Johannesburg, 09 Apr 2025
Procurement and disposal of IT assets should be seen as two sides of the same coin, yet many organisations incur unnecessary risk and additional costs by not closing the procurement-disposal gap.
This is according to David Buck, General Manager at InnoVent Rental and Asset Management Solutions.
“There should be a correlation between IT procurement and asset disposal, but in many organisations, there is a disconnect between the two. When procurement happens in isolation from disposal, the circular economy is broken, there are expenditures that aren’t governed, and there are potentially serious data privacy and compliance risks. When the left hand doesn't know what the right hand is doing, there’s a great deal of wastage and potential risk,” he says.
Buck elaborates: “In a capex-based approach, procurement moves forward and purchases the required devices. When they reach the end of life, the ideal disposal process to follow is an off-boarding procedure.
Data is removed according to the correct procedures governed to protect company information, the devices are disposed of in an eco or sustainable manner, and compliance certificates for data erasure should be obtained. The devices might also be re-cannibalised, used for parts, sold back to staff or donated as part of a CSI initiative.”
In practice, this doesn't always happen, he says.
The key question would be – are there gaps in your procurement and disposal processes that create more risk, costs and wastage that are not being addressed?
“In areas where misalignment exists, what often ends up happening is that broken or obsolete devices get replaced with new ones, then packed away in a storeroom, and at the end of the day, companies that focus on disposal will come in, make an offer on them and dispose of them – but this is not an efficient process.
Also, the business is still open to risks related to the data on those devices, which could be accessed or stolen.”
Buck notes that an opex and leasing model, supported by best practice asset management, addresses the costs, waste and environmental impacts of flawed processes. This approach allows you to understand or see both sides of the coin.
“Best practice, opex and leasing models highlight the correlation between procurement and asset disposal that de-risks the process and makes it more sustainable,” he says.
“InnoVent’s leasing model harnesses data-driven insights to help organisations make smart IT asset life cycle decisions. This enables more predictable financial planning and helps organisations optimise their budgets. Our process reduces risk, supports governance and compliance and enables a circular economy. We unlock smarter IT procurement through advanced asset management that links directly to the disposal process,” he concludes.
If IT procurement and asset disposal are not aligned, or there is uncertainty or perceived wastage – intentionally considering an opex model might be the next best step.
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