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MPI offers a number of customized asset recovery programs for customers' excess materials - each solution is designed to meet the accounting and logistical goals of each individual customer and maximize returns on materials investment. We build each solution around the specific situation, needs and procedures of each customer, and we present a number of options to meet those needs: Having a customers' excess material in MPI's stock greatly eases and expedites the selling process (product advertised as 'in stock' is much more attractive to buyers and can often fetch a premium); our most effective solutions require material to be in MPI's warehousing facility. Inventory Buyback Program This solution is geared toward companies whose priority is return on investment. It allows for up to 100% returns and is geared for higher returns over the long term. As a company purchases new parts from MPI, we share either the built-in profit or the savings from the customers' standard costs with that customer, using that revenue to purchase the excess material at whatever rate of return is desired. Consignment/ Shared Revenue Program With a consignment, MPI allows the customer to set the acceptable rate of return for any sale, rather than set out guidelines that may not be accommodating to the customer. This solution is geared toward companies whose priority is to get the material out of their facility and to not have to deal with the handling, storage, quoting or selling of the material. An example of a shared revenue arrangement would be, for every $1 of material sold, MPI returns $.80 back to the customer. Exclusive Marketing Agreement This arrangement is best suited to companies that need to keep their excess material in-house, but wish to avoid costly broker competition and overlap: when a manufacturer uses multiple vendors for its unconsigned excess material, it creates false surplus in the market and drives down market pricing. With an EMA, the customer again sets the price floor and MPI works at a set percentage of the sale price, allowing the customer to realize maximum market value for their material. Bid Management and Direct Purchase This option is a good solution for companies that need to get their excess material sold and off of their 'books'. MPI will break a customer's list of material into different product groups and illicit separate bids from commodity-specific buyers, to combat the low-return nature of selling material as a lot. MPI also buys material for our stock, but we rarely recommend that a company go that route and accept the low returns associated with a lot buy. |
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