The challenge of supporting long-term and legacy programs is perhaps one of the most difficult for our customers. They manufacture finished goods or parts in anticipation of multi-year requirements that may, or may not, actually materialized. In the meantime, they assume considerable costs in the proper storage, stocking, tracking and overall management of legacy product, which consumes countless hours of personnel time as well.
Many manufacturers are forced to excess legacy product after a period of time, even though the product is needed to support internal demand that spans many years. Harry Krantz Company works with customers to excess their legacy program product to us for safe keeping, sale and, when needed, redistribution back to the customer to meet production requirements.
Flexability to Scale to your Needs
A related challenge is the customer who sells whole systems and assemblies, but receives requests for small or piecemeal purchases that are simply not worth their time. What might be a nuisance purchase to our customers is often ideal for us. When Harry Krantz Company is given sole source authority on your behalf, we can act as your distributor, secure additional product from the manufacturer or sell the product and pay a licensing fee to you
Our ability to wrest profit out of component or piecemeal inventory is a valuable asset to customers focused on large orders and assemblies. We have the storage capacity, sophisticated inventory tracking tools and the pulse on what the market is buying and selling, and are better able to absorb the expense and management of your inventory because it’s what we’ve been doing day in and day out for more than 70 years. The fee for our service is less than your operational and opportunity costs, but with the upside of greater flexibility and profit potential.
Profiting on product in diminishing demand
By definition, legacy product decreases in its profit potential from day one, even as the need for the product stretches over many years. The cumulative costs of holding and managing that inventory over time are substantial and often go unaccounted.
At Harry Krantz Company, we specialize in turning legacy product into profits. Customers work with us to set aside future need for legacy material and we bring the balance to market, sharing profit with the customer. Our approach provides customers with the best of all possible worlds:
- Flexibility to consign partial inventory
- Cross-program visibility and internal traceability
- Inventory buffering and forecasting
- Strong knowledge of both supply and demand side of markets, which translates into knowing when to sell product for optimal profit
- Reduced costs for managing legacy product
- Safe keeping of customers’ legacy product for their future use
In addition to our distribution and fulfillment services, Harry Krantz Company provides die banking, storage, remanufacturing, crossing and viable substitution for obsolete parts. |
| |
|
|
|
