Challenge
A global automotive supplier that manufactures a range of items — from driveline products to power technologies and service parts — needed a better way to internally manage its large asset catalog. With an average value of assets between €50,000 and €250,000 ($66,000 and $331,500*), the company could not afford to lose additional working capital or value on assets that were either being sold at less than their market value, or sitting idle in warehouses.
Solution
The client approached Liquidity Services for a solution. The client began utilizing Liquidity Services’ AssetZone, a propriety hosted enterprise-wide asset management tool. Through AssetZone, the company 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.
Results
In moving 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, the client successfully utilized AssetZone to enhance its sustainability mission, while increasing working capital and cost savings. Through the web-based system, one location could flag an asset as available and another location could see its detailed description and request the asset — providing new life for the asset within the company and preventing the department from the large cost expenditure of having to purchase a new asset. If the asset was not tagged for redeployment, it was “virtually” moved to the GoIndustry DoveBid online marketplace to be viewed by nearly 3 million buyers across the globe, resulting in maximum recovery value on the sale of the asset. In addition to implementing a more efficient asset management process, over a one-year period, more than €6 million ($7.9 million*) in capital expenses were saved from the gain in working capital through marketplace sales and the cost savings through internal redeployment of assets.