Classic Components explains how surplus components can be monetized through liquidation, consignment or direct purchase, turning excess inventory into value.
After the pandemic’s market volatility, independent distributors are assisting manufacturers by finding buyers for surplus inventory and offering creative financial solutions to reduce part costs.
When manufacturers faced tremendous lead times on parts, many double, triple or quadruple ordered since they did not know who was going to deliver first. Now all these parts have been delivered, some manufacturers have excess inventory and are not sure what to do with it.
If it is true dead stock, independent distributors can help liquidate the components and get them off the books through various arrangements. Classic Components has provided this type of service since 1985, which can be initiated with a simple email list of surplus items with the original price paid.
The company then searches its database to see if other customers use those parts and can broker a deal between parties. Thanks to a global customer base and ample information about the materials they use, if one manufacturer has excess inventory, there is often an opportunity to sell it to other customers.
Classic Components can also list and sell surplus inventory on consignment with, or without, taking physical possession of the inventory. Essentially, after coming to a consignment agreement, the list of items is uploaded to Classic Component’s website. The company offers complete transparency throughout the consignment process. As enquiries are received, information is shared so the manufacturer can decide whether to sell their surplus at the offered rate.
Classic Components may even opt to purchase the inventory outright to resell later. The company buys excess inventory daily and can make purchases on a line-item basis.
With costs rising and inflation still not under control, manufacturers are also looking to reduce the expense of purchasing parts. Some independent distributors have found ways to lower the cost of parts by leveraging their global relationships.
For example, Classic Components procures material in all local markets where they operate and has offices across the world, so it is not bound by regional price constraints. With a global network, the independent distributor can make purchases in local markets that currently offer the lowest prices and pass the savings to its customers.
Besides its 60,000ft² facility in Torrance, California, Classic Components has established 12 regional offices in strategic locations throughout the world to support its global distribution business. The company has nearly 200 employees who specialize in various aspects of the business including supply chain, quality, technology and logistics.
The buyers can develop an intimate knowledge of regional supply chains with the expertise to find and manage quality component suppliers. These experts then leverage these relationships to bring the best price and delivery to their customers.
By using regional quality centers and logistic hubs, they have the flexibility to purchase components from any country, in any currency and then ship them to anywhere they are needed.
www.class-ic.com
