Idle Asset Optimization comes with the realization that all the idle machinery that is locked up in warehouses, left to depreciate and gather dust, can bring in a high level of potential cash and returns for companies, if they are sold to the correct place. Idle Asset Optimization lays emphasis, not on the procurement of new machinery, but towards the better (and more effective) management of already existing equipment. It has opened the door for new opportunities as far as these machineries are concerned, which hitherto were left to collect rust since they were of no productive use to the concern any more. Apart from this, it has also opened up slots for venture capitalists to invest in these management and procurement practices. However, just having a true and accurate assessment of this equipment is not enough, the company and its concerned management team must also be able to calculate the strategy required to maximize the return from these idle assets.
Although the companies are now beginning to not only see the importance of proper asset management but also pool in the required resources to make it happen, companies are more often than not plagued with an inefficient and ineffective managerial system, since they lack the two most essential characteristics – proper awareness and knowledge of overlooking the process.
This lack of awareness and knowledge not only results in the ignorance of the real value of idle machinery but also leads to losing out on the earnings that such idle assets can provide to a company.
What several companies don’t realize is that most of this idle equipment is in perfect working order and can be utilized (either by modification or simply resetting some functions) by someone who requires them, converting idle machinery into working assets and thus bringing about idle asset optimization.
Of late, there are several services which specialize in idle asset optimization and focus on spreading awareness about idle asset management to companies, so they may call on assistance for managing their idle equipment and machinery. They specialize in constructing company-wise database, which enable the company to look through their inventory of idle machinery to see if there is any that can be reconstructed and modified to fit their current requirement. Software like these are changing the realm of idle and depreciating assets and enhancing their function, so that they may save time and money for the companies. It is advisable that idle machinery lying about the concern be tested for current requirements; they could contribute to production than just sit there and waste away, adding to depreciation in the books. Idle asset optimization is the way to go, and is the key to perfect asset management !!!