Smart CFOs save money by renting fast-depreciating assets like IT-equipment, instead of buying them. That was the message of Shane Merriman, Managing Director at InnoVent Rental & Asset Management Solutions. During the CFO South Africa ‘Get Smart’ event of 13 March 2014 in the Saxon Boutique Hotel in Johannesburg, Merriman gave the attending CFOs some fascinating and challenging insights in ways to make money go further.
InnoVent has an impressive list of clients, ranging from iconic brands like Mercedes and SAB Miller, insurers like Discovery and Hollard to accounting firms like PwC and EY. “In the ten years we have been operating, we have never lost a client,” said Merriman.
The MD explained how InnoVent subsidises asset finance. After the agreed term the asset goes back to a refurbishing plant and is re-marketed under the Q-Rent brand. Assets that are redundant for modern businesses are then resold to other markets in South Africa, Zimbabwe, Tanzania and other African markets. Because of this model InnoVent can beat lending rates at banks any time.
Although traditionally companies prefer to own their assets, it doesn't make sense if those depreciate fast. “About 80 percent of the cost is actually incurred after the purchase,” explained Merriman, referring to lack of flexibility, shrinkage, downtime, out of warranty repairs, disposal, storage and admin. Last year CFO South Africa had a great interview with InnoVent-CEO DJ Kumbula, which you can read here.
Another 'Get Smart' Master Class was presented by business analyst Pierre Heistein, who held a riveting presentation about the changes that are affecting the world economy and the labour market in particular. “Access to skills is more important than ownership of skills,” he argued, telling his captive audience that the whole world is now becoming one labour market for professions that require high level knowledge. “Be on the lookout for that virtual workforce,” he said. Read our recent interview with Heistein here.
At the same time a carefully selected group of top CFOs debated balancing finance leadership during a round table, moderated by CFO South Africa director Melle Eijckelhoff. Data mining company Transparent and the South African division of the Association of Chartered Certified Accountants (ACCA) were involved in this conversation, as partners of the event. Marie McCrea, partner at the Centre for Innovative Leadership, later held an interesting presentation on the role and challenges of modern CFOs.
The events of CFO South Africa have grown into a pivotal meeting point for South African CFOs and other finance leaders. The next event will be held on 10 April 2014 on Capital & Finance, register here now.
See pictures of the event here.
Join CFO South Africa as a Platinum or Gold Member (pdf). CFO South Africa invites its members to bimonthly round tables, master classes and networking opportunities. Members attend groundbreaking speeches and high-level presentations by today’s business leaders. Members benefit from unparalleled peer-to-peer consulting. Members are portrayed on CFO.co.za, a comprehensive listing of South Africa’s finance elite. Members are invited to attend the CFO Awards ceremony, the annual landmark event showcasing insights and best practices and celebrating excellence. Join CFO South Africa as a Platinum or Gold Member (pdf).