Subj : Info To : All From : Matt Mc_Carthy Date : Tue Apr 24 2001 07:32 pm Hi All. PARTMINER PULSE Weekly component alerts and market intelligence April 25, 2001 [As a change of pace, this week we offer for your consideration a short article written by Rick Hamilton, PartMiner's VP of Global Sourcing. The article was published in the April 23 issue of EBN, a CMP Media publication, and is reproduced with permission.] DO YOUR HOMEWORK BEFORE TRYING TO SELL EXCESS INVENTORY ON THE NET The rapid market downturn has many companies taking a hard look at managing excess inventory. They are looking around to see what resources are available, and checking out Internet-based approaches that have evolved since the last soft-market cycle. With increasing use of the Internet, lists of available inventory can be distributed more widely and more quickly. But there are pitfalls. For example, if you list excess with multiple Web sites, you may find that you're in competition with yourself in the bidding. The end result can be a lower return and a bigger write- off. Many inventory sales sites don't offer logistics, credit, transaction support, or guarantees on the products they sell. How well prepared is your company to handle transactions and logistics when using this kind of site? If the company does not offer a turnkey solution, then you'll need an internal process to pull, unpackage, inspect, repackage, and ship the product. You need to invoice the customer and work it through your system to get it written down. You're faced with carrying the credit of a potentially unknown entity. If your company is an OEM or a contract manufacturer, selling components is not your core business and can be a major hassle. When looking at a company that offers to help you sell excess inventory via Web-based strategies, there are some important things you need to know about that company. How does the site attract a large audience of potential buyers? Does the site have strong content and commerce capabilities that keep buyers coming back? How many registered users does the site have, what are their job functions, and how well does it track users' habits on the site? Does the potential Internet partner have a viable business strategy that drives revenue and profits-something besides online advertising? Is it a solid business that will be around over the long term? There are costs associated with developing a relationship with a new partner, and you don't want to do it too often. Other questions include: Does the seller of excess inventory have a process in place to assess the fair market value of your components, and the integrity to back it up? Does the seller offer a consignment model? The difference between a post and pray host and a full- service excess-inventory provider is the ability to handle multiple functions to allow you to alleviate your inventory problem with minimal hassle. Does the seller have a solid quality process in place? The ability to handle overseas transactions, dealing with multiple currencies, duties, and associated paperwork? Can the seller work with you to develop an ongoing process to manage your inventory float over time? Before you establish relationships, ask the tough questions. Doing the due diligence up front can help you avoid problems and get a better return on excess. ------------------------------------- For information about how PartMiner can help you with excess inventory, please contact Ron Theisen at mailto:rtheisen@partminer.com. For help with hard-to-find or shortage parts, Call your PartMiner sales representative, or: Call PartMiner Direct in New York, at 1-866-234-9890 (toll-free from the United States) 1-631-501-2800 (overseas) E-mail Jacqueline Fesefeldt at mailto:jfesefeldt@partminer.com .... or click here for our directory of sales offices worldwide: http://chtah.com/a/tA65j2xAEVDB2AFAFyHAEVWZTu3/013p1 FEEDBACK The PartMiner Pulse aims to give you a weekly dose of valuable market information, component opportunities, and occasional news about PartMiner, the Free Trade Zone, and other PartMiner operations. Please send your questions or comments to mailto:pulse@partminer.com WHO WE ARE PartMiner Inc.'s Free Trade Zone offers the world's largest database of electronic component information, a time-saving online marketplace for buyer-controlled RFQs and quotes, and an agent that scours the Web for inventory and price information -- all at no cost to users. Here's a link to the Free Trade Zone: http://chtah.com/a/tA65j2xAEVDB2AFAFyHAEVWZTu3/013p2 Our globe-spanning bricks-and-mortar-and-people resource, the PartMiner Direct procurement service, sources hard-to-find components for buyers who can't find what they need. PartMiner CSD offers enterprise-level collaborative sourcing and design solutions to deliver significant cost savings by optimizing the selection and management of components and their suppliers. For more information, click here: http://chtah.com/a/tA65j2xAEVDB2AFAFyHAEVWZTu3/013p3 TO UNSUBSCRIBE If you do not want to receive this newsletter, just click on the link below and then send the resulting email: mailto:remove-0AQtSslAyyJ93BYoutlBssPiMYN@adm.chtah.com Good luck... M. --- Msged/386 TE 06 (pre) * Origin: Matt's Hot Solder Point, New Orleans, LA (1:396/45.17) .