After reading several articles on critical success factors for sustainable purchasing, the focus is always on the purchase. There is a huge gap in most large organizations that fails to understand the importance of surplus equipment, supplies and inventories. In many instances, the corporation may be able to avoid the purchase as it potentially has surplus items in one location that can be used at another? A key aspect in sustainability is to change the mind-set of buyers regarding used assets or surplus. With support of senior management, procurement can play a key role in ensuring that surplus items are not already available within the company, before committing to the new purchase.
This role called Investment Recovery or Surplus Management can be created within the company or contracted out to a company like Veracity who only specializes in surplus management. The key function is to help Procurement understand where surplus items may be within the organization and to redeploy those items into other departments and functional areas. Items that cannot be reused are then put through a rigid hierarchical process to maximize the value of the surplus. Not only is this a cost avoidance strategy, it is a success factor in corporate sustainability!
The Investment Recovery Association and Certified Managers of Investment Recovery(CMIR) work to maximize the value of surplus within an organization. Assets or surplus that is no longer required can then be traded in, sold, donated or recycled. The ultimate goal is to keep assets and inventories out of landfills and into hands of those who will re-purpose the item(s) and use it!.
Often people think about the cost when they think about environmental sustainability. Adding in the Investment Recovery framework can help shift that idea and show them it is possible to have profitable sustainability! Investment Recovery is often referred to as the missing link in supply chain and not only will it create immediate payback to the company but it also reduces a company’s environmental liability exposure risk.
To learn more about investment recovery, please contact Veracity Asset Management Group. Also be sure to check us out on Linkedin, Facebook and Twitter.
Veracity Asset Management Group