The Relationship Between BOM Monitoring and Last Time Buys
At Partstat, we believe that disruption can’t be consistently overcome without taking a broad picture view of the full lifecycle of an OEM product. This includes every step from inventory procurement, to the point of assembly, to the inevitable transition toward obsolescence. This is why all of the solutions Partstat offers, while valuable on their own, reach their full potential when used in tandem with one another. The services one solution provides better inform the decisions made with the other solutions.
One of the clearest examples of this involves the intricate relationship between BOM Monitoring and Last Time Buys. By leveraging 50 billion points of Big Data on over 21 million electronic components and semiconductors, BOM Monitoring customers have a unique ability to not only view the trending history of any given part, but predict allocation and obsolescence-based disruptions before they occur. By using complex algorithms that analyze data such as average lead times, average price, and average inventory quantities, customers get a window of opportunity to either find a new component supplier, or place an order large enough to sustain their production plans for as long as necessary. At this point, a last time buy becomes a possible, or even likely, course of action.
How the relationship begins: Partstat BOM Monitoring will inform a customer of impending obsolescence the moment a PCN is issued and even provide real-time confirmation of lifecycles with the help of a personal BOM Monitoring Specialist — by taking advantage of the tool’s trending charts, customers have the ability to track whether lead times are increasing to unmanageable levels, or see if inventory quantities are decreasing to the point where prices could escalate due to competition. There are a thousand different scenarios that could occur that might raise a red flag, but BOM Monitoring ensures that all of this can be easily tracked and understood by all parties long before the rest of the market is aware there is a potential issue.
Once the decision is made to place a large-scale order, the Last Time Buy Solution comes into play. The disadvantage of large orders such as last time buys is the large amount of upfront working capital that is required. This is particularly an issue for contract manufacturers, whose narrow margins make such short-notice purchases difficult. The Partstat Last Time Buy Solution eliminates this problem by paying for the entirety of the purchase using Partstat’s own capital. This way, any plans for that capital, such as expansion or new hires, do not have to be compromised just because an unexpected last time buy was needed.
And for those who cannot sacrifice their limited warehousing space to store last time buy inventory for an extended period of time, Partstat will also use its best-in-class storage facilities to house the inventory on the customer’s behalf. As soon as the inventory is needed, Partstat’s experienced team will then pack and ship the inventory anywhere in the world.
In essence, one solution seamlessly leads into the next. BOM Monitoring dictates when a last time buy may be necessary, and the Last Time Buy Solution takes care of the rest without any of the issues typically associated with the last time buy process. Both are necessary to avoid disruption, and Partstat is the only place you can find them together!