The 12 Blog Posts of 2014!

Utility Conferences 2015 1Selected 2015 Utility Conferences & Trade Shows

Large Power Transformers and The U.S. Electric Grid Veracity Critical Spares9 Key Facts from the “Large Power Transformers and the U.S. Electric Grid” Study

Debunking 5 Myths About Purchasing Reconditioned Electrical Assets VeracityDebunking 5 myths of Purchasing Reconditioned Electrical Assets – Infographic

Disposition Surplus Asset Veracity Asset ManagementDetermine the best disposition solution for your surplus assets – Infographic

Investment Recovery Veracity Asset Management UtilitiesInvestment Recovery: the Missing Link in the Supply Chain

Transformer Problem Veracity Connect WillisThe Transformer Problem

SpreadsheetWhy Using Speadsheets is a Risk for Your Supply Chain

We’re one of the 15 Canadian companies CDMNVeracity Is Part of the CDMN’s Outbound Soft Landing Program

Plant decommissioning Energy Nuclear Oil GasDecommissioning Projects: Why It Costs So Much And Takes So Much Time

Supply Chain, Investment Recovery, SustainabilityArticle Highlight: Sustainability, Investment Recovery and Supply Chain

Veracity Connect Critical SparesCritical Spares Infographic

Veracity Connect Utility Critical AssetVeracity Asset Management Group Announces the Introduction of Veracity Connect


Mutual AidAsset,Critical Spares Twitter BannerLearn more about our Mutual Aid & Critical Spares Management Solution for Utilities: Veracity Connect, collaborative platformMake electrical equipment procurement easy and efficient. Locate a matching power transformer before a failure occurs!

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Utilities News Roundup! November – December

Nuclear

Southern_California_Edison_(logo) Panel hears bids for storage of nuclear waste http://ow.ly/DoyRO “Southern California Edison’s Community Engagement Panel met on Oct. 14 to hear bids from the two final companies vying to create storage for nuclear waste at the decommissioned San Onofre Power Plant.” #power

Entergy Entergy: $1.24B Is Needed to Decommission Vermont Yankee Nuclear http://ow.ly/Dqile #nucleardecommission

nuclear-power-plant End Of Life Costs For #Nuclear Power A Real Concern http://ow.ly/Et9EM 200 nuclear reactors have to be shut down by 2040: who will lead the #decommissioning projects… and how much will be the bill? #power

Utilities

Georgia Power Georgia Power named IOU of the Year for innovation, industry collaboration and leadership in the solar energy http://ow.ly/DpSIs #IOU #utility

Hydroone Hydro One Invests to Refurbish Ontario Michigan Interconnection Transmission Circuit http://ow.ly/Dq9Bm “The $6.8 million investment refurbished 24 towers on the 5.5-km circuit that runs from Sarnia Scott TS to the Mid River Junction Bunce Creek at the St. Clair River.” #powertransmission

Massachusetts Massachusetts Tops California as Most Energy-Efficient State http://ow.ly/DpWRm #Massachusetts #energy #utilities

LG&E Kentucky PPL Companies LG&E, Kentucky Utilities to add up to 737MW of gas generation http://ow.ly/Dq36g #Kentucky #gasplant

utilities2 Old Is New Again in the Utility Industry http://ow.ly/DKPto #utility #power

mega power plant Infographic: The World’s Ten Largest Power Plants http://ow.ly/DL2gx “with the top 5 located in China and South America.” #powerplant #China

NERC NERC troubled about EPA Clean Power Plan impact on grid reliability http://ow.ly/E4p0E “The NERC assessment, Potential Reliability Impacts of EPA’s Proposed Clean Power Plan, provides recommendations for further analyses to ensure continued system reliability.” #grid #utilities

AES_Corporation_(logo).svg AES to provide 1,284 MW of gas power to replace San Onofre http://ow.ly/E4qTs “AES has been awarded 20-year contracts by Southern California Edison (SCE) to provide 1,284 MW of combined cycle gas-fired generation” #gaspower

Alstom Alstom delivers demand response system to Con Edison http://ow.ly/E8qyK “The product is based on Alstom’s e-terra DRBizNet 3.0​, and provides utilities the ability to compensate energy flow and optimize existing assets.” #utilities

