June 7, 2017

Long Term Storage of Critical Components – An Obsolescence Management Case Study

 The Client

Our client is a manufacturer of high quality machine tools for sale to both commercial markets and the general public.

The Challenge

The client produces a wide range of equipment to fulfil many different functions and much of this equipment is based on a similar set of control board circuitry. The high quality of their products allows them to offer extended warranties on their products as they are confident in their equipment’s ability to function for many years. In support of these extended warranties on their wide range of equipment, the client need to retain large numbers of specific components that are crucial to the function of their equipment. Our client needed to be sure that they could access these specific items at very short notice, and that they were insulated from any risk if the manufacturers of these items were to end their production.

The Solution

The client understood that they needed specialist facilities in which to store their electrical components to remove the risk of degradation of the circuitry, but also allow them to call off items for production at very short notice. The client recognised that CMCA(UK) are specialists in Long Term Storage and contacted CMCA(UK) to develop a bespoke strategy that would accommodate their business needs. CMCA(UK) took delivery of the electronic components from the client and placed them into long term nitrogen storage at two geographically disparate sites. Storing them in nitrogen rich environments removed the risk of oxidation of the components and ensured that they were ‘time-locked’, meaning that they would be able to be removed at any given time and be in the same condition as the day they were stored. The additional benefit of storing them at two sites adds further insulation from risk, meaning that if one of the sites were to be taken off line, CMCA(UK) would still be able to provide the client with the components required to meet the warranty commitments made to their clients. In addition, the client worked with the procurement experts at CMCA(UK) to ensure that they were able to source more components at short notice to allow for changes in demand. CMCA(UK)’s procurement team were responsible for sourcing specific components as requested by the client and having them placed into storage with CMCA(UK). In this way, the client was able to secure their supply chain and ensure their products, and, therefore protect their brand from being adversely affected by obsolescence.

The Benefits

The immediate benefits to the client were that their supply chain risk was greatly reduced. Knowing that they have a store of components available at very short notice, and a team of experts who can source many more if required, allows the client to continue their business uninterrupted. Additionally, having the components stored in controlled environments allows the client to make large purchases, taking advantage of wholesale prices, and store the items long term without risk of degradation.

Why Choose CMCA(UK)?

Clients choose CMCA(UK) for many reasons, the most compelling of which are:

  • We are a company that specialises in Obsolescence Management, Procurement and Long Term Storage solutions. It is our business to provide cost-effective, knowledgeable advice to our clients: after all, our excellent reputation depends on it.
  • When it comes to Obsolescence Management, we pride ourselves on being innovative and progressive in our quest to develop practical, bespoke solutions.
  • The client has access to market-leading strategic and tactical Obsolescence Management advice. This allows their In-Service Support team to focus its attention on the plethora of other engineering challenges, safe in the knowledge that obsolescence is being managed by the experts.

Need advice? please contact:

 Andy Davis

Senior Business Development Manager

Tel:  +44 (0)1905 458 307

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