- July 19, 2014
- Posted by: EPP
- Category: Purchasing Help
Reduce stress, guarantee delivery, and save money on plastic machining production orders
The typical plastic machining order process involves submitting new requests for quote and purchase orders each time requirements are approaching. While this process is common in order to prevent the carrying of excess inventory, excess time and money are wasted in order for individual quotes and orders to be processed each time a plastic machining requirement is approaching. Since future orders are not locked in, neither are material costs-variable costs.
The Solution: EPP’s Supply Chain Method
Since production parts are always re-ordered our supply chain method is the solution. Our method will eliminate the concern for carrying excess inventory, while saving time and money.
EPP’s Method is as follows:
-The buyer provides drawings for all plastic machined parts that will be needed for their production over a 12-month period and gives a rough estimate of annual quantity based on existing usage forecasts. This quantity is used solely as a benchmark and can be adjusted given changes in usage.
-We evaluate all plastic machining requirements as one requirement-allowing for material prices to be locked in for the entire year (savings of as much as 20%)
-After the annual purchase order is placed for all the parts, the only other commitment for the customer is a delivery release forecast. A 12-week forecast that updates each week is ideal. Many customers simply forecast a monthly or weekly release and adjust the quantity as needed.
EPP holds substantial inventory in case an unexpected spike in usage occurs, eliminating the worry of struggling to meet production deadlines on products using plastic machined parts.
Our components are manufactured with strict quality standards guided by ISO standards, SPC, and customer inspection protocol to ensure that all critical dimensions are addressed.
On time delivery and dock to stock quality are guaranteed with all plastic machining orders.
By utilizing our supply chain method when ordering plastic machined components you will receive your parts when you want them, with 100% quality, and worry free.
FOR A FULL DESCRIPTION OF EPP’s SUPPLY CHAIN MANAGEMENT SYSTEM CLICK HERE