What Is Die Banking?

By Logan Wamsley

Die banking is a process through which raw die and wafer is stored by a manufacturer until it is required for ASIC assembly. Because of its ability to keep manufacturers from continuously re-entering the marketplace, die banking is a great way to help avoid price increases, extended lead times, and many kinds of supply chain…

Price Inflation Concerns Are Real. Are OEMs Ready for the Fallout?

By Logan Wamsley

Although price inflation is a risk that can be seen on a micro level with individual components, there is a growing amount of evidence that a broader inflation trend may be on the horizon. A large number of consumer-facing companies and wealth investors — including Warren Buffet — have already experienced shortages of critical inventory…

The Hidden Fees Behind Inventory Carrying Costs

By Logan Wamsley

No manufacturer is under the delusion that warehousing inventory for any length of time comes without inherent costs. But as terms continue to increase, many manufacturers are surprised by just how quickly they accumulate, and how many different forms they take. Inventory carrying costs represent somewhat of a catch-all term, and can be associated with…

The Need for ROIC: How Partstat Works to Save OEM Working Capital

By Logan Wamsley

The costs of last time buy inventory go far beyond the initial cost to acquire it; in fact, according to a recent survey of equipment manufacturers, the annual costs of carrying inventory alone are, on average, greater than 21% the original cost of the product. Despite this reality however, the need to acquire last time…

Making a Last Time Buy? Consider Your Inventory Storage Needs

By Logan Wamsley

When it becomes clear that an OEM must make a last time buy to preserve the continuity of its business model, there are often several hang-ups that result in either delays or outright rejection of the last time buy plan altogether. One of these is the discovery of how much working capital it might take…