With all the pressures of lean manufacturing disciplines in today’s sophisticated electronics supply chain, it’s hard to believe companies still struggle with the problems associated with Excess inventory. But even with all the efforts to minimize inventory and balance material requirements with demand estimates, forecasts continue to be based primarily on historical consumption data; which is rarely an accurate assessment of forward-looking demand. The problem of Excess remains.
Additionally, most OEMs and EMS providers do not possess the necessary resources or market savvy to determine the most effective path to disposition for optimal Return on Asset (ROA). To further complicate this issue, all participants in the supply chain (Original Component Manufacturer, Distributor, OEM, EMS…) usually remain focused on their own profitability interests and revenue reporting; which often times inhibits a proactive approach to managing the issue.
At Classic Components, we offer a comprehensive service suite for Excess and Obsolete material disposition designed to help our customers optimize their inventory positions and mitigate unnecessary costs associated with the purchase, handling, storing and managing of those production assets.
Classic’s Asset Recovery Solutions provide our customers access to the world’s largest and most experienced sales network in the industry; consisting of 92 sales representative and 48 purchasing agents – one of the most robust trade organizations in the industry. Additionally, with our proprietary database and software systems we can quickly extrapolate cross usage analysis to effectively isolate where your product can be best positioned worldwide for purchase. All this ensures that your excess inventory will be marketed to the most optimal end user in our trade community to drive maximum ROA.
Our inventory management programs, supported by a world-class global fulfillment and logistics operation, can benefit your materials organization by:
- Improving Workflow Efficiency
- Reduced TCO (Total Cost of Ownership)
- Reducing Overall Cost-to-Carry
- Minimizing Cash Outlays
- Improving Quarterly P&L Results
- Increasing Inventory Turns
To learn more about how Classic can help you maximize RoA (Return on Asset), please contact our Materials Management Group.