| What causes material sluggishness? |
| How to deal with it? |
- Original content, please do not reprint.
In the electronic manufacturing industry, there is a problem that is easy to cause serious economic losses and often ignored, that is, stagnant materials. It has long occupied the capital of enterprises. With the update and iteration of technology, these electronic materials will depreciate and eventually become electronic waste. So why do stagnant materials occur? How can we dispose of stagnant materials at high prices to avoid losses?
What causes sluggish material?
1: The first and most common is inaccurate demand forecasting：Some enterprises are not sensitive enough to the market. They do not stock up on the goods that should be stocked, but stock up on the materials with excess capacity. This is caused by the lack of timely information. iconechip company can provide electronic material purchasers with real-time market reference to avoid purchasing plan mistakes.
2: The second point is the problem of inventory management. Some companies have introduced new products that will replace the old ones, but material purchasers still prepare materials according to the original plan. There are serious errors in information transmission, which leads to the generation of stagnant materials. This results in the situation of ineffective occupation of funds.
3: The third point is that there are some unpredictable temporary changes, such as design changes or design errors, customers cancel orders, wrong purchase of materials, or inventory caused by information gap between material distribution and receipt of production lines, etc. Too many factors will cause the generation of stagnant materials.
4: The fourth is that the production standard is not clear. Due to the absence of specified production standards, there are a large number of rework and after-sales repair, and the damaged repaired devices form idle materials.
5: The fifth is the failure of the procurement plan, or the specification of the purchased materials does not match the production demand, which will also lead to the increase of inventory.
How to handle it?
How can we maximize the value of idle materials to prevent losses? If they are processed as scrap, the loss would be the highest. To sell component waste materials at the highest value for capital replacement,the best method is consignment sales. However, many factories have limited sales channels. It's advisable to seek assistance from experienced chip distributors.
iconechip company specializes in selling components for 13 years, we have a large number of demand channels to match your spare parts, high price and fast sale of your spare parts inventory.
To expedite processing, BOM lists are typically packaged and sold as a single package. While this approach may be faster, most buyers can only offer 10%-20% of the item's value. This method is suitable for urgent cash flow needs when replacing electronic materials, but unless you're particularly short on cash, it's advisable to spend more time on the process.
The most valuable way is to resell to the same manufacturer's peers, just matching the demand of other factories. In this case, the price can be sold relatively close to the market price, which is the least loss, but it is not easy to match the demand of other factories just in use, so it needs to be entrusted to chip sellers with more factory resources.The other is to chipmakers, which may not be able to sell at close to market prices, but will still be much higher than disposing of them as scrap.
The generation of dead stock still lies in the good supply chain management. It is very difficult for purchasers to completely avoid the generation of dead stock, but once it is generated, we should actively deal with it to avoid turning inventory into waste.
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