Challenge
A multinational engineering and electronics company headquartered in Europe serves as the world’s largest supplier of automotive components. In 2001, this leading company was in the search process for a vendor to remarket its surplus and idle machines and equipment. With 350 subsidiaries across 60 countries, the company had an ongoing need to sell a range of equipment in automotive components assembly, electronics, semiconductors, plant support, and industrial and renewable energy equipment. The company required a partner that could manage and market a large and diverse inventory of items and increase value on its recovery.
Solution
After a thorough vetting process, the organization tested a pilot sales program in 2001 and selected Liquidity Services, awarding it a contract in 2003, which is still currently in place. As the world’s largest supplier of automotive components, the company produces brakes, controls, starter motors, and other components, along with industrial products, such as packaging technology and household appliances. Liquidity Services provides a comprehensive set of services to remarket these assets, including detailed online auctions and expert valuations support to accurately appraise the market value of items before they were sold in Liquidity Services’ online marketplace.
Results
Over the term of contract, more than 100 sales events with detailed descriptions and images of all assets have been accurately executed through Liquidity Services. More than 2,000 assets have been sold worldwide to date with improved sales recovery supported by Liquidity Services’ global base of buyers. This effort allowed the client to reduce the number of scrapped machines and equipment, improving its overall sustainability efforts. Total asset sales over the period have already exceeded €8 million ($10.6 million*), returning cash to the client that could continue to be invested in innovation and the development of future solutions for the many industries it serves.