The Toro Company
Supplier Manual
Last Updated: 09/17/2008 / © 2008 The Toro Company / Page 1Supplier Manual /
Introduction
In today’s global market place, customers have very high expectations and the competition for those customers is intense. Each year the competition gets stronger, and the customer’s expectations get higher. For Toro to continue to be the leader in our industry,meet our competitive challenges and provide the value and quality our customers demand, you as a supplier to Toro play an important role. As an essential part of the Toro supply chain, it is imperativethat you share in our commitment to quality and continuous improvement.
This Supplier Manual will provide a brief description of Toro’s business processes, quality processes, and an overview of Toro’s expectations of suppliers. As a supplier to Toro, you will be rated on your ability to meet these process requirements and expectations.
Toro Operations has included the following Vision statement in our Long Range Strategic plan to guide our future activities.
Operations Vision Statement: Provide high quality products and services that meet customer needs and company profitability for Toro and its suppliers. Develop a fully integrated supply chain where products are pulled through the system by retail sales. Promote an organization characterized by short lead time and process velocity, organized around value streams, within an environment that values all employees of Toro and its suppliers. Exhibit leadership to eliminate barriers and drive change by educating all employees on lean principles in order for continuous improvement to be inherent in all we do.
Last Updated: 09/17/2008 / © 2008 The Toro Company / Page 1Supplier Manual /
Table of Contents
Note: Hold down the Control Key and then click on the item of interest to go directly to that section. Then scroll up to the section header and Hold/Click on Table of Contents to return here.
1Agreement
1.1Application Review
1.2Non-Disclosure Agreement
1.3Scheduling Agreement......
1.4Supplier Terms of Commerce
1.5Warranty Agreement
2Business Processes
2.1Advanced Shipping Notice (ASN)
2.2Cost Avoidance and Cost Reduction
2.3Customs Compliance
2.4Customs-Trade Partnership Against Terrorism (C-TPAT)
2.5Delivery Requirements (JIT)
2.6Lean Supplier
2.7Requests for Quotation using eSourcing
2.8Tooling
2.9Restriction of Hazardous Substances (RoHS)…...………………………………………………6
3Communications
3.1Buyer
3.2ToroConnection Site
3.3Supplier Requirements for ToroConnection access
3.4Supplier Profile
4Engineering Processes
4.1Change Control
4.2Engineering Change Request
4.3Engineering and Design Standards
4.4Part Prints
4.5Revision Control
5Policy Statements
5.1Escort Policy
5.2Gift Policy
5.3Recovery Fees
5.4Supplier Conference Rooms
6Quality
6.1Approved Supplier List
6.2Certificate of Conformance Process
6.3Deviation from Specification (DFS) Process
6.4Quality Management System Requirements
6.5Quality Notification Process
6.6Quality Records and Documents
6.7Supplier Performance Evaluation Scorecard - SPE
6.8Advanced (Supplier) Quality Planning Requirements
6.9Toro Expectations for all products
6.10Supplier Development
7Resources and References
7.1Forms
7.2Tools
7.3Training, for Reference Only, not a Toro recommendation
7.4Websites for Reference Only, not a Toro recommendation
8Appendix
8.1Acronym List
8.2Quality Management System Requirements (reference elements from ISO 9000 & QS 9000 standards):
Last Updated: 09/17/2008 / © 2008 The Toro Company / Page 1Supplier Manual /
1Agreement
1.1Application Review (Updated5/14/08)
Toro may identify specific products or components that require an Application Review. This process is initiated during the design and discovery stage of the development cycle, during current product redesigns, or during transfer of production to a new supplier. The Application Review is intended to generate discussions between Toro and the supplier regarding proper application of the supplier’s component, toidentify / evaluate the potential major failure modes, and to generate suggestions to improve the design. This is the supplier’s opportunity to review Toro’s application of their component and then provide input to Toro. Input may include recommendations on design changes, material changes, clarification on appropriate usage or limitations on the application of the supplier’s component. A properly completed Application Review will prevent future warranty issues.
