maximize supply chain

Maximize Supply Chain ValueThrough Superior Service, Scale, and Results

LiquidityServices.com

Table of Contents

Introduction 3

About the Survey 4

Superior Service 5

Superior Scale 8

Superior Results 10

Conclusion 12

From equipment sitting idle in warehouses to returned goods and excess inventory, every organization has surplus. Traditionally, the management of this surplus – known as the reverse supply chain – has been a burden for organizations. Today, however, the reverse supply chain has become a $150 billion and growing industry that presents tremendous opportunities for forward-thinking organizationsi. Tapping their reverse supply chains, organizations can transform surplus into maximum value that supports strategic initiatives. But should they do it alone?

Since the reverse supply chain is, by definition, a non-core function for most organizations, your enterprise likely lacks the time and resources required to build, implement, and manage a high-performing program for your surplus assets or inventory. The ideal solution is often to select a trusted partner to handle this area. The right partner will maximize total value across your reverse supply chain while requiring little time and effort from your organization, freeing up resources to focus on your forward-flow business.

What do leading organizations value most in a surplus asset management partner? And what specific traits should your organization look for in a partner to ensure it can provide a high-impact surplus asset program that meets your goals? Liquidity Services’ latest survey of investment recovery and reverse supply chain professionals sought to answer these questions.

Introduction

i https://www.liquidityservicesinc.com/company/news/media-coverage-details?title=best-practices-for-asset-management-to-achieve-competitive-advantage

Maximize Supply Chain Value Through Superior Service, Scale and Results

About the SurveyLiquidity Services is a global solution provider in the reverse supply chain that possesses the world’s largest marketplace for business surplus, with nearly three million registered buyers and counting. Every quarter, we survey a global network of reverse supply chain and investment recovery professionals to gain a deeper understanding of their needs and priorities. We use this information to continually provide superior service to our clients while helping organizations improve their own reverse supply chains.

Our most recent outreach surveyed nearly 150 professionals to discover what they value most in a surplus asset management partner. Respondents came from a wide range of industries, including manufacturing, energy, transportation, and retail.

Our survey yielded an important finding. Leading organizations have high standards for their surplus asset management vendors, desiring providers that maximize total value across their reverse supply chains by providing superior service, scale, and results. It’s not enough for partners to sell surplus for high recovery. They must provide superior service that helps clients make informed, sustainable decisions; mitigate risks; and generate results that are meaningful and measurable. Through superior scale, they must simplify clients’ operations and enhance productivity globally. And they must provide superior results that maximize return and velocity across clients’ reverse supply chains. Not coincidentally, our survey also found that many organizations (42%) are dissatisfied with their current reverse supply chain vendors, and that these dissatisfactions were directly related to the providers’ failures to deliver appropriate levels of service, scale, or results.

By partnering with a vendor that excels in these areas, your organization will experience a high-impact program that operates as effectively as your core business. And you will vault ahead of competitors that are settling for less. Read on to discover why leading organizations value superior service, scale, and results in their reverse supply chains and how an expert partner can deliver this.

Survey Overview

• Nearly 150 Respondents• 20 Questions• All Major Industries Represented

Leading organizations desire providers that maximize total value across their reverse

supply chains by providing superior

service, scale, and results


Superior Service“Service” may sound vague, but leading organizations have specific ideas of what superior service entails in the reverse supply chain. To deliver truly remarkable service, surplus asset management providers must offer high levels of partnership, expertise, and oversight that empower clients to make informed, sustainable decisions and mitigate risks across their reverse supply chains.

Partnership Ability

An expert surplus asset partner delivers intelligent, high-impact solutions by leveraging its knowledge, consultative ability, and flexibility. Leading organizations highly value all three of these traits in a partner.

90% of our survey respondents value a provider with knowledge and expertise in the reverse supply chain. Since the reverse supply chain is a non-core function, your organization needs a partner that’s professional, experienced, and has a history of client success. Look for a provider that taps its perspective and knowledge of industry best practices to build and manage a high-impact surplus asset program.

Organizations also appreciate consultative service – 82% of professionals find this trait important in a provider. The reverse supply chain is less predictable and more complex than the forward supply chain. Organizations need providers that understand their business and work closely with them to solve their toughest surplus asset challenges. Seek a partner with dedicated, experienced client teams that provide consultative service across your reverse supply chain. And look for a provider that’s in it for the long haul, interested in forging a long-term strategic partnership rather than making a quick sale.

