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Market Intelligence

The general order plan can be divided into the following:

• Blanket Orders: where there is good visibility and very stable forecast, some customers like to issue orders as "one and done"...so they don't have to continuously monitor MRP's and wish to have confidence of smooth deliveries These type transactions generally are for deliveries over 6 months, or longer.

• SMI: also requires good visibility and reasonably good forecasts however, it provides some inventory flexibility (pull ins, push outs) and also provides for a degree of "buffer stock” to address project upsides. Normally, this transactions have durations of 1 year, or longer.

• Opportunity Buys: some customers have little visibility on their demand or, their demand changes dramatically from quarter to quarter so they prefer to commit only for short term immediate stock, to be shipped in its entirety, with no provision for us to maintain inventory on hand or any "buffer stock".

• Quarterly Buys: for customers who have a stable demand but do not wish to have inventory exposure beyond one quarter. Typically, they will buy 25% of EAU only, sometimes they will request monthly releases over this period.

Therefore, it is crucial to understand the current industry information at the first time and make flexible use of it in purchasing plan.We always grasp the global brand information of various components, and continue to provide customers with professional market intelligence, unique market insights and other value-added services to meet the diverse needs of customers.

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