A leading aerospace manufacturer utilized a solid-state drive flash memory in production. The OEM encountered an unexpected Last Time Buy notice for this critical component required for five years, and as a result, needed to place a Last Time Buy to meet demand.
The aerospace OEM approached Partstat to assist with the LTB purchase. Luckily for the OEM, Partstat was an authorized reseller of LTB components for the component manufacturer they were utilizing. Through an Inventory Ownership Solution, Partstat placed the Last Time Buy directly with the component manufacturer. The OEM and Partstat entered into a supply agreement. Partstat provided a five-year delivery schedule to support the OEM.
The OEM preserved $690K of working capital, lowered annual inventory carrying costs, secured inventory for five years, reinvested capital into winning projects, and locked in component costs for the entire term.