Leading organizations also desire partners that customize programs to their specific needs (nearly 80% of respondents deemed this important). Every client’s reverse supply chain is different, and a “one size fits all” approach is not usually effective. Make sure your provider works closely with you from the start to develop a tailored program aligned with your industry, asset mix, and strategic goals. Your provider should also have the experience and capabilities necessary to execute a customized approach.

of our survey respondents value

a provider with knowledge and

expertise in the reverse supply chain

of professionals value partners that provide consultative service


Risk Mitigation

Another critical element of service is a provider’s ability to mitigate risks and address compliance issues in the reverse supply chain. 70% of survey respondents deemed this important, and 19% even said it was their top challenge when managing surplus.

If handled without expert compliance support, the reverse supply chain is fraught with potential risk. For instance, many countries have laws restricting sales within specific asset categories or to certain countries, individuals, and entities. Sensitive assets such as electronics must be wiped before being sold. And illicit buyers – including ex-convicts or known terrorists – must be carefully screened out to ensure they don’t purchase your surplus.

Look for a partner that provides a full suite of compliance services to protect your business and reputation from all risks associated with managing, valuing, and selling surplus. An expert provider will use proven, industry-standard data wiping processes to ensure your surplus assets are never sold containing confidential information. It will also provide buyer vetting services to make sure your assets aren’t sold to the wrong buyers. Moreover, your partner’s buyer agreements should adhere to all applicable export controls and economic sanctions regulations, ensuring your surplus will be sold in compliance with all international laws.

of our respondents want providers to miitigate risks and

address compliance issues in the reverse

supply chain


Sustainability Support

Sustainability is a priority for organizations, and forward-thinking enterprises are implementing sustainability initiatives that reduce energy use, emissions, and waste. Yet many survey respondents feel their providers aren’t measuring up in this area, as 45% are neutral or not confident about their provider’s ability to support sustainability practices.

A well-managed reverse supply chain is sustainable by definition, since it entails getting the maximum use out of assets and inventory rather than disposing of them. Your partner should support your sustainability efforts by maximizing the use of surplus through efficient one-touch or low-touch resale and redeployment. Also make sure your partner is committed to environmentally-friendly disposal of unsold surplus, diverting this material from landfills and helping to protect our planet.

of organizations are neutral or not confident about their provider’s

ability to support sustainability practices

Your partner should support your sustainability efforts by maximizing the use of surplus through efficient one-touch or low-touch resale and redeployment


Organizations are challenged to establish global standards and best practices across their surplus asset management programs

Superior ScaleLeading organizations have complex reverse supply chains, with large quantities of surplus across a wide range of categories and conditions, scattered throughout locations worldwide. These same organizations have varied and frequently changing surplus asset management needs, from one-time facility closures and liquidations to ongoing, comprehensive partnerships. To meet these challenges, organizations seek a provider with comprehensive, flexible solutions that simplify their responsibilities and address their needs at scale.

Global Standards

One of our survey respondents’ biggest challenges is establishing global standards and best practices across their surplus asset management programs. With multiple locations worldwide, how do you manage the complex array of surplus across these facilities in an efficient, standardized way?

Global standards for surplus asset management, aligned with industry best practices, will simplify and streamline your global reverse supply chain, driving efficiency and effectiveness. Look for a provider with the knowledge required to develop a global surplus program, as well as the reach and partnership capabilities to implement it. An effective program will maximize value across your reverse supply chain worldwide and easily scale as your business continues to grow.

A program that can scale up or down is especially valuable for organizations with international locations. With the economies of developing countries growing exponentially, your surplus programs in these locations may need to expand accordingly. As your business becomes increasingly global, it’s also vital to partner with a provider that can tap into a global buyer base to sell your surplus anywhere in the world.


Complete Services

Organizations value a provider that can handle the entire reverse supply chain, not just part of it. 44% of our survey respondents would like their vendor to provide a comprehensive suite of solutions, while 69% value a provider that offers a wide range of sales options.

While many providers offer niche or component solutions that require clients to partner with multiple vendors for complete coverage, a worthy provider will offer a full-service solution, tailored to business requirements in any industry. Look for a provider that not only sells your surplus, but also enables global asset management through innovative software and standardized programs, empowers strategic decision-making through valuation services, and ensures your business adheres to all reverse supply chain regulations through expert compliance services. A full-service provider will handle all aspects of the sale of surplus, from merchandising to warehousing, shipping, and payment processing.

of organizations would like their vendor to provide a comprehensive suite of solutions

of organizations value a provider that offers a wide range of sales options

Reverse supply chain and investment recovery professionals also understand that a wide range of sales and marketing methods is strongly correlated with high recovery. The more ways your surplus is promoted, the more bids it will attract, driving your recovery higher. Look for a partner that leverages multiple marketing and sales strategies, from direct sales to email marketing and social media, to maximize visibility and recovery for your surplus assets or inventory.

