Common use of Supplier Audits Clause in Contracts

Supplier Audits. The Supplier shall allow the Buyer, the Buyer's customers or third parties named by customers and the competent authorities to carry out an audit of its quality management system and the processes in the Supplier's production facilities by agreement and during normal working hours at the Supplier. For this purpose, the auditors shall be granted free access to the areas of the Supplier that are involved in the execution of the order for the Buyer. Reasonable restrictions of the Supplier to protect its trade secrets are accepted. During these quality audits, the Supplier shall make available all necessary documents and information from all relevant levels of the Supplier's supply chain and provide the information requested by the Buyer. Process audits will be carried out in accordance with VDA 6.3 guidelines, if necessary extended by the industry- or customer-specific requirements. The results as well as the agreed improvement measures are documented by the Buyer. The Supplier is responsible for the implementation of the audit measures and the regular information on the processing status to the Buyer. . Reasons for a supplier audit can be the following: • Supplier approval procedure • new contract award • Start of production (acceptance of series production) • Changes in the manufacturing process or in the test procedure • Changes in facilities or production locations/ relocation • scheduled supplier monitoring • Repeat audit with negative audit result (C rating) • Ongoing escalation proceedings at the customer's premises (see chapter 13)

Supplier Audits. The Supplier shall allow grants the Buyer, customers of the Buyer's customers or third parties named by customers and Buyer as well as responsible authorities, the competent authorities to carry out an audit right of its examining their quality management system and the processes in the Supplier's at their production facilities sites by agreement and perform- ing audits during normal their working hours at the Supplierhours. For this purpose, the auditors shall be are granted free access to the areas those sites of the Supplier that are involved in planning, development and manufacturing of products to be supplied to the execution Buyer. The Buyer shall accept reasonable restrictions of the this right in order for the Buyer. Reasonable restrictions of the Supplier to protect its trade secrets are acceptedsafeguard their corporate secrets. During these At such quality audits, the Supplier shall make available will provide all necessary documents and information from all relevant levels of the Supplier's supply chain and provide according the information requested by the Buyer. Process The process audits will be carried out performed in accordance with the VDA 6.3 guidelinesguideline, if necessary process audits are extended by the industry- or to include customer-specific requirementsrequirements if necessary. The results as well as result and the agreed improvement im- provement measures are will be documented by the Buyer. The Supplier is responsible for the implementation of implement- ing the audit measures and the providing regular information on the processing status to the Buyer. . Reasons for a supplier audit can audits may be the following: •  Supplier approval procedure •  Awarding of new contract award • Start  Launch of production (acceptance approval of series serial production) •  Changes in the to manufacturing process or in the test procedure •  Changes in facilities equipment or production locations/ location/relocation • scheduled  Regular supplier monitoring •  Repeat audit with caused by negative audit result (C C-rating) •  Ongoing escalation proceedings at procedure on the customer's premises part of the Buyer (see chapter s. chap. 13)

Supplier Audits. The Supplier shall allow grants the Buyer, customers of the Buyer's customers or third parties named by customers and Buyer as well as responsible authorities, the competent authorities to carry out an audit right of its examining their quality management system and the processes in the Supplier's at their production facilities sites by agreement and perform- ing audits during normal their working hours at the Supplierhours. For this purpose, the auditors shall be are granted free access to the areas those sites of the Supplier that are involved in planning, development and manufacturing of products to be supplied to the execution Buyer. The Buyer shall accept reasonable restrictions of the this right in order for the Buyer. Reasonable restrictions of the Supplier to protect its trade secrets are acceptedsafeguard their corporate secrets. During these At such quality audits, the Supplier shall make available will provide all necessary documents and information from all relevant levels of the Supplier's supply chain and provide according the information requested by the Buyer. Process The process audits will be carried out performed in accordance with the VDA 6.3 guidelinesguideline, if necessary process audits are extended by the industry- or to include customer-specific requirementsrequirements if necessary. The results as well as result and the agreed improvement im- provement measures are will be documented by the Buyer. The Supplier is responsible for the implementation of implement- ing the audit measures and the providing regular information on the processing status to the Buyer. . Reasons for a supplier audit can audits may be the following: • Supplier approval procedure • Awarding of new contract award • Start Launch of production (acceptance approval of series serial production) • Changes in the to manufacturing process or in the test procedure • Changes in facilities equipment or production locations/ location/relocation • scheduled Regular supplier monitoring • Repeat audit with caused by negative audit result (C C-rating) • Ongoing escalation proceedings at procedure on the customer's premises part of the Buyer (see chapter s. chap. 13)

