US Airforce have over $16million worth of excess parts!

If even the US Air Force can over order components, then anybody can! There’s several million dollars worth of excess parts used on the C-130 Hurricane at bases across the United States. An annual audit brought to light the sheer number of parts, valued at an estimated $16 million – phew, that’s a lot of excess parts!

Without making some significant changes to their inventory management, the Defence Logistics Agency will continue to obtain inventory that exceeds their orders. According to the Department of Defence Inspector General, ‘the parts will be hard to get rid of because funds will have to be spent to manage and store the excess inventory, which in turn will drive up costs to customers.’

While you may not have quite as many excess parts as the American Air Force, it shows how easy it is to over order, over estimate or just simply not require the parts ordered anymore. But what to do with these parts? You could leave them in the warehouse on the off chance they might come in handy one day, but realistically you know they will sit there for years, gathering dust and taking up valuable space. How about making some money from your excess instead?

Selling your stock to an inventory specialist is a win-win situation for you and your company. The parts are removed, giving you back storage space and you get a cash injection into the business. And it couldn’t be easier to do. Send in your stock list, get an appraisal, sign the paperwork and it’s done – and if you choose Trading Specialists you’ll get a choice of 3 payment options:

Immediate Payment
• We assess your stock for immediate purchase
• Once purchase is agreed your stock is quickly removed
• You get immediate cash, complete removal of goods and no ongoing liability

Full Consignment
• We sell your stock to maximise market value
• Your surplus stock is marketed to over 16,000 OEMs, CEMs and Distributors worldwide
• Your stock is relocated to our ISO approved warehouse

Part Payment & Consignment
• We buy your stock for immediate cash and a percentage of future sales
• Your surplus stock is removed and marketed worldwide
• You maximise return by getting immediate cash and ongoing revenue

What are you waiting for? Send your stocklist to web@trading-specialists.com today!

Source:
Standard Examiner

Your Opinion Counts, Read The Results From The Trading Specialists Service Evaluation

We are thrilled to announce the results of the recent Trading Specialists (TS) Service Evaluation. You, our valued clients took time out of your busy schedules to give us your opinion on our services.

Thank you very much to everyone who took part, your feedback is really important to us. The results will help us to develop and improve our services in order to serve you better.

We have now collected and analysed all the completed surveys that we received and we wanted to share with you our main findings....

• All participants rated us as excellent or very good for competitiveness
• Relationship/Trust along with Competitive Bid were chosen as the most important features when selling inventory
• Professionalism was listed as our top rated service feature by participants, with 90% of clients giving us an excellent for this category
• 99% of clients said they would definitely contact TS again if they had an excess inventory to sell

 We Asked, We Listened, We Developed...

We have used the results from our findings to tailor our service offerings to better meet our customer needs. We have also redefined and developed our key service features.

Click to view our new 7 great reasons to choose Trading Specialists for the management of your excess, obsolete, slow-moving and EOL electronic components.

If you have any feedback or comments regarding our recent Service Evaluation then please let me know!  

Communication is Key to Avoiding Excess Inventory

In a recent article discussing excess inventory within the electrical sector, Bridget McCrea speaks to several industry experts and explains ways in which excess inventory can be kept to a minimum.

Her findings explain how having surplus inventory is something that companies really need to keep an eye on, as this can increase overheads and idle stock costs companies money. One of the easiest ways to manage surplus inventory is to ward it off all together. By ensuring solid communication with customers and vendors and with well-honed inventory procurement processes. Talk to customers about their procurement plans for the coming year, this can help with your own inventory strategy and avoid overstock.

Another tip is to pick up on key buyer trends, for example, if a new type of product is proving popular within the industry. This will ensure that you're not stocking up on 'older' versions of products.

Even though you may try your hardest to avoid excess stock, sometimes it is unavoidable. If the inventory is taking up physical space and/or tying up money that could be used to invest elsewhere, you need to find a way of getting rid of it quickly so the space and money can be put to better use. Besides the cost of capital, it is estimated that the cost of holding obsolete inventory can run as high as 3% per month

Selling the goods is a wise option, markets that you don't typically serve or other distributors and online buyers are all good selling targets.

The electrical sector is not dissimilar to the electronics industry and here at Trading Specialists we specialise in solving excess, obsolete, EOL and slow moving electronic components inventory problems.

We have various selling options available and your stock will be relocated to our purpose built warehouse, for which we cover the transport costs. One option could include the ability for you to retain full title over the stock until it is sold, meaning you can use any unsold goods at any time.

If you would like to send us your excess stock lists for a quick assessment and response, then please email us or visit our website for more information. 

