Asset management and the redeployment of those capital assets can mean the difference between staying in the black and falling into the red.
Capital asset management and redeployment can often be seen as an afterthought for organizations in the manufacturing industry, when in actuality, this business area should be an essential part of a streamlined supply chain. Web-based asset management technology allows everyone from managers to employees to access detailed descriptions of capital assets, avoid unnecessary procurement of new assets, and determine redeployment opportunities for assets across the organization.
As many in the manufacturing industry know, solutions for idle and used equipment are few and far between, especially when discontinuing product lines or consolidating factories or locations. However, capital asset management can be seamlessly integrated into an organization’s structure with innovative asset management tools and a trusted reverse supply chain partner.
When managing assets, manufacturers should first invest in the tools necessary to complete the job. This can come in the form of software that allows managers to collect data on every capital asset that the company owns. Software will have fields for the life of the item, how often it is used, who utilizes the machinery, and other helpful information for strategic decision-making. A trusted asset management partner can provide web-based asset management software to make this process easier, as well as the expertise to value, manage and sell surplus assets. With comprehensive knowledge of their capital assets, business leaders can then easily track and redeploy equipment and machinery throughout their organization.
Redeploying assets can reduce spending and increase revenue. For example, one multinational electronics manufacturer worked with a wide variety of components across 350 subsidiaries. The large amount of disparate materials would cause some locations to purchase equipment that other facilities had far too many of already. So, the asset management partner assisted the manufacturer with handling and detailing the items. With in-depth insights into supplies, the corporation gained the ability to redistribute surplus assets, reduce the number of products purchased, and sell what could not be redeployed. Over 2000 assets were sold, recouping lost revenue in the short term, but over time, the manufacturer’s asset management skills increased, ensuring that no equipment was over purchased.
In another case, the asset management and deployment process, as along with a trusted partner, proved valuable for a multinational consumer goods manufacturer. During a facility closure, the company needed to account for and redeploy all assets. The partner provided its expertise to assist in cataloging and tracking the manufacturing equipment, but the process could not have been completed without the help of a web-based software platform that provided full visibility into all assets. By redeploying assets, the manufacturer saved over $2.8 million while providing other locations with the items necessary to improve their own productivity, leading to increased revenue throughout the enterprise.
Asset management and the redeployment of those capital assets can mean the difference between staying in the black and falling into the red. Instead of relying on paper-based systems and traditional methods, manufacturers can gain competitive advantage with their reverse supply chain after partnering with a company smarter asset management with the right tools for tracking and selling assets in their industry.