| All completed negotiations with PACCAR suppliers for truck related components are finalized with a Corporate Blanket Purchase Order (BPO) to the suppliers. The BPO reflects negotiations based on an estimated usage for the term of the commitment but is not authorization to build or ship. Actual order quantities are documented with a plant release against the BPO. | |
| Purchase orders for maintenance, repair and operation (MRO), Information Technology, and Travel are the responsibility of the Non-Production group.
The Non-Production group is responsible for the negotiation and management of both single contracts and national consolidated BPOs and agreements. All PACCAR sites in the U.S. are required to purchase via national consolidated BPOs and agreements, whenever possible. |
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| The Aftermarket Purchasing group is responsible for cost negotiation and management for PACCAR Parts in the U.S., Canada and Mexico. Purchase Orders for PACCAR's aftermarket requirements are issued by PACCAR Parts. | |
| Tooling Purchase Orders are issued for all tooling that is PACCAR property regardless of the location of the tool. PACCAR suppliers are required to maintain the tool in working condition to produce quality parts during the stated life of the tool. Tooling records must be kept up to date to reflect the tool maintenance. The supplier is also responsible for appropriate tool identification, proper tool storage, and proof of full insurance coverage for the tool. | |
PACCAR suppliers are required to abide by all terms and conditions contained on the Purchase Order unless alternative terms are agreed to by PACCAR Purchasing. All exceptions must be authorized in writing and stated on the purchase order. PACCAR Purchasing requires a ninety day written notice prior to any price increase. Written notification must include part numbers, current and proposed prices, and supporting documentation substantiating the price change. |