Comprehensive Coverage

Most leading organizations have a complex mix of surplus across a wide range of categories, volumes, and conditions. Our survey found that organizations value providers that can manage, value, and sell all of this surplus, not just a portion.

Look for a provider with the scale and experience necessary to handle all surplus regardless of amount, condition, and location. Ideally, your provider will have experience handling a wide range of asset categories and conditions. It should also have the global reach and buyer base required to manage surplus across all worldwide locations. By handling all of your surplus, an expert provider will simplify your reverse supply chain, freeing up time and resources for you to focus on core business.

Organizations value providers that can manage, value, and sell all of this surplus, not just a portion


Superior ResultsLeading organizations desire a reverse supply chain provider that generates results. Exactly what kinds of results are they seeking? Not surprisingly, they want maximum recovery for their surplus. But they value other returns on investment as well, such as the efficiency gained from process improvements in their reverse supply chains. And they want to continually measure the effectiveness of their programs to track and promote the achievement of superior outcomes.

Maximum Recovery

Our respondents’ top challenge in the reverse supply chain is achieving appropriate recovery. High recovery isn’t the only thing that organizations value, but a provider must deliver it to be competitive. Look for a partner with a proven track record of “making a market” for client surplus by selling low-value, specialized, or obsolete items for recovery above expectations. A superior provider will leverage proven multichannel marketing and sales strategies and a vast, global buyer base to maximize recovery for your surplus anywhere in the world.

Measurable Results

Leading organizations need to measure their surplus programs’ performance and make informed decisions based on this information. 73% of respondents said they valued this trait in a reverse supply chain vendor, while 36% called it a challenge. A trusted partner will work closely with you to define success metrics and build a program designed to meet them. Make sure your partner will support these efforts by providing detailed, transparent reporting throughout your program, customized to your preferences. For example, post-sale a provider should quantify performance results for you, including marketing campaign statistics, ad views, page visits, and bidder demographics.

Also make sure that your provider has a proven track record of achieving quantifiable results. Ask your prospective provider for success stories demonstrating how it has measurably optimized clients’ reverse supply chains.

The top reverse supply chain challenge of leading organizations is achieving appropriate recovery

Leading organizations value the ability to

measure their surplus programs’ performance

and make informed decisions based on this

information


Organizations want their reverse supply chains to operate like the rest of their business: smoothly and efficiently

Enhanced Productivity and Processes

25% of our survey respondents stated it was a challenge to achieve process and productivity improvements across their reverse supply chains. Organizations want their reverse supply chains to operate like the rest of their business: smoothly and efficiently. To achieve this, look for a partner that abides by industry-leading quality standards, such as Six Sigma, R2, and certified product refurbishment. A professional provider should also commit to continuous improvement that benefits its clients. Superior providers understand that the reverse supply chain is an ever-changing industry and frequently enhance their processes, strategies, and buyer base to ensure maximum performance for clients.

Providers can also enhance reverse supply chain productivity through technology, which is why 71% of professionals value partners that invest in technology innovation. Look for a provider that makes strategic investments in new technologies to continually improve its surplus programs.


ConclusionYour organization’s surplus isn’t a burden – it’s an opportunity to add tremendous value and fuel achievement of key business goals. Since surplus asset management is a non-core business function, the easiest path to optimizing your reverse supply chain is through partnering with the right provider.

Leading organizations across virtually every industry with surplus are clear about what they value in a surplus asset management provider. They desire a partner that can provide superior levels of service required to achieve high-performance results. They want their partner to deliver solutions that simplify their responsibilities and address their needs at scale. And they seek to rely on proven providers who can deliver long-term value and follow through on their assurances of expertise and ability. A partner that delivers in all three areas – by providing superior service, scale, and results – will maximize value across your reverse supply chain, ensuring your asset management program is as effective and efficient as your primary business.

About Liquidity ServicesEvery organization has surplus – assets or inventory no longer required. Liquidity Services (NASDAQ: LQDT) works with clients to ensure surplus is intelligently transformed from a burden into a liquid opportunity that fuels the achievement of strategic goals. Our superior service, unmatched scale, and ability to deliver results enable us to forge trusted, long-term relationships with over 8,000 clients, including Fortune 1000 and Global 500 organizations as well as government agencies. With over $1 billion in annual sales proceeds and nearly 3 million buyers in almost 200 countries and territories, we are the proven market leader in delivering smart surplus solutions. Let us build a better future for your surplus. Visit us at LiquidityServices.com.

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