Established in 1999, Shanghai Obur is a high-tech industrial manufacturing enterprise focusing on two major domestic areas: automotive manufacturing and aerospace. After years of development and growth, the company currently has over 100 staff members. Roughly 10 years ago, Obur approached GoIndustry DoveBid (GIDB), a leading marketplace for surplus capital assets in a wide range of categories, to participate in GIDB’s auction for idle equipment from a global automotive company.
“GIDB covered most of the prep work required in acquiring new equipment. This translated to lower manpower cost for us”
Mr. Sun, manager at Obur and GIDB’s Obur liaison, was immediately impressed by GIDB’s operations, as well as the substantial benefits offered by the online auction format. “Through our partnership with GIDB, we have greatly reduced the amount of time spent on commercial work – from price negotiations, contract checking and signing, invoicing to pickup and delivery of equipment,” said Mr. Sun. All Obur had to do was inspect the equipment onsite and submit an offer. “GIDB communicated with the seller and took on the work that Obur would have had to do. In doing so, we have been able to lower our manpower costs to purchase new equipment by as much as 60%, while still obtaining the high-quality machinery we need,” said Mr. Sun.
With a successful participation in their first auction, Obur began to regularly take part in more events, submitting bids in no less than ten (10) succeeding online auctions. GIDB communicates with the seller and assists Obur in many steps leading up to acquiring the equipment: from price negotiations, invoicing, to pickup and delivery of equipment. “The sellers in GIDB auctions are all world-famous Top 500 companies in the industry, helping us feel assured that the source of the equipment is very reliable,” Mr. Sun said.
“In the future, we will continue to support GIDB and participate more in online auctions.”
As a new player in online auctions, China has quickly caught up with cashing in on the same gains other GIDB marketplaces like Europe and US have benefitted from. Clients like Obur have quickly embraced the new platform and seized the advantages of this new and optimal way to source used equipment. Mr. Sun says that one positive side of all these is that now, Obur manages to buy equipment at a fraction of the price. “Usually it’s only about 15%-30% of what it would have cost to acquire this equipment brand new,” he says. This is due to the low bidding competition in China – a benefit of a new concept which has been successfully tested around the world.
“The equipment is diverse, and GIDB is a one-stop shop to meet our demands”
In keeping with the Chinese government’s initiative to develop China’s re-fabrication industry, Obur acquires idle property for purposes of repair and resell. Other initiatives it has taken is the proper maintenance of equipment it has imported and the refurbishment of internal components and equipment spare parts. Equipment that no longer functions properly or is beyond repair Obur puts to use as internal training equipment. Obur truly makes the best use and unlocks the most value from every piece it purchases from GIDB.
The GIDB platform brings a wide range of global resources together, offering several purchasing options for Obur.