We manage procurement through a network of global suppliers and have carefully cultivated solid relationships throughout the supply chain. We only partner with the best suppliers to guarantee that the components we receive are of the highest quality. Our team also manages a network of outsourced processes to supplement our core manufacturing.
We are aware that without the complete support of our suppliers, we would not be able to reach our set targets for supply costs. To ensure this close collaboration, we provide suppliers with long lead items and extended forecasts, some as long as six to eight months.
Epoch has also established VMI with many of its major suppliers, and to reduce excess workload for the procurement team, EDI is implemented with suppliers. In the past, a sudden surge in customer demand would mean spot buying of components at higher prices. However, with EDI in place, Epoch is able to better manage its inventory and avoid costly last-minute purchases.
The fluctuation of component availability and the longer forecast provided to the supplier have allowed us to reduce our inventory costs by around 4%.