hino parts division policies and procedures

Update Version 11.6.2013

Policies and Procedures

Hino Parts Division


Update Version 11.6.2013


SECTION 1 INTRODUCTION ..................................................................................... 2

SECTION 2 KEY PERFORMANCE INDICATORS AND GUIDELINES ..................... 3-4 SECTION 3a HMI DEALER ORDERING ...................................................................... 4-8 SECTION 3b ORDERING.............................................................................................. 9-13 3.1 INTRODUCTION ...................................................................................................................9

3.2 WHERE TO PLACE ORDERS ..............................................................................................9

3.3 ORDER TYPES AND CODES ...............................................................................................9-10

3.3A STOCK ORDER ..................................................................................................9-10

3.3B EMERGENCY ORDER ........................................................................................10

3.3C VEHICLE OFF ROAD (VOR) ORDER .................................................................10

3.4 ORDER ENTRY ....................................................................................................................10-11

3.4A STOCK ORDERS ................................................................................................10

3.4B EMERGENCY ORDERS .....................................................................................11

3.4C VEHICLE OFF ROAD (VOR)ORDERS ...............................................................11

3.5 ESTIMATED TIME OF ARRIVAL (ETA) DATE .....................................................................11

3.6 ORDER CANCELLATION .....................................................................................................11

3.7 CAMPAIGN PARTS ALLOCATION/ORDERING ...................................................................12

3.8 MODEL YEAR PARTS ALLOCATION/ORDERING .............................................................12-13

SECTION 4 SHIPPING ................................................................................................ 14-17 4.1 INTRODUCTION ...................................................................................................................14

4.2 PACKING SLIPS ...................................................................................................................14-15

4.3 PARTS SHIPPING LABELS ..................................................................................................15-16

4.4 TRANSPORTATION .............................................................................................................16-17

4.4A TRANSPORTATION POLICY .............................................................................16

4.4B ACCEPTANCE OF SHIPMENTS ........................................................................16

4.4C INSPECTION OF SHIPMENTS ...........................................................................17

4.4D RETURNING FREIGHT TO THE PDC ................................................................17

SECTION 5 INVOICING .............................................................................................. 18-22 5.1 INTRODUCTION ...................................................................................................................18

5.2 PARTS BATCH ORDER CONFIRMATIONS/ORDER ACKNOWLEDGEMENTS .................18-19

5.3 PARTS INVOICES ................................................................................................................20-21

5.3A ON-LINE ..............................................................................................................20

5.3B E-MAIL .................................................................................................................20-21

5.4 PARTS STATEMENTS .........................................................................................................22

5.5 MEGA-FLEET CREDITS .......................................................................................................22

SECTION 6 RETURNS................................................................................................ 23-28 6.1 INTRODUCTION ...................................................................................................................23

6.2 CORE RETURNS ..................................................................................................................23-24

6.2A CORE RETURN POLICY ....................................................................................23

Table of Contents

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Policies and Procedures 6.2B RETURN OF WARRANTY CORES .....................................................................23-24

6.2C PAYMENT OF CORE CREDITS ........................................................................24

6.3 PARTS DISCREPANCY RETURNS .....................................................................................24-26

6.3A TERMS FOR RETURNING DISCREPANT PARTS ............................................24

6.3B PROCESS FOR CLAIMING DISCREPANT PARTS ...........................................24-25

6.3C RETURN OF DISCREPANT PARTS ...................................................................25

6.3D CREDIT FOR DISCREPANT PARTS ..................................................................25-26

6.4 ANNUAL PARTS RETURNS .................................................................................................26-27

6.5 INITIAL DEALER KIT RETURNS ..........................................................................................27-28

6.6 DEALER TERMINATION RETURNS ....................................................................................28

SECTION 7 PARTS WARRANTY ............................................................................... 29 7.1 INTRODUCTION ...................................................................................................................29

7.2 PARTS WARRANTY POLICY/TERMS .................................................................................29

7.3 PARTS WARRANTY CLAIM PROCESSING ........................................................................29

7.4 CONTACTS ...........................................................................................................................29

SECTION 8 PRICING .................................................................................................. 30-31 8.1 INTRODUCTION ...................................................................................................................30

8.2 PRICING LEVELS .................................................................................................................30-31

8.3 PRICING UPDATES ..............................................................................................................31

8.4 PRICING ACTIONS ...............................................................................................................31

SECTION 9 PUBLICATIONS ...................................................................................... 32 SECTION 10 GENERAL CONTACTS .......................................................................... 33-34 10.1 GENERAL NUMBERS ..........................................................................................................33

10.2 DIRECT CONTACTS AND RESPONSIBILITIES ..................................................................33

10.2A CUSTOMER SERVICE REPRESENTATIVES ....................................................33

10.2B PARTS TECHNICAL SUPPORT .........................................................................33

10.2C PARTS MARKETING & SALES...........................................................................33

10.2D PARTS MATERIALS ...........................................................................................33

10.2E PARTS WAREHOUSE OPERATIONS ................................................................33

10.2F NATIONAL PARTS MANAGER ...........................................................................33

10.2G PARTS AND LOGISTICS OPERATIONS ............................................................34

10.3 OTHER KEY CONTACTS .....................................................................................................34

10.3A WARRANTY ........................................................................................................34

10.3B ACCOUNTING & FINANCE ................................................................................34

SECTION 11 PARTS TECHNICAL ............................................................................... 35-39

11.1 ELECTRONIC PARTS CATALOG (EPC) ..............................................................................35-39

11.1A INSTALLATION ..................................................................................................35

11.1B UPDATES ...........................................................................................................35

11.1C LICENSING .........................................................................................................35-39

11.2 GENERAL PARTS TECHNICAL INFORMATION .................................................................39

SECTION 12 PARTS MARKETING ALERTS .............................................................. 40

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The Parts Distribution Center (PDC) of Hino Motors Sales USA, Inc. (HMS) has published this manual in order to assist dealers to fully understand the various policies and procedures governing their dealing with Hino Parts. The Hino Parts Policies and Procedures Manual should be reviewed and understood by all Hino dealer parts department personnel. It should be referred to regarding clarification of Hino’s Parts’ policies and procedures. Additionally, this manual should be made readily available within the dealer’s parts department. On occasion, Hino will publish and distribute revisions, updates, and/or additions to these policies and procedures. It is the dealer’s responsibility to keep their manual current. This manual will also be posted on the HinoNet intranet site (www.hinonet.net) under the Parts/Parts Documents section. Hino reserves the right to change any provisions and/or conditions of the Policies and Procedures Manual at any time without notice and without obligation. However, Hino will attempt, at all times, to properly notify dealers in advance and in writing of any revisions or additions to the policies and procedures detailed in this manual. To obtain the most current version of this manual always refer to the electronic version posted in HinoNet on the main “Parts” tab.

