Logistic Req BMW
Logistic Req BMW
Logistic Req BMW
Firma
Bayerische
Motoren Werke
Aktiengesellschaft
Postanschrift
BMW AG
80788 München
Hausanschrift
Petuelring 130
Hausanschrift
Forschungs- und
Innovationszentrum (FIZ)
Knorrstraße 147
Telefon
Zentrale
+49 89 382-0
Fax
+49 89 382-70-25858
Internet
www.bmwgroup.com
Bankkonto
Deutsche Bank
IBAN DE05 7007 0010
0152 6946 00
BIC DEUTDEMMXXX
Vorsitzender
des Aufsichtsrats
Norbert Reithofer
Vorstand
Harald Krüger,
Vorsitzender
Milagros Caiña Carreiro-
Andree
Markus Duesmann
Klaus Fröhlich
Pieter Nota
Nicolas Peter
Peter Schwarzenbauer
Oliver Zipse
Sitz und
Registergericht
München HRB 42243
Index
Preamble .......................................................................................................................................................................... 4
1. General requirements ......................................................................................................................................... 5
1.1 Organisation ................................................................................................................................................. 5
1.2 Change information ................................................................................................................................... 5
1.2.1 Shifting of production sites ............................................................................................................ 5
1.2.2 Changes in the IT system ............................................................................................................... 5
1.2.3 Changes in the organisation .......................................................................................................... 5
1.3 Cross-company cooperation .................................................................................................................. 6
1.4 Communication ........................................................................................................................................... 6
2. Information process / EDI .................................................................................................................................. 6
2.1 In general ....................................................................................................................................................... 6
2.2 System continuity ....................................................................................................................................... 7
2.3 GIS (Global Information Service) ........................................................................................................... 7
3. Sub-supplier management............................................................................................................................... 7
4. Production process ............................................................................................................................................. 8
4.1 Production planning and production control ..................................................................................... 8
4.2 First-In-First-Out (FIFO) ........................................................................................................................... 8
4.3 Production and delivery capacity .......................................................................................................... 8
4.4 Test and development process, launch phase and run-out of the series ............................... 9
5. Supply process ..................................................................................................................................................... 9
5.1 Containers / packaging / empties......................................................................................................... 9
5.1.1 Boundary conditions / Packaging manual ................................................................................. 9
5.1.2 Packaging definition / Documentation .................................................................................... 10
5.1.3 Cost allocation ................................................................................................................................. 10
5.1.4 Delivery of samples for series production .............................................................................. 10
5.1.5 Deliveries to the FIZ supply center ........................................................................................... 10
5.1.6 Processing empties / Container account reconciliation .................................................... 10
5.1.7 Non-compliant and supplier-specific packaging ................................................................. 11
5.1.8 Disposable packaging ................................................................................................................... 11
5.1.9 Non-stackable containers and packaging .............................................................................. 11
5.1.10 Shortage of containers ................................................................................................................. 11
5.1.11 Scrapping / Misuse of containers.............................................................................................. 12
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5.2 Dispatch ...................................................................................................................................................... 12
5.2.1 Notification / Preparation.............................................................................................................. 12
5.2.2 Calculating run-times / Exceptions to run-time recknoning / Dealing with
public holidays ................................................................................................................................. 12
5.2.3 Time frame / Throughput time for the supplier..................................................................... 13
5.2.4 ASN transmission ........................................................................................................................... 13
5.2.5 Use of express parcel courier services .................................................................................... 14
5.3 Delivery reliability...................................................................................................................................... 15
5.4 Wrong delivery .......................................................................................................................................... 16
5.5 24-hour emergency supply .................................................................................................................. 16
5.6 Overseas transport (air/sea freight) for overseas suppliers ........................................................ 16
5.6.1 Notification (pre-notification) ...................................................................................................... 16
5.6.2 Collection / notification time frame ........................................................................................... 17
5.6.3 Logistics service provider documents..................................................................................... 17
5.7 Dynamic Lorry Steering System (DLSS) ......................................................................................... 18
6. Specific requirements ..................................................................................................................................... 18
6.1 Controlling the integration levels ........................................................................................................ 18
6.2 Costumer-oriented sales and production process - KOVP ...................................................... 18
6.3 Supply modes ........................................................................................................................................... 19
6.3.1 Just-In-Sequence (JIS) ................................................................................................................ 19
6.3.2 Just-In-Time (JIT) ........................................................................................................................... 19
6.3.3 Warehouse (LA) / direct assembly (DIMO)............................................................................. 19
7. Legal basis and helpful links ......................................................................................................................... 20
8. Abbreviation index ............................................................................................................................................ 21
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Preamble
Our daily challenge is to satisfy our customers’ high expectations and needs. For BMW Logistics
this means that every customer around the world receives his or her individual vehicle at the desired
date. Thus it is essential that the logistic processes work smoothly at all levels of the supply chain.
