A leading aerospace manufacturer utilized four configurations of solid-state switching devices in production. The OEM encountered an unexpected Last Time Buy notices for all four variants required for seven years’ worth of inventory, and consequently, needed to place a Last Time Buy for $19.3M worth of devices.
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 seven-year delivery schedule to support the OEM.
The OEM preserved $19.3M of working capital, lowered annual inventory carrying costs, secured inventory for seven years, reinvested capital into winning projects, and locked in component costs.