Section 1 Introduction

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Hino Dealer Key Performance Indicators (KPI) are visible in HinoNet. HMS is committed to working with its dealers to ensure customer satisfaction through excellent parts support. To encourage dealers to make and sustain continuous improvement in parts support, HMS has implemented a Performance Measurement process. The Performance Measurements track dealer performance in a number of critical areas, and HMS’ District Parts Managers (DPMs) and Technical Service Managers (TSMs) will work with each dealer on continuous improvement. These measures are also the basis for current and future Hino Honors Parts Recognition Programs. Specific areas in which Key Performance Indicators (KPI’s) will be monitored and measured are: 1. Dealer Purchases

a. Hino Parts i. Hino establishes dealership goals based on various factors including but not

limited to: 1. Prior year sales 2. Vehicles in operation in the dealership AOR 3. % Growth rating

b. All-Makes i. Goals established based on same parameters as listed in section “1A” above

c. Accessories i. Goals established based on same parameters as listed in section “1A” above

d. Campaign i. No “goal” number set

e. Current Percent of Objective i. Dealers are measured based on the fiscal year to date purchases compared to

their established goal for the year 2. Customer Satisfaction

a. Overall Satisfaction with Parts Experience i. Rating comes from dealership returned 12 month customer surveys from the

“Hino Premier Customer Care” program in HinoNet. View Hino Premier Customer Care (HPCC) through HinoNet for information and tutorials on how to use HPCC.

b. Speed of Delivery, Parts not in dealer stock i. Rating from HPCC (see #2a)

c. Number survey responses- Overall Satisfaction with Parts Experience i. Rating from HPCC (see #2a)

d. Parts Availability i. Rating from HPCC (see #2a)

e. Parts Availability i. The % of the recommended HMI parts on hand at the end of the calendar month

f. Stock Order Ratio i. Emergency order lines divided by total ordered lines, expressed as a %

g. Dealer Buyback Utilization i. The % of the annual return $ allowance utilized

h. Super Stock Order Utilized i. Utilized the Super Stock Order program during the previous month (Yes %)

i. Lost Sales Tracking i. Lost sales entered into DCS during the prior month (Yes %)

j. HMI Participating Dealer i. Dealer is a HMI Participating Dealer (Agreement signed and DBS integrated, Yes

%) k. Suggested Order

Section 2 Key Performance Indicators & Guidelines

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i. HMI recommended order manually reviewed (Yes %)

l. Automated Order i. HMI order automatically created (Yes %)

m. Quarterly Stock Review i. Dealer participates in the Quarterly Stock Review process (Yes %)

n. SSO/HMI Discount i. The $ saved by the Dealer utilizing either HMI or the SSO

3. Personnel (Competencies) a. The average of the responses for this question from Hino Premier Customer Care b. Personnel Training

i. The % of the eligible Parts personnel trained 4. Facility

a. Scores the dealership on their hours of operation and Hino brand recognition 5. Price Competitiveness / Credit Availability

a. The average of the responses for this question from Hino Premier Customer Care b. Mega-Fleet Participating Dealer

i. Registered Mega-Fleet Participating Dealer (Dealer Agreement Executed, Yes %)

c. Manual Invoicing i. Invoices are entered into Corcentric Manually (Yes %)

d. Automated Invoicing i. DBS is integrated with Corcentric and invoice processing is automated (Yes %)

e. Gross Margin (Reporting) i. Average Gross Margin for the prior month

f. Dealer Prices Vs Hino List Price i. Dealer charges end customers equal to or less than Hino Trucks' Suggested List

6. Parts Quality a. The average of the responses for this question from Hino Premier Customer Care

7. Quest for the Cup a. District Ranking by Dealer Purchase

i. The ranking in your respective district of total All-Makes purchases b. District Ranking by Percent of Objective

i. The ranking in your respective district of All-Makes purchases to objective

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Dealers participating in the Hino Motors Sales U.S.A., Inc. (“HMS”) Hino Managed Inventory Program (“HMI”) are required to adhere to the policies and procedures outlined below. 1. Dealer will at all times be in full compliance with the Dealer Sales, Parts and Service Agreement

and the Program Dealer Agreement between HMS and Dealer.

2. Dealer authorizes the release of its stock data for Hino Parts (defined as any active part currently in the Hino Enterprise System (HES)), an initial 12+ month historical sales file of all Hino Parts numbers, and an ongoing daily sales transmission to HMS. Dealer grants HMS and its supplier(s) the right to access and use the Dealer’s Hino Managed Inventory (“HMI”) parts inventory and sales data, which shall include the following:.

a. Stock on Hand b. Sale(s) of units at Dealer Net c. Inventory adjustments in and out d. Lost Sales

3. Dealer stock status information will be transmitted to the HMI system. The HMI system will

forecast and create a recommended order that can be launched from the Dealer’s business system and will create shipments from HMS’s Parts Distribution Center directly to Dealer.

4. Criteria used in the Program: a. Stocking parts must have three separate demands (or orders) regardless of the quantity

over a rolling 12-month period. b. Suggested stocking levels are two months’ supply or six inventory turns. c. An HMI Part is considered obsolete after 12 consecutive months of no activity.

5. Dealer agrees to regularly and promptly review and act upon all new Program recommended

order quantities.

6. Timing and Frequency of data transfer—see Appendix A.

7. Dealer acknowledges that the HMI system will order stock from HMS on behalf of the Dealer to replenish stock that has been sold by the Dealer. Stock will be ordered in accordance with stocking parameters approved by both the Dealer and HMS.

8. Dealer will continue to place Emergency and Vehicle Off-Road (VOR) orders in the usual manner

as these type orders will be outside the scope of HMI management. Emergency and VOR orders will be processed and invoiced according to the Hino Trucks Parts Policies & Procedures Manual.

9. Dealer authorizes HMS to distribute participating dealer locations, contacts, and HMI Parts stock

levels to all Hino Managed Inventory Participating Dealers (“HMIPDs").

10. Dealer will report all technical difficulties to the HMS help desk: HMS Help Desk Hours: Monday – Friday 7:30 AM – 6:00 PM Eastern time Help Desk Phone: (248) 699-9399 Help Desk Email: [email protected] Non-business Hours Support: 313-592-5959 (including Saturday and Sunday)

Section 3a HMI Dealer Ordering

mailto:[email protected]

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11. Only HMIPD’s will be eligible for Program Incentives referenced in Appendix B

12. Dealer will adhere to all of Dealer’s obligations listed above and comply with any additional requirements or procedures as may be set forth in revisions made by HMS to the Program from time to time.

13. Dealer understands the requirements of HMS under the Program as referred to in Appendix C

14. HMS or Dealer may terminate Dealer’s participation in the Program at any time, with or without

cause, upon thirty (30) days written notice to the other.

15. HMS may, in its sole discretion, terminate the Program at any time, upon thirty (30) days written notice to Dealer.

Appendix A

Timing and Frequency Specifications

1. The Dealer’s Business management system (BMS) will transfer stock movement data to the HMI system daily.

2. The HMI system will send suggested orders to the BMS once per week. The weekday will be determined by HMS.

3. The Dealer reviews, approves and submits PO within 3 business days after receiving the suggested order from the HMI system.

4. Once the Dealer is comfortable with the HMI system suggested orders, Dealers can begin to have the HMI system suggested PO submitted automatically without having to review.

5. Once HMS is comfortable with the suggested orders per Dealer, purchase orders can then be automatically submitted to the Dealer without intervention from the HMI Coordinator.

6. NO. 4 and NO. 5 in Appendix A can work together or independently of one another.

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Appendix B

HMI Program Incentives

1. All HMI stock orders, regardless of size, will receive a 3% discount

2. HMI or participation in the quarterly stock review is a requirement for Hino

Honors

3. HMS will waive the restocking fee on all HMI Parts that become obsolete as

defined by HMS in Appendix C

4. HMI participants will receive prepaid freight on VOR orders that meet the

following criteria, provided the dealer is regularly accepting the HMI

recommendations:

a. The HINO truck must be 0-36 months of age based on the warranty start

date loaded into the Hino Enterprise System

b. The HINO truck has an open campaign or recall in DCS

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Appendix C

HMS’s Commitments

1. HMS agrees to provide HMI system software support as well as application

training to the dealership personnel from HMS or its designee(s) and will assist

the Dealer if and when HMI system issues arise.

