Navi Star Supplier Guidelines

Navistar
Supplier Guidelines
August 2016
Version 01.20
Version: 01.20
Revision Date: August 15th, 2016
Prepared By: Andrew R. Sorensen, CSCP; Supply Chain Manager

Cathy Yates; Supplier Compliance Team Lead
1
Approved By: Tim Coppe; Director, Supply Chain Strategy
Andrew R. Sorensen, CSCP; Supply Chain Manager
Table of Contents:
Section I: Truck Supplier Guidelines

Section II: Engine Supplier Guidelines
Section III: Parts Supplier Guidelines
Appendix:
A. Definition of Chargebacks
2
Section I:
Truck
Supplier Guidelines
3
ELEMENT DESCRIPTION
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1.0 ELECTRONIC DATA/TRADING PARTNER SET UP
TRANSACTIONS & TRADING PARTNER ID’S
2.0 EDI PROCESS FLOW
3.0 TRANSPORTATION
MULTI-STOP ROUTES
SHIPMENTS NOT ON MULTI-STOP ROUTES
EXPEDITED
4.0 D13 PACKING AND SHIPPING STANDARD
PACKAGING
CHEP
PFEP
LABELING
5.0 TRADE COMPLIANCE
NAFTA
DOCUMENTATION REQUIREMENTS
6.0 MASTER SCHEDULING – UNDER CONSTRUCTION
7.0 SUPPLIER PERFORMANCE – UNDER CONSTRUCTION
8.0 SUPPLIER CHARGEBACK
9.0 CONTACT INFORMATION
5
Navistar International Corporation
Navistar International Corporation is a holding company whose individual units, North America
Truck, North America Parts, Global Operations, and Financial Services, provide integrated and
best-in-class transportation solutions. Based in Lisle, IL, the company is a leading manufacturer
of International® brand commercial and military trucks, proprietary diesel engines and IC Bus™
brand school and commercial buses. In addition, the company provides truck and diesel engine
parts and services through its North America Parts Group, and financial services through
Navistar Financial. Additional information is available at: www.internationaltrucks.com .
The company became Navistar International Corporation in 1986, after selling the agricultural
equipment business, International Harvester name and IH brand to Case and its parent,
Tenneco. Navistar was selected as a name with a strong sound, a resonance to Harvester, and
a connection to its root words "navigate" and "star." In 2000, the operating company name was
changed from Navistar International Truck Corporation to International Truck and Engine
Corporation, so that we could focus on the International brand, which at the time was the name
on all of our vehicles and engines. Navistar International Corporation remained the name for the
parent holding company. We believe the world is propelled forward by new ideas, brave
inventors and bold thinkers. We believe ingenuity is the fuel of the future. That's why we're
driven to deliver a future with strong products, sound values and solutions for a changing world.
We are Navistar, and this is our drive to deliver.
6
Procurement and Supply Chain
The Procurement and Supply Chain group’s vision is to drive sustainable innovation and cost
competitiveness. Our mission is to support Navistar’s products with best-in-class strategic
sourcing and supplier relationship management by delivering the best total cost, quality, and
delivery, through people working together, a Lean Enterprise, and acquiring customer
satisfaction.
Truck Supply Chain
This group represents the following Truck facilities: Springfield Assembly Plant (Springfield,
OH); Tulsa Bus Assembly (Tulsa, OK); Navistar Mexico Escobedo Plant Line 1 (formerly known
as Blue Diamond) and Line 2 (formerly known as Escobedo, Mexico); Conway Fabrication
(Conway, AR); Cab Assembly (Springfield, OH); Rollins Export Operations (Springfield, OH).
Supply Chain is responsible for eight key elements for Tier 1 production components supplied to
these facilities.
• Electronic Data/Trading Partner Set up
• EDI Process Flow
• Transportation
• D13 Supplier Packing and Shipping Standard
• Trade Compliance
• Master Scheduling
• Supplier Performance
• Supplier Chargeback
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Electronic Data
Interchange
(Element 1.0)
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ELECTRONIC DATA INTERCHANGE
1.1 Electronic Data Interchange (EDI)
Electronic Data Interchange (EDI) is the electronic exchange of routine business transactions
using standard data formats and integrating them into software applications and business
processes. All suppliers are required to comply with Navistar’s EDI requirements within sixty
days of notification. Failure to do so may result in $50/day noncompliance fee, at the buyer’s
option, until the requirements have been met. Navistar facilities utilize several EDI transactions
to facilitate communication with its suppliers. These transactions utilize the American National
Standards Institute’s (ANSI) X-12 Standard and are supported by the Automotive Industry
Action Group’s (AIAG) Automotive Industry Implementation Guides. These “Implementation
Guides” for applicable transactions can be found at http://www.navistarsupplier.com under the
“EDI” tab. For more information on the American National Standards Institute (ANSI) please
visit http://www.ansi.org; or, for more information on the Automotive Industry Action Group
please visit http://www.aiag.org.
Navistar Corporate ISA ID 01:781 495 650 VAN: GXS
Springfield Assembly GSid 049 645 120 Plant Code 002
Conway Fabrication GSid 021 344 700 Plant Code 009
Escobedo Line 1 Assembly GSid 102 239 394 Plant Code 011
Tulsa Bus Assembly GSid 959 833 575 Plant Code 014
Cab Assembly GSid 147 809 631 Plant Code 015
Rollins Export Ops GSid 526 886 337 Plant Code 025
Escobedo Line 2 Assembly GSid 161 984 646 Plant Code 065
Knoxville Accounting GSid 806 203 014 Plant Code 440
The Truck Group utilizes the following EDI transactions sets:
1.1.1 820 – Remittance Advice – Select Suppliers

1.1.2 824 – Application Advice
1.1.3 830 – Planning Schedule with Release Capability
1.1.4 856 – Ship Notice/Manifest(Advanced Shipping Notice)
1.1.5 861 – Receiving Advice/Acceptance Certificate
1.1.6 862 – Shipping Schedule – Select Suppliers
1.1.7 864 – Text Message – Select Suppliers
1.1.8 866 – Production Sequence – Select Suppliers
1.1.9 997 – Functional Acknowledgement
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EDI Process Flow
(Element 2.0)
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EDI Process Flow
2.1 – Please refer to http://www.navistarsupplier.com for EDI Implementations Guides and

Business Process Guides located under the EDI tab.
2.1.1 Process Flow
 830 Material Release is transmitted once a week and will contain actual truck orders
and production forecasts. This will serve as a shipping authorization for most
suppliers identified by each of the Truck Assembly Plants.
 862 Shipping Authorization is transmitted 4 days per week to select suppliers and
will be used to communicate daily line set requirements and actual truck orders.
 864 Text Message is transmitted as needed and will communicate plant or
operational announcements via EDI.
 866 Production Sequence is transmitted daily to select suppliers and will be used to
identify component requirements in actual production build sequence, for transport
directly to the plant assembly line. All requirements within the EDI 866 are for truck
orders that have been firmly committed, firmly coded, and build sequence
established. Attribute Based Release (ABR’s) are communicated through the 866
and consist of a grouping of feature part numbers.
 997 Functional Acknowledgement must be transmitted from supplier within 24 hours
of document receipt
 Supplier ships all material to each Truck Plant or the respective Truck Plant’s
alternate ship to location. A full listing of each plant’s alternate ship to locations is
available at http://www.navistarsupplier.com/EDI/EDI_General.aspx
 The supplier must transmit an accurate and complete EDI 856 to the using
Truck Plant at time of shipment, please refer to
http://www.navistarsupplier.com/EDI/EDI_Implementation_Guides.aspx for a
complete list of 856 requirements. This ASN along with a quick receive label
attached to the packing list will be used to facilitate receipt into the Logistics Provider
or assembly plant facility as well as the subsequent generation of ERS(Evaluated
Receipt Settlement) Payment process.
 Navistar transmits a 997 confirming electronic receipt of the EDI 856
 Navistar transmits an EDI 861 for receipt discrepancies related to the EDI 856 or
missing ASNs.
 Navistar transmits an EDI 824 advising of internal data issues related to the EDI 856.
Please refer to http://www.navistarsupplier.com/EDI/EDI_General.aspx for the
Appendix of 824 Error Codes.
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2. 2 Electronic Receipts Settlement (ERS)
 Electronic Receipts Settlement (ERS) is a business process between trading

partners that conducts commerce without invoices. The ERS payment to the
supplier is based on the EDI 856 Advanced Shipping Notice transmitted to the
Plants. The supplier will be paid via a paper check, but the remittance advice will be
an EDI820 Electronic Remittance Advice. This Advice will have all the invoices paid
on the check listed, and this includes invoices for locations that are not ERS. The
ERS invoices will also have the part number detail information (part number,
quantity, unit price, and receiving ticket number). Suppliers IT department will
need to provide the EDI820 Electronic Remittance Advice to their Accounting
Departments so that they can reconcile their Accounts Receivable. You may
access the Evaluated Receipt Settlement (ERS) Invoicing Procedures at
http://www.navistarsupplier.com and clicking on the “Payment Instructions/Evaluated
Receipt Settlement (ERS)” tabs.
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Transportation
(Element 3.0)
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TRANSPORTATION
 Navistar takes the position that all requirements will be met unless communicated
to your plant scheduler. Providing early notification may allow the plant to make
alternate plans on a short term basis.
 Any catastrophic issues, force majeure, MUST be communicated immediately for
direct supply and within 24 hours for additional potential supplier impacts or be
subject to financial penalty.
3.1 Multi-Stop Routes (aka milk runs)
A multi-stop route is a structured method of delivery; based on geographic regions, established

frequencies, designated carriers and assigned window times. A route may consist of multiple
suppliers on a single trip. Each supplier will be notified individually of their carrier, frequency
and specific schedules for pick-ups and delivery. Suppliers are required to adhere to their
assigned schedule. XPO Logistics supports the Truck Group multi-stop routes, please utilize
the following links for routing information:
 Navistar Mexico Escobedo Assembly Plant (Line 1 and Line 2) –

[email protected]
 Springfield Assembly Plant, Cab Assembly Plant, – [email protected]
 Tulsa Bus Plant – [email protected]
 Conway Fabrication – [email protected]
 Rollins Export Operations – [email protected]
3.1.1 Cross-Docking
In order to maximize transportation efficiencies, the Truck Group may utilize cross-docking
where feasible. Cross-docking is a process of delivery to one location, consolidation and
reshipment of goods to their ultimate destination. All cross-docking activities will occur at the
ODC (Origin Destination Consolidation) and will be loaded for its subsequent destination. XPO
Logistics supports the ODC. Please contact [email protected] for routing
instructions.
3.1.1.1 Requirements
 An EDI 856 (ASN) must be transmitted for each Truck Plant’s shipment.
 One Packing list and One Bill of Lading must be attached to the shipment for
each using Truck Plant shipment.
 A manifest is created at the ODC and sent with the shipment to each Truck Plant
 Original Packing List and Bill of Lading will be used for receipt at each Truck
Plant
 Do not cross dock parcel shipments, they must be shipped directly to the
Logistics Provider or Truck plant.
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3.2 Shipments not on Multi-Stop Routes
 XPO Logistics routes all production material into all plants, excluding MRO. These
shipments will be made in accordance with the instructions set forth in the “ LTL &
PARCEL ROUTING INSTRUCTIONS” (“Transportation Routing Matrix”) that can be
found online at http://www.navistarsupplier.com under the “Supplier Guidelines / Terms
and Conditions” tab. You will need to enter your email address to login, from there, you
will be able to locate the contact information for XPO Logistics to support your shipping
needs. When follow up contact is made by XPO Logistics, please follow the instructions
they have communicated to you and utilize the following email addresses for routing
instructions:
 Navistar Mexico Escobedo Assembly Plant (Line 1 and Line 2) –
[email protected]
 Springfield Assembly Plant, Cab Assembly Plant –
[email protected]
 Tulsa Bus Plant – [email protected]
 Conway Fabrication – [email protected]
 Rollins Export Operations – [email protected]
3.2.1 Less-than-load (LTL)
In general, less-than-load (LTL) shipments weigh less than 15,000 pounds or utilize less
than 14 linear feet of a trailer. Do not ship loose boxes via LTL.
3.2.2 Parcel
According to the “LTL & PARCEL ROUTING INSTRUCTIONS” (“Transportation Routing

