What is an Industrial Consultancy Firm?
An industrial consulting firm is a professional service that offers an expert advice to businesses about their asset valuation, verification, management, tracking, and disposal. With optional asset usage, it adds value to all industry operations including product manufacturing, supply chain, packing, testing, delivery, marketing, and sales.
A consulting firm comprises experts with adequate industrial knowledge and experience. A firm can serve all key private and public sector businesses according to their requirement.
What services do Modern Industrial Consultancy firms Provide?
A consulting firm benefits the industry with these services.
Plant and Machinery Valuation
Plant and Machinery valuation means estimating the market value of all equipment used in manufacturing and distribution of a product. It includes the valuation of fixed assets like machinery, tools, land, inventory, vehicles, etc.
Based on the purpose of valuation, a consultant decides about using the Market, Cost, or Income approach for determining the plant value. A consulting advisor provides a comprehensive financial advisory to solve problems affecting your business.
Once you know the market value of your plant, it helps in insurance, tax, and risk analysis. You can also make informed decisions about plant buying/selling, machinery procurement, useful life, and the upgradation of assets.
Asset Verification
Asset verification means confirming the existence and useful life of assets against the asset inventory checklist. It allows a business to know the actual number, worth, output, useful life, and future worth of its assets. It helps in taking large-scale organizational decisions about retaining, repairing, or replacement of company assets.
The arm of the consulting industry carrying out this task is called management consulting. A management consultant starts by determining the scope of work. The scope identifies which assets should be verified, which aren’t necessary, and which are to be excluded.
After the finalization of scope, the consultant verifies asset documentation including the sale, purchase, operation time, repairs, and current condition. In the end, he performs a physical visit for final verification. After this process, the consultant submits a comprehensive asset verification report before the management.
Asset Register Compilation & Creation
An asset register includes a list of all fixed assets owned by a company. It contains all information about an asset including its purchase date, invoice value, bar code, condition, depreciation value, and useful life. Only an experienced consultancy firm should be trusted for the creation and upgradation of an asset register.
You can use an asset register for the identification and verification of company assets for internal or external audit. It also helps in calculating the monthly and annual depreciation value of an asset.
Technology consulting helps in scheduled maintenance, repair, or disposal of assets. An asset register streamlines necessary information about an asset bringing transparency to asset management and verification.
Asset Register Reconciliation
An asset register reconciliation means overhauling an outdated asset register through rigorous asset verification and reconciliation exercise. Any medium to large business contains a multitude of fixed assets ranging from computers to vehicles and all the way up to manufacturing tools and heavy machinery. All these assets are verified during register reconciliation.
During reconciliation, consultants compares the fixed asset balance sheet against the asset register and determine whether they coincide or not. After that consultants work to restructure the asset register based on available documents and physical inspection.
Asset register reconciliation helps during internal and external auditing. With this exercise from consulting sector, you can determines the current worth of your assets.
Asset Disposal
In the consulting market, asset disposal means the removal of an asset from a company’s financial records. Businesses must dispose of assets that are no longer valuable to them. It usually includes old machinery, technology, vehicles, etc.
A consultant analyzes such assets to make a disposal plan. Based on their current condition and market value, a business decides about trading, recycling, or scrapping that asset. In modern firms, many consultants work as asset disposal specialists. You can hire them for efficient asset disposal with maximum benefit.
Benefits of Industrial Consultancy Firms
Seeking the services of an Industrial consultancy firm can benefit your business the in following ways:
- It determines the real worth of your plant, machinery, and fixed assets.
- It helps in improving the process efficiency and making operations cost-effective with expert advice.
- It assists in aligning strategic policies with a company’s long term vision.
- It provides real-time information about current market conditions and your share in it.
- It helps you establish new policies, products, assets, or services to meet customer needs.
- It optimizes your business performance.
Conclusion
Modern industrial consultancy firms have brought a revolution in business operations and strategies. They provide evidence-based input on the current worth and valuation of a business. For that, they perform a comprehensive audit of the plant, machinery, vehicles, and all other fixed assets. After this audit, you can decide about plant buying/selling, overhauling, recycling, upgradation, or scrapping.
Generally, a business contains thousands of fixed assets. For their accurate valuation, you need the services of a competent and experienced consultancy firm. Land Sterling provides premium industrial consulting services across the UAE. We have a team of RICS-Certified industrial consultants with experience in more than 10,000 projects. Click here for your business valuation or call us at +971 4 380 8707.
