In the Electronic Component Distribution Industry, speed of delivery and moving products on a large scale are key. When distributors need a Master Distributor to help them move excess inventory, they turn to Waldom’s Excess Inventory Management solutions.
Introduction
Waldom worked with a leading distributor in the electronic components industry, known for its global reach. This collaboration focused on addressing the challenge of slow-moving products that were accumulating on the shelves, a situation that can severely hinder a distributor’s profitability. By tackling this issue, they aimed to improve operational efficiency and sustain a continuous flow of revenue.
A Common Challenge: Excess Inventory
The distributor approached Waldom with a challenge that is common in the Electronics Distribution Industry: excess inventory. Excess, non-moving, or slow-moving inventory can present a number of challenges, including cash flow issues, physical space limitations, and the risk of obsolescence. The distributor needed Waldom to help find a way to move its excess inventory without sacrificing its ability to serve its customers. They sought a solution that would not only minimize its financial losses but actually allow them to turn these excess parts into profit.
Waldom offers three excess inventory solutions for distributors seeking to move their inventory, and presented them to the distributor.
3 to 1 Offset Order:
In a 3 to 1 arrangement, Waldom receives the distributor’s excess inventory and offers a credit note for its full value. In return, the distributor agrees to spend 3 times the value of the credit on Waldom stocked parts in the future. This is a good option for distributors with a lot of excess inventory that they need to move quickly. This strategy not only helps distributors clear excess inventory but also allows them to refresh their inventory with more marketable products, enhancing their ability to quickly turn over new stock.
50/50 Revenue Share:
Waldom will sell distributors’ excess inventory through its own distribution channel and share the revenue 50/50. This is a good option for distributors who want to maximize the value of their excess inventory.
Inventory Buyout:
Waldom purchases excess inventory from distributors at a discount to its original cost. This option is ideal for distributors aiming to quickly enhance cash flow, offering immediate financial relief.
Hybrid Solution:
Waldom can also create custom solutions for distributors who have specific needs. This method combines two or three of the above options to seek the best approach for a client’s unique distribution needs. The distributor opted for the first option, and the 3 to 1 arrangement has grown into a long, mutually beneficial partnership.
The Results: A Decades-long Partnership
Waldom and the distributor have developed a long and successful partnership through their excess inventory solution. By leveraging the 3 to 1 solution, the distributor was able to get rid of their excess inventory and buy strategic parts that they could sell with the credit that Waldom gave them.
The distributor was able to free up capital, reduce storage costs, and improve cash flow by getting rid of its excess inventory. They also avoided the risk of obsolescence and minimized its financial losses. Suppliers benefited from this strategy as well. The credit from the 3 to 1 solution allowed the distributor to refresh its inventory with new, more desirable parts. This transition from non-moving to strategic inventory items improved how the distributor represented the suppliers’ offerings, creating a win-win situation by boosting both inventory efficiency and sales potential. Overall, Waldom’s excess inventory solution proved to be a valuable resource for the distributor. It helped to move their excess inventory, free up space and keep their operations moving forward while making a profit. When it comes to slow or non-moving inventory, Waldom’s excess inventory management solutions create easy decisions for distributors. Whether you need a standard excess inventory service or a custom one, Waldom has you covered.
