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. EDX leverages a global sales infrastructure that is backed by over 25 years of global commodity management expertise. We combine experience and technology with a proven process that maximizes ROI on excess inventory.
Our simple 5 stage process has been proven to work by some of the largest companies in the world. EDX guides customers through each step from the initial recommendation report, all the way through to facilitating a lot bid after exhausting all sales and marketing efforts.
We combine our big data of over 25 million unique electronic components, semiconductors and peripheral products with the experience of trained product specialists to provide an Excess Inventory Recommendation Report.
Here is some of the information you will receive in the Excess Inventory Recommendation Report.
Click here to submit your excess list and receive your Free Excess Inventory Recommendation Report. firstname.lastname@example.org
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.
Once the inventory is received, EDX begins a robust marketing strategy that includes marketing on platforms that are indexed by Google and all major search engines. This maximizes exposure to potential buyers that are looking to purchase your specific parts.
We use information from our big data to maximize the resale, at the point of sale. EDX will handle all sales, 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.