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How smarter Asset Management paves the way to improved Sustainability

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As organisations define a role in addressing their own environmental impact, a more sustainable world needs the industrial world to build more sustainable operations, particularly - new ways of working. At Chain AMS we have found that the reality is many assets and materials are not disposed of effectively or worse, aren’t used efficiently, they sit idle. It certainly goes without saying that assets sitting idle aren’t efficient assets!

For large industrials, sustainability has been on the agenda for years, adopting environmentally efficient practices conserves energy, reduces waste, reduces regulatory costs (in some jurisdictions) and attracts new sources of investment (i.e. ESG funds etc.). These efforts create a “doing well by doing good” culture, a culture of which Surplus Asset Management and utilisation play a key role. The most effective organisations (such as those leveraging Lean) have aligned KPIs and OKRs to reduce cost, wastage and boost productivity, all key factors in sustainability.

  • Industrial businesses utilise manufacturing assets and produce assets, both having the potential for significant quantities of waste (both recyclable and non-recyclable – i.e. destined for landfill).
  • In 2019, the World Economic Forum in Davos, Switzerland estimated that only 9% of the world’s economy is circular, controlling assets, inventories and materials from cradle to grave is critical to building a sustainable future.
  • In the asset management world, reuse focuses manufacturing assets that increases utilisation, lessons waste and reduces energy costs. Ultimately by keeping assets in use, redeploying assets (where possible), or selling assets (into the secondary marketplace).

Our experience in managing these programs for some of the most industrialised organisations on the planet gives us the insights and knowledge to assist future customers reduce, reuse and recycle their assets (and knowledge).

Thoughts

To help you get started, I’ve listed 10 ways to help build more sustainable operations through smarter asset management.

If you have any more – feel free to add them in the comments below!

Tips to extend your asset life and reduce material impacts

  1. Leverage condition-based maintenance to keep assets in good, working condition, ensure you keep warranty, any packaged software and service documentation in a safe space.
  2. Monitor work orders via Manufacturing Execution Systems (MES) or use Asset Performance Management (APM) software to understand asset equipment utilisation. Where monitoring surplus inventory, leverage Inventory / Asset Management Systems (such as AssetLink) to understand idle time.
  3. Extend the lifecycle of manufacturing assets by reducing performance issues that drive early replacement (i.e. replace damaged components / accessories that are core to the asset’s capability, maintain appropriate servicing at the correct service intervals).
  4. Proactively schedule maintenance, based on the asset's age, performance and manufacturer recommendations. Increase as appropriate based on the machine’s criticality to your operation.
  5. Ensure that assets are correctly accounted for (i.e. Straight Line vs. Accelerated Depreciation), simulate disposition at intervals to understand impact on disposition against accounting (i.e. Net Book Value). Ensure that standardised processes and effective decision making (Lease vs. Buy) is in place (using systems like LeaseLink).

Tips to reduce the use of harmful pollutants

  1. Reduce the risk of regulatory concerns by tracking Health and Safety (EHS) attributes such as chemicals, PCB contaminants or hazardous components (such as asbestos).
  2. Capture/ track whether assets have CE / UKCA marks.
  3. Reduce the use of chemical lubricants and standardise on less-harsh options that last longer – use quality consumables, capture changes.
  4. Retain detailed data on all recyclable materials used in maintenance, and maintain a disposition plan embedded in asset documentation procedures.
  5. Retain a record of all redeployed, remarketed, or scrapped assets for audit / legal purposes.

By adopting these 10 suggestions (the list is far from exhaustive), you can consider the environmental impact while also creating value for the employees and future asset users. By doing these you also maximise the residual value of your equipment, preserving options to redeploy or remarket in the secondary market whilst also delivering more sustainable operations.

Additional resources for your Lifecycle Equipment Management journey

In addition to Global Equipment Financing, Chain AMS provides a turnkey offering for Global Financing and Surplus Asset Management. With respect to Surplus Asset Management, we provide the people, process and technologies to implement a global surplus program. Our goal being to maximize redeployment, proceeds from sales, and improve asset circularity. The possibility of potential waste and non-compliant sales is eliminated through Chain AMS’ cloud-based software, AssetLink.

Contact us or Schedule time to talk with one of our Global Remarketing Leaders about how you can better capture, redeploy and remarket idle assets, whilst driving improved sustainability and yielding tangible results.

Explore AssetLink and discover how we can create address a number of the tips in this article, with a turnkey solution and the proven approach to scale.

You can also learn more about Chain AMS. Read the original article on LinkedIn.