Tamil_Nadu_Electricity_Board_(emblem) Awards for failure-free operation of EB transformers http://ow.ly/E8sQ0 “Over the past five years, transformer failures have come down to 6.25 per cent from 13 per cent in the Tiruchi region which has over 40,000 transformers” #utilities #powertransformers

energy-management-power-grid Northern Michigan is facing a power crisis. How will it be fixed? http://ow.ly/E8z6L #Michigan #powergeneration

BChydro BC Hydro, LNG Canada sign #power deal; project still not official http://ow.ly/ESoMa “The deal […] comes as the Liberal government announced the power rates for LNG proponents.”

the-keystone-xl-pipeline-just-moved-one-step-closer-to-approval-702x336 #Keystone XL price tag hits US$8B amid regulatory stalling http://ow.ly/ESfLD #Albertaoilsands

Federal Energy Regulator Commission FERC issues decision on Duke-Progress merger…after three years http://ow.ly/ESt1X #power

opower_s Opower, FirstFuel partnership yields ‘major expansion’ with #utility customer http://ow.ly/Et5n5 The partnership allies data #analytics and utility software systems.

Federal Energy Regulator Commission FERC Issues Order Authorizing the Disposition of Facilities Re Portland General Electric Company Under EC14-147 http://ow.ly/EtBTL “The Boardman Project includes a 642.2 MW coal-fired generating facility, interconnection facilities to the Slatt Substation and a line used to deliver station power to the generating facility that runs from PacifiCorp’s 230 kV Dalreed Substation” #substation

utility1 monopoly Here’s what to expect for #utility rates in 2015 http://ow.ly/EtIA2 average increase of 1.9 %

 

International

Coal Plant Energy Coal gets cold shoulder from Denmark and Germany http://ow.ly/DK9kV “Denmark and Germany have outlined plans to decrease or potentially eliminate coal plants as part of a push to meet climate goals. ” #coal #denmark #germany

abengoa_logo CCRES Abengoa to develop in Belgium the largest #biomass power plant in the world http://ow.ly/E8wVo Capacity of 215 MW, €315M

map-oman #Oman Enhances #Power Delivery http://ow.ly/ESPHZ 6 new substations will be commissioned to answer electric demand

Rosatom Dhaka, Moscow finalise action plan for Rooppur #nuclear power plant http://ow.ly/EtHlN #Russia

Radioactive California Fukushima Traces of #Fukushima Radiation Detected Off #California Coast http://ow.ly/EuqzU A priori no harm

duke-energy-co-logo Duke Energy announces plans to begin removing #coal ash from four North Carolina sites http://ow.ly/EuCoq ““The initial work at these facilities will help us assess various approaches for the closure plans at our remaining 10 North Carolina facilities,” said Elnitsky.”

Physical & Cyber Security, Extreme Weather Events

grid resiliency Sandy Critical infrastructure sees upgrades since Sandy devastation http://ow.ly/DoLvU States and utilities have improved flood protection, more resistant residential, public services infrastructures and the power grid. #superstorm

NERC Beyond NERC: best practices for worst-case scenarios http://ow.ly/CcjdB “Plan for recovery as well as prevention.” This is why we offer utilities Veracity Connect, a platform to source critical spares, like transformers, in North America #NERC #reliability #criticalasset

UtilityCoRecruit2.1013.large Winter utility assistance plans available http://ow.ly/DK3B9 “With the onset of colder weather in Northeast Ohio, several programs are offering financial assistance to customers who may have difficulty keeping up with the costs of their utilities.”  #utilities

Superstorm Sandy Remember Sandy: Two-Year Anniversary http://ow.ly/DKW78 “Hurricane Sandy affected 24 states, including the entire eastern seaboard from Florida to Maine and west across the Appalachian Mountains to Michigan and Wisconsin, with particularly severe damage in New Jersey and New York.” #superstorm #hurricane #utilities

CPS-Energy-logo Municipally-owned CPS Energy putting San Antonio on the forefront of smart cities http://ow.ly/E8myQ “The grid of the future will be more than a one-way delivery system for electricity. It will be a platform for information and services that we’ve barely begun to imagine,” said Doyle Beneby, CEO of CPS Energy. #smartcity

2000px-US_Department_of_Homeland_Security_Seal.svg #Cyber-attack causes major breach of software controlling critical U.S. infrastructure http://ow.ly/E8tIG The malware [BlackEnergy], although not yet live, can activate anytime and leave these processes susceptible to failure or malfunctioning.

