Top 10 Factors for Selecting an Asset Management Partner – Part 1

Today, industry leaders understand that the asset management process can and should be optimised as a core business function to fully capture the value that exists within every surplus asset across their enterprises. This article delves into the first 3 factors that should be considered when selecting an asset management partner to maximise revenue generated from surplus assets.

Part 1: Superior Service

Leverages Metrics and Marketing Strategy Best Practices

Your asset management partner must be able to continually measure and report on its performance. Top-performing partners typically experience above-average market share, growth, and financials – and therefore achieve above-average results for their clients.

Your asset management partner should regularly report its activities and results, provide annual reviews, and host regular meetings to keep you apprised of how it is measurably impacting your organisation. As best practices and market conditions evolve, your partner must continuously explore opportunities to improve your program.

Since effective marketing helps maximise recovery, be sure to evaluate your partner’s marketing strategies, tactics, and tools. Is your partner leveraging best practices to understand, reach, and influence buyers?

Providers can also increase recovery by leveraging marketing data to target the most qualified buyers. Your partner should analyse relevant data and use these findings to craft customised campaign strategies for your surplus. It should monitor results throughout the campaign, adjusting its approach as needed to maximise recovery.

After every sale, analyse the reports your partner provides. Do the reports support transparency and accountability? Do they contain the data needed to measure the success of the sale?

Your provider can maximise recovery by including accurate, comprehensive descriptions and photos for all assets up for auction. This information gives bidders confidence in item quality, increasing the likelihood they’ll buy. For certain high-value assets, your provider should produce a short video demonstrating that the asset works. Videos can increase final sales prices four to seven percent.

Drives “Green Initiatives” and Sustainability Programs

Most leading organisations have sustainability programs in place. Partnering with a vendor that supports your zero-waste goals and green initiatives will enhance your overall sustainability efforts. Ask the provider to illustrate its ability to help clients meet sustainability goals. A qualified provider will have online marketplaces to connect buyers and sellers, extending the life of surplus and idle equipment and inventory. It should also have strategies to defer scrap material from landfills. It’s also important to align your organisation with a partner that’s committed to corporate social responsibility. You can trust this type of provider to operate with integrity, understanding its larger role in environmental and community stewardship.

Provides Solutions to Mitigate Compliance and Ethics Risks

Your asset management partner must be able to protect your business and reputation from all risks associated with managing and selling surplus assets. Look for a partner that integrates into your program to ensure you comply with international trade, data privacy, financial, health and safety, and all other applicable regulations and procedures.

Data privacy should be a compliance priority. Ask your provider how it mitigates data and information security issues.

Other critical compliance areas are buyer vetting and trade compliance. Your partner should have controls in place to ensure your assets are never sold to inappropriate buyers. Look for a provider that can verify buyer identity and credit information, ensure buyers provide end-use certificates for sensitive assets, and screen all buyers against global restricted-party lists.

Additionally, many countries have laws restricting sales within specific asset categories or to certain countries, individuals, and entities. Your provider’s buyer agreements should require compliance with all applicable export controls and economic sanctions regulations, giving you an extra layer of protection.

Conclusion

Your organisation’s surplus isn’t a burden – it’s an opportunity to add tremendous value and fuel achievement of key business goals. Since asset management is a non-core business function, your easiest path to optimising your reverse supply chain is through partnering with the right provider.

This article was designed to help you understand the first 3 key issues and support due diligence efforts involved in evaluating surplus asset management providers. Selecting a provider that meets the criteria detailed here – by providing better service – will ensure your asset management program runs just as effectively as your core business.

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