EDI Requirements and implementation process 20160527 EDI - requirements and implementation process, Marie Thörnkvist(mthornkv) Issue 2

EDI capability GENERAL INFORMATION Volvo Car Corporation (Volvo Cars) have a 100 % EDI requirement towards all Suppliers of production material. The Supplier must be able to use electronic communication, including sending and receiving EDI messages according to Volvo Cars standard. The Supplier must have the ability to receive both short term and long term delivery schedules. Volvo Cars is using a third party to manage the EDI implementation; VOLVO IT. EDI is ALWAYS setup towards the manufacturing site (MFG), never towards a shipping site (SHP). The supplier must be aware that even though the Simplified (S) or the Homogenous handling unit (M) has been implemented, a supplier’s system must still be able to handle the Mixed handling unit (G). VCC may request a change of handling unit at any time. 20160527 EDI - requirements and implementation process, Marie Thörnkvist(mthornkv) Issue 2

EDI standards Delivery schedule Dispatch note (ASN) Label Odette EDI standards used by Volvo Cars EDIFACT ver. 4.0, based on D96.A (DELFOR, DELJIT and DESADV) Odette Messages ver. 3.2 (DELINS, SYNCRO and AVIEXP) Delivery schedule Dispatch note (ASN) Label Odette DELINS (DELivery INStruction) AVIEXP (AVI d’EXPédition) Odette Tranport Label (OTL) EDIFACT DELFOR (DELivery FORcast) DESADV (DESpatch ADVise) Odette Transport Label (OTL) 20160527 EDI - requirements and implementation process, Marie Thörnkvist(mthornkv) Issue 2

Different Volvo Cars units use Different delivery codes Different Volvo Cars units make different use of delivery and forecast codes in the DELINS/DELFOR. DELFOR: SCC+4' DELINS: DEL+010306:0000+30:::4' 20160527 EDI - requirements and implementation process, Marie Thörnkvist(mthornkv) Issue 2

Delfor/DELINS backorder/Transit Long lead time for deliveries can show as a backorder or in transit in delivery schedules. Example: EU supplier deliver to China or China supplier deliver o EU DELFOR QTY+83:84‘ 83 =Backorder or in transit DELINS DEL+010305:0000+60: :3:1´ 3= Backorder or in transit Please note that backlog in delivery schedules may include quantity in transit. Backorder = depending on if there is any other delayed deliveries In Transit = total sum of goods in transit for this part number 20160527 EDI - requirements and implementation process, Marie Thörnkvist(mthornkv) Issue 2

EDI Logistic Flow Purchasing SAL MFG SHP VCC unit SAL = Sales office Orders, shipping routine Agreements + orders SAL MFG SHP Goods / labels DESADV (ASN) DELFOR/ Call off SAL = Sales office MFG = Manufacturing site SHP = Shipping site 20160527 EDI - requirements and implementation process, Marie Thörnkvist(mthornkv) Issue 2

EDI Implementation process Status 0 Status 20 Status 30 Status 50 Status 60 Status 80 Status 100 Initiation Full EDI The EDI implementation is performed in a series of steps where the supplier reaches a new status when they complete such a step. The steps/status levels are described in the following slides. 20160527 EDI - requirements and implementation process, Marie Thörnkvist(mthornkv) Issue 2

Status 0 - Initiation The supplier is contacted via email by VOLVO IT. The person contacted will be the person who has been stated as EDI contact to Volvo Cars purchasing. The supplier receives information about the implementations process as well as an EDI Data Sheet. 20160527 EDI - requirements and implementation process, Marie Thörnkvist(mthornkv) Issue 2

Status 20 – fill out and return data sheet The supplier shall fill out the data sheet with information necessary for the EDI implementation and return this data sheet to VOLVO IT as soon as possible. Do not forget to put the logical address (UNB-address) of your choice on page 2-3. Without all parameters the EDI communication cannot be set up. If the supplier uses a VAN company, the supplier should contact them to get the correct parameters. If the supplier needs Volvo Cars approval for the connection please notify VOLVO IT. 20160527 EDI - requirements and implementation process, Marie Thörnkvist(mthornkv) Issue 2

STATUS 30 – Set up parameters, wait for first delivery schedule When the data sheet has been filled out and returned both parties set up the parameters in their systems accordingly. When the purchase order is released in Volvo Cars system, concerned Volvo Cars unit will send a DELFOR/DELINS to the supplier according to the attached gate plan. 20160527 EDI - requirements and implementation process, Marie Thörnkvist(mthornkv) Issue 2

STAUS 50 – First delivery schedule has been sent, waiting for first ASN When the first delivery schedule has been sent out the supplier shall send a test dispatch advice note (DESADV/AVIEXP) to Volvo IT for verification. 20160527 EDI - requirements and implementation process, Marie Thörnkvist(mthornkv) Issue 2

STATUS 60 – ASN verification VOLVO IT will quality assure the DESADV/AVIEXP according to the EDIFACT/Odette specification and Volvo Cars requirements. If there are errors in the ASN, VOLVO IT will notify the supplier with feedback on what needs to be fixed/modified. When the ASNs have been approved by VOLVO IT the supplier shall send ASN messages for ALL deliveries. An ASN shall always be sent within one hour after the goods have been loaded. 20160527 EDI - requirements and implementation process, Marie Thörnkvist(mthornkv) Issue 2

STATUS 80 – LABEL verification Step 1: When the ASNs have been approved, the supplier will be asked by VOLVO IT to send via email (pdf) the Odette Transport Labels, corresponding to an existing and already sent DESADV/AVIEXP to Volvo Cars Unit. This is in order to validate the text contents and to compare the given data with the corresponding test DESADV. Step 2: When the pdf version of the label has been verified the supplier will also be asked to send, by post mail, the corresponding ODETTE Transport Label printed from their original printer. This is in order to validate the quality of the bar codes and the paper. 20160527 EDI - requirements and implementation process, Marie Thörnkvist(mthornkv) Issue 2

Status 100 – EDI implementation finished When the DESADV/AVIEXP message and the Odette Transport Label are in accordance with Volvo Cars specifications VOLVO IT will approve the supplier‘s EDI for operational use, as from the supplier‘s next delivery. The supplier will receive an email from VOLVO IT when this occurs. From that point, incorrect files and/or labels sent for production will lead to Administrative reports/fines. This is because these files/labels will be rejected and cause disturbances in our goods reception. 20160527 EDI - requirements and implementation process, Marie Thörnkvist(mthornkv) Issue 2