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Partstat Case Study

Thermal Imaging: End-of-Life/Last Time Buy

Quick Summary

  • Capital Preserved: $5.7M
  • Partstat Savings: $1.9M
  • Term: 9 Years

A leading manufacturer of thermal imaging devices utilized an ASIC in production. The OEM encountered an unexpected Last Time Buy notice for nine years’ worth of inventory and consequently, needed to place a Last Time Buy for $5.7M worth of ASICs.

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 nine-year delivery schedule to support the OEM.

The OEM preserved $5.7M of working capital, lowered annual inventory carrying costs, secured inventory for nine years, reinvested capital into winning projects, and locked in component costs.