Home » The hidden costs of incomplete ITAD: What businesses need to know about e-Waste disposal

The hidden costs of incomplete ITAD: What businesses need to know about e-Waste disposal

by Ryan Birkenbach, ITAD Manager at Desco Electronic Recyclers

by Kaylee Townsend

IT Asset Disposition (ITAD) providers are often hailed as the saviours of compliance and secure asset disposal. However, while these providers promise a streamlined process for high-value IT assets, a critical question remains: what happens to the waste they don’t take?

Ryan Birkenbach, ITAD Manager at Desco Electronic Recyclers

For businesses, incomplete ITAD services can lead to a host of unseen costs and risks – especially when dealing with leftover infrastructure, bulky e-waste, and fragmented disposal services.

The pitfalls of standard ITAD approaches

Many ITAD companies operate on a model that selectively collects high-value IT assets, such as computers, mobile devices and laptops, while leaving behind low-value, bulky, or complex e-waste. This selective approach may seem cost-effective at first glance, but it forces businesses to seek out additional disposal services to manage the remaining waste.

The consequences? Increased logistics costs, an administrative burden and an inevitable escalation in the total cost of IT asset disposition.

Business risks of incomplete e-waste solutions

Incomplete ITAD services carry significant risks that extend far beyond mere financial inconvenience:

  • Regulatory risks: Improper disposal of leftover e-waste can result in compliance failures, exposing businesses to potential fines and legal complications.
  • Security risks: When data-bearing devices are left behind, the risk of data breaches skyrockets, putting sensitive information at risk.
  • Environmental impact: Inadequately processed e-waste can contribute to pollution and harm a company’s Environmental, Social, and Governance (ESG) profile, potentially leading to reputational damage.

The case for a unified ITAD approach

A unified ITAD strategy that integrates both high-value IT asset recovery and comprehensive e-waste collection can simplify compliance and reduce risk. Partnering with a single provider that offers an end-to-end solution delivers several key advantages.

A streamlined collection process consolidates e-waste and high-value items, minimising the complexity and fragmentation of disposal efforts. Financial efficiency is enhanced through quick payments for resellable IT assets while also offsetting high disposal costs, ultimately improving the bottom line.

Additionally, certified data destruction, backed by full audit trails and detailed disposal documentation, ensures secure data handling and mitigates the risk of breaches and compliance violations.

A commitment to comprehensive ITAD

Desco Electronic Recyclers sets itself apart from traditional ITAD providers with its comprehensive approach, ensuring that no e-waste is left behind. Its commitment to excellence is reflected in industry-leading certifications, including ISO 14001, 9001, and 45001, which uphold the highest standards in environmental management, quality management, and occupational health and safety.

Comprehensive disposal certificates for both recycling and reuse guarantee that every asset is properly documented. Additionally, the recycler offers secure data destruction and erasure services with full audit trails, protecting sensitive information throughout the disposal process.

With an end-to-end service model, Desco eliminates the challenges of leftover e-waste, providing a seamless solution from collection to final disposition.

A real-world use case: Tackling tape destruction

Consider a recent ITAD project Desco executed for a large auditing firm. The project involved the destruction of over 4,000 LTO tape cartridges – a notoriously challenging task. Tape destruction is particularly costly, typically running around R100 per tape, due to the heavy strain it places on plant machinery and the absence of valuable recoverable materials.

The process is further complicated by the fact that these tapes frequently jam conveyors, belts, and shredders, making them one of the hardest IT assets to process.

However, the auditing firm also provided 400+ laptops and 10 servers as part of the project. This enabled Desco to offset the expensive tape destruction costs significantly. Key highlights of the project included:

  • Discounted destruction fees: Desco applied a large discount on the destruction fees while still offering market value for the laptops.
  • Substantial payment: Upon completion, Desco paid the firm a considerable sum of R160K (excl. VAT) after deducting the disposal and destruction costs.
  • Cost-effective solution: Had the company sold their high-value assets to another ITAD provider and only contracted Desco for tape destruction, they would have faced full-price charges and likely incurred additional costs for the final disposal.

In conclusion, the hidden costs of incomplete ITAD services are far-reaching, encompassing regulatory, security, and environmental risks, as well as unexpected financial burdens. Businesses must look beyond the promise of selective asset collection and demand a holistic, certified ITAD solution that covers every facet of e-waste disposal.

With comprehensive solutions like those offered by Desco, companies can safeguard their assets, protect their data, and ensure full compliance – eliminating the unseen costs that can derail even the best-laid IT plans.

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