Suppliers Logistic Service Level Elements

Timely information on Delivery Date Issues
· Waterloo Industries expects our suppliers to deliver our orders on the due dates requested. The due dates on our purchase orders are in-house due dates.
· If you cannot meet our order due date you must notify our buyer immediately via fax or e-mail. If our buyer agrees on a due date change we will revise the purchase order to reflect the change.

Performance Measurement
· The "On Time Delivery" module of our Source Performance Rating System measures supplier performance to due date. Under this Service Level Element we will also evaluate whether or not you meet our exp
ectations on how you inform us of these delivery date issues. Based on plant and IHQ buyer experience.

Corrective Action Response
· Waterloo Industries requires that our suppliers respond to Corrective Action Response (CAR) requests within 10 days.

Performance Measurement
· Under Consideration

Complete Fill Quantities
· Waterloo Industries expects our suppliers to ship the exact quantities shown on our purchase orders. In some cases, we have negotiated and agreed upon certain quantity variations. In those cases, where there are special agreements, Waterloo Industries expects our suppliers to ship in accordance with those agreements.
· If you cannot meet the quantities requested on our purchase orders or those quantities involved with special agreements, you must notify our buyer immediately via fax or e-mail. If our buyer agrees upon a quantity change we will revise the purchase order to reflect the change.

Performance Measurement
· The "Quantity" module of our Source Performance Rating System measures supplier performance on fill quantities. Under this Service Level Element we will also evaluate whether or not you meet our expectations on how, and
how frequently you inform us of these fill quantity issues. Based on plant and IHQ buyer experience.

Packing List Accuracy
· Waterloo Industries expects supplier packing lists to show Waterloo Industries Purchase Order No., the quantity shipped,the Waterloo Industries Part No., and the number of boxes/packages shipped per line item on the packing list.
· Part description is optional.
· If the quantity shipped is less than the agreed upon quantity, the packing list must indicate whether or not this item will be back ordered or considered to be shipped complete.

Performance Measurement
· Under Consideration

Bill of Lading Accuracy
· Waterloo Industries expects supplier bills of lading to show the following:
- Correct ship to address (no. P.O. Box numbers)
- Purchase order number
- Quantity shipped (cartons or skids)
- Correct shipping weights
- Correct NMFC freight classification
- Bill of lading must have freight charges marked clearly (whether prepaid, collect, or third party)
- Truck load shipments should include the trailer number and seal number

Performance Measurement
· Under Consideration

Compliance to Packaging and Shipping Specifications
· Waterloo Industries expects our suppliers packaging to be adequate, to insure the arrival of product in good condition.
· Parts must be shipped to the proper location.
· Bar Code labels must be scanable and human readable.
· Part No, quantity per carton, and Purchase Order No. must be on each carton. Any information not pertaining to carton contents must be marked out or covered over.
· A packing list must accompany each shipment.
· Packing lists, if located on the outside of the cartons, must be in such a container as to insure that they stay on the outside of the carton and arrive in useable condition. If packing lists
are placed inside the cartons, the cartons must be marked to show they include a packing list.
· If product is drop shipped direct from a manufacturer, Waterloo Industries requires that the name of the distributor appear on the packing list. The Waterloo Industries Purchase Order No. must also appear on the packing list.

Performance Measurement
· Under Consideration