Sale of Legacy Assets funds $10 million in services and hardware
In 2008, Rincon Technology approached one of their Tier 1 Service Provider clients with an innovative Rincon-designed program that would help the client save money, improve operations, and gain insight into their business. The program includes a full annual inventory audit to determine what assets the company owned, and which assets could be repurposed, retired, recycled, or remarketed to allow the client to use the residual value in their legacy materials to acquire new services and products. In this case, the client opted to take the residual value in the form of trade credits with Rincon for completely cashless transactions. Rincon completes the entire audit, valuation, report, and physical asset management process annually for the client.
Every year, Rincon conducts an inventory audit for the client spanning hundreds of facilities nationwide and involving hundreds of field projects. The result is a report detailing every asset the client owns with recommended actions on each asset. Working closely with the client, Rincon helps reassign repurposable materials within the client’s internal network, assumes physical and financial responsibility for any remarketable assets and ships them to one of their bi-coastal facilities, and environmentally recycles obsolete network elements according to RT standards. Rincon works with client stakeholders in Engineering, Operations, Procurement, Finance, and Environmental Health & Safety to understand their unique stakes in the asset management lifecycle and provide ongoing valuation and education services. Ultimately, the client receives the consignment proceeds Rincon generates through remarketing or recycling efforts as well as the savings associated from expeditiously retiring assets from existing service contracts.
The client has gained more than $10 million in revenue from legacy assets since program inception. This means millions of dollars annually in accrued residual value outside of their current budgeted capital and operational expenditure which they can use to purchase next generation products and services.
About the Program
Rincon has been offering this program since 2008, leveraging its industry experience and intellectual property including proprietary software and other internal tools and utilizing ISO and six sigma methodologies and processes to successfully deliver the program for more than 25 companies. Five of the top ten communications providers in the world are working with Rincon currently. Rincon can tailor and scale the program to meet individual client needs.
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