2. HMS agrees to replenish the Dealer’s inventories to optimal stocking levels for

those Hino part numbers managed by the HMI system, subject to parts

availability. The Dealer’s Business Management System (BMS) will be

automatically updated to reflect stock on order.

3. HMS will bear freight charges on all approved HMI obsolete parts as defined in

Appendix C, NO. 4

4. HMS will provide obsolescence protection as defined below:

a. Any HMI part in dealer stock with no movement for 12 consecutive

months is defined as an obsolete part.

b. The HMI system will provide eligible part numbers and quantities for

returns with RMA number included.

c. There will be no handling charge or freight expense incurred by the

Dealer.

d. After 12 consecutive months of no activity for a part, the HMI system

will automatically produce and email a return material authorization

(RMA) to the Dealer for the obsolete part(s). A pending credit will be

approved once the obsolete part(s) has been received by HMS. The

part(s) must be returned within 30 days after the RMA is issued.

HMIPD’s will be subject to 3% return limit (total annual stock orders at

dealer net value) on all parts.

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3.1 Introduction

This section describes Hino’s policies and procedures for ordering Hino Parts:

1. Where to Place Orders 2. Order Types and Codes 3. Order Entry 4. Order Cancellation

For complete instructions on the ordering process, please refer to your Hino Enterprise System Dealer Connect Parts Module Training Manual (LT-0007).

3.2 Where to Place Orders

All orders should be placed electronically through the Parts Distribution Center using the Dealer Connect System (DCS). Orders cannot be placed over the phone. Faxed orders will only be accepted with prior approval from HMS. Southaven PDC Telephone Contacts: Toll Free: (866) 372-4466 Phone: (662) 342-3939 Fax: (662) 342-5151 Southaven PDC Mailing Address: Hino Motors Sales USA 8425 Airways Blvd., Suite 101 Southaven, MS 38671 For questions or assistance with placing an order, please call (866) 372-HINO (866-372-4466) to speak to a Customer Service Representative. HMS Customer Service Representatives are available Monday through Friday from 7am – 7pm Central Time

3.3 Order Types and Codes

3.3A Stock Orders - Use DC202 Screen All Stock Orders are picked and shipped by ground the next business day after the order is transmitted to Hino. There are no Shipping and Handling charges on a Stock Order. Stock Orders cannot be drop shipped to a customer’s location. Sales Type (S) - normal Stock Orders (dealer entered) Stock orders which exceed the minimum order value of $5000 DNP (minimum subject to change) of HINO only parts excludes All Makes parts, will receive a 3% super stock order discount of DNP. The minimum order value is calculated on dealer net price excluding any applied core charges. Core charges are not eligible for the 3% discount.

Section 3b Dealer Without HMI Ordering

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Sales Type (O) - Special Stock order- (entered by HINO personnel only)

Sales Type (O) is for stock orders with special pricing circumstances involved. (O) order types are not eligible for the super stock order discount and are placed by a HINO representative. Sales Type (B) - Stock order-submitted via Dealer Business System (HMI) Sales Type (B) denotes an order transferred to HINO via the Dealer’s Business system. These orders are received by HMS for processing as a stock order. 3% Super stock order discount is applied to all HMI orders on HINO only parts, regardless of order value. Core charges are not eligible for 3% super stock order discount. HMI-suggested stock order is an example of a (B) order type.

3.3B Emergency Order (E) – Use DC202 Screen

The Sales Type for Emergency Orders is (E). Emergency Orders are placed for parts that are in stock and needed immediately. Once an Emergency Order is transmitted, it cannot be cancelled. Emergency Orders are shipped FedEx Overnight the same day the order is placed. A Shipping and Handling Charges apply to all Emergency Orders. Emergency Orders can be drop shipped to your customer location. Shipping and Handling Charges are subject to change due to increasing freight costs. However, freight costs applied to dealer emergency orders will never exceed actual freight costs. HMS reserves the right to change the amount charged for shipping and handling at any time without notice or obligation. Actual freight charges can be viewed during order finalization stage of order process.

3.3C Vehicle Off Road (VOR) Order (V) – Use DC202 Screen

The Sales Type for VOR Orders is (V). VOR Orders are placed for parts that are not in stock but are needed immediately. Due to special ordering processes, once a VOR Order is transmitted, it cannot be cancelled. Parts ordered VOR are non-returnable. When placing a VOR Order, the vehicle identification number (VIN) of the unit down must be supplied. HMS reserves the right to audit the VOR process for compliance.

3.4 Order Entry

All orders Stock, Emergency or VOR are to be entered using the DC202 Screen Option in the DCS. For complete instructions on how to use the DC202 – Daily Stock/Emergency/VOR Orders screen, please refer to the DC202 section of your Hino Enterprise System Dealer Connect Parts Module Training Manual. For questions or assistance, please call (866) 372-HINO (866-372-4466) to speak to a Customer Service Representative.

3.4A Stock Orders

Stock Orders placed using the DCS before 12 midnight Central Time will be shipped the following business day. Stock orders will ship via Best Way Ground shipping at the discretion of HINO Parts. No Freight charges are applied to stock orders shipped in this manner.

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Policies and Procedures 3.4B Emergency Orders

Emergency Orders placed through the DCS, for parts available at the PDC, before 10pm Central Time Monday through Friday will be shipped Next-Day Air the same day. If the part is not in stock, a VOR Order should be placed. Shipping and Handling charges will be added to all Emergency Orders; however, they will be waived on Emergency Backorders older than 14 business days.

3.4C VOR Orders

VOR Orders should be placed if the part is not available at the PDC, but needed immediately. VOR status does not guarantee overnight delivery, but allows for expedited shipping to dealer from vendor when part is available. Shipping and Handling charges will be added to all VOR Orders; however, they will be waived on VOR Backorders older than 14 days. For participating HMI dealers, VOR Orders placed for parts on Hino Trucks 0-36 months of age based on warranty start date, or Hino Trucks with open campaigns or recalls in DCS will be eligible for prepaid freight. Dealers placing a VOR Order in the DCS will be prompted to enter the full 17 digit VIN for the down unit. HMS will elevate this order to the highest level to obtain the part.

3.5 Estimated Time of Arrival (ETA) Date

In the DCS, the DC210 – Item Stock & Order Enquiry screen will display the Estimated Time of Arrival (ETA) Date for parts ordered by HMS from its suppliers. The ETA Date is populated based on the lead time for stock orders from HMS’ suppliers and represents the date that the respective stock order is expected to arrive at the PDC. If an Emergency or VOR order is placed by the dealer, the part can normally be expedited from the supplier and the ETA Date may be improved. The ETA date is not a guarantee and should be reported as such. Any dealer questions about the ETA Date on a specific part may be addressed to HMS Customer Service at (866) 372-HINO (866-372-4466).

3.6 Order Cancellation Dealers are responsible for confirmation and verification of order, prior to order submission. Once an order is transmitted to HINO and the parts are allocated in the PDC for processing, the order will not be cancelled. Backordered parts can be cancelled from an order, provided the part is a PDC stocked part. Special order, ALL MAKES or VOR parts cannot be cancelled once an order has been placed with the supplier. Special order, ALL MAKES and VOR parts are not returnable without prior approval from the PDC. For questions or assistance with order cancellations, please call (866) 372-HINO (866-372-4466) to speak to a Customer Service Representative.