The logistics requirements for suppliers regulate all questions concerning cooperation in the
product development process, in the series production and in the service parts field. Moreover, they
are the basis for the creation of transparency in the logistic processes between BMW and its
suppliers. In order to enhance process quality, BMW analyses the compliance with the
requirements on a regular basis. If there are deviations, adequate measures will be launched in
cooperation with the supplier.
The logistic requirements apply to all BMW plants (Dingolfing, Munich, Regensburg, Leipzig, Berlin,
Spartanburg, Rosslyn, Oxford, Landshut, Hams Hall, Steyr, Goodwood, Swindon and
San Luis Potosi), to area “Sales of Parts and Accessories”, the test and development parts logistics
as well as to the supply of production network 1 (supply of overseas plants) and the production
network 2 (CKD plants) via the logistics service providers.
In the following, the aforementioned BMW Group locations will be referred to as BMW Group,
regardless of the specific location(s).
For the China plants the logistic requirements of BMW AG apply until the version with the country-
specific contents is available.
Due to changing framework conditions, it is necessary to adapt the logistic requirements from time
to time. The supplier is obliged to keep his version updated.
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1. General requirements
1.1 Organisation
The organisation of logistics in the development process ItO (Idea to Offer) and in the production
process OtD (Order to Delivery) shall be substantiated towards BMW Group in a way that it is clearly
understandable.
Persons permanently responsible for supply logistics within ItO and OtD and their respective
representatives in case of absence shall be communicated to BMW Group. These contact persons
must be able to make decisions in a competent and reliable way and have to be available at any
point during BMW production times.
Please note that there are different requirements in the different areas (testing, series, sales and
overseas production). Make sure what your area is before starting to plan.
Should the origin of test and development parts, pre-series parts, series parts, spare parts or of
parts for international production differ from the declaration of origin, the above-mentioned
departments are to be informed. In addition, a corresponding declaration of origin has to be sent to
the respective BMW department. In this case application OPAL (proprietary BMW tool) shall be
used (refer to useful links in chapter 7). Access is to be requested via the BMW Group Partner
Portal.
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1.3 Cross-company cooperation
The supplier is responsible for ensuring all logistic concerns regarding the management of
purchased parts between him and BMW Group in ItO, OtD until “end of lifetime” (EOL).
Adequate resources must be available for all cooperation activities between BMW Group and the
supplier. Moreover, the supplier’s readiness regarding innovative activities with view to process
optimisation is of great importance in connection with cross-company cooperation.
Information pertinent to ItO is to be obtained from the Global Information System (GIS).
1.4 Communication
The supplier has to inform BMW Group immediately about any potential jeopardy in terms of the
customer-supplier relation.
The supplier has to answer competently all questions and requests posed by BMW Group,
immediately or within the agreed period.
In case of JIT and JIS supply the EDI guidelines for JIS and JIT suppliers must be adhered to.
These can be found in the BMW Group Partner Portal under “Logistics Processes - Exchange of
Logistical Data”.
The supplier has to take adequate provisions in connection with maintenance to avoid any
disruptions in the electronic data transfer. Furthermore, suitable emergency strategies have to be
developed.
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2.2 System continuity
The call-off information received by the supplier is entered in its IT systems without further manual
adaptation. It is absolutely necessary that there is continuity from data receipt to parts dispatch.
Above all, this means fully automated input in the respective supplier production planning system
(PPS), automated break down into the bill of materials and an automatic generation and immediate
forwarding of orders or call-offs with same call-off horizon to sub-suppliers.
The supplier has to guarantee that the change status can be traced during all process steps.