Big_Data-310x224 How four U.S. #utilities are tackling big data http://ow.ly/ERh8D Utilities are well decided to start diving into big data. What will be the outcome? #bigdata

Security_Threat_Report U.S. Orders Electric Utilities to Secure Sites From Attack http://ow.ly/ERay7 Physical #security is becoming a major concern for utilities and industry partners.

storm_arthur.jpg.size.xxlarge.letterbox Storm Hardening the Grid http://ow.ly/E8jhM Are you ready for the coming #storms? We can help you with mutual aid agreements http://ow.ly/E8juF #utilities #mutualaid

604491_LIghtning-storm-in-Alberta-Canada In Orleans, no #storm but responders active http://ow.ly/ERxlS Maximize your mutual aid agreements with Veracity Connect http://ow.ly/ERxHq #mutualaid

North America Grid Weather Forecasts North America 2015 http://ow.ly/ESRxQ Temperatures above normal…which means more snow than usual! Turn your mutual aid agreement on with Veracity http://ow.ly/EucON #mutualaid

Renewables & Smart Grid

Federal Energy Regulator Commission FERC: Renewables account for 40% of capacity additions this year http://ow.ly/DtaYY “According to FERC, there are 62.3 GW of installed wind and another 9.74 GW of solar, but those make up less than 6% of total capacity. The bulk, some 42% of the total, is still gas-fired.” #renewable #utilities

renewables logo New Renewables Will Require #Transmission Upgrades http://ow.ly/DpMzS “is it that simple?”

Solar panel installation Georgia is the nation’s fastest growing #solar market http://ow.ly/ERMAn “Solar-related jobs in the state grew 225% last year”

Microgrid-global-view Are #Microgrids a Myth? http://ow.ly/ESOoF Should utilities promote distributed energy resources?

wind turbine New analysis: U.S. is world’s number one #wind energy producer, leading China and Germany http://ow.ly/ExvpS “Over $120 billion worth of U.S. wind projects have been installed since the year 2000.”

Word Cloud Smart Grid Smart Grid Networking, Communications Technologies Spending Expected to Total $30 Billion over Next 10 Years http://ow.ly/advanced

 

Company NewsMutual AidAsset,Critical Spares Twitter Banner

Veracity is now a proud Silver Associate Member of the NRECA! Cooperatives are essential to the U.S. electric grid. We help coops source critical spares through the power of collaboration: http://ow.ly/Dx7Hp +NRECA #coops #electricgrid

We are proud of being an associate member of the Michigan Municipal Electric Association! veracityamg.com #electricity #collaboration

As a municipal utility or coop, become a Veracity Connect Member to source critical spares http://ow.ly/i/7nB9u http://ow.ly/DtMxC

We wouldn’t have been able to go to Georgia without the help of the #softlanding14 Program. Thanks to @CDMN for helping us #GrowGlobal

 

Recovering value from plant decommissioning? http://ow.ly/xjC1d #decomissioning #powerplant #utilities #energy http://ow.ly/i/79MkB

Decommissioning Projects – Why it takes so long & costs so much: http://wp.me/p2EjZw-7I Share it & share your expertise!

Join the Investment Recovery Canada group and find opportunities for your Canadian company: http://ow.ly/zymGu http://ow.ly/i/7nCOH

Turning your surplus equipment into a financial reward: this is called investment recovery: http://ow.ly/yzrN7 http://ow.ly/i/641yF

Aging grid assets? How to know which equipment to replace and when http://ow.ly/D3B4M Get some help from Veracity Connect: http://ow.ly/D3C2m

#Asset Redeployment Checklist http://wp.me/p2EjZw-8S We assist you in choosing the best option for idle #equipment http://ow.ly/EVCgb

 

Renewable or not, the energy you provide requires an emergency plan if a transformer fails: http://ow.ly/BZJ7k http://ow.ly/i/7nBT6

We know what you go through as a utility company when you look for a spare transformer – Veracity Connect http://ow.ly/BZJ7k #utilities #power http://ow.ly/i/7nByl

