and competence in all dealings with suppliers or potential suppliers. In this regard, the following will be observed when dealing with suppliers, their representatives, or potential suppliers:

  • Accord a prompt and courteous reception with fair and equal treatment for all suppliers.
  • Provide equal opportunity for all suppliers to make price and specification quotations or re-quotes.
  • Guarantee the confidentiality of any specification and/or price quotations submitted by suppliers.
  • Not take advantage of a suppliers error that unfairly enhances STEMCO.
  • Explain clearly to suppliers the reason(s) for any bid or proposal rejection.


Supplier Related Communications

  • The Supply Chain Department is the sole authority within STEMCO to negotiate prices and delivery dates, and to commit STEMCO to any purchase.
  • All communications from suppliers regarding commercial aspects should be directed to the relevant STEMCO Supply Chain Department person assigned to the supplier or subject material.
  • All communications from suppliers regarding quality issues related to its products should be directed to STEMCO’s Quality Assurance Department.
  • Suppliers shall be received at STEMCO’s facilities at any time during normal working hours.  Appointments arranged in advance are necessary and encouraged to ensure proper time and attention will be available.
  • In general, the use of electronic communication is the preferred means to exchange data. The STEMCO Supply Chain Department. will provide detailed information on SSTEMCO’s use of and capabilities to receive electronically transmitted information.


Ethical Practices

STEMCO’s suppliers are a natural extension of a company’s own resources. It is the responsibility of both STEMCO employees and supplier representatives to work to maintain the goodwill and reputation of STEMCO, to develop and maintain good, honest relationships between the company and supplier. The following guidelines are the standards of purchasing practice STEMCO follows and are recommended by the Institute for Supply Management:

  • Avoid the intent and appearance of unethical or compromising practice in relationships, actions, and communications with existing or potential suppliers.
  • Demonstrate loyalty to STEMCO by diligently following the lawful instructions of the company, using reasonable care and granted authority.
  • Avoid any personal business or professional activity that would create a conflict between personal interests and the interests of the STEMCO.
  • Avoid soliciting or accepting money, loans, credits, or preferential discounts, and the acceptance of gifts, entertainment, favors, or services from existing or potential suppliers that might influence, or appear to influence, supply management decisions.
  • Handle confidential or proprietary information with due care and proper consideration of ethical and legal ramifications and governmental regulations.
  • Promote positive supplier relationships through courtesy and impartiality.
  • Know and obey the letter and spirit of laws applicable to supply management.
  • Conduct supply management activities in accordance with national and international laws, customs, and practices along with these ethical principles and standard.


Gift & Gratuities

  • Any STEMCO employee who is offered gifts or gratuities, of more than a nominal value, shall refuse to accept it or shall return it to the giver.
  • No STEMCO employee may accept personal loans or other special considerations from an individual or organization involved in an existing or potential supplier relationship with STEMCO.
  • No employee shall permit any influence that could conflict with the best interests of the company or prejudice the company’s reputation.
  • Association with supplier representative at luncheons, dinners, or business meetings are helpful in establishing or maintaining better business relationships and is neither questionable nor unethical, provided the STEMCO employee keeps himself or herself free of any obligations. To ensure this, Supply Chain personnel are to act as hosts on some occasions and such efforts are to be part of their appropriate business expenses.


Supplier Performance

To assist suppliers in gauging their performance, STEMCO will compile and may distribute "Supplier QA/OTD Performance Reports". These reports quantify each supplier's quality performance and the overall replenishment efficiency of the ordering system, based on established criteria.

Supplier performance is also evaluated vis the ISO/TS elements:

  • Disruptions to STEMCO’s customers caused by supplier defects.
  • Premium freight shipments required to be made to STEMCO.
  • Supplier related issues resulting in STEMCO being placed on “special status” by its customers.
Delivery (%OTD)
Score Rating
98-100 Excellent
90-97 Acceptable
<90 Unacceptable

 

A delivery performance “credit” is applied to each shipment received during a particular month with a due date falling within that month. OTD is the percentage of on time deliveries.’

If a Supplier remains consistently Unacceptable, in either quality or delivery, it is expected that they are in contact with the relevant department within STEMCO on plans to move to the Acceptable or Excellent level. Failure to provide adequate plans or achieve acceptable levels of improvement will be cause for STEMCO to consider the supplier for replacement.


