by Fronetics | Oct 28, 2015 | Blog, Consumer Electronics, Data Security, Data/Analytics, Logistics, Strategy, Supply Chain
When it comes to IT Asset Disposal here are 5 must-ask questions for third-party providers.
When the industry thinks of data breaches it raises the specter of a savvy hacker lurking very far, and yet very close, intermingling with a larger organization of internet criminals, breaking into our technology and gathering most private information: credit card and bank account details, social security numbers, and personal health and income data. The recent breaches at Anthem insurance and the retail giant Target make users worry about the trail they leave when they swipe a card or populate a form with personal information. This is how individuals think identities might be exposed. Individuals often don’t think about what happens when a company retires old servers, computers, printers, copiers, and scanners. What happens to confidential data? This is something businesses must think about.
ITAD
Receipt, processing, destruction and disposal of hardware and software are a necessary and growing business. The Blumberg Advisory Group’s 2014 ITAD Trends Report shows that data security is the number one reason why companies implement an IT asset disposition (ITAD) strategy. News reports highlight examples of sensitive data being found on retired assets, frompersonal photos and information to matters of national security. The costs associated with data breaches and with the improper disposal of IT assets are great. They include financial implications such as penalties, the loss of customer loyalty, and the tarnishing of one’s reputation. To mitigate risk, asset recovery management is critical to companies operating in today’s global supply chain.
According to Transparency Market Research (TMR) as reported inElectronics Purchasing Strategies, ITAD represents an estimated $9.8 billion handling 48 million tons of discontinued or excess technology gear. According to TMR, by 2019 the predicted market will grow to $41 billion made on 141 million tons of used equipment. Concerns about data security have resulted in companies becoming more aware of the need for ITAD and the need to budget for it. In 2014, 87 percent of companies reported having an ITAD budget; 38 percent more than in 2012.
Outsourcing this complex work can be a necessity for many companies who don’t understand the intricacies, regulations, labor and cost of asset disposition. Electronically stored data is subject to stringent HIPAA/HITECH, FACTA, SOX, GLB, and FERPA regulations, complicating responsible disposal. Secure and thorough “wiping” of data is critical, and the environmental impact of retired assets is also a vital concern.
More and more companies, 65 percent of companies larger than 10,000 workers and up to one third of all businesses, are turning to 3rd-party service providers to manage end-of-life assets. The factors seen as most important in selecting a 3rd-party service provider include: adoption of industry-recognized compliance standards (97 percent); a well-documented and enforced chain of custody (95 percent); and high-quality, thorough client reporting (95 percent).
Reduce, Reuse, Recycle
ITAD is expensive and it can be risky. It is, therefore, important to find a 3rd-party service provider who can ensure as much safety and security as possible. Many ITAD companies have a split business model working with upstream partners to collect and process retired material, then turning to downstream partners who are looking to purchase used technology gear. Given this model, your server could be someone else’s server one day. Ensuring proper receipt and processing is critical.
Must-Ask Questions
These are must-ask questions businesses should ask 3rd-party providers before hiring them. Be certain these questions are answered thoroughly and confidently.
1. What is your specialization?
2. Is there uniformity in the process?
3. Who would manage our relationship?
4. How flexible are your operations?
5. What if something goes wrong?
Companies operating in today’s global supply chain need to take the necessary steps to mitigate risk when it comes to asset recovery management.
You may also like:
The importance of Asset Recovery Management in the Global Supply Chain
Content marketing ROI for reverse logistics companies
This article was originally published on Electronics Purchasing Strategies.
by Jennifer Hart Yim | May 18, 2015 | Blog, Logistics, Strategy, Supply Chain
This article is part of a series of articles written by MBA students and graduates from the University of New Hampshire Peter T. Paul College of Business and Economics.
Michael Hickey is a former fifth grade teacher turned business professional. His experience includes content marketing in the IT industry and operations management for United Parcel Service. He will complete his MBA from the University of New Hampshire in 2015. He enjoys long walks along the conveyor belt and Ben and Jerry’s ice cream. He lives with his wife, Betsy, in Dover, New Hampshire and they are expecting their first child in June.
4 questions to ask when determining if a 3PL is right for your company
Third-party logistics, or 3PL, is an industry on the rise thanks to the constant innovations in complementary industries like telecommunications, data analytics, and cloud technologies. To avoid confusion, let’s call 3PL what it is: outsourcing. But it’s not the kind of outsourcing that typically comes to mind when you hear the term. Rather, it’s a specific type of outsourcing related to the operations side of a company in areas like order fulfillment, inventory and warehouse management, or transportation of finished goods. As many companies, and perhaps your competitors, begin to employ some form of 3PL, you may be tempted to follow suit. But before you hand over the keys, consider whether or not 3PL is a good fit for your company by answering these four questions:
Question 1: What are your company’s core values?
