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Spot Market Overview
 

YOUR BETTER CHOICE ON SPOT MARKET

About the Spot Market
The spot market, also known as the open market, is a highly competitive market, trading on which is full of challenges and advantages. Any buyer or seller, such as manufactures (i.e., OEMs, ODMs, CEMs) and distributors (i.e., franchised distributors and non-franchised distributors), is free to participate in the spot market to resolve excess inventory caused by overstocking or shortages occurred from production limit. Products include all types of both Active and Passive components, as well as memories devices, CPUs and computer peripherals etc. Vadas is a pioneer in the spot market, providing services for the world’s leading OEMs, ODMs, and CEMs throughout U.S., Europe and Asia.

Challenges Of The Spot Market

  • No matter you’re purchasing or selling electronic components, transactional velocity, also referred to as the Lead Time, is essential in high-tech manufacturing. The shorter you can locate critical parts in a shortage market or liquidate excess stock the more market share you can win.
  • Faulty parts, counterfeit components and substandard products congest the spot market. Quality control becomes more and more critical but also crucial.
  • Non-sufficient-check, wire fraud and RMA without refund turn to be the often issues. Every player in the spot market has to face the risk of commercial credit.

Advantages Of The Spot Market

  • No others and do better than the spot market to solve your emergency procurement of either highly allocated products or obsolete parts.
  • More than 80% of the OEMs, ODMs and CEMs benefits from the liquidation of excess inventory.
  • It is estimated that up to one-third of all procurement occurs outside of pre-arranged contracts. Recognizing the effective cost management advantages that the industry can offer, more and more manufactures avoid the lost of fluctuating supply and demand.

Vadas’s Competitive Advantages
Despite the challenges of the spot market, Vadas has demonstrated the industry’s best practices relative to independent distribution solutions. Vadas’s advantages include:

  • Vadas offers world-class fulfillment and logistics. International priority transaction method assures the shortest lead time for your spot-buy program.
  • As an ISO9001:2000 certified trading community, Vadas is kept away from incorrect supply due to its comprehensive Supply Chain Management and Quality Control System. 6 months’ guarantee is provided only by Vadas among all independent distributors.
  • Vadas maintains an advanced system, which stores all detail of transactional information. It enables Vadas to evaluate product tactically, to determine the most efficient sales or purchasing channel to use, and to prevent pricing from artificially inflation or devaluation in the spot market.
  • With the most dedicated field sales team and purchasing team in the open market, Vadas offers the most creative proposals not only for your current business but also for integrating your supply chain management.