Recipe for relocation success: how one kitchen manufacturer maximised ROI through BPI’s strategic asset disposal
The world of manufacturing is characterised by innovation and precision. Nowhere is this more evident than in the kitchen manufacturing industry, where high-quality materials and equipment translate to beautiful and functional additions to the home. But just like any other industry, kitchen manufacturers grapple with the challenge of managing assets throughout their lifecycle.
Here, Henry Spencer, Operations Director at BPI, draws on a recent collaboration to illustrate how partnering with a specialist can ensure a smooth and profitable disposal process.
‘Kitchen manufacturers often have to juggle tight deadlines and complex production lines, and that means holding sufficient stock and machinery profile to fulfil orders. But as technology advances, these assets age and business priorities change, meaning they need to find efficient ways to dispose of unwanted assets.
For some manufacturers, a move to larger or smaller premises presents an opportunity to assess assets within the business, and, where they are no longer required, disposed of in order to generate much needed cashflow.
Our recent project with the UK’s leading kitchen manufacturer exemplifies how BPI’s strategic disposal techniques can streamline relocations and generate additional revenue for clients.
The challenge
The client, known for their top-of-the-line cabinetry and high-end design, was presented with a major opportunity. As part of a business restructuring process, they needed to relocate their entire 30,000 sq ft storage facility. That meant finding a new home for a significant amount of assets, including:
- A huge range of kitchen cabinetry and components
- High-quality raw timber used for cabinet frames and other elements
- Kitchen unit carcasses
- Extensive shelving and racking solutions
- Additional tools, equipment, and miscellaneous items
The challenge was to efficiently dispose of these assets and secure the maximum return on investment by working with an asset disposal specialist. The client didn’t have the resources to dispose of this equipment in-house, and any delays had the potential to disrupt the relocation schedule.
The solution
The manufacturer had a long-standing relationship with BPI, having relied on our expertise for over eight years. This trust and proven track record made us the natural choice to spearhead the process of selling this substantial amount of assets.
We adopted a strategic approach to asset disposal that involved:
- Expert asset valuation: Our team meticulously evaluated each asset, considering its condition, functionality, and current market demand for kitchen components. This ensured fair pricing and maximised potential returns for the client.
- Targeted buyer outreach: A targeted marketing campaign reached potential buyers within the kitchen manufacturing and related industries. This included online advertising, industry publications, and email marketing to our extensive network of qualified buyers seeking top-of-the-line kitchen components.
- Streamlined auction process: We catalogued the entire sale, and conducted a well-organised and efficient online auction, ensuring a smooth experience for both the seller and potential buyers. The project included photographing and writing detailed descriptions for each item, adding them to the user-friendly online bidding platform, and ensuring clear communication with both clients and buyers throughout.
The results
Our strategic approach yielded impressive results for the client:
- Efficient asset disposal: The entire contents of the 30,000 sq ft facility were successfully sold within the designated timeframe. This minimised disruption to the client’s relocation schedule and enabled them to meet important project deadlines without any delays.
- Maximum returns: Our accurate valuations and targeted marketing strategies ensured the assets achieved their fair market value, generating significant financial benefits for the client.
- Focus on logistics: By partnering with BPI, the kitchen manufacturer could focus on the logistics of relocation and planning for their new facility, confident that their unwanted assets were being handled both efficiently and profitably.
Client-centric approach
BPI’s success in asset disposal stems from our comprehensive approach and commitment to fostering long-term partnerships. We pride ourselves on our client-centric approach, working closely with businesses to understand their specific needs and develop customised disposal strategies for a smooth transition.
This helps to build trust and a deeper understanding of our clients’ evolving business needs, which in turn enables us to become a trusted extension of their teams, guiding them on optimal asset disposal timing and maximising value.
Richard Travis, Industrial Specialist at BPI, commented on the successful collaboration, highlighting the longstanding relationship between the two companies:
It’s been a pleasure to work with this client over the past 8 years and we look forward to continuing the partnership. We were thrilled to support them with their latest asset disposal project and help them to clear their facility in preparation for a successful relocation. The quality of the product is always amazing, and we have no trouble finding buyers for their top-of-the-line equipment. This successful auction is a testament both to our longstanding relationship and their commitment to excellence. We’re very happy to have played our part in supporting their growth and continued expansion plans.’
By partnering with BPI Asset Disposal Solutions, companies can navigate complex asset disposal challenges with confidence. Our experience and expertise ensures a seamless process, maximises returns, and frees clients up to focus on what they do best.’