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3.7 Campaign Parts Allocation/Ordering

• Push Allocation- HMS will pre-ship an allocation of parts supply projected to last through at least the first 90-days of the campaign. This allocation will be based on a combination of factors including the number of campaign vehicles sold by the dealer, Polk registration date (where applicable), parts sales history, and experience. Initially HMS plans to ship approximately 30% of your projected requirements. These parts will ship using the campaign number as your purchase order number.

• Campaign Kits- When multiple parts are involved in the campaign, HMS will attempt to create a campaign kit using the campaign number as the kit part number, whenever possible. This will facilitate order entry, tracking and will insure that all campaign parts are associated.

• Delayed Payment Invoice- All “Push Allocation” campaign parts will be invoiced by HMS with 90-day delayed payment terms. The statement will show the invoice as current. The invoice will show the delayed invoice due date and the PO number appearing on the invoice will be the campaign number.

• Return Privileges- Since HMS is making decisions on your inventory investment, all parts that are push allocated by HMS and not used in support of the campaign will be returnable to the Memphis PDC. HMS will pay for return freight utilizing our UPS freight account number and full parts credit will be granted. These returns will not reduce your allowable annual return. For push allocated parts, returns will not be accepted before completion of the campaign for eligible trucks in the dealer’s area of responsibility. We recommend you keep at least one campaign kit in stock for transients.

• Pull Orders- After the initial allocated campaign inventories have been shipped, additional orders will be processed as usual through the Dealer Communications System. Use your normal purchase order conventions and not the campaign purchase order for subsequent orders. Quantities ordered after the initial “push allocation” will be at the dealer’s discretion. Return privileges will not apply to excess subsequent orders.

3.8 Model Year Parts Allocation/Ordering

• Push Allocation- HMS will pre-ship an allocation of parts to support the parts and Service needs of Model Year Trucks emerging population. This push allocation parts stocking initiative is intended to help minimize potential vehicle downtime and support positive customer satisfaction,

• Initial Stocking Incentive- All dealers will receive a 10% discount from the Dealer Net

Pricing at the time of shipment.

• Delayed Payment Invoice- All “Push Allocation” parts will be invoiced by HMS with 90-day delayed payment terms. The statement will show the invoice as current. The invoice will show the delayed invoice due date and the PO number appearing on the invoice.

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• Return Privileges- Since HMS is making decisions on your inventory investment, all parts that are push allocated by HMS and not used within 12 months of the invoice date will be returnable to the Memphis PDC. HMS will pay for return freight utilizing our UPS

freight account number and full parts credit will be granted. These returns will not reduce your allowable annual return.

• Pull Orders- After the initial allocated inventories have been shipped, additional orders

will be processed as usual through the Dealer Communications System. Use your normal purchase order conventions for subsequent orders. Quantities ordered after the initial “push allocation” will be at the dealer’s discretion. Return privileges will not apply to excess subsequent orders.

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4.1 Introduction This section outlines general and specific transportation methods to be followed in the delivery of dealer parts and accessories. Due to changing business conditions, it may be necessary for the PDC to deviate from their normal practice in order to maintain a positive Dealer/PDC relationship.

4.2 Packing Slips

HMS will provide a Parts Packing Slip for each shipped dealer order. The Parts Packing Slip lists all parts ordered, shipped and backordered. The Parts Packing Slip is attached and sent with one of the parcels in a parts shipment to the dealer. For Emergency and VOR orders, there will be one packing slip per each shipped order. If multiple Emergency and/or VOR orders are going to the same location and are shipped together, multiple packing slips may be enclosed and attached to the shipment. Because Stock orders are batched overnight, multiple Stock orders may be shipped together and listed on a single packing slip. Information on a Parts Packing Slip (Figure 4.1) includes:

1. Warehouse: Location from which the order was shipped (M1 for HMS National PDC).

2. Transport Company: Carrier on which the order was shipped 3. Shipment Date 4. Bill-to Location: Dealer Code and address 5. Ship-to Location: Company and address to which the parts were shipped. 6. Order Ref #: The original HMS order reference number (always has an “R”

prefix). If multiple stock orders are on one packing slip, there may be more than one number in this column.

7. Customer Order Reference Number: The dealer’s purchase order number. If multiple stock orders are on one packing slip, there may be more than one number in this column.

8. Ordered Item: Part number ordered by the dealer. 9. Shipped Item: Part number shipped to the dealer. In the case of

supersession, this number may differ from the part number ordered. 10. Description of Item 11. Quantity Ordered 12. Quantity Shipped 13. Quantity on Backorder

Section 4 Shipping

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Questions about Parts Packing Slips may be addressed to Hino Parts Warehouse Operations (See Section 10 – General Contacts).

4.3 Parts Shipping Labels

A shipping label is attached to each part shipped. This label contains the following information:

1. Location: For internal use only 2. Part Number: Item number (printed both as a numeral and barcode type

CODE-128A, small UPC font) 3. Quantity: Quantity shipped (printed both as a numeral and barcode type

CODE-128A, small UPC font) 4. Description: Part description 5. Instruction Number: For internal use only 6. Task Number: For internal use only 7. Dealer Code: The HMS customer code 8. Line Number: The customer’s order line

FIGURE 4.1

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Policies and Procedures An example of a Parts Shipping Label is shown in Figure 4.2.

4.4 Transportation

4.4A Transportation Policy

Hino Motor Sales’ policy is to ship all dealer orders freight pre-paid. Therefore, the modes of transportation and specific carrier selection decisions will be made by the Parts Warehouse/Transportation Manager. The selection of mode and carrier will be related to the type of order (Stock, Emergency, or VOR). Generally, stock orders will ship via UPS, FedEx Ground, or an LTL carrier. Emergency/VOR orders generally ship FedEx Express. It is HMS’ intent to provide reliable, dependable, and damage-free delivery.

4.4B Acceptance of Shipments

All properly addressed shipments should be accepted and received by the dealer, including when damage or loss is evident. In order to prevent unnecessary delay and expense in resolving a problem, shipments should not be immediately returned to the PDC. The only exception would be if a carrier refused to allow short and/or damaged notations on the delivery receipt. ALL VISIBLE DAMAGE OR LOSS MUST BE NOTED ON THE DELIVERY RECEIPT PRIOR TO ACCEPTANCE. Freight delivered via FedEx Express/Ground or UPS will generally be delivered in cartons and should be signed for as exact number of cartons received. Larger orders handled by LTL carriers will be shipped as pallets and should be signed as exact number of pallets received. Dealers have the sole responsibility for verifying and documenting count and damages of shipments. Failure to properly document shortages or damage could result in claim denial.

FIGURE 4.2

FIGURE 4.2

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Policies and Procedures 4.4C Inspection of Shipments

Before signing for a shipment, a quick visual inspection of the cartons and/or pallets should be made. Any open, crushed, or otherwise damaged outer cartons should be noted on the carrier’s delivery receipt. Any shortage of total pieces should also be noted. Time permitting, small line-count orders should be inspected and compared to the packing list in the carrier’s presence. Therefore, if anything looks suspicious, it can be noted on the delivery receipt as well. In the case of damaged shipments, take pictures to support your claim. Shipments should be completely inspected within 24 hours of receipt. Claims for damaged or short products are difficult to support if not reported in a timely manner. Therefore, any loss or damage must be reported within 48 hours of receipt. Photos of damaged shipments should include condition of exterior product packaging, shipment packaging and damage to part (be sure to include Part number label and shipping label when able). Photos must be emailed to [email protected] within 48 hours of shipment receipt. Complete inspection of parts/shipment must be made prior to delivery to a third party. Once a part/shipment is transferred to third party location, reported damage will not be covered.

