Critical Inventory Storage Case Study

Case Study

Critical Inventory Storage Case Study

A large manufacturer of business devices (OEM) utilizes Application Specific Integrated Circuits (ASICs) in the production and service of their products. The OEM’s products have very long life cycles that required extended service support. The OEM purchased several years supply of a particular ASIC in both its finished and die form. The inventory was stored at one of the OEM’s warehouses with the plan to fulfill to their Contract Manufacturer (CM) who was providing both production and service support.

The OEM recognized that their core competency was not warehousing and fulfillment. Further, they lacked the proper infrastructure to store and handle ASICs in wafer and die form. In addition, the OEM was concerned about business continuity and protecting their downstream production and service revenues.

EDX’s Critical Inventory Storage Solution was able to alleviate the OEM’s concerns. The solution included storage of these irreplaceable ASICs in the EDX Vault. This vault, located at EDX’s Winter Springs (Orlando) Florida location, has an 1100 pound door and is rated at three times the strength of a normal building. As the name implies, it is fireproof and is also earthquake proof, hurricane proof, is magnetically shielded and is climate controlled. The vault system was recently rated “best in class” for raw material storage. Further, the Vault contains EDX Dry Cabinets for the proper storage of wafer and die.

With EDX’s ISO and AS certified processes and protocols in place; fulfillment to the OEM’s CMs was properly implemented. EDX also offered their ability to perform third party billing to the CM and accounts receivable for the OEM.

The OEM computed that EDX’s Program actually saved them money in comparison to their own infrastructure and administrative costs. In addition, the OEMs concerns about business continuity were alleviated with the knowledge that their downstream revenues were protected within the EDX Vault.

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