Is Your ITAD Strategy Ready for the Future, or Are You Still Chasing Yesterday’s Problems?
Pulse Supply Chain Solutions
Sustaining the global supply chain through custom recycling, remarketing, harvesting, & secure destruction solutions.
Unlocking Market Trends for Smart Asset Recovery Decisions
by Jonathan Krimm | VP - ITAD Business Development
magine trying to time the sale of your car for the highest return while juggling the decision to upgrade to the latest model. Now, apply that to the world of IT asset management, it’s the same game but with far more variables at play. For IT asset managers, determining when to liquidate their assets is not a shot in the dark; it’s a decision informed by understanding market trends, asset lifecycle, and the timing of replacements.
At its core, smart asset recovery decisions hinge on the current and projected market value of the assets. Think of a laptop that is valued at $100 today. The question becomes: what happens to that value 60 days from now? Market depreciation can swiftly erode the worth of these assets, and holding onto them for too long can cost more in lost value than many realize. Timing, therefore, is everything.
Consider a scenario with smartphones (specifically iPhones). Historically, the release of a new iPhone triggers a predictable market response: the value of older models drops by 10-12% compared to the previous year. For organizations looking to upgrade their workforce devices, this creates a critical window for decision-making. Should they sell the current inventory now to maximize returns, or hold off until a better replacement deal arises? Without clarity on market trends, making these calls becomes an exercise in guesswork.
This is where having a trusted partner can make all the difference. Acting as consultants, experts in asset recovery help IT managers navigate these market dynamics. They analyze not just the value of existing assets but also the broader implications of replacement cycles. By providing insights into when prices are likely to peak or dip, these consultants empower organizations to make decisions that align with both their financial goals and operational needs.
In an industry where timing and market awareness can significantly impact bottom lines, the ability to anticipate market trends is a game-changer. IT asset managers who leverage these insights unlock a competitive edge, one where every decision is backed by data, strategy, and a clear understanding of how to balance today’s needs with tomorrow’s opportunities.
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The Hidden Cost of Returns: A Critical Challenge for the Holiday Season??
By Luke Duval, MBA , President, Pulse Supply Chain Solutions
When I recently came across an article detailing economic trends for the upcoming holiday season, my first question was, "What are the projected return rates this year?"?
It’s a fair question, considering the enormous shadow returns cast over the retail and supply chain landscape. To my surprise, the article didn’t mention returns at all, a glaring omission for anyone operating in the logistics space. With consumer habits shifting and credit card debt rising, returns remain an often-overlooked, yet monumental challenge that can’t afford to be ignored.
In 2023, returns in the United States alone were estimated to cost a staggering $743 billion. To put that into perspective, that’s nearly 20% of the total e-commerce sales that year. And these numbers don’t even account for the additional expenses tied to processing and recycling those returns, a burden many companies are ill-prepared to shoulder.??
The holiday season only amplifies this issue. Last year, the return rate for holiday purchases averaged 15.4%, and with consumers increasingly turning to online shopping, that figure is unlikely to shrink. For businesses, this isn’t just a logistical headache; it’s a financial and environmental one. Returns add strain to supply chains, increase carbon footprints, and disrupt the delicate balance of inventory management.
So why isn’t this a bigger part of the conversation? Perhaps it’s because the problem feels intractable. But ignoring it won’t make it go away. Instead, businesses must confront this challenge head-on, rethinking their strategies to minimize returns and optimize reverse logistics.
At Pulse Supply Chain Solutions, we’ve seen firsthand how smarter return policies, better consumer education, and improved forecasting can reduce return rates. Additionally, innovations in technology like AI-driven demand planning and digital twin modeling are helping businesses anticipate and prevent overstock and mismatched purchases.?
But prevention is only part of the equation. Once a return is inevitable, the focus must shift to handling it responsibly. This includes refurbishing and reselling items, recycling materials, and ensuring e-waste doesn’t end up in landfills. These practices aren’t just good for the planet; they’re good for business, unlocking value in what might otherwise be written off as waste.
As we head into another holiday season, I encourage leaders across industries to take a hard look at their approach to returns. It’s not just a cost center, it’s an opportunity to innovate, build stronger customer relationships, and contribute to a more sustainable future. After all, the success of this season shouldn’t just be measured by what we sell, but by how we handle what comes back.??
Insightful take, Jonathan! Timing truly is everything in IT asset recovery. The example of market depreciation around product launches drives home the importance of staying ahead of trends. Having a partner to provide clear guidance and strategy can make all the difference in maximizing returns and aligning with business goals.