Buyers Guide to Identifying Excess & Obsolete Electronic Component Inventory

When we talk about excess or obsolete inventory, we are of course referring to inventory of which the quantity you are holding in stock is surplus to requirements. Maybe production operations which originally were intended to use that stock have slowed or even stopped. Perhaps there is new hazardous materials legislation which leaves the stock obsolete and unusable to you. Either way the cost of long term storage for this stock will have to be eventually taken into account as a business expense and it can result in potentially large losses. Companies are constantly fighting to reduce costs and improve sales. If you are an OEM or CEM then managing your excess and obsolete electronic component inventory can be just as important.

When auditing your business, one step that should be considered is identifying your excess and obsolete stock. This can be a challenging task that needs to take into account possible future production schedules and ever changing legislation regarding the health and safety issues of certain substances. For instance, manufacturers of medical equipment (previously exempt from the RoHS directive) now have to start making plans to comply with the updates to the law. Like what happened when the original RoHS directive came into affect, it is likely that many companies will fail to get the most out of their non-compliant components while they still can. Many will be left with unusable component lines in storage. Click here for more information regarding the RoHS legislation. 

By using the best estimates you can for future production volume you can plan ahead more effectively when component lines are going obsolete. It will enable you to see how long your current inventory will last and what replacement parts you need to source first.

Of course if a component line is sat in your inventory and the productions which utilized it have already ceased then the stock is already excess and possibly obsolete. This is what many businesses are finding when they audit their own warehouses. Excess stock with no possible chance of it being utilized in any of their production schedules and because of the RoHS directive, it may be impossible for it to ever be used by your industry.

However, it is not all doom and gloom. There are 6 important steps you should take in order to maximise the return on this obsolete stock.

1. Identify Your Obsolete, Excess & EOL Electronic Component Inventory 
   Firstly you need to recognise which component lines in your warehouse are excess, EOL or obsolete. Component lines go obsolete all the time and as yet there is no industry wide notification system to inform you of obsolescence. You should maintain communication with your suppliers in order to help you identify when a particular line is going obsolete.

2. Create Your Inventory List 
   Once you have identified the inventory, you must then develop a list of the items you wish to dispose of and include all the relevant information so that the potential buyer can make a bid. Details you will need to include are; Manufacturers Part Number, Quantities, Date Code, Manufacturer & RoHS Status.

3. Send Electronic Component Disposal Partners the List 
   Select several electronic component disposal partners and send your list to them. This will allow you to take your pick of the quotes they send back and give you more choice.

4. Review the Offers Received 
   Quotes you receive for this stock will be based on the current market value of the stock. Excess buyers typically offer between 10 and 30 percent of the market value. This can depend on factors such as the age of the stock, RoHS compliance and previous sales history. Usually initial offers may be open to some negotiation.

5. Consider the Disposal Options 
   There are three main disposal options the excess buyer may provide you with.

• Immediate Payment 
  Quite simply, once a price is agreed and the stock has been appraised, the stock will be quickly removed with the minimum of disruption and at no extra cost. With this option there should be no removal charges and no future liability on any parts.

• Full Consignment 
  This option involves the removal of your stock to the disposal partners warehouse, who will market it globally on your behalf via a network of global distributors. The disposal partner should pay full transportation costs and provide insurance cover. You retain full title over the stock until it sells, this gives you the best chance of maximising your return whilst also allowing you to recall any unsold goods at any time.

• Part Payment and Part Consignment 
  This is the best option when you are in need of an initial up front payment from the disposal partner, but also want to maximise your revenue.

6. Set Up a Collection Time & Date 
   Once you have agreed a deal with your buyer, they will then make arrangements for the removal of stock from your warehouse. They will need to know the weight and dimensions of the packages in order to arrange the most cost effective and speedy transportation method.

In the electronics sector, obsolete means obsolete. There is no chance that a component line, once identified as obsolete, is ever going to have its original market value and the longer it sits in your warehouse the more value it loses and the more it costs you in the long run. After a component line goes obsolete there may be a surge in its value as other companies try and secure what remaining stock there is left. However, as the companies who used the component move away from its usage in their product and source an alternative, its value will decrease rapidly and your warehousing costs will be growing year on year.

Working with a company who specialise in excess inventory management is the best way to mitigate the risks involved with obsolete and excess components. At Trading Specialists we appreciate the dynamic nature of the market we are in and by working with us we can help you prepare for component obsolescence and get the most out of your excess inventory while you can. We have a global network of electronic component distributors lined up to market your inventory to the rest of the world, increasing the chances of it selling. We will even take on the responsibility of unburdening you of your excess stock and removing it to our purpose built, anti-static warehouse where we will cover the costs of storage until it sells. Don't tolerate excess inventory wasting your company resources. In business we take immediate action if anything else is costing us money unnecessarily. Your excess inventory should be no different.

Start by sending us your excess and obsolete stock lists today or for more information, give us a call on +44 (0) 1904 436 444.

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.