What is surplus asset management?
Surplus asset management is the process of identifying, evaluating, and disposing of assets that are no longer needed or are in excess of an organization’s requirements. Surplus assets can include equipment, machinery, vehicles, real estate, and other types of property. The goal of surplus asset management is to maximize the value of these assets while minimizing the costs associated with keeping them.
The process of surplus asset management typically involves several stages, such as:
- Identification: Identifying and inventorying the assets that are no longer needed or are in excess.
- Evaluation: Assessing the condition, value, and market demand for the assets.
- Disposition: Deciding on the best method for disposing of the assets, such as selling them through an auction, trading them in, or donating them to a charitable organization.
- Liquidation: Implementing the chosen disposition method and finalizing the sale or transfer of the assets.
- Reporting and Accounting: Keeping records of the sale and disposal of assets, and reporting the results to relevant stakeholders.
Surplus asset management can be done in-house or outsourced to specialized companies that specialize in managing and disposing of surplus assets, these companies can help organizations to minimize the costs of owning and maintaining surplus assets, and maximize their value through different methods like auction, selling or trading in.