Tom Burton- August 26, 2013
With a buyer base of 2.4 million across 200+ countries and territories and over 6,000 clients from more than 20 industries, our team continues to perform best-in-class practices around supply chain transformation while navigating top multi-national companies through innovation and sustainability efforts. In today’s featured case study, we are highlighting an example of success achieved utilizing our web-based, proprietary surplus management platform,AssetZone®.
The Fortune 1000 and Global 500 companies utilizing this enterprise-wide tool to manage their idle and surplus assets have seen cost savings, revenue streams, and green initiatives enhanced, in addition to increased efficiency across their operations. In this specific case, a global automotive supplier that manufactures a range of items for the industry needed a better way to manage its large asset catalog. With most of these items — including driveline products to power technologies and service parts — in the range of €50,000 and €250,000 ($66,000 and $331,500*) in value, the company could not afford to lose additional revenue due to assets being sold at less than their market value, or sitting idle in plants. The client approached Liquidity Services for a solution to their asset management issue and ended up furthering their sustainability mission and streamlining their overall operations.
The automotive supplier began utilizing Liquidity Services’ AssetZone and was able to manage its surplus and idle assets with real-time information on their status and use. From CNC turning centers and grinders, to lathes, forklifts, and other plant support equipment; with each asset successfully redeployed within the company’s 100 locations, its operations and management teams were able to make smarter decisions about their assets.
The client successfully moved from the traditional model of discarding equipment as scrap, selling end-of-life assets through limited channels, or allowing them to sit idle in storage; to an asset management tool that any of their approved teams around the globe could access. If an idle or surplus asset was not tagged for redeployment to another department, it was “virtually” moved to the Liquidity Services’ leading online marketplace for commercial assets,GoIndustry DoveBid, to be viewed by more than 2.4 million buyers across the globe, maximizing recovery and creating new revenue streams. In addition to implementing a more efficient asset management process; over a one-year period, a total of €6 million ($7.9 million*) in capital expenses were saved from the gain in revenue through marketplace sales and the cost savings through internal redeployment of assets.
* Euro-to-dollar conversions as of July 29, 2013.