Veracity Asset Management Group Mutual Aid & Critical Spares Management
7 Ways to Dispose of Your Surplus Equipment Posted on June 11, 2014
Is sending obsolete or surplus items to landfills the only solution companies use to dispose of them? We often forget that there is a full range of disposition means. Similar to what we do with our garage sales or eBay auctions, there is plenty of choice to manage your surplus assets.
Let’s detail each of the seven options, often called the 7 R’s, from the most rewarding solution on: 1) Reuse
Also called “redeploying”, this is the most rewarding option for a company. Relocating equipment to another branch avoids buying a new unit and saves on procurement costs. It is the best stewardship from an environmental and social point of view. 2) Recondition Also referred as “refurbishing”, it is the method of putting used equipment and parts back in service. Of course, it is less expensive than buying new, and allows the company to have products in like-new state. 3) Return
Equipment and parts can sometimes be returned to the Original Equipment Manufacturer (OEM) or the vendor for cash or credit value. An increasing number of OEMs offers “buyback” solutions, as they do not want their products to end up in landfills either. 4) Resell
Idle assets can be sold again on the open market to resellers. Auction platforms are the most common tools used to sell used machinery and spares, but trades and bartering are other possibilities. Donating is also considered as a reselling option, as it benefits your corporate citizenship and involvement in the community. 5) Reclaim Chemicals, hazardous substances and metals can be recovered in a responsible and environmental way, and used again. 6) Recycle
Non-ferrous and ferrous metals, plastic, paper, and glass can easily be scrapped, recycled and sent back to the raw material streams. We tend to forget the value of raw materials… think about copper thieves! Even waste is definitely not wasted, as it can be burnt for energy (“biomass”). 7) Remove Surplus assets are sent to the landfills at the expense of the company. It tends to be a decision made by default by a number of companies: it is easier to throw something away to the dump or laydown yard, than looking for a better-adapted solution… But it is the most negative solution from an environmental and corporate reputation perspective. Fortunately, this is the last resort choice. It is rare when nothing can be recycled and properly disposed. Managing surplus assets is indeed a critical aspect of the supply chain. Choosing the proper disposition means for each asset requires times, skills and networks. This is why investment recovery professionals like Veracity partner with companies to implement an efficient disposition management program. A well-run program can easily return at least $20 for $1 spent and helps the company get closer to sustainability.
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This entry was posted in Uncategorized and tagged Asset Management, Disposition, Investment Recovery, Supply Chain, Veracity by veracityamg. Bookmark the permalink [https://veracityamg.wordpress.com/2014/06/11/7-ways-to-dispose-of-your-surplus-equipment/] . 2 THOUGHTS ON “7 WAYS TO DISPOSE OF YOUR SURPLUS EQUIPMENT”
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