Reverse logistics come in handy in optimizing the supply chain efficiency and supporting asset recovery processes to assist organizations to meet sustainable goals. While the objective of conventional logistics is to streamline the flow of products from the producer to the consumer, reverse logistics handles the process of inverting that flow to enable the seamless return of products and materials back from the consumer the producer. Reverse logistics involves product recalls, redistribution, product contract returns, value recovery, and warranty recovery. Established manufacturers have developed systems for recycling materials and procedures for disposing products that can’t be reused or recycled.
Benefits of reverse logistics for asset recovery
Reverse logistics has become a discipline that reduces costs, boosts customer experience and adds overall efficiencies. On the other hand, producers have also realized value within returned assets and the advantages of streamlining repair and product reallocation processes. In reverse logistics management procedures, customers are urged to return old models of their computers or phones for refurbishment or recycling rather than dumping them at the local landfill.
Organizations have recognized reverse logistics and started valuing the development of advanced technology processes that support asset recovery in IT hardware. Consumer customization is necessary for environments where product lifecycles for electronics and other IT hardware are considerably shorter, and international service networks are intricate. However, for some companies, the returns management process has been affected by low visibility which contains IT hardware products that need to be restocked, recycled or disposed of appropriately. Traditional logistics service providers have found it challenging to reverse the trend. But, with advancements in technology, companies with credible reverse logistics management strategies have benefited from:
- Cost reduction
- Increased service market share
- Higher achievement of sustainability
- Increased velocity
- Higher retention levels
- Greater customer service
It’s advisable to partner with a company that has an R2 recycling certification and other certifications such as ISO 9001:2015; ISO 14001:2015 and OHSAS 18001:2007, especially in relation to startup tech companies in the data center and telecom industries.
Why asset management is important for your company
It allows your company to keep track of assets. It’s much easier for a company to give an account of the location of its various IT products and tell any alterations that have been done to them. As such, the data collected from asset management solution will go a long way in ensuring that your asset recovery offers better returns.
It helps you to manage assets from different locations almost effortlessly. It’s much easier to create inventory records that are often required by lease financiers and insurers. Also, it’s a more precise way of determining whether your company’s amortization rates are accurate. You will be sure about the accuracy of the company’s financial statements when you conduct regular assessments of all assets.
When certain assets are sold or even scrapped, they’re also removed from your company’s records. The asset recovery process is automatically reflected in your asset management system. Hence, any related assets are written off or sold to a free storage space. Remember, maintenance is an expense that can cut into your business’s profits. Therefore, during the operational life cycle of an asset, you can avoid under or over maintenance to save money.
Asset management will also allow you to understand the full potential of certain assets and how they can be utilized more effectively and productively. Implementation of a risk management plan that guides your company on the potential risks of using and owning certain assets is very crucial. Proper assessment of your company’s assets will ultimately help you identify potential risks and consequently come up with ways of how to avoid them.
Asset management reduces unforeseen incidences such as theft. Accurate accounting will help your company execute the asset recovery process flawlessly and ensure that the company maximizes the returns without losing some items along the way. It’s also important to identify and remove ghost assets that have been recorded incorrectly in your records.
How you can benefit from asset recovery services
If your business has thousands worth of unused computers and networking equipment, you should consider liquidating that inventory for revenue that you can inject back into the business’s growth. Moreover, removal of equipment is conducted efficiently and thoroughly. The asset recovery services will also recycle unwanted computers in the most environmentally-friendly way. Here are reasons why should choose IT asset recovery services:
- Eliminate storage costs
- Avoid recycling costs
- Manage downsizing or employee layoffs
- Upgrade of current infrastructure
- Implement an eco-friendly way of running your business
- Relocate your business to a smaller location
- All manufacturers and makes are often accepted
Sometimes Fortune 1000 companies fail to get reliable asset recovery services for replacing their surplus IT hardware. Furthermore, some of the available service providers fail to clarify that they purchase IT equipment from particular manufacturers. That can be a huge hindrance to a company that has an assortment of IT equipment that has undergone a series of system upgrades. Therefore, it’s prudent to work with a company that accepts all types and brands and a wide range of equipment such as servers, routers, networking components, laptops, and desktops.
IT Xchange is an IT solutions company with operations around the globe, including asset recovery for its customers’ end users, allowing them to sell a useful service to their clients even without their own resources to do so.