Looking for #power transformers? Veracity Connect helps you get in touch with other #utilities, OEM & resellers http://ow.ly/DOC9S

Don’t be left in the dark when a transformer failure occurs – Veracity Connect http://ow.ly/BZJ7k http://ow.ly/i/

Binder, spreadsheet, buddy system… you deserve better to source critical spares for your utility company. Contact us & Try Veracity Connect: http://ow.ly/BonlR

Our surplus utility equipment catalogue is now available! http://ow.ly/DLcVN Check it regularly and contact us if you are interested in some of the featured items! #utility #surplus #powertransformer

 

A cloud platform that helps you source critical spares and reinforce your mutual aid agreement? It exists: Veracity Connect http://ow.ly/Aua0t LinkedIn: http://ow.ly/AuacD

Transformer Fleet, Mutual Aid & Asset Disposition are components of Veracity Connect: http://ow.ly/ET0a7 http://ow.ly/i/7Invt

Are you a #utility? Have instant access to mutual aid contacts & resources with Veracity Connect http://ow.ly/ExDtr

 

Join us on LinkedIn page http://ow.ly/ET5kW We help #utilities source critical spares & maximize mutual aid http://ow.ly/ET5kX

Why Using Spreadsheets is a Risk for Your Supply Chain http://wp.me/p2EjZw-76 #spreadsheet #supplychain http://ow.ly/i/7jbDs

Subscribe to our Veracity’s monthly newsletter: Critical Spares Management & Investment Recovery for Utilities http://eepurl.com/LVtY1 http://ow.ly/i/73Jj2


 Learn more about our Critical Spares Management Solution for Utilities: Veracity Connect, collaborative platformMake electrical equipment procurement easy and efficient. Locate a matching power transformer before a failure occurs!

Stay updated through our social media platforms and our website:

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Asset Redeployment

Some of your assets are sitting in your warehouse, costing you more than what you think (ask your accountant!). Getting rid of it is a solution, redeploying the equipment to another company branch is an alternative to consider first.

The following checklist can help you ensure an effective redeployment:

Asset Redeployment Infographic Utilities

Go further

Collaborative economy and idle asset management: an environmental and financial reward

Investment Recovery: the Missing Link in the Supply Chain

Debunking 5 myths of Purchasing Reconditioned Electrical Assets – Infographic

Determine the best disposition solution for your surplus assets – Infographic


 Learn more about our Critical Spares Management Solution for Utilities: Veracity Connect, collaborative platformMake electrical equipment procurement easy and efficient. Locate a matching power transformer before a failure occurs!

Stay updated through our social media platforms and website:

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Decommissioning Projects: Why It Costs So Much

Plant decommissioning Energy Nuclear Oil Gas

If you like being up to date in terms of news in the energy sector, or if you live close to a power plant, you must have heard the word “decommissioning” more than once.

Definition

Decommissioning is the administrative and technical process to remove something from an active status (Wikipedia). Applied to industrial facilities, it means disabling and dismantling any active industrial units until no hazardous material or danger remain.

Decommissioning commonly concerns power plants, especially nuclear, pipelines, offshore rigs, tanker ships, military aircraft carriers and nuclear submarines. Nuclear decommissioning is the “process whereby a nuclear power plant site is dismantled to the point that it no longer requires measures for radiation protection” (Wikipedia). A more detailed definition can be found on the U.S. Nuclear Regulatory Commission website.

Regulation compliance

Decommissioning projects are submitted to strict regulations and standards, such as:

Offshore oil gas platform rig Veracity

Decommission Steps

These steps are based on a typical offshore rig decommission, but the general process can be applied to power plants, ships and submarines.

  1. Project management: review of contractual obligations, engineering analysis, operational planning, contracting.
  2. Engineering and planning.
  3. Permitting and regulatory compliance: consulting firms can assist in obtaining required licenses and permits.
  4. Facilities preparation: flushing and cleaning tanks and pipes, getting metal units ready to be lifted.
  5. Disabling industrial units.
  6. Equipment removal.
  7. Materials disposal and site clearance: these two final steps require pre-decommissioning and post decommissioning surveys, identification of debris which could interfere with dismantling operations, and test trawling to ensure that the area is free of debris and ready.
  8. Site release.