3. Sub-supplier management
At the latest 3 months after the 1st tier supplier has been nominated by BMW Group the 1st tier
must have been nominated the suppliers of sub components. Market suppliers for sub
components have to be assigned at the latest 18 MvS (months before series) by the supplier.
Within the process „Maturity Level Assurance (MLA)“ the supplier has to ensure transparency
concerning his supply chain:
Any known changes in the supply chain have to be communicated to the responsible Logistics
department of the BMW Group beforehand.
The respective BMW Group supplier is responsible for the development of the sub- supply chain.
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BMW Group suppliers have tools and methods for measuring and optimizing the supply
performance of their supply chain. Due to these tools the supplier is able to generate a status
concerning deviations and countermeasures on his 1st-tier level at any time.
4. Production process
4.1 Production planning and production control
The rhythm and the horizon of the production planning correspond to the rhythm and the horizon
of the incoming BMW delivery call-offs. Production planning and production control have to be
continuous and the respective production status must be transparent at all times.
As part of the production network of BMW Group, the supplier designs his processes according to
the basic principles of lean production. Thus, he contributes to the design of an ideal and efficient
total process.
The supplier is obliged to match his capacity continuously with the call-offs from BMW. The match
must cover the period of the received call-offs and shall consider the production prerequisites
(e.g. shift model, tooling time) based on the individual material numbers or meaningful clusters
(production lines, “manufacturing isles”). If at any time more than 15 shifts are required to meet the
call-offs, the respective BMW purchase and logistics departments must be informed immediately
unless no deviating agreement has been made.
For the automated, transparent and weekly match of capacities with the BMW delivery call-offs on
the basis of the material numbers system “KAPMS” (Capacity Management System) may be used.
The application is integrated into the BMW Partner Portal, refer to useful links in chapter 7,
and access will be authorized after an on-site introduction workshop.
Upon request, the supplier shall provide the logistic departments of the BMW Group with detailed
information about capacities including differences amongst variants. Moreover, possible capacity
expansions and reaction times shall be transparent.
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4.4 Test and development process, launch phase and run-out of
the series
Capacity planning is necessary for the test and development process, launch phase and run-out of
parts. Thereby all demands – no matter if it is for test and development, pre-series production,
series production, spare parts or demand for the international plants - have the same priority.
All requirements have to be delivered in the agreed quantities and within the agreed time.
In addition the delivery call-off, which is binding, the supplier shall use the Supplier Schedule for
Purchase Parts and the Logistics Schedule in GIS, refer to useful links in chapter 7. Deviating
scheduling and separate agreements with other BMW departments shall be indicated without
delay to the responsible material management department.
Every possible supply bottleneck, which has an effect on dates or volumes, within the test and
development process as well as the launch phase, shall be communicated without delay to the
respective contact partner of BMW Group Material Planning using the form “delay of delivery sheet”
form – can be downloaded via the BMW Group Partner Portal, refer to useful links in chapter 7.
If the BMW Group orders parts requiring a special inspection, the supplier is obliged to label these
parts accordingly and has to add on the respective inspection certificate to the parts
documentation.
Please bear in mind that tools must on no account be displaced or scrapped without the permission
of BMW Group in the run-out phase. Production suppliers are obliged to ensure their supply
capability after the run-out of the series for the period agreed on with BMW Group.
5. Supply process
5.1 Containers / packaging / empties
All valid requirements, procedures and agreements concerning packaging planning, container
availability and the handling of damaged containers are documented in the BMW Group Packaging
Manual (refer to useful links in chapter 7) and have to be met and adhered to by the supplier.
The supplier must ensure that the information flow for his different points of delivery is ensured via
a central, predetermined contact person responsible for coordination.
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5.1.2 Packaging definition / Documentation
The packaging data are documented by the supplier in a packaging data sheet forming the basis
of the packaging proposals which will be checked, released and incorporated into a pack
specification by the BMW packaging planning department. This pack specification is
communicated to the supplier or can be consulted in the B2B portal. While a packaging definition
agreed with a supplier is an integral part of the BMW Group international purchasing conditions for
production materials and automobile parts (IPC), it can nevertheless be adjusted in light of modified
BMW requirements.
