Scalability is increasing in importance as technologies and globalization of economies improves. In the enterprise environment, having a scalable operation affects business models and long-term goals for companies. The Small Business Chronicle wrote that an organization’s ability to expand both geographically and financially is reflected in its scalability, as the relationship between fixed costs and earnings must remain equal. As one area of a business grows, the rest must also expand, but in proportion.
Scalability is also essential to the management of surplus capital assets. Every time a new piece of equipment is acquired, the cost to purchase that machinery must balance with potential business earnings. Something an organization must also consider is that additional capital assets take up space and require maintenance and possibly insurance. As more machinery is purchased; budgets need to expand, floor space must become available, and more employees must be hired.
Scalability in manufacturing and transportation also means proper management, acquisition, and disposition of capital assets. The scalability of a chosen solution will impact the speed at which a business grows both internally and externally. Without great technology and top-notch procedures, a business will not be able to meet those goals. Therefore, organizations must find a trusted asset management partner with proven success when working with global companies. These partnerships and solutions should be based around the scalability of these three aspects:
Technology and Software-Driven Solutions
In the modern era, one cannot refer to scalability without thinking about the cloud. Web-based software is the definition of applications that can successfully scale with an enterprise. Because these programs are not hosted in one specific location, an organization can ensure that all employees and asset managers are working together to achieve global visibility of their surplus capital assets.
Web-based asset management software, such as AssetZone®, allows businesses to identify all surplus assets within the organization and determine which of those are idle or underperforming. Then, executives and managers across various branches can make informed and accurate decisions for the redeployment and/or disposition of surplus equipment.
Web-based software allows all information to be stored off-site, but accessible from any location.
AssetZone, in particular, has features that make the software scalable to the size of the business and its needs. For example, smaller organizations can quickly and easily find capital assets in large lists and mark them for redeployment or resale, but as the company expands and encompasses new locations, the tools can scale with them, being just as useful for tracking one piece of equipment as it would be for more than 1,000 manufacturing assets. When using tools like AssetZone, users across the business will always have a singular software to track all changes. In a recent article in The Property Professional, our experts from Liquidity Services wrote that organizations connecting employees together in one asset management platform reduces capital expenditures and helps organizations gain a competitive advantage through lowered spending and problem avoidance.
Standardized business processes for surplus asset management can also contribute to operational improvements and internal spending reductions as well as higher proceeds when selling idle or underperforming equipment. By exposing assets to a larger base of buyers that reputable, established providers that offer scalable solutions would provide, recovery for assets increases. This stresses the importance of choosing an asset management partner that offers comprehensive, global solutions.
Enterprises are often faced with many different laws, regulations, and guidelines based on local markets, cultures and processes. It is critical that organizations adhere to those local standards in order to maximize recovery and avoid problems when disposing or selling capital assets. A single, global investment recovery provider is essential to navigating those hurdles and regional expectations. If an asset management partner can work on every scale from large and global to small and local, an organization has the best chance at extracting maximum value from capital assets while keeping pace with industry standards.
The scalability of asset management procedures is also important as capital assets can travel from location to location. A trusted asset management partner can streamline this process and oversee a coordinated effort, which will ensure that every employee is on the same page. As our experts noted in the article, asset management partners will manage expectations, communicate goals, and execute processes with accuracy.
An asset management partner puts together the pieces of the puzzle to craft a perfect set of processes.
The scalability of an asset management solution also comes down to what services an asset management specialist can provide. This means that an organization will be able to effectively create and manage an asset management project from end to end, keeping any potential risks in mind.
In the article, our experts also reported that an asset management service provider must be willing to tailor and deliver solutions based on the unique needs of clients, which stresses the importance of scale throughout all asset management procedures. This provides safeguards along the way with every step of the process, regardless of location or asset type.
Additionally, an asset management partner needs experience working in a variety of industries with a proven track record. Access to buyer markets and asset data tied to actual transactions will set the true providers apart from the others, as they possess the experience necessary to deliver the best solution for the clients’ goals.
Why Liquidity Services?
Simply put, Liquidity Services meets all scalability needs. With offices and professionals spread across different geographical locations, expertise in a variety of industries, strategically located warehouse and fulfillment space, successful case studies with a top-tier clientele, Liquidity Services is the obvious choice. Its industry expertise is based upon $6 billion in total sales and over 8,000 clients worldwide in virtually every industry. Combined with its continued investments in innovation, Liquidity Services is more than just prepared for the future, it is setting the pace for the industry.