With 2016 already underway, many of us are thinking about our New Year’s resolutions. Over the next few weeks, people all over the world will begin pursuing the personal and professional goals they set for this year. While these individual goals are important, organizations should have objectives of their own as well.
One of the most common reasons why New Year’s resolutions fail is because people find they lack the time or resources to dedicate toward achieving their desired goal. This is the same reason why some organizations end up falling short of their objectives, especially when it comes to more effectively managing surplus assets and inventory. The average organization has 20 percent of its assets surplus to its needs at any given time. You can turn these assets into working capital or cost savings, or you can let them sit around and take up space.
Here is how you can resolve to do something with your surplus this year.
Stick to your New Year’s resolution by working with an expert surplus asset management partner.
What Prevents Businesses from Reaching Their Surplus Goals?
One of the biggest reasons why businesses struggle to manage surplus assets is that it’s so difficult to track them, especially when they have multiple locations spread out across the world. Often, surplus assets are scattered across facilities worldwide and it’s extremely challenging to identify and manage them all unless you have a consistent proven process to do so.
Other organizations may know exactly what surplus assets they have, but simply don’t have the internal resources to manage the surplus as effectively as possible. Most large companies have made significant investments in boosting their supply chain capabilities, but even the most well-capitalized enterprises may find that surplus asset management is simply outside their core competencies.
The fact is that these assets are costing you money to hold onto, whether it’s in the form of rental fees for storage space or simply because they could be sold instead to free up capital for investment in other areas of the business. Selling or redeploying your surplus will help you reduce unnecessary expenses and improve operational efficiency by maximizing value for your surplus.
3 Steps to Achieving Your Surplus Resolution
Here are three steps you should take if you want to manage your surplus and save money.
- Identify your surplus. Is it in different regions/countries? Is it in warehouses or satellite offices? Identify all of your surplus and enter the asset data into a cloud-based asset management software so you can maximize value throughout the asset lifecycle of redeployment and sale.
- Determine which assets you will sell and which you will redeploy. Are your assets idle in a warehouse, or are they taking up factory floor space? Can you expect to get your desired recovery value by selling, or would you be better served redeploying your surplus within your organization? Is there a need for the surplus asset elsewhere in the organization? Answering these questions will help you determine the best strategy for handling your surplus assets.
- Sell or redeploy. Sell your surplus on an online marketplace and work with a trusted surplus asset management partner to ensure that you get the best possible recovery. A partner can provide multichannel marketing and sales strategies and a vast buyer base of businesses and individuals interested in your surplus. This maximizes your chances of finding the right buyers and achieving optimal recovery for your assets. Additionally, asset management software can help facilitate a seamless redeployment by identifying opportunities, handling shipping and title transfers, and other key parts of the process.
To learn more about how a trusted partner can help you most effectively manage your surplus this year and beyond, contact Liquidity Services.