Authorized Distributor Solutions

We offer authorized distributors two strategies that will reduce inventory and improve free cash flow.

Inventory Reduction Strategy

Partstat will convert inventory to immediate cash by purchasing inventory off your balance sheet and moving the obligation to your OEM customer (avoid SOX issues).

This enables authorized distributors to provide OEM customers extended terms, save on annual inventory carrying costs, and improve free cash flow.

Go-Forward Strategy

When last time buy dates are issued, we will use our own capital to purchase all EOL inventory, direct from the manufacturer. This enables authorized distributors to provide OEM customers an extended payment program up to 20 years, while improving free cash flow.

Advantages

• Preserve Working Capital - Partstat has preserved over $250M of working capital for our customers.
• Recover Working Capital & Improve FCF - Partstat will purchase inventory owned by authorized distributors and convert the inventory to cash.
• Reinvest Capital into ROIC - Reinvest capital that would have been spent on inventory into ROIC.
• Move Purchase Commitment to Your OEM - Reduce inventory by transferring the obligation to purchase inventory to your OEM.
• Support Long-Term Platforms - Provide your OEM customers support by using Partstat to secure inventory for long-term platforms.
• Eliminate Component Price Inflation - Eliminate PPVs with OEM customers. Once we purchase the inventory, all prices are locked in for the entire term of the agreement.
• Improve Margins - Consolidate purchases and use our capital resources to execute bulk purchases to drive discounts to improve margins.
• Ensure Business Continuity - Always stay ahead of supply chain risks and support your customers throughout the entire lifecycle of their products.

Case Studies