April 27, 2011

When It Comes to Excess Inventory, Help Me Help You

Tips on how to extract the most value from excess electronic components inventory, special to the Converge blog from veteran trader Ed Graham

Even though it has been 15 years since “Jerry Maguire” was released in the theaters, I still hear lines being quoted from the movie all the time. You know the ones I’m talking about: “You had me at hello,” “Show me the money,” and of course, “Did you know that the human head weighs eight pounds?”

One memorable line from that movie has always jumped out at me, because it so succinctly says what I frequently wish I could tell my customers in my role as a trader of electronic components. It’s when sports agent Jerry Maguire begs his star client, Rod Tidwell, “Help me help you.”
Help me help you. I couldn’t have said it better myself!

As a trader at Converge, who deals primarily with excess electronics components inventory, my job is to help companies find buyers for inventory they no longer need. The longer these parts sit idly, the more investment companies stand to lose on them. When a company comes to me with an excess problem and I begin to evaluate their inventory resale possibilities, I can’t tell you how often I think, “Wow. If I had only known about this three months ago, when this part was in shortage, I could have found them a great price.” I can almost guarantee that the company has been sitting on the excess for longer than three months. They just took a long time to get around to telling me about it.

So here’s my insider tip. If you want to make the most out of your relationship with an independent electronics distributor, the key word is “relationship.” Build one. If you think back to “Jerry Maguire,” Jerry and Rod Tidwell end up forming a relationship through having constant contact. And ultimately, it is that relationship and an understanding of one another’s needs that enables them to help each other.

Getting to know your inventory as early in the game as possible will allow us to help you get the most return on your excess products. Talk to us regularly. Tell us about your excess inventory as soon as you know you have it. Not when you must get rid of it…but when you could get rid of it, if the price is right. Then we can put our market intelligence to work for you on an ongoing basis, instead of just when there’s urgency. And we can help you make educated decisions about when market conditions will be most favorable for you to sell. 

Whether you’re looking for an outright buy solution, a consignment program a demand opportunity, or something in between, I can find the resale solution that is most beneficial for your bottom line.

I’m always happy to help you find a solution for your excess inventory. It’s what I do. But if you tell me sooner rather than later, I might be able to get you top dollar for those parts, instead of pennies on the dollar. Help me help you.

April 13, 2011

X-ray Vision: Leading the Way in Electronic Component Supply Chain Quality Initiatives

At Converge, we are always looking to enhance our inspection and testing capabilities with technology.
As an established independent electronics distributor, it is a necessity for us to take extra care with components originating from the open market.
Recently, I have read several articles citing estimates that up to 10 percent of global technology products are counterfeit, equating to roughly $27 billion in product sales worldwide. Numbers like that can be frightening to electronics manufacturers, who could face serious damage to both their reputation and their bottom line if they unknowingly purchase counterfeit or substandard components on the open market. I can certainly understand their concerns. In fact, this is precisely why Converge takes quality control so seriously.

To ensure that every part we sell is 100 percent authentic, Converge has invested in the most advanced technologies available for electronic component inspection and testing services. Not only do our highly trained, in-house component engineers microscopically inspect a sampling of every part number purchased by date/lot code, we also use X-ray and decapsulation machines to view inside components to eliminate potential non-conformance. Much like an X-ray exam you might have at the hospital, our X-ray machine allows us to verify that everything that should be inside a component is there and intact.

If we need an even closer look, we can remove the top of a component with our “decap” machine. This gives us a magnified view of the interior of the circuit and enables us to confirm that the die matches the component, when needed. Not having to outsource these inspection services also helps us provide customers with faster delivery TATs.
Converge is one of only a handful of electronics distributors in the world who have this kind of testing capability in-house. These state-of-the-art machines require a significant financial investment and a highly trained internal inspection team.

I believe that our willingness to continually invest in technology and detection methods demonstrates Converge’s commitment to preventing counterfeit parts from making it into our supply chain. And after 30 years as an independent component distributor, we have the quality record to back that claim.

Counterfeiters continue to get more sophisticated, so electronic component distributors simply have to “up our game.” Converge has done it, and we will continue to use our “X-ray vision” to lead the way in the quality initiatives of the future.