A sneak-peak at our bidding process...

You have done the hard part and put a list of all of the excess, obsolete, slow-moving & EOL stock together. But how do you know that the bids you are receiving are competitive and reflect the current market values?
Trading Specialists works closely with suppliers and puts a lot of time into ensuring that our bids are (and always will be) competitive.

1) The first step is to find out if line bids or an offer for the whole lot is preferred.
- A lot bid allows us to spread our risk over multiple lines and therefore offer a higher amount. It also leaves your warehouse clear of the material which has no value.
- Line bids are perfect for slow-moving or newer inventory. A line bid can help you identify which lines you can afford to sell and in what quantities.

2) We assess the parts on our internal database which is shared with our offices worldwide. This allows us to see our customer demand,quotes,sales and purchase history.

3) The next step, is to see the availability, lead times and prices from distributors and manufacturers. We have over 1000 supplier stock lists available to us and teams dedicated to ensuring the information is accurate.

4) Based on many different strands of information we calculate risk and offer accordingly.

5) The more information and feedback available, the more accurate and individual our bids become.

As one of the largest buyers of excess inventory in Europe, and with an ever-growing supplier base, we must be doing something right. Send your list or any questions to excess@trading-specialists.com or tell us what you think in the comment section below.

If you are looking for the maximum return from your excess and don't mind sharing the risk over longer periods of time, check out our flexible consignment option. http://bit.ly/vaTbmq

Inventory levels continue to rise - Is this 2008 all over again?

According to recent reports by industry experts at Gartner and IHS iSuppli semiconductor inventory levels have reached “worrisome levels” and are manufacturers are “wading into troubled territory”.

“Total semiconductor inventory at the end of the second quarter, as measured by Days of Inventory (DOI) factor, stood at an unusually elevated 83.4 days - a level exceeding even the last record high of 83.1 days seen in the first quarter of 2008” says Steifel.

This is 11% above the season average and calls for correction before it is too late.

What does this mean today?
Gartner analysts state “Excess inventory levels helped buffer the impact of the Japanese earthquake; however now action should be taken to rationalize stock levels in the face of macroeconomic weakness”. With lead times becoming less of an issue and uncertain demand for Q4 2011 and 2012, now is the perfect time to sell your excess inventory before the industry weakens.

In a surplus market, a manufacturer with surplus inventory could make significant losses. When opting for cash purchase of excess, EOL, slow-moving or ex-works inventory it is unlikely that the full costs of the assets will be recovered. But, in a saturated market the stock will be easier to procure and the demand lower. 

Please leave your comments and questions below or alternatively email excess@trading-specialists.com.

http://www.isuppli.com/Abstract/P13816_20110922161125.pdf
http://www.gartner.com/it/page.jsp?id=1796915

7 Step Consignment Checklist

Achieving the best return for your excess, obsolete and EOL inventory is always a priority, especially if the material is still showing a high value in your accounts.

However, finding the right company, with the right systems and processes in place, to protect your stock and obtain the best return possible, can be a lot tougher than it may seem.

Furthermore, getting this wrong can not only have financial implications but it can affect your standing within the industry.

That's why we've created a simple 7 step consignment checklist to help you protect your stock, and gain a greater financial benefit.

7 Step Consignment Checklist

1. Title Make sure the title remains with you until goods are sold. So in the event you need material for production at a later date, it is just a phone call away. 2. Confidentiality Ensure your independent electronic component inventory manager has a confidentiality agreement in place to protect your stock and your business. 3. Insurance To give you peace of mind the material should always be covered by the independent electronic component inventory manager, whilst stored in their warehouse. 4. Freight All freight should be paid for by the independent electronic component inventory manager and you should never see any hidden charges when material is collected from your warehouse. 5. Payment Make sure you receive monthly payments for material sold, so you are getting a constant cash flow into your business. 6. Visibility Check to see if they offer a web based access to sales and stock data relative to your material. This gives you all the information you would need 24/7. 7. Marketing Find out how your independent electronic component inventory manager markets your stock to potential customers.

Please leave your comments and questions below or alternatively email excess@trading-specialists.com.

New Industry News Website: Electronics Feed

In a recent meeting with Evertiq we learnt about a website that's just been launched...www.electronicsfeed.com.

Electronics Feed is an online information hub that can help you stay updated on news within the electronic design engineering and component industry.

Which Electronic Component Disposal Option Do You Prefer?

The majority of manufacturers in electronics will face the decision of what to do with excess, obsolete, slow-moving and EOL electronic component stock...  Few sell the stock themselves, others prefer consignment and most favour a cash injection.

