ARP's Proactive Approach to Asset Recovery
ARP Value Proposition:
An effective, efficient, and proactive Asset Recovery Business Process can have a direct impact on strategic planning, engineering, purchasing, facilities management, performance optimization, budgeting, and financial responsibility by generating the following values:
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Up to 10% annual reduction in capital spend of new assets by effectively reusing / redeploying existing assets
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Assisting new business development by providing lower investment threshold opportunities
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3 to 10 times increase of asset sale revenue by marketing the assets to “end user buyers” while the assets are still under power
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ISO 14001 compliance by disposing of assets in ways other than landfill and avoiding environmental crisis management
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Sarbanes Oxley and GAAP compliance by properly tracking and accounting for assets through retirement
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Effectively dealing with export compliance regulations
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Reduction of asset carrying costs (property tax, insurance, etc.) through timely disposal
Asset Recovery Value Added (ARVA™):
A robust Asset Recovery Business Process should have all of the following forms of ARVA (listed highest to lowest):
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Cost Savings from effectively reusing assets from one facility to another
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Revenue from selling assets
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Revenue from scrapping assets
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Tax benefits from donations
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Cost Savings from timely retirements
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Elimination of storage, property tax, insurance costs, etc.
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Revenue / Cost Savings generated from Building Demolition
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Cost Avoidance from reduced landfill (ISO 14001)
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Turn current costs to revenue by finding alternate disposal methods that generate ARVA
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ARP has developed an ARVA Estimating Calculator. Call us and we will see how much ARVA your company should be generating.
Assets with Residual Value:
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Land and Improvements
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Buildings
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Machinery & Equipment (capital items)
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Maintenance, Repair and Operating Supplies (expense items)
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Vehicles and Mobile Equipment
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Direct Materials (finished and unfinished inventory)
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Tooling
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Patents
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Trade Credits
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Office Equipment
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Furniture
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Steel coils, blanks, production offal, shavings and metallic scrap plus other raw materials
ARVA Case Study:
One of our clients, a large multi-national manufacturer, implemented key ARP business process changes which enabled them to realize all of the Asset Recovery Value Added (ARVA) benefits.
Proactive vs. Reactive Approach:
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Typical Reactive Asset Recovery:
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ARP's Proactive Asset Recovery:
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Impact to the Bottom Line:
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Companies with some focus on Asset Recovery:
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