Since then auctions have undergone massive changes to become what we think of today when we here the term auction. Today, auctions are used to sell everything from vehicles to industrial machinery and equipment. As the popularity of auctions continue to grow this form of selling is becoming big business world-wide. It was reported in 2017 that the value of global auction marketed increased 25% from the previous year to a value of $11 Billion.

Of course, your business is about more than just the bottom line, but that doesn't mean it doesn't play a central role in your strategies. When you are investing in industrial equipment, you know those investments will only last so long as value for your company. You try to make the best purchase decisions, but things age and processes change. Sooner or later, you will want to upgrade or cut certain machines from the floor. What do you do when you find the equipment you no longer need?

Successfully managing MRO inventory goes beyond tracking what equipment and tools are currently in daily operations. It also involves performing asset recovery by identifying the location and type of surplus MRO that's in the company, and either redeploying the equipment and parts in other processes or selling the items to build more working capital.

LUCRATIVE ASSET RECOVERY

Too many businesses are operating under popular myths that industrial equipment doesn' have resale value or trying to liquidate those assets won't be worth the time. Every year, any equipment not needed just becomes a liability. And, just because that equipment doesn't hold use for your company doesn't mean another company can't use it and won't invest in it.

Selling assets without being under force means you can select the best equipment for your company to sell. You will be able to select the time of year and selling format to help get the best price for your items. Choosing to resell your assets without being pressured to liquidate means you are being proactive and not reactive.

SELECTING ITEMS FOR RESALE

You will have to start the process by itemizing the excess of equipment you have on hand and reviewing those assets. You must explore anywhere surplus items could be stored, including closets, offices, warehouses and even on the manufacturing floor. Ask around to make sure you are getting everything and not forgetting anything. Organizing your equipment on paper is going to help you see what you have and what prioritizes your top buying method.

CHOOSING THE BEST WAY TO SELL

There are several ways to sell your assets, including private treaty, consignment and, auctions. You will want to consider the key factors that impact your selection of selling methods:

There are several ways to sell your assets, including private treaty, consignment and, auctions. You will want to consider the key factors that impact your selection of selling methods:

STEP #4 INVENTORY CATALOG DEVELOPMENT

The physical categorizing, asset selling or placing equipment and tools into production is just one part of asset recovery. The other essential process involves cataloging all asset equipment into a database to track when items become surplus MRO so that the right actions can be taken to recover working capital.

This database needs to encompass all information that was recovered during the document discovery phase as well as during the operation analysis performed with other department heads. You don't have to place all the operational manual information into the database. Yet you should identify the equipment, operation description, manufacturer, purchase year, production operation life-cycle, maintenance and repairs that were performed, current condition of the equipment, and future usability.

Consider using a coding processes that makes it easier to identify between current equipment and surplus MRO. The coding process will also make it easier to add new equipment and comments into the database to keep records updated. You should investigate database software that allows for real-time updates and inter-connectivity between departments to ensure that records accurately reflect company assets.

STEP #5 ASSIGN STEP MANAGEMENT ROLES

While maintaining correct inventory records and reporting equipment repair issues can be a company-wide initiative involving all your employees, you may only want specific employees accessing the database to prevent inventory mishandling and theft. The management roles may be placed on each manager or supervisor head of the department based on the size of your operations. Yet keep in mind that your managers may already have enough work on their plates and cannot deal with taking time out of their schedules to perform asset recovery work. You will have to determine this based on the specific employee's job duties.

You may consider developing an asset recovery team whose main work is to identify company assets and MRO surplus. This arrangement is ideal for large corporations and global facility operations. The team can focus entirely on asset recovery and redevelopment while making sure all decisions align to the company's production processes and goals.

No matter who you chose to update records or whether you decide to do the work yourself, always ensure that there is a realistic and honest assessment regarding the equipment's condition and redeployment viability in operations. Is it worth it to keep equipment that may one day be put into use? Is the condition of the equipment suitable for resale and the changing technological innovations of your chosen industry?

Asset Recovery Involves Specialized Market Knowledge

Identifying surplus can allow you to take the next phase of asset recovery: maximizing the return value on surplus MRO during selling endeavors. There are many ways to perform MRO sales, such as:

• Consignment sales
• Private treaty sales
• Online Auctions
• Sealed bids

Deciding on the right sales solutions will be based on several factors regarding the types of MRO equipment you are offering up, the condition of the equipment, and buyer interest. Often, a company simply won't have this equipment sales market knowledge among their existing employees.

In these circumstances, hiring an industry leader in asset recovery can help you start the process by providing their expertise and experience through the MRO asset identification and equipment sales value determination. In addition, an asset recovery company can also provide insight regarding surplus transportation logistics as well as decommissioning.

Here at NRI Industrial, our professional industrial asset recovery team has over 10+ years of industry experience. We are a global company that helps corporations reclaim working capital from surplus MRO, as we also help develop strategies to manage and store equipment. We have helped over 60+ clients with their industrial asset recovery efforts by providing cost-effective solutions tailored to their specific operations. Check out our case studies to see our recent success stories.