ProcurementPro: The practical guide to excess inventory

COLLABORATIVE RECOVERY: REDEFINING PARTNERSHIPS IN SURPLUS MANAGEMENT As global supply chains recalibrate from a period of over-ordering and volatility, procurement leaders are facing the challenge of surplus electronic components. Inventory that once symbolised preparedness during the shortage era has become a hidden drag on balance sheets, warehouse efficiency, and sustainability goals. In today’s market – defined by geopolitical tension, technology shifts, and rising capital costs – the companies that thrive are not those with the least surplus, but those that know how to extract value from it through collaboration.

T raditional liquidation or auction- based methods of mitigating surplus provide quick relief but deliver diminishing returns. They often sacrifice visibility, create traceability gaps, and risk exposing products to unauthorised resale channels. The outcome is transactional efficiency at the expense of strategic control. Forward-looking organisations are instead embracing collaborative recovery: a structured, partnership- driven model that transforms static inventory into a managed, traceable, and revenue-generating asset.

THE SHORTCOMINGS OF TRANSACTIONAL LIQUIDATION When surplus inventory is treated as an afterthought, organisations lose more than financial value – they risk reputational and operational exposure. Quick liquidation may appear to free up capital, but it frequently leads to several hidden risks: • Loss of visibility and control: once parts leave a facility through secondary channels, chain-of- custody is often broken. This lack of traceability can create downstream

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