OEM retains ownership of inventory therefore no write off is needed. GPS provides basic inventory management with unlimited in and out transactions for a flat 3.5% annual fee based upon the total inventory value being managed.
GPS assumes ownership and management of inventory. OEM eliminates annual carrying costs but retains immediate availability. OEM only charged standard cost per item consumed – No annual storage costs or handling fees
Same as Standard program except GPS sells directly to your authorized distribution network or other 3rd parties. OEM receives promotional fee from GPS.
The OEM may use one or any combination of all programs. Inventory can be easily transferred from the 3.5 program to the Standard programs as your needs change.
Once the GPS Customized Exit Strategy is in place and OEMs begin depositing slow moving inventory into the Inventory Bank programs, they immediately start saving millions of dollars in inventory carrying and administration costs, while still retaining availability for long term product support.