5 Mistakes Companies Make When Selecting an Electronics Destruction
As companies create new proprietary technologies, what happens to the obsolete electronic devices such as defective toys, proprietary technology, defective gadgets, cell phones, and more?
How can you be sure that your obsolete or defective equipment stays off the market?
Companies wanting to protect their brand require that all equipment be securely destroyed. That’s because all enterprises, big or small, are responsible for their bottom line at the end of the day. If proprietary or defective equipment is not handled properly, the company could take a massive financial hit.
One way to ensure the process runs as smoothly as possible is by hiring the right destruction vendor.
To ensure you don’t become another statistic, here are five mistakes companies make when selecting an equipment destruction vendor.
1. Not Understanding the Difference Between Destruction and Recycling
It’s scary that most companies still use these two terms interchangeably. In reality, there is a huge difference between equipment destruction and equipment recycling. As EPA mandates that, If equipment can be reused, this should be explored first. Such items should be put back on the market and sold. If they cannot be resold, their parts need to be reused in any way possible.
Destruction, on the other hand, renders equipment unusable or unsellable – completely taking them off the secondary or resellable markets.
2. Not Using a Serious Vendor Vetting Process
Many companies do not do enough research and due diligence when trying to find a vendor. You should avoid using evaluation criteria that do not place importance on the appropriate factors. So what should you look for? Your criteria needs to rely heavily on a number of factors;
- The needs, requirements, and importance your organization places on protecting its brand.
- Whether the vendor is established with past destruction and government contracts.
- How the vendor will guarantee equipment will not end up back on the market.
3. Choosing the Wrong Method and Level of Destruction
Most companies are simply driven by price (more on that in the next section) and don’t consider the method and level destruction they actually require.
Depending on the level of protection you require, costs to vendor will fluctuate dramatically. As such there are three levels of equipment destruction:
- 1st Level – The physical damaging or scratching of the equipment. This is most likely the cheapest option as there is less actual destruction and labor involved. For example, hitting the outside of a computer with a hammer, damaging the case or breaking the plastic.
- 2nd Level – The equipment is broken down into parts instead of just damaging the outside or breaking the unit. For example, opening up the computer and damaging the hard drive, the optical drive, and other big components so they cannot be reused.
- 3rd Level – Complete destruction of parts so that no parts can be reused. For example, taking a computer apart, breaking the outside case, and damaging and destroying ALL pieces and components such as the memory, processor etc.
It’s important that you understand these destruction levels to ensure you get the services that you need. Because in many cases companies require a level 3 destruction but are only receiving level 1.
Don’t fall into the trap.
4. Being Driven by Price
While you may want to choose a vendor who promises minimal cost of equipment destruction, a lot of companies often make this mistake.
Chances are that low cost vendors say they will destroy equipment without having it end up back on the market, but the reality is they will look to make a profit on eBay or the another market if they can.
So, depending on the destruction requirements, If a vendor’s destruction cost is dramatically lower than others, you might be missing out. Decide how much profit will be lost if your equipment ends up on the gray or black markets, leading to fewer sales of your new product. Sometimes, a more expensive vendor provides more protection for your company’s brand.
5. Minimal Spot Checking and Inspection
Before a vendor commences, you should ensure that they have control systems with clearly-defined criteria of performance and suitable objective indicators. This is something that most managers neglect.
Ask to inspect the vendor’s premises and conduct surprise checks to ensure that the process is up to the required standards.
Improper equipment destruction can be costly to your business. Avoid these common mistakes that are made by the majority of companies requiring disposal of obsolete and recalled inventory, and maximize your profitability long into the future…