EQUIPMENT PURCHASING CASE STUDY
EQUIPMENT BUYOUT FOR FOOD PROCESSING COMPANY
Our client is a global food processing company that owns more than ten major brands, each generating more than $1 billion in annual revenue. Due to supply contracts with distributors, production halts may result in financial penalties. To ensure steady production in each of their facilities, our client surplus stocks maintenance, repair and overhaul (MRO) equipment and spare parts for expedite equipment repair, retooling and upgrades.
Prior to approaching us, our client had accumulated more than $30 million dollars’ worth of various types of surplus and used MRO and spare parts.
- Removed 103,000 line items (SKUs) from storage
- Recouped more than $1.5 MILdollars on idle inventory and was eligible for more than $28.5 million dollars’ worth of tax deductions.
- Avoided costly equipment disposal fees and fulfilled their CSR pledge to operate more sustainably
Plan and Details
|Project Type||Equipment Purchasing|
Since our client’s surplus MRO and equipment was unused, we purchased their assets at a competitive rate of more than $1.5 MIL. This purchase included arranging the necessary logistics to coordinate transportation from our client’s 35 facilities.
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