We asked the managing director or Easy-XS.com to comment on consignment and other outdated excess disposal methods. Mr Renzla said: 

"Once thought of as simply a by-product of the manufacturing process, excess inventory and overstocked items have gained more attention in the past few years. Competitive pressures placed on Manufacturers have placed added emphasis on receiving a better return for their excess and overstocked items". He continued, " For years, brokers and independent distributors have purchased excess and overstock for virtually "pennies on the dollar" and have then stocked and re-marketed these products. Returns to the manufacturer for these types of purchases were typically in the 5% of cost range and they were looking for something better. As time went on, consignment came into vogue as a way to return more of the revenue for excess sales to the manufacturer. By consignment I mean, the excess is shipped to the broker who then inventories it and places it for sale. Once sold, the revenue is then "split" with the manufacturer. Consign splits typically are 50/50 or 60/40. Much better for the manufacturer, but of the inventory sent in on consignment, typically only 20-30% sells and with the broker representing the inventories of several manufacturers you lose control of what gets sold when and for how much. Additionally, companies have reported inventories sitting on the shelf of brokers, who have not managed to resale it, for periods of over 4 years. Not only does this tie up the revenue return to the manufacture, it reduces the value of the goods(date codes) and leads to distrust and friction with the broker".

He says, "Finally new methods are available. Designed with the manufacturer in mind are excess inventory websites that provide a way for the manufacturer to sell their own excess and overstock. Major manufacturing firms are now receiving the market value returns for their excess and now can justify placing an employee as the interface between the internet and their excess. Basically becoming their own broker for the parts. If you are a manufacturer who has excess to dispose of,  I encourage you to look into this new trend in excess inventory disposition for far better return and complete control of your excess inventory."