Inc 5000 Southeast Regionals- Interview with the CEO of iBuyXS

You have an interesting background, having spent decades within this industry. Do you feel like your experience has informed your approach to growing your business?

In this industry, you have to be flexible to accommodate and adapt to all the shifts in the world economy, as we have clearly seen these past couple of years with the pandemic. But the yearly and rolling cyclical nature of the electronics industry can be tumultuous, even in “normal” times, without the right supply chain support team. 

With many years’ experience as a buyer at a maquiladora in the beginning of my career, I had to learn to manage the commodities I was purchasing at a fast and ever-changing pace. Being able to understand supply chain nuances from the perspective of the clients we work with has been a tremendous advantage for our customers.

While the pandemic has provided many challenges, it has provided a lot of opportunities to help others within this industry. What are you most proud of accomplishing during these unprecedented times?

iBuyXS was founded in 2019, months before the pandemic ground the economy to a halt. Our company grew more than 3500 % over the subsequent 2 years by utilizing our international partnerships, exclusive excess channels, and proprietary EPIC software to support a multitude of Fortune 500 manufacturers’ requirements for electronic components they could not get from their typical distribution channels. 

As supply chain restrictions have increased over the past few years, it seems that more and more people are aware of the electronic component crisis. Do you think that we will continue to have people outside of this industry talking about electronic components? 

I don’t believe the dynamic of the electronic components industry will change anytime soon. There is an interconnectivity globally when it comes to the materials needed to create electronic components.

We have blogged many times about the impact of things like Ukraine’s production of Neon, tensions between China and Taiwan, and even natural disasters that impact the supply chain. With all the worldwide events happening, as well as the demand for electronics, I really think we will be having this conversation for years to come. 

And do you feel that the increased conversation is helping the crisis by bringing more exposure to the dilemma?

I think the fact that people are more aware of this situation within our industry means that our customers, as well as our vendors, are more informed and savvy. We need to constantly evolve and have more innovative tools in order to get them the best and fastest response to their supply chain needs. We have come up with some proprietary tools that allow us to give 100% better and faster service. Some of our unique tools are our auction site, BidChips.com, and our EPIC system which was created by our very talented CMO. 

The electronic components industry is one that is pretty niche- many people don’t know that it even exists which means a lot of your work is done behind the scenes. How would you describe this industry to someone who doesn’t know about this industry? 

I’ve had this question many times before from many people that don’t know what we do, and I always tell them that we basically buy and sell the chips that go into their cell phone. Ha ha ha- that’s what they can relate to most of the time.

And what makes the electronic components industry different from other industries?

It’s global. It’s chaotic. To be successful at what we do you need to have experience, reach, information, and the ability to proactively do what is needed to get the parts that everyone needs. I’d compare our industry to playing chess, as opposed to checkers. The difference is that if you lose, your customer can suffer huge losses.

What makes iBuyXS different from others within the electronic component industry?

Just look at our name, we are excess first. Whether it is a shortage or a cost-savings driven market, excess is the key. Unique excess inventories do not show up on inventory lists and websites that OEMs search for parts.

That is how we come through with factory original parts when no one else can during times of shortage. When the tide shifts to a surplus market, as it is starting to do in 2023 in many genres, OEMs are looking to recoup some of the PPV they needed to spend on shortage parts the past 2 years. That is where our cost-savings program can help by matching one OEM’s excess with another’s current RFQ. We can maximize the ROI for the seller and provide a good purchase price for the buyer.

Sustainability is a key pressure point in today’s society. How do you feel that iBuyXS approaches this challenge?

The nature of iBuyXS is completely about sustainability. In its purest form we are “repurposing” ICs when we transact by moving the goods from a manufacturer who no longer has a need for them and transferring them to one who does. Interestingly, many companies do not fully understand the economics of the situation and would rather “scrap” or even throw surplus parts in the dumpster.

This is disposing of heavy metals and a multitude of toxic materials into the earth. Also, it’s a huge waste of money. We are experts on the economics of inventory write-downs and can show both the materials managers and their financial managers how selling the surplus is a huge benefit for everyone.