Acquion has developed a model to compute an optimal strategy for surplus and assets. This important tool was inspired by our drive to optimise net revenues from surplus and assets.
The model takes a number of parameters into account. Together with our client, we set the values of these parameters:
With the dynamic input these parameters represent, the model computes how long surplus or assets can be kept on stock. We then interpret the outcome and translate it into advice on how to handle surplus or assets so as to optimise net revenues when selling the surplus or asset.
Getting the most out of this model hinges on a proper understanding of its input and output.
The BEM supports the advice on a time frame in which maximum revenue can be expected, given all the input parameters. The most important and distinct parameters are the likelihood and expected sales value. These are provided by Acquion.
We can interpret the output of the model and render advice on any specific mixture of sales strategies. The main sales strategies are bulk sales, auction, scrap, buy-back and Customer to Market (CTM). The advice of a sales strategy is based on maximizing the likelihood of achieving the goals that were determined. We can also implement this strategy for you; see the subject consultancy.
Graphics help visualise the outcome of the models algorithm.
The economic business model
The model has been tested on different projects and has been proven accurate. Acquion has in fact engaged the reputable Technical University of Delft to help develop the model. In our search for ongoing excellence, we are continuously refining the model.