In an effort to reclaim a portion of their working capital tied up in excess inventory, Fortune 500 company and healthcare industry trailblazer Baxter International recently sought the expertise of EDX Supply Chain Solutions.
But like many large-scale manufactures who wish to push the boundaries of their industry, Baxter occasionally struggles to combat minor supply chain inefficiencies, such as the accumulation of excess inventory, that can result in financial strain.
Excess can be resold through open market exposure or a lot bidding system, but organizing these transactions often comes with complications. Selling excess inventory can be an intricate and time-consuming process, and one many OEMs and and EMS providers are simply unequipped to handle. Without an experienced marketing team capable of analyzing market trends and product availability, it’s nearly impossible for manufacturers to fully recover monetary assets, free up working capital, and maximize return on investment.
If an OEM opts for a lot bid to rid themselves of excess inventory quickly, the losses can be even more significant. In fact, it’s not uncommon for OEMs to write off their inventory at a 95 percent loss.
Resolving this fundamental supply chain inefficiency is the basis of EDX’s Inventory Exit Solutions.
Starting with a detailed Recommendation Report provided to the seller at no additional charge, our experienced team of supply chain specialists can identify the state of the market for over 25 million unique electrical components. With the aid of EDX subsidiary Partstat – an open-access Big Data warehouse consisting of over 8 billion rows of current and historical data – we compile real-time market information to determine which parts can return a sizable profit, and which parts can be immediately scrapped.
Once the report has been compiled, and the inventory is inspected and safely stored in our climate-controlled warehouse, we immediately get to work marketing the relevant inventory on dozens of paid industry subscription services.
Unlike similar consignment services, EDX’s Inventory Exit Solutions are offered on a strict revenue-sharing model. If the inventory does not sell, we charge our customers nothing. This incentivizes our team to provide industry-leading services that put the customer first, hold EDX fully accountable, and ultimately benefit all parties involved.
Supply chain burdens such as excess inventory management might not be enough to push an OEM’s profit margin into the red, but if ignored, it can prevent industry innovators from reaching their full potential. It’s the efforts of valuable partners like EDX that allow companies like Baxter to continue pushing for new technologies that save, improve, and sustain countless lives.