When used, the Application Review form will be presented to the supplier by the Toro Buyer. The Application Review form will document Toro’s intended application, the supplier’s specifications for the component, major potential failures modes and test data or agreements related to the review of the component application. The Application Review will documentthat Toro and the Supplier have reviewed the application and agreed with or without specific limitations this is a proper application of their component.
The Application Review form must be completed and signed before the identified part goes into production. The Application Review then applies only for the part and application for which it was completed. Once signed, the supplier agrees to consult with Toro in advance of implementing any changes in materials, design, manufacturing location or manufacturing of the component which may impact the fit, form or function. Application Reviews must be reviewed whenever there is a change to the component design or application.
1.2Non-Disclosure Agreement (Updated 12/7/01)
All Suppliers are required to sign a Non-Disclosure agreement with Toro. This requirement is intended to provide mutual protection against disclosure of proprietary and/or confidential information.
1.3Scheduling Agreement (Updated 5/17/05)
Toro uses a Schedule Agreement for the purchase of most production materials. These Schedule Agreements are based upon a negotiated price to cover a period of time (usually two years) based upon an estimated annual quantity. Requirements for individual delivery dates and quantities are communicated through separate delivery schedule reports for the assigned Toro plant location. Delivery information is available via Toro’s Supplier Extranetsite and it is the responsibility of the supplier to monitor delivery requirements through this extranet site.
The Schedule Agreement is not intended to be a firm quantity commitment and does not authorize fabrication or procurement of raw materials for the quantity being ordered. The JIT sheet is typically the governing document for component production and material shipments.
Changes are communicated with a Change to Schedule Agreement form. These are issued to address changes in the revision level, estimated quantity, or price change.
Discrete Purchase Orders are used to communicate a one time buy of product or tooling. They are firmed for a specific quantity with a specific due date.
Schedule Agreements (SAs) are available on ToroConnection (Toro’s supplier extranet site). The report,Purchasing Document Overview,on the Sourcing page, under the Sourcing Reports and Download section,will list all open SAs by the SA number. This SA number can then be entered in the Display Purchase Order & Scheduling Agreement field on the Sourcing pageto view the document.
1.4Supplier Terms of Commerce (Updated 5/23/05)
All Suppliers must review the Supplier Terms of Commerce document which will be provided by their Toro Buyer. This document outlines standard business practices regarding compliance with U.S. laws and regulations; Customs issues; country of origin documentation and marking requirements; child, convict, forced and indentured labor; human rights and the Fair Labor Standards Act.
After review of the document with the Toro Buyer, an officer of the Supplier’s organization must sign the Terms of Commerce to indicate they have read the terms and understand the conditions of doing business with Toro and return the signed original to your Toro buyer. Each attachment to the Supplier Terms of Commerce must also be completed and returned to your Toro buyer when applicable.
1.5Warranty Agreement (Updated 6/2/05)
The Toro Warranty Agreement is a condition of business for all new and existingToro Suppliers. We need your help to fulfill this requirement. These Warranty Agreements are intended to provide a mutual understanding and agreement between Toro and its Suppliers on the policies, requirements, and resolution process for any future claims.
A signed Toro Warranty Agreement is critical to ensure we mutually agree to specifics regarding reimbursement expectations should a supplied part defect, that impacts our customers, be determined to be the supplier’s responsibility. These reimbursement expenses may include replacement part costs at the dealer location, labor, cost of associated parts destroyed as a result of the failure, or travel to make the repairs. These agreements will also address issues such as Warranty period, Service Requirements, Dispute Resolution, etc.
It is Toro’s practice to work directly with Suppliers to analyze failures, determine corrective action, and ultimately satisfy financial impact thru the supply chain. The Toro Warranty Agreement begins the process of fruitful warranty recovery dialog, eliminates ongoing negotiation, and protects our customers.
2Business Processes
2.1Advanced Shipping Notice (ASN) (Updated 1/30/07)
Toro has implemented the Advance Ship Notice (ASN) process for domestic suppliers via ToroConnection. This function allows Toro domestic suppliers to easily create an electronic ASN detailing information regarding production part shipments. Toro will rely on the automation of the ASN information transfer process in the future. It is imperative that all domestic suppliers provide accurate ASN information without exception. Therefore, in the future, the Toro Company will be assessing financial penalties on all domestic shipments that do not have accurate ASN information.
