I n the electronics supply chain, few topics spark as much debate among buyers as excess inventory. For some, it represents a valuable source of affordable, readily available components; for others, it signals risk – raising questions about traceability, reliability, and long-term support. For procurement professionals navigating today’s uncertain market, understanding what excess inventory is and when it can (or should) be used is essential to making informed, responsible sourcing decisions. Excess inventory typically refers to electronic components or finished goods that remain unsold after production requirements or customer demand have shifted. These parts might originate from manufacturers, contract assemblers, or distributors that ordered more than required, or EDITOR’S NOTE
from design changes that rendered older components redundant. In a fast- moving industry where obsolescence cycles are short and forecasts are often volatile, excess stock can build up quickly. For buyers, sourcing from excess inventory channels offers clear potential benefits. Chief among these is cost. Surplus components are often available at lower prices than those in traditional franchised channels, making them attractive when budgets are tight or when buyers are seeking value in non-critical applications. Availability is another advantage: during periods of allocation or extended lead times, surplus markets can provide access to components that may otherwise be difficult – or impossible – to secure through authorised distribution.
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