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The Hidden Costs of Used Industrial Equipment

June 9 Phillip Slater

asset recoveryAt its core, the process of asset recovery is exactly what sounds like: A viable way for businesses to recover capital from either surplus or unused industrial assets, like spare parts and unused plant and equipment.

What is not often fully appreciated is that one of the hidden costs of retaining used industrial equipment is the space factor.

Unless you can afford to continually expand your physical presence on a regular basis (and why would you!) your warehouse and production floor both have a finite amount of space to work with.

To be most cost-effective you need to be sure that the equipment you have meaningfully serves your business.

Retaining space for assets that you no longer require makes no sense what-so-ever.
 

But we have the space, so what’s the big deal with asset recovery?

 
The reality is that when your organization begins the asset recovery process in earnest, it stands to benefit in a wide range of different ways. Some of them, like empowering your ability to recovery unused capital, are immediate. Others are much farther reaching, creating a positive ripple effect that can serve your business for years to come.

The are three issues that you need to consider:

  1. Warehouses and scrap yards require management – this costs money.
  2. Holding onto unused or junk equipment sets the wrong example – junk begets more junk.
  3. You are missing the opportunity for capital recovery – that is cash in the door!

 
NRI Industrial, one of our Spare Parts Alliance members has written an extensive article that explains all of this and provides guidance on solutions.

Reading this article is highly recommended if you are at all interested in the asset recovery and free-ing up the cash that is frankly just laying about in your warehouse or yard.

Click here to read the article.
 
 


You might also be interested in this complimentary guide book: The Complete Guide to Asset Recovery


 
 

Filed Under: Spare Parts Alliance Tagged With: asset recovery, excess inventory, NRI

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Inventory Optimization Software


Right Sized Inventory uses patented inventory-optimization predictive analytics technology to analyze your supply chain and establish best target inventory levels. Read more...

Asset Recovery


NRI Industrial specializes in the management, marketing and sales of surplus industrial assets. They provide solutions to recover value from overstock, surplus and obsolete inventory. Read more... NRI Industrial

Reliability and Maintenance Education


The Reliability & Maintenance Center at the University of Tennessee, Knoxville, provides comprehensive programs of education in reliability and maintenance practice. Read more... RMC

Spare Parts Management Consulting


Phillip Slater, Founder of SparePartsKnowHow.com, spare parts inventory management specialist, consultant, guide, and mentor. Read more... Phillip Slater  

Online Resources, Training, and Support


SparePartsKnowHow.com: The most comprehensive online resource dedicated to spare parts inventory management. Visit the  Welcome page to read more >>> spare parts alliance

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