-
- News
- Books
Featured Books
- pcb007 Magazine
Latest Issues
Current IssueWet Process Control
In this issue, we examine wet processes and how to obtain a better degree of control that allows usable data to guide our decisions and produce consistently higher-quality products.
Don’t Just Survive, Thrive
If we are to be relevant and prosper during these next critical decades in electronics, we must do more than survive. As an industry, we can and must thrive. In this issue, our contributors explore these concepts meant to help you take your business to the next level.
Material Matters
Materials management is nuanced, multifaceted, and requires a holistic systems approach for business success. When building high mix, low volume, and high technology, managing materials and overall cost containment are even greater challenges.
- Articles
- Columns
Search Console
- Links
- Events
||| MENU - pcb007 Magazine
Driving Down Cost in the Supply Chain
April 8, 2021 | Meghan Zou, EPOCHEstimated reading time: 2 minutes
![](https://iconnect007.com/application/files/6216/9086/7527/Meghan_Zou.jpg)
Driving cost out of the supply chain goes beyond reduction of raw material cost. Though many of the manufacturers today concentrate on negotiation with their raw material supplier(s) the hidden cost of internal supply chain goes undetected. To address the cost of the entire supply chain we should not only look at direct material cost but also the cost of internal supply chain. At Epoch we looked at four areas in particular which include: planning/tracking, storage/delivery, inventory management, and supplier relationships.
Planning and Tracking
At Epoch International, a provider of engineering and manufacturing services to diverse customers in such fields as telecommunication, automotive, medical, etc., this challenge becomes more acute due to various sizes and diversity of production that we run daily. Due to the vast variety and number of components used in various product lines, Epoch realized early on that, without any ERP tool, it would not be humanly possible to manage the entire supply chain. Epoch has been utilizing Oracle EBS suite since the early 2000s to operate its entire business operations.
To further enhance its internal supply chain it has augmented the ERP with a series of in-house designed interface modules. One of the early modules designed was a “barcode interface module.” This system has allowed the removal of all the manual entry into the ERP system by merely scanning the material as it moves from point of entry to the production floor. This system is very much integrated with the in-house developed MES system that monitors the movement of the product/material throughout the production stage.
Storage and Delivery
One area of cost that has been addressed by Epoch is the movement of raw material back and forth from inventory to production site. This has been achieved through the implementation of an environmentally controlled Point of Use Smart Cabinet. The company has deployed a series of these smart cabinets that is designed and patented by Epoch right at the point of use of the production. Bringing the inventory right to the production floor eliminates all movements back and forth between inventory and production. This also reduces the number of inventory staff since parts are picked by the production staff utilizing its fully automated locator and FIFO dispensers. The smart cabinet is fully integrated with the ERP system ensuring full control of the inventory. Since the implementation of the smart cabinet six years ago, Epoch has doubled its inventory material line items without increasing any head count on its material management team.
To read this entire article, which appeared in the April 2021 issue of SMT007 Magazine, click here.
Suggested Items
Curtiss-Wright Wins $26M Contract to Provide Aircraft Arresting Systems and Support to the Belgian Air Force
09/06/2024 | Curtiss-Wright CorporationCurtiss-Wright Corporation announced that it has been awarded a $26 million multi-year contract by the Belgian Air Force to implement a modernization program for its aircraft arresting systems.
SEMICON India 2024 to Highlight Local Semiconductor Ecosystem Growth and Industry Trends
09/06/2024 | SEMISEMICON India 2024 will bring together global leaders, semiconductor industry experts, academia, and government officials from September 11-13, 2024, at the India Exposition Mart Ltd. (IEML) in Greater Noida, Delhi NCR.
U.S. Army Selects Saab’s AT4 Solution for Individual Assault Munition Program
09/05/2024 | SaabSaab’s new addition to the battle-tested AT4 family combines the capability of multiple existing shoulder-launched munitions while reducing soldier load, training complexity and logistics burden.
Q2 2024 Global Semiconductor Equipment Billings Increased 4% Year-Over-Year
09/05/2024 | SEMIGlobal semiconductor equipment billings increased 4% year-over-year to US$26.8 billion in the second quarter of 2024, while quarter-over-quarter billings edged up 1% during the same p
Kaynes Technology Selects Delvitech’s 3D AI-Based AOI Solutions to Keep Pioneering India’s Electronics Manufacturing
09/04/2024 | DelvitechDelvitech has announced that Kaynes Technology India Limited, a distinguished leader in electronic system design and manufacturing in India, has selected its cutting-edge 3D AI-based automated optical inspection (AOI) solutions. This strategic partnership marks a pivotal advancement in Kaynes Technology’s mission to remain at the forefront of the dynamic electronics industry.