As the year winds down, we wanted to review our own “top 10!” Earlier this year, our team of experts published a feature article in The Property Professional entitled, “ Top 10 Factors in Selecting an Asset Disposition Partner To Maximize Your Investment Recovery.” With our list of top 10, we pinpoint the top considerations organizations should keep in mind to make smart business decisions when partnering with surplus asset management providers.
A good grip on your reverse supply chain is now vital to a business’s functions and its ability to create revenue and stay in the black. A few of the top 10 factors when selecting a partner in the reverse supply chain include vendor viability, investment in the future, ability to drive “green initiatives” and the ability to support multiple sales methods. A more in depth look at these critical themes are listed below.
- Vendor Viability, Experience, and Professionalism- Make sure vendor is well-positioned to manage your business and has the ability to stay in business
- Buyer Network to Maximize Returns – Are you confident in the service providers’ ability to promote the sale of your surplus assets to the widest, best-qualified audience possible?
- Investment in the future– Assess whether the vendor finds it important to develop long-term client relationships and if they are aligned with best practices in their business
- Global Operational Footprint for Seamless International Business Continuity – It’s critical to learn if a global service provider offers coverage via local offices in regional areas to support all of your operations
- Robust Depth and Breadth of Services – Another important element of coverage is the asset surplus providers’ ability to deliver comprehensive service offerings. Can the service provider manage the entire reverse supply chain or just a part of it?
- Ability to Support Multiple Sales Methods (Online Auctions, Sealed Bids & Negotiated Sales) to Maximize Recovery – The goal is to develop the ideal marketing and sales strategy for every asset and an experienced provider will be able to provide the right sales method suitable for the asset.
- Offers Redeployment Solutions – Another step to assessing coverage for investment recovery is confirming the organization has a mechanism for redeployment and the ability to move the asset to a sales channel, such as an online marketplace.
- Leverages Metrics and Marketing Strategy Best Practices – Regular reporting from the investment recovery service provider, as well as annual reviews and regular meetings, should greatly facilitate your analysis of the contributions made to the organization.
- Ability to drive “green initiatives” and sustainability programs– Nearly all leading organizations have sustainability programs to help protect the planet; ask the provider to supply case studies that validate their ability to support clients’ zero-waste goals.
- Provides Risk Management Solutions to Address and Mitigate the Top Compliance and Ethics Risks Encountered by Global Companies – For surplus assets, data privacy continues to be a hot topic in the reverse supply chain. Make sure to ask specifically how the service provider supports data and information security.
When strategizing your recovery plan, there are also crucial questions to ask of your vendor. A couple of these include: how has the service provider increased the client investment recovery in the past, and how has the service provider increased efficiency. Selecting a partner that can quickly and easily provide solutions and provide counsel to the company is key for strategic success in the reverse supply chain.
With increased challenges to thrive and succeed in an increasingly competitive environment, businesses need to reexamine their reverse supply chain and streamline processes to move their business forward. Heading into 2015, make a commitment to fully capture the value that exists within every surplus asset across the enterprise and applying the top 10 factors, partner with the right provider to optimize your reverse supply chain. If you want to learn more about how you can make the most out of your business and maximize your investment recovery, contact us.
Have a safe and happy new year from our Liquidity Services team to yours!