THE HIDDEN COST OF KEEPING EXCESS STOCK
The manufacturing and technology industries are constantly evolving. Characterised by fast-paced tech evolutions and decreasing component lifecycles, companies often end up with surplus electronic components that are no longer needed for production.
during these periods will see a greater depreciation than other inventory. Some of the stock will only sell for a fraction of the original purchase price, and with no immediate signs of a market recovery, this number may only depreciate further. As time goes on the parts may reach end of life (EOL) or become obsolete, or – if demand is low enough – even face
Holding surplus stock has several cost implications on a business. DEPRECIATION AND OBSOLESCENCE All electronic stock will face depreciation as time goes on, but due to the inflated costs during allocation markets, components purchased
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