Firms keeping hold of excess

Firms keeping hold of excess

Almost 75% of electronics manufacturers retain or dispose of their excess semiconductor stocks rather than release them back into the market, according to independent distributor Dionics.

Research among 200 UK OEMs and CEMs found that 65% of respondents kept spare chips `on the shelf’, while another 8% sent them to scrap.

Paul Chinery, Dionics’ MD, said: “Why do so few make any effort to realise a return on their surplus stock? The answer may lie in the current shortage of silicon. Possibly many manufacturers are unwilling to dispose of stock which they may need later on.”

With its own independent rather than franchised operation, Dionics wants to encourage OEMs to release the components through its market channel.

“To recycle stock is to help alleviate the problems of shortages. One company’s excess is another’s need,” said Chinery. “Probably of more immediate importance to manufacturers is that recycling surplus stocks also recycles money. Does it make sense to leave cash lying about in the warehouse?”

Dionics survey also found that, while most companies (55%) preferred to order components by phone and only 12% used the Internet by preference, online distribution comes into its own when a company’s traditional suppliers cannot meet an order.

Some 73% of the sample said they would go online to find out-of-stock parts.

Copyright: United Business Media Ltd.

COPYRIGHT 2001 Miller Freeman UK Ltd

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