The Importance of Making Asset Recovery Part of the Supply Chain
Why Making Asset Recovery Part of the Supply Chain Process is More Important Now than Ever Before.
To say that the decidedly unique nature of the ongoing COVID-19 pandemic has created a new set of challenges for manufacturing companies is, at this point, probably a bit of an understatement.
Chief among them is the urgent need to raise as much capital as possible, mainly because many organizations have either shut down for some time or have already experienced a negative economic impact at some level. Both significantly affect economic forecasts, and few, if any, can accurately predict what the next several months may hold.
Thankfully, lock downs across the world are being lifted across the country, and as a result, more and more businesses are thinking strategically about their next moves. If the past few months have been any indication, liquidity is more essential than ever before.
This, in essence, is why making asset recovery part of the supply chain process will be of paramount importance moving forward. Far too often, supply chain personnel do not realize that asset recovery is an integral part of their daily operations, and because of that, they treat it like an afterthought.
In reality, this is the perfect time for companies to emphasize making asset recovery operations. These companies should include asset recovery as part of their supply chain process by selling surplus inventory and spare parts, generating as much income as possible during a period when it is desperately needed.
It All Comes Back to that Value
Keep in mind that asset recovery by its nature is all about recovering the value of unused or end-of-life assets through effective reuse or divestment. It's a way to inject some much-needed value into your supply chain during a time when it is desperately needed.
Managing and implementing processes up and down supply chains is a big part of maintaining the health of a strong asset recovery strategy. Not only is this true during these difficult times as COVID-19 continues to drag on, but it's something that will continue to pay dividends long after the global pandemic leaves us behind.
The Brave New World
Something that a lot of business owners, in particular, have been saying recently involves calling attention to this "new normal" that we're all a part of. As things start to open back up again, the organizations that we're all about to return to will bear little resemblance in a lot of ways to the ones we left behind in March and April. Workflows will need to be rethought from the ground up, and entire business models will shift dramatically.
This is also a big part of why it's so important to commit an individual or team to enter into the process of identifying surplus MRO material and capital equipment that is no longer needed by your organization. In addition to assisting with a much-needed capital injection, it's also a perfect opportunity to rid yourself of those assets that have outlived their usefulness and may be costing you to hold on to. This allows you to put yourself in an excellent position to pivot towards whatever direction these circumstances now demand of your business, thus transforming the "new normal" from a liability into a potentially significant opportunity just waiting to be taken advantage of by those savvy leaders who have been paying attention.
A Leaner, Meaner Supply Chain
But maybe the most important reason why making asset recovery part of the supply chain process is more important than ever is that it's a decision that will yield positive benefits long after things settle down again. By accepting this challenge and making asset recovery a priority for your company, you can achieve supply chain stardom in a way that few others will match.
By enhancing transparency in the supply chain in this fashion, you're enabling your business to analyze product requirements and take proactive steps to prevent shortages. It also brings more efficiency to your operations by allowing you to analyze your assets more closely, which generates the most important advantage of all: giving you a genuine chance to optimize your operations in all areas, including planning, resourcing, and even implementation.
Any step that allows you to do any of those things - let alone all of them at the same time - is one worth taking, which is why asset recovery must become part of the very DNA of your supply chain process moving forward.
The NRI Industrial Approach
For nearly two decades, the team at NRI Industrial Sales has been helping companies all over the world liquidate and manage their surplus MRO and obsolete parts, along with other capital equipment, through direct purchase and consignment. Our solutions are designed to be turnkey and minimize the impact on your day to day operations while at the same time maximizing the value of your surplus MRO and spare parts.
Whether you are looking for a quick solution to sell your surplus inventory such as our equipment purchasing solution or, you wish to maximize your recover value but remove your surplus inventory from your warehouse with our consignment solutions, we have the right approach to help your organization through our consignment program or our inventory purchasing solution.
Download Our Latest Case Study
Find out how the team at NRI Industrial helped a large North American energy provider with more than 70 generating assets, recuperated more than $1.6 MIL from consignment sales and regained more than 211,000 square feet of storage in their storage facilities.