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Proactive Management Vs. Reactive Mangement

Traditionally, global corporations have ignored their idle and surplus Manufacturing equipmet untill it's too late. Today's new laws and regulations have turned a bright spotlight into the dark corners of facility storage rooms.

For those companies that chose to do nothing untill they are forced to, asset management consists of selling individual pieces of equipment for 1/10th of the value to the local dealer or auctioning of entire facilities in an all-or nothing event or even scrapping the inventory completely. This apathetic and reactive approach exposes the company to the potential of any of the following embrassing situations:

  • The fact that various equipment was sold for a price that was 3 to 4x below what a best practice would have yielded.
  • A liability lawsuit for selling an asset without the proper disclosures or legal protections
  • Theft or fraud by having assets worth money slip out the back door or be scrapped
  • Regulatory noncompliance from selling contaminated equipment or selling to a prohibited party
  • Sarbanes-Oxley non-compliance for improper financial controls

For best in class corporations, however, "Asset Management" has become a major initiative. While focussed on the need for internal controls and risk avoidance, these companies are also discovering that the problem is actually opportunity, potentially worth milllions to their bottomlines.

Intelligent companies are now making proactive business dicisions about asset management. It's no longer just about fast liquidations; it's about maximising returns and minimizing risks.

Equipnet's Approach to Proactive Surplus Asset Management

  • Proactively seeking out and identifying assets throughout the enterprise.
  • Analysing and understanding what you have and what your options are
  • Implementing best pracice controls, including an ongoing corporate wide program to track surplus asset inventory and disposition activity
  • Creating a framework thatencourages internal redeployment and actively marketing assets for redeployment within the enterprise
  • Creating proactive inventory plans which ensure assets are always on a delibarate disposition track
  • Executing disposition through cascading channels based on time and return objectives.