"A higher Reusable Yield not only provides significant financial returns but also offers substantial environmental benefits by reducing electronic waste."

Considering an IT Asset Disposition (ITAD) Request for Proposal (RFP) can be a complex and daunting task. Whether the motivation stems from a need for change, a desire to explore new options, or simply meeting senior management directives, the process involves substantial work and a lack of industry clarity about what will truly be delivered once the marketing gloss fades. However, as the industry evolves, transparency and clarity are improving, making the RFP process more manageable.

The Commoditized Nature of the ITAD Industry

One advantage in today's ITAD industry is its commoditized nature. Most ITAD providers offer similar services at comparable prices, which benefits consumers when considering taking the service out to bid. Despite the significant amount of work involved, this commoditization simplifies the comparison process. To further streamline the process, ensure that responses are provided in a preferred format, tailored to meet specific organizational needs.

10 Common items Requested in an ITAD RFP

1. Data Security Processes

   • Data security and eradication should always be the top priority. Ensure the provider has robust measures in place to protect sensitive information.

2. Data Management Processes

   • Verify that the provider can manage and exchange data attributes as required for successful IT asset disposition.

3. Chain of Custody Processes

   • Internal chain-of-custody practices should extend throughout the ITAD lifecycle to maintain security and integrity.

4. Portals & Engagement Process

   • A user-friendly portal that provides all relevant data is essential for a seamless consumer experience.

5. Logistics & Logistics Pricing

   • Be cautious of "lower pricing" claims associated with insourced fleets. Consider the total package cost, including hidden fees.

6. Services & Service Pricing

   • While services in the industry are largely similar, watch out for tricky wording that could lead to unexpected costs.

7. Remarketing Revenue Split

   • Always negotiate for a higher share of remarketing revenue to maximize returns on disposed assets.

8. Average Sale Price (ASP)

   • Interpret ASP cautiously, as it can have varying implications. A high ASP may not always indicate a favorable outcome.

9. Reference Checks

   • Conduct thorough reference checks, preparing specific questions to test the provider's process, control, and reliability.

10. Service Level Agreements (SLAs)

    • Focus on SLAs that matter most to the organization, as many industry SLAs can be outdated or irrelevant.

Prioritizing IT-Remarketing and Reusable Yield

In addition to the standard RFP criteria, companies should consider IT-Remarketing as a top priority due to its impact on the Reusable Yield ratio. IT-Remarketing involves the resale, redeployment, or donation of IT assets, which maximizes their value and extends their lifecycle. The Reusable Yield ratio measures the proportion of IT assets that are reused compared to the total received. A higher Reusable Yield not only provides significant financial returns but also offers substantial environmental benefits by reducing electronic waste.

In an RFP, candidates should specify their Reusable Yield by asset type for the past three years. Avoid greenwashing by demanding transparency and thorough answers. A higher Reusable Yield indicates a lower financial and environmental footprint, validating the provider's mission and marketing claims.

Conclusion

Issuing an ITAD RFP requires significant effort, but focusing on critical metrics like Reusable Yield and prioritizing IT-Remarketing helps make informed decisions that benefit the organization both financially and environmentally. For expert guidance and comprehensive ITAD solutions, contact KruseCom today.

Call to Action: Ready to optimize the ITAD process? Contact KruseCom to learn how to support IT asset management needs.