Why do you exist as a company? What service or product do you provide that you believe is better than all others like it? And what are the core values that your company adheres to in good times and bad, for better or for worse? Core values make you who you are. They are the DNA of the company. Stonyfield Farm, for example, produces a variety of yogurts from their New Hampshire-based facility. One of their core values is that they use only organic ingredients, sourced from family-owned organic farms in their products. No ifs, ands, or buts. That’s a core value. It won’t change, during either boom or recession. And everything they do as a company must align with that. Your company’s strategic alignment stems from identification of its core values, and each decision you make as a company should work seamlessly with your strategic alignment.
Action step: Identify your core values. If 3PL conflicts with any core values, you should avoid forcing its implementation, even if there are cost savings to be gained.
Question 2: What are your company’s core competencies?
What are the things that your company does well? The Yankee Candle Company’s core competencies lie within their research and development and the chemists they employ. Their specialized skills and olfactory expertise drive the creation of precisely scented candles that make you say, “I know I smell a pumpkin pie, but I can’t find it anywhere!” Their competencies help them stand apart from the competition. You would be remiss to give over your core competency to someone else. If your expertise lies in local delivery and timely service, why outsource it to the guys with the brown trucks?
Action step: Identify your core competencies. If 3PL takes the place of any part of your core competencies, you could be weakening the overall value proposition of your company.
Question 3: Will using a 3PL provider allow you to enhance your core competencies to meet your company’s goals?
The purpose of debating whether or not to employ 3PL providers should not focus so much on reduced costs, which can be one of the foremost benefits, but rather whether or not it can enhance your core competencies and stimulate growth for your company. Is your goal to reach broader markets, but you lack the expertise to make it happen? Perhaps an e-commerce fulfillment provider could help you reach those markets. Do you have an outstanding product, but can only sell it to those within a small radius of your operations? Maybe this would be the appropriate time to call on the guys with the brown trucks.
Action step: Draw parallels between the service you wish to outsource and the goal it will meet.
Question 4: What is the cost to your company?
It’s the question that always needs to be considered. But don’t take this question at face value: we’re not just talking about how choosing a 3PL will affect the bottom line. Of course there will be monetary costs associated with hiring another company, and there is even a tipping point when using a 3PL may be cost ineffective. So after a careful cost/benefit analysis, consider the other costs associated with handing over part of your value chain to a third party:
Time costs: Does outsourcing add lead times or delivery times to orders? Decide whether possible time costs take away from your value proposition, or enable your company to meet larger goals.
Control costs: Are you willing to hand over direct control of part of your value chain to someone else? Keep in mind that it’s possible no one cares about your business quite as much as you do. Can you trust someone else to make the same kind of decisions you would make in respect to your company and its customers?
Reputation costs: What happens if a 3PL provider does not perform as anticipated? Will it put a blemish on your company’s image? If a farm outsources its delivery to a local trucking company, and the refrigeration in the trucks falters and causes food to spoil, will the customer assume that the trucking was bad, or do they just assume that the quality of the produce from the farm is questionable? It takes a long time to build up a reputation, and only a short time to dismantle it. Don’t risk it on a provider you can’t trust.
Action step: Vet your possible 3PL options to see whose values closely align with yours. It may prove to be a critical step in choosing the right provider as opposed to the cheapest one.
Third party logistics provides an avenue for companies to scale to capabilities they may never have had the ability to reach. Expanded consumer markets, faster delivery times, and more efficient inventory management are some of the benefits to be had. But before you get drawn towards the soft glow of higher revenues and wider margins through outsourcing, be careful to make sure that your choice to engage 3PL providers aligns with your company’s strategic plans. And if you do choose to outsource, take your time to find the right provider who can add the most value to your business, not just the least amount of digits on the balance sheet.
by Jennifer Hart Yim | May 18, 2015 | Blog, Logistics, Strategy, Supply Chain
This article is part of a series of articles written by MBA students and graduates from the University of New Hampshire Peter T. Paul College of Business and Economics.
Michael Hickey is a former fifth grade teacher turned business professional. His experience includes content marketing in the IT industry and operations management for United Parcel Service. He will complete his MBA from the University of New Hampshire in 2015. He enjoys long walks along the conveyor belt and Ben and Jerry’s ice cream. He lives with his wife, Betsy, in Dover, New Hampshire and they are expecting their first child in June.
4 questions to ask when determining if a 3PL is right for your company
Third-party logistics, or 3PL, is an industry on the rise thanks to the constant innovations in complementary industries like telecommunications, data analytics, and cloud technologies. To avoid confusion, let’s call 3PL what it is: outsourcing. But it’s not the kind of outsourcing that typically comes to mind when you hear the term. Rather, it’s a specific type of outsourcing related to the operations side of a company in areas like order fulfillment, inventory and warehouse management, or transportation of finished goods. As many companies, and perhaps your competitors, begin to employ some form of 3PL, you may be tempted to follow suit. But before you hand over the keys, consider whether or not 3PL is a good fit for your company by answering these four questions:
Question 1: What are your company’s core values?
Why do you exist as a company? What service or product do you provide that you believe is better than all others like it? And what are the core values that your company adheres to in good times and bad, for better or for worse? Core values make you who you are. They are the DNA of the company. Stonyfield Farm, for example, produces a variety of yogurts from their New Hampshire-based facility. One of their core values is that they use only organic ingredients, sourced from family-owned organic farms in their products. No ifs, ands, or buts. That’s a core value. It won’t change, during either boom or recession. And everything they do as a company must align with that. Your company’s strategic alignment stems from identification of its core values, and each decision you make as a company should work seamlessly with your strategic alignment.
Action step: Identify your core values. If 3PL conflicts with any core values, you should avoid forcing its implementation, even if there are cost savings to be gained.
Question 2: What are your company’s core competencies?
What are the things that your company does well? The Yankee Candle Company’s core competencies lie within their research and development and the chemists they employ. Their specialized skills and olfactory expertise drive the creation of precisely scented candles that make you say, “I know I smell a pumpkin pie, but I can’t find it anywhere!” Their competencies help them stand apart from the competition. You would be remiss to give over your core competency to someone else. If your expertise lies in local delivery and timely service, why outsource it to the guys with the brown trucks?
Action step: Identify your core competencies. If 3PL takes the place of any part of your core competencies, you could be weakening the overall value proposition of your company.
Question 3: Will using a 3PL provider allow you to enhance your core competencies to meet your company’s goals?
The purpose of debating whether or not to employ 3PL providers should not focus so much on reduced costs, which can be one of the foremost benefits, but rather whether or not it can enhance your core competencies and stimulate growth for your company. Is your goal to reach broader markets, but you lack the expertise to make it happen? Perhaps an e-commerce fulfillment provider could help you reach those markets. Do you have an outstanding product, but can only sell it to those within a small radius of your operations? Maybe this would be the appropriate time to call on the guys with the brown trucks.
Action step: Draw parallels between the service you wish to outsource and the goal it will meet.
Question 4: What is the cost to your company?
It’s the question that always needs to be considered. But don’t take this question at face value: we’re not just talking about how choosing a 3PL will affect the bottom line. Of course there will be monetary costs associated with hiring another company, and there is even a tipping point when using a 3PL may be cost ineffective. So after a careful cost/benefit analysis, consider the other costs associated with handing over part of your value chain to a third party:
Time costs: Does outsourcing add lead times or delivery times to orders? Decide whether possible time costs take away from your value proposition, or enable your company to meet larger goals.
Control costs: Are you willing to hand over direct control of part of your value chain to someone else? Keep in mind that it’s possible no one cares about your business quite as much as you do. Can you trust someone else to make the same kind of decisions you would make in respect to your company and its customers?
Reputation costs: What happens if a 3PL provider does not perform as anticipated? Will it put a blemish on your company’s image? If a farm outsources its delivery to a local trucking company, and the refrigeration in the trucks falters and causes food to spoil, will the customer assume that the trucking was bad, or do they just assume that the quality of the produce from the farm is questionable? It takes a long time to build up a reputation, and only a short time to dismantle it. Don’t risk it on a provider you can’t trust.
Action step: Vet your possible 3PL options to see whose values closely align with yours. It may prove to be a critical step in choosing the right provider as opposed to the cheapest one.
Third party logistics provides an avenue for companies to scale to capabilities they may never have had the ability to reach. Expanded consumer markets, faster delivery times, and more efficient inventory management are some of the benefits to be had. But before you get drawn towards the soft glow of higher revenues and wider margins through outsourcing, be careful to make sure that your choice to engage 3PL providers aligns with your company’s strategic plans. And if you do choose to outsource, take your time to find the right provider who can add the most value to your business, not just the least amount of digits on the balance sheet.
by Elizabeth Hines | Jan 21, 2014 | Blog, Logistics, Strategy, Supply Chain
This post was originally published on EBN.
Summer is over, fall has arrived, and winter is right around the corner. As the days grow shorter and colder, don’t let inertia take over. Instead, put your packaging on a diet.
Here are three reasons why a packaging slim down will improve the health of your company’s supply chain and the world:
1. You can save money. By reducing the amount of packing you use for a product and/or by using right-size packaging, you can reduce transportation costs and materials costs.
For example, the packaging used for Apple’s iPhone 5 is 28 percent smaller than the packaging that was used for the original iPhone. The reduction in the size of the packaging translates into being able to fit 60 percent more iPhones on each shipping pallet. Apple points out that this saves the company one 747 flight for every 416,667 units they ship.
Poland Spring provides another example. Poland Spring has reduced the amount of resin that goes into the making of their bottles by a significant amount — from 14.6 grams of resin per bottle in 2005 to 9.2 grams of resin per bottle in 2012. Not only is the bottle 40 percent lighter (read: reduced transportation cost), the company also saves a sizeable amount of money each year in materials. In a recent Slate.com article Kim Jeffery, CEO of Nestle Waters North America (Poland Spring’s parent company), is quoted as saying:
You can’t be a public company and ask shareholders to bear the burden of higher costs just so you can be green. It has to be consistent with creating shareholder value. There needs to be a return on these investments. So, for example, when you use 200 million fewer pounds of resin a year, at 90 cents a pound, that’s a huge savings.
By my calculations, that’s a savings of $180 million annually.
2. It is better for the environment. Putting your packaging on a diet can reduce the amount of waste, CO2 emissions, deforestation, water use, water contamination, and hazardous material use.
In a September 2013 Packaging Digest article, Ron Sasine, senior director of packaging for private brands for Walmart, wrote that as a result of the company’s efforts to reduce packaging it was “able to reduce the overall greenhouse gas impact of our packaging by an average of 9.8 percent in our Walmart U.S. stores, 9.1 percent in our Sam’s Clubs in the U.S. and 16 percent in our Walmart Canada stores.”
3. It makes your customers happy. A 2012 survey conducted by Packaging World and DuPont Packaging & Industrial Polymers found that the primary focus of the packaging world over the next 10 years will shift from cost to sustainability. Specifically, the report found that 45 percent of those surveyed believe that perceived “greenness” will be important to consumers.
Additionally, a 2012 study released by Perception Research Services reported that in 2011 significantly more shoppers were more likely to choose environmentally friendly packaging than in 2010 (36 percent versus 28 percent), and that half of shoppers surveyed were willing to pay for environmentally friendly packaging.
Tell us your thoughts on packaging trends in the electronics industry. What’s important to you and your customers?
by Elizabeth Hines | Jan 21, 2014 | Blog, Logistics, Strategy, Supply Chain
This post was originally published on EBN.
Summer is over, fall has arrived, and winter is right around the corner. As the days grow shorter and colder, don’t let inertia take over. Instead, put your packaging on a diet.
Here are three reasons why a packaging slim down will improve the health of your company’s supply chain and the world:
1. You can save money. By reducing the amount of packing you use for a product and/or by using right-size packaging, you can reduce transportation costs and materials costs.
For example, the packaging used for Apple’s iPhone 5 is 28 percent smaller than the packaging that was used for the original iPhone. The reduction in the size of the packaging translates into being able to fit 60 percent more iPhones on each shipping pallet. Apple points out that this saves the company one 747 flight for every 416,667 units they ship.
Poland Spring provides another example. Poland Spring has reduced the amount of resin that goes into the making of their bottles by a significant amount — from 14.6 grams of resin per bottle in 2005 to 9.2 grams of resin per bottle in 2012. Not only is the bottle 40 percent lighter (read: reduced transportation cost), the company also saves a sizeable amount of money each year in materials. In a recent Slate.com article Kim Jeffery, CEO of Nestle Waters North America (Poland Spring’s parent company), is quoted as saying:
You can’t be a public company and ask shareholders to bear the burden of higher costs just so you can be green. It has to be consistent with creating shareholder value. There needs to be a return on these investments. So, for example, when you use 200 million fewer pounds of resin a year, at 90 cents a pound, that’s a huge savings.
By my calculations, that’s a savings of $180 million annually.
2. It is better for the environment. Putting your packaging on a diet can reduce the amount of waste, CO2 emissions, deforestation, water use, water contamination, and hazardous material use.
In a September 2013 Packaging Digest article, Ron Sasine, senior director of packaging for private brands for Walmart, wrote that as a result of the company’s efforts to reduce packaging it was “able to reduce the overall greenhouse gas impact of our packaging by an average of 9.8 percent in our Walmart U.S. stores, 9.1 percent in our Sam’s Clubs in the U.S. and 16 percent in our Walmart Canada stores.”
3. It makes your customers happy. A 2012 survey conducted by Packaging World and DuPont Packaging & Industrial Polymers found that the primary focus of the packaging world over the next 10 years will shift from cost to sustainability. Specifically, the report found that 45 percent of those surveyed believe that perceived “greenness” will be important to consumers.
Additionally, a 2012 study released by Perception Research Services reported that in 2011 significantly more shoppers were more likely to choose environmentally friendly packaging than in 2010 (36 percent versus 28 percent), and that half of shoppers surveyed were willing to pay for environmentally friendly packaging.
Tell us your thoughts on packaging trends in the electronics industry. What’s important to you and your customers?
