What Goes Around Comes Around
Managing your spare telecommunications and IT assets can save a company millions of dollars in excess inventory costs, repair turn-around, and redeployment opportunity. A well run Asset Management Program can also serve as a key component for a corporate Disaster Recovery Program and Emergency Response turnaround time.
As a result of the terrorist attacks on the World Trade Centers on September 11th, 2001 a major banking institution was left with a loss of over 1000 office telephones. Immediately a temporary office building was established just outside of Manhattan, but the biggest challenge was reestablishing telephone service and getting over 1000 telephones and the related systems to the new location on such a short notice. This banking institution was fortunate enough to have a 3rd Party Service Provider (3PSP) company under contract for asset management, and on the afternoon of 9/11/01 the Emergency Action plan was put into action.
Typical asset management programs are designed to hold a corporation’s telephone and IT spare assets in a centralized location. All the corporate offices nationwide are given real-time web-based password access to their inventory, and a guaranteed next day delivery if a spare is needed. This win-win-win allows the corporation to have a significant spare inventory reduction, the broken unit is replaced with a repaired unit, and the excess inventories are sold into the secondary market and revenue is generated. When corporations build new locations, or close locations, or have an emergency disaster than this inventory is a frugal way to satisfy the need.
On Wednesday September 12th the first 400 telephones were tested and same day shipped to the new location in New York, and on Thursday September 13th the 3PSP had the remainder delivered. The entire system was installed and ready to use on Friday September 14th. In less than 72 hours from the first call 1000 phones were up and running. Wall Street opened for business the next Monday and this was a major factor in the opening of our stock exchange. Other than emergency rescue teams and police the entire city was totally at a standstill and the normal process for ordering, shipping, programming, and even having the quantity available would have taken days to happen.
Corporations that have several office locations throughout the country cannot afford to not have an internal asset management program. Having one spare inventory vs. one in each office building is a waste of space, expense, and handling. The bank in this case study reduced spare inventory value by $1,000,000 during the first year the plan was enacted, and they continue to reap the benefits from this plan.