Ineffective asset disposition can result in margin erosion, inventory excess and unnecessary waste. Our approach to excess inventory starts with a mapping of the sources of excess inventory to identify ineffective processes. Often we detect a client’s inability to effectively manage aged inventory and utilize all available channels for disposition as a root cause.

Some companies spend millions of dollars a year scrapping product unnecessarily. When repair and return to forward logistics is not an option for a returned product or component, many clients choose to dispose of products and materials by leveraging ModusLink’s online auction portal, ModusLinkAuction.com, which solicits competitive bids from pre-qualified buyers on the tertiary market. Our Online Auction Service helps clients rapidly liquidate excess, obsolete, returned and refurbished inventory to mitigate the high cost of traditional disposition methods. Our clients frequently receive bids up to three times higher than if they limited their scope to include only the traditional post-market buyers.

Depending on the client’s specific business objectives, ModusLink can sponsor auctions for clients anonymously, using our White Label program, or under the client’s name for maximum brand exposure. The Online Auction Service includes customized auction site design; product cataloguing; buyer invite and registration; payment processing and collection; market intelligence; performance reporting; and coordination of shipping, transportation and customs clearance processes.

The combination of moving from a reactive to a proactive disposal strategy and the addition of multiple direct and multiple indirect channels has proven for many clients to be a valuable advantage in effective end-to-end supply chain management.