PLANT

Cut costs through investment recovery


August 27, 2009
by PLANT STAFF

TEMPE, Ariz.: Are you getting the most out of your investment in materials
and equipment? Companies that recycle, redeploy, resell and reuse their
surplus or obsolete materials and equipments can add millions of dollars to
their coffers each year, according the CAPS Research 2009 Investment
Recovery Performance Report. It shows that for every dollar spent on
investment recovery, $31 was returned to the bottom line.

Key performance indicators include: total cost benefit dollars to operating
expense dollars, best practices, investment recovery services and processes,
program-related tools and technologies, and professional investment recovery
program staffing.
The benchmarking report, sponsored by the Investment Recovery Association,
includes the per cent of companies that reported the implementation of the
following 11 best practice characteristics associated with successful
investment recovery programs and operations:

1. Strong and visible management support.

2. A seamless approach to surplus asset management.

3. Regular reporting of metrics and successes.

4. Financial incentives for surplus disposition.

5. Considering the use of surplus and refurbished assets before purchasing
new.

6. Early involvement in capital projects ranging from real estate purchases
to plant closures.

7. Investment recovery supplier integration and support.

8. Effective use of technology to support surplus sales or redeployment.

9. Effective surplus prevention and return-to-supplier programs.

10. Strong external networks to support surplus sales or redeployment.

11. A value-chain approach to surplus asset disposition.

CAPS Research is a global research centre for strategic supply management
based in Tempe, Ariz.

Click here to download the report. You’ll be asked to  register.
PLANT