Explains that assets are costly to obtain and expensive to maintain and must be financed. The aim is to ensure that all assets are 'earning their keep'.

 

To demonstrate the impact of using assets effectively in the overall mix of financial or profit levers that can be 'pulled'

 

1. Reviewing current assets

2. Measuring current return on assets and turnover

3. Calculating cost of owning the assets

4. Reducing the cost of holding assets

5. Determining which assets we could do without

6. Leasing assets

7. Rationalizing assets

8. Speeding up the operating cycle

9.Measuring ROI

10. Benchmarking new asset situation

11. Setting up an ongoing review process