Supplier Requirements

The topics in this section describe requirements that companies must meet in order to be PACCAR suppliers.

Specifications

PACCAR suppliers are required to conform to all stated specifications. Current PACCAR Corporate, Truck Division and PACCAR Parts Specifications are maintained on the Supplier Portal, suppliers should refer to this site for the most recent versions of these standards. Updated specifications and part drawings are communicated to PACCAR suppliers by the Purchasing Manager through the PACCAR Purchasing System.

PACCAR suppliers are also required to comply with all applicable government standards such as the Federal Motor Vehicle Safety Standards.

Six Sigma

PACCAR suppliers play an important role in providing quality trucks and products to our customers. Suppliers are welcome to participate in PACCAR's Six Sigma training. Suppliers are encouraged to work with PACCAR on joint quality projects and develop their own company wide Six Sigma programs.

APQP

Suppliers are expected to follow the Advanced Quality Planning Process and work closely with the PACCAR through the product development life cycle.

ISO/TS Compliance

PACCAR requires all suppliers to be in compliance with IATF 16949 Quality System Requirements published by the Automotive Industry Action Group, Detroit MI (www.aiag.org). Interested Suppliers can contact PACCAR Purchasing regarding potential business and Quality System Requirements.

Warranty

PACCAR requires suppliers to provide high quality products which are warranted to be free from defects in materials and workmanship.

PACCAR requires suppliers to accept full responsibility for their product, including accountability for product performance. Warranty commitments are contained in the PACCAR Supplier Warranty Support Agreement. This agreement establishes a supplier's level of support for material cost, labor, time/mileage, and extraordinary warranty/policy considerations. It also includes product recall/repair programs and reimbursement schedules and defines warranty administration and technical support.

PACCAR reviews warranty commitments, levels of warranty claims, and actual demonstrated support levels when evaluating suppliers.

NAFTA Compliance

PACCAR Suppliers are required to provide NAFTA Certificates of Origin for each qualifying part supplied prior to shipment of parts. NAFTA Certificates of Origin must be submitted annually, effective from January 1 through December 31. NAFTA non-qualifying parts must be identified and their country of origin provided.

Conflict Minerals

PACCAR strives to ensure that the minerals in our products come from conflict-free sources. PACCAR requires its suppliers to perform the necessary due diligence to determine if the minerals used in their products are from conflict-free sources. Upon request, the supplier will share information with PACCAR to meet our legal requirements, and implement the required sourcing changes to become “conflict-free”.

Supplier Performance Management (SPM)

Suppliers are encouraged to participate in PACCAR’s Supplier Performance Management Program. SPM is a comprehensive process to manage and align supplier annual goals and action plans to PACCAR’s needs. The program also provides a structure to enhance the engagement of supplier internal teams and executives with their counterparts across PACCAR and to improve supplier accountability within PACCAR.

Financial Statements

PACCAR suppliers are expected to make their Annual Financial Statements available to PACCAR Purchasing for review of their financial position. Periodically, a more frequent or in-depth review of a supplier's financial position may be requested. PACCAR suppliers are encouraged to forward these statements on a consistent basis to the Controller of PACCAR Purchasing.

Proprietary Information

PACCAR suppliers are required to sign a Non-Disclosure Agreement prior to the transfer of proprietary information.

Proprietary information includes, but is not limited to, drawings, specifications, graphics, statistics, correspondence, and all information which is identified as confidential.

Production Parts Approval Process

All PACCAR Divisions require compliance to the automotive and truck Production Parts Approval Process (PPAP). See the Truck OEM specific PPAP Process Requirements in the PPAP manual, which is available from Automotive Industry Action Group (AIAG) at www.aiag.org.

PACCAR suppliers are required to verify compliance to the design record for any new or revised product or for any significant process changes (see PPAP manual for guidelines). Verification must be completed prior to shipment of production parts. PACCAR Supplier Quality will issue a PPAP notification specifying submission level, location, and due date.

Any questions regarding the PPAP process may be directed to the PACCAR Supplier Quality representative at the appropriate PACCAR division.