Full asset lifecycle management is often sourced to multiple vendors. But working with multiple companies for the full asset lifecycle may not be the safest or most efficient way to handle end-of-life assets.
Working with multiple vendors incurs unnecessary costs, often better spent on other initiatives. Multiple vendors also cost valuable time and open-up the opportunity for security breaches.
When it comes to IT asset disposition (ITAD), there’s a cost for everything. You pay for the freight to ship the assets and for the intake of the IT assets from the initial company to sort and decommission your assets.
Sometimes these assets can sit in your warehouse for months on end while you wait to gather up enough items for a full trailer to ship to your second location. While these assets sit, they depreciate in value. If the assets are eligible for remarketing, they can lose up to three percent of their remarketing value for every 30 days.
Once you have enough assets for a trailer, you will once again pay freight – anywhere between $1,000 to $2,000 per trailer, depending on the quantity of equipment and the shipping distance – to ship your e-waste from the decommissioning facility to your destruction facility. Now, your final facility will charge for intake as well as any destruction or remarketing efforts they need to take.
You may make back some of the costs incurred through remarketing your assets, but it may not be enough to cover the total number of charges.
With ITAD, time truly is money.
Managing multiple vendors takes a lot of time and it’s the little things that add up. Multiple phone calls, multiple purchase orders, and multiple vendor inquiries can take a toll on your team’s time. Not to mention that having multiple vendors means managing multiple reports - often in different formats - that need to be reconciled for proper disposition reporting.
Let’s say that working with one vendor for asset lifecycle management takes about 400 hours of your time per year with multiple tasks. Adding in other vendors to help with the process will only multiply the time you spend coordinating with the various providers.
Working with a vendor for procurement, one for decommissioning, one for transportation and one for destruction or remarketing could end up costing you 1200 to 1600 hours of your time each year, not to mention that each touchpoint can increase the potential for security risks.
When you have to move your assets more than once to be destroyed or repurposed, you are creating opportunities for those assets to be intercepted or tampered with. If you are working with one company for decommissioning and storage, that company should more efficiently keep track of all of the assets in their custody. They will know at what stage the asset is in and where it is within their processing chain.
As soon as it ends up on a trailer to move to your destruction or remarketing company, the original company may no longer have any data about these devices and your intended next company might not either.
Your company’s brand or sensitive data could be at-risk depending on where these assets actually end up.
Working with a single provider for asset lifecycle management not only saves your company money and time, but it also ensures that your technology assets are secure with a tight chain of custody. It also helps to move the process along more quickly so that any assets that are able to be salvaged and repurposed can earn back the most dollars. Your retired devices could end up providing income rather than costing you money.
Have you had success with working with a single ITAD provider? Let us know in the comments how much money and/or time you saved.