Nonconforming Materials

If, as a supplier, you are unable to meet the product specifications (which includes, but not limited to, such things as tolerances, material, proper measurement and testing of product, etc.) the supplier should either no-quote or work with our Commodity Management and Design Engineering Team for clarifications/changes.

The reason this is important, is that once the supplier accepts the Purchase Order (P.O.) they are bound to provide the product to Bosch specifications.   If product is found to be nonconforming, the supplier is responsible to bring the product into specification.  Additionally, the supplier may be charged for lost revenue and manufacturing stoppage charges.

Any Bosch associate has the authority and responsibility to stop production and/or shipment in the event nonconformity is detected. Bosch’s expectation is that our suppliers practice this same empowerment with their associates.

Non-conformance’s are documented electronically through our Discrepancy Reporting (DR) process.  All non-conformance’s that are supplier-caused, affect the Supplier’s Report Card.  Once a DR is generated, the Bosch Buyer will notify the supplier to take immediate, long-term corrective action.  Depending on the situation and type of rejection, a Bosch 8D Form will be required to be completed.   Please see your assigned PUQ for further information.

The disposition of nonconforming product may include one or more of the following:

Return to Supplier (RTS) Material: Nonconforming materials for which the supplier is responsible and quality concerns dictate its return for rework, replacement or credit.

Reworked Material: Material that can be made to conform to specifications if additional methods or resources are applied.

Scrap Material: Nonconforming material/products that cannot be economically reworked or repaired, and is unfit for use.

Use As Is Material (UAI): Material that does not meet specifications but can be used with Design Engineering authorized deviation for a specific product lot.

  • Concession: Written authorization from Design Engineering to supplier which allows supplier to ship product to Bosch that does not conform to Bosch specifications.  The authorization applies to a specific purchase order and quantity, and must be approved prior to parts being produced/shipped.  The Concession must be recorded within the Bosch Record of Inspection (ROI) prior to the parts being received into inventory at Bosch.
    • No other functional area has the authority to authorize a supplier to send parts that are not to specification into Bosch.

Processing/handling discrepant material is time-consuming and costly, not to mention, has a negative affect on customer satisfaction.   Because of this, Bosch has a Supplier Charge-back Program in which suppliers may be charged back for such things as rework, improper packaging of inbound product, lack of proper documentation, administrative charges, etc.

What is a supplier charge-back?

A supplier charge-back is an amount charged the supplier for supplier-caused nonconforming material, products, or a service which includes, but is not limited to actual/estimated rework costs and minimum rework charges. There may be instances when additional charges may be charged to the supplier for business interruptions.

As a supplier of Bosch Automotive Service Solutions, you are responsible for ensuring that product is shipped to Bosch that meets product specifications; and that the product arrives in good condition.

If product is found to be nonconforming or arrives in an unsuitable condition, Bosch will typically ship the product back to you for rework or replacement.

There may be times when Bosch’s customer requirements do not allow for enough time to ship the product back to you.   In those cases, the appropriate Bosch buyer will send you the estimated Bosch rework costs. You have 24 hours to respond.   If no response is received from you within the allotted time period, the estimate is considered accepted, and rework will proceed at your expense.

The minimum rework charge is $250.00 US.

Additionally,

Bosch Discrepancy Reports have Root Cause Codes

These root because codes are assigned based upon the findings of Bosch for the specific non-conformance.  Depending on the code assigned, some may affect a supplier’s performance rating, while other will not.

The Root Cause Chart shows you, as a supplier, what Bosch believes the root cause of the non-conformance is.  Please check this area of the Discrepancy Reports on the website carefully, and if there is additional information Bosch should know about that would affect the Root Cause assigned

Bosch Automotive Service Solutions Inc. Root Cause Codes

If the supplier feels they are lacking information or need clarification on product specifications or any other topic…..please ask Bosch for assistance. This is key to avoiding nonconforming material rejections.