There is an ASN Quick Guide available on ToroConnection to help you understand the ASN submission process and requirements.
Go to: The Basics>Instructions>Quick Guides>Advanced Ship Notice Quick Guide.
2.2Cost Avoidance and Cost Reduction (Updated 5/18/05)
Toro and its suppliers must find new ways to maintain or reduce costs in the face of ever increasing price pressures. It is Toro’s intent to continually reduce costs in partnership with suppliers through application of Lean Principles, Quality Improvement, and other opportunities to take cost out of products.
Suppliers are expected to identify Cost Avoidance and Cost Reduction possibilities at every opportunity and bring those to the Toro Buyer for review and implementation if appropriate. These are key elements in the evaluation of the support provided by suppliers.
2.3Customs Compliance (Updated 1/28/07)
The Toro Company interacts with U.S. Customs and Border Protection on many levels, both as an Importer and Exporter and is committed to achieving full compliance on all U.S. Customs issues. Toro is subject to fines, penalties, additional duties, or possible loss of product for improper importation of products or insufficient documentation of the origin of such products.
A Country of Origin Manufacturer’s Affidavit or a NAFTA (North American Free Trade Agreement) certificate must be completed for every part number supplied to Toro. If the countryof origin changes at any time the supplier must provide Toro a new Country of Origin Manufacturer’s Affidavit or NAFTA certificate within 10 days.
If the manufacturing country is US, Mexico or Canada and meets theterms outlined in the North American Free Trade Agreement, a NAFTA certificate is required. The NAFTA Certificate is only valid for12 months and must be renewed on an annual basis.
Suppliers are required to submit the NAFTA or Country of Origin Manufacturer’s Affidavit information electronically through the Import/Export page on ToroConnection. It is the supplier’s responsibility to use the forms providedto submit the required documentation. Go to the Basics section > Instructions > Quick Guides> Import / Export Quick Guide for instructions on how to submit this information.
Failure to comply with these requirements may result in fines to Toro. All such fines will be passed on to the suppliers.
2.4Customs-Trade Partnership Against Terrorism (C-TPAT) (Updated 6/3/05)
C-TPAT is a joint government-business initiative to build cooperative relationships that strengthen overall supply chain and border security to prevent terrorism. Toro is a certified member of the C-TPAT program and is committed to developing and implementing a sound plan to enhance security procedures throughout our supply chain.
All suppliers are required to complete and return the Security Questionnaire that was prepared based on C-TPAT Foreign Manufacturers Security Recommendations and contains general recommendations that should be followed by all suppliers. Return the completed Security Questionnaire per the instructions provided with the questionnaire.
Currently, Toro will supply a C-TPAT survey to suppliers as part of the Business Self Assessment form or as a standalone form attached to an e-mail. Future plans are to have this form provided through the Supplier Portal.
Additional information on C-TPAT can be obtained from the Customs and Border Protection website at
2.5Delivery Requirements (JIT) (Updated 3/12/07)
The first prerequisite to Just In Time (JIT) delivery is the Quality of the product delivered. Delivery of product that does not meet Toro Quality requirements will not satisfy Toro’s JIT delivery requirements. Toro’s delivery expectation is as follows: ‘the correct quantity of acceptable parts is delivered in the correct packaging via the agreed upon transportation on the date they are due’.
The Delivery Date in the JIT reports indicates the date the product is due to arrive at the Toro Plant or warehouse. Toro communicates delivery requirements in various reports as detailed below. These reports are available on the ToroConnection Sourcing page. It is Toro’s expectation the supplier will access this information on a regular basis to ensure production is adequately planned and managed to ensure the delivery requirements to Toro’s manufacturing facilities are met.
