When facing a Last Time Buy as part of PLM (Product Lifecycle Management) services, manufacturers are usually forced into procuring material in support of their customer’s legacy product requirements significantly above acceptable or desired on-hand inventory levels. This can mean appropriating substantial working capital to secure stock, incurring cost of money expense, and allocating time/resources to manage movement of goods, warehousing and storage.
Additionally, as demand signals invariably adjust to reflect changing market conditions the manufacturer may be faced with the additional responsibilities of mitigating material excess positions on behalf of the customer; thus spending even more time and resources on non-revenue generating activities.
With our LTB program, Classic can structure a cost effective alternative solution to managing your organizations Last Time Buys supported by our global warehousing and logistics capabilities. By partnering with Classic our customers are able to:
- Free up critical working capital for other organizational initiatives
- Reduce cost through enhanced workflow efficiencies
- Minimize labor costs associated with managing inventory
- Optimize ROA (Return on Asset) through timely identification/disposition process
- Reduce cost of capital by blending direct/indirect procurement
- Ensure Quality Conformance of product through reliable sourcing channels
To learn more about our Last Time Buy program solution, please click here to contact our Materials Management Group.