Reposted from ITADDAILY
Every now and then we come across an article so relevant to our business that we are compelled to repost it. Here’s a really good one from ITAD Daily.
As in society today, industries are increasingly looking to buy used instead of always buying new. This concept has become popular as people focus on sustainability and extending product lifespans. This same idea is showing up in organizations through ITAD and the disposal methods they choose for devices. Many organizations are looking into refurbishment, instead of just destroying devices at the end of their lifespan. We’re going to explore how refurbished technology is changing the IT market and what this can look like for the future.
What Does Refurbished Really Mean?
Refurbished is essentially reusing a device after it’s been returned, tested, repaired, and restored before it’s resold. This supports a circular economy and sustainability goals, making it a growing interest for many organizations. Refurbishing differs from being sold, used, renewed, or open-box, as each carries different levels of risk, coverage, and testing. The refurbishment process includes steps like inspection and diagnosis, repair, data wiping and sanitization, cosmetic grading, and repackaging.
Why Demand For Refurbished Technology Is Growing
Refurbished technology is becoming a major market for organizations for many reasons, from sustainability to cost savings. Let’s break down why refurbished equipment is becoming a top choice for businesses.
Cost Savings
Organizations that choose to purchase refurbished equipment save money compared to buying brand-new equipment. It’s similar to buying a refurbished device versus a brand-new one. Many organizations choose refurbished equipment simply because it lets them save money without compromising functionality or operations.
Sustainability
In modern times, sustainability is an incredibly important topic, and organizations continually strive to become more sustainable in their operations and practices. Using refurbished equipment allows organizations to make the purchases they need while supporting a circular economy. It supports corporate ESG goals, lowers carbon footprints, and extends device lifecycles.
Supply Chain Support
Global supply chains can face shortages; refurbished devices help bridge the gap. Additionally, it’s a quick option for organizations that need IT devices urgently, without waiting for new devices and launches.
Improved Quality and Reliability
As technology and processes for refurbished IT devices evolve, there are even more reasons to choose them. Stronger warranties and certificates help build buyer trust and reduce anxiety about choosing refurbished devices. Refurbishment in TIAD reduces the stigma many have around used electronic devices and their reliability.
Remote Work Purchases
With the rise in remote work positions over the last few years, we’ve seen an increase in electronic device purchases. Remote work relies heavily on devices to get the job done, and companies often purchase them in bulk. Refurbished options allow organizations to buy necessary equipment, support sustainability, and cut costs at the same time.
Refurbished Electronics Impact on the Broader IT Market
Looking ahead, refurbished devices will have a major impact across many areas of the IT market. Let’s break it down and see which areas will be affected and how.
Business
Consumers
Industry
Saving money on ownership for IT fleets
New strategies for procurement that’ll incorporate refurbished tech
Budget reallocation toward things like software and security
Access to more premium devices at affordable price points
Trust in refurbished marketplaces will grow
A change in purchasing behavior
A push for manufacturers to design for durability and repairability
Secondary markets will become more popular and more of a secondary revenue stream
Potential impact on new device sales
The Future of Refurbished Technology
Looking ahead, we can expect this market to grow rapidly over the next few years, especially as sustainability remains at the forefront for many organizations. Technology is changing rapidly, and our reliance on it is growing. That said, organizations will have a huge impact on the refurbished technology industry as they support a circular economy and longer device lifecycles. Refurbished technology practices will likely spread across industries worldwide, and manufacturers will begin changing their practices to support it.
Common Concerns Around Refurbished Technology
Although refurbishment is becoming more popular and a standard part of end-of-life cycles, some concerns remain. For example, data security concerns can arise, so certified wiping and destruction standards for refurbished devices are essential, especially since they’ll be used by other users. Reliability is another concern, so warranties and return policies provide more protection for the purchase. Software compatibility and support can also be challenges, which can be addressed by ensuring the software used is made for that particular device. Overall, ITAD vendors and refurbishers will work together to devise a plan that outlines proper refurbishment practices that support security and a circular economy.
Preparing For the Future of Refurbished Technology
As an organization that uses IT devices and may be considering refurbished devices and refurbishment processes, it’s important to prepare for how you’ll refurbish your devices and which devices you’ll buy refurbished instead of new. This shift to a reuse-based lifecycle will affect many industries and processes, so finalizing a process that supports refurbished devices is essential. If you’re an organization that uses ITAD practices, we recommend setting up a plan now for your refurbishment process and what it will look like as it becomes a more popular end-of-life method for devices.