Multinational Energy Company Generates Nearly $18 Million Through Ongoing Scrap and Surplus Program

Challenge

A leading downstream energy company was challenged to manage an efficient enterprise-wide scrap and surplus program. Each of its refineries had separate processes for handling scrap and surplus, a lack of consistency that limited program efficiencies and recovery. To remedy this, the company aimed to implement a scrap process across its enterprise that would maximize surplus and scrap recovery, streamline its program, and ensure all scrap and surplus opportunities were capitalized on.

Solution

Since May 2014, Liquidity Services has partnered with this company to maximize value for its scrap and surplus assets. Through a proven process supported by decades of scrap and industry expertise, we continually manage and sell scrap and surplus assets across the client’s organization:

1. Conduct on-site discovery to evaluate all surplus assets and determine whether they should be sold, scrapped, or disposed of. This thorough process ensures that every possible scrap and sale opportunity is identified.
2. Work directly with scrap dealer to sell scrap for going market rate
3. Sell all salable assets through our leading Network International online marketplace for energy assets
4. Manage the process of removing scrap and surplus in compliance with all environmental, health, and safety regulations
5. Conduct monthly reconciliation to ensure scrap weights between client and dealer align

Results

Over three years and counting of partnership, Liquidity Services has generated nearly $13 million for the client’s scrap. We’ve also recovered over $5 million in the secondary market for the client’s surplus assets. Our proven scrap and surplus process provides a wide range of benefits to our client:

• Maximizes recovery – By tapping our consultative service and extensive scrap experience to make optimal scrap and sale decisions, the client gets every last dollar it deserves.
• Saves money – We save the client money by redeploying assets to other sites while eliminating storage and removal costs by expediently removing assets.
• Simplifies selling – Letting us manage all aspects of the process enables the client to recover value for scrap and surplus while minimizing resources needed from its own business.