Borne by
Cost designation
Supplier BMW
Costs generated through use of inadequate, wet or dirty packaging X
Costs caused by non-compliance with the defined packaging
X
(repackaging costs)
Repair costs for BMW standard and special containers 50% 50%
Costs for replacing EPP / special containers 50% 50%
Restocking costs (current original price) for containers in the event of
X
an unjustified shortage in the supplier account
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The monthly container account reconciliation, which is mandatory as stipulated in the packaging
manual, forms the basis of the needs-oriented provision of returnable containers.
If the delivery of parts is interrupted due to the non-completion of account reconciliation, the
resulting secondary costs (extra journeys, alternative packaging, etc.) are to be borne by you.
Furthermore, a physical annual inventory of containers shall be conducted at the request of the pool
management department. If any unjustified shortages are identified, BMW will charge the
replacement costs (current original price) for the containers to the supplier.
Disposable packaging shall be protected by the supplier, and by the carrier in the event of
subsequent additional handling (e.g. trans-shipping in the HUB), against the effects of the weather
(rain); for further details see the BMW Group packaging manual.
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5.1.11 Scrapping / Misuse of containers
BMW returns containers clean-swept. The supplier is liable for quality degradation resulting from
the use of inadequate, wet or dirty packaging. BMW checks the condition of the containers when
returning empties and receiving goods and reserves the right to charge repackaging costs to the
supplier in the event of delivery of containers which are damaged, incorrectly used or loaded
contrary to the regulations. BMW's own containers may only be scrapped in consultation with the
relevant BMW Group packaging planning specialist department. BMW own containers may not be
misused (e.g. for suppliers internal production flows, to supply the 2nd tier level or for delivery to
BMW competitors.
5.2 Dispatch
5.2.1 Notification / Preparation
To ensure compliance with the agreed goods receipt date at the BMW Group, the supplier shall
take account of the goods run-time and notify the stipulated transport service provider in good time
(no later than midday on the day before collection, Exception: for collection on Monday, notification
must be provided on Friday), see "Forwarder advising" helpful links, Section 7. If the stipulated
transport service provider has a portal connection, the notification must be provided by this means.
If the BMW Group provides a portal connection, this must be used instead of the transport service
provider's portal connection.
Any specific agreements between the BMW Group and the supplier in the form of a supply concept
e.g. for JIT/JIS/DIMO or overseas scopes apply.
- Calculating run-times
Day A designates the day before the planned collection on which the transport service provider
shall be notified by the sender. The consignments are collected on day B. Delivery shall be made
on the day specified in the run-time annex.
The run-time comprises the collection day, delivery day and, where applicable, other transit days.
All weekdays are included in calculating the run-time except Saturday and Sunday.
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- Exceptions to run-time reckoning
If collection from the supplier or BMW is notified for a Saturday, this Saturday is also included in
calculating the run-time. If delivery to BMW or to the supplier is notified for a Saturday, this Saturday
is also included in calculating the run-time.
For delivery to or collection from BMW AG plants in the UK, the following also applies:
If collection or delivery from or to the supplier or BMW is notified for a Sunday, this Sunday is also
included in calculating the run-time.
- Dealing with public holidays in transit countries and German federal states
If the run-time (not including the collection or delivery date) includes one or more public holidays
(even if regional/local) in one of the transit countries or German federal states through which the
transport travels (not including the collection or delivery country or federal state), the run-time is
extended by one or several days.
The extended run-time shall be observed in advance by the supplier and/or BMW in the notification
in order to ensure compliance with the required delivery date taking the extended run-time into
account. The supplier shall be notified of the relevant transport route (including transit countries) by
the forwarder commissioned by BMW within the framework of the initial discussion. The supplier
shall also be given due notice (at least 14 working days) of changes to the transport route by the
forwarder commissioned by BMW.
In principle, the supplier shall ensure that the notified goods are ready for loading, together with all
relevant documents, at 8 a.m. on the collection day.
The supplier is required to provide the forwarder with a time frame between 8 a.m. and 4 p.m.
Other time frames can be agreed outside this window with the consent of the forwarder.
If the forwarder arrives at the supplier's premises within the agreed time frame, the administrative
and physical loading process shall be completed no later than 2 hours (suppliers located in
NAFTA: 90 minutes) after the agreed start of the time frame.
