Standard Supply Chain Management (SCM) Requirements of Production Material Suppliers Questions should be directed to

1. Standard Supply Chain Management (SCM) Requirements of Production Material SuppliersQuestions should be directed to scmsdd@chrysler.com As of June 2013

2. Supplier Delivery Performance Expectation A supplier’s delivery performance should be transparent to all Chrysler operations and organizations. This means that material: • arrives on time and • arrives with the right quantity and • arrives via the designated delivery method. If an issue is identified, the supplier should resolve it with as little intervention from Chrysler as possible. The supplier must proactively notify Chrysler of any issue that will impact Chrysler’s ability to build product. In those cases, the supplier must demonstrate a sense of urgency and already have begun implementing problem resolution steps. How do suppliers achieve this?

3. Chrysler Supplier Delivery Requirements Suppliers to Chrysler need to: • Register for the Chrysler Supplier Portal in Covisint, designate responsible user for SCM specific systems / applications, and establish their access to each. • Provides access to Chrysler systems / applications each supplier is required to down-load & use as part of their delivery process. • Establish an EDI X12 Interchange. • As part of a Chrysler standard requirement of suppliers, an Electronic Data Interchange (EDI X12) communication link  is required to be established by all new suppliers within 30 days after a PO is received. Chrysler designates which transactions must be sent / received via this link. • Complete Supplier Training. • Suppliers and their representatives are required to complete training on Chrysler systems / applications. Training is provided via “self-serve” approach. • Complete and submit a MMOG/LE Self-Assessment. • All suppliers are required to complete a MMOG/LE Self-Assessment annually (by 3/31 unless deadline is otherwise set) and submit the scores into DRIVe. • Designate a Supplier Corporate Delivery Champion (CDC) – NEW as of October 2012 • Suppliers with multiple manufacturing and/or ship sites should assign a CDC who will be responsible for process standardization and/or leading delivery performance improvement initiatives across all associated manufacturing and ship sites. Please note that additional requirements may be communicated during the year as several delivery related strategy items are under development at this point.

4. I. Chrysler Portal in Covisint • Prerequisite: Register for the Chrysler Supplier Portal in Covisint & download SCM specific applications. • Reason: Provides access to: • Systems suppliers are required to use to conduct business / interact with all areas of Chrysler. • Reference materials, manuals, contact lists, etc. • 20 SCM items are integral to a supplier’s delivery success • (11 applications, 1 central web-site, 8 processes/standards) • SCM - Logistics • Logistics Portal (e-Leen). • International Shipping Process • Customs Process • SCM - SDRM • Supplier Material Requirement Tracking System (SMART). • Common Ship and Delivery Schedule (CSDS) or 862. • Chrysler Accounting & Material Procurement System (CHAMPS). • PC Portal II (under Supply Portal Scoreboard) • Premium Transportation Management (PTM). • Delivery Rating Improvement Verification (DRIVe). • Electronic Corporate Issue Management System (e-CIMS). • Supplier Delivery Development web-site • Non-NAFTA Supply Alarm Process • Supplier Proactive Delivery Issue Communication • SCM - CCMP&S • Capacity Management (Capacity Database & Volume Variance). • 830 Release (uses SMART). • Manufacturing – MLM, MHE, and Plant PC • Containerization Repository & Tracking Engineering System (CRATES) • Container Management System (CMS) • Pilot Ticket Process (uses PC Portal) • Material Labeling Standard & Packaging Standard • RDR Process (uses CHAMPS) Note: Additional applications may be necessary for other activity areas (i.e. Purchasing, Engineering, Quality, Corporate Accounts Payables, etc.) and are available via Covisint.

5. II. EDI X12 Interchange Prerequisite: Electronic Data Interchange (EDI) X12 Standardcommunication link. Reason: Automated Chrysler communication of pertinent & timely data for integration into Suppliers operational planning tools & systems to enable material delivery to Chrysler customer facilities and Supplier communication for integration into Chrysler systems to enable material tracking and payment. 12 EDI transactions are integral to a supplier’s delivery success.

6. EDI Message Reasons

7. III. Supplier Training • Prerequisite: Suppliers are required to complete training on Chrysler systems / applications. • Reason:Ensure supplier personnel is capable to utilize the tools. • Methods of training available: • Computer Based Training (CBT) FREE!! • Available on-line 24-7. • Completed at own pace. • Instructor Led A charge may apply! • Only available during Supplier Training Week (STW). • Suppliers register for / access training via www.chryslertraining.com. • 14 CBT’s cover SCM applications / processes. • Note: 1 CBT is accessed directly via the application itself (e-CIMS). Coming soon: Training Certification!!

