Offset the Negative Impacts of a Shortage Market with Excess Inventory
As we continue to navigate through what has already become the most impactful shortage market in electronics history, it’s important to remember that every shortage market is followed by an excess inventory market adjustment. The key to weathering this storm is leveraging market intelligence and data along with optimizing value return where you can.
With the proper market intelligence and access to meaningful data, companies can identify the signals of a shortage and buy earlier to obtain incremental supply while avoiding the higher costs that occur as any shortage market progresses. Conversely, those with excess or unwanted inventories who act during the peak of the shortage can obtain the highest possible value for their inventory while the shortage continues to impact supply levels.
Remarketing excess or obsolete inventory can help to offset the negative impacts of a company’s shortage buying. During these times, companies must often obtain components at pricing that greatly exceeds contractual or “planned component cost”. By identifying stock on their shelves that isn’t immediately needed, companies can generate a revenue stream to counterbalance the inflated costs of key components during a shortage market.
Timing is everything in today’s global supply chain. Having access to trusted advisors who maintain critical market data is a must. Converge maintains an unparalleled business intelligence platform. Our predictive analytics combined with the largest components database in the industry enables us to support our customers’ informational requirements during these challenging times. Our commodity managers collaborate with our customers and help companies plan for not just today, but tomorrow.