If the relevant forwarder is not known to the supplier, he must contact the BMW "Europe plant
supply" transport management department – transport@bmw.de – no later than four weeks before
the first shipment.
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5.2.5 Use of express parcel courier services
Small consignments shall be sent using specified express parcel couriers as indicated in the
purchase order. Simultaneous compliance with all four of the restrictions listed below is required.
- Weight limited:
- Consolidation of consignments:
In principle, individual consignments to the same BMW site shall be combined in a single
consignment per day. The following applies:
If the total weight of 31.5 kg per day and per BMW site is not exceeded when consolidating
consignments, the consignments shall be sent by express parcel courier (packed per unloading
point).
If the total weight of 31.5 kg per day and per BMW site is not exceeded when consolidating
consignments, the consignments shall be sent by basic/flexi network and not by express parcel
courier (packed per industrial truck and unloading point). This means that even the small
consignments contained therein shall be provided to the basic/flexi network forwarder in palletized
form. A separate notification for these small consignments with express parcel couriers is not
permissible in this case.
Dispatch of hazardous goods via express parcel couriers is not permitted with DHL Express.
Hazardous goods shall therefore be sent via basic/flexi network forwarders (packed per industrial
trucks and unloading point).
Express parcel courier (FedEx for exports from Germany to NAFTA; for imports from NAFTA
to Germany; intra-Asia):
The dispatch of hazardous goods via express parcel couriers is permissible with FedEx if
compliance with the aforementioned restrictions concerning weight, dimensions and consolidation
is ensured and shall be used (packed per unloading point).
More detailed instructions concerning the dispatch of consignments via CEP (courier, express and
parcel shipments) and how to commission the CEP service providers used by BMW are described
in the BMW Group Partner Portal, refer to useful links in chapter 7.
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5.3 Delivery reliability
All dates and call-off volumes agreed on have to be observed on all accounts regardless of public
or religious holidays and country-specific limitations.
The delivery deadlines are understood as reception deadlines in the relevant plant of the
BMW Group.
Changes made manually by the BMW material control specialist department or by the IT system to
the quantities released after midday on the day of notification are only valid from the following day
or, in the case of changes made after midday on Friday, from the following Monday. If the goods are
required at the reception site earlier than the agreed delivery date, measures shall be agreed by the
BMW Group material control specialist department and the supplier which are necessary to
maintain production.
The supplier ensures, as part of his outgoing goods inspection, that there are neither wrong
deliveries, nor backlogs (supplied quantity 10% below ordered quantity or scope not supplied as
scheduled), nor over-deliveries (deliveries without a call-off or excess deliveries in terms of quantity).
It has to be ensured that all BMW Group quality requirements for supply parts are fulfilled.
If shortcomings are suspected or if shortcomings are detected, the BMW specialist departments
Quality Assurance and Material Planning must be informed at once.
Every possible supply bottleneck, which has an effect on dates or volumes shall be communicated
immediately to BMW specialist department “Material Planning” in detailed and written form.
This note has no effect on the logic of the BMW evaluation system for backlogs and does not
exempt the supplier from his contractual obligations.
The supplier is obliged to meet the received delivery call-offs, except he raises a justified objection
to the call-off in written form within the following deadlines:
- one (1) working day after reception of the delivery call-off or the associated change notification,
if the requirements or changes indicated therein are intended to take effect within
ten (10) working days inclusive of receipt of the delivery call-off or the modification thereof.
- three (3) working days after reception of the delivery call-off or the associated change notification,
if the requirements or changes indicated therein are intended to take effect between
eleven (11) working days and three (3) months inclusive of receipt of the delivery call-off or the
modification thereof.
- ten (10) working days after reception of the delivery call-off or the associated change notification,
if the requirements or changes indicated therein are intended to take effect more than
three (3) months after receipt of the delivery call-off or the modification thereof.
Special transports require the approval of BMW department “Material Planning”. Moreover, it has
to be determined who bears the costs and a supply period has to be defined.
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5.4 Wrong delivery
Based on the principles of lean production and the incorporated zero error principle the supplier
shall design his logistics processes (from production to shipment) such that incorrect supplies
(content of packaging unit not in line with designation on VDA goods label, deviation regarding part
number designation, change index and quantity) are avoided. It shall be ensured that wrong
deliveries can be traced back at any time to the process step where there occurred.