8. III. Supplier Training (cont.) Supplier Resource Library • Additional support documents from supplier training week. • Currently 9 documents available. ** Please note all documents updated two weeks after supplier training week **

9. IV. MMOG/LE Self-Assessment • Prerequisite: • Each supplier location is required to complete a Material’s Management Operations Guideline / Logistics Evaluation (MMOG/LE) self-assessment and submit their scoring results into the DRIVe system. • Self-assessment score submission due date is on 3/31 annually. • Reason: • Identifies current level of performance / gaps in standard processes across 6 main operational areas with ultimate goal for supplier to resolve those issues, develop contingency plans, and AVOID any impact to end customer.

10. IV. MMOG/LE Self-Assessment (cont.) • Focuses supplier attention on SCM impact areas inclusive of: dealing with customer volume fluctuations, capacity constraints, Tier 2 capability, resource allocation, training gap, etc.

11. V. Supplier Corporate Delivery Champion (CDC) • The Supplier CDC should have a clear understanding of the Chrysler Supply Chain Management delivery requirements, and the SCM specific applications and processes and how they are used to interact with Chrysler. • Become focal point for supply chain specific issue resolution that is read-across to all locations. • Review delivery (DRIVe) performance for all Chrysler rated sites on a monthly basis and assist with corrective action implementation. • Understand how delivery performance is rated (in DRIVe and on EBSC). • Understand Chrysler’s specific MMOG/LE requirements (e.g. assessment deadline, submission process, etc.). • Ensure that the Supplier Profile Data system is updated at regular intervals for all supply chain specific contacts. • Ensure that their own contact information is updated, using Corp Delivery Champ contact type. • Work with the various Chrysler SCM team members in identifying areas for performance improvement.

12. Performance Measurement A suppliers performance from a Supply Chain Management perspective is measured in Chrysler’s Delivery Rating Improvement Verification (DRIVe) System: • Performance of production suppliers is measured in the DRIVe system at the manufacturing location level and converted into a Delivery Performance score. • There are 4 Major Performance Categories measured: • 65% for Delivery Conformance • ASN accuracy (timeliness & content) • Shipment performance to accum requirements (over & under) • Manual deductions (Pilot Tickets, Container Mgt, manual e-CIMS) • 35% for Response Conformance • 20% SMART / PC Portal II Ticket Response • 15% Capacity Management Response • Less points Based on # of CLS/D Occurrences • Less points Late MMOG/LE Score submission into DRIVe 100 % DRIVe Score (shown as a 6 month weighted average). DRIVe score makes up 20 points of Production suppliers External Balance Score Card(EBSC) score and is fed to that system on the 17th of each month. EBSC score is used by Purchasing in sourcing decisions.

13. How is the DRIVe score calculated? 65% Delivery Conformance is comprised of number of Delivery Counts and violations/100 for each category for each of the last 6 months minus manual deductions. 35% Response Conformance comprised of 20% SMART / PC Portal Counts and violations/100 15% Capacity Management Response. • # of ASN Violations • # of (OS) Violations • # of (US) Violations • Manual deductions • Pilot Tickets • Container Mgt. • Manual e-CIMS # of (ST) Violations # of (SQ) Violations Capacity Management • Less deduction for: • Each CLS/D occurrence • Late MMOG/LE submission

14. Overview of Supplier Delivery Performance Measurement (DRIVe)

15. Overview of Supplier Delivery Performance Measurement (DRIVe)

16. Overview of Supplier Delivery Performance Measurement (DRIVe)

17. Connecting DRIVe 6MWA Score to EBSC Delivery Score • EBSC is fed from the Delivery Rating Improvement Verification (DRIVe) System at the supplier manufacturing location code level. • DRIVe creates a file with data which feeds into EBSC as a frozen snap-shot in timeso that EBSC Delivery scores will reflect suppliers current delivery performance data as of the Thursday morning before the 19th of each month. • For the most accurate / up-to-date delivery performance information, suppliers will need to continue to use the DRIVe system. • Note: A separate EBSC Score Card is provided for Production and Service (MOPAR) suppliers.

18. Connecting DRIVe 6MWA Score to EBSC Delivery Score