Nuclear plant decommissioningNuclear Plant Decommissioning

For nuclear plants, three methods are available:

  • Reactor dismantling and decontamination, allowing the land to be used again;
  • Safe storage: the plant is monitored and taken down once radiation has decayed;
  • Entombment: a coffin or dome made of concrete and steel is set on the radioactive components. The Tchernobyl nuclear plant is a typical example of entombment. The land can be used once radiation has decayed, which can take decades depending on the level of radiation.

Offshore rig decommissioning oil gasTime frame

Projects require several years, from assessing the need to decommission a power plant to dismantling the last industrial unit. For nuclear plants, it can take up to 60 years in case of safe storage or unlimited time if the site cannot be decontaminated.

Why decommissioning?

The main reason is financial. It is sometimes not worth economically to upgrade power plants, offshore oil platforms, tankers and nuclear submarines. Alternative technologies exist and may prevail over updating current facilities.

Safety will also lead companies and governments to close facilities. For nuclear plants, government commissions assign operation licenses for an average period of 40 years. Nevertheless it is common to extend the plant’s life to 60 years or more. Safety is a key reason, but is sometimes put aside for economic reasons.

Dismantling decommissioning industrial site plantWhat happens to removed equipment?

  • Working units are redeployed or sold as is, where is.
  • Metals are scrapped and recycled.
  • Hazardous substances are sent to specialized processing facilities to be reclaimed or decontaminated.

To learn more about disposition options, read our blog post about the 7 Ways To Dispose of Your Surplus Assets.

 How much does it cost?

Even though the operating company is required to set aside funds throughout the plant’s or industrial facilities’ operating lifetime, it is common to see costs increase step after step. The decommissioning cost sometimes exceeds the cost of the plant when it was purchased. The spent fuel –nuclear waste – is sent to specialized waste disposal facilities and buried underground. No methodology has been found to process such hazardous waste yet.

Veracity can assist your utility or industrial company retrieve value from idle or decommissioned equipment. We can help you implement a tailored investment recovery program which will free up money for your bottom line. According to the Investment Recovery Association, $1 put in the investment recovery brings at least $20 dollars back to the bottom line. This is no magic, but a combination of a dedicated and skilled team and an effective network.

Decommissioning Project ValueWe assist you in:

  • Setting/improving Policies and Procedures to manage the end of life cycle of corporate assets. This starts with a well-defined policy, asset release form and follows key procedures to maximize the asset disposition process with full audit trail that provides risk mitigation to avoid environmental liabilities.
  • Sending feet on the ground inventory teams that can efficiently capture asset data and catalog the assets to provide internal corporate wide visibility of available surplus.
  • Sending the surplus back to the market through our network with the purpose of maximizing the value you recover.
  • Developing scrap management protocols to maximize return on scrap as well as reduce corporate exposure to environmental liabilities.

Veracity Surplus Asset ManagementContact us at 866-694-1252 or info@veracityamg.com. We are located in Sault Ste. Marie, Ontario, with solutions available for the North American market. Visit our website at http://www.veracityamg.com


 

Go further

Current Decommissioning Projects:

Exelon: Company dismantling Zion nuclear plant is running out of money

Entergy: $1.24B Is Needed to Decommission Vermont Yankee Nuclear

Letters: Good luck to Leshinskie on decommissioning of Vermont Yankee

San Onofre nuclear power plant dismantling will cost $4.4 billion, take 20 years

Chance for one last tour of Spondon’s Celanese factory before it is bulldozed

For offshore oil and gas decommissioning UK projects, you can check the Decommissioning Projects Index

Decommissioning a Nuclear Plant Can Cost $1 Billion and Take Decades

How Fukushima nuclear plant will be dismantled

Oil & Gas UK Decommissioning Insight 2013

Closing and Decommissioning Nuclear Power Reactors (2012)

 

Sources

Nuclear Decommissioning by Wikipedia – http://en.wikipedia.org/wiki/Nuclear_decommissioning

U.S. Environmental Protection Agency – http://www.epa.gov/

Students’ Corner – Decommissioning, by theU.S. Nuclear Regulatory Commission – http://www.nrc.gov/reading-rm/basic-ref/students/decommissioning.html

