“Excess and Obsolete Inventory is idle and not contributing to the company’s performance”
“Excess and Obsolete Inventory is costing real money to finance through, Capital charges and Warehousing costs”
To find out more about our custom consignment stock management program please watch the video.
“Consignment returns around 5 times more cash than an outright sale”
Consignment allows us to advertise and manage your stock like it was our own. This is good for you because we remove all the hassle and stress normally associated with handling E&O. It also ensures the maximum possible return back to your company. Component prices fluctuate much like the stock market so it is critical that your consignment partner have their finger on the pulse of the market place. We will market the stock and sell it for the best possible price on that particular day. We then pay you on a monthly basis the agreed split on the previous month’s sales. It could not be easier.
Many companies opt for outright cash sales of their E&O because it is seen to be easier. We have gone out of our way to create a consignment program that removes all of the effort on your part and delivers 5 times more cash back to your business than an outright sale. We are of course quite happy to accommodate an outright sale if that is still your preference however, why settle for less when you can have more?
If you would prefer an outright sale, please click here to find out more.
“The average electronic manufacturing company is sitting on around 1% of revenue in E&O”
Storage costs of a component is estimated to be quarter of its value per year. Depreciation is estimated to be approximately quarter of its original value per year.
Example: A company with sales of 100 million dollars per year would be sitting on at least 1 million dollars of E&O. Taking into account depreciation and storage costs, doing nothing could cost $500,000.
Further benefits to your company: