Finding Value Through Parts Harvesting
4 Top Reasons to Utilize the Process of Parts Harvesting
Harvesting parts from IT assets is not new, and the process has been around for years; however, the reasons for utilizing the process have evolved.
> Supply chain challenges
> E-waste reduction
> Infrastructure stability and data security
> Value recovery
Parts Harvesting Can Help Alleviate Supply Chain Challenges
There are many factors that have been adding to the shortage of computer and server parts; since early 2020, when the Covid-19 pandemic began, many governmental, environmental, and demand-driven situations have caused computer part production, transport, and availability to be strained. With so many industries depending on IT components in the manufacturing of their products and in the electronic products themselves. Demand is higher than ever, and there is little relief in sight.
A report released by the U.S. Department of Commerce in January 2022 revealed an alarming shortage of chips; demand for them was 17 % higher in 2021 than two years prior. According to the U.S. government, median inventory had fallen from 40 days to fewer than five days. Accordingly, the end of the chip shortage in 2022 is not yet in sight.
IT asset managers have been feeling the pain of waiting for new parts while their organization’s IT infrastructure is at risk of becoming broken and feeble. The need for an alternative has become very apparent.
With Sipi’s Parts Harvesting Program, parts that were once only considered to be end-of-life or recyclables have become refurbished parts that can be used as backup components or replacement parts for failing infrastructure. To learn more about our program, complete the form below, and one or our experts will be in touch.
While the best practice has been to recycle end-of-life or end-of-use IT parts as a means to protect the environment and avoid governmental fines for non-compliance, the tables are turning.
It turns out that the most beneficial option for maintaining the environment is to reuse, with recycling being “the last resort.”
Look for other ways to reuse the equipment within your own IT environment, such as a backup for when your newer servers need an update or harvest the parts so that you are ready for the unexpected.
Parts harvesting from your own IT inventory falls right into this idea. However, we know that not all assets can be harvested for reuse, and those assets should be recycled responsibly through a partnership with an e-Stewards or R2 certified ITAD services provider.
Reduce Infrastructure Down Time to Maintain Data Security
Data security is always a major concern for any ITAM. However, data security risks can arise when systems fail or don’t perform up to their intended ability.
For many companies, your server is the heart of your business. It keeps your business running and ensures that all employees stay connected to their applications. If your server crashes, oftentimes, office workflow and productivity crash as well. To prevent a decrease in productivity, you should prepare for system downtime and be ready to make a quick repair when necessary.1
One of the simplest ways to prepare for hardware failure is to keep critical spare parts, such as processors, memory, and hard drives, on hand at your facility. Spare parts are necessary to make a quick repair, and they can help you to minimize downtime, save money, and maintain quality when your server goes down.2
Infrastructure and networking issues are the most common cause of system outages, with server hardware failures close behind, a new report reveals, with 95 percent of organizations globally still facing unexpected downtime: each lasting an average of 117 minutes.
Dave Russell, Vice President, Enterprise Strategy, Veeam, told Computer Business Review: “In the industry, we like to believe that our systems, infrastructure, and networking are becoming more reliable and resilient, but this data shows that the top cause remains our data center equipment.3
Parts Harvesting Information Request
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2 Ways that Parts Harvesting Recovers Value
1.) Remarketing – The global supply chain has been stretched and disrupted like never before, putting a significant burden on shippers, manufacturers, retailers, and consumers.1 Dealing with shortages of so many formerly abundant components has prompted many businesses to shift their focus to reuse.
In truth, surplus asset remarketing is a massively underrated revenue generation opportunity. With a parts harvesting program in place, an organization can transform surplus assets from a logistical problem or storage cost to a new source of working capital. Oftentimes, assets identified as “scrap” are, in fact, sellable.2
The seasoned professionals on our Sipi Sales team work to find the best possible value for your specific devices based on manufacturer and condition. We also leverage our established network of buyers to help you recover as much as possible, as quickly as possible.
2.) Time and Resources – The moment a production server goes down, your business begins to lose money. Your employees can’t complete their work, and your IT department may have to dedicate hours to finding new parts and repairing the system. Additionally, server replacement parts can be expensive, and when you’re forced to buy them in a rush, you will likely pay a heavier price for the expedited service and/or shipping. A spare parts kit allows you to make quick repairs on short notice, which saves you money in both labor and repair costs.3
With a Parts Harvesting program from Sipi, you decide on the parts you want to harvest, and we take care of the rest.
- Perform a physical inventory
- Identify redundant or duplicate data-bearing devices
- Wipe data securely
- Test requested components
- Return kitted components to reuse
- Finalize any financial settlement from remarketing