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.

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 Connect consolidates 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.