Here are just a few of the benefits and reasons behind the two most popular options:

Consignment

• The stock has a high residual value.
• Higher return for the stock over time.
• The stock still belongs to the factory and still frees up space.

Immediate Payment

• No ongoing liability.
• Instant cash for stock which has already be written off.

Which option do you prefer / would choose?

Please leave your comments and questions below or alternatively email excess@trading-specialists.com.

6 Top Tips On How To Maximise The Return On Your Obsolete, Excess & EOL Electronic Component Inventory.

Supply and demand are uneasy partners in the electronic component supply chain at the best of times., but with the current global economic climate the slightest change can usually result in a significant increase in stock levels to your business, which may ultimately impact on your profit.

With this in mind we have recently developed a guide on how to maximise the return on your obsolete, excess & EOL electronic component inventory.
 
To download your copy please click here NOW!

The Disadvantages Of Holding Excess Inventory Within Your Warehouse...

I have recently found an interesting article stating the disadvantages of holding large amounts of excess inventory.

Here are some interesting points from the article which are worth considering...

• Excessive inventory tends to turn over less and remain in inventory longer than lower inventory levels. The longer inventoy remains in the warehouse, the more the company runs the risk of the inventory becoming obsolete.

• Holding inventory requires the company to pay carrying costs such as storage, insurance and possibly even interest charges. 

• Any inventory maintained within warehouse shelves reduces the company's ability to purchase additional inventory or store additional finished products.

Please click here to read the article.

If you have any comments or questions please leave them below or alternatively email excess@trading-specialists.com.

Electronic Component Semiconductor Inventories At Alarming Levels

Supply and Demand are uneasy partners in the electronic component supply chain at the best of times, but with the current global economic climate the slightest hiatus can result in a significant increase in stock levels, which may ultimately impact on your profit.

Most companies have a disaster plan in the event of an interruption to business caused by acts such as terrorism or severe weather conditions, etc. So it makes sense to have a contingency plan to remove unwanted electronic component inventories when the occasion demands.

I have recently read the following interesting article relating to semiconductor inventories...

Semiconductor Inventories Swell to Alarming Level..."global inventories held by semiconductor suppliers surged to their highest level in two-and-a-half years during the fourth quarter of 2010. If growth is lower, the high inventories could cause oversupply in the market." Source: www.isuppli.com

Performance, trust, reliability and confidentiality should be the corner stones of any excess inventory management partner, here are 4 reasons to sell your obsolete, EOL or excess electronic component inventory...

• Provide a positive cash revenues to your business.
• Free up warehouse capacity and reduce stockholding costs.
• Eliminate the time spent by your warehouse staff managing this unwanted inventory.
• No future liability, which means you're at no risk from your redundant stock.

Trading Specialists provide electronic component inventory management solutions to OEM, ODM and CEM clients around the globe. We are a leading provider with over 20 years experience and have the expertise, appropriate resources and knowledge to handle the disposition of your unwanted electronic component inventory.

Inventory Management is our core business and our full range of services are trusted by some of the worlds leading electronic companies and have been for many successful years.

To discuss your electronic component disposal requirements please call me on ++44 (0) 1904 436420 or alternatively email me at bobg@trading-specialists.com.

Move your Excess, Obsolete & EOL electronic component inventory before the residual value falls!

No, I'm serious... I am receiving reports from my contacts in the APAC region that the supply chain is softening. Take a look at the following articles...

• Capacitor Lead Times Shift...click here to read more!
• "Soft Landing" For The Semiconductor Industry in 2011... click here to read more!

Many manufacturing companies that I have spoken with are now starting to review their inventory levels to ensure they do not get caught with dead electronic component stock that could cause them unnecessary profit loss.

Even in Europe I am seeing reports that suggest Q1, 2011 will see a decline in the demand for electronic components. Unfortunately this will ultimately reflect on the prices across a wide range of electronic components.

So what's the answer? 

Move your excess electronic component inventory NOW!

I know it doesn't normally rate highly on your list of priorities, or maybe even get onto the list at all, but if it hasn't moved in the last 12 months it isn't going to go anywhere.

Selling your excess, obsolete and EOL electronic components can help inject immediate cash revenues into your business. I am always looking to buy electronic component material and have a variety of options available to you including consignment and immediate payment.

Still not sure?

Why not give me a call to discuss your disposal options? My direct dial is ++44 (0) 1904 436 420, alternatively if you already have a list simply email it to bobg@trading-specialists.com.