Inventory Exit Solutions Case Study: Medical Device Manufacturer

Case Study

Inventory Exit Solutions Case Study: Medical Device Manufacturer

Like many OEMs, excess inventory management was not a top priority for this manufacturer of medical devices. Excess inventory is inevitable due to inefficiencies that are present in all supply chains. At some point though, every company, including this OEM, is faced with how best to recapitalize the disposition.

Initially, this OEM made efforts to sell their excess inventory in bulk by obtaining lot bids. The process sounded easy; however, the bids were extremely low: in the 4 to 6 cents on the dollar range, which was much too low for this OEM.

The OEM reached out to EDX for a solution. EDX’s first step was to perform an inventory recommendation report. Utilizing EDX’s big data that tracks over 25 million components daily and has almost 8 billion rows of historical trending data, the recommendation report revealed that a large portion of the list was saleable.

The OEM and EDX entered into a revenue sharing consignment agreement. EDX paid for the shipment of excess inventory and took delivery at one of EDX’s climate controlled warehouses. The inventory was inspected and a reconciliation report was provided.

To maximize the return EDX utilized a unique, targeted marketing approach leveraging several platforms and a global sales infrastructure that is backed by over 25 years of global commodity management expertise.

Our customer concluded that EDX’s Asset Recovery service not only returned multiple times in revenue what the lot bid offered, the process was simple. EDX handled all the administration, warehousing, logistics, sales, and account receivables, a full turnkey solution.

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