How OEMs Get Maximum ROI on Excess Electronic Components

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Maximum ROI- It’s a lot like sticker shock. Supply chain pros often have a buildup of surplus inventory left over after cancelled builds or overbuys and the time comes to get whatever cash can be had out of it.

In the fast-paced world of electronic components, Original Equipment Manufacturers often find themselves at a crossroads, grappling with the challenge of securing the highest Return on Investment for their electronic components. The journey is akin to experiencing sticker shock, particularly when dealing with surplus inventory left over after canceled builds or overbuys.

Decoding EMS Dilemmas

Most Electronic Manufacturing Service companies diligently uphold high standards of traceability and proper storage for their surplus inventory. Armed with the expectation of a commendable return, they typically turn to large brokers to facilitate the sale of their excess electronic components. However, here lies the crux of the issue – the so-called “sticker shock” moment. Traditional brokers, often multinational entities with expansive logistics centers and significant overheads, tend to offer a mere 3-5% of the current lowest distribution pricing. The question arises: why such a significant disparity?

Challenges Confronting OEMs

For OEMs navigating the realm of surplus electronic component sales, the concern of receiving fair and just compensation is a legitimate one. The challenge often stems from the complex web of overheads borne by large brokers. These entities, with their massive warehouses, extensive support staff, and logistical intricacies, find themselves compelled to demand substantial profit margins on surplus inventory to uphold profitability. It’s not an uncommon scenario for brokers to retain returns ranging from 50-75% on surplus electronic components, leaving OEMs apprehensive about the value they rightfully deserve. In the pursuit of transparency and equitable compensation, it becomes imperative for OEMs to explore alternatives that prioritize their financial interests without compromising on the efficiency of the transaction process.

The iBuyXS Advantage

Enter iBuyXS – a paradigm shift in the approach to surplus inventory management. At iBuyXS, we recognize the need for a more transparent and cost-effective solution. Our commitment is to offer complete transparency in every transaction, ensuring that you, as an OEM, are informed about the final sale price and the destination of your components. What sets us apart is our straightforward pricing structure. Unlike traditional brokers, we charge a small fixed amount, eliminating the need for excessive profit margins. With iBuyXS, you gain access to a multitude of programs designed to cater to your specific needs – whether it’s achieving the quickest sale, securing the highest return, or finding a balanced middle ground.

Explore Your Options

Embark on a journey of value realization with iBuyXS. Click the button below for a free appraisal of your surplus inventory and take the first step towards maximizing your ROI in the electronic components market.