As Christmas gets closer, many of us are thinking about what we’d like from old Saint Nick this year and surely on many people’s lists are the newest and shiniest electronic gadgets – smartphones, game consoles, tablets and laptops.
Come New Year, households are likely to find their drawers and shelves are bursting to the brim with a mixture of old, new and obsolete. And in an era where technology is forever being updated and improved, the number of out-of-date devices in our households is fast becoming out of control. Today’s consumers expect to be able to trade-in their used devices and receive cash back. Therefore manufacturers and retailers need to have programmes in place that meet legal, compliance, environmental and logistical requirements.
It was predicted that there would be 7.7 billion mobile devices in use by the end of 2014, 6 million more than the world population and a recent study from MIT predicted that global e-waste rates will jump by a third in the next four years to an annual volume of 65.4 million tons (the weight equivalent of 11 Great Pyramids of Giza). Individuals and companies should be taking an active role in reducing the level of devices being contributed to this waste pile.
Trading up
In the month or so after Christmas, manufacturers and retailers will likely see a large increase in the number of people trading in their old goods now that they have their hands on their brand new gadget. This is why retailers and OEMs need a process that allows their customers to upgrade to the latest products that is also cost effective for them.
Once a product has been traded-in there are two avenues for where it goes next: lifecycle continuation (second-life) or raw material processing (end-of-life).
Keeping it alive
Second life or lifecycle continuation can be achieved by thorough inspection of the used device, testing to check the functionality, data wiping, refurbishing them as necessary and reselling the renewed devices for onward consumption. When recycling devices there are three things that should be taken in to consideration:
Thorough testing: In order to ensure that traded-in products are sold on in the best condition, thorough testing needs to be conducted. Working with a best-in-class testing provider can provide a source of competitive advantage for OEMs and retailers as it can minimise the effect of reselling faulty products and therefore keep a company’s valuable customers happy
Data sanitisation: One factor that can cause retailers, manufacturers and consumers some consternation is the thought that personal information won’t be correctly removed from the device and will then be accessible once it has been sold on. Businesses that process mobile devices such as smartphones and tablets for use as second hand products have a responsibility to the sellers, and buyers of these devices to ensure that the proper security procedures are applied so that personal data is thoroughly and permanently destroyed. It’s not good enough to delete the personal data to only a “basic standard” or worse still, not at all as there is an obligation to comply with data protection laws. One way of doing this, is to ensure that your recycling partners meet recognised industry standards such as the Device Renewal Forum Certification Compliance criteria for Data Sanitisation for mobile devices.
Broad reseller network: A recycling and reselling partner should also have a comprehensive network of reliable channels in which to resell used but functioning products into secondary markets. This will enable retailers and manufacturers to offer a trade-in programme to customers that will save them money and encourage brand loyalty.
When the end is nigh
There comes a time however, when lifecycle continuation is no longer possible or commercially viable. A recycling partner should do its best to prolong the lifespan of your electronics but when necessary, ensure that the products’ materials are recycled responsibly to minimise any negative impact on our environment. Three things to consider when dealing with end-of-life devices:
Maximise raw material reclamation: Controlled electronics recycling should involve selecting and coordinating responsible recycling partners to process scrap materials with the intent of maximising the level of reclamation. Materials that no longer have a useful life in their current form should be identified and sorted into key raw materials to be processed by reputable partners. Wherever possible this should be done in a cost neutral way and always abiding by local laws and regulations.
Work with a partner who has a waste export license: To ensure the recycling process is conducted in an effective and compliant manner, it is crucial to partner with a recycling company who has a license to permanently export waste or at least the ability to work with a partner who can permanently export waste.
Use specialised recyclers: The kind of device being recycled will play a significant part in the type of recycling process to be carried out so it is imperative to ensure that a recycling partner specialises in the recycling that is required.
While Christmas is a time of excitement for those receiving their snazzy new gadget, it can be source of headache for manufacturers and retailers who don’t have in place a process for dealing with customer trade-ins.
Retailers and manufacturers should ensure they work with a recycling partner that will either help them to create a revenue stream via traded-in products and also help them to deal with unusable materials in a socially responsible way.
By taking into consideration the above points it should be possible for any company to provide a cost-effective trade-in programme that encourages customer satisfaction and loyalty.
Xavier Hubert, Solutions Architect EMEA at Teleplan International
