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KEP 7 logistics Requirements Issue 11, Oct 2015 Page 1 of 10 Key Elements Procedure 7 (KEP 7), logistics Requirements Contents FOREWORD .. 2 KEY ELEMENTS .. 2 LONG DISTANCE SUPPLIERS (>72 hours normal transport lead time) .. 4 DELIVERY MODES .. 5 INCOTERMS .. 6 PACKAGING .. 7 AFTERMARKET .. 9 KEP 7 logistics Requirements Issue 11, Oct 2015 Page 2 of 10 FOREWORD 1. This logistics policy applies to all Suppliers delivering Parts to Volvo and it defines the inbound logistics responsibilities between the supplier and Volvo. This policy is a Volvo Procedure according to Volvo s General Purchasing Conditions. KEY ELEMENTS 2. 100% Compliance with Supply Instructions VOLVO requires on time deliveries of the right product, with the correct quantity, to the right place according to the agreed-upon delivery terms (or special supply instructions) 3.

KEP 7 – Logistics Requirements Issue 11, Oct 2015 Page 3 of 10 6. Communication 6.1. If SUPPLIER is not able to fulfill the VOLVO delivery demand, SUPPLIER is …

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