The third R, "Return to supplier", was discussed in July. Before getting rid of surplus items, review the contract to determine if there are return options with your supplier.
This month we will consider the fourth R which is Resell. This process involves the transfer of ownership and title of the assets. There are three main target markets to consider for resale.
The first one is the sale using a broker or third-party. Brokers typically have an extensive buyer data base in which to market the surplus. The third party will help you determine the best selling approach. They will gather the asset information and go out to the market with bid packages on your behalf. This not only saves you resource time but can often get your surplus in front of a larger audience.
Another solution is the resale market which includes dealers, rebuilders and reconditioners. Dealers and rebuilders often specialize in specific assets. They will purchase the surplus from you and then refurbish the equipment with the intent to resell it.
The third alternative is reaching out to end users. This market segment offers the greatest return on investment, but also is the most difficult to reach. Targeting smaller companies in the same industry can often lead to successful sales
An investment recovery program can help you manage reselling your assets and choose the solution that will maximize the financial return. It is important to remember that although sales can generate significant income, you must be aware of restrictions and environmental or safety issues before you begin any sales process.
A glimpse of assets we manage for our clients:
Pad mount transformers
Pole mount transformers
Fleet vehicles, such as:
2002 “Altec” Freightliner FL70 Bucket Aerial Truck, 364,736 KM (picture)
Are you interested in these surplus items or are you looking to source strategic assets? Contact us at 866-694-1252 or email@example.com for more information.
A Proactive Approach to Critical Spares Management
Access to spare transformers is critical to managing the risks associated with a transformer failure. With aging infrastructure, threats of physical vandalism and extreme weather events utilities must assess their supply of critical spares. Due to long lead times and cost of these units, it only makes sense to adopt an industry wide spares program.
The marketplace for used, reconditioned, remanufactured and new surplus transformers exists! Veracity Connectconsolidates the spare inventories of utilities, brokers, resellers, industry and OEM’s. Distribution, transmission and generation companies can access available equipment and understand what is available before they need it. This information will enhance risk mitigation strategies, formalize sharing/pooling strategies as well as assist in capital budgeting. How it Works:
Veracity takes your company’s fleet of critical equipment and goes out to the marketplace to source available spares that match the fleet specifications.
Veracity provides regular updated reports both on matched spares and those critical assets that spares are not available. This allows you to understand where your risks are and is a starting point to develop strategies to reduce the risks! Veracity will work with you to determine preferred spares and provide pricing as well as logistics support.
Using Veracity Connect, substation data can be stored, including equipment listings, nameplate data, photos, site restrictions and emergency preparedness plans.
With an aging electric grid, the report, released in 2013 by the White House is worth being looked at again:
“70 % of the [U.S.] grid’s transmission lines and power transformers are now over 25 years old (Campbell 2012).”
The damages caused by the 144 main weather disasters since 1980 have totaled more than $1 trillion.
“Grid resilience strategies require a partnership across […] the private sector to promote a regional and cross-jurisdictional approach.”
“Availability of Critical Components and Software Systems” is a priority of the U.S. government to improve the grid’s resilience.
Veracity Connect is our answer to this priority by offering utilities and industry partners a clear view of available critical spares before a potential failure occurs.
Upcoming Conference: 2014 Canadian Utilities IT & Telecom Conference
September 23 – 26, 2014
Here is your chance to catch up on our latest blog posts: