trading philosophy

Put the market to work for you.
Typically, OEMs and CEMs engage in two types of open market transactions: shortage buys and excess inventory liquidation. These transactions almost always result in a deficit. You pay more than standard cost in shortage situations, and incur significant losses on excess assets.

Fortunately, the open market offers a third type of transaction, which we call cost reduction. A cost reduction strategy involves purchasing material outside of franchise distribution channels, when it becomes available, at a significantly reduced cost.

The E-source® Management Program helps OEMs and CEMs to aggressively utilize the cost reduction transaction to achieve a balancing effect. By consistently gaining significant cost advantages on spot market purchases, many of the overages and losses associated with shortage and excess can be offset. Further, your association with E-source gives you a tool to uncover cost reductions and bottom-line improvements that might never have occurred to you.

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