4.4D Returning Freight to the PDC

For information on receiving credit for damaged or incorrect parts, please refer to Section 6.3D – Credit for Discrepant Parts. Freight charges for parts returned for credit are the responsibility of the Dealer unless prior approval by Hino Motor Sales PDC. When damaged/incorrect parts are returned at the PDC’s expense, prior approval must be obtained and return carrier information will be provided by the Warehouse Manager or Customer Service. The PDC has negotiated preferred pricing for specific carriers; therefore, using unapproved carrier will result in freight charges being billed to the Dealer. The PDC will not accept “Collect” shipments. If the dealer is paying for the freight on a return, such as Annual Returns, the dealer may choose any carrier it prefers.


18


5.1 Introduction This section covers the invoicing process and the information that HMS sends the dealers in the parts purchase process:

1. Parts Batch Order Confirmations/Order Acknowledgments 2. Parts Invoices 3. Parts Packing Slips 4. On-Line Parts Statements 5. Mega-Fleet Credits

5.2 Parts Batch Order Confirmations/Order Acknowledgments

Once HMS accepts a dealer order into its Hino Enterprise System (HES), a Batch Order Confirmation report is generated and e-mailed to the dealer. The Batch Order Confirmation, which is shown in Figure 5.1, has the following data:

1. Customer #: Your HMS dealer code 2. Order Date 3. WH: Warehouse from which the order will be shipped (M1 is the Hino National Parts

Distribution Center (PDC) in Southaven, MS) 4. Reference: This is your order number. Please use this number when asking HMS

Customer Service about the status of an order. 5. Order Type: Stock, Emergency, or VOR 6. Item Ordered: Part number ordered with the description underneath Quantity

Ordered 7. Quantity Ordered 8. Item Supplied: If the part number supplied is different from the part number ordered

(due to supersession or other reasons), this number will be different from the Item Ordered.

9. Line #: Line item on the order 10. Quantity Shipped: Quantity allocated for picking and shipment 11. Status: Status of order line (Picking - if allocated for picking, Taken - if not allocated

for picking) 12. Type: Normal - if allocated, Backordered - if on backorder 13. WH: Warehouse from which the specific line item will be shipped (M1 for National

PDC)

Section 5 Invoicing

19


The order is not yet invoiced at this stage. The Batch Order Confirmation simply tells dealers that their Hino Parts order has been received by HMS. Any questions about Batch Order Confirmations should be addressed to HMS Customer Service at (866) 372-HINO (866-372-4466).

FIGURE 5.1

20


5.3 Parts Invoices Once an order has been picked and shipped, HMS provides a Parts Invoice. This invoice only covers the parts on that order that have been shipped, not the backordered parts. Parts invoices are e-mailed immediately upon the shipment confirmation of an order. 5.3A On-Line

Order status may be checked on-line by using the DC217 –Order Inquiry screen in the DCS. Orders that have been invoiced can be determined by:

1. The Order Status (“Sts” in the upper right corner of the screen) is “I”. 2. The Invoice Number (“Invoice No.” in the top middle of the screen) has a

number with a prefix of “5”. 3. The Confirmation Number (“Conf #” near the center of the screen) has the

tracking number of the shipment.

5.3B E-Mail Once an order is ship-confirmed by HMS, a copy of the Parts Invoice is immediately e-mailed to the dealer. The Parts Invoice (Figure 5.3) contains the following fields:

1. Invoice Number: Use this number when contacting HMS with any questions regarding a specific Parts Invoice. 2. Transport Company: Carrier on which the order was shipped. 3. Tracking Number: Carrier tracking or pro number 4. Customer PO: The dealer’s purchase order number

FIGURE 5.2

21


5. Invoice Date 6. Bill-to Location: Dealer Code and address 7. Ship-to Location: Company and address to which the parts were shipped. 8. Remit-to Location: Location to which the dealer should send payment 9. Part #: Part number shipped with description beneath. (If the part shipped

differs from the part ordered due to a supersession or another valid reason, the “Ordered Part” will be printed below the shipped part.)

10. Quantity Shipped 11. Quantity Ordered 12. Unit Price: The price charged (Dealer Net) at the time the order is shipped. 13. Extended Price: Quantity Shipped x Unit Price 14. Extended Price Total: Grand total of the invoice

Payment terms for Hino Parts Invoices are Net 30 unless otherwise noted. Any questions about the status of Hino Parts Invoices may be addressed to HMS Customer Service at (866) 372-HINO (866-372-4466).

FIGURE 5.3

22


5.4 Parts Statements Parts Invoices are included in the monthly Parts Statement. Copies of the monthly Parts Statement are e-mailed to dealers each month. Parts Statement Transactions can also be viewed on-line by accessing the DC215 – Accounts Inquiry screen in the DCS. Specific instructions on how to use this screen are in the DC215 section of the Hino Enterprise System – Dealer Connect Parts Module Training Manual. Specific questions about a dealer’s Parts Statement should be addressed to HMS Finance and Accounting (See Section 10 – General Contacts). Payment terms for Hino Parts Invoices are Net 30 unless otherwise noted.

5.5 Mega-Fleet Credits

Mega-Fleet invoice credits are sent to dealers on a weekly basis. Reimbursement is done in the form of a weekly check. Mega-Fleet invoice numbers issued by the Corcentric system are referenced on the weekly check. Further information about the Mega-Fleet Program and the claim process using the Corcentric system are detailed in the Hino Mega-Fleet Website Training Manual (LT-0011).

23


6.1 Introduction

6.1 Introduction This section describes Hino’s policies and procedures regarding parts returns from Hino’s Dealers:

1. Core Return Policy 2. Core Return Request Process 3. Parts Discrepancy Returns 4. Semi-Annual Parts Returns 5. Initial Dealer Kit Returns 6. Dealer Termination Returns

6.2 Core Returns

6.2A Core Return Policy

All dealers have 365 days from purchase of a remanufactured part to return the core for full credit with no penalties. Expired cores are subject to approval for return with a 20% processing fee applied. The 365 day return limit does not apply to core charges incurred on initial dealer stock order or NEW product pushed parts. Remanufactured parts are becoming a more important part of our business. This policy allows you to stock Hino remanufactured parts with confidence, while ensuring a steady flow of cores to support the growth of our remanufactured product lines. Eligible cores must be returned in original packaging with appropriate labeling. Cores are subject to inspection. Please refer to Hino Core Acceptance guide.

6.2B Return of Warranty Cores

There are occasions when HMS Warranty will request specific core parts used in warranty repairs for failure analysis and claim settlement. In these cases, the following process must be followed In order for the dealer to receive core credit from HMS:

1. All exchange item core returns must be tagged with a completed Warranty Material Tag.

2. All exchange item core returns should be returned in the original

component’s box/packaging. 3. All exchange item core returns should be returned as removed condition

(no repairs or product disassembly).

4. Returns Requested Prior to Claim Payment: Parts designated for shipment to warranty department must be sent through the FedEx Shipping Program. No return core filing is needed in DC209. All exchange items returned for warranty review will be shipped to the following location:

Section 6 Returns

24


Hino Warranty Department 37777 Interchange Drive Farmington Hills, MI 48335

All core reimbursements will be processed through Dealer Connect by Hino Warranty Department and credit will appear on Dealer Parts Account, according to standard Time-line and acceptance process. 6.2C Payment of Core Credits

When the returned core is received by HMS, the dealer will be e-mailed a credit note (Section 5.3 – Parts Invoices), and the credit will be reflected on the dealer’s monthly statement (Section 5.4 – Parts Statements).

