preferred order process will be:
Customer to provide a firm order to VTech for at least three
months and rolling forecast for at least six months.
2. Order quantity and delivery schedule in first two months
are not preferred to be changed significantly, as all material
and capacity plans had been allocated.
3. For Upside order/forecast, VTech will try the best to
achieve the upside by pulling in the material order from
4. For Downside order/forecast, VTech will carry the inventory,
customer will be required to be responsible for the unique
material used after a period of time if there is no order
to consume the material.
5. VTech can provide 'build to order' service to their end
customer based on requirement.
6. Partial shipment of each order can be done upon request.
7. Further flexibility in order variance can be discussed
on a case by case basis.
Reducing lead times is critical. The supply
lead times will be greatly affected by the component lead
times. With the order and forecast system in place, VTech
can plan to have material come in time based on the schedule.
For sudden or urgent order requirements, VTech
works with customers to get an agreement to purchase a buffer
inventory of long lead items (lead-times longer than 8 weeks).
Hence those order lead-times can be reduced to 10 weeks
(8 weeks for short lead item plus 2 weeks production) if
the buffer inventory in place. The long lead item inventory
will be refilled automatically. The customer will be required
to be responsible for those items that are unique to the
product with no consumption ultimately.
VTech will be quite flexible to fulfil customer's
requirement for inventory management. VTech can help to
stock inventory as VTech has warehouses and facilities in
Mainland China. VTech can also discuss a 'build to order'
system with the customer and its end customers to reduce
full assemblies or components inventory. An on-site inventory
management system is also possible. It is possible to have
VTech to maintain a buffer stock on site and establish a
push-pull system to delivery finished products.
VTech is using an EDI system with some or our
customers and suppliers. Intranet within the VTech organisation
is established. VTech is now enhancing the platform to include
all supply chain elements and part of the data will become
visible to our customer through the Internet, e.g. order
tracking, testing data, etc. The first stage will be completed
in 6 months and further enhancement problem is committed
within the coming 2 years.
Our on-time shipment or delivery percentage
was over 95% in the past 12 months. VTech measures this
on-time delivery based on the shipment commitment VTech
provided when VTech received the order request from the
VTech have global distribution locations that
would service our customer and their global customers:
For manufacturing locations:
Dongguan, China - with over 3 Million
Square feet Manufacturing and Warehouse Area
For Distribution locations:
- Hong Kong