How Does Decommissioning Work? by Rigzone – http://www.rigzone.com/training/insight.asp?i_id=354

Decommissioning Nuclear Power Plants, by the Nuclear Energy Institute – http://www.nei.org/master-document-folder/backgrounders/fact-sheets/decommissioning-nuclear-energy-facilities

Staff Responses Frequently Asked Questions Concerning Decommissioning of Nuclear Power Reactors – http://www.eu-decom.be/faqs/faqs2.htm#_1_27

 

Learn more about our Critical Spares Management Solution for Utilities: Veracity Connect, collaborative platformMake electrical equipment procurement easy and efficient. Locate a matching power transformer before a failure occurs!

Stay updated through our social media platforms and our website:

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Your Veracity Connect Newsletter – Volume 6

Veracity Connect Utility Critical AssetTransformer Problem Veracity Connect WillisThe Transformer Problem

The consequences of a transformer outage can be potentially catastrophic. From a 20-minute interruption to a several day outage, the failure of a single transformer can leave thousands of customers in the dark and in some cases can result in significant revenue losses.

According to a recent Willis North America Article (March 2008), The Transformer Problem, “transformers have for decades been ranked in the top five (5) by equipment insurers in terms of claims”. To magnify the importance of this issue, a June 2012 study, Large Power Transformers (LPTs) and the US Electric Grid by the U.S. Department of Energy indicated that “the average age of LPTs installed in the United States is approximately 40 years, with 70 percent of LPTs being 25 years or older and some as old as 70 years that are still operating in the grid”. The same source also noted that the useful life of these transformers, as estimated by manufacturers is typically 35 to 40 years.”

Replacing this aging infrastructure is one of the key challenges faced by today’s Utilities. Compounding the challenge is the fact that the “average price of copper more than quadrupled between 2004 and 2011, costing more than $4.27 a pound by 2011” causing the cost of transformers to skyrocket. Willis North America has indicated that “a large transformer that cost $500,000 in 1960 (there are many of this size and vintage still in use), now has a replacement cost of about $4,000,000”. Long lead times also create challenges, with the lead time for a new unit approaching an average of 18-24 months.

In response to these challenges, Veracity Asset Management Group developed Veracity Connect, a proactive critical spares management system. Veracity Connect links utilities, Cooperatives, OEM’s and leading transformer brokers to establish a pool of available critical spares.  Veracity Connect allows utilities the ability to quickly locate matching spare transformers and capital equipment across North America all in one location.

Learn more at www.veracityamg.com. Contact us today at 866-694-1252 or info@veracityamg.com to become a Veracity Connect Member.


Veracity Connect Asset Management UtilitiesVeracity Connect: Your Critical Spares Management Solution

  • Instant access to critical spares such as transformers
  • Power of collaboration: reach utilities, OEMs, brokers and industry partners across North America
  • Proactive approach: understand where matching spares are before you need them
  • Take advantage of pooling/sharing strategies for economies of scale

Contact us now to become a Veracity Connect Member!


A glimpse of the assets we manage for our clients:

  • Substation transformers
  • Pad mount transformers
  • Pole mount transformers
  • Switchgear
  • Surplus line trucks
  • Steam turbines
  • Transmission towers
  • LED street lights, such as:

Brand new VIVIX LRL3 and LRL4, 120-277 VAC, 50/60 Hz, full 10-year warranty

Vivix LED Street Lights Contact us now at 866-694-1252 or info@veracityamg.com


Veracity Asset Disposition ManagementThe 7 R’s of Investment Recovery

 In our continuing segments on the 7 R’s on Investment Recovery we concentrated on number 4: RESELL. We focused on the importance of placing used and unwanted assets back into the market by reaching out to end users or third party dealers and asset management companies.

We are continuing this month with our focus on 5 and 6: RECLAIM and RECYCLE.

Reclamation is a synonym of recycling. It is the process of recovering substances and materials in a pure or usable form from equipment, such as oil in transformers, lithium from batteries or mercury from LCD screens. The difference with recycling is that the substances are recovered but not reprocessed.

Recycling, internally or via recycling facilities, usually involves a specific process where a type of material, such as ferrous and non-ferrous metals, glass or plastic is fused and turned into new, raw materials.

