How Much Value Can Your Free Excess Inventory Analysis Uncover?
The financial loss from excess inventory is a supply chain inefficiency largely viewed as unavoidable, with the security of guaranteeing a steady stream of critical inventory throughout a product’s life cycle worth the impending write-off. That’s why when a project manager is determining where their company’s supply chain can be improved or streamlined for future undertakings, recovered excess inventory revenue on the back end is rarely the first place they look.
Going even further, OEMs often want to wash their hands of excess before it can be properly assessed. Unused electronic inventory represents not only tied up working capital, but every day it remains on-hand adds to annual carrying costs that can be as high as 25 percent of the inventory’s original value. When it’s time to rid themselves of excess inventory, project managers reason, it’s better to get rid of it quickly — regardless of the revenue still left on the table.
This line of thinking, however, negates the value an excess inventory strategy can have on an OEM’s bottom line. As the final stage of an OEM product’s life cycle, it deserves as much care and attention as any other aspect of the supply chain.
At Partstat, we are committed to helping manufacturers realize untapped earnings potential at all stages of their product’s life cycle. If we didn’t offer an Excess Inventory Solution to help our customers realize its true value, then our mission would be left unfulfilled.
This is more than just a service to quickly write off excess inventory from your books. Instead, we look at our Excess Inventory Solution as an introduction to a new way of thinking about something that has traditionally been overlooked. Excess inventory is not a burden nor is it an unfortunate reminder of inaccurate need projections – it is a valued asset that, when marketed properly, has a tangible consumer demand that can yield significant returns.
Educating our customers on this point of view is done using our Free Excess Inventory Analysis. A unique combination of Big Data analytics provided by Partstat and human intuition, this detailed, transparent report contains everything needed to reassure a Partstat customer that there is a market for their excess inventory worth pursuing.
Consisting of over 9 billion rows of current and historical data on electronic components and semiconductors from over 3,000 unique manufacturers, Partstat allows us to construct a thorough line-item analysis of every individual part. This analysis includes information such as current life cycle status, current global availability, average distributor price, and average factory lead times – each of which plays an invaluable role in determining market demand, as well as the optimal price point at the point of sale.
Again, all of this information we provide to manufacturers at no cost, even if they ultimately decide not to enroll in our solution. We fully support manufacturers to realize the earning potential of their excess inventory however they feel is best for them – but if they choose to move forward with us, they will also benefit from Parstat’s renowned global sales strategy which includes taking full advantage of Partstat 20,000 daily search volume. Factor that in along with Partstat’s ability as an open platform to index your inventory on all of the major search engines including Google, Bing, and Yahoo, and we can all but guarantee that your inventory will be seen by those who value it at least as much as you.
If you want to see how much working capital your company can recover on the open market, submit your excess inventory list here, and one of our experienced supply chain specialists will promptly be in touch.