Challenge
Our client is a leading food and beverage conglomerate with operations in over 80 countries. To increase efficiency and profits, the company recently began strategically consolidating its facilities and machinery worldwide. The company then needed a partner that could implement a global process to maximize value for the surplus assets resulting from these activities.
Solution
The client selected Liquidity Services to develop and launch a standardized surplus asset management program across all its locations worldwide. A supply chain executive at the company had experienced excellent results with Liquidity Services at a similar organization.
Liquidity Services worked closely with finance and operations team members to determine intelligent asset management standards. Applying its reverse supply chain expertise, Liquidity Services developed a scalable program aligned with the client’s goals, then implemented it across all locations.
Liquidity Services provided every facility with a “playbook” for managing surplus and worked on location to ensure employees understood the new process. Employees enter all surplus assets into AssetZone®, Liquidity Services’ proprietary asset management software. AssetZone® provides the client with full, real-time visibility into its surplus across all global locations, facilitating intelligent decisions about whether to redeploy, sell, or dispose of assets.
By redeploying surplus internally as appropriate, the client maximizes value for these assets and realizes significant cost savings by reducing the need to buy new. After implementing AssetZone, team members across the globe found that most assets they would typically buy new were available at other company locations. Liquidity Services also efficiently sells all assets marked for sale, maximizing return through proven marketing and sales strategies. Client intelligence is enhanced throughout the process with Liquidity Services’ custom asset and market reports.
Liquidity Services’ global reach is key to this partnership’s success. With approximately 50 global locations in over a dozen countries and across several continents, Liquidity Services provides on-site or local support at virtually all client facilities. Liquidity Services also sells client surplus to a global base of nearly three million registered buyers in over 170 countries, maximizing return.
Results
In year one of this ongoing partnership, Liquidity Services generated $2 million in total program value. The program also achieved approximately 90% of the client’s ambitious key performance indicators and reduced its taxable income by swiftly moving assets “off the books”.
Liquidity Services developed and implemented a high-impact surplus asset management program across a complex, global business. Partnering with Liquidity Services to continually enhance this program, the client will maximize value in its reverse supply chain while minimizing time spent on asset management.