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Why not make it a Resolution to Maximize your Asset Recovery this Year

Two weeks already into the New Year, I know, I know. But better late than never, eh folks?

Well, the honeymoon for making New Year resolutions must be wiping off by now, let alone busy breaking some personal ones we set for our personal selves! You can be forgiven, it’s still early to start over again…

As individuals are busy making and breaking resolutions, organizations too should not be left behind (in the making part that is), and in fact, a business’ objectives are more inclined to work out. So, if you haven’t set objectives you want to achieve this year, why not go back and brainstorm with your team. There’s that small change you’ve always wanted to see. Now is a good time.

When it comes to the issue of asset recovery, I can tell you for a fact that 20 percent of the average organization’s assets are surplus to requirements at any given time. You would notice it if you paid more attention to it; it’s an often neglected area. But now that we are in the new year, why not make it a goal to turn these assets into working capital or cost savings instead of just letting them sit idle soaking in dust and losing value?

Biggest Drawbacks to Businesses not Achieving Surplus Goals

A lot of businesses find it a challenge to manage their excess inventory due to the difficulty associated with tracking the assets. And this particularly rings true for those with multiple locations scattered across the globe, or in a wider geographical zone. Unless they have a proven and consistent process of identifying and managing the surplus, of course it’s going to be hard.

For some others, they know all too well what surplus they have, but they are wanting in terms of their internal capacity to manage the surplus as effectively as it should be. These days, a lot of large firms are investing substantially in a bid to enhance their supply chain capabilities. Often the case though, even those enterprises who consider the word ‘cash-strapped’ jargon find surplus asset management outside their scope of specialization.

Regardless of the reasons behind your company not attaining its asset disposition objectives, the fact remains these equipment are a liability to hold on to; whether we are talking rental fees for storage space, or the investment capital they are holding back that could be pumped into other segments of the business.

Point is, liquidating these assets or redeploying them will help you scale back on costs that could otherwise be avoided. Along with that, it also boosts operational efficiency by maximizing their value.

Basic Steps to Achieve your Surplus Resolution

That said, here are three steps you could follow in 2016 and beyond to make the most of your surplus equipment.

Identify your surplus: Where is the surplus located – in satellite offices or warehouses? In different states/regions or countries? Make it a point of getting a hold of this information and store this data into an asset management system which will help you in maximizing the equipment’s value throughout their lifecycle (of redeployment and reselling).

Determine which assets will be sold and which will be redeployed: Is your equipment just lying idle in a warehouse or taking up space on the factory floor? Which between redeploying or reselling this excess would best serve your organizational needs? Would such an asset be useful to another division within the organization? These are questions that would help you determine the best strategy to handle your surplus.

Sell or Redeploy: There are multiple profitable avenues of selling the surplus such as online marketplaces, or partnering with a trusted asset liquidation company.

The good thing about a partner is that they have a vast buyer network of both individuals and businesses interested in your kind of surplus, plus they can offer multichannel marketing and sales strategies. Asset recovery services maximize your chances of finding the right buyers out there as well as maximizing the asset recovery value.

So go ahead, it’s not never too late to make such a decision in your business.

To good fortunes ahead!

Call us today at (650)-456-1594 or use the form below to request a
consultation to discuss how Excess Logic can help your company
with all of its Surplus Asset Recovery needs.

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