How a Global Automotive Supplier Generates Additional Revenue from the Sale of Surplus Indirect Materials

The Client: 

Our client is a global automotive supplier with over 200 facilities spanning across 30 countries. The organization has been in business for over 90 years and continues to win awards for the company’s innovations and technology. They supply a wide range of products to automakers and the aftermarket including parking systems, lighting systems, air conditioning systems, and much more.

Our Client’s Challenges:

Surplus MRO was taking up valuable operating space

Our client was running out of operating space in their facilities because of an excess of surplus indirect inventory and MRO sitting idle in their storage areas. As a result, they were unable to store new parts and materials needed for ongoing operations. They needed a simple solution that would allow them to quickly and efficiently remove all obsolete and excess inventory to help make room for new materials.

CFO needed to write down inventory levels and recover value

With the large amount of surplus indirect materials sitting in our client’s facilities, their CFO needed to bring inventory levels back down to an acceptable range and recover value to minimize financial impacts to the bottom line. Our client needed a solution that would allow them to recover the highest value possible from the surplus inventory in the shortest possible time frame.

The Solution:

When the client approached us with their requirements, we recommended the Aucto Marketplace to help manage their inventory levels and get one of the highest returns on their surplus materials. The Aucto Marketplace would allow them to quickly sell all their surplus equipment to a network of qualified buyers through an easy-to-use web-based interface that would handle all aspects of the sale. Our client was able to leverage the Aucto Marketplace to group all their surplus MRO into one lot. This helped save the client time and effort by streamlining the sales process.

Our client was impressed with how smooth the process was and how they were able to recognize immediate benefits with the Aucto Marketplace:

  • Multiple bids to ensure the items would sell at the highest price possible
  • Easy coordination with only one buyer for pick up and removal
  • Inventory levels went back to acceptable levels, making room for new materials critical for existing operations
  • Finance was able to quickly recover value from obsolete materials that would’ve otherwise ended up in landfills at additional costs

The Results

14 Days to Complete the Sale

27% of Original Book Value Recovered

Over 250 Assets Sold

100% Sell Through Rate