Excess and obsolete inventory has several ways of negatively impacting the profitability of OEM and EMS companies. Excess inventory ties up working capital, preventing the ability to apply that capital more strategically. Working capital that has been invested in inventory, especially any excess inventory, has a negative rate of return and the longer it sits without an exit strategy, the more diminishing returns can be expected.
It’s worth noting, that excess inventory is usually sold off at large discounts. It’s not uncommon to see up to a 95% loss or write-off. This obviously has a negative impact on a company’s margin and, thus, its profitability.
Some of the largest brands in the world trust EDX to manage and sell their excess inventory.
Our Partstat big data platform of over 25 million unique electronic components, semiconductors and peripheral products drives our strategy for maximizing ROI on excess inventory.
Through this data, we can determine real-time market conditions for each part. These data points help us determine which parts are sellable through our service and how we can maximize resale value.
We then combine the data points with the experience of over 25 years of commodity management and infrastructure that leverages a global sales strategy.
We combine our big data from Partstat with the experience of trained product specialists that provide a line item analysis of your excess inventory.
Here is some of the information you will receive in the Excess Inventory Analysis.
Click here to submit your excess list and receive your Free Excess Inventory Analysis Report. email@example.com
We provide visibility of the excess inventory to your entire global footprint to try and eliminate double purchases. Through our customer online dashboard, companies can view current sales of their excess inventory and request inventory transfers.
Making your excess inventory visible to thousands of potential buyers on Partstat is at the top of our list to begin our robust marketing strategy for recovery. The inventory will be uploaded to the Partstat platform once received and inspected.
There are over 20,000 searches per day on Partstat from buyers of all types wanting to buy inventory from EDX customers. By design, Partstat is an open platform that is also indexed by the major search engines like Google, Bing and Yahoo. This maximizes exposure to potential buyers that are looking to purchase your specific parts, even if they are not using Partstat.
We use the information from Partstat to understand real-time market conditions for each part including current global availability, lifecycle status, factory lead times and more. This data helps our experienced sales team understand how to price your inventory, at the point of sale which is a crucial step in the recovery rate.
EDX will handle all sales calls, fulfillment, logistics, and provide a total reconciliation of shipping, invoicing, and payment collection.
In the final stage, after we have maximized your return utilizing our robust marketing strategy, we can facilitate a commodity lot bid process, in which we will auction off the remaining inventory to the highest bidders.
Our goal is to provide a full turnkey solution for excess inventory that is designed to maximize returns, improve working capital, reduce annual inventory carrying cost, and improve efficiencies in the supply chains of our customers.