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Efficient Procurement Inventory

Efficient procurement inventory (EPI) is often required to realize steep discounts when a special opportunity to procure arises yet requires a large purchase quantity to negotiate the deal. One of our clients is a large confectioners company. The main raw materials for their chocolate candy are sugar and cocoa. Using highly advanced weather forecasting systems and highly technical analysis of sugar and cocoa futures prices our client picks the optimal price point and time to buy mega quantities of both ingredients. Those mega quantities are housed in large storage facilities and are fairly quickly consumed in production. Since the shelf life for chocolate candy is fairly long and the risk of obsolescence is fairly low, these large buys and conversions are their most profitable inventory and supply chain strategy.

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