Business Model

• Customer sells inventory to CPW
• CPW commits to service level
• Slight premium over repair price
• CPW responsible for all inventory planning and asset management
• Customer responsible to return cores
• Monthly core reconciliation

Implementation

• All defective inventory is sold outright to CPW
• Customer bleeds off excess working inventory
• CPW purchases inventory to buffer safety stock and to support demand spikes
• CPW pays customer core credit for any excess defective cores received

Summary

• Customers recovers inventory asset dollars immediately
• Customer no longer has to depreciate service parts inventory
• Customer can rely on guaranteed fill rates
• Customer receives substantial discount from outright spare price