Last Time Buy

 

Managing Last Time Buy (LTB) Scenarios

Tachus Technologies can help you better manage Last Time Buy (LTB) situations when parts suddenly go End-of-Life (EOL) and you urgently need to execute an LTB in order to sustain the legacy product. Traditionally, custom product minimum order quantities (MOQs) are quite high. Therefore, longer lead times (up to 16 weeks – built to order) are often required, making both demand forecasting and end-of-life inventory balancing difficult. If any of these processes are not executed well, over-ordering may lead to excess inventory and ultimately scrap. 


Tachus offers a 5-step process to mitigate EOL risk and/or supply chain disruptions:

1. Negotiate with OEMs to see if continued production can be secured or the LTB date can be extended.
2. Aggressively investigate and qualify alternate component options.
3. Search obsoleted parts leveraging formal distribution, brokers, and/or other excess material sources. This legwork is executed through our global strategic relationhips (Note: Tachus opposes the use of counterfeit parts).
4. Reverse Engineering:  This option delivers a part that will never go obsolete and cost savings obtained within the first year (certain conditions apply; NRE charges apply).
5. Execute cost benefit analysis for LTB versus Redesign/Refresh options.

 

For more information on how Tachus Technologies can make your Last-Time-Buy scenarios more manageable, please Contact Us.