Science of converting the redundant assets into revenue machinesMadhusudan Chokhani, Founder www.tpois.com
In this world of cut-throat market competition, intelligent industrialists are those who optimise their resources and capacity to achieve economies of scale. Keeping the redundant machines and equipment without having a future requirement is a cost-affecting decision that may attack directly on the profit margins of the business. Bulky and voluminous machines not only demand robust people to take care of them but space they consume indeed value a lot. Philanthropy is a noble act, but industrial machines cannot be donated to schools and NGOs. Their rising population is a big concern, and the problem is more serious in the iron & steel, construction, infrastructure, power, and real estate sectors. Firms in these sectors are facing a variety of problems from these non-earning assets. These days, even a single organisation accommodates these idle resources of worth lakhs and crores.
What to do with redundant machines and equipment?
A machine has its own useful life that depreciates continuously over the time. But, in contrast, what is un-useful for company A might be the immediate need of company B or C. In the era of startup culture, many small enterprises cannot purchase new and expensive machines. Such kind of startups either borrows machines and equipment on rent or they seek to purchase the used ones from large organisations at affordable prices. The former choice good to meet short-term needs, but in the long-run, of course, the latter option is more feasible as well as cost effective. The problem arises again; once a small business owner searches for the used machines and due to lack of awareness either he couldn’t find a right deal or make a wrong deal in a bit hurry.
How to monetize redundant industrial machines
Business is a social activity that thrives on communication, networking, and relationships. That’s why entrepreneurs with great social skills always invest time to develop networks that help them explore fruitful opportunities. Acquisition of machines and equipment at low cost and high returns should be one of the principal business objectives of every entrepreneur that could meet rather easily through a social network. Fortunately, the birth of social media is a blessing for business leaders who understand the worth of social networking. In 2017, there are many e-avenues which connect potential industrial buyers with potential industrial sellers of used machines and equipment. This new generation of web portals induces the industrial community to think positive about surplus machines that are functional but not in their use. These are the hidden wealth of an organisation that can be enchased through a right disposal mechanism.
A win-win equation
Benefits of the above-mentioned B2B portals are innumerable to the manufacturing industry because they provide a platform to interact with the people of similar needs and interests. Buyers can search a vast variety of the products on their computer screen, can read reviews, can do a more accurate cost-benefit analysis, and finally, can save a substantial amount of time and money. On the other hand, sellers of the used machine can monetize their idle resources and help them receive a better resale value of the used machine and equipment through e-auction facility. Otherwise, they were incurring several unwanted costs and cannibalising the business profit. Practical experiences convey that e-auction of used machines and equipment is the best strategy for manufacturing companies that don’t require any marketing cost, connects with appropriate buyers and generates revenue from non-moving/redundant assets. Moreover, the common benefit for both buyers and sellers is link-building with prospective clients in a B2B framework.
In the changing business and technology scenario, industries shouldn’t treat their surplus machines and equipment as waste because global industrial connectivity through the internet has changed the destiny of them. Yes, some buyers are willing to pay for them, they exploit them to leverage the productivity of their startups or small businesses. So, don’t underestimate them; these black sheep are going to be the dark horses of their prospective masters.
Authored by Mr. Madhusudan Chokhani, Founder www.tpois.com