Electronic Product Integration Supply Chain Strategy

The foundation of EPIC Technologies’ operating strategy is to maximize our collective value to the end customer. The goal of the Supply Chain Management organization is to align the supply base with our goals with the end customer foremost in mind. To obtain the highest level of collective performance in terms of flexibility, responsiveness, material efficiency, quality and cost, EPIC Technologies operates under a synchronous flow, lean manufacturing strategy. The manufacturing cycle time for most of our products is measured in hours. Therefore the limitation on our responsiveness, the bottleneck, is the ability of suppliers to respond to changes in schedule.

We work very closely with our customers to maintain a requirements forecast that most accurately represents the current consensus at any point in time We all know that even the best of forecasts will be subject to sudden changes. To maximize our collective value to our downstream customers, we must all endeavor to establish processes that allow us to effectively and efficiently respond to these demand changes. EPIC Technologies’ strategy, is to align ourselves with suppliers that can provide materials at the highest level of value measured in landed cost, quality and last but equally important, a demonstrated focus on delivering parts within a lean framework in support our "demand-flow", pull system.

Such suppliers are characterized by short total lead times, manufacturing cycle time and Work-In-Process inventories relative to their competition, manage their own manufacturing process with a "pull" (vs. "push") system, and consistently demonstrate a track record of high quality, continuous improvement and daily execution which is fundamental to any lean process.

We subscribe to the theory that the highest quality suppliers are also the lowest cost. We are in a thin margin business and can ill afford to leave any money "on the table". Our goal is to be your lowest cost customer, to conserve our mutual resource by not slaving them to the "administrivia" of the day, but to release our collective brainpower toward solving the tough problems that we face daily in this very demanding business. We need your constant diligence toward perpetual cost reduction.

We have set a standard of responding to your issues and concerns, as best we can, with the same urgency with which we expect ours to be handled by you. As you know, circumstances sometimes prevent us from resolving issues as quickly as we would like. In the event our response is unsatisfactory, I encourage you to raise the issue to the local Materials management, and then to me if ultimate resolution is not forthcoming.

On behalf of EPIC, I want to thank you in advance for your support and I look forward to working with you toward a mutually prosperous future.

Sincerely,