Stock and Release Program | Busbar Sourcing

Inventory at Storm Power Components
Stock and Release Program

Vendor Managed Inventory

Our stocking program allows customers to place a blanket purchase order and receive products over a period of three months.  Orders are not invoiced until they are shipped from our facility.  Using forecasts and planning ahead with blanket purchase orders allows manufacturers the benefit of better quantity breaks and shorter lead times. Stocking plans require pre-approval and are subject to credit approval, material availability, and the terms below.

The Benefits of Stocking

  • Better Price Breaks
  • Mitigate future supply chain disruption
  • Faster Leadtimes. (after initial build)
  • Allows more accurate forecasting for sub-suppliers


Example of how it could work...

Standard order
150 pc order every 3 weeks                              $7.50 /ea                           $4500.00
Standard Order 150 pc
Standard Order 150 pc
Standard Order 150 pc
Standard Order 150 pc


Stock and Release order with Agreement
600 pc order every 3 months                            $5.50/ea                             $3300.00
Stocking Release shipment 150 pc
Stocking Release shipment 150 pc
Stocking Release shipment 150 pc
Stocking Release shipment 150 pc

Three fewer setups cut the part cost by $2/ea.


Terms and Conditions:


Seller agrees to the following:

• Seller agrees to build the total quantity requested for 90 day period.
• Seller agrees to hold agreed upon stock for the mutually decided timeframe.
• Seller agrees to sell agreed upon stock to no other customer at any time for any reason. Seller will
ship to a different location only at Buyer’s written request.
• Seller agrees to provide regular updates on remaining stock and time period remaining.
• Seller agrees to notify Buyer immediately if any issues arise with production, stocking or shipping of


Buyer agrees to the following:

• Buyer agrees that no revision changes may be made during the duration of the agreement. (See
Terms and Conditions for exceptions).
• All stocking plan agreements must be submitted 45 days before each quarter and will expire at the
end of the quarter. If this deadline is not met the customer must wait until the next quarter to
• Buyer agrees to send releases with dates at least 2 days out.
• Buyer agrees to submit releases based on MOQ established by Seller.
• Buyer agrees to notify Seller of any holiday/inclement weather business closures.
• Buyer agrees to allow adequate start up time for stocking program. (See Terms and Conditions).
• Buyer agrees to a shipping tolerance of ± 5% of total parts.


Terms and Conditions:

1. All stocking plans will have a start and end date, not to exceed (1) calendar quarter.
2. Stocking purchase orders are non-cancellable. If Buyer must cancel for any reason, Buyer agrees to
accept immediate shipment (within 2 weeks) of all current inventory as well as any stock parts
currently in production.
3. If changes are made to the quantity levels of a stocked part, the part will become regular
production and re-priced accordingly.
4. ECN changes will not be made during the duration of the stocking agreement. If ECN changes must
be made, current stock (including WIP) will be shipped to Buyer before new stock at new Rev is
5. There must be movement of each part on stocking program at the end of every calendar quarter.
6. Pricing is based on the optimum build quantity {determined by Seller}, not the full order quantity of
blanket purchase order.
7. There will be a 6 week ramp up period for material acquisition, manufacturing and stocking of
agreed upon product. This is contingent upon material availability from the mill and/or any special
tooling requirements.
8. If any issues arise with the quality of stocked parts, Buyer will contact Seller immediately to discuss
action plan. Buyer will not return product to Seller without a valid RMA number.
a. Seller reserves the right to suspend shipment of stocking parts until Quality Review has
been completed.
b. Buyer will not be required to issue release purchase orders during Quality Review.
9. At the end of the agreement term, Buyer understands that all remaining inventory previously
agreed upon must be shipped to the Buyer within 2 weeks of ending date, with or without a release
purchase order.
10. There will be a 2-day grace period for all release shipments. Buyer understands that product will
ship within 2 days of requested ship date (before or after) without penalty to Seller.
11. All items are quoted in USD and subject to COMEX adjustments at time of shipment. Due to Storm’s
FIFO accounting practices, COMEX will be adjusted from prior months COMEX price, or subject to
change by Storm’s average inventory cost.