August 31, 2011

What to Look for in a Surplus Remarketing Partner

In our last blog post, we talked about the need to mitigate surplus risk by partnering with an independent distributor to remarket your excess electronics components inventory. But there are many different kinds of “remarketing partners” out there – and not all of them are reputable.

When looking for an independent distributor to help you remarket surplus inventory on the open market, there are several key qualities that you should check for:

Independent distributors come in many shapes and sizes. The bigger the company, the more “tribal knowledge” you will have working to your advantage. Size does matter when it comes to recovering the most value for your inventory.

Commodity managers.
Generally speaking, commodity managers go hand in hand with size. A small, independent distributor will probably not have experts who are solely dedicated to studying one particular commodity’s global activities; larger ones probably will. Commodity managers devote their time to assembling complete market intelligence around one or two specific commodities and can provide a wealth of in-depth market knowledge to the traders working on your behalf. 

Around-the-clock workforce. We operate in a global economy, not one that ends at 5 p.m. in the time zone that we happen to live in. When it is 5 p.m. here, the workday is just beginning somewhere else in the world. A global independent distributor will have commodity managers working around the clock in different regions of the world, which enables that distributor to find a solution for your surplus parts in as little time as possible. In addition, because an independent distributor with an around-the-clock workforce never stops working, it never misses a beat when it comes to knowing about world events that may affect the market.

The need to remarket surplus inventory will always exist, whether there is a surplus market or a stable market. Despite their own best-laid plans, manufacturers will end up with more parts than they need for the current demand of their products. It is simply the cost of doing business in an unpredictable world. The good news is that solutions do exist to help mitigate surplus inventory costs, no matter which market currently prevails. By partnering with an independent electronics distributor you trust, your company will be better prepared to handle any surplus market challenges that come along.        

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