Your Veracity Connect Newsletter - Volume 3: June 2014
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The 7 R’s of Investment Recovery

Last month the first R, Reuse, was discussed. Typically two to five percent of idle assets found in many plants could be reused internally. This not only saves repurchase costs but contributes positively to a company’s sustainability program.

This month we will consider the second R which is Recondition.  Rebuilding assets such as valves, pumps, transformers and motors is more economical than purchasing new. Today’s society is programmed to replace rather than recondition. When something no longer functions, the first thought is to replace it. In discussions with front line staff, new units are not always better. There is some truth in the old saying “they don’t make things like they used too!”.

The key to a successful reconditioning program is communication. All too often non-functioning equipment gets set aside with little or no information on the problem or issue. The unit sits in storage or laydown yard and by the time someone thinks about it, nobody knows what was wrong. At this point the decision to replace rather than recondition is made and the equipment gets flagged for disposal. This missed repair opportunity could be avoided simply by having an equipment data sheet that is logged and attached to the equipment. This way, the issue is known and the decision maker is in a better position to choose the recondition option!
Veracity presented Veracity Connect to the Utilities Standards Forum Members in Guelph, June 11th, 2014
Utilities Standards Forum (USF) is a volunteer based corporation owned by 50 Ontario electricity distributors that serve over 1.9 million customers.  Its primary purpose is to develop system design standards approved to Regulation 22/04. USF also offers member representatives a mechanism for collaboration and networking on other common technical challenges and regulatory requirements.
Your Feedback!
Veracity was recently contracted by Devon Energy on a gas plant decommission project in Southern Alberta. Veracity provided feet on the ground support to help Devon identify and market high value assets and equipment.  
"Veracity provided a full range of Investment Recovery Services, from identifying surplus equipment to marketing and sales of that equipment.
Veracity was instrumental in allowing us to not only identify, but also to maximize the value we received for our surplus plant equipment.
Brad Sackett
Investment Recovery
Devon Energy
Investment Recovery & Corporate Sustainability
Sustainability is becoming a key factor in every corporate department, including procurement. However, there is a huge gap in most large organizations that fail to understand the importance of surplus equipment, supplies and inventories. An essential aspect in sustainability is to change the mind-set of buyers regarding used assets or surplus.

This role called Investment Recovery or Surplus Management can be created within the company or contracted out to a company like Veracity who specializes in surplus management.

Certified Managers of Investment Recovery (CMIR) work to maximize the value of surplus within an organization. Assets or surplus that is no longer required can then be traded in, sold, donated or recycled. The ultimate goal is to keep assets and inventories out of landfills and into hands of those who will re-purpose the item(s) and use it!

Often people think about the cost when they think about environmental sustainability. Adding in the Investment Recovery framework can help shift that idea and show them it is possible to have profitable sustainability! Investment Recovery is often referred to as the missing link in supply chain and not only will it create immediate payback to the company but it also reduces a company’s environmental liability exposure risk and be successfully sustainable.
The Value of Critical Spares
The loss of a transformer is a serious concern for utility generation providers as the costs and loss of revenue can be staggering. Production lead times for a new transformer can often exceed 18 months.

To mitigate this risk, a large Western Canadian Utility contracted Veracity to assist in the search for a spare generation step-up transformer, to be located on site. By reaching out to a wide network of providers, Veracity was able to locate a unit that met all of the customer’s specifications and was available immediately, at half the cost of procuring a new unit.

Contact us to learn more about Critical Spares Management!
Graham Nelson, founding partner of Veracity, was chosen to be part of the EDA Commercial Steering Committee.
The EDA is the voice of Ontario’s local electricity distributors that safely and reliably deliver electricity to over four million homes, businesses and public institutions.
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