Dynamics

How does this Dynamic adversely affect the OEM or EMS provider?

Below is an example of an OEM (OEM1) excess component. Notice the book price and compare it to the second OEM (OEM2) excess component listed below it.

(OEM1)
XXDCIXXXX37
PEF22554HT V2.1
INFINEON
IC Quad E1/T1/J1 Framer & Line IC for Long and Short Haul Applications TQFP
70pcs
$21.9520906

(OEM2)
LXX-1AXXXXXX
RoHS,MICROCIRCUIT/QF
INFINEON TECHNOLOGIES
PEF22554HT V2.1
2,000 pcs
$12.5677

As you can plainly see, OEM2 is clearly ahead of the game in terms of purchasing savvy. If OEM2 has a desire to sell these components, the sale would typically involve a broker. This Broker will attempt (normally with great success) to take the entire difference between the two example costs as margin, leaving the highly savvy purchasing skills of OEM2 completely wasted and allowing the Broker to strip them of the original cost advantage they once had. Brokers take advantage of this condition on a daily basis. Is this how YOUR excess components are sold? Rewarding your broker vendors for taking unfair advantage of your situation does not present a value to your company’s shareholders. It opens the door for more chaos and lost control of your overstock value. Unless that specific broker has an end-user at hand and the end user is willing to take the product at your book price, then your P&L is adversely affected.


An exclusive sale arrangement with XS Direct.NET will net you higher returns compared to Brokers because when you give your excess lists to the broker community it gets shared uncontrollably. This uncontrollable sharing of data leads to significant devaluation of your components. XS Direct.NET truly does provide a better solution for asset recovery AND sourcing WITHOUT broker involvement. At XS Direct.NET the entire gross sale amount goes directly to your P&L and cashflow.

-The XSD Team