6.3 Parts Discrepancy Returns

6.3A Terms for Returning Discrepant Parts

Parts discrepancies may be claimed for credit up to 60 days from the purchase date of the parts. Claims will not be accepted for parts purchased over 60 days. All parts returned must be in new and saleable condition and in the original package or carton. Parts not meeting these guidelines will be returned to the dealer freight collect.

6.3B Process for Claiming Discrepant Parts

Credit for discrepant parts may be claimed by using the DC203 – Request for Credit & RMA screen in the DCS. Specific instructions for on-line filing are in the DC203 section of the Hino Enterprise System Dealer Connect Parts Module Training Manual. Credit Reason Codes should be as accurate as possible. For a list of credit reason codes please refer to Addendum section of this manual. Addendum # A 6.3B

When your return request has been authorized by HMS, you will be e-mailed a Hino Parts Credit Return Approval Form (Figure 6.5). This form should be attached to your returned parts as a packing slip. Failure to enclose this packing slip will delay processing of your credit.

25


6.3C Return of Discrepant Parts

To return discrepant parts, attach a copy of the Hino Parts Credit Return Approval Form as your packing slip and ship the returned parts prepaid freight to: Hino Motor Sales U.S.A. 8425 Airways Blvd., Suite 101 Southaven, MS 38671 Please make sure a copy of your Hino Parts Credit Approval Form is enclosed with your parts. Failure to do so will delay the processing of your credit.

6.3D Credit for Discrepant Parts

Once the parts have been received, you will be e-mailed a Hino Parts Dealer Credit Print Report (Figure 6.6). This is your credit memo. This credit will also appear on your monthly Parts Statement (Section 5.4).

FIGURE 6.5

26


Depending on the reason for the return, a 15% handling charge may be assessed. In general, returns that are considered the fault of HMS or its transportation carriers will have no handling charge. Returns due to customer, dealer order cancellation, refusal, or order error will be assessed the 15% handling charge. ALL MAKES part returns approved by vendor will incur the handling charge assessed by the vendor.

6.4 Annual Parts Returns

The Annual Parts Return program is designed to assist HMS dealers in the proper adjustment of their parts inventory to the ever-changing requirements of the market. For this return period, the eligible dollar value of the dealer’s annual parts will be calculated based on the stock purchases for the last twelve months. The eligible dollar value of the return is limited to 8% of the dealer’s parts stock purchases within the last twelve months, exclusive of core charges. Core charges are not included in dealer’s eligible purchase value. HMIPD’s will be subject to 3% return limit (total annual stock orders at dealer net value) on all parts purchased. Returns are subject to a 10% restocking fee.

FIGURE 6.6

27


The following policies and procedures apply:

Items that are not eligible for return include: Obsolete parts (parts no longer purchased by HMS); special order parts; glass; hoods; manuals and catalogs; parts that have been previously installed or taken off vehicles. Parts with a grade of D, E, F, X or Z are not eligible for credit and should not be returned. Dealers are responsible for thoroughly inspecting the return list prior to return. HMS will review the list provided by each dealer. The non-eligible parts will be scrapped, and no credit will be issued. Glass products will not be accepted for credit.

Dealer return shipments must be entered by the expiration date posted in the DC206 – Dealer Buyback Entry screen. Returns must be shipped by February 28th and received no later than March 15st. If the parts are not received by March 31st (31 days from expiration date) the return will be rejected and cancelled. The expiration date will appear in the line item entry screen (Figure 6.10). In order for HMS to accept returns, all parts must have been purchased originally from HMS, be in new and resalable condition, properly identified, and in the original packaging.

The dealer’s parts must be shipped freight prepaid to the Memphis PDC: 8425 Airways Blvd Southaven, MS 38671. The return shipment must be properly packaged or crated. Return shipments showing signs of damage, due to poor packaging, will be rejected, no credit will be issued, and parts will be scrapped.

With the implementation of the new Hino Enterprise System, Annual Returns are more self-servicing. Refer to the DCS training manual section DC206 for detailed instruction on processing Annual return requests.

6.5 Initial Dealer Kit Returns

HMS provides its new dealers with a list of parts required to meet service expectations of Hino Trucks. We are committed to making sure all of our dealers have adequate parts supply, and assist new dealers with balancing their inventory. After a new Hino dealer has been in operation for more than 18 months, HMS may, at its sole discretion, accept returns of the initial stocking order provided the two following conditions are met:

1. The dealer has, in the judgment of HMS, effectively utilized its annual return allotment for the previous period.

2. The dealer places an offsetting Hino Parts order of equal or greater dollar value.

The following rules will apply when returning these parts:

1. The request for return must be received within sixty (60) days after the 18 month period has expired.

2. The return list must be sent to HMS for approval. The dealer will enter it into the DCS through menu option “DC226 – Miscellaneous Return” after approval.

3. Parts shipped to the PDC without approval will be returned freight collect. 4. Parts to be returned must be received at the PDC no later than thirty (30) days from the

date of approval. 5. All parts must be in new, saleable condition and in the original package or carton. 6. All parts must be shipped to the PDC freight prepaid. Collect shipments will not be

accepted. 7. Returns will be credited at Dealer Net Price (DNP) at the time of original invoice.

28


The dealer must submit a list of parts to be returned and a proposed offsetting order for prior approval by HMS.

6.6 Dealer Termination Returns In case of a Dealer Termination, parts and accessories may be returned for credit based upon the following rules:

1. The return will be credited at DNP less 20% re-stocking charge. 2. The dealer will enter the return into the DCS through menu option “DC226 –

Miscellaneous Return” upon approval from HMS.

3. Parts shipped to the PDC without approval will be returned freight collect. 4. Parts to be returned must be received at the PDC no later than thirty (30) days from

date of termination. 5. All parts must be in new, saleable condition and in the original package or carton. If

not, no credit will be issued. 6. All parts must be shipped to the PDC freight prepaid. Collect shipments will not be

accepted and will be returned freight collect to the dealer.

Dealers terminating their Hino franchise must receive prior approval and instructions from the Parts Marketing & Sales Manager before returning the parts.

29


7.1 Introduction This section describes Hino’s policies and procedures regarding parts warranty terms and claim processing. Specific details about the warranty process are covered in the Hino Trucks Warranty Manual (Publication Number WPPM0104).

7.2 Parts Warranty Policy/Terms

If a Hino manufactured replacement part fails due to materials or workmanship and is purchased after the vehicle warranty period has expired, the part is warranted for 12 months/unlimited miles from the date of purchase except where specifically noted. If the part was installed by an authorized Hino dealer, the labor to replace the part is also covered except where specifically noted.

7.3 Parts Warranty Claim Processing

Warranty claims for Hino Parts, except for the cases listed below, are to be filed using the Dealer Connect Warranty Module. Instructions on the process for filing claims are detailed in the Hino Trucks Warranty Manual (Publication Number WPPM0104). Exceptions to this process are as follows:

1. Allison Transmissions are warranted through Allison Transmission. Contact the Allison

dealer you purchased the transmission from for warranty assistance. 2. Clarion Radio Parts are warranted through Clarion for 12 months/unlimited miles. Call

(800) 347-8933 for warranty assistance. 3. Pacbrake Exhaust Brakes are warranted through Pacbrake for 12 months/unlimited

miles. Contact Pacbrake at (800) 663-0096. 4. Bendix Brake Parts are warranted through Bendix for 12 months/unlimited miles. Call

Marcela at 440-329-9000 for warranty assistance. 5. Arvin Meritor Parts are warranted through Arvin Meritor for 12 months/unlimited miles.

Contact Arvin Meritor at (800) 535-5560. 6. Global Vehicle Systems Air Deflectors are warranted for 5 years/unlimited miles. This

warranty covers parts replacement only. Contact HMS Warranty for claim assistance.

