Proactive Management vs. Reactive Decisions

Traditionally, global corporations have ignored their idle and surplus manufacturing equipment until 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 choose to do nothing until they are force to, asset management consists of selling individual pieces of equipment for 1/10th of the value to the local dealer or auctioning off 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 embarrassing situations:

• The fact that various equipment was sold for a price that was 3 to 4x below what a best practice could 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 focused on the need for internal controls and risk avoidance, these companies are also discovering that the problem is actually an opportunity, potentially worth millions to their bottom lines.

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

EquipNet's Approach to Proactive Surplus Asset Management