-
- News
- Books
Featured Books
- pcb007 Magazine
Latest Issues
Current IssueThe Growing Industry
In this issue of PCB007 Magazine, we talk with leading economic experts, advocacy specialists in Washington, D.C., and PCB company leadership to get a well-rounded picture of what’s happening in the industry today. Don’t miss it.
The Sustainability Issue
Sustainability is one of the most widely used terms in business today, especially for electronics and manufacturing but what does it mean to you? We explore the environmental, business, and economic impacts.
The Fabricator’s Guide to IPC APEX EXPO
This issue previews many of the important events taking place at this year's show and highlights some changes and opportunities. So, buckle up. We are counting down to IPC APEX EXPO 2024.
- 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
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
RTX Introduces the Collins Airport Surface Awareness System
05/10/2024 | RTXCollins Aerospace, an RTX business, introduces Collins’ Airport Surface Awareness System for real-time tracking, monitoring, and recording of both aircraft and ground support equipment at airports.
Airbus Finalises Acquisition of Aerovel and Its UAS Flexrotor
05/10/2024 | AirbusAirbus has finalised the acquisition of U.S.-based Aerovel and its unmanned aerial system (UAS), Flexrotor, in a move to strengthen its portfolio of tactical unmanned solutions.
Lockheed Martin Receives $451M to Upgrade Additional US Army and International M270 Launchers
05/10/2024 | Lockheed MartinThe U.S. Army awarded Lockheed Martin a $451 million contract to recapitalize additional M270 systems expanding its domestic fleet of launchers and providing upgrades for global partners.
BAE Systems and Eaton Expand Collaboration to Deliver Electric Drive Solutions for Heavy-Duty Trucks
05/08/2024 | PRNewswireBAE Systems, a leader in electric propulsion, and Eaton, a global power management company, are expanding their collaboration to include electric vehicle (EV) solutions for heavy-duty trucks.
OSI Systems Receives $6 Million Order for Electronic Assemblies
05/08/2024 | BUSINESS WIREOSI Systems, Inc. announced that its Optoelectronics and Manufacturing division has received an order for approximately $6 million to provide electronic assemblies to an advanced engineered solutions OEM.