When the music stops and the asset no longer has value, you will ultimately pay someone to remove the asset. Consider these costs that impact the cost of ownership and decommissioning of the asset:
- Deinstallation costs – mobile asset may just need to be located and unplugged; fixed asset deinstallation is much more complicated
- Physical logistics handling – where to take it before ultimate removal
- Administrative costs to remove from Asset Ledger
- Administrative costs to remove from CMMS
- Liquidation costs to dispose; disposal service, PO costs, removal scheduling, landfill or recycling fees, etc.
- Cost to sell asset, including marketing, bill of sale, removal scheduling, etc.
- Ancillary supplies, disposables, and parts waste
- Maintenance and repairs of negative value asset
- Continuous devaluation of negative value asset while in your possession
- Storage costs while awaiting final disposition
Consider using predictive analytics to plan for the decommissioning of the asset, choosing the time and method that brings the best value to your organization. Consider using data to reduce or eliminate these costs.