When it comes to manufacturing electronics, there is one thing that steadily remains true: things are constantly changing. Abrupt shifts in demand levels, component life cycle changes (obsolescence), and miscalculations during the ordering process by a procurement team are all possible factors that can lead to excess inventory challenges. It can happen to any company, regardless of size.

Excess parts take up valuable warehouse space that a company could potentially be using to store items that its engineers have a use for or will have a use for in the future. Following are three options that are available when it comes time to move on from your excess:

Line Item Purchasing

A company may assign somebody in house or a third-party service to list all of their surplus items for sale in online marketplaces. Some of it may sell over time, however, this process will most likely prove to be unnecessarily expensive and cost employees valuable time that could be better spent elsewhere.


Liquidation is when all the surplus materials are sold at once for a lump sum. This is a much faster option that can clear warehouse space quickly, however, it may not be the most efficient. Many managers may be enticed by the prospect of moving all their excess quickly while getting an immediate return, however, liquidation often involves greatly devaluing each product to prices well below what they are actually worth. This is still better than letting the components sit and take up space, but there is still an option that can help maximize the amount of money earned back.


Consignment can be described as a partnership with a company in which the excess is shipped to the partner’s warehouse and posted for sale. The original company still owns the parts, and they come up with a predetermined split for profits made on the sale of each line item. Storage space is immediately cleared up without a massive devaluation of the surplus products. The partner company should ideally be an expert in the space and have a wide network of connections and places to post the consigned inventory for sale in order to maximize the number of eyes that the products are getting in front of.

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NetSource Technology has been providing companies with excess inventory solutions for over 20 years. With a dedicated team of experienced professionals and fully customizable plans available, we can provide any business with the partnership that it has been looking for. NetSource will maximize the return on your investment by utilizing our strategically located network of procurement professionals across the globe to find the best price out there.

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