Managing Surplus Property for Reuse: Options & Getting Started Mark Lennon MRRA, Rockland, ME, May 4, 2016

IRN & Surplus Property History: 2002: First Calls : Recycling; Losing our shirts : Establishing the downstream network : >2,000 projects, >400 clients >70,000,000 pounds shipped Recipients in 53 countries, 28 U.S. states Boston College, 2002

IRN & Surplus Property Disclaimer -- We do not do: Residential furnishings End-of-school-year cleanouts Very small quantities I will talk about these, but they are not my sweet spot

Surplus is an issue for everyone ReplacementRenovationDemolitionConsolidation Day-to-day attrition

1.Internal reuse 2.Resale 3.Local donation 4.National & international disaster relief and economic developmen t

 Internal ebay Items posted to organization-wide network Items posted to organization-wide network Typically no cost to recipient Typically no cost to recipient  Filene’s Basement Warehouse Warehouse with or without electronic posting of new acquisitions Warehouse with or without electronic posting of new acquisitions If stuff doesn’t get picked up, it goes away If stuff doesn’t get picked up, it goes away DANGER !! The Dead-End or Conveyor Belt Warehouse

 Advantages Significant savings in new purchase $$ Significant savings in new purchase $$ The common sense enviro/sustainability solution The common sense enviro/sustainability solution  Disadvantages Requires active, competent management Requires active, competent management Requires active, competent staff Requires active, competent staff Not a complete solution - What to do with the stuff that doesn’t get picked up? Not a complete solution - What to do with the stuff that doesn’t get picked up? Not applicable to major turnover (e.g., renovation, dorm furniture) Not applicable to major turnover (e.g., renovation, dorm furniture)

Example: Bowdoin warehouse/furniture.shtml Example: Arizona State  Active warehouse for internal redeployment  Warehouse open to public  Ebay-like public auctions  Not simple: User IDs, login (internal & public), sophisticated auction, $$ transactions

a) Warehouse; b) Auction / Electronic Sale a) Warehouse Open to public. Regular hours. Open to public. Regular hours.  Advantages Keeps stuff local. Makes some $$ Keeps stuff local. Makes some $$  Disadvantages Space. Time. Marketing. Inventory management. Enterprise management. Handling money. Space. Time. Marketing. Inventory management. Enterprise management. Handling money. Not a complete solution. Not good for large quantities. Not a complete solution. Not good for large quantities. Example: UNC – Chapel Hill

b) Auction / Electronic Sale  Physical Sort & establish lots. Establish schedule. Arrange inspection. Manage auction. Sort & establish lots. Establish schedule. Arrange inspection. Manage auction.  Electronic By lot or single item By lot or single item Create or purchase software or service. Establish lots. Post and manage auctions. Manage pickup or shipment (yuck). Create or purchase software or service. Establish lots. Post and manage auctions. Manage pickup or shipment (yuck).

b) Auction / Electronic Sale (ctd)  Advantages Revenue Revenue Off-the-shelf auction software or service Off-the-shelf auction software or service Mix good with bad to get rid of a lot Mix good with bad to get rid of a lot  Disadvantages Complex: Lots of management & staff time, esp. getting started; transaction costs Complex: Lots of management & staff time, esp. getting started; transaction costs Not a complete solution: What to do with stuff that doesn’t sell? Not a complete solution: What to do with stuff that doesn’t sell? Example:

Maine has hundreds of potential outlets for surplus  Churches, schools, homeless shelters  Habitat for Humanity ReStore, St. Vincent de Paul, Goodwill  Social service organizations (halfway houses, group homes, etc.)

Local Donation (ctd) How to Manage Direct contact: Phone calls, wish lists Direct contact: Phone calls, wish lists and/or website and/or website Periodic ‘open house’ Periodic ‘open house’ Many will offer to pick up from your location Many will offer to pick up from your location

 Advantages Supports local communities & needs Supports local communities & needs Great public relations Great public relations  Disadvantages High maintenance High maintenance Works if one or a few do it, not if all do it Works if one or a few do it, not if all do it Right time, right stuff issues Right time, right stuff issues Reliability issues - Two old guys in a pickup truck Reliability issues - Two old guys in a pickup truck Not a complete solution. Not good for large quantities Not a complete solution. Not good for large quantities

Example: Harvard University services/recycling-waste-management/surplus-distribution  Fenced area set aside for surplus, away from main campus  Weekly ‘open house’ – Nonprofits, schools, etc. can come in and take surplus at no cost  First-come, first-served. Recipients provide labor and transportation.

U.S. & worldwide demand for usable surplus is essentially infinite. Dozens of nonprofits can use surplus for disaster relief & economic development.  Reconstruction after natural disaster  Schools, orphanages  Hospitals, clinics  Villages, slums

Advantages  Few restrictions on material composition and quality Dorm/Residential, Classroom, Office/Administrative, Scientific/Medical, Library, Athletic Dorm/Residential, Classroom, Office/Administrative, Scientific/Medical, Library, Athletic  A complete and one-step solution Disadvantages  Right time, right stuff issues  Not so good for small quantities (full trailers are best)  Complex logistics & scheduling; Neither generators nor nonprofits are set up to do this

Example: IRN  Partnership with >100 U.S. & international nonprofits to match supply with need  Comprehensive project management: Planning, labor, logistics, paperwork, reporting  Quantities: Partial truckloads through multiple containers  Fixed assets and building materials move with surplus

10-Story Dormitory, Corner of Boston Common 110 rooms, 1,300 pieces, dorm + lounge + office One 5’x6’ elevator Three days Implementation  man professional moving crew  8 containers live-loaded; shuttle to warehouse when needed  Issues resolved: Parking; lost drivers

Mark Lennon General Information