Our customers make products that have long life cycles, usually beyond 10 years. However, the semiconductors, electronic components and computer products that are used to make up these products, have much shorter life cycles. We support our customers by securing multiple years of these components as they are obsoleted by component manufacturers.
EDX is the only supply chain partner that will purchase, own, store and fulfill end-of-life components, beyond 10 years. This solution has proven to preserve working capital, reduce inventory carrying costs and improve business continuity.
If you have already purchased the Last Time Buy Inventory required to support your long-term production and service commitments, you can still take advantage of EDX’s industry-leading storage and global fulfillment capabilities. This will ensure that your already-owned critical inventory will be securely warehoused in an environment optimized for long-term electronic component storage, as well as available for shipment whenever, wherever, and however your production schedule demands.
Last time buys resulting from component obsolescence are one of the primary reasons OEMs find themselves requiring the purchase, warehousing, and long-term fulfillment of inventory, but they are not the only reason. The many benefits of our solution — including the preservation of working capital, savings on annual carrying costs, and industry-leading delivery schedules without term limits — can be applied to other common situations, as well. Below are just a few examples that illustrate how our OEM customers have taken advantage of this unique solution:
To stay ahead of price inflation, many OEMs opt to lock in today’s cost by making a bulk purchase of critical inventory upfront. Utilizing our solution for bulk purchases has also been proven to equip customers with the leverage required to negotiate significant discounts.
In some industries known for extended product life cycles, it is common for OEMs to offer customers regular onsite upgrade, repair, and maintenance services. To do so, however, requires OEMs to purchase minimum bulk quantities of Field Repair Units for services that may not be rendered for several years. Our solution offers customers the means to budget the costs associated with these units, as well as a storage infrastructure capable of fulfilling them as needed.
ASICs, in addition to the IP protection they offer, are the least expensive way to own inventory. Many OEMs, however, lack the proper infrastructure to properly bank moisture-sensitive ASICs in die and wafer form. Located in our vault, which features industry-leading fire and ESD protection, EDX’s desiccant EDC SmartDry ™ cabinets intelligently maintain a relative humidity as low as of 0.5%, making them ideal for long-term die and wafer banking.
Inventory Carrying Costs range between 15% and 25% annually. These costs include Capital costs, Service costs (insurance, handling, taxes) and Storage costs (warehousing, labor, administration)