Sometimes we solve problems for two clients in one deal, by helping one client get a cash return on unused components, at the same time as helping the other client source the components they need. We use our years of industry experience, and our worldwide network of contacts, to do this. Often the components are not on offer on any public market place: it’s our expertise that knows where to find them.
The global supply chain has increased the demand for this service. Partly because more components are now hard to find or on long lead times. And partly because some companies are finding for the first time that they have excess stock to sell.
Companies are ordering further ahead. They do not want a shortage of components to jeopardise a project, so as soon as the project gets the go-ahead they order everything they need.
Projects are more volatile. They are more at risk of cancellation due to shortage of components, or shortage of staff, or global issues. A car manufacturer might cancel an order for in-car entertainment systems, because they can’t source components needed for the ABS system. This leaves the entertainment system manufacturer with excess stock. Their is supplier is unlikely to be helpful: most limit returns to 30 days form purchase.
Components are more valuable. Many components are fetching higher prices than ever before. This makes it more worthwhile for a manufacturer to find a way of selling their excess, and harder to justify dumping the stock or just leaving it on the shelf. Especially when we make it simple, easy and profitable to sell the excess stock.