As a Company engaged in the business of contract manufacturing, our purchases from suppliers are dictated by the delivery schedules to our customers.
We are constantly engaged with our customers and working hard to understand their demands, and the target is to establish a supply chain pattern that builds on a few key components:
- Annual demands that is the foundation for the yearly business plans
- Quarterly/monthly forecasts that are non-binding
- Two to four week binding orders
With the above in place, we then establish a supply chain pattern with our suppliers based on a supply agreement where the target is to establish as much predictability in the order flow as is possible given the customers demands.