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Schedulig agreement guidelines

1. Process

For the following process our terms and conditions of purchase in valid version are applied. This effects the KTM AG as well as the KTM Components GmbH. As supplier you shall receive biweekly scheduling agreement releases from KTM. (In the event of business interruptions at KTM, deviations from the biweekly update may occur.) If you do not return a confirmation to KTM within 3 working days, these delivery schedules are automatically considered as accepted by you.

The quantities and delivery dates in the scheduling agreement releases marked with Status 1 (definitive) are binding for you as well as for KTM. This means there is an obligation to deliver or accept.

The quantities and delivery dates in the scheduling agreement releases marked with Status 4 (forecast) are always to be seen as mere previews, which can still change with respect to quantity as well as date. The quantities and dates are for the purpose of capacity planning in your company.

 

2. releases

2.1. Production release

To ensure supply and to give you the option of producing in economical lot sizes, KTM can release the production quantities of the quantities indicated in the scheduling agreement releases which fall into a defined release horizon starting on the date of issuance of the scheduling agreement release. This does not depend on the statuses indicated in the scheduling agreement release.

With regard to these quantities released for procurement, there is an obligation to deliver or accept. KTM, however, reserves the right to postpone the delivery and invoicing for releases with Status 4 for up to 12 months after the original release.

2.2. Delivery release

In principle, you commit to delivering only approved serial products for the quantities shown in the scheduling agreement releases. This is ensured by the provision of the "approved for serial production drawing". If this release has not yet been received, you are required to contact the responsible purchaser in a timely manner (without endangering your planned production and subsequently the delivery date at KTM). If the release drawing is not yet available at this time, a special release may be granted. In any case, the production may only take place after a written confirmation from the purchasing department.

This explicitly applies only to delivery schedule lines in the scheduling agreement releases. Prototype-, P3- and initial sample orders are exempted from this rule because the orders are based on a different degree of maturity of the drawings.

 

3. Delivery dates and deadlines

Agreed-upon dates and deadlines are binding. The standard for compliance with the delivery date or delivery deadline is the receipt of the goods by the orderer. If delivery has not been agreed upon as "ex works", you are required to deliver the goods in a timely manner under consideration of the usual time for loading and shipping.

 

4. Additional costs and production stoppage

All costs incurred for standstill and rework in production, delayed deliveries or defective parts are passed on to you. In addition, all special transport costs incurred due to delayed deliveries or defective parts are passed on to you.

 

5. Validity / adjustments

We expect you to choose the most economical production lot size within the production release horizon.

In addition, you are required to consult with the KTM purchasing department at the end of the model year in order to arrange a sensible production lot beforehand. We don’t accept minimum quantity surcharges. This procedure also applies to the procurement of spare parts.

We strive to keep lead times for production or procurement releases as short as possible. The lead times regulated in the scheduling agreement can thus be adjusted to the respective market situation at any time temporarily and by mutual agreement.
Should you determine that, for a specific article number, the agreed production release or procurement release is not sufficient at that point in time, or that, due to your production capacity being too low, preproduction is necessary, you shall inform the KTM purchasing department.