Supplier Audits. The Supplier shall allow grants the Buyer, customers of the Buyer's customers or third parties named by customers and Buyer as well as responsible authorities, the competent authorities to carry out an audit right of its examining their quality management system and the processes in the Supplier's at their production facilities sites by agreement and performing audits during normal their working hours at the Supplierhours. For this purpose, the auditors shall be are granted free access to the areas those sites of the Supplier that are involved in the execution planning, development and manufacturing of the metal formats to be supplied to the Buyer. The Buyer reserves the right, depending on current travel restrictions (e.g. pandemic situation), to conduct the supplier audits virtually from a distance (remote). The Buyer shall accept reasonable restrictions of this right in order for the Buyer. Reasonable restrictions of the Supplier to protect its trade secrets are acceptedsafeguard their corporate secrets. During these quality audits, the Supplier shall make available will provide all necessary documents and information from all relevant levels of the Supplier's supply chain and provide according the information requested by the Buyer. Process audits will be carried out in accordance with VDA 6.3 guidelines, if necessary extended by the industry- or customer-specific requirements. The results as well as result and the agreed improvement measures are will be documented by in the Buyeraudit report through the buyer. The Supplier is responsible for the implementation of implementing the audit measures and the providing regular information on the processing status to the Buyer. . Reasons for a supplier audit can audits may be the following: •  Supplier approval procedure • procedure/ Potential analysis  Awarding new contract award • Start contracts (new products)  Supplier development  Launch of production (acceptance approval of series serial production) •  Changes in the to manufacturing process or in the test procedure •  Changes in facilities equipment or production locations/ location/relocation • scheduled  Regular supplier monitoring • Repeat surveillance  Ongoing escalation procedure on the part of the Buyer / Xxxxx’s customer (s. Chap. 13)  Follow-up audit with caused by negative audit result (C C-rating) • Ongoing escalation proceedings at the customer's premises (see chapter 13)

Supplier Audits. The Supplier shall allow permit the Buyer, the Buyer's customers or third parties named by ’s customers and the competent authorities to carry out an audit of inspect its quality management system and the processes in the Supplier's its production facilities by agreement and means of an audit after consultation during normal the regular working hours at time of the Supplier. For this purpose, the auditors shall be granted have free access to the Supplier's areas of the Supplier that are involved in the execution execu- tion of the order for the Buyer. Reasonable The Buyer reserves the right, depending on current travel restrictions of (e.g. pandemic situation), to conduct the supplier audits virtually from a distance (remote). Appro- priate restrictions by the Supplier to protect its trade secrets are will be accepted. During these quality audits, the Supplier shall make available provide all necessary documents and information from all relevant levels of the Supplier's supply chain and provide the information requested by the Buyer. Process audits will be carried out in accordance with VDA 6.3 guidelines, if necessary extended by the industry- or customer-specific requirements. The results result as well as the agreed improvement measures are documented by the Buyer. The Supplier is responsible for the implementation of the audit measures and the regular information on the processing status to the Buyer. . Reasons for a supplier an audit at the Supplier can be include the following: •  Supplier approval procedure • procedure/ Potential analysis  Supplier development  New procurement (new contract award • Start part- no. for processing)  Launch of production (acceptance approval of series serial production) •  Changes in the manufacturing process or  Changes in the test procedure • inspection process  Changes in facilities equipment or production locations/ location/ relocation • scheduled  Regular supplier monitoring • Repeat  Recurrence audit with caused by negative audit result (C C-rating) •  Ongoing escalation proceedings at procedure on the customer's premises part of the Buyer (see s. chapter 13)