Recycling is strongly recommended. It is essential to reduce the amount of waste ending up in landfills, especially hazardous substances like PCBs. Income can be generated by recycling and reduces the need for virgin materials.

Recycled materials can directly be reused by your company or sent back to the raw material streams. The recycling facility should provide you with certifying documentation, useful to preserve your audit trail and your company reputation.


We’re one of the 15 Canadian companies CDMN

Veracity will participate in the Canadian Digital Media Network’s Soft-Landing Fall 2014 Program to help forge the partnerships and connections to take on the U.S. market.

“The Soft-Landing Program has already resulted in millions of dollars in new business and investment for our participating companies and generated more than a 30x return on CDMN’s investment of funds and resources,” said Kevin Tuer, CDMN’s Managing Director.

For more information about the program, please visit www.cdmn.ca/soft-landing-program/overview/


Catch up on our last company blog posts!

Stay updated through our social media platforms and our website:

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Learn more about our Critical Spares Management Solution for Utilities: Veracity Connect, collaborative platformMake electrical equipment procurement easy and efficient. Locate a matching power transformer before a failure occurs!

Investment Recovery: the Missing Link in the Supply Chain

Investment Recovery Veracity Asset Management UtilitiesInvestment Recovery (IR), also called Surplus Asset Management, is defined as the practice of recovering the highest value of assets considered as surplus or no longer supporting the company’s operations. IR is does not appear in Michael Porter’ s Value Chain model, as this analysis focuses on one-way activities, from procurement and inbound logistics to the sales and service activities. For a reminder, Michael Porter, Harvard Business School Professor, identified in  model the activities that create value for the company. These activities are categorized in primary activities and support activities in Porter’s model:

Michael Porter Value Chain Surplus Asset Management Investment Recovery

IR professionals consider their activity as the missing link of this value chain model by recovering the value of unused assets.

Through its primary and support activities, a company will buy assets, such as industrial equipment, fleet vehicles and other materials, with the ultimate goal to maintain and/or increase its margin. The procurement manager plays a key role in acquiring these items at the best rate and quality.

At a certain time, the company will change its equipment, fleet or other critical assets. We often forget what happens to this piece equipment no longer in use. The first reflex will be to either park it in the warehouse (high holding costs!), or if it is considered as obsolete, in the laydown yard, or worse, in the landfills. The company may not be aware of the intrinsic value of these idle assets.

IR professionals aim at recovering this hidden value that these assets represent. The support activity of procurement can be actually turned into a complementary financial stream for the company. The return can be surprisingly high. The last studies from Center for Advanced Purchasing Studies or Arizona University show that $1 spent in the investment recovery process at least brings $20 back to the bottom line, in terms of cost avoidance, cost reduction, employee productivity and proceeds of sales.

Surplus Asset Managers bring to their clients transparency and legibility of surplus assets through efficient practices. After identifying and evaluating the assets, the IR professionals and the company will choose the best option for each of them, with a clear audit trail.

These options are:

  • Redeploying the asset to another branch of the company, avoiding the cost of purchasing a new unit;
  • Marketing and selling it;
  • Scrapping it;
  • Donate it;
  • And if any of these disposition methodologies cannot be applied, the asset is sent to a waste management company with the priority of preventing negative environmental impacts.

Learn more about these methodologies options: 7 Ways to Dispose of Your Surplus Equipment

A company that has a solid IR program will distinguish itself from its competitors, as the costs are better controlled, revenues from idle assets are maximized and environmental and corporate exposure risks are mitigated.

Explore our website Veracity Surplus Asset Management and our LinkedIn page: Veracity LinkedIn

We will be glad to connect with you on Google+ and Twitter. Share your feedback and questions!

Veracity Asset Management Google plus Veracity Twitter

Value Chain Model from http://www.partnerscreatingwealth.com

Corporate Sustainability – A New Perspective

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

Veracity Adds New Ontario LDC Customer

Veracity Adds New Ontario LDC Customer

Veracity Asset Management Group (Veracity) is pleased to announce it has signed a RecoverySeeker subscription agreement with one of the largest local electrical distribution companies (LDC) in Ontario. In conjunction with our Surplus Asset Management Services, RecoverySeeker provides corporate wide visibility of surplus and idle assets