7.4 Contacts Any questions about Hino Parts Warranty can be addressed by the HMS Warranty Department. Please refer to Section 10 – General Contacts for contact information.

Section 7 Parts Warranty

30


8.1 Introduction 8.1 Introduction

This section describes Hino’s policies and procedures regarding the pricing process, including the pricing levels and updates.

8.2 Pricing Levels

Hino Trucks publishes pricing at the following levels:

1. Dealer Net – Your dealer cost for all standard stock, emergency, or VOR orders 2. Suggested Mega-Fleet 3. Suggested Fleet 4. Suggested List 5. Core Charge (for remanufactured or exchange parts)

These pricing levels are displayed in the DC210 – Item Stock & Order Inquiry screen in the DCS (Figure 8.1).

Section 8 Pricing

FIGURE 8.1

31

Policies and Procedures Dealers are charged the Dealer Net Price that is in effect at the time of order placement. For purchases of Hino Remanufactured Parts, the dealers are charged the Dealer Net Price plus the Core Charge. Dealers are reimbursed for the Core Charge upon receipt of the returned core parts to HMS, provided that the core meets HMS core acceptance guidelines (Section 6.2 – Core Returns). All prices are subject to change without notice.

8.3 Pricing Updates HMS provides monthly price file updates to selected dealer servicing systems companies. The monthly price file updates include the following:

1. Current Part Number 2. Old Part Number (where applicable)

• In case of a supersession from a previous part number – this is also reflected in the “Old #” field on the DC201 – Build a Stock Order screen in the DCS.

3. Description 4. Package Quantity (where applicable)

• Certain parts are only sold in package quantities. 5. Dealer Net Price 6. Suggested Mega-Fleet Price 7. Suggested Fleet Price 8. Suggested List Price 9. Core Charge (where applicable)

Dealer questions regarding Hino price information on their internal business management systems should be addressed to their respective dealer servicing systems companies. HMS will send a copy of its most recent pricing file (in either Excel or Text Format) to dealers upon request. Contact HMS Parts Marketing & Sales (Section 10 – General Contacts) for more information.

8.4 Pricing Actions

HMS is committed to providing quality parts at competitive prices to its dealers and customers. However, business conditions occasionally make it necessary to adjust pricing on a significant number of items. HMS is committed to providing its dealers adequate advance notice of any pricing action affecting a significant number of items. Information about major pricing actions affecting a significant number of items will be communicated to dealers and dealer servicing systems companies no less than thirty days in advance of the pricing action. HMS reserves the right to change pricing on any or all of its parts at any time without notice and without obligation.

32


The following publications are available from HMS as resources to help you more effectively sell Hino Parts. You may order copies at www.Hinonet.net

Number Description LT-0001 Hino Air Deflector Flyer LT-0002 Hino Genuine Oil Flyer LT-0003 Hino LLC Coolant Flyer

LT-0004 Hino National PDC Flyer LT-0005 Hino Remanufactured Parts Flyer LT-0006 Hino Filter Kits Flyer LT-0007 Hino Enterprise System Dealer Connect Training Manual

(Binder) LT-0008 Hino Quick Reference Guide 1984-1997 (PDF) LT-0009 Hino Quick Reference Guide 1998-2003 (PDF) LT-0010 Hino Quick Reference Guide 2005-2007 LT-0011 Hino Mega-Fleet Website Training Manual LT-0012 Hino Parts Policies & Procedures Manual

Section 9 Publications

http://www.hinonet.net/

33


10.1 General Numbers

Customer Service Toll Free Line (866) 372-4466 Direct Dial – General (662) 342-3939 Direct Dial – Fax (Customer Service) (662) 342-5151 Dealer System Support Help Line (248) 699-9400

10.2 Direct Contacts and Responsibilities

10.2A Customer Service Representatives (Primary contacts for questions regarding order entry, order status, parts price and availability, and general parts inquiries)

• Jim Alexander Ext. 6030 • Tara Person Ext. 6032 • Carl Whitten Ext 6033 • Karen Kemp Ext. 6035 Customer Service Supervisor

10.2B Parts Technical Support (Primary contact for questions regarding parts technical support and Hino Electronic Parts Catalog)

• Jamie O’Neal Ext. 6031 10.2C Parts Marketing & Sales

(Primary contacts for questions regarding parts pricing policies, marketing programs, and sales promotions)

• Tim Wenger 248-699-9374 Product Development Manager- Parts • Tom Hoffman 248-699-9322 Regional Manager, Parts Sales

10.2D Parts Materials

(Primary contacts for questions regarding parts catalog information, parts supersessions and interchange, the semiannual dealer parts return program, and vendor managed inventory)

• Jack Godwin Ext. 6045 • Michael Haney Ext. 6044 • Lynn Brown Ext. 6043

10.2E Parts Warehouse Operations

(Primary contacts for questions regarding delivery cycles, carrier selection, freight charges, shipment accuracy, and shipment quality)

• James Sain Ext. 6051 • Richard Brown Ext. 6054 • Kavaraceus Smith Ext. 6052

10.2F Senior Manager, Parts Operations (Primary contact for all PDC Parts operations)

• Rick Gadd Ext. 6040

Section 10 General Contacts

34

Policies and Procedures 10.2G Vice President, Parts and Logistics Operations

(Primary contact for policies, procedures, systems, and overall performance of the Parts Division)

• Bob Petz 248-699-9350

10.3 Other Key Contacts

10.3A Warranty (Primary contacts for all Hino warranty questions)

• Kalmer Urm (248) 699-9388 • Chad Stuber (248) 699-9353

10.3B Accounting & Finance

(Primary contact for all questions regarding monthly parts statements and miscellaneous credits and debits)

• Annie Montgomery (248) 699-9343 (Secondary contact)

• Jennifer Presher (248) 699-9348

35


11.1 Electronic Parts Catalog (EPC)

11.1A Installation All new dealers will receive an Electronic Parts Catalog (EPC) CD approximately two weeks before formal installation. To use the EPC, the dealer must first load the program on their computer or server and follow the commands for installing the EPC. Any dealer questions about EPC installation may be addressed to HMS Customer Service at (866) 372-HINO (866-372-4466).

11.1B Updates Snap-On Business Solutions updates the EPC quarterly and sends the updated version in CD-ROM format to the Dealer Parts Manager. The Dealer Parts Manager is responsible for installing the updated version. Any dealer questions about EPC installation may be addressed to HMS Customer Service at (866) 372-HINO (866-372-4466).

11.1C Licensing Every computer that has the EPC downloaded must have a license. The dealership pays a monthly fee to HMS that includes the EPC, DCS, and HinoNet. A dealer can have up to 16 licenses for the EPC at no additional charge. After the EPC has completely downloaded, a license request must be created. To obtain a license, a dealer must complete the following steps:

1. Go to start and click on all programs. 2. Then, click on Snap-On Product Licenser.

3. A screen will appear labeled License Information.

4. Click on Create License (Figure 11.1).

Section 11 Parts Technical

36


5. Next, click on Request License Key (Figure 11.2).

FIGURE 11.1

Click Create License

Click Request License Key

37

Policies and Procedures 6. Highlight Hino, then click OK (Figure 11.3).

7. In the next screen, you will be prompted to print the License Request. 8. Fax this License Request to (662) 342-5151.

Once a Customer Service Representative faxes you a License Key Number, you will need to repeat steps 1 – 4. Then, complete the steps below:

FIGURE 11.2

FIGURE 11.3

Highlight Hino and click OK.

