Selecting a Technology Asset Disposal Service Provider

Protecting data in the retired assets is a complex issue that goes way beyond data destruction. It encompasses a variety of critical aspects. Based on our own experience and what we have learned from our stringent corporate customers, we have developed the following best practices blueprint for CIOs to select a technology asset disposal service provider.

What is the service provider’s chain-of-custody program?

The chain-of-custody program usually starts before receiving assets at the service provider’s facility. It involves a holistic view of the service provider’s entire receiving, processing and disposal process. The service provider must have detailed procedures and be able to answer these questions and many more.

• If transportation is the responsibility of the service provider, does the service provider have a logistics security program in place?
• What is the service provider’s facility security infrastructure?
• What is the service provider’s receiving procedure? o What is the service provider’s general processing procedure?
• For assets to be remarketed, do they only remarket tested and functional units so as not to violate domestic and international laws and/or certification standards such as Responsible Recycling (R2) and e-Steward?
• For assets to be recycled, do they have a good process in place either via manual demanufacturing or mechanical shredding?

What is the service provider’s procedure in executing a data destruction management program?

This is an extremely important issue whereby companies need to exercise highest due diligence via both paper and on-site audit. The critical areas warranting special focus include:

• Does the service provider perform the data sanitization in a secured area with access control?
• What is their data sanitization procedure?
• Does the service provider also have software and procedures for enterprise data storage units, cellular phones and tablets?
• Does the service provider have a NAID Computer Hard Drive Sanitization and Destruction certification?

For in-depth information, please read “Securing the Back Door on Data Security: Best Practices Blueprint on Technology Asset Disposition for CIOs.”

Best Practices for CIOs on Technology Asset Disposition

Few corporations, financial institutions and federal and state governmental institutions possessing significant consumer information in their systems have implemented proper controls over their technology equipment disposal protocols. They simply designate their purchasing department or a staff member in charge of salvage to handle the disposal process. Their primary concern is cost. They do not comprehend the laws, nor do they ask their recycling service providers key accountability questions about chain-of-custody programs, data destruction processes, certifications and report details. They do not involve their IT management and security officers when performing in-depth, on-site audits during the vendor selection process. Usually, the vendors with the lowest rates or those offering the most recovery value win the business.

The back-end security should involve the same scrutiny as the front-end security. Negligence may lead to millions of dollars in financial penalties, not to mention the negative publicity, loss of customer confidence and the danger of proprietary information falling into the hands of competitors or criminal perpetrators. Many governmental institutions and their contractors may also possess national security information, so any data breach could become a serious Homeland Security issue. The liability issues at stake are significant. These types of worrisome practices warrant the importance of outlining a best practices blueprint for CIOs regarding the management of technology asset disposal, particularly in an area as critical as data security and data destruction.

CIOs should institute comprehensive technology asset policies and procedures, such as:

• Define the pertinent technology assets.
• Develop precise procedures for technology asset retirement and disposal.
• Assign a dedicated manager or team to manage the process.
• Establish criteria for selecting a service provider.
• Clearly define the transfer of liabilities between the asset holder and the asset disposal service provider.

For in-depth information, please read “Securing the Back Door on Data Security: Best Practices Blueprint on Technology Asset Disposition for CIOs.”

Optimize Your ROI Through Effective Reverse Supply Chain Programs

According to a study conducted by Dr. Dale Rogers, Professor of Supply Chain Management of University of Nevada, U.S. companies spent more than $35 billion a year to handle Reverse Supply Chain problems.

Returns can erode 100 percent of the profit margin on the Cost of Goods sold if not managed effectively and efficiently, according to Gartner Group.

Reverse Logistics can have a very positive or negative impact on an OEM’s bottom line. Controlling the costs of returned, excess and obsolete goods can be the single most negative contributor to a corporations bottom line.

Using information technology as the backbone and “nerve center” to enhance Visibility and Velocity is the key concept in achieving optimal ROI in the Reverse Supply Chain arena.

Every Reverse Supply Chain management center should function as a value-add service center that aligns with the OEM’s strategies in maximizing revenues and profits.

For more in-depth information, please read “Strategies to Optimize Return on Investment (ROI) Through Effective Reverse Supply Chain Programs.”

Viable Solutions Are Available For OEMS To Manage Reverse Logistics

Reverse Logistics is a complex issue that OEMs face daily. There are several viable solutions to solve the problems, streamline the operation and ultimately enhance the bottom line.

Reverse Logistics Management is not an easy task. It involves multiple parties and complex tasks. A well-organized and effective Reverse Logistics Program should be a well-integrated system that includes: RMA control, transportation control, facility / equipment configuration, work flow control, information system and communication channel.

Reverse Logistics plays more of a strategic role in the Total Supply Chain Management Process than many people realize. The complexity of tasks and contribution to an OEM or retailer’s bottom line are no less intricate or important than those in the Forward Logistic Process.

For in-depth information, please read “Critical Issues in Establishing a Viable Supply Chain/Reverse Logistic Management Program.”