When supplying production networks 1 and 2 via the logistics providers (packaging companies)
above explained 24h emergency supply applies related to the respective unloading location at
BMW.
Transport characteristics:
- Carrier: LCL/FCL sea freight or air freight
- BMW plant number
-
To generate a collection order, please use the BMW "Overseas Shipping Order template", see
helpful links, Section 7.
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5.6.2 Collection / notification time frame
Recommendation (subject to change) to notify collection:
Note: It must be ensured that the size of a consignment does not exceed a standard FTL load
(1 consignment = 1 document set).
For delivery, BMW requires the following documents from the logistics service provider
- All documents already indicated from the supplier
- T1 customs document
- AWB for air freight customs clearance
Special documents for customs clearance of hazardous goods, export declarations, customs
clearance or clearance by the logistics service provider shall be clarified with the relevant contact
people (customs officers in the exporting countries, logistics service provider, etc.) the type of
document transfer from the supplier to the logistics service provider shall be agreed between both
parties.
The documents shall be issued per consignment and per unloading point. If a supplier has several
sea containers for an unloading point, this document shall be generated for every individual
container. With regard to the invoice to be established, please also note the BMW Group
purchasing conditions; see helpful links, Section 7.
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5.7 Dynamic Lorry Steering System (DLSS)
The dynamic lorry steering system (DLSS) is a software used to book time slots and to control the
delivery process at plants of the BMW Group. Via the Onlinemodul accessable due to BMW Group
Partner Portal hauliers and suppliers can book time slots for their deliveries to the plants.
The allocation and booking of timeslots allows a balanced distribution of inbound and shipping
transports throughout the day. Hereby workload at the loading decks is levelled, which leads to a
fast and efficient processing of lorries.
In the DLSS-appendix requirements on Delivery-at-Place suppliers are documented. Furthermore
tasks and duties regarding the usage of DLSS are described. For the appendix see chapter 7
“Legal basis and helpful links”.
6. Specific requirements
6.1 Controlling the integration levels
Generally, the logistic requirements for conventional parts also apply to component parts that
include software. Moreover, it has to be ensured that parts with the new integration level are
delivered within 10 days of system acceptance, refer to useful links in chapter 7. This regulation
applies also for the supply of production networks 1 and 2 via the logistics providers (packaging
companies).
The sequence supply has to be guaranteed irrespective of the supply location and of the number
of BMW and MINI locations supplied. Details are regulated in the respective supply concepts.
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6.3 Supply modes
6.3.1 Just-In-Sequence (JIS)
Parts families are called off punctually and in sequence (order supply) via the standardized
production call-off (SPAB). Supply to BMW takes place several times a day. Order-related
information (TAD/TOD) is communicated at least 4 days prior to time of need.
- supply mode JIS 5000: the supplier is given sequence information and the time of delivery
(SWET) approx. 4 working days prior to time of need. Delivery has to be in sequence order.
- supply mode JIS 5300: the supplier is given sequence information 4 working days prior to
time of need. The transfer of the assembly sequence (SWET) takes place a few hours
before time of need. Delivery has to be in assembly order.
It is absolutely necessary that the supplier adjusts himself to the production times of the BMW or
MINI plants that are to be supplied.
The order data record and sequence changes can be presented within the scope of the customer-
oriented sales and production process (at least 4 days). If this can no longer be taken into account,
the information shall be sent promptly to the relevant BMW Group material control specialist
department.
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7. Legal basis and helpful links
https://b2b.bmw.com
Quality requirements
Departments Quality Homepage
https://b2b.bmw.com
Forwarder advising Departments Logistics Exchange logistical data
Entry for carriers
https://b2b.bmw.com
Template Shipping Order -
Departments Logistics Supply and Transport
Overseas
Transportation Overseas
https://b2b.bmw.com
TEREG
My Workspace My Applications TEREG
https://b2b.bmw.com
Packaging manual
Departments Logistics Packaging
https://b2b.bmw.com
10-days flash-process Departments Logistics Logistic processes
Logistics Requirements for suppliers
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8. Abbreviation index
Editor
BMW Group
Versorgungssicherung In- und Auslandswerke
Postal address
Bayerische Motoren Werke
Aktiengesellschaft
80788 München
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