BASIC

No

Abbreviation

Remark

RFQ

Requirement For Quotation

Production Sourcing
Team

Consist of Buyers, Supplier Quality Engineers, Product Engineers, Logistics Planners.

PE

Production Engineers

SQE

Supplier Quality Engineers

OTS

Off Tool Sample

PPAP

Production Part Approval Process

PD

Purchasing Department

TDC

Technical Data Center

PSCM

Purchase Supply Chain Management

10

SOR

Statement Of Requirement

11

EWO

Engineering Work Order

12

Bid List

Bidding List

13

TR

Technical Review

14

QR

Quality Review

15

TA

Technical Assessment

16

TRA

Technical Risk Assessment

17

LOI

Letter Of Intent

Rensponsibility Of Planning & Project Team's

No

Remark

Rensponsible for the Project (Including the Budget) review & approval

Rensponsible for release and update of new projects annual sales data

Developing and publishing project strategy

Rensponsibility Of Purchasing Team

No

Remark

Establishing and maintaining Suppliers base

Organization of Risk Assesment for potential Suppliers

Preparation the Bid List Form and submitting for approval

Issuing RFQ, receiving rounds of quote from Suppliers, analyzing cost and negotiating with Suppliers

Support the development of Cost-Book, and responsible or target price application

Organizing Technical Review or Quality Review (TR/ QR)

Organization of over Cost-Book meeting

Prepare sourcing document for JPC approval

Participating Indonesia purchasing meeting and present sourcing department

10

Signing the Letters Of Intent (LOI) with the sourced Suppliers

11

Organized Kick -Off Meeting

12

Signing contract with Suppliers

13

Proposing budget of Suppliers Tooling

14

Archiving and managing document off sourcing and contract

Purchasing Process/ Regulation based on SOR

1. Purchasing Input
1.1 Planning Department is responsible for project review and submission for approval (including budget). Approval budget must clearly state tooling budget (which includes
supplier tooling budget). After Project approval, planning department issues information including but not the limited to forecast sales volume, project strategy, budget
approval status, supplier involvement on advanced development and relevant cost.

1.2 As the single point o contact in PSCM, Platform Purchasing Team receives purchasing related information, organizes, develops dan publishes purchasing strategies o
platform, vehicle and engine model, tracks and coordinates the progress of each phase o the project, developes and issues Supplier Capacity target based in Sales Forecast
to Purchase, SQ, logistic area. Supplier capacity target will be one of the factors for its quotation.

1.3 TDC publishes Bill Of Material (BOM) and discusses sourcing strategies (trough SOR or EWO) with PSCM. TDC develops SOR and issues to PSCM as planned refer to
document of ( SOR publishing and Management Procedure)
1.4 Before Buyers apply for target price, Finance Dept, issues Cost-Book to PSCM according to the project plan.

2. Purchasing Officially starts sourcing after receiving SOR

3. Bid List Approval
3.1 Purchasing Team selects well-peforming Suppliers from Suppliers database to risk assesment, which includes the evaluation o Quality, Techonolgy, Business and
Production Capacity Evaluation, and Fills in the "Bid ListApproval Form", submits to Manager, Department Director for approval. The approval of group Bid List (Includes
different Suppliers & Diferent Parts) will be valid for half year.

3.2 Bid List Approval Principle

1. Technical assessment result confirmation to requirement. Result shows 'Conditional Recommend' with reason noted result shows ''Not Recommend will be removed from
Bid List.
2. Green quality record whereas the wuality record show Red, it will not be recommended in principle. SQE (Supplier Quality Engineer) Manager's approval is required with
rectification measures if supplier with red quality reccord is recommended.
3. Low business risk. Purchasing Director's approval is required high coomercial risk Supplier is recommended.
4. Capacity risk will be filled in the Bid List approval from after buyer communicating with Suppliers.
5. Based on actual situation, after communicating with TDC, SQ & Relevant Dept. JPC could propose to add additional Supplier into Bid List provided that the additional
Suppliers statisfy above principles.

4. Exceptional Cases
4.1 Supplier in Supplier park can be recommended as single. Regarding few sources in Indonesia, single recommended is accepted in enrolled Supplier Form, BUT should use
single source form.
5. Buyers organize PE & SQE to conduct TR & QR whose result will need to be informed to Buyer.
6. RFQ

6.1 Buyers prepares RQ Material and sends to Suppliers in the Bid List and make sure RFQ material have been received according to "Request for Quote Procedures.
6.2 Buyers organized SQE/PE/ Packing Engineer/ Logistic Planner to fully discuss contents of Supplier quotation/ TR/ QR/ Package Proposal etc, to ensure Supplier's quote
followed RQ requirement. Way of communication depends on specific situation
6.3 After receiving the initial Quote, the Buyers analyzed cost, fill out and submit the 'Target Price Setting Table" to Purchasing Director. Buyers guide suppliers to complete
final round of quote based on approved target price, details refer to 'Target Price Application Standard'

7. If final round Quotes doesn't meet the target, Buyers could require one more round of Quote after it's approved by Purchasing Director. If still not
reaches the target price, Buyers need to prepare Benchmarking analysis to compare existing quote with current model and report to Purchasing
Director. After Purchasing Director approving that final Quote is reasonable, Buyers notify TDC to confirm the difference between final technical
proposed and initial scheme when target price was developed, meanwhile to TDC study cost reduction measures to fulfill target price.
Buyers organize over Cost-Book meeting to be attended by Planning Department/ Project Team, Chief Engineer, Assistant of Chieff Engineer & Finance.
Buyers should report Benchmarking analysis information in the meeting. Purchaser will continue to conduct business negotiations with Suppliers or add
Supplier into Bid List.

7.1TDC or Suppliers and other relevant areas propose Cost Reduction proposal.
7.2 TDC update SOR & Buyers require Suppliers to Re-Submit final round of quote based on updated SOR
7.3 If after completion of the above works, the lowest Quote still not reach target price, after comprehensive consideration on the premise that vehicle general cost remain
the same, Chie Engineer, Project Director dan Purchasing Director will approved the lowet Quote.

8. Purchasing Recommendation
8.1 When final Quote meets the Financial Cost-Book or the final approval price,the Buyers complete all the Materials including filling out "Purchasing Recommendation Form'
and "Purchasing Recommendation Overview" to be approved by Purchasing Manager before recommending to Indonesia Purchase Meeting.
9. Suppliers Finalization

9.1 Buyers present all the relevant material in the Purchasing Meeting. Purchasing meeting lead will make decisions of Supplier/ Price/ Pricce Adjusment/ Quotation etc.
Based on Suppliers performance in Quality, Price, Technology, Service & Responsiveness. Meeting Coordinator fill in the "Joint Procurement Committe Resolution Log File"
and report to Purchasing Meeting Leaders or final approval. Purchasing Meeting implementation details refer to "Purchasing Assessment Implenting Rules"

10. Releasing Letter Of Intent (LOI)

10.1 Buyers present all the relevant material in the Purchasing Meeting. Purchasing meeting lead will make decisions of Supplier/ Price/ Price Adjusment/ Quotation etc.
Based on Suppliers performance in Quality, Price, Technology, Service & Responsiveness. Meeting Coordinator fill in the "Joint Procurement Committe Resolution Log File"
and report to Purchasing Meeting Leaders or final approval. Purchasing Meeting implementation details refer to "Purchasing Assessment Implenting Rules"

Working Procedure/ requirement of sourcing through EWO

1. TDC release material required list, then communicate with Purchasing Dept. to confirm sourcing strategies (SOR/EWO) for all parts. If
parts is confirmed to be sourced through EWO, TDC establish and release EWO as schedule, implementation details refer to "Product
engineering work instructions EWO process. Original Supplier will need to be sourced if follow EWO strategy. TDC will send SOR if original
Supplier couldn't implement the change & sourcing strategy convert to SOR.

engineering work instructions EWO process. Original Supplier will need to be sourced if follow EWO strategy. TDC will send SOR if original
Supplier couldn't implement the change & sourcing strategy convert to SOR.
2. Purchasing receiving EWO (Engineering Work Order)

2.1 If there's no cost change, Buyers fill in the production purchasing recommendation form (Simplified Version) and report to Manager for approval before recommending to
Purchasing Meeting.
2.2 If there's cost different is covered by CR/DN (after SOP) or CR/ DN (before SOP), Buyers can negotiate with the Original Supplier. Pierce doesn't exceed CR/DN or NCR/ DN
approved cost objective, Buyers fill in production purchasing recommendation form (Simplified Version) and report to Manager for approval before recommending .
2.3 New project dedicate member o EWO change produces changes in costs, according to the project to develop uniorm requirements, released By the Finance Ministry to
the purchasing price target. Buyer application target price.

3. Purchasing meet in sourcing & pricing decision

3.1 In regular joint Purchasing committee , Buyer present sourcing recommendation, Purchasing Meeting examine Supplier recommended and price change & make relevant
decisions approve ' JPC resolution documentation"
4. Issuing Letter Of Intent (LOI)

4.1 After JPC sourcing decision, Buyer issue a Letter Of Intent to sourced Supplier and Organize Kick Off Meeting to be attendeed By SQE, PE & Suppliers to fully
communicate on issue related to Engineering changes, both sides confirm working time schedule and follow up schedule implementation status.
4.2 Sourching file achieving. All sourcing file must be submitted to Purchasing Manager within two month after Purchasing Meeting decision.

