For the first time in history, excess inventories have reached record levels at the same time that the world is caught in a global chip shortage crisis. Savvy OEMs and contract manufacturers have begun cashing in on a gold mine they are sitting on; their growing electronics parts inventories.
Eager buyers, desperate to locate hard-to-find parts, are paying top dollar for other companies’ inventory.
Inventory that would otherwise sit on shelves until eventually scrapping them months/years later (for pennies on the dollar) has now become a valuable commodity.
What’s Driving Excess Electronics Parts Inventories Higher?
- Double-ordering- Companies, once they locate a supply of hard-to-find parts, are double and triple ordering to make sure they do not run out in the future.
- High MOQs- Despite the global shortage, many distributors and brokers are often requiring high minimum order quantities.
- Chaotic Demand Forecasting- Rapidly changing forecasts from customers are hard to keep up with, resulting in unintentional over-ordering.
Collaborative Commerce Role
How to Find Buyers for Your Excess
When Will the Chip Shortage End?
The global chip shortage crisis is showing no signs of getting better. Lead times reached an all time high in Q1 of this year and some estimates have the crisis extending into 2025.