RFID has key role in Acqsys asset servicing model
Today's challenging economic times are spurring the creation of new innovative business models to help restructure companies' finances and shift assets from company balance sheets to generate capital that can be better utilised within the business.
One new business model that has recently emerged and is now operating across Europe is the streamlining of the servicing process for manufacturers by taking assets off manufacturers' books, releasing working capital and reducing the number of separate, scheduled servicing trips by numerous distributors.
One of the pioneers of this new business model is Reading-based Acqsys, which is now working with leading manufacturers in the food and beverage industry to help them free up that working capital from their assets.
Acqsys is a global asset management solutions organisation servicing asset-intensive customers in the food, beverage and transportation sectors. Its clients typically include large investment grade food and beverage manufacturers and staple food and drinks businesses, including Heineken, Scottish and Newcastle, Danone and Nestle.
As well as releasing capital and asset management, other business benefits accruing from the Acqsys business model are improved sales productivity, better asset traceability, more effectively managed asset lifecycle costs, reduced assets losses, and reduced cost of servicing assets.
Where does RFID come in? Through its partnership with radio frequency identification (RFID) specialist Intellident, Acqsys will put RFID tags on all its assets so that when a manufacturer's salesperson visits the client, he or she can use a PDA to scan the device. This can prevent fraud by accurately recording assets on an asset register while also accurately tracking the maintenance life of the asset for depreciation purposes.
For the food service industry, whose equipment typically encompasses assets such as ice cream refrigerators, coffee machines, vending machines, water coolers, hot and cold beverage machines yoghurt-makers and beer taps, servicing of their assets is an expensive and time-consuming business. For example, for Heineken, the world's third largest brewer, equipment that costs around 100m Euros (£85m) to acquire across Western Europe will cost 50m Euros (£42m) a year to clean and service. That's nearly half the costs again in maintenance after the initial purchase price.
Assets are a complex business and the investment can be very cost intensive. The main driver for a food service company is to find the most effective way of managing an asset operation, and getting the balance right between throughput, payback, and the efficiency of the asset. What a manufacturer is asking itself is, 'Can we place equipment in certain outlets that drives output through them - and what is the most effective way of doing it that drives both traffic and volume?'
Ice cream refrigerators are an ideal example of such assets. On the Iberian Peninsula, there are 100,000 ice cream refrigerators owned manufacturers. Those assets are held on the manufacturers' balance sheets, and serviced by their distributors (or concessionaires) at point-of-sale locations such as cafes, bars, supermarkets or at the beach. These high value assets out in the field are a step removed from the manufacturer, making them notoriously difficult to audit. One ice cream manufacturer who only did an audit every three years found it had fewer assets than it originally thought.
As this business model for the servicing of food service assets comes into its own, you can expect RFID to play a growing role in improving asset management and reducing asset losses.
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