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White Paper
March 6, 2018

How to Optimize Value Recovery the Right Way

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One of the primary objectives of a successful ITAD program should be to reduce the cost of ownership for your IT assets through optimized value recovery.  This includes resale of functional equipment, component harvesting for reuse, and commodity recovery. A successful ITAD program seeks to recover the residual value of decommissioned IT assets to the extent that it does not expose the organization to unnecessary risk.  Be wary of ITAD partners who could be cutting corners to maximize returns.  Instead, use a partner who possesses the infrastructure and expertise to protect your company by managing your assets properly. Value recovery is an important factor in the ITAD process, but don’t make decisions based solely on dollars and cents.  Consider the following when seeking to recover value from your retired IT assets:

 

Resale vs. Recycling: 

In most cases, resale is more lucrative than recycling. If you’re retiring functional assets, allow your ITAD partner to assess the resale value by providing an inventory list in advance. If there is enough value to perform the necessary resale-prep activities (testing, data erasure, etc.) and still turn a profit, give them the green light. Of course, not all hardware is reusable—and not all reusable hardware can be resold profitably. So, make sure your ITAD partner is also a certified recycler, capable of processing EOL electronics that don’t make the resale cut.

Re-marketing: 

Resale is the primary driver for value recovery so choose an experienced ITAD partner who has expertise in the secondary equipment market. Competent ITAD partners develop multiple resale channels for all hardware categories and keep their fingers on the pulse of the market by analyzing market trends and historical resale data.

Asset Recovery Structure: 

Asset recovery contracts can be structured in a variety of ways, and each has its advantages and disadvantages. For example, a direct purchase offers a quick, hassle-free return on your IT assets. Profit sharing or consignment, on the other hand, often results in a higher return but can take much longer. Work with your ITAD partner to determine which model fits your needs.

Sorting & Storage: 

Sorting your retired assets and storing them in a secure location facilitates a smooth disposition process when it is time to remove them from your facility.

Packaging: 

Handling and packaging your assets carefully prior to shipment improves the likelihood they can be resold for top dollar. Scratches, dings, and dents can greatly reduce the value of your assets or render them completely useless (this is especially true for fragile hardware such as HDDs and LCD monitors). You can package your assets internally, but if your resources are limited, most ITAD partners provide this service as well. Work with your ITAD partner to determine the most appropriate method for packaging.

Timing: 

Resale markets evolve quickly and fluctuate often, so don’t let your assets collect dust in a closet or warehouse. Inform your ITAD partner of inventory as soon as the decision has been made to retire them from service.

Insulate your organization from risk, and optimize value recovery by ensuring that your IT assets are managed properly. Contact ECS for more information, or to implement secure ITAD solutions in your company.

As a leader in IT asset management and end-of-life electronics processing, ECS Refining provides a broad spectrum of solutions that enable OEMs, retailers, enterprises, and e-waste collectors to manage, disposition, and recover value from electronic devices while protecting sensitive data and mitigating downstream liability.