Capital Resources from Surplus Assets

Capital Resources from Surplus Assets
When managed properly, surplus assets represent a capital resource opportunity that will contribute directly to your company’s bottom line. Many companies do not track where their surplus equipment and product end up. You will find these surplus assets in storage facilities without an itemized list of what is in there, their disposition and condition. These assets represent a competitive advantage when properly evaluated and managed.

Redeployment
Without an accurate asset tracking program, many surplus assets could be effectively utilized by a different sector of the same company. Often, companies will purchase new equipment for projects that could have been completed with items on-hand or in storage.
A product that we have used to track all of our assets is Entity Solutions’ Evolve 360 (E360). This business suite has an inventory module that allows us to enter our complete list of assets from capital equipment to office furniture. Our asset manager can define the specifications for each item, as well as its condition and disposition. This has allowed us to consolidate each location’s inventory into an online-accessible program, where we can track and redeploy our unused assets.

On-Site Consignment
Consigning inventory to a company who specializes in remarketing surplus assets and pre-owned equipment will help realize an increase in capital flowing to your bottom line. By maintaining the equipment on-site, it will increase the value to end-users. Many end-users prefer to view live demonstrations of the capital equipment they purchase, to help protect their investment. On-site consignment allows end users to see the equipment powered and in an active facility, rather than in a warehouse.

In addition, by retaining the item on-site, the costs associated with the consignee shipping, storing and maintaining the equipment prior to sale. These costs will ultimately be deducted, in equal portions, from the sale price.

By maintaining the equipment on-site, the consignor would have to be available to maintain the equipment and allow prospective buyers to view it upon appointment with the consignee.

If the ultimate goal is to maximize the return on the equipment being sold, and space is not a concern, on-site consignment is the best solution.

Off-Site Consignment
By consigning inventory to a remarketer’s facility, a company can free up space within their own facility, as well as reduce the costs associated with maintaining equipment that they are no longer using. If a company is going to utilize off-site consignment services, it is trusting the consignee to maintain, effectively market and accurately represent their equipment for them.

Off-site consignment is a great solution to clearing space with little work on the part of the consignor. If clearing space while maximizing the sale price is the goal, while you await the surplus assets to sell, this is the fastest solution. However, the ultimate sale price will reflect the cost of transportation, storage and maintenance of the items and a portion will be deducted from the consignor’s portion.

Liquidation
Many used equipment dealers maintain their own facilities where they are able to keep consigned inventory as well as store their own inventory for sale. This is a fast solution for facilities that are closing or for large quantities of surplus that must be sold.

Liquidations do not provide the same return that consignment options do. The equipment dealers will fully evaluate the assets that are to be purchased and will provide a buy-out price. This price takes into account that all costs relevant to the sale (ie. cost of equipment, transportation costs, storage costs, cost of sale, etc.) and will likely be less than if they were consigned the inventory for sale.

OnlineSMT.com
OnlineSMT.com provides solutions for redeployment, consignment and liquidation. With over 20 years in the equipment business and over a decade experience in the real estate industry, we have developed our FLEX Asset Integration & Management system to provide asset solutions to a variety of markets and industries.

- Fast – Unparalled real-time appraisals reflecting the real-time market allowing you to choose the solution that best fits your needs.
- Lucrative – Combined with Evolve 360 technology, asset inventory and is now faster and easier than ever. From on-site training to full turn-key projects, we provide the most efficient solutions in the industry with the highest returns.
- Equipment – Our success is based on our technical experience. We know your equipment. Since 1990, we have purchased, serviced, sold and managed over 700 million dollars in assets.
- Xchange – Track, redeploy, or remarket assets world-wide 24/7. Real-time asset availability via the Evolve 360 global marketplace. We guarantee success with maximum exposure and detailed specifications.

If you are interested in utilizing OnlineSMT’s services, please visit onlinesmt.com or e-mail sales@onlinesmt.com.

For more information on Entity Solutions Evolve 360, please visit entity360.com. They provide a complete online business suite that includes modules for Client Relation Management (CRM), Sales Force Administration (SFA), Inventory and Asset Management and others.