Asset Redeployment: Generate Cost Savings by Finding New Uses for Surplus and Idle Equipment

On average, it is estimated that approximately 5% of a manufacturer’s global installed asset base is idle at

any time, and most companies don’t have good visibility of their idle assets. As a result, companies end up buying machinery and equipment they already own. For multinational manufacturers, this can add up to tens of millions of dollars a year in needless spending. A cost-saving solution to this problem is to launch a formal asset redeployment program. Redeploying surplus and idle equipment internally can generate huge cost savings for a company.

Asset redeployment is the strategic relocation of assets from an idle or less profitable use to a more profitable use. Asset redeployment takes underutilized surplus and idle machinery and equipment, and changes how it is used in order to increase return on investment (ROI), or profitability. Rather than purchasing new equipment, a company utilizing a proper asset redeployment strategy and program can redeploy surplus or idle equipment in one part of the company to another part of the company, perhaps in another part of the world.

A formal asset redeployment program should:

• Identify your surplus assets and track them in a central database
• Make the assets visible internally, promote them to the most likely users, and intercept and prevent duplicate purchases
• Facilitate the process of redeploying the equipment within the company

EquipNet’s proprietary Asset Redeployment Management System (ARMS™) is a customizable, web-based, secure software program that provides companies with the ability to post, track, find, redeploy, buy, and sell equipment that is not being used in its present location. ARMS features include workflow management and multiple security levels for plant managers and executives across the business.

Learn more about how EquipNet’s Asset Redeployment Management System enabled one client to conduct a large international asset redeployment, saving them a total of $7 million and invaluable time by eliminating the need of purchasing new equipment from various OEMs, in our post, “Transferring Pharmaceutical Equipment Internationally.”

Categorias: Asset Management

Tags: asset management asset redeployment management system,