September 2023 Continued from previous page
relationship building to find alter- nate sources through regional au- thorized/franchised distribution, manufacturer direct, or sur - plus/excess inventories. According to Thomas, many
www.us-tech.com Sourcing Electronic Components Post-Pandemic
hopefully can find an opportuni- ty to sell it to one of our other customers.” Classic Components can al-
so list and sell surplus inventory on consignment with, or without, taking physical possession of the inventory.
“Essentially, after coming to
a consignment agreement, the list of items is uploaded to our website. We offer complete trans- parency throughout the consign- ment process. As we receive in- quiries, we share the information so you can decide whether to sell [your surplus] at the offered
rate,” says Thomas. According to Thomas, Clas-
sic Components may even opt to purchase the inventory outright to resell it later. “We buy excess inventory every day and can make purchases on a line-item basis,” he says.
Reducing Costs With costs rising and infla-
1 9/23/22 8:47 AM
tion still not under control, man- ufacturers are also looking to re- duce the expense of procuring parts. Some independent distrib- utors have found ways to lower the cost of parts by leveraging
their global relationships. For example, Classic Com-
ponents procures material in all the local markets where they do business and has offices all over the world so is not bound by re- gional price constraints. With a comprehensive global network, the independent distributor can make purchases in local markets that currently offer the lowest prices and pass the savings to their customers. Besides its 60,000 square
foot facility in Torrance, Califor- nia, Classic Components has es-
Continued on page 25
Page 23
Classic Components can list and sell surplus inventory on consignment.
manufacturers are sitting on ex- cess inventory due to stockpiling parts and ordering from multiple sources to ensure delivery. After having to pay exorbitant prices over the past three years to se- cure parts, many manufacturers are also looking for ways to re- duce costs further, even as prices drop. Some are looking to take advantage of financial services that some independent distribu- tors provide to minimize cash outlay while ensuring access to inventory.
Fortunately, Thomas says
these are traditional services that Independent distributors like Classic Components have been of- fering for almost four decades.
Reducing Excess Inventory When manufacturers faced
tremendous lead times on parts, many double, triple, or quadru- ple ordered since they did not know who was going to deliver first, according to Thomas. “Now that all these parts were deliv- ered, some manufacturers have excess inventory and aren’t sure what to do with it,” he says. If it is true dead stock, an in-
dependent distributor like Classic Components can help liquidate the electronic components and get them off the books through vari- ous types of arrangements. The company has provided this type of service since 1985, and it can be initiated with a simple email list of surplus items with the original price paid. Classic Components then
searches its extensive database to see if any other customers use those parts and can broker a deal between the parties. “We have a global customer
base and lots of information about the materials they use,” says Thomas. “So, if a manufac- turer has excess inventory, we
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