Challenge

BAE Systems, a top aerospace and advanced defense company, was looking for a single service provider who could deliver a surplus asset management program across all of its 55 locations within the United Kingdom. The management team desired the development of a program to improve surplus asset management, expanding the number of assets being transferred internally to maximize use, while increasing the cash return to its respective locations when assets were sold. Previous experiences with third-party service providers and its surplus assets had been less than favorable due to lack of reporting, inaccurate data, and lack of adherence to deadlines, all conditions which had previously deterred adoption to an effective asset management strategy.

Solution

The company went through an extensive RFP process to select a trusted provider and Liquidity Services was selected at the end of the comprehensive 9-month search. A critical engagement point with the vendor was counsel on the value of assets and disposition strategy, including internal redeployment and external sales. Liquidity Services' solution included the assignment of a dedicated account manager charged with working at both a corporate and site level for the client. In addition, the account team was proactive in developing processes that enabled the full team, including the client, to easily track all opportunities and projects and ensure all projects were executed on time and on budget. The client was provided access to Liquidity Services' proprietary web-based asset management solution, AssetZone®, which provides an accessible system for decision-making around assets across multiple locations in a global company.

Results

The comprehensive process paired with regular reporting by the Liquidity Services' team provided peace of mind to the client, meeting its high expectations for performance. The surplus asset management program through AssetZone gave BAE Systems a simple transparent process which could easily be rolled out to all locations, providing greater visibility and control over its surplus assets. As a result, fewer assets were scrapped and a far greater number of assets were either internally transferred or sold externally, extending the life of assets and recovering a higher value through online auctions. A total of 45 disposition projects were executed over the term of the contract and gross asset sales exceeded £1,875,000 ($2,908,875*) for 1,239 total assets. These projects were so effective, that the client extended the contract for an additional two-year term to continue the pace of success.

As a result [of the process], fewer assets were scrapped and a far greater number of assets were either internally transferred or sold externally, extending the life of assets and recovering a higher value through online auctions.