In today’s rapidly evolving digital landscape, procurement teams are grappling with the dual pressures of controlling costs and minimising environmental impact. The proliferation of mobile tech to support workplace productivity has led to a sharp increase in the purchase of electronic devices and, consequently, e-waste.
In fact, according to our research, three-quarters of businesses have increased their IT spend per employee since the pandemic. This suggests that either new devices are becoming more expensive, or businesses are simply buying more. Most likely it’s a combination of both.
Alarmingly, the global rate of e-waste collection and recycling isn’t keeping pace with this growth. Data from Statista shows that, while e-waste generation nearly doubled between 2010 and 2022, the amount collected for recycling only grew by 70 percent in the same period.
The actual amount of e-waste produced each year is truly staggering. According to the UN, the world produced 61.3 million tonnes of e-waste in 2023 — an average of 8 kg per person. Yet only 17.4% (10.7 million tonnes) was documented as properly collected and recycled. In the UK, only 17% of businesses are repurposing devices that haven’t reached the end of their useful life. At the same time, a quarter of companies update their employee devices every 12-18 months. This is despite many devices having a functional and secure lifespan of much longer than this.
These statistics underscore the urgent need for more innovative and sustainable procurement solutions. By adopting a circular procurement model and investing in high-quality, refurbished technology, UK businesses can significantly reduce e-waste and cut costs.
This approach supports the triple bottom line: profit, people, and the planet.
Maximising value, reducing emissions
The financial advantages of refurbished tech are compelling. Businesses can save up to 70% compared to purchasing new devices, allowing them to allocate resources to other critical areas. For small businesses, these savings can be channelled into key growth sectors such as marketing, training, or hiring new staff. Medium to large-sized companies can leverage these savings