Refurbished hardware offers a cost-effective and sustainable alternative to buying new hardware while bypassing constrained chip availability and supply chain disruptions, says refurbished information technology (IT) hardware provider Qrent managing executive Kwirirai Rukowo.

“The fastest and most reliable way to respond to constrained chip availability is not to be more cutthroat in competing for new supply, but to unlock the value already embedded in existing technology.”

Refurbished hardware can be “as good as new” in terms of performance and quality, and is readily available, resulting in shorter lead times. It is also typically accessible at up to 50% of the cost of new equipment without compromising functionality.

Beyond cost savings, using refurbished hardware enables organisations to contribute to the circular economy by reducing electronic waste, as well as avoiding the carbon emissions, water use and mineral extraction associated with new hardware manufacturing.

Further, extending the life span of existing equipment helps to reduce the cost of conducting business, consequently enabling businesses to allocate embedded savings towards core activities and working capital. At national level, this approach can also contribute positively to the balance of payments.

Rukowo points out that, during the Covid-19 pandemic, which resulted in disrupted supply chains, refurbished hardware helped organisations to rapidly adapt to remote working at a time when procurement channels were severely constrained.

Currently, a surge in microchip demand, driven by AI data centres, has resulted in microchip shortages that have impacted on several industries.

However, he argues that the global chip shortage is largely a result of rigid procurement strategies, pointing out that the surge in chip demand would not have significantly disrupted access to end-user computing if companies had established more resilient procurement frameworks.

Rukowo asserts that procurement strategies and policies have become outdated, as they were designed for stable, business-as-usual conditions in which organisations would predefine buying cycles and specify exact items or services.

A fundamental mindset shift is required to encourage procurement professionals to restructure their sourcing strategies to formally incorporate circular and secondary market options. A key avenue to achieve this is through organisations' embedding sustainability into their overall business strategies, alongside updating procurement policies to support sustainability goals, he stresses.

“CIOs, CFOs and procurement officers must collaborate with sustainability officers to critically examine existing IT procurement policies and ask difficult questions, such as who genuinely needs the latest technology, and what are the environmental consequences of current IT resourcing practices,” he explains.

Rukowo also calls on government to lead by example by establishing a framework that allows for the adoption of quality refurbished IT hardware to be adopted across public sector departments.

“Elsewhere, we have seen governments championing the cradle-to-cradle concept for the betterment of society, business and the planet,” he says, noting that progressive public sectors are deliberately promoting carbon-neutral products aligned with the UN Sustainable Development Goals.

Traceability
Companies aligning with the European Union Corporate Sustainability Due Diligence Directive, which aims to foster sustainable and responsible corporate behaviour in companies’ operations and across their global value chains, can integrate refurbished hardware, Rukowo assures.

Refurbishment companies occupy a critical role in the IT hardware life cycle and are categorised alongside original-equipment manufacturers, with a requirement to maintain a clearly defined chain of custody.

“Traceability is a requirement throughout the value chain and the responsibility to ensure that equipment is disposed in an environmentally sustainable way cannot be delegated. This has given rise to stricter and stringent requirements in vendor selection throughout the value chain,” he adds.

He notes that Qrent uses asset tracking software to provide full visibility across technology estates.

Through integrated platforms, specifically the Contracts Asset Management Portal and V-Track Asset Management Software, the company ensures end-to-end visibility and asset tracking, from initial procurement to disposal, across smart and non-smart assets.

The platforms support Internet-of-Things-enabled technologies, enabling Qrent to monitor and manage assets running on any operating system, regardless of device type or environment. These capabilities provide a comprehensive audit trail accessible to all relevant stakeholders, including customers.

Qrent also offers flexible integration capabilities and an in-house inventory management module, allowing for the tracking of non-smart assets by consolidating data from multiple sources, including external systems and static inputs, such as spreadsheets, into one unified view.