Matrix”), shipments under 150 pounds and less than eight containers should be shipped
via UPS Ground, Collect billing (UPS account numbers are available on the matrix)
located on http://www.navistarsupplier.com under the “Supplier Guidelines / Terms and
Conditions” tab.
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3.3 Expedited
An expedite is a shipment requiring special service, which may require delivery sooner
than the agreed standard. All associated costs for an expedite will be the responsibility
of the party at-fault. If an expedite becomes necessary, the supplier is required to
communicate and receive authorization from XPO Logistics respective plant contact,
(Element 9.0), at time of shipment. The plant will issue an excessive premium freight
charge number (EPFC) which must be referenced on all shipping documents. A supplier
caused expedite EPFC number will have an SC designation and a Navistar caused
expedite EPFC number will have an NR designation. XPO Logistics will route all EPFC
shipments.
NOTE: Failure to comply with these instructions will result in chargebacks

through material invoice reduction. A deviation from a specific routing may be
authorized by Navistar’s local operations personnel on an emergency shipment-
by-shipment basis but must be communicated by supplier to the respective XPO
Logistics plant contact, (Element 9.0). In such cases, you should clearly record
the name of the authorizing individual on the bill of lading.
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D13 Packing and
Shipping Standard
(Element 4.0)
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D13 PACKING and SHIPPING STANDARD - (PACKAGING)
4.1 Packaging
Navistar specification D-13, “Supplier Packing and Shipping Standard” provides

suppliers with general packing and shipping instructions to assure products will arrive at
Navistar locations free from damage, at the lowest cost, and in the form most acceptable
to Navistar material handling practices. In adherence to ISO 14001 Environmental
Standards, Navistar makes all attempts to eliminate waste by mandating returnable
containers and packaging, going forward, returnable packaging will be a condition of
business with Navistar. Navistar provides guidance, instruction and negotiated rates so
that all purchased materials can be shipped in returnable packaging. Below are details
on processes and contact information for custom engineered racks, custom totes / trays
/ dividers and standard CHEP returnable containers.
4.1.1 Packaging Specifications
The D-13 Standard may be found at http://www.navistarsupplier.com following the

“Supplier Guidelines / Terms and Conditions” tab. Additional information can be
obtained by contacting [email protected] - SUBJECT: Containers
4.1.1.1 Navistar Owned Returnable Engineered racks, containers, and bulk containers
Racks, containers, these may be steel racks, bulk containers with/without

dunnage or plastic tray packs. Bulk containers - wire baskets, plastic totes, hand
totes, pallet boxes all designed, built, tested and provided by Navistar. Suppliers
and Navistar plants are responsible to assure each rack/container is clean and
not damaged prior to use. Damaged racks/containers are tagged, segregated
and sent to Navistar approved repair source. Please refer to the Appendix
Section 1.2 on the following link http://www.navistarsupplier.com under the
Supplier Guidelines / Terms and Conditions tab for acceptable size and types.
4.1.1.2 Supplier Owned Returnable racks & containers
Racks and containers designed, built, tested and provided by

Suppliers. Suppliers and Navistar plants are responsible to assure each
rack/container is clean and not damaged prior to use. Damaged
racks/containers are tagged, segregated and sent to Supplier approved repair
source. Please refer to the Appendix Section 1.2 on the following link
http://www.navistarsupplier.com under the Supplier Guidelines / Terms and
Conditions tab for acceptable sizes and types.
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D13 PACKING and SHIPPING STANDARD - PACKAGING (cont.)
4.1.1.3 CHEP Returnable Container
Plastic totes, bulk boxes, lids and pallets provided by Navistar through a third
party provider. These containers are ordered by suppliers as needed from a
CHEP distribution center.
4.1.1.4 Expendable Packaging
Expendable (disposable) packaging should be minimized at all costs. If

expendable packaging is needed, it must meet all the standards to properly
protect the material for transit and ultimate presentation to the assembly
line. Expendable packaging alternatives must be documented and approved via
the “Packaging Specification Form” as well as the Plan for Every Part (PFEP)
process. If the preferred returnable container is not available, the expendable
packaging may be utilized (with prior approval), but must match the size and
standard pack of the returnable packaging. Without prior approval, there will be
no supplier reimbursement. Total packaging weight of small lot boxes must not
exceed 35 pounds for non-repetitive lifting and 25 pounds for repetitive lifting.
4.1.2 CHEP Returnable Container Program
As part of Navistar Inc.’s drive to zero expendable packaging, we have

contracted with CHEP as the preferred returnable packaging supplier. Their
pooled equipment strategy allows that neither Navistar nor its suppliers must
incur the expense of owning and maintaining these returnable container assets.
The pool size will flex as demand does and CHEP only collects fees for the
containers that are used. These costs are intended to be entirely incurred by
Navistar Inc. with the provision that containers at the suppliers’ facilities maintain
an average cycle time of 10 days or less. Beyond 10 days, suppliers will be
expected to contribute to the minimal daily rental charges for CHEP containers.
If already contacted by Navistar, agreed upon returnable containers and standard

pack quantities/counts must be adhered to and returnable container codes must
be present on the EDI 856 (Element 2.0).
For more information about the CHEP Returnable Container Program, please
contact ([email protected]) SUBJECT: CHEP, and include your name, contact
information, name of your company, and your 7 digit Navistar vendor code.
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4.1.3 PFEP – Plan for Every Part
Navistar is in the process of implementing PFEP, which is “the detailed plan for
every part that is used to assemble our vehicles, showing the material flow from
the supplier to the point of application”. The main purpose of Plan for Every Part
is to provide visibility to each parts movement and synchronize the material flow
paths with manufacturing.
It is a Navistar requirement that every supplier submit a Packaging Specification

Form. Any questions should be directed to ([email protected]).
4.1.4 Supplier’s Responsibility
 Suppliers must contact the Truck Group Packaging Specialist before beginning
the packaging design phase.
 Navistar has the option, if necessary, of approving or rejecting a supplier’s
selection of packaging materials and sources.
 Navistar and each supplier will jointly agree on packaging design
 The supplier must ensure that the parts and all packaged shipments, no matter
the style of packaging, are received in acceptable (damage free) condition, are
efficiently and economically packaged for the method of transportation, type of
handling planned for the final destination and its intended point of use.
 It is the supplier’s responsibility to ensure that the container cleanliness should
be such that it does not affect part integrity, it is maintained at all times, and there
is no impact on the part, along with communicating shortage, design changes,
etc. to ([email protected]) SUBJECT: Containers. Specific part cleanliness
specifications should be discussed with your Supplier Quality Engineer (SQE).
 All features/surfaces considered critical to the quality of the operation of the part
(e.g. machined surface, bore, etc.) must be protected from damage and/or
moisture, contamination, or other debris as required by Navistar Engineering and
Supplier Quality.
 Returnable packaging is expected to be designed and in use by the Production
Part Approval Process (PPAP) phase.
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4.1.5 Container Standards
4.1.5.1 General Specifications
All containers must conform to applicable AIAG standards, including a 48”

x 45” x 34” footprints, Please refer to the Appendix Section 1.2 on the
following link http://www.navistarsupplier.com under the Supplier
Guidelines / Terms and Conditions tab for acceptable size and types.
4.1.5.2 General Specifications (cont.)
 All pallet loads are to be secured with a seatbelt buckle system, shrink
wrap, or banding with proper tensioning to secure the unit load. Over
tightening will cause a deflection in the pallet, top cap and/or containers
and this condition is unacceptable. Insufficient tension will allow easy
movement or shifting of packaging components and this condition is also
unacceptable.
 All containers must be loaded to their “mutually agreed upon”
designated standard pack quantities. Partial standard pack
quantities are prohibited.
 All pallet loads must be capable of a minimum double stack condition in
transit and in storage.
 Navistar will NOT provide, fund, or manage WIP (work in process)
containers to the supply base.
4.1.6 Return Shipment of Empty Containers
All containers will be staged and prepared for outbound shipment at the
Assembly Plant or the respective Logistics Provider. The frequency of
empty container shipments will be determined by Navistar and based on
each supplier’s volume, number of part numbers and geographic location.
The success of using returnable containers as cost effective packaging
depends on how well they are cared for, controlled and returned to be
reused.
4.1.7 Damage/Repair Disposition
Suppliers must assure that containers in need of repair are not used for
shipping purposes. It is each supplier’s responsibility to tag the damaged
rack, remove it from circulation and contact a Navistar Containerization
Team representative to arrange shipping to a designated repair source, if
you are using CHEP containers please refer to the CHEP rental
agreement”
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D13 PACKING and SHIPPING STANDARD - LABELING
4.2 Labeling
Truck employs five different labels: a Quick Receive Label, a B-10 Trading Partner
Label, a Master Label, a Mixed Load Label and an ABR Label.
Quick
Receive
Label:
The
purpose of
the Quick
Receive
Label is to
allow
mechanical
match of a
supplier’s
incoming
shipment to
the
information
on the
supplier’s
EDI 856
(ASN). The
ASN # on
this label
must match
exactly to
the ASN #
on the
EDI856. The
Quick
Receive
Label must
be affixed
to, or
incorporate
d into, the
packing list
that is
attached to
the
shipment
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AIAG B-10
Trading
Partner
Label:
This label is
used to
identify the
contents of
B10 Labels
an individual
container, of
a single part
number, for
a shipment.
Two identical
labels must
be affixed to
two adjacent
sides of each
container
shipped.
Master
Label:
A Master
Label is to be
used to
identify the
contents of a
multiple, Master
single pack
load of the
Label
same part
number for a
shipment
(i.e. a skid of
totes
consisting of
one part
number).
Mixed Load
Label:
A Mixed Load
Label is to be
used to
identify a
load of
multiple
single packs
of different
part numbers
for a
shipment
(i.e. a skid of
totes of
varying
part
numbers).
23
D13 PACKING and SHIPPING STANDARD - LABELING (cont.)
4.2 Labeling (Cont.)
ABR Part Label:

Label:
An
Attribute
Based
Release
or ABR
label is to
be used
in the
line Container Label:
sequenci
ng
process
and is
placed
directly
on the
part or
on the
container
.
Labeling information can be found at http://www.navistarsupplier.com under the