38


9. After step 4, a small box labeled Create License will appear. Click on Enter License Key (Figure 11.4).

10. Next, highlight EPC, US Price, and VIN and click the add button (Figure

11.5). 11. On the same screen, enter the License Key Number and the Expiration Date

that was faxed to you (Figure 11.5).

12. Then, click OK.

FIGURE 11.4

Click Enter License Key and click OK.

39


Note: All information entered must be the same information received from HMS, or an error message will appear, and the license will not work.

11.2 General Parts Technical Information

HMS will periodically publish Hino Parts Technical Bulletins detailing information about the following:

1. General Parts Technical information 2. Specification changes 3. Applications

These bulletins will be sent to the appropriate dealer personnel via mass e-mail and fax. Copies of these bulletins are also archived on the HinoNet intranet website (www.hinonet.net) in the Parts/Parts Documents section.

Dealer personnel who wish to be added to the distribution of Hino Parts Technical Bulletins should contact Karen Kemp Customer Service Supervisor at [email protected].

FIGURE 11.5

Highlight EPC, US Price, & VIN and click the Add button.

Enter License Key here.

Enter Expiration Date here and click OK.



40

Policies and Procedures Section 12 Parts Marketing Alerts HMS will periodically publish Hino Parts Bulletins detailing information about the following:

4. New or highlighted products and programs 5. New or revised parts policies and procedures 6. Parts marketing and sales promotions 7. Price changes or updates 8. General Parts Business information

These bulletins will be sent to the appropriate dealer personnel via mass e-mail and fax. Copies of these bulletins are also archived on the HinoNet intranet website (www.hinonet.net) in the Parts/Parts Documents section. Dealer personnel who wish to be added to the distribution of Hino Parts Bulletins should contact Tom Hoffman, Senior Manager, Parts Sales at [email protected]



41


DATE:

Page:

SHIP FROM

Dealer

Bill of Lading Number:

Customer PO Number: Address: City/State/Zip: TEL: FOB:

SHIP TO CARRIER INFORMATION:

Name: NEO BRAKE Systems ABF Freight Systems

800-610-5544 Contact to schedule pick up.

Address: 6881 SOUTH 10TH STREET

City/State/Zip: OAK CREEK, WI 53154 CID#: FOB: Attention

FREIGHT CHARGES BILL TO: Name: Hino C/O Tech Traffic

3RD PARTY BILLING Address: 30 Hemlock Drive City/State/Zip: Congers, NY 10920 Attention:

CARRIER INFORMATION HANDLING UNIT

GROSS H.M. COMMODITY DESCRIPTION LTL ONLY

QTY TYPE WEIGHT (X) Commodities requiring special or additional care or attention in handling or stowing must be so marked and packaged as to ensure safe transportation with ordinary care. NMFC # CLASS

Pallet(s) Truck Parts, NOI I/S 19160 Sub2

GRAND TOTAL

SPECIAL INSTRUCTIONS: For help in chemical emergencies involving spill, leak, fire, or exposure, call CHEMTREC toll free: 1-800-424-9300 day or night. (Alaska, Hawaii,

Puerto Rico call (202) 483-7818). TECHNICAL CONTACT (800) 831-9889.

Freight Charge Terms:

Where the rate is dependent on value, shippers are required to state specifically in writing the agreed or declared value of the property as follows:

COD Amount: $__________________ “The agreed or declared value of the property is specifically stated by the shipper to be not exceeding __________________ per ___________________.”

NOTE: Liability Limitation for loss or damage in this shipment may be applicable. See 49 U.S.C. � 14706(c)(1)(A) and (B). RECEIVED, subject to individually determined rates or contracts that have been agreed upon in writing between the carrier and shipper, if applicable, otherwise to the rates, classifications and rules that have been established by the carrier and are available to the shipper, on request. The shipper

42


SHIPPER SIGNATURE / DATE Trailer Loaded: Freight Counted:

CARRIER SIGNATURE / PICKUP DATE This is to certify that the above named materials are properly classified, packaged, marked and labeled, and are in proper condition for transportation according to the applicable regulations of the DOT.

By Shipper

By Driver By Shipper By Driver/pallets said to contain By Driver/Pieces

Carrier acknowledges receipt of packages and required placards. Carrier certifies emergency response information was made available and/or carrier has the DOT emergency response guidebook or equivalent documentation in the vehicle.

Addendum # A 6.3B Credit Reason Codes BONR Backorder not required Use when a backordered part is received but is no longer required.

Note: This code is subject to a restocking fee and return of part may not be allowed if part is SPECIAL ordered and deemed non returnable.

CAIN Catalog incorrect Use when part was ordered based on information provided in EPC or Parts catalogs and the information was incorrect. Note: Complete VIN must be included in message text.

CMPG Parts replaced by Campaign Use only in special circumstances when authorized by Hino PDC. CORE Core return

To be used when requesting return of item core. I.e.: Starters, Alternators and Brake shoe cores, etc.

CPDA Carrier Problem Damaged To be used when part is received damaged due to freight carrier. Items received damaged in shipping. Example: package damaged or crushed Note: This code requires damage to be documented on shipping receipts and documentation must be presented when requested. Photo documentation should be available upon request.

CPUD Carrier Problem Undamaged To be used when part is no longer required due to delivery of part was delayed by carrier. Examples: lost shipment or late delivery.

CRCA Customer refused/Cancellation To be used when customer cancels order of part after part has shipped or refuses part when received.

DEFP Defective part To be used when part is received defective. Not damaged due to Carrier problems. Example: Exterior packaging is not damaged but part is defective inside packaging. This code cannot be used if part has been installed. Installed parts found to be defective must be submitted through Hino Parts Warranty. Note: photo documentation of defect may be requested and should be available upon request.

43

Policies and Procedures DWIC Damaged with item core

To be used when part received is damaged and has a core charge applied. Not damaged due to Carrier problems. Note: photo documentation of damage may be requested and should be available upon request. Credit Reason Codes Continued.

DWOC Damaged without item core To be used when part received is damaged and is not a cored item. Not Damaged due to Carrier problems. Note: photo documentation of damage may be requested and should be available upon request.

FRAL Freight Allowance To be used when requesting freight reimbursement. Freight reimbursement requires prior approval by Hino PDC and if submitted with a part return must be included on part return RMA. Note: Return freight must be approved before parts are returned to Hino PDC.

IDNW Interchange did not work To be used when part is superseded and interchanged part number does not work on unit.

IPIP Incorrect part in package To be used when part received is labeled with correct part number information, (both part label and shipping label have the same information), but the part in package is not the correct part. Also see MMPT

MDPM Misinformed by DPM To be used when information provided by DPM (District Parts Manager) was incorrect. MIBH Misinformed by Hino Motor Sales

To be used when information received by a Customer Service Representative of Hino Motor Sales (PDC) was incorrect.

MMPT Mismarked part To be used when part received is labeled with correct part number information, (both part label and shipping label have the same information), but the part in package is not the correct part. Also see IPIP

MTSM Misinformed by TSM To be used when information provided by TSM (Technical Service Manager) was incorrect. OENR Ordered in Error not required To be used when part was ordered in error and is not required. RWPN Received wrong part number To be used when part number ordered is different than part number received. SEWL Shipped in error Wrong location

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Policies and Procedures To be used when part shipped to incorrect location or shipped in error.

Example: part order cancelled but shipped anyway or if requested to ship to specific address, yet shipped to different location.

SSBP Short Shipped but Billed Part To be used when part is billed on invoice and packing list shows shipped, but part not received. Item quantity received short.