The EDX Critical Inventory Storage Solution Can Save OEMs on Annual Carrying Costs: Here’s How

When speaking to a potential customer about the benefits of our Critical Inventory Storage Solution, the most common questions we receive boil down to three distinct categories:

What: What is our solution, and what kind of critical inventory are we equipped to securely store?

Where: Where will the inventory be stored, and will we be capable of fulfilling it anywhere in the world at their behest?

 

How: How can storing critical inventory through EDX be better than what they could do themselves?

The first two categories are straightforward to answer. With desiccant ECD SmartDRY™ cabinets and the supply chain industry’s only custom storage vault at our disposal, EDX is equipped to store even the most sensitive electronic components with ease — including the raw die and wafer necessary for ASIC assembly.

As for the “where,” our response is an emphatic YES. Not only can we guarantee that we can safely fulfill inventory anywhere our customer requires it in accordance with our ISO:9001 certification, but we can do it on a long-term fulfillment schedule personalized for you.

Answering the “how,” however, requires a slightly more nuanced response. Over the past 26 years, EDX has had the pleasure of partnering with some of the largest and most accomplished and innovative manufacturers in history including GE, Philips, Boeing, Harris, IBM, and HP. The claim that EDX has the capabilities to store critical inventory better than these acclaimed companies strikes many potential customers as dubious at best. How can we possibly save customers on carrying costs when these billion dollars companies are obviously capable of doing it themselves?

To explain, consider the benefits of incorporating ASICs into an OEM product. Application specific integrated circuits, unlike general circuits, are custom-designed from the ground up for a single unique purpose. Unshackled from the need to craft a component that provides everything to everybody, OCMs are free to push the limits of what a single circuit is capable of in terms of power and efficiency versus size. ASICs do one job, but they do it incredibly well, thus allowing OEMs more leeway to provide new levels of innovation to a competitive marketplace.

The business model of EDX operates in very much the same way. Manufacturers fund their endeavors, from design to production to component storage, from the same pool of working capital. To invest in one means to cut funding from the other — and as a result, manufacturers force themselves to walk a precarious tightrope that requires detailed forethought into where their priorities truly lie. Can industry-leading OEMs store their own inventory? Of course they can, but what are they sacrificing by doing so?

Our Critical Inventory Storage Solution is designed for OEMs who deem that their priorities should lie not on the side of storage costs, but on the side of innovation. We are not in the manufacturing business; we are in the supply chain business, and that streamlined focus has allowed us to offer a storage infrastructure that is more secure, efficient, and cost-effective than anything else on the market.

Unlike our OEM partners, we don’t have to sacrifice innovation in the name of carrying costs, because critical inventory storage is our innovation. Critical Inventory Storage is what we do, and as our customers have seen, we do it incredibly well.

Leave a Reply