Consignment

Over the past couple of years, the independent distribution channel has suffered a crunch in cash flow. As a result, the funds available to purchase "lots" of inventory have diminished. At the same time, the OEM and CEM community has realized there is a great opportunity in turning surplus and obsolete inventories into cash.

The business model that generates the highest rate of return is the consignment model, whereby a qualified independent distributor invests the time and effort to organize a "Lot" of inventory in a controlled distribution warehouse while the OEM/CEM continues to own the product.

Process

• Inventory shipped to Oxygen facility at the expense of Oxygen.
• Data collection & Inspection to optimize inventory for Resale
• Invoicing - Collections
• Payment to You

Advantages

• Product stored and handled to ESD and Environmental Standards with 24/7 security and access monitoring.
• Small Quantity, Partial Quantity Sales
• Proximity to Independent Distribution market with more than 1,500 Independent Distributors in the USA
• Sales handled by an experienced Distributor able to respond to requests for product photos, date codes, etc.

Revenue Result

• 50% of all income generated from stock.
• Monthly reporting and payment

*The Result may depend on the stock itself. IC, Memory, Diodes, and Transistors are of course what sell the most.