Supply Chain Update

Placing forward orders gives us time to secure raw materials, book production slots and, where necessary, source alternative materials so we can minimise delays and reduce the risk of stock‑outs.

Forward orders improve your supply security by locking in demand earlier in our planning cycle, which helps us allocate limited materials fairly and avoid last‑minute shortages. They also give you better visibility of potential delays and allow us to work with you sooner on options if a particular material or product line is under pressure.

EPL’s Sales and Operations Planning (S&OP) process is the core mechanism used to balance customer demand, production capacity and raw‑material purchasing, so that supply is protected without over‑buying at the peak of the market.

At EPL, S&OP is a structured, cross‑functional process that brings together Sales, Operations, Supply Chain, Finance and Customer Service to review demand and supply on a regular cadence.

Each week, the team:

• Reviews updated customer forward orders and quote pipeline to build a consolidated view of demand by product, customer and time period.
• Compares this view with current finished‑goods inventory, work‑in‑progress and raw‑material stocks to identify any potential gaps or surpluses.
• Agrees production plans and sequencing that best utilise available capacity while protecting critical customer requirements and export commitments.

This weekly rhythm allows EPL to respond to changes in customer demand, supply‑chain disruptions and market conditions, rather than relying on static annual or quarterly plans.

Taking a long‑term view on raw‑material purchasing

A key principle of EPL’s S&OP process is to avoid buying raw materials at the very peak of the price cycle wherever possible. Rather than reacting to short‑term spikes, the team:

• Looks at price and supply trends over a multi‑month horizon.
• Uses customer forward orders to phase purchases over time, smoothing exposure to extreme highs.
• Balances the need to secure supply with the risk of locking in excessive high‑cost inventory.

By taking this longer‑term view, EPL aims to protect customers from the worst of the volatility while still ensuring that critical materials are on hand when needed.

If you would like to discuss your forward orders, alternative options, or any concerns about upcoming projects, please contact Brian, Sam, Melissa, Janine or Gareth. We are committed to working with you through this period and to minimising disruption to your business as much as we can.

EPL has always operated a forward‑stocking model: A forward‑stocking model is a supply‑chain strategy where a manufacturer builds and holds inventory well in advance of actual customer demand, based on forecasts and current purchase orders.

That’s why EPL is asking for forward orders: the forward‑stocking model depends on early, transparent demand signals from customers.

Without a reliable forecast, we can’t determine how much raw material to order.

The escalating conflict in the Middle East has disrupted the global flow of resin and other polymer feed‑stocks.

• Ocean transit has been rerouted around the Cape of Good Hope, adding 8 – 15 days to voyages that previously came through the Suez Canal.

• Port congestion in key trans‑shipment hubs (Singapore, Colombo, Durban) is now 2‑3 weeks longer than normal.
• Raw Material Suppliers have already halted new booking windows for Q3‑Q4 2026 resin orders and imposed strict allocation limits on existing customers,

Our raw materials are sourced from a diversified group of suppliers across Asia, the UK, North America and Australia. This global spread helps us manage risk and support continuity of supply over the long term.

The Conflict Surcharge is a separate line item that allows us to clearly show extraordinary, conflict‑related increases in freight, insurance and raw‑material costs, rather than permanently loading these into base product prices. It is intended to be temporary and will be reduced or removed as conditions stabilise and costs normalise.

From 1 May, the Conflict Surcharge is 12.5% on eligible orders. Up until the 30th of April the conflict surcharge had been 9.5% This increase reflects the continued escalation in raw‑material costs we are seeing from our suppliers. The surcharge level will continue to be reviewed regularly and may move up or down as underlying costs change.

Yes. Wherever possible, the Conflict Surcharge is shown as a distinct line item on quotes, order acknowledgements and invoices so you can clearly see the impact of conflict‑related costs. This helps keep base product pricing more stable and makes it easier to track when the surcharge reduces or is removed in future.

The applicable Conflict Surcharge rate is shown on your Sales Order Acknowledgement, as well as on the final invoice where the surcharge applies.

No. The Conflict Surcharge is a temporary measure introduced to recover extraordinary conflict‑related increases in freight, insurance and raw‑material costs. It is not intended to become a permanent part of our pricing structure.