BAE Systems needed a partner to develop, implement, and optimize a surplus asset management program across dozens of North American and European locations. Maximizing cost savings, asset usage, and recovery through an intelligent, standardized process were the company’s primary goals.
To accomplish these objectives, BAE Systems partnered with Liquidity Services in 2012. Today we work with five of BAE Systems’ eight divisions to manage, value, redeploy, and sell a wide range of surplus. Recently, BAE Systems needed assistance maximizing value for hundreds of surplus assets at its Owego, NY, facility.
Liquidity Services visited the Owego site to identify all surplus assets, which covered a wide range of asset categories from Humvees to electrical and power equipment. After cataloging the assets, we tapped our vast market database and industry expertise to appraise them. Knowing the value of BAE Systems’ surplus helped us make sale vs. disposal decisions and set accurate recovery targets.
Using the asset information gathered, we created comprehensive, accurate auction listings on one of our online marketplaces for capital assets. Assets were either lotted in groups or sold individually based on factors that would optimize recovery.
Certain aerospace assets are restricted from being sold on the secondary market. Before BAE Systems’ assets were lotted for sale, our expert compliance team conducted a complete review and removed sensitive items. Because of the sensitivity of its business, BAE Systems also needed to make sure that its surplus was only sold to buyers in certain countries. Our buyer vetting services screen all buyers against more than 200 global restricted party lists and additional client-provided lists, ensuring BAE Systems’ surplus is never sold into inappropriate countries or to illicit buyers.
Leveraging proven multichannel marketing strategies and our vast global base of surplus buyers, Liquidity Services maximized bids for BAE Systems’ auctions. We also sold many assets through private treaty sale, the ideal sales method for specialized assets. Using both methods ensured maximum return.
Liquidity Services achieved a 100% sell-through rate for BAE Systems’ nearly 200 lots, generating $1.7 million in recovery value. Most notably, we achieved recovery more than 50% above client expectation for 13 Humvees.
Through an intelligent surplus management program, we helped BAE Systems turn the challenge of surplus into millions in recovery to fuel business. Our ongoing, comprehensive partnership allows the company to maximize value for its surplus while freeing up resources to focus on core competencies. For our superior partnership, BAE Systems recently nominated Liquidity Services for its Chairman’s Award, which recognizes partners for outstanding effort and achievement.
“Liquidity Services executed the auction and collection process in a professional manner, completing it as planned and in the timeline requested with no issues. Liquidity Services’ team is top-notch and it was a great pleasure to work with them to successfully conclude this project.”- Ian Colvin, Project Manager at BAE Systems