Component Sense Blog

Most electronic manufacturers are unaware they are sitting on roughly 10% of their revenue in excess and obsolete (E&O) component stock. This truth can be concerning to learn for many OEM companies. It is no surprise that more and more OEMs are enlisting Component Sense to redistribute their E&O inventory through our local consignment option. We do the heavy lifting with our cutting-edge consignment process to provide you with effortless cash flow.

The electronic manufacturing industry has experienced an economic bubble marked by high demand and low supply in recent years. However, this bubble has now popped, and our market continues to level. Yes, the COVID-19 pandemic has contributed significantly to market volatility, but there is another force pulling the strings of our global supply chain: environmental change.

In our most recent blog post, “Why a Sustainable Supply Chain makes Good Business and Environmental Sense,” we outlined the environmental and business benefits of an optimised supply chain. Making your supply chain more circular — and by extension, more sustainable — can result in a reduced impact on the environment, diminished costs, and improved customer satisfaction. The Boston Consulting Group — a corporate strategy firm — found that companies who improved their environmental performance “could not only improve the planet’s prospects but also significantly improve their business results” by adopting a circular economy model.

The negative impact of the counterfeit threat has hit OEM and EMS companies hard. For many, cost reduction through clever sourcing is no longer an option as it is deemed too risky. How did this happen?