HYPERMICRO MAKES FAST WORK OF CIRCUIT CITY INVENTORY MOVING 440,000 ITEMS IN 450 CATEGORIES

HYPERMICRO Systems, Inc. acquired the Circuit City distressed inventory valued over $100 million from major electronics retailer, Circuit City.

The challenge confronting HYPERMICRO was 9000 pallets needed to be sorted, processed, tested and/or refurbished. And the shipments contained everything from iPods to TVs to computers, gaming systems and microwaves to vacuum cleaners.

The volume of products – some 440,000 items in 450 categories necessitated a minimum of 250,000 extra square feet which HYPERMICRO set up and arranges within 5 days. (See picture of warehouse set up for this project).

"We had to move 350 trucks from 6 Circuit City distribution centers nationwide.  And we needed to move fast as it was costing Circuit City 50k per day in their distribution centers. Our target was to remove all the items rapidly into our new facility”, COO, Felix Shalit remarked.

"Circuit City approached us having become aware of our expertise in being able to liquidate a massive amount of inventory in a very short period of time, Founder, Mr. Yurovsky explained. "We knew we had the resources and capabilities despite the enormous task. Fortunately we had all the systems and processes in place along with the logistical expertise to pull it off and we were certainly up to the challenge. We also had the confidence, which has proven to be true, that we had the distribution outlets be able to move the inventory viably”, he concluded.

The company has established critical partnerships with such industry leaders such as Intel, Seagate, Dell, and Hewlett Packard.

Over the past year HYPERMICRO also managed the automation of its internal sales and inventory processes, significantly increasing the efficiency of company operations which helps to provide its partners with a higher return for the inventory. But they faced a much larger challenge; "We had to create a special software in order to receive and process mixed products”, explained COO Felix Shalit. "The same pallet might have 100 different items for re-sort”, he continued.

The company, headquartered in Buffalo Grove, IL provides reverse logistics and asset recovery services to major electronics manufacturers.

HYPERMICRO is a Gold Member of the Reverse Logistics Association since 2004 and a member of the Service Industry Association.

HYPERMICRO has increased company revenues by an average of 30% a year over the past 11 years. "I successfully started and developed my own business from an initial investment of $3,000. We now have over 100 employees in two locations” he stated.

As has been the case for many years, HYPERMICRO exhibited at the recent February 2010 show in Las Vegas. "It was a great opportunity to create new business relationships, visit with our vendors and customers and increase our understanding and knowledge of the industry, Mr. Shalit concluded.