Delivery

  • Purchase orders are placed or released with specific delivery dates requiring receipt at STEMCO’s docks. Suppliers are expected to achieve 100% on-time deliveries. If the supplier determines that delivery dates cannot be met, the STEMCO Supply Chain Coordinator must be advised of the situation immediately.
  • Delivery lead-times are based on agreement between the supplier and STEMCO’s Supply Chain Department.
  • Shipments from suppliers are expected to match the quantity ordered. Partial shipments and excess quantity shipments will cause additional work within STEMCO and as such, are counted against a supplier's performance.
  • Purchase orders reaching past due status may be expedited with freight costs becoming the responsibility of the supplier. Should the product be utilized in STEMCO’s OEM customer’s production line and the delay cause that customer to stop production, any back charges to STEMCO will become the responsibility of the offending supplier.
  • If applicable, the STEMCO Supply Chain Department may require all packing slips, box identification labels, and invoices contain STEMCO's purchase order number, line and release number, and part number.

Production Part Approval Process (PPAP)

Sample submission and approval shall be exercised per the following conditions and in compliance to the current AIAG PPAP requirements:

  • When a new STEMCO designed part or product requires manufacture.
  • When a part needs to be modified because of a STEMCO engineering change.
  • When a different material is used to manufacture the part than was previously approved.
  • When new or modified tools, dies, molds, etc., are used in production.
  • When the supplier makes any change to the production process that could affect    form, fit or function.
  • When tooling and equipment is transferred to a different manufacturing location.
  • When tooling is transferred from a previous supplier.
  • When special tooling is required for the manufacture of STEMCO components, the supplier shall furnish a quote for the cost of said tooling prior to taking any further action.  If appropriate, the Supply Chain Coordinator will initiate an approval process for tooling expenditure and, upon approval, issue a purchase order to the supplier for the tool.  Upon completion of the tool a new part approval is required.
  • The supplier is responsible for performing their own sample inspection prior to submitting samples to STEMCO.  The 3 samples should be numbered and match the inspection results. Submit to the Quality Assurance Department via email at stmqualityassurancedept@stemco.com.
    • STEMCO’s standard PPAP requirement from suppliers is a Level 3 Warrant (any exceptions to this must be authorized by the Stemco Quality Engineer with product line responsibility).
    • For each major characteristic [denoted as K or M on the print] the measurement results of thirty (30) samples are required and Cpk calculated, with the use of form no. QA-344 (available on request).
    • For all other characteristics, the measurement result of three (3) samples is required, with the use of form no. QA-344 (191& 192 are for bearings explicitly). (Forms available on request).
    • Parts from multi-cavity molds or dies shall be approved individually. Samples and measurement data must be provided for each cavity.
  • Quality Assurance will inspect the samples and initiate the approval process. In such  cases, reviews by Product Engineering, Process Engineering, Quality Assurance, and Marketing personnel may be performed. If the provided samples are not approved, the Supply Chain Coordinator will involve other departments, as needed, to assist the supplier to meet STEMCO’s expectations and requirements.


Tooling Control

  • All tooling purchased by STEMCO shall remain the property of STEMCO. Routine storage, maintenance and repair of tooling, unless otherwise negotiated, is the responsibility of the supplier such that expected tool life will be achieved and conforming parts will be produced. The supplier should have formal procedures addressing tooling handling, storage, preventative maintenance and documentation. Upon completion of tooling build, the supplier should provide the Supply Chain Department a full and complete set of tooling drawing in a format acceptable to STEMCO.
  • Suppliers are to advise the appropriate Supply Chain Department when the condition of tooling will not allow the production of parts in conformance to establish STEMCO quality requirements. The supplier should provide adequate time to rework, repair or replace the tooling to assure continuity of supply without the need for deviation from the specifications. This advisement should be accompanied by a capability study that documents the trend toward lack of capability.
  • All STEMCO proprietary tools are to be permanently identified with STEMCO assigned tool numbers and/or part numbers as instructed by the Supply Chain Department. Tooling, gaging and fixture changes shall be documented and traceable by the supplier.
  • STEMCO provided gages must be maintained, used and stored in accordance with best practices. Suppliers are expected to control provided gages as part of their internal gage calibration program. STEMCO supplied gages (such as high value thread ring gages) will be recalled at planned intervals for calibration by STEMCO's Quality Assurance Department and should be shipped with adequate insurance to cover replacement cost of lost or damaged. Suppliers that determine problems with any STEMCO supplied gages should contact STEMCO’s Quality Assurance personnel immediately for instructions.


Packaging

  • Suppliers are responsible for assuring that all components and material shipped to STEMCO are packaged and protected to prevent transit and handling damage.
  • Suppliers are responsible for any special packaging methods as indicated on the purchase order or in the applicable STEMCO engineering or material specifications.
  • The supplier will request approval from STEMCO Supply Chain prior to implementing any packaging change.
  • When different parts are shipped together, the purchase order number, line and release numbers, part number(s), and quantity of each part must be clearly marked on the outside of each box and visible without unloading the pallet or container.
  • If requested, the supplier should utilize the barcode format required by STEMCO (Automotive Industry Action Group format) on all incoming material.


Terms and Conditions

Revision 11162016