Follow These Best Practices to Execute an Asset Consolidation Strategy

Follow These Best Practices to Execute an Asset Consolidation Strategy

Asset Consolidation

In our last post we talked about supply chain consolidation, and we are following the trend in this post with asset consolidation. Every business is at risk of facing closure and once it’s inevitable, building a solid asset consolidation strategy is key. Accepting drastic change is difficult for any business, but if you follow best practices for consolidation and dedicate the right resources, you could save your business significant money.

Sound Reasons for Asset Consolidation
Deciding to build a consolidation strategy should be built upon sound reasons. Most businesses choose to consolidate to improve customer service levels and keep costs down. There are steps which need to be taken prior to an asset consolidation – a detailed analysis of facility space, review of storage methods, inbound product volume, order processing methods, peak product volumes and seasonality.

The new warehouse facility should include the latest technology, automation and design. Considering the process and equipment in the existing facility and what its limitations will be, creating benefits rather than building in obstacles for the future operations.

The Right Expertise
Hiring an experienced team to handle your consolidation is essential. It’s important to have a strong, effective project manager, with the right industry experience to handle the in-depth analysis, design, and implementation for you.

It’s also helpful for the project team to know enough about liquidation of assets, appropriate warehouse storage, transportation, inventory control, customer service, and supply chain management. A project leader should consistently communicate with each of the other team members so it is a smooth transition from beginning to end.

Business leaders should be prepared to be responsible for setting clear expectations, determine communication processes and track the achievement of consolidation goals.

Clear Goals Will Bring Success.
Meeting deadlines will be easier if goals are established up front. It usually takes three to six months to reach productive levels in a new operation and much longer if performance measures are not monitored and acted upon.

Be sure that a realistic consolidation schedule is set and that the team can reach the appropriate date. Schedules should allow for proper set-up of systems and equipment to be installed and tested prior to start-up. An orderly transition plan should also be supported by a detailed contingency plan should there be issues with timing.

When your business is faced with asset consolidation and drastic change, you can be sure to depend on AECI for trustworthy advice and a successful transition of assets. We have years of expertise handling the asset consolidation process for our customers.. Contact us today to learn more about our services. 973-402-8282