“Supplier Guidelines / Terms and Conditions/D-13 Supplier Packing and Shipping
Standard” tabs.
All labels must be scan-able and visible
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Trade Compliance
(Element 5.0)
25
TRADE COMPLIANCE
5.1 Free Trade Agreement and Country of Origin Solicitation
Suppliers will provide to Navistar annually, by the specified due date, an accurate and
complete North American Free Trade Agreement (“NAFTA”) Certificate of Origin for those
products by part number that qualify for NAFTA and an accurate and complete Country of
Origin Affidavit for all products by part number. Country of origin must be marked on the
part &/or its packaging and must match origin declared on export invoices and certificates.
The NAFTA Certificate of Origin must be completed in accordance with regulations
published by the U.S. Department of the Treasury in 19 C.F.R. Sec. 181.11 et seq. and any
amendments thereto, and in accordance with Navistar’s NAFTA Policy included in the
Customs Invoicing Instructions (PR-38 Document) found at
http://www.navistarsupplier.com/Documents/Supplier%20Guidelines/CustomsInvoicingInstruction
sPR38.pdf
In addition to the NAFTA Certificates of Origin or Country of Origin Affidavits mentioned

above, Suppliers will provide to Navistar any requested supplemental part content and
functionality information in relation to import or export operations, which may or may not be
directly related to NAFTA. This also includes corresponding certificates of origin for all
other applicable free trade agreements as requested.
Valid NAFTA and Country of Origin documentation must be provided within the following
timeframes:
Type of Solicitation Request Time Frame from

Request Date
Emergency (part crossed the border at significant duty cost) 48 hours
Monthly (all other parts that crossed border and new parts) 30 days
Annual (all active parts) 60-90 days
In order to meet these response timeframes, suppliers must in turn require tier two
suppliers to provide NAFTA information in a timely manner. However, Navistar does
recognize that occasionally there may be extenuating circumstances that require
additional time to provide NAFTA documentation. In consideration of these
circumstances, Navistar has established the following performance metrics for providing
valid NAFTA documentation:
Type of Solicitation Request Time Frame from Request Date
Performance Metric %
Emergency (part crossed the border at significant duty cost) 48 hours 100 % within 48 hours
Monthly (all other parts that crossed border and new parts) 30 days 100 % within 30 days
Annual (all active parts) 60 days 90 % within 60 days
90 days 100 % within 90 days
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5.2 Customs Invoices and Documentation Requirements
In order to insure the smooth passage of material across international borders, suppliers
will comply with all of the requirements and instructions contained within the Customs
Invoicing Instructions (PR-38 Document) found at:
http://www.navistarsupplier.com/Documents/Supplier%20Guidelines/CustomsInvoicingInstructionsPR38.pdf
27
Master Scheduling
(Element 6.0)
28
MASTER SCHEDULING
6.1 Navistar is currently working on:
6.1.1 Creating an obsolescence policy and the process for filing a claim
6.1.2 Creating a lead time policy
6.1.3 Identifying the actual order week within an EDI forecast
6.1.4 Creating guidelines for FAB vs RAW authorization
6.1.5 Identifying Tier 1 vs Tier 2 responsibilities
Policies, definitions, and guidelines will be communicated to all suppliers via

http://www.navistarsupplier.com
29
Supplier Performance
(Element 7.0)
30
SUPPLIER PERFORMANCE
7.1 Navistar is currently working on developing a supplier performance tool. It will be based on
these guidelines.
The tool and its requirements will be communicated to all suppliers via
http://www.navistarsupplier.com
31
Supplier Chargeback
Policy
(Element 8.0)
32
SUPPLIER CHARGEBACK POLICY
8.1 The goal of these Supplier Guidelines is to provide clear direction for our suppliers guiding
them to consistently provide accurate, precise, timely and cost effective deliveries of materials
to our manufacturing facilities. Failure to abide by these guidelines causes significant extra
costs to Navistar, both hard and soft.
Navistar reserves the right to debit a supplier based on the following criteria for failure to meet
our delivery requirements:
Cost Associated with Line Downtime
Escobedo Line 1, Escobedo Line 2, or $325 USD per minute

Escobedo Paint & Cab.
Springfield Plant, CAS, Springfield Paint Shop, $1,000 USD per minute
or Tulsa Bus Plant.
Cost Associated with Other Issues
Pull at any plant: $2,500 USD per pull

Rework/Repair: $75 USD per hour
Pyxis generated: $100 USD
No roll: $1500 per unit
POA issue: $500 per unit plus $75 per hour
ASN Unavailable: $500 per occurrence
EDI Not Capable: $50 per day until compliant
Expedites: Cost of service plus management fee of $500
Material out of sequence: $500 per load plus $75 per hour re-
sequencing fee
Packaging and Label issue (D-13 Specs): Return trans. cost plus $300
Material over shipments 1st offense: Return trans. cost plus $300
Material over shipments 2nd+ offense: No payment or return of material and $300
management fee
Underutilized trailer: 1/2 Invoice amount + $75 processing fee
Freight Class missing on BOL: Invoice Amount + $75 processing fee
Trailer Seal Missing: $5/pallet + $75 processing fee
Supplier Caused- Accessorial Charges: Accessorial amount paid to carrier + $75

processing fee
Transportation Non-Compliance: Invoice Amount + $75 processing fee
Linear Feet: Invoice Amount + $75 processing fee
RMA: Total Freight cost with fuel (TL) + $75

processing fee
33
Contact Information
(Element 9.0)
34
CONTACT INFORMATION
Plants:
9.1 Springfield Assembly Plant – Plant Code 002
 Materials Manager: Jamie Rigel, 937-342-5142 ([email protected])

 Supply Chain Manager: Cathy Flannery, 937-390-4802 ( [email protected]
 ODW Contract Services (Logistics Provider) Site Manager: Christy Hillard, 937-484-
7780 ([email protected])
9.2 Navistar Mexico Escobedo Assembly Plant – Plant Codes 065, 011
 Materials Manager: Victor Ayala, +011 52 1 81 8154-2032 ([email protected])

 Gonzales De Castilla, Inc. (Customs Broker) Site Manager: Americo Garcia
([email protected])
9.3 Tulsa Bus Plant – Plant Code 014
 Materials Manager: David McCall, 918-833-4012 ( [email protected] )

 Supply Chain Manager: Rodney Tharp, 918-833-4065 ([email protected])
9.4 Conway Fabrication - Plant Code 009
 Supply Chain Manager: Rodney Tharp, 501-505-2313 ([email protected])
9.5 Cab Assembly Plant - Plant Code 015
 Materials Team Leader: Melissa Cordial, 937) 342-7512 ([email protected])

 Supply Chain Manager: Cathy Flannery, 937-390-4635 ( [email protected])
9.6 Rollins Export Operations - Plant Code 025
 Operations Manager: Paul DePuy, 937-325-2484 ([email protected] )

 Manager DDC & Mfg. Materials & Logistics - Global: Jesse Crawford, 937-324-7518
([email protected])
35
CONTACT INFORMATION (cont.)
9.7 Supply Chain
 EDI
o Andrew Sorensen: EDI Manager - [email protected]
o Simba Nyemba: EDI Coordinator - [email protected]
 Transportation - Routing
o Navistar Mexico Escobedo Assembly Plant – [email protected]
o Springfield Assembly Plant, Cab Assembly Plant, – [email protected]
o Tulsa Bus Plant – [email protected]
o Conway Fabrication, expedites – [email protected]
o Rollins Export Operations – [email protected]
o ODC(Origin Destination Consolidation) – [email protected]
 Transportation – Expedites
o Navistar Mexico Escobedo Assembly Plant – [email protected]
o Springfield Assembly Plant, Cab Assembly Plant, – [email protected]
o Tulsa Bus Plant – [email protected]
o Conway Fabrication - [email protected]
o Rollins Export Operations – [email protected]
 D13 Packing and Shipping Standard
o Packaging: [email protected] – SUBJECT: Containers
o PFEP: [email protected]
 CHEP:
 Pietro Salaverry: Material Planning & Flow Manager, 331-332-2574
[email protected] or [email protected] – SUBJECT: CHEP,
Include: your name, contact information, name of company, and 7 digit
Navistar vendor code
 Labeling:
o [email protected]
 Trade Compliance
o Carol Demuth: Foreign Trade Compliance Manager, 331-332-7245
[email protected]
o Kevin Brown: Supervisor, Navistar Import Operations, 248-603-6892
[email protected]
o Claudia Trevino (Documentation requirements) – [email protected]
o Laurie Mysliwiec (NAFTA) – [email protected]
o Jackie Bell – Incoterms –[email protected]
 Master Scheduling
o Navistar is currently working on acquiring contact information for Master
Scheduling
 Supplier Performance, Scorecard Disputes:[email protected]
36
Section II
Engine
Supplier Guidelines
37
38
ELEMENT DESCRIPTION
1.0 ELECTRONIC DATA
TRANSACTIONS
2.0 LOGISTICS
SUPPLIER MANAGED INVENTORY (SMI)
3.0 TRANSPORTATION
MULTI-STOP ROUTES
EXPEDITED
4.0 D13 SUPPLIER PACKING AND SHIPPING STANDARD
PACKAGING
LABELING
5.0 MASTER SCHEDULING
OBSOLESCENCE
6.0 SUPPLIER PERFORMANCE
METRICS
ONLINE ACCESS
EXCLUSIONS
39
Navistar Financial. Additional information is available at: www.internationaltrucks.com .
We are Navistar. And this is our drive to deliver.
40
Purchasing and Supply Chain Services
The Purchasing and Supply Chain Service group’s vision is to drive sustainable innovation and
cost competitiveness. Our mission is to support Navistar’s products with best-in-class strategic
sourcing and supplier relationship management by delivering the best total cost, quality, and
delivery, through people working together, a Lean Enterprise, and acquiring customer
satisfaction.
Engine Supply Chain
Our focus is to develop common processes and maximize efficiencies within the Materials and
Supply Chain areas. The group represents the three U. S. - based engine facilities (hereinafter
referred to as Engine Group): Navistar Big Bore Diesels, LLC (Huntsville, AL); and, Melrose
Park Engine Plant (Melrose Park, IL). Supply Chain is responsible for six key elements for Tier 1
production components supplied to these facilities.
• Electronic Data Interchange
• Logistics
• Transportation
• D13 Supplier Packing and Shipping Standard
• Master Scheduling
• Supplier Performance
41
Electronic Data
Interchange
(Element 1.0)
42
ELECTRONIC DATA
Electronic Data Interchange (EDI) is the electronic exchange of routine business transactions
using standard data formats and integrating them into software applications and business
processes. All suppliers are required to comply with Navistar’s EDI requirements within sixty
days of notification. Navistar facilities utilize several EDI transactions to facilitate communication
with its suppliers. These transactions utilize the American National Standards Institute’s (ANSI)
X-12 Standard and are supported by the Automotive Industry Action Group’s (AIAG) Automotive
Industry Implementation Guides. These “Implementation Guides” for applicable transactions
can be found at http://evalue.internationaldelivers.com/supplier/ under the “EDI” tab. For more
information on the American National Standards Institute (ANSI) please visit http://www.ansi.org
or, for more information on the Automotive Industry Action Group please visit
http://www.aiag.org .
Navistar Corporate ISA ID 01:781 495 650
Navistar Big Bore Diesels, LLC GSid 784 218 583 Plant Code 029
Melrose Park Plant GSid 005 245 238 Plant Code 083
The Engine Group utilizes the following EDI transactions sets:
1.1.1 820 – Payment Order/Remittance Advice
1.1.3 830 – Planning Schedule with Release Capability
1.1.4 846 – Inventory Inquiry/Advice
1.1.5 856 – Ship Notice/Manifest (Advanced Shipping Notice – ASN)
1.2 Evaluated Receipts Settlement (ERS)
Evaluated Receipts Settlement (ERS) is a business process between trading partners that
conducts commerce without invoices. For the Engine Group, ERS invoices are based on the
EDI 846 transmitted to the suppliers as Supplier Managed Inventory (SMI) material is
transferred from the Logistics Provider to the using Plant. The EDI 846 will match the EDI 820
that is transmitted when the check is issued. Both the EDI 846 and EDI 820 will reference the
ASN created by the Logistics Provider on your behalf (which contains a “Z” reference number
that is required for all payment research). You may access the Evaluated Receipts Settlement
(ERS) Invoicing Procedures at http://evalue.internationaldelivers.com/supplier/ and clicking on
the “Payment Instructions/Evaluated Receipt Settlement (ERS)” tabs.
43
Logistics
(Element 2.0)
44
LOGISTICS
2.1 Supplier Managed Inventory (SMI)
Supplier Managed Inventory (SMI) is the ownership and management, by the supplier, of
established inventory levels at a designated facility. All Engine Group suppliers are required to
participate in the SMI program. All non-NAFTA supplying locations are required to maintain an
adequate supply of material within the United States, at their expense, which will then be
shipped to their respective Logistics Provider(s) in order to maintain their established
minimum/maximum inventory levels. Non-NAFTA suppliers should contact the Purchasing and
Logistics group to discuss their specific SMI terms as a global shipper.
2.1.1 Process
 EDI 830 is transmitted as a forecasting tool, not an authorization to ship.

