INTENT

Suppliers play a significant role in the success of KIK Custom Products achieving high levels of business continuity for its customer base. In order to continue to support our customers at a high level, KIK business practices must continuously evolve. With business expectations constantly changing, there are core expectations that are always maintained by KIK and expected of suppliers. KIK business practices now require that suppliers meet or exceed compliance of the core expectations outlined further in the document.

CORE EXPECTATIONS:

1. Compliance with Laws

  • Supplier agrees to comply with the applicable provisions of any federal, national, state, or local law, and all orders, rules and regulations issued thereunder, whether now or hereafter in force, and any provisions, representations or agreements required thereby to be including in the contract resulting from acceptance of a PO are hereby incorporate by reference, including, but not limited to those prohibiting employment of children or forced labor and those prohibiting discrimination against any employee or applicant for employment because of race, color, religion, sex, or national origin, or physical or mental handicap and those providing for the employment of disabled veterans and veterans of the Vietnam era, export control, anti-bribery, economic sanctions laws, EPO, OSHA, OFAC, and all hazardous materials transportation and hazardous communications standard for safe labeling, handling, and use of the product. Without in any way limiting the generality of the foregoing provisions of this Section, Supplier shall at all times be in compliance with all provision set forth in Executive Order 11246, as amended, Section 503 of the Rehabilitation act of 1973, as amended 38 U.S.C. 4212 of the Vietnam Veterans’ Readjustment Assistance Act of 1974, as amended, 29 CFR Part 471, Appendix A to Subpart A (Executive Order 13496).

2. Audits

  • Supplier must participate in self-assessments and/or on site audits administered by KIK or a third party.
      – With reasonable amounts of notification, supplier must provide full transparency for audit purposes.

3. Manufacturing and Distribution

  • Quality Management Systems must be in place to manage overall quality & for identifying and controlling the release of non-conforming products to KIK.
  • Notify KIK immediately on product that may constitute a risk to health, safety, environment, or a compliance issue.
  • Provide only products where testing on animals has not been performed.
  • Ensure, monitor and sustain child labor and all labor regulations as it applies to direct labor and/or any labor used within the Supply Chain.

4. Facilities & Asset Management

  • Operate facilities in compliance with all legal requirements including but not limited to labor and environmental protection laws, standards, codes, and ordinances.
  • Protect and maintain environmentally sound facilities & assets in a manner that protects from damage occurring to KIK tooling, product manufactured, or product stored.
  • Have programs in place for proper disposition of any manufacturing waste or returned product that cannot be reused, recycled, or remanufactured.

5. Environmental Sustainability

  • Supplier must comply with local requirements and environmental norms
  • Supplier must remain aware of an act in a way that reduces the impact of business operations in the environment by acknowledging Products that enter the waste stream have energy impacts and associated Green House Gas emissions at each stage of their life cycle. Some impacts are direct and some are indirect. The stages can be categorized as:
      1.) The acquisition of raw materials
    • 2.) The manufacture of raw materials into products
    • 3.) Consumer use of the product
    • 4.) Unused product and container disposal
  • Waste reduction practices, such as recycling and reuse, reduce the demand for raw material and energy inputs to the manufacturing stage of the life cycle, thereby conserving energy and reducing Green House Gas emissions. Energy savings can also result from engineered physical plant changes, waste disposal practices, incinerate for energy and landfill gas to energy programs or initiatives.
  • KIK suggests a Life Cycle Study for products coming into our plants which shows the efforts made by the Supplier to lessen the manufacturing impact on Green House Gas emissions. The plan should include the efforts made to reduce waste made by the Supplier as well as the efforts to dispose of that waste in a resourceful and responsible manner with continuous improvement goals year after year.
  • These plans must be available and presented upon request by KIK and the Supplier should have subject matter experts available to discuss these efforts periodically throughout the year on KIK’s request.
  • The review may be from a group of KIK employees or it could be a third party hired by KIK.

6. Ethics, Anti-Corruption, and Business Conduct

  • Supplier must comply with all applicable laws and regulations at all levels, whether national or local
  • Avoid and eliminate anti-competitive practices and behaviors by complying with anti-trust laws
  • Prohibit any kind of corruption or bribery within their organization
  • Compliance with the US Dodd-Frank Wall Street Reform, which imposes disclosure requirements of conflict minerals from tin, tantalum, tungsten, and gold.
      – At the request of KIK, supplier must disclose if conflict minerals are used in their product.
  • Supplier must comply to requirements of protecting KIK or its customers intellectual property
      – Supplier must respect the confidentially of their commercial relationship with KIK Custom Products

7. Transportation

  • Meet applicable legal and regulatory transportation, packaging and chemical requirements when distributing or transporting goods to KIK, KIK customers or other third parties on behalf of KIK and its subsidiaries.
  • Reduce consumption of fossil fuels and emissions of greenhouse gasses through initiatives that can include, but are not limited to increasing vehicle fuel efficiency, leveraging intermodal shipping, load matching, consolidating shipments, improving scheduling and delivery routing, using alternative fuels, and avoiding fuels with higher than average carbon footprints and other environmental and social impacts.
  • Cargo shall be checked by carrier’s drivers to insure that it has been loaded in full compliance with the Federal Motor Carrier Safety Administration’s Cargo Securement regulations.
  • Carrier represents and warrants that its physical security procedures are adequate to prevent tampering with or damage to the commodities or their containers, introduction of contraband materials or substances into the commodities or their containers, theft of the commodities, or diversion of the commodities for unlawful or unauthorized purposes. Full truckload shipments must be sealed with seal number clearly printed on BOL and arrive to destination intact.
  • With respect to shipments originating in Mexico or Canada, carrier shall be a participant in the United States Customs Service’s Customs Trade Partnership against Terrorism (C-TPAT).

8. Privacy and Data Protection

  • Supplier must respect privacy and implement security and protection measures to safeguard confidential information of patents, product designs, business agreements, & other critical data of tangible value.

9. Continuous Improvement

  • Supplier must demonstrate a commitment to continuous improvement
  • These plans must be available and presented upon request by KIK and the Supplier should have subject matter experts available to discuss these efforts periodically throughout the year on KIK’s request. The review may be from a group of KIK employees or it could be a third party hired by KIK.
  • Failure to show continuous improvement efforts in this area or irresponsibility to the environment will place the Supplier at risk of further review and actions by KIK Leadership and could risk potential future business.

10. Delegation of Authority and agents- Financial Commitments

  • Supplier must have documented delegation of authority to emphasize who has contractual commitment abilities.
  • These plans must clearly define:
      – Officers of company
      – Employees eligible to make commitments

APPLICATION & DEMONSTRATION

KIK Custom Products expects supplier to maintain documentation that would demonstrate compliance of the core expectations. Failure to adhere to the core expectations or show continuous improvement efforts in specific areas will place the Supplier at risk of further review and actions by KIK Leadership and may risk potential future business. KIK recognizes that these expectations must be continually developed to incorporate practical and evolving standards.