5. OTS (Off Tool Sample) Approval

5.1 OTS approval is required for all Engineering modification done By TDC
6. PPAP (Production Part Approval Process) Approval
6.1 SQE issue PPAP approval and inform Buyer the result
7. Signing Purchasing Contract
7.1. After Engineering's change was implemented By Supplier, Buyer will sign product material sales & Purchase Contract with Supplier, written contract need to be reviewed
and approved, details refer to "Approval Authority Management Procedures'.

8. Contract archiving: All approved contract of production purchasing need to be archived within required time frame

The Relevant Documents

No

Remark

Request or Quote Procedure

Target Price Application Order

Sourcing Review Procedures

Tooling Sample Aproval Procedure - OTS

Production Parts Approval Process

Suppliers Capacity Management Process

Product Engineering Work Order (EWO)

COMPANY PROFILE
1. Historical
No

Time

July - 1958

January - 1966

January - 1982

May - 1985

July - 2001

18 November 2002

3 June 2005

2006

12 September 2007

10

31 Maret 2008

11

18 Desember 2009

12

18 Juli 2010

13

09 Agustus 2011

14

10 Juli 2012

15

18 November 2012

16

09 Mei 2013

17

18 Juni 2013

18

18 November 2013

19

20 April 2014

20

30 Juli 2014

COMPANY PROFILE

Remark
Establishment of Liuzhou Power Machining Plant
Establishment of Liuzhou Tractor Plant
Successfully built 1st Trial Mini - Vehicle
Establishment of Liuzhou Mini Vehicle Factory
Establishment of SAIC Wuling Automobile Co., Ltd.
SGWM formally founded
Establishment of SGMW Qingdao Branch
Both Production & Sales Surpassed 460K. SGMW became Leader Of Mini Commercial Vehicle
Market
SGMW Liuzhou Engine Plant Shop
SGMW Qingdao Vehicle Plant Shop
SGMW Annual 1 Millionth Vehicle Offlined
Baojun Brand unveiled
Baojun 630 Launched to the Marketplace
Wuling Rongguan Officially Offlined and Launched in Egypt Market
Ten Year Anniversary & Baojun Base SOP Ceremony
Chevrolet Enjoy went on Sales in India passenger market
Chongqing Base Ground Breaking Ceremony
SGMW Ten Millionth Vehicle Offline Celebration
Baojun 730 Debute & Baojun 610 Launched
Baojun 730 Launched

2. Share Holder
a. 50,1 % SAIC
b. 44% GM China
c. 5,9% Liuzhou Wuling

3. Facilities & Capacity

a. Chongqing Base
b. Liuzhou HQ
c. Liuzhou Baojun Base
c. Qingdao Base

No

Detail Of Sourcing Activity

List Up Potential Supplier By Purchasing

PSA (Potential Supplier Assesment) By SQE (Supplier Quality Engineer)

Enrolled Supplier List

Signing Confidential

Send RFQ, Packaging Development Manual & SOR (Statement Of Requirement) come from PE
Engineer) & PPM to Supplier who is already registered

If get's from Supplier regarding Technical Question can be asked directly to PE (Production En
PE can be answer directly to the Supplier or Buyer could trough.

RFQ Question's from Supplier

1st Round Quotation submitting By All Supplier with D/D: 1 Week

Request to PE for Technical Review (TR) concern to Product & Techical Assessment (TA) conce

10

Inform to Supplier for contact to PE (Quality Supplier communicate with our PE)

11

Technical Review & Technical Assesment released By PE

12

Continue for request 2nd Round to Suppliers Selected By PE

13

Set up target price Aprroved By Mr. He Haito

14

Invite Last Round Quotation

15

Over Cost Book Meeting

16

Join Purchasing Committee

17

Letter Of Intent

rcing Activity

lity Engineer)

ment Of Requirement) come from PE (Production

asked directly to PE (Production Engineer) or PPM. Then

rough.

Remark

Report to
Mr. He Haitao

Buyer, Supplier

Buyer

Pak Ahmad Ardiansyah

Pak Masagung Chandra
Buyer

1 Week

Buyer

ct & Techical Assessment (TA) concern to all aspect

Buyer

municate with our PE)

Buyer

PE

PE
Buyer
Buyer
Buyer
Buyer, Project
Buyer
Buyer