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Consignment Q & A

06 Aug 2018

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With the ever-changing electronics world making it difficult to accurately forecast stock demands, excess inventory is an issue all Original Equipment Manufacturers (OEMs) face, and there are many ways to tackle it. A quick option is to sell as a lot and be done with it, however this may not get you the best financial return. Another option is to manage it in-house, selling line-by-line, but this can be costly in time and resources.

CCL offer a third option – Consignment Partnership.  

What is Consignment Partnership?

Consignment Partnership is the best solution for your excess stock when you need to free up warehouse space, want a high financial return, but have time to wait for market demand in order to achieve the best prices. We take your excess electronic components inventory into our warehouse and proactively market your stock on your behalf, whilst you maintain ownership. You’ll typically receive between 30 and 60 % of the original purchase price; and if market conditions are right, much more.

How does it work?

The first thing we need is your excess electronic components stock list. We have a team of account managers that can evaluate the list and work out if Consignment Partnership is the best option for you. If it is, we arrange shipping from your facility to ours where our warehouse team check quantity, date code, RoHS and packaging. We then list the parts as ‘in stock’ and sell it on your behalf when demand dictates. This is all covered by written agreement which can be tailored to meet your needs.

What can we Consign?

All types of active and passive electronic components

Any quantity

Any age

RoHS and non RoHS

Who decides on pricing?

One of our account managers will look after quotes for your parts and they can provide prices based on market conditions and market demand. However, if you would prefer more control over your stock, you can set the minimum resale price. Of course, we will at all times endeavour to sell at the highest price possible, to ensure you are getting the best financial return possible.

Can parts be recalled if needed for own production?

Yes -  You maintain ownership so can recall specific lines or even all stock if required. We understand you may have demand for these parts again so providing they have not already sold, we can arrange shipping back to you.

What will it cost?

Nothing! Consignment is a zero-expense option. All administration and freight costs are paid by CCL, including any recalls of stock.

How do we know what is being sold and when?

We will provide a monthly sales report detailing parts sold, quantity, price and of course your return amount. You get 70% of the sales and we keep 30%. We run an open book policy, so this information can be accessed at any time upon request.

Can we add to our Consignment lot at a later date?

Yes – Excess stock is an ongoing issue. New excess you identify can be collected and sent to us to add to your consignment lot. We can extend the contract to cover future excess.

A Consignment Partnership Case Study

THE JOB

To liquidate the assets in a site which has closed.

THE CLIENT

The company is a multinational Original Equipment Manufacturer (OEM) of Telecoms whose German site is closing down.

THE CHALLENGE

To complete an inventory listing for the site and evaluate the saleable assets.

THE SOLUTION

Due to the lack of staff at the site, CCL sent 2 members of their team to the client’s site in Germany to complete the inventory listing. A team of 5 then went to the site and spent 1 week sorting and packing the component. Once the stock was packed it was shipped to CCL’s warehouse ready to be resold under Consignment Partnership.

THE BENEFITS

The client was able to clear their warehouse without having to provide staff to complete the job. They began receiving a return for their redundant stock one week after the parts were shipped to CCL and received monthly reports on the sale of the stock from then on.

To summarise…

….there are many benefits to the Consignment Partnership option;

•       No risk

•       Highest possible return for excess stock

•       Clear space in your facility

•       You are in control

•       Saves you time and effort  - It’s easier to sell direct from our warehouse as we have the time and staff to deal with the enquiries

•       Shorter delivery time to our customer (more desirable and higher chance of sale)

•       Minimum resale price can be set if preferred

•       Your excess could be someone's demand

•       Strictly confidential

To find out if Consignment Partnership is the best option for you, or if you have any further questions, get in touch with CCL today. Send your list to Marketing & Sales Assistant, Jodie Glover at jg@oemxs.com

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