With the unprecedented, once-in-a-lifetime disruption of the supply chain for electronic components in the rear-view mirror, the market is finally beginning to stabilize. For the past three years, manufacturers found many critical electronic components hard to come by, watched as prices skyrocketed and lead times extend to almost a year in traditional distribution channels.
Thankfully, much of the dust has settled, but the work has only begun. With hard-earned lessons from the pandemic, many manufacturers are looking to secure their supply chain and prepare for what will be inevitable disruptions in the future. At the same time, they want to do so at reduced cost and capital outlay after paying a premium for electronic parts over the past several years.
According to Thomas, many manufacturers are sitting on excess inventory due to stockpiling parts and ordering from multiple sources to ensure delivery.
“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, according to Mike Thomas, CEO of Classic Components, a premier independent distributor based in Torrance, CA. “Now that all these parts were delivered, some manufacturers have excess inventory and aren’t sure what to do with it.”
Independent distributors like Classic Components can leverage their extensive expertise and decades of strategic relationship building to find alternate sources through regional authorized/franchised distribution, manufacturer direct, or surplus/excess inventories.
If it is true dead stock, an independent distributor like Classic Components can help liquidate the electronic components and get them off the books through various types of arrangements, including:
Searching their extensive database to see if any other customers use those parts and can broker a deal between the parties. “We have a global customer base and lots of information about the materials they use,” “If a manufacturer has excess inventory, we hopefully can find an opportunity to sell it to one of our other customers.”
Listing and selling 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 our website. We offer complete transparency throughout the consignment process. As we receive inquiries, we share the information so you can decide whether to sell [your surplus] at the offered rate,” says Thomas.
Opting to purchase the inventory outright to resell later. “We buy excess inventory every day and can make purchases on a line-item basis,” says Thomas.
For more information, contact Classic Components Corp. 23605 Telo Avenue, Torrance, CA 90505; www.classic-ic.com; 310.539.5500; [email protected].