Idle Assets Program Development

Lear Corporation was interested in developing the implementation plan to identify, inventory, source and liquidate all of the idle assets within there manufacturing facilities. Lear is a $19B first tier automotive supplier of seats and interior systems. They have 295 manufacturing facilities worldwide. 40% of their manufacturing facilities are domestic to the United States with the remainder of their production performed abroad.

The objective of this assignment was to develop the program that could be deployed to sell un-used equipment and generate free cashflow. In the development of the program, we surveyed 6 facilities and built the tools, templates, communication processes and the IT platforms to rollout across their global portfolio. This effort involved site auditing, sales channel development, logistics planning and asset tracking to ensure payment and removal from financial systems.

The estimated value of the program exceeded $10M in equipment sales. In working with scrap metal vendors, equipment brokers, auctioneers, commerce site hosts and direct owners, we developed a clearing-house platform that reviewed all identified equipment on a weekly basis to assess the value and the best method to market. In that process, all equipment was added to a tracking system that categorized by location, equipment type, selecting disposition strategy and operating division. This allowed stakeholders for a variety of perspectives to stay abreast of the status of equipment and the current inventory. The program is now in deployment lead by a Lear program manager and is expected to be the ongoing platform to track and manage all un utilized production equipment.

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