How to Pilot a Warehouse for Component Redistribution

If you have never redistributed your excess and obsolete (E&O) component inventory before, it can seem daunting.
This is especially true if you are a tier-one OEM (original equipment manufacturer) or EMS (electronics manufacturing service) with multiple locations. Partnering with a redistribution expert is a significant decision that requires strategic planning.
However, the financial and sustainability benefits make E&O redistribution with a trusted partner like Component Sense worth trialling. Unlike traditional brokers, Component Sense does not cherry-pick only the highest-value parts; we address the full issue. If you choose a redistribution solution like InPlant™, we can help recoup 100% of the cost price for the components, sometimes even more.
The good news is that you can trial redistribution risk-free in just one warehouse.
The benefits of piloting a warehouse for component redistribution
You may have heard the saying ‘try before you buy’. A similar concept applies to manufacturers wanting to test the validity of redistributing their excess inventory electronic components. A tier-one manufacturer can experience the benefits in a single facility before expanding the rollout to other sites by piloting in just one location.
Some manufacturers hesitate to redistribute E&O, fearing operational disruptions and a lack of pricing transparency. By piloting a warehouse, you can experience for yourself that these fears are unfounded. Our online portal provides real-time inventory and sales updates. Before redistribution begins, you receive a detailed pricing breakdown based on 23 years of market data.
Component Sense removes the risk of manufacturers piloting a warehouse by requiring no upfront cost, offering transparent pricing, and protecting your inventory data. Our mission is to make it as easy as possible for electronic manufacturers to redistribute their electronic surplus and promote circularity.
How the pilot process works
Step 1: Send us your initial inventory list
The first step is simple. All you need to do is send us a basic list of your surplus electronic component inventory from your MRP (material requirements planning) system. The data we need for each line item includes:
- Package type (reel, tray, etc.)
- Quantity per part
- Manufacturer part number (MPN)
- Manufacturer name
- Part description (if available, functionality, size, etc.)
- Unit cost price (if possible)
This data enables our pricing software to generate accurate valuations.
Step 2: Receive a transparent, line-by-line pricing breakdown
Component Sense’s pricing is completely honest and transparent. If a part has low market value or is difficult to redistribute, we tell you upfront. Our pricing process involves comparing 23 years of historical data with current market conditions to analyse the demand for each component.
You will receive an initial pricing breakdown, including:
- Live market value of your stock overall
- A pie chart showing the split of commodities by line count, quantity, and value
- A summary list which includes:
- Total market value
- Average line value
- Potential cash bid estimate
- Expected return from consignment
- An overview of current market sentiment
- A breakdown of the top 10 line items by value
- A breakdown of any miscellaneous items that could not be priced
Step 3: Approve pricing and arrange logistics
If you have any questions about the pricing, we are happy to answer them and talk you through the details. Once you have reviewed the pricing we provided, logistics can be arranged. Component Sense covers all costs for stock inspection and sale.
Thanks to our partnership with global logistics company DSV, we can also organise storage for your E&O stock at a local warehouse. Once pricing is accepted, your E&O can be uplifted within 48 hours.
Step 4: Stock goes live on the market
Once inspected and processed, your E&O inventory will be listed on Component Sense’s online store. From there, we will market your parts to our global network of over 4,500 brokers, OEMs, and EMS buyers.
To ensure maximum exposure, we utilise:
- Active outbound emails to brokers and buyers
- SEO (search engine optimisation) to help inventory listings rank at the top of organic Google searches
- PPC (pay-per-click) advertising, which can be arranged as needed
Step 5: Track sales and receive guaranteed monthly payments
Our 24/7 online sales portal makes it easy to track the progress of your surplus electronic parts. With per-part analysis, you can monitor quotes, orders, and sales trends over time.
As your E&O stock is sold, we provide guaranteed monthly payments with clear invoicing, giving you a steady flow of income.
Step 6: Review results and scale up
As well as real-time sales tracking, we offer quarterly business reviews (QBRs) with expert inventory insights. This is a great opportunity to ask questions and provide feedback, tweak processes to align with your operations, and plan how redistribution can be optimised for your business.
If you are satisfied with the results of E&O redistribution with Component Sense after a three-month trial (which we know you will be!), it may be time to expand the solution to your other warehouse sites. We can operate anywhere in the world.
Start your risk-free warehouse pilot today
With no upfront cost, piloting E&O redistribution in one warehouse proves the value of Component Sense’s solution before scaling. Having data on the success of the redistribution pilot can also help secure internal buy-in from key business stakeholders.
Fill out the form below to learn more about trialling one of our redistribution models for your location.