1. “…a Commitment to Extended Partnership…”
SHIP TO STOCK PROGRAM
“…a Commitment to Extended Partnership…”

2. AGENDA STS Overview Advantages of STS Disadvantages and Risks
Reducing and Eliminating these risks
Pre-requisites to achieve STS status
Functions & Expectation of STS Vendor
STS Vendors
Why Others Suppliers are not in STS?
Qualification of STS Materials For Non-STS Suppliers
Disqualification of STS materials

3. STS Overview
Ship to Stock (STS) is a term that is used to categorize suppliers that have proven record of accomplishment of excellent performance, in terms of quality component/raw material delivery& accuracy paperwork
There is
No Receiving checking for accuracy in quantities
No Incoming Inspection for quality defects by Quality Assurance
Supplier s will be mandated to perform in-process and final inspection checks

4. Advantages of STS 
To reduce the cost of doing business .Enhanced confident & partnership.
To eliminate the bottleneck that frequently arises at Incoming Inspection.
A vendor on STS will save time by eliminating steps in the receiving and inspection process. Value stream mapping.
Incentive & recognitions to non Ship To Stock suppliers to achieve this status. Selling ideas & Business C.I tools

5. Disadvantages and Risks
Vendor may make mistakes in the quantity delivered or the accuracy of the paperwork and this will not be caught until later in the manufacturing process.
Vendor could have a quality issue that could have been caught by incoming inspection.

6. Reducing and Eliminating these risks
The implementation of vendor pre-shipment outgoing quality report will be central to mitigating these risks, as will the need for a closed loop process which links in process quality. (Supplier In-process DPPM report ,Outgoing Quality report)
Supplier Audit
Vendor Scorecard system
Quarterly Business Reviews (QBR)
FAI Process - Eliminate the risk of error during the first production run by using the first article process.

7. Pre-requisites to achieve STS status
A satisfactory supplier evaluation/audit.
A satisfactory score (e.g. 80% and above) in the Supplier scorecard for two consecutive quarters
FAI process for new parts.
Satisfactory In-process DPPM rating

8. Functions & Expectation of STS Vendor
The Vendor achieves STS status for all the components it supplies.
Recovery plan & timeline-one to one replacement/on-line sorting within 2 hours if line down impact due to high fall out reject.
STS vendor is reliable on the shortages qty where caught in the manufacturing process.

9. Functions & Expectation of STS Vendor
An In-process Inspection Report & Outgoing Report will be created and completed by the supplier during his inspection of each production lot.
A “Certificate of Compliance” will be generated by the supplier that will reference Banta Part #, Customer Part Number & Rev ,Purchase Order#, Quantity,Supplier Lot,Manufacturing date

10. Functions & Expectation of STS Vendor
Identification
Supplier who has been granted, based on performance, the authority to perform selected Ship to Stock activities will ensure that the appropriate documents and packaging labels are marked with “SHIP TO STOCK” statement.

11. Why Others Suppliers are not in STS?
Inconsistent supplier quality level.
Difficulties to determine a common quality DPPM goal for all suppliers. (Agreed by supplier,realistic goals.)
Difficulties in convincing suppliers to agreed to STS, particularly on recovery timeline(one to one replacement/on-line sorting) within 2 hours.At the same time,Production may hit into line down due to high fall out reject.Thus, only reliable suppliers are considered as STS vendor.

12. Qualification of STS Materials For Non-STS Suppliers
Applicable only for suppliers whereby not in STS program.
The materials will move from sampling plan(Normal) to STS when 10 consecutive orders are accepted on first inspection.IQC is responsible to keep track the record with database auto trigger.
If a material quality level is to be moved to STS,IQC will qualify/update the part under under STS status .

13. Disqualification of STS materials
Materials will be deemed to be a reject by the production and quality assurance representative when not meeting the specifications and/or the following are observed:
-Line Down impact
-Actions call for either line or/and offline sort
-Action calls for replacement of material

14. Disqualification of STS materials
Material will be removed from STS immediately and moved to an inspection plan at Tightened Inspection Sampling plan.
STS Suppliers will be held responsible for downtime or sort charges due to materials that are identified on the manufacturing line to be rejected. Supplier will take every measure to minimize the down time and facilitate replenishment.
The SQE will communicate the decision to supplier by raising a SCAR.

15. Sustain
Continuation of STS status will be important for the supplier. It is not likely that the supplier will hold onto this status if they have more a set number of shipments/lots with a rating that is below the acceptable level.