PSI is a provider of contract manufacturing with full turnkey service. We provide all-round solution for our customers. The main business types of most PSI customers are middle or low volume production and others. In order to meet the demand of urgent and various orders coming from customers, PSI added the 5th SMT line, so as to meet the production capacity. Purchasing team should pay more attention on supplier lead time management. Now, let me show you the supplier lead time managing process.

1. MRP system will calculate production quantity of demand and generate PR for purchaser to place an order. Once PO is released to suppliers via fax or email, suppliers will confirm the reception of PO by the replying the email or faxing.
2. Suppliers ship date of passive component is informed within 3 days, and that of the active component is informed within 7 days.
3. Because of the difficulties of PO tracking caused by plenty orders and suppliers, we plan to create un-shipped list from ERP automatically. Via the simulated shortage report, each supplier can confirm and control ship date more quickly and accurately. Therefore, the un-shipped parts list is an important report for PSI communication with its suppliers every two weeks
4. Due to low volume and high mix production mode, Department of Material Control (MC) also plays a very important role. Everyday MC finds out none-conformable parts 7 days before the kitting date, and the purchaser will trace the ship date accordingly.
5. Purchaser tracks the shipment 3 days before the kitting date by email, Skype, and telephone. Any non-conformable parts will be informed to the related departments.
6. Purchaser should re-confirms shipment state on kitting date.
7. Purchaser and MC hold a regular meeting every week with customers and factory to confirm material status. And after the meeting they provide the customers a report for reference, which assists production arrangement.

Through tracking and controlling at every level, we hope to get on-time delivery from suppliers, and smooth production, test and shipment arrangement for factory. To let factory keep producing without stopping is the goal for all purchaser to make efforts to. To obtain clients' trust and compliment is the biggest motivation for all purchasers to move forward.