The worldwide chip shortage is the most severe it’s ever been, and some companies are turning to Collaborative Commerce as a solution.
What is Collaborative Commerce?
Collaborative commerce (c-Commerce) involves using new technologies to optimize a company’s supply chain through collaboration.
Elements of Collaborative Commerce:
- Typically, c-Commerce is a business-to-business (B2B) transaction involving a trading community or a segment of an industry.
- Buyers and Sellers might use a common platform to share information, and agree to abide by the rules of the collaboration community.
- Often, the buyers and sellers are rated by their peers, just as in e-commerce platforms.
- Finally, many of these platforms offer anonymity and buyer protection against fraud and counterfeiting.
Shortage Crisis- Recent Reports
Here are a few recent reports on the chip shortage crisis:
According to AVNET’s Feb 22′ Lead-Time Guide, lead times have reached 80 weeks for some parts, with 52+ weeks more common than ever.
Intel’s CEO expects the chip shortage to last into 2024
To combat this crisis, many companies are turning to Collaborative Commerce platforms like Silicon Valley-based MOQller.
MOQLLER: A Game Changer for the Worldwide Chip Shortage Crisis
MOQller has created an innovative platform where companies can solve supply chain problems through collaboration.
Because companies can exchange information online, they can reach a much broader audience.
This allows buyers of parts they can’t find to locate sellers of parts they don’t need.
MOQller leverages a simple fact of component supply chains: “one company’s shortage is often another’s excess”.
Reducing Excess- At a Profit?
According to a recent study by Hewlett Packard, the average salvage value of excess inventory is less than 5%.
Collaborative Commerce promises to disrupt this common practice by allowing companies to sell parts as soon as they become supply chain excess, while the parts still retain their market value.
There’s never been a better time to sell off excess material. MOQller customers are selling excess at a profit to eager buyers happy to pay top dollar. It’s a win-win.
CFOs May Be the Happiest of All
Even mid-sized OEMs and Contract Manufacturers have millions of dollars of working capital tied up in excess inventory at any given moment.
Freeing up this working capital is critical to reducing the cost of capital, storage, and many other costs related to carrying excess inventory.
Collaborative Commerce Promises True Sustainability
Inventory optimization has been the goal of sustainability programs for years. One often hears of the “circular economy”.
By offering true supply chain transparency, c-Commerce offers a true path to true sustainability and reduced excess inventory scrappage that simply has not been possible before.
Summary
Collaborative Commerce is the disruptive technology that will forever change the electrical component industry, and for the first time inventory optimization is an attainable goal.
More and more companies are joining the c-Commerce revolution, eager to leave the old supply chain inefficiencies and waste behind. MOQller is at the forefront of this revolution.
About MOQLLER
Located in the heart of Silicon Valley, MOQller is a collaborative commerce platform for electronic components that allows companies to optimize their inventory by selling or buying directly from their peers. The driving principle behind MOQller: One company’s shortage is another’s excess.