Common use of SUPPLIER SELECTION PROCESS Clause in Contracts

SUPPLIER SELECTION PROCESS. 5.1 SOURCING PROCESS The sourcing process is conducted by cross-functional teams and is linked to the qualification process to get the feasibility commitment from suppliers before final supplier(s) selection. The supplier selection process consists in the following steps: Step 1: When new parts are to be sourced and potential suppliers are identified, Vitesco Technologies’ Purchasing representative forwards the Request for Quotation (RFQ) to Supplier. With the RFQ, Supplier receives a package with different documents (e.g. quality requirements, contracts, supplier component review template etc.). Step 2: Based on the feedback in the RFQ, Supplier is pre-selected for sourcing and negotiation starts. Step 3: Vitesco Technologies initiates a supplier component review (SCR) with pre-selected suppliers. Within this meeting, the feedback of supplier in the “supplier component review template” is discussed. Step 4: Based on the outcome of such SCR, the final suppliers are selected for sourcing.