Esprit Electronics is featured in Electronics Sourcing, November 2013.
Most companies go to great time and expense to design and perfect their products, however, when it comes to the perfect supply chain, many would be disappointed to learn that their requirements are shoehorned into existing supply-chains without much consideration. Forecast driven customers with varying degrees of planning horizons all require a supply chain solution that provides the fastest response possible. The question is: are many of them really receiving this service?
Globalisation has created more complex supply chains that link organisations, industries and economies and consequently bring with them greater risks. Over the past few years we’ve seen the unfortunate impact of natural disasters and fires, social unrest and its impact on factory lines, the constant threat of financial collapse and most recently the ‘conflict mineral’ legislation and its control of supply sources.
CEMs owe it to customers to maintain a clear awareness of the changing external business environment, from raw material and energy prices to their effects upon material availability and subsequent price-shifts.
Controlled development of procurement practices and the systematic examination of supply chain vulnerabilities, enable Esprit to identify, monitor and find solutions to weaknesses and risks. This involves a partnering approach for high risk supply chain areas to evaluate potential issues and work with the supplier to identify and implement corrective action plans, or if necessary, contingencies for mitigating risks before they occur.
Future-proofing the supply chain and exposing those circumstances outside of one’s control can protect against price increases by finding new and better sources for the supply chain. The aim is to provide a solution that doesn’t disrupt customers’ demands, but also, where possible, provides them with additional opportunities when spikes in demand occur.
Esprit manages these demands with a suite of managed and continually monitored supplies. Working with customers identifies where commitment in the supply chain is required. Esprit then holds consignment stock and perpetually calculates levels of buffer inventory based around ‘live’ factory lead times, thereby beating the market when lead times are extended.
The result: those customers willing to place sustainability as a strategic goal will have a much improved chance of surviving the peaks and troughs of this industry.
To view the full November edition, click here and see us on page 15.