Report -Download File -Both / Updated: Daily or Weekly / ReportReport / Daily / Delivery Schedule by Date / Material
- Displays the required date of Delivery at Toro by
material/quantity
Both / Weekly / 8 Week JIT
- Displays the material and quantity due by weekly buckets
-Displays the date due as Monday of each week
Both / Weekly / 16 Week JIT
- Displays the material and quantity due by weekly buckets
- Displays the date due as Monday of each week
Both / Weekly / Planning Schedule by month
- Displays the material and quantity due month over the next 12
months
- Used for forecasting
Toro will commit to the quantities listed in the upcoming four-week period on the delivery schedule. The remaining weeks are planned. Toro Buyers may commit to longer than 4 weeks in special circumstances. Suppliers are required to work with the individual Plant Planner to work out Plant specific details relating to adjusted delivery dates, quantities, packaging methods, shipping methods, and any other concerns with the delivery schedule. All deviations from the JIT schedule must be pre-arranged with the Plant Planner.
The Supplier must notify the Plant Materials planner (or Service Parts Analyst for Plymouth warehouse) of any changes in accepted delivery dates or quantities at the soonest available time. Notice to Toro within 1 week of the due date b y US suppliers (or within 5 weeks by international suppliers) must be dealt with in an urgent manner and may require the need for air freight of product at the supplier’s expense.
Manual or auto firmed dates are used in some cases to communicate the firmed date of expected delivery of product at Toro. Firmed dates (identified with an *) may be moved after conversation with the Plant Planner. Plymouth will communicate changes to the Firmed date by displaying an ETA date. This ETA must be viewed as the date product is expected at Toro. Non-firmed dates are to be considered ‘Planned’ date of delivery at Toro. These non-firmed dates may move more frequently and must be monitored closely.
Suppliers are responsible for the cost of late or early shipments. Early shipments, in full or in part, are not allowed without permission from Toro and may result in a Quality Notification for return of the parts. Suppliers may also be held responsible for freight charges for pre-arranged pickups that are incomplete.
2.6Lean Supplier (Updated 5/18/05)
Current Expectations/Requirements: As Toro continues to aggressively eliminate waste via its lean process development, we also have a strong desire of our supply base to follow suit. Implementing lean across the supply chain benefits all partners and will ensure the supply chain remains competitive.
Supplier Responsibilities:Toro will continueto request services that align with lean principles. Examples of these services include smaller lot sizes, more frequent deliveries, and perfect order fulfillment. If Toro's strategic suppliers have not begun their lean journey, it will benefit them to immediately begin the activities required to become lean.
Lean Resources for Supply Base: Toro does have internal resources for consultation regarding lean methodologies, though they are limited in number. An excellent location to find lean methodology information and tools can be found at
2.7Requests for Quotation using eSourcing (Updated 2/28/07)
Toro will issue a Request for Quote (RFQ) as part of the design process to gain preliminary cost and lead time estimates for the Make/Buy Decisions. The eSourcing tool allows the buyer to create an RFQ using pre-defined bid fields the supplier will fill out as part of their bid, i.e. part cost and lead-time along with tooling cost and lead-time. The supplier will also have specific text fields that will allow them to add comments such as cost savings ideas, special setup costs, etc.
An e-mail is generated to the supplier when the RFQ has been launched and opened. The supplier is required to use this on-line tool to submit their bids. Due to this requirement,e-mails and faxes will not be accepted. The supplier will use their e-mail address and a password to log in. If the supplier has never logged in, send an e-mail to requesting the username and password. The supplier will be notified via e-mail.
An on-line Tutorial is provided once the supplier logs in. This tutorial walks them through a simple RFQ as well as other areas of the tool. If the supplier has questions, their first point of contact is the buyer who sent the RFQ to them. If the buyer is unable to help them, the supplier is to send an e-mail to with their questions. The supplier will receive a response via e-mail or by phone.
2.8Tooling (Updated 2/13/08)
Toro will issue a purchase order for new tooling required for the production of Toro components. Unless a special agreement exists with the Supplier, all such tooling is considered the property of Toro and will be used for the manufacture of Toro components only. All Toro owned tooling must be permanently marked as “Property of the Toro Company” and include permanent marking of the Toro tooling identification number.