 Each Plant’s Material’s Group will provide the applicable minimum and maximum levels
dependent upon volumes, geographic location and standard packs.
 Supplier will be provided secure access to each Logistics Provider’s website (2.1.2) to
monitor inventory and bulletin boards on a daily basis. If a supplier ships to multiple
facilities, username and passwords should be common and can be shared between
users.
 Supplier ships all material to each Engine Plant’s Logistics Provider in order to maintain
the established minimum and maximum inventory levels. It is the responsibility of the
Supplier to notify the using Plant’s Materials personnel if unusual circumstances will
drive inventory levels below the established minimums, as well as, it is the Supplier’s
responsibility to expedite in this event.
 The Logistics Provider for each Plant is:
o Navistar Big Bore Diesels, LLC:
C/O Perez Services Incorporated
255 Short Pike
Huntsville, AL 35824
o Navistar Melrose Park Plant:
C/O ODW Contract Services
1000 N. County Line Rd
Elmhurst, IL 60126
 The supplier must transmit an EDI 856 (ASN) to the using Engine Plant at time of
shipment. This ASN will be used to facilitate receipt into the Logistics Provider facility
and will not be used in the payment process. Once the ASN is used to facilitate the
receipt into SMI, it will serve no further function in the process.
 Additionally a quick receive label must be affixed to the packing slip attached to the
shipment.
45
LOGISTICS (cont.)
 Once received by the Logistics Provider, a secured website (2.1.2) will be updated to
reflect the receipt and on-hand quantities.
 Engine Plant requirements are generated and communicated to the Logistics Provider
(can occur multiple times per day).
 Logistics Provider will prepare material for shipment to Engine Plant, create an ASN on
the behalf of the supplier and the website will be updated to reflect the shipment and on-
hand quantities.
 Engine Plant receives material and ASN, at which time ownership changes from
supplier to Navistar.
 Navistar transmits an EDI 846 and the ERS process begins.
 Supplier should again check the website and ship material in support of a replenishment
based system.
2.1.2 Logistics Providers and Website Addresses
Navistar Big Bore Diesels, LLC utilizes Perez Services Incorporated.
http://www.webperez2.com
Navistar, Melrose Park Plant utilizes ODW Contract Services.
http://www.melrosepark.odwcs.com (Scoreboard/Access My Account)
NOTE: It is required (see “Supplier Performance – Element 6.0”) that suppliers check the
respective website(s) for each Navistar Engine Plant that they supply, at least once each
plant operating day.
46
Transportation
(Element 3.0)
47
TRANSPORTATION
to your plant scheduler. Providing early notification may allow the plant to make
alternate plans on a short term basis.
The Engine Group makes every attempt to assign each supplier to a truckload route where
feasible. A route is a structured method of delivery; based on geographic regions, established
assigned schedule. XPO Logistics OTM supports the Engine group multi-stop routes. For
inclusion to current route matrix please contact [email protected].
3.1.1 Cross-Docking
In order to maximize transportation efficiencies, the Engine Group may utilize cross-
docking where feasible. Cross-docking is a process of delivery to one location,
consolidation and reshipment of goods to their ultimate destination. All cross-docking
activities will occur at one of the Engine Group Logistics Providers, and will be loaded for
its subsequent destination the same day it is received. Please note the requirements
below.
 Separate EDI 856’s (ASN’s) must be transmitted for each using Plant’s shipment.
 Separate Bills of Lading must be generated for each using Plant’s shipment.
 Note: If shipping via LTL, suppliers are also required to create a Master Bill
of Lading. A Master Bill of Lading must have a combined skid count and
combined total weight for each separate Bill of Lading and must be clearly
marked as “Master Bill of Lading.” Each separate Bill of Lading must be
attached behind the Master Bill of Lading. The “ship to” on the Master Bill
of Lading must read: “Navistar c/o (Logistics Provider’s name and address
where the material will be cross-docked)”
 Each skid must be clearly identified (i.e. 8-1/2” x 11” sheet of paper) with name of
the using Plant. This identification must be facing a loader/unloader, and must
be visible from an unloading device (i.e. forklift, pallet jack, etc.).
 If it becomes necessary to expedite cross-dock material, shipments must be
shipped directly to the Logistics Provider for the using Engine Plant.
 Parcel shipments must be shipped directly to the Logistics Provider for the using
Engine Plant.
48
XPO Logistics routes all production material into all plants, excluding MRO. These shipments
will be made in accordance with the instructions set forth in the “ LTL & PARCEL ROUTING
INSTRUCTIONS” (“Transportation Routing Matrix”) that can be found online at
http://evalue.internationaldelivers.com/supplier/under the “Supplier Guidelines / Terms and
Conditions” tab. You will need to enter your email address to login, from there, you will be able
to locate the contact information for XPO Logistics to support your shipping needs. When follow
up contact is made by XPO Logistics, please follow the instructions they have communicated to
you
than 14 linear feet of a trailer.
3.2.2 Parcel

via UPS Ground, Collect billing (UPS account numbers are available on the matrix)
located on http://evalue.internationaldelivers.com/supplier/ under the “Supplier
Guidelines / Terms and Conditions” tab.
3.3 Expedited
An expedite is a shipment requiring special service, which may require delivery sooner than the
agreed standard. All associated costs for an expedite will be the responsibility of the party at-
fault. If an expedite becomes necessary, the supplier is required to contact the materials
personnel at the respective plant.
NOTE: Failure to comply with these instructions will result in chargebacks through
material invoice reduction. A deviation from a specific routing may be authorized by
Navistar’s local operations personnel on an emergency shipment-by-shipment basis. In
such cases, you should clearly record the name of the authorizing individual on the bill
of lading.
49
D13 Supplier Packing and
Shipping Standard
(Element 4.0)
50
D13 Supplier Packing and Shipping Standard - Packaging
4.1 Packaging
In adherence to ISO 14001 Environmental Standards, the Engine Group makes all
attempts to eliminate waste by utilizing returnable containers and packaging. ALL production
material MUST be delivered in returnable packaging; any exceptions must be pre-approved, in
writing, by the using Plant.
4.1.1 Packaging Specifications
You can find the packaging specifications (D-13 Packaging Specifications) for Navistar
at http://evalue.internationaldelivers.com/supplier/following the “Logistics” tabs.
Packaging specifications specific to the Engine Group are located in the Appendix of this
document.
 Suppliers must contact the Engine Group Packaging Specialist before beginning the
packaging design phase.
 Suppliers must complete a Packaging Approval/Cost Transparency (PACT) Form for all
Tier 1 production intent parts, and all approvals must be in place prior to packaging being
procured. This requirement applies to both returnable packaging and expendable
alternatives if applicable.
 Navistar has the option, if necessary, of approving or rejecting a supplier’s selection of
packaging materials and sources.
 The determination of the type of standardized modular and customized returnable
container and associated internal and/or external dunnage will result from the
collaborative agreement between the supplier and Navistar.
 The supplier must ensure that the parts and all packaged shipments, no matter the style
of packaging, are received in acceptable (damage free) condition, are efficiently and
economically packaged for the method of transportation, type of handling planned for the
final destination and its intended point of use.
 Suppliers will ultimately be responsible for the design and testing of packaging.
 Suppliers are expected to purchase and maintain all returnable packaging.
 Suppliers are required to de-label and clean all packaging. It is the supplier’s
responsibility to ensure that the container cleanliness should be such that it does not
affect part integrity, it is maintained at all times, and there is no impact on the part.
Specific part cleanliness specifications should be discussed with your Supplier Quality
Engineer (SQE).
 All features/surfaces considered critical to the quality of the operation of the part (e.g.
machined surface, bore, etc.) must be protected from damage and/or moisture,
contamination, or other debris as required by Navistar Engineering and Supplier Quality.
 Returnable packaging is expected to be designed and in use by the Pre-Production
Approval Process (PPAP) phase.
51
D13 Supplier Packing and Shipping Standard – Packaging (cont.)
4.1.3 Container Standards
4.1.3.1 General Specifications
 All containers must conform to applicable AIAG standards, including a 48”

x 45” x 34” footprint.
 All pallet loads are to be secured with a seatbelt and buckle system (or
approved alternative containment methods) with proper tensioning to
secure the unit load. Over tightening will cause a deflection in the pallet,
top cap and/or containers and this condition is unacceptable. Insufficient
tension will allow easy movement or shifting of packaging components
and this condition is also unacceptable.
 Container colors will be determined by program, you must contact the
Engine Group Packaging Specialist for the appropriate color scheme prior
to ordering containers.
 Top caps and base pallets are to be black.
 Any deviation from these color schemes must be pre-approved, in writing,
by the Engine Group Packaging Specialist.
 ALL returnable packaging (totes, bulk boxes, custom packaging, internal
dunnage, lids, base pallets, etc.) MUST be labeled with specific supplier
name and location for the return of containers. No artwork or logos are
permitted. This must be maintained over the life of the containers,
otherwise, containers could become lost in the system.
 All containers must be loaded to their “mutually agreed upon” designated
standard pack quantities. Partial standard pack quantities are
prohibited.
 All pallet loads must be capable of a minimum double stack condition in
transit and in storage.
 Navistar will NOT provide, fund, or manage WIP (work in process) to the
supply base.
 The Engine Group does not utilize Navistar part numbers for returnable
containers.
4.1.3.2 Standard Container Specifications
 Standard containers are to be totes of a straight wall design (no lids) and
knock down bulk containers.
 Tote sizes must not exceed 22” in width, as limited by line-side racks.
(Melrose Park Plant only).
 Total packaging weight of material in totes is not to exceed 35 pounds for
non-repetitive lifting, and 25 pounds for repetitive lifting.
52
 All standard containers are sourced through Buckhorn
(http://www.buckhorninc.com). For the appropriate Buckhorn
representative, contact the Engine Group Packaging Specialist.
53
D13 Supplier Packing and Shipping Standard; Packaging (cont.)
4.1.3.3 Custom Container Specifications
 All custom containers must have handholds.

 To ensure that all packaged shipments will reach their intended point of use
without damage to the parts, all packages must be tested under simulated
real-life transportation and handling conditions and must pass Level 2 ASTM
standards.
 A list of preferred custom packaging manufacturers is available from the
Engine Group Packaging Specialist.
 Nine-point style base pallets are prohibited. All base pallets must be
manufactured with solid decking.
 All plastic materials must be recyclable and marked with the standard symbol
in accordance with SAE standard J-1344 and/or meet any local government
regulations that may apply.
4.1.4 Return Shipment of Empty Containers
All containers will be returned from the Engine Plant to each respective Logistics
Provider, staged and prepared for outbound shipment. The frequency of empty
container shipments will be determined by Navistar and based on each supplier’s
volume, number of part numbers and geographic location. The success of using
returnable containers as cost effective packaging depends on how well they are
care for, controlled and returned to be reused.
4.1.5 Damage/Repair Disposition
Suppliers must assure that containers in need of repair are not used for shipping
purposes. It is each supplier’s responsibility to repair/replace all damaged
containers immediately.
54
D13 Supplier Packing and Shipping Standard – Labeling
4.2 Labeling
Engine employs four different labels: a B-10 Trading Partner Label, a Quick Receive Label, a
Master Label and a Mixed Load Label.
Quick
Receive
Label:
The
purpose of
the Quick
Receive
Label is to
allow
mechanical
match of a
supplier’s
incoming
shipment to
the
information
on the
supplier’s
EDI 856
(ASN). The
ASN # on
this label
must match
exactly to
the ASN #
on the
EDI856. The
Quick
Receive
Label must
be affixed
to, or
incorporate
d into, the
packing list
that is
attached to
the
shipment
55
AIAG B-
10
Trading
Partner
Label:
This label is B10 Labels
used to
identify the
contents of
an individual
container, of
a single part
number, for
a shipment.
Two identical
labels must
be affixed to
two adjacent
sides of each
container
shipped.
Master
Label:
A Master
Label is to
be used to
identify the
contents of Master
a multiple, Label
single pack
load of the
same part
number for
a shipment
(i.e. a skid
of totes
consisting
of one part
number).
Mixed
Load
Label:
A Mixed
Load Label
is to be
used to
identify a
load of
multiple
single packs
of different
part
numbers
for a
shipment
56
Master Scheduling
(Element 5.0)
57
MASTER SCHEDULING
5.1 Obsolescence
Navistar makes every attempt to minimize obsolescence when changes occur. However,
recognizing that there may be occasions where suppliers find themselves with excess material,
following is the policy adopted by Navistar to address these claims.
5.1.1 Identification of Obsolescence
Navistar, Inc. will entertain obsolescence claims for no more than three weeks of
finished material and an additional six weeks (total of nine weeks) of raw material. For
finished material, Suppliers will be permitted to utilize the highest cumulative EDI 830,
less cumulative ship quantity, in the three-week period prior to the EDI 830 when the
part last appeared. For raw material, Suppliers will be permitted to utilize the highest
cumulative EDI 830, less cumulative ship quantity, in the nine-week period prior to the
EDI 830 when the part last appeared. Special circumstances that may potentially affect
the above time windows must be pre-approved by Purchasing and the affected
NAVISTAR, INC. Plant(s).
5.1.2 Process for Filing an Obsolescence Claim
 All claims must be filed electronically using the form provided and forwarded to the
Supply Chain Manager (Truck) and Business Team Leader (Engine) for the affected
Plant.
 Only one production part number per claim filed (obsolescence costs for engineering
orders are not covered by this policy).
 All claims must be filed within 45 calendar days from the issue date of the last
EDI 830 that contains requirements other than zero for the affected part. Filing
extensions will not be accepted. If no claim is filed, all remaining material in
SMI after that 45-day limit will be returned to the supplier, freight collect.
 The supplier is responsible for retaining all release data used to calculate highest
EDI 830 quantities (Navistar, Inc. employees are not authorized to provide prior EDI
830 data to suppliers).
 Final claim values may not exceed the unit cost of the Navistar, Inc. production part
number.
 Navistar, Inc. reserves the right to request that all raw components be completed into
finished material for purchase.
 Navistar, Inc. reserves the right to physically audit all claimed material and cost data
identified in the claim.
 Navistar, Inc. reserves the right to request proof of disposition for any material that is
to be scrapped at the supplier location.
 Rejected claims may not be re-submitted.
 Failure to follow these guidelines as defined may result in non-payment and/or
claim rejection.
58
Supplier Performance
(Element 6.0)
59
SUPPLIER PERFORMANCE
6.1 Metrics
Engine has developed a Supplier Performance assessment tool for issues relative to Materials
and the Supply Chain. There is a separate score developed for each using Plant a supplier
ships to. This rating is based on a 100-point scale for each calendar month. This assessment
targets seven key metrics: order shortages, website logins, minimum/maximum violations,
packaging, labeling, ASN compliance and transportation; which are defined below.
 Order Shortages (25 possible points; 5 point deduction per violation up to 25 points)
o Plant orders from SMI that cannot be completed for full requirement (2.1.1).
 Website Logins (20 possible points; 5 point deduction per violation up to 20 points)
o Required to check appropriate SMI Logistics Provider website(s) each Navistar Engine
Plant operating day (2.1.2).
 Minimum/Maximum Violations (20 possible points; 2 point deduction per violation up to 20
points)
o SMI levels fall below or above the established inventory levels (2.1).
 Packaging (10 possible points; 1 point deduction per violation up to 10 points)
o Adherence to: Navistar approved returnable container and CHEP returnable container
guidelines, standard pack, timely submission of packaging specification form (4.1)
 Labeling (10 possible points; 1 point deduction per violation up to 10 points)
o Adherence to Labeling Guidelines (4.2; excluding 4.2.2).
 ASN Compliance (10 possible points; 1 point deduction per violation up to 10 points)
o Properly formatted, identical match to inbound receipt, timely EDI 856 – ASN (1.1.5) and
proper use of Quick Receive Label (4.2.2).
 Transportation (5 possible points; 5 point deduction per violation up to 5 points)
o Utilization of proper carrier (Element 3.0); instances of premium freight; multiple
shipments received during same day; correct transportation information on EDI 856
(ASN).
6.2 Online access
Suppliers can access their supplier performance at any time by logging on to:
https://evalue.internationaldelivers.com/supplierscorecard/. Suppliers are required to have a
Navistar login identification, which can be received by emailing
[email protected] . Each unique user must obtain a unique username (i.e.
usernames cannot be shared). The information on this website is updated each evening to
reflect activity for the current day.
6.3 Exclusions
Violations can only be excluded by Engine Group Plant Materials personnel based on provided
evidence to the contrary, or prior approval from same.
NOTE: All violations within Supplier Performance are subject to the Supplier Chargeback Policy
for suppliers who have demonstrated systemic or chronic issues with no presence of a corrective
action plan.
60
Supplier Chargeback
Policy
(Element 7.0)
61
SUPPLIER CHARGEBACK POLICY
7.1 Policy
The goal of the Supplier Charge-Back Policy is to encourage the Engine Group’s suppliers to
consistently provide accurate, precise, timely and cost effective deliveries of materials to the
Engine Plants by holding them financially accountable for the consequences of their non-
performance. This Policy will set uniform guidelines for the Engine Plants to follow in order to
recover, from the supplier, the costs associated with the supplier’s non-performance.
Non-performance is defined as any event that constitutes failure to maintain the minimum
performance requirement under the Engine Group Supplier Guidelines. The Materials
organization will be responsible for monitoring suppliers’ adherence to these standards and will
initiate the proper actions necessary to charge back suppliers’ for their non-performance. The
following sections detail the areas of responsibility for the Materials organization to follow when
initiating charge-backs against suppliers.
7.2 Supplier Performance
Supplier must adhere to 7 key performance metrics: Order Shortages, Website Logins,
Min/Max levels, Packaging, Labeling, ASN Compliance, and Transportation which is outlined in
the Engine Group Supplier Guidelines located on www.navistarsupplier.com. Supplier must
maintain a 3 month rolling average of 85% per plant. Failure to comply with these requirements
will result in a Supplier Performance debit of $2500 per plant for each month they are non-
compliant.
Associated Costs

processing fee
Linear Feet Utilization: Invoice Amount + $75 processing fee

processing fee
Global Expedites: total freight cost + $75 processing fee
Supplier Performance (See Section 7.2): $2500 Per Plant Per Month
Expedites / Premium Freight Total Freight cost with fuel (TL) + $75
processing fee
Trailer Seal Missing $5/pallet + $75 processing fee
62
Contact Information
(Element 8.0)
63
CONTACT INFORMATION
8.1 Navistar Big Bore Diesels, LLC
 Materials Business Team Leader: Kathy Lemley ([email protected])

 Perez Services Incorporated (Logistics Provider) Site Manager: Tim Swart (256-319-
1000; [email protected])
8.4 Melrose Park Engine Plant
 Materials Manager: Mark White ([email protected])

 ODW Contract Services (Logistics Provider) Site Manager: Jeff Day (708-397-1060;
[email protected])
8.5 Supply Chain
 EDI
o Andrew Sorenson: EDI Manager, 331-332-6829
([email protected])
o Simba Nyemba: EDI Coordinator, 331-332-2106 ([email protected] )
 Logistics
o Navistar Big Bore Diesels, LLC utilizes Perez Services Incorporated
 http://www.webperez2.com
 Site Manager: Tim Swart(256-319-1000)
o Navistar Melrose Park Plant utilizes ODW Contract Services
 http://www.melrosepark.odwcs.com
 Site Manager: Jeff Soderberg (708-397-1060
 Transportation
 D13 Supplier Packing and Shipping Standard
o Packaging:
 Ronald Schwanke, 317-322-2893 ([email protected])
o PFEP:
 [email protected]
o CHEP:
 Pietro Salaverry: Material Planning & Flow Manager, 331-332-2574
[email protected] or
 [email protected] – SUBJECT: CHEP,
 Include: your name, contact information, name of company, and 7
digit Navistar vendor code
o Labeling:
 [email protected]
64
Section III
Parts
Supplier Guidelines
65
66
ELEMENT DESCRIPTION
1.0 ELECTRONIC DATA/TRADING PARTNER SET UP
TRANSACTIONS & TRADING PARTNER ID’S
2.0 EDI PROCESS FLOW
3.0 TRANSPORTATION
MULTI-STOP ROUTES – CONSOLIDATION POINTS
EXPEDITED
4.0 D13 SUPPLIER PACKING AND SHIPPING STANDARD
PACKAGING
LABELING
5.0 HAZARDOUS MATERIALS & PARTS WITH CHEMICAL PROPERTIES
REQUIREMENTS
PART IDENTIFICATION
6.0 TRADE COMPLIANCE
NAFTA
DOCUMENTATION REQUIREMENTS
7.0 PROBLEM REPORTING & RESOLUTION
8.0 INVENTORY PLANNING
67
Navistar Financial. Additional information is available at: www.internationaltrucks.com
We are Navistar, and this is our drive to deliver.
68
Procurement and Supply Chain
The Procurement and Supply Chain group’s vision is to be an organization of leaders in Supply
Chain that drive value to our customers. Our mission is to create Supply Chain solutions that
deliver parts and finished products on-time with quality in a cost effective manner while
providing sustainability through Lean principles, proven processes, and people development.
Parts Supply Chain
This group supports the Parts Distribution Centers (Atlanta PDC, Dallas PDC, Eastern Canada
PDC, Edmonton PDC, Las Vegas PDC, Midwest PDC, Portland PDC, Queretaro PDC, and
York PDC) and 3rd Party Packagers (Express Packaging, NewStream Enterprises, and
Leyden). Supply Chain is responsible for the below elements in support of these facilities.
• Electronic Data/Trading Partner Set up
• EDI Process Flow
• Transportation
• D13 Packing and Shipping Standard
• Hazardous Materials & Parts with Chemical Properties
• Trade Compliance
• Inventory Planning
• Problem Reporting & Resolution
69
Electronic Data
Interchange
(Element 1.0)
70
ELECTRONIC DATA INTERCHANGE
Electronic Data Interchange (EDI) is the electronic exchange of routine business transactions using
standard data formats and integrating them into software applications and business processes. All
suppliers are required to comply with Navistar’s EDI requirements within sixty days of notification. Failure
to do so may result in $50/day noncompliance fee, at the buyer’s option, until the requirements have been
met. Navistar facilities utilize several EDI transactions to facilitate communication with its suppliers. These
transactions utilize the American National Standards Institute’s (ANSI) X-12 Standard and are supported
by the Automotive Industry Action Group’s (AIAG) Automotive Industry Implementation Guides. These
“Implementation Guides” for applicable transactions can be found at http://www.navistarsupplier.com
under the “EDI” tab. For more information on the American National Standards Institute (ANSI) please
visit http://www.ansi.org; or, for more information on the Automotive Industry Action Group please visit
http://www.aiag.org.
Navistar Corporate ISA ID 01:781 495 650 VAN: GXS

Service Parts Operations GSid 122 092 406 See List Below
Knoxville Accounting GSid 806 203 014 820 Txn / Plant 440
EDI-810 Invoice ASN & PO PDC / Packager

Ship-to-code Ship-to-code Ship-to Name and Address
711 07804812 Leyden’s RCA (Packager), River Grove, IL

714 07140807 Express Packaging, West Chicago, IL (Mexico via Express)
714 07140714 Express Packaging, West Chicago, IL
719 07190719 Navistar Defense, Springfield, OH
721 07210807 Newstream Enterprises, Joliet, IL (Mexico via Newstream)
721 07210721 Newstream Enterprises, Joliet, IL
748 07480748 HLM (Packager), Dearborn, MI
770 07700770 York PDC, Manchester, PA
775 07750775 Las Vegas PDC, Las Vegas, NV
776 07760776 Atlanta PDC, Fairburn, GA
777 07770777 Dallas PDC, Dallas, TX
779 07790779 Portland PDC, Fairview, OR
781 07810781 Midwest PDC, Joliet, IL
749 07490749 National PDC, Joliet, IL
970 09700970 Eastern Canada PDC, Hannon, Ontario, Canada
981 09810981 Edmonton Alberta PDC, Acheson, Alberta, Canada
983 09709984 Canadian Central Core, Brantford, Ontario, Canada
N/A 08070807 International Parts Dist. S.A. de C.V, Queretaro, MX
The Service Parts Operations Group utilizes the following EDI transactions sets:
1.1.1 810 – Invoice

1.1.3 830 – Monthly Planning Requirements (not Firm)
1.1.4 850 – Original Purchase Order (Firm)
1.1.5 860 – Purchase Order Revision (Firm)
1.1.6 856 – Ship Notice/Manifest (Advanced Shipping Notice)
1.1.8 820 – Remittance Advice
71
EDI Process Flow
(Element 2.0)
72
EDI Process Flow
2.1 – Please refer to www.navistarsupplier.com for EDI Implementations Guides and Business
Process Guides located under the EDI tab.
2.1.1 Process Flow
 830 Monthly Planning Requirements is transmitted once a month depicting a 12

month forecast for Service Parts on Contract. This is NOT a shipping authorization
and must only be used for planning.
 850 Original Purchase Orders are sent every day throughout the day to convey firm
orders with specific ship date and destination.
 860 Purchase Order Revisions are sent every day throughout the day to convey firm
order revisions with specific ship date and destination.
 820 Remittance Advice is transmitted by Navistar to Supplier advising that payment
has been made and will refer to the total check amount, check number and invoice
number as submitted by Supplier. No other details will be provided
 997 Functional Acknowledgement must be transmitted from supplier within 24 hours
of document receipt
 Supplier ships material to PDC or Packager as specified on the 850 / 860. A full list
of ship to codes is available at
http://www.navistarsupplier.com/EDI/EDI_General.aspx
 856 Advance Ship Notice (ASN) must be transmitted by Supplier to the PDC or
Packager at time of shipment. ASN must be accurate and complete. Please
refer to http://www.navistarsupplier.com/EDI/EDI_Implementation_Guides.aspx for
a complete list of 856 requirements. The ASN along with a quick receive label
attached to the packing list will be used to facilitate receipt into the PDC or Packager,
but is not used to generate payment.
 810 Invoice must be transmitted by Supplier to Navistar Accounting Center after
material is shipped. Invoice must be accurate and complete to facilitate payment.
 997 Functional Acknowledgement is transmitted by Navistar confirming electronic
receipt of the EDI 856 & 810 within 15 minutes of receiving the transaction.
 824 Application Advice is transmitted by Navistar to Supplier advising of data
integrity errors related to the 856. Please refer to Service Parts section of Appendix
of 824 Error Codes at http://www.navistarsupplier.com/EDI/EDI_General.aspx
Note: All transactions listed here are communicated with Navistar GSID 122092406
with the exception of the 820 which is communicated with Navistar GSID 806203014.
The ASN is not used to generate payment. The Invoice and presence of physical
receipts enables payment to be made.
73
Transportation
(Element 3.0)
74
TRANSPORTATION
to your Parts Inventory Planner.
A multi-stop route is a structured method of delivery; based on geographic regions, established

assigned schedule. XPO Logistics supports the Parts Group multi-stop routes, please utilize the
following links for routing information:
o Navistar Acheson, AB [email protected]

o Navistar Brantford, ON [email protected]
o Navistar Crest Hill, IL [email protected]
o Navistar Dallas, TX [email protected]
o Navistar Dearborn, MI [email protected]
o Navistar Fairburn, GA [email protected]
o Navistar Fairview, OR [email protected]
o Navistar Joliet, IL [email protected]
o Navistar Laredo, TX [email protected]
o Navistar Las Vegas, NV [email protected]
o Navistar Manchester, PA [email protected]
o Navistar Perrysburg, OH [email protected]
o Navistar River Grove, IL [email protected]
o Navistar Warren, MI [email protected]
o Navistar West Chicago, IL [email protected]
o International Parts Distribution S.A. de C.V. (Queretaro)
[email protected]
3.1.1 Consolidation Points
In order to maximize transportation efficiencies, the Parts Group may utilize consolidation
points where feasible. Shipping to consolidation points is a process of delivery to one location,
consolidation and reshipment of goods to their ultimate destination. XPO Logistics supports the
shipments to the consolidation points. Please contact [email protected] for
routing instructions.
75
o An EDI 856 (ASN) must be transmitted for each PDC and Packager
shipment.
o One Packing list containing the Quick Receive label and One Bill of
Lading must be attached to the shipment for each PDC and Packager
shipment and will be used for receipt at each PDC and Packager.
o A manifest is created at the consolidation point and sent with the
shipment to each PDC
o Do not ship parcel shipments to the consolidation points, they must be
shipped directly to the PDC.
XPO Logistics routes all Service Parts material into all PDC’s and Packagers. These shipments will be
made in accordance with the instructions set forth in the “ LTL & PARCEL ROUTING INSTRUCTIONS”
(“Transportation Routing Matrix”) that can be found online at http://www.navistarsupplier.com under
the “Supplier Guidelines / Terms and Conditions” tab. You will need to enter your email address to
login, from there, you will be able to locate the Parts contact information for XPO Logistics to support
your shipping needs. When follow up contact is made by XPO Logistics, please follow the instructions
they have communicated to you and utilize the following email addresses for routing instructions:
 Navistar Acheson, AB [email protected]

 Navistar Brantford, ON [email protected]
 Navistar Crest Hill, IL [email protected]
 Navistar Dallas, TX [email protected]
 Navistar Dearborn, MI [email protected]
 Navistar Fairburn, GA [email protected]
 Navistar Fairview, OR [email protected]
 Navistar Joliet, IL [email protected]
 Navistar Laredo, TX [email protected]
 Navistar Las Vegas, NV [email protected]
 Navistar Manchester, PA [email protected]
 Navistar Perrysburg, OH [email protected]
 Navistar River Grove, IL [email protected]
 Navistar Warren, MI [email protected]
 Navistar West Chicago, IL [email protected]
 Int’l Parts Dist. S.A. de C.V. (Queretaro) [email protected]
76
TRANSPORTATION (cont.)
than 14 linear feet of a trailer.
3.2.2 Parcel

via UPS Ground, Collect billing. Please contact [email protected]
for the UPS account number for your shipping destination.
3.3 Expedited
An expedite is a shipment requiring special service, which may require delivery sooner than the
agreed standard. All associated costs for an expedite will be the responsibility of the party at-
fault. If an expedite becomes necessary, the supplier is required to communicate and receive
authorization from the Navistar Inventory Planner at time of shipment. The Navistar Inventory
Planner will issue an excessive premium freight charge number (EPFC) which must be
referenced on all shipping documents. A supplier caused expedite EPFC number will have an
SC designation and an NR will designate Navistar responsibility. XPO Logistics will route all
EPFC shipments.
NOTE: Failure to comply with these instructions will result in chargebacks through
material invoice reduction. A deviation from a specific routing may be authorized by
Navistar’s local operations personnel on an emergency shipment-by-shipment basis but
must be communicated by supplier to the respective Navistar Inventory Planner contact.
77
D13 Supplier Packing and
Shipping Standard
(Element 4.0)
78
D13 Supplier Packing and Shipping Standard - Packaging
4.1 Packaging
It is Navistar’s policy that any suppliers currently doing business with Navistar comply with the D-13
Supplier Packing and Shipping Standard. This standard can be viewed by visiting
http://www.navistarsupplier.com following the “Supplier Guidelines/Terms and Conditions tab.”
The D13 Packing and Shipping Standard outlines how suppliers must be shipping and packaging
to our distribution centers and packagers. All suppliers must comply with the requirements in
the D13 or they will be found noncompliant and debited.
 It’s the supplier’s responsibility to make sure their packaging method is rugged enough
to withstand the rigors of transportation; adequate banding and stretch-wrap must be
used on the shipment.
 It is the supplier’s responsibility to adhere to all North American, Federal, State, and
Provincial governmental retail packaging laws. This also means if you are shipping a
hazardous material you are responsible to make sure the product is labeled properly,
and if the product has an expiration date this must be displayed on the packaging.
 Another important part of service parts packaging is the rust inhibitor. Parts must have
protection from rust for a minimum of 1 year of unheated inside storage.
4.1.2 General Specifications
4.1.2.1 Service Packaging
 Service shipments should be packaged and labeled individually

 Packaging for service should be expendable packaging (corrugated boxes,
folding cartons, poly-bag, crates, etc.)

4.1.2.2 Pallets/Lumber
 Pallet heights should not exceed 45” and parts should not overhang on the
pallet.
 Any pallet, crate, or wood packaging material shipping into our packagers
and PDC’s must be ISPM-15 compliant.
 Pallets must be able to withstand multiple shipments.
79
D13 Supplier Packing and Shipping Standard - Packaging (cont.)
4.1.2.3 Labels
 Retail labels are required on the individual service package.

 Country of origin guidelines must be followed and parts labeled with the country of
origin.
 Shipping labels must be used to identify the total contents of each shipment. Please
use two shipping labels per pallet, 4”x6” dimensions
4.1.2 General Specifications
4.1.2.3 Labels (cont.)
 The pallet and over-pack labels should be 4”x6” and two are required per
pallet.
 Barcodes should be code 39 or code 128.
 Pallets containing more than one part number must have a mixed load
label.
 The quick receive label should be placed on the front of the packing list.
 All Labels must scan and be visible.
80
D13 Supplier Packing and Shipping Standard (Labeling)
4.2 Labeling
The Parts Group employs five different labels: a Quick Receive Label, a B-10 Trading Partner Label, a
Master Label, a Mixed Load Label, and a Retail Label.
Quick
Receive
Label:
The
purpose of
the Quick
Receive
Label is to
allow
mechanical
match of a
supplier’s
incoming
shipment to
the
information
on the
supplier’s
EDI 856
(ASN). The
ASN # on
this label
must match
exactly to
the ASN #
on the
EDI856. The
Quick
Receive
Label must
be affixed
to, or
incorporate
d into, the
packing list
that is
attached to
the
shipment
81
AIAG B-10
Trading
Partner
Label:
This label is
used to
identify the B10 Labels
contents of
an individual
container, of
a single part
number, for
a shipment.
Two identical
labels must
be affixed to
two adjacent
sides of each
container
shipped.
Master
Label:
A Master
Label is to be
used to
identify the
contents of a
multiple, Master
single pack Label
load of the
same part
number for a
shipment
(i.e. a skid of
containers
consisting of
one part
number).
Mixed
Load
Label:
A Mixed Load
Label is to be
used to
identify a
load of
multiple
single packs
of different
part numbers
for a
shipment
(i.e. a skid of
containers of
varying
part
numbers).
82
D13 Supplier Packing and Shipping Standard – Labeling (cont.)
4.2 Labeling (Cont.)
Retail Label: Branded Label Example:

Each part number must be
labeled and include quantity,
description of part, country
of origin, bar code, part
number, and date. Specific
branding may be specified for
a product line.
Labeling information can be found at http://www.navistarsupplier.com and following the

“Supplier Guidelines / Terms and Conditions/D-13 Supplier Packing and Shipping Standard” tabs.
83
4.3 Packing list
Documentation is very important for service shipments; please make sure you are following the
packing list guidelines.
 A pallet breakdown is required on the packing slip or a pallet manifest must be provided
(pallet manifest example can be found in the D13).
 2 copies of the packing list must be included with all shipments, one copy must be
attached to the bill of lading and the other copy must be attached to the shipment.
 Packing lists can also be inside the container but the exterior container must be marked
“PACKING LIST ENCLOSED” to show the location of the packing slip
 Packing lists must be securely fastened to the container load in an envelope that clearly
states “PACKING LIST”.
 A pallet breakdown is required on the packing slip. This information must include the
Navistar part number, PO number, quantity shipped, and container serial number. A
container serial number must be present for each high level container that will be moved
from the truck to the receiving floor. The container serial number must also be displayed
on the master ship label or mixed load label affixed to the container and must also be
provided in the ASN as the Bar Code Serial Number or Package id. A container can be
a pallet, skid, carton, basket, box, or a loose item. (Please see the attached packing list
example.)
NOTE: The Container Serial Number cannot be longer than 11 positions with the last 5
being unique.
 A Quick Receive label must uniquely identify the shipment with a shipment id number
and supplier code from the PO(s). The label must either be printed directly on or affixed
to the front of the packing list. The same shipment id and supplier code must also be
provided in the ASN in the BSN02 and N1*SU respectively.
 An ASN (Advance Ship Notice – 856 EDI Transaction) providing all shipment detail must
be submitted electronically and accurately within an hour of the shipment leaving your
facility.
4.3 Packing list (cont.)
 For Parcel shipments with multiple cartons shipping to the same PDC or Packager, we
expect:
 One ASN per shipment
 Each carton to contain one copy of the packing slip inside the box with a Quick
Receive label
 Cartons should be numbered 1 of 5, 2 of 5, 3 of 5, etc.
 Each carton should have a master ship label with a unique package ID number
in addition to the UPS label
84
D13 Supplier Packing and Shipping Standard (cont.)
(SUPPLIER’S LOGO)
Shipment ID: 107562

Service Parts Vendor Code: 4800360
Packing Slip: 7292588
Bill of Lading: 107562
Ship Date: 6/25/2014
Sold To: Navistar, Inc. Ship To: Navistar, Inc., York PDC
Caller Service#59009 105 Steamboat Blvd
V.C. 48003AX Manchester, PA 17345
Knoxville, TN 37950 U.S.A.
QUANTITY NAVISTAR UOM SUPPLIER DESCRIPTION WEIGHT CONTAINER NAVISTAR

ORDERED PART# PART# (EACH) SERIAL# P.O.#
100 418227C1 EA 6541891 FLANGE 15.52lbs 255780 300034341
2 2031765C3 EA 1004901 BUMPER 105lbs 255781 300342140
20 1698107C1 EA 1283621 SUPPORT .200lbs 255781 300418321
85
Hazardous Material & Parts
with Chemical Properties
(Element 5.0)
86
HAZARDOUS MATERIALS & PARTS WITH CHEMICAL PROPERTIES
5.1 All suppliers providing product to Navistar Parts, for which the manufacturer is required to
prepare and issue a Material Safety Data Sheet (MSDS), are required to provide Navistar Parts
with this MSDS / SDS at the time a Navistar part number is assigned and a supply agreement
(contract, blanket purchase order, etc.) are put into effect. Cross reference data for Navistar
and supplier part number and reference to specific MSDS/SDS must be provided for each part.
Effective June 1, 2015, please note that the MSDS/SDS document is being replaced in the USA
with the Global Harmonize System (GHS)-format Safety Data Sheet.
5.2 As Navistar, Inc. operates facilities across all of North America, ALL MSDS / SDS supplied
to Navistar Parts MUST be:
 Trilingual - English, Canada-French and Mexico-Spanish

 English and French MSDS / SDS MUST BE dated current with issuance to Navistar
Parts. Canada law dictates MSDS expires 3 years after the date of issuance
 After June 1, 2015, by USA federal law, ALL USA based suppliers MUST issue GHS-
format SDS; MSDS cannot be accepted by Navistar Parts after this date
 Canada and Mexico based suppliers may continue to issue MSDS which conform to
local laws and hazardous materials communication standards
5.2.1 Parts which MUST be accompanied by an MSDS/SDS include but are not limited to:
 Absorbents (e.g. spill-clean-up)

 Acids
 Adhesives, glues, epoxies, thread lockers, adhesive-backed tapes
 Aerosols
 Batteries of ALL types
 Brake friction including fan clutch, pads, shoes
 Caulk, caulk-like substances and all forms of RTV (room-temperature-vulcanizing)
gasket makers, sealants, etc.
 Cleaning products with chemical properties, e.g. cleaners, detergents, degreasers,
washes
 Clutch friction including disks and plates
 Coatings
 Coolants and coolant system additives
 Corrosives, e.g., battery electrolyte acid and wheel cleaners
 Desiccants, e.g. in brake air dryers
 Diesel exhaust fluid, additives and cleaners
 Fiberglass and fiberglass repair products
 Filters containing chemicals
 Fire extinguishers
 Flammable and combustible liquids
 Flammable solids, e.g., highway flares and fuses
 Fluids (all)
 Flushes (brake, coolant, fuel, transmission, etc.)
 Fuel additives and flushes
 Gases under pressure
 Gels
87
HAZARDOUS MATERIALS & PARTS WITH CHEMICAL
PROPERTIES
5.2.1 Parts which MUST be accompanied by an MSDS/SDS include but are not limited to:
 Gloves made of Latex or Nitrile which may trigger allergic reactions

 Greases
 KITS which contain any chemical requiring MSDS/SDS (should be accompanied with
supplier bill of materials)
 Liquids
 Lubricants
 Oxidizers, e.g. chemicals in coolant filters
 Paint, primer, thinners, reducers
 Pastes
 Polishes
 Poisons
 Refrigerants, system cleaners, flushes, lubricants
 Sealants
 Shock absorbers and struts, pressurized and/or containing hydraulic fluid
 Solvents and fluids containing penetrants and solvents
 Substances which may stimulate allergic reactions by skin contact, e.g., latex and
nitrile gloves, chemical-impregnated shop towels
 Towels which may leave particle or chemical residue
 Undercoating
 Waxes
 Wipes with chemical cleaner, coating, etc.
88
TRADE COMPLIANCE
(Element 6.0)
89
TRADE COMPLIANCE
6.1 Free Trade Agreement and Country of Origin Solicitation
Suppliers will provide to Navistar annually, by the specified due date, an accurate and
complete North American Free Trade Agreement (“NAFTA”) Certificate of Origin for those
products by part number that qualify for NAFTA and an accurate and complete Country of
Origin Affidavit for all products by part number. The NAFTA Certificate of Origin must be
completed in accordance with regulations published by the U.S. Department of the
Treasury in 19 C.F.R. Sec. 181.11 et seq. and any amendments thereto, and in accordance
with Navistar’s NAFTA Policy included in the Customs Invoicing Instructions (PR-38
Document) found at
In addition to the NAFTA Certificates of Origin or Country of Origin Affidavits mentioned

above, Suppliers will provide to Navistar any requested supplemental part content and
functionality information in relation to import or export operations, which may or may not be
directly related to NAFTA. This also includes corresponding certificates of origin for all
other applicable free trade agreements as requested.
Valid NAFTA and Country of Origin documentation must be provided within the following
timeframes:
Type of Solicitation Request Time Frame from

Request Date
Emergency (part crossed the border at significant duty cost) 48 hours
Monthly (all other parts that crossed border and new parts) 30 days
Annual (all active parts) 60-90 days
Navistar does recognize that occasionally there may be extenuating circumstances that
require additional time to provide NAFTA documentation. In consideration of these
circumstances, Navistar has established the following performance metrics for providing
valid NAFTA documentation:
Type of Solicitation Request Time Frame from Request Date
Performance Metric %
Emergency (part crossed the border at significant duty cost) 48 hours 100 %
within 48 hours
Monthly (all other parts that crossed border and new parts) 30 days 100 %
within 30 days
Annual (all active parts) 60 days 90 %
within 60 days
90 days 100 %
within 90 days
6.2 Customs Invoices and Documentation Requirements
In order to insure the smooth passage of material across international borders, suppliers will comply with
all of the requirements and instructions contained within the Customs Invoicing Instructions (PR-38
Document) found at
90
Problem Reporting &
Resolution
(Element 7.0)
91
PROBLEM REPORTING & RESOLUTION SYSTEM (PRR)
7.1 Policy
The goal of the Supplier Charge-Back Policy is to encourage the Parts suppliers to consistently provide
accurate, precise, timely, and cost effective deliveries of parts to all PDC’s and packager locations by
holding them financially accountable for the consequences of their non-compliance. This policy will set
uniform guidelines for the Parts Group to recover, from the supplier, the costs associated with the
supplier’s non-compliance.
Non-compliance is defined as any event that constitutes failure to maintain the minimum performance
requirement under the Parts Group Supplier Guidelines. The Supply Chain Group will be responsible for
monitoring suppliers’ adherence to these standards and will initiate the proper actions necessary to
charge back suppliers for their non-compliance.
7.2 Supplier Performance & Quality
All purchase orders and contract documents indicate that the D-13 Standard is part of those
agreements. Compliance to the D-13 is expected as a requirement for doing business with
Navistar and non-compliance will result in a chargeback through invoice deduction.
Any failure to comply with the requirements described in the Parts Group Supplier Guidelines
will result in a charge-back. The charge-back will be a $500 administrative charge per
occurrence and any other actual cost incurred as a result of the supplier‘s non-conformance to
the requirements of the Parts Group Supplier Guidelines. (Refer to Section 7.2 on D-13
standard (Supplier Chargeback policy).
PRR debit memo invoices will be mailed to the current address on file the first week of the
following month after the occurrence and debit will be recovered through a deduction to the
supplier’s account. The debit memo invoice number will start with a prefix of “QA” (Quality
Assurance).
Following is the list of typical non-compliance issues related to Parts supplier requirements:
7.2.1 If EDI approved supplier
 ASN issues (D-13 6.4.1)

 Quick receive label (D-13 section 4.0)
7.2.2 Packing slip (D-13 section 6.4)
7.2.3 Packaging Issue:
 Load height > 45” (D-13 section 3.5.5 (4))

 Wrong part number (D-13 section 4.0)
 Pallet quality (D-13 section 3.5.5 (6))
92
PROBLEM REPORTING & RESOLUTION SYSTEM (PRR) (cont.)
7.3 Quality Issues
Quality issues pertaining to non-compliance are reported immediately upon discovery. The
issues are reported by the PDCs, 3PL packagers, Warranty, Product Group, Purchasing,
Inventory, Dealers as well as Suppliers.
Following is the list of typical non-compliance issues reported to suppliers regarding

quality issues:
 Mislabeling (LH vs. RH)

 Rust
 Field Issues: leakage, incompatible parts (wrong form or fit)
 Incorrect part (part received different than what was ordered)
 Incomplete part (missing components)
 Defective (damaged upon receipt due to improper packaging)
7.3.1 Notification
Suppliers are notified immediately via email or within the week of occurrence and are
expected to respond upon receipt of the email. If no response is received after a week,
the supplier is notified again and typically also contacted via phone.
7.3.2 Disposition
If parts do not meet our requirements, the Quality Analyst will contact the supplier for
scrap disposition or an RMA. Please note that Navistar reserves the right to scrap parts
if no response is received after 30 days. Parts will then be expensed to the supplier and
a non-compliant debit may be imposed if the parts are deemed to be incorrect based on
the D13 standards. The Quality Analyst can also authorize disposition based on the
circumstance. The decision is based on: parts too old (sitting on shelf over a year), low
dollar amount, or not being able to determine fault (Navistar or supplier issue).
93
Inventory Planning
(Element 8.0)
94
INVENTORY PLANNING
8.1 The planning schedule will include:
8.1.1 How to read our EDI 830 Forecasts
8.1.2 How to read our Purchase Orders
8.1.3 Understanding our P.O. Cancellation Policy
Once complete, this information will be communicated via the http://www.navistarsupplier.com

website where an updated supplier guideline will be posted.
95
Supplier Chargeback
Policy
(Element 9.0)
96
SUPPLIER CHARGEBACK POLICY (Element 9.0)
9.1 The goal of these Supplier Guidelines is to provide clear direction for our suppliers guiding
them to consistently provide accurate, precise, timely and cost effective deliveries of materials
to our manufacturing facilities. Failure to abide by these guidelines causes significant extra
costs to Navistar, both hard and soft.
Navistar reserves the right to debit a supplier based on the following criteria for failure to meet
our delivery requirements:
Associated Costs

processing fee
Linear Feet Utilization: Invoice Amount + $75 processing fee

processing fee
Global Expedites: total freight cost + $75 processing fee
No Packing slip: $500 per occurrence
Pallet Dimension Problems: $500 per occurrence
Missing Data (Quick Rec. Label/PO on ASN): $500 per occurrence
Bad PO, Part #, Wrong Part: $500 per occurrence
Wrong Pallet ID: $500 per occurrence
Part Missing/Incorrect Quantity Error: $500 per occurrence
Visual Problems/Possible Damage: $500 per occurrence
Rusting Problems: $500 per occurrence
No Retail bar Code: $500 per occurrence
97
Contact Information
(Element 10.0)
98
CONTACT INFORMATION (Element 10.0)
9.1 Supply Chain
 EDI
o Andrew Sorensen: EDI Manager, ([email protected])
o Priscilla Brady: EDI Staff Specialist, ([email protected])
 Transportation - Routing
o International Parts Dist. S.A. de C.V. (Queretaro) [email protected]
 Transportation – Expedites
o International Parts Dist. S.A. de C.V. (Queretaro) [email protected]
99
CONTACT INFORMATION (Element 10.0)
 D13 Packing and Shipping Standard

o Packaging & Labeling:
 Charles Lester: Supply Chain Manager, ([email protected])
o Hazardous Material
 Christina Johnson: Health/Safety Consultant,
([email protected])
 Trade Compliance
o Carol Demuth: Foreign Trade Compliance Manager, [email protected]
o Kevin Brown: Supervisor, Navistar Import Operations, [email protected]
o Claudia Trevino (Documentation requirements) – [email protected]
o Laurie Mysliwiec (NAFTA) – [email protected]
 Problem Reporting & Resolution(PRR) & Quality

o 331-332-7000 [email protected]
100
Appendix A:
Definitions of Chargebacks
101
Chargeback Definition
Packaging errors packaged incorrectly/doesn’t conform to D13
Supplier Caused- Accessorial Charges Detention/ Waiting, TONU, Layover
Transportation Non-Compliance Carrier Selection/ Mode/ Shipping Frequency
Linear Feet linear exceeds LTL requirements
RMA Return Material Authorization. Shipper over ships

or sends wrong part.
Global Expedites supplier caused expedites
EDI Non-Capable Supplier agrees to comply with all EDI

requirements of Navistar as posted on
www.navistarsupplier.com. These basic
requirements include release and receiving suite
documents. These conditions are subject to
change, and Navistar will notify Supplier of new
requirements. If Supplier is unable to meet all the
implementation requirements, then the Contract
is subject to either termination by Navistar, or a
daily assessment of fifty dollars (US$50), at
Navistar’s sole option, until the requirements
have been met. Supplier agrees that any EDI will
be deemed sufficient for enforceability under any
state’s statute of frauds or similar law.
ASN errors/not received Supplier compliance with Navistar’s ASN (EDI
856, Advance Shipment Notification)
requirements are mandatory. Valid ASN’s must
be available for use by Navistar receiving
personnel when Supplier shipments arrive at
Navistar production plants and service parts
distribution centers. Failure to comply with
Navistar’s ASN requirements will result in a
US$500 penalty per occurrence.
No Packing slip Packing slip missing
Pallet dimension problems Pallet dimensions outside of D13
Missing Data Quick receive label (ASN) PO missing on packing

slip
Bad PO, Part #, wrong part PO doesn’t match, part # doesn’t match
102
Supplier Performance Supplier must adhere to 7 key performance
metrics: Order Shortages, Website Logins,
Min/Max levels, Packaging, Labeling, ASN
Compliance, and Transportation which is outlined
in the Engine Group Supplier Guidelines located
on www.navistarsupplier.com. Supplier must
maintain a 3 month rolling average of 85% per
plant. Failure to comply with these requirements
will result in a Supplier Performance debit of
$2500 per plant for each month they are non-
compliant.
wrong ID wrong pallet ID
part missing incorrect qty (could include overs and shorts)
visual problems possible damage
Rusting problems rust visible
Code No retail bar code
Expedites / Premium Freight supplier caused expedites
Trailer Seal Missing Seal Missing on trailer at the plants
Underutilized FTL is less than 20 ft. full
Freight Class missing on BOL Inaccurate info on BOL
Escobedo Line 1/Line 2/Cab and Paint If line is shut down
Springfield Plant and paint shop, Tulsa Plant, If line is shut down
CAS Only,
Pull at any plant If line is shut down
Rework/Repair If anything on the truck needs repairs
Pyxis generated It is Pyxis is a system to track engineering,

product, and manufacturing issues. If there is a
problem that will require engineering, a Pyxis
concern is logged into the system and assigned to
engineering. Then an engineer investigates it,
comes up with a solution, and if necessary does
an engineering release to resolve the issue.
103
No roll don't actually build the truck until they actually
receive the part(s) needed
POA issue impacts to production
Material out of sequence Parts arrive out of sequence order
Material over shipments 1st offense If supplier ships more than request
Material over shipments 2nd + offense If supplier ships more than request
104

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Navistar

Revision Date: August 15th, 2016

Prepared By: Andrew R. Sorensen, CSCP; Supply Chain Manager

Section I: Truck Supplier Guidelines

TRANSACTIONS & TRADING PARTNER ID’S

2.0 EDI PROCESS FLOW

SHIPMENTS NOT ON MULTI-STOP ROUTES

4.0 D13 PACKING AND SHIPPING STANDARD

5.0 TRADE COMPLIANCE

6.0 MASTER SCHEDULING – UNDER CONSTRUCTION

7.0 SUPPLIER PERFORMANCE – UNDER CONSTRUCTION

8.0 SUPPLIER CHARGEBACK

9.0 CONTACT INFORMATION

Truck Supply Chain

• Electronic Data/Trading Partner Set up

• EDI Process Flow

• D13 Supplier Packing and Shipping Standard

Navistar Corporate ISA ID 01:781 495 650 VAN: GXS

Springfield Assembly GSid 049 645 120 Plant Code 002

Conway Fabrication GSid 021 344 700 Plant Code 009

Cab Assembly GSid 147 809 631 Plant Code 015

Knoxville Accounting GSid 806 203 014 Plant Code 440

The Truck Group utilizes the following EDI transactions sets:

1.1.1 820 – Remittance Advice – Select Suppliers

2.1 – Please refer to http://www.navistarsupplier.com for EDI Implementations Guides and

2.1.1 Process Flow

 Electronic Receipts Settlement (ERS) is a business process between trading

3.1 Multi-Stop Routes (aka milk runs)

A multi-stop route is a structured method of delivery; based on geographic regions, established

 Navistar Mexico Escobedo Assembly Plant (Line 1 and Line 2) –

3.2.1 Less-than-load (LTL)

According to the “LTL & PARCEL ROUTING INSTRUCTIONS” (“Transportation Routing

NOTE: Failure to comply with these instructions will result in chargebacks

Navistar specification D-13, “Supplier Packing and Shipping Standard” provides

4.1.1 Packaging Specifications

The D-13 Standard may be found at http://www.navistarsupplier.com following the

Racks, containers, these may be steel racks, bulk containers with/without

4.1.1.2 Supplier Owned Returnable racks & containers

Racks and containers designed, built, tested and provided by

4.1.1.4 Expendable Packaging

Expendable (disposable) packaging should be minimized at all costs. If

4.1.2 CHEP Returnable Container Program

As part of Navistar Inc.’s drive to zero expendable packaging, we have

If already contacted by Navistar, agreed upon returnable containers and standard

4.1.3 PFEP – Plan for Every Part

It is a Navistar requirement that every supplier submit a Packaging Specification

4.1.4 Supplier’s Responsibility

4.1.5.1 General Specifications

All containers must conform to applicable AIAG standards, including a 48”

4.1.5.2 General Specifications (cont.)

4.1.6 Return Shipment of Empty Containers

4.1.7 Damage/Repair Disposition

ABR Part Label:

Labeling information can be found at http://www.navistarsupplier.com under the

All labels must be scan-able and visible

5.1 Free Trade Agreement and Country of Origin Solicitation

In addition to the NAFTA Certificates of Origin or Country of Origin Affidavits mentioned

Type of Solicitation Request Time Frame from

Annual (all active parts) 60 days 90 % within 60 days

90 days 100 % within 90 days