excess stock march15

8/18/2019 Excess Stock March15

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‘the answer comes out of the Blue’

IC Blue LTD

Asset Management Programme

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Maximize Asset Recovery Values


At IC Blue our priority is to make sure that we maximize asset recovery values.

Since our inception we have expanded our active customer base to over 800

companies in over 80 countries.

This allows us to successfully focus any asset recovery to the correct potential

customers in markets that are already known to us.

When it comes to inventory management, time is never on your side. The pace at

which new product is developed and the pressures of production ensure the

erosion of value within a very short period of time - often just months or even

weeks.



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Valuable Cash Flow


Stagnant inventory on the shelf ties up valuable cash flow and can greatly affect

new product launches.

IC Blue believes that the way to maximize profitability is through proactive,

progressive inventory asset management.

We ensure that you have the best in class channel partners for swift professional

disposition of inventory for maximum financial recovery which is paramount to

ensure the highest possible financial return.



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Product Management


We buy all types of semiconductors, passive, discreet and connectors.

Based on historical data, IC’s will generate the most income.

Low volume/value passive components (partial reels of capacitors or resistors for

example) will generally have little or no value as would programmed devices thatare not erasable (OTP) this also includes any ASIC devices.

If a component is genuinely surplus to requirements and no demand exists,

the fact that it is obsolete is irrelevant.



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Current Client Programmes


Currently for our OEM/CEM customers we are actively selling excess stock:

400k+ - line items (approx)

100+ - different OEM/end-user customers

Country of origin – Mostly Europe but also Tunisia, South America, Mexico, China

and USA

Key Excess partners –

Arcelik (Beko), Pace Plc, Sagem, Flextronics, Alcatel, ADD Semi (Atmel), Parker

Hannifin, Bombardier , Philips Lighting, Cooper.

Key consignment contracts –

Honeywell Control Systems, Stadium Power (global sites), Analog&Micro.



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Marketing


IC Blue actively markets your excess globally via:

- Targeted customer profiling.

- Use of industry sales platforms.

- Crossed against current open requirement.

- 20+ in house native language speakers.

- Over 40k spent annually on active marketing.

Reputation –

IC Blue has been actively selling excess for over 12yrs which has culminated in a loyal customer

base and robust reputation for service, price and quality. We are one of the market leaders for selling

excess back to the market. We are continually assessed for customer satisfaction as part of our ISO

9001:2008, AS9120revA, SC21 accreditations.

In the following slide is a current snapshot of the markets opinion of IC Blue’s operation.



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Profile and Reporting


60 customer ratings from 2014/15 4.8 out of 5 average rating



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Reporting


60 customer ratings from 2014/15 4.8 out of 5 average rating



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Pentagon


Sales results in real timeWe can monitor the current status of your consignment goods at any time through our comprehensive system

- Pentagon. We can track the status of your goods at any point:

All sales and quotations are displayed in Pentagon with all the relevant data to hand. We can see when there

is a transaction on your consignment stock immediately and give you active market data on fast moving as

well as slow moving stock so we can amend pricing to capitalise on shifting commodity valuations.



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Location


Leeds All IC Blue stock and stock held on consignment is located in Leeds for immediate same day qualification and

shipment globally. This flexibility allows us to maximise market value by reacting to global market forces in

real time

- 5000 sq ft fully esd protected

environment

- Central location for good transport links

- 24/7 global operation

- 10k sq ft auxiliary warehousing available



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One off payment


An outright excess purchase can be arranged within a day or so.

Your stock file undertakes an in-depth market appraisal and a one off financial

offer will be made.

This option is the most efficient when you need your warehouse space back and

the cost of the components has been covered or is no longer a burden on your

P/L.

You have the reassurance that when IC Blue makes an offer we have the financial

strength to back it up.

No hidden charges and no transport costs will apply.



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Consignment proposal


Consignment programs can take a little longer, though it will typically returngreater revenue.

The most successful Consignment programs are implemented as an ongoing

inventory cleansing exercise. As and when overstocks are identified they are

shipped to us to add to the consignment program.

Our sales and marketing team continuously monitor market prices to ensure that

the best possible price is attained for each of your parts.

Alternatively you can suggest potential resale values and advise a spectrum of

flexibility. Either way you retain title of goods until sold and can request any

product to be returned to you.

Monthly reporting clearly outlines sales and open book

accounting gives you peace of mind.



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Optimal process work flow


1. Assessment of stock list in excel

As much detail as possible to be included, if available: Manufacturer PN, Qty, DC, packaging,

buy price

2. Price agreement – 2 options

- IC Blue to decide the sell price at any given point based on market conditions,

age of stock, historical prices etc.

- High value items individually priced by the customer to maintain a specific value

- approval sought to move outside parameters.

3. Stock held at IC Blue on consignment to allow for immediate same day shipping.

4. Report of sales submitted every month to the customer for an invoice to be raised.

5. Percentage split decision based upon: stock profile, storage cost, ongoing arrangement



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Management of Excess Inventory


IC Blue knows that management of excess inventory, no matter its value, is

seldom your top priority.

Our business services are created precisely to relieve you of the burden of asset

management.

Whether it’s a simple outright cash offer, or creating a bespoke formula for each

case as it arises, IC Blue lets you focus on your key priorities, resting assured that

asset management is in capable hands.

The IC Blue team looks confidently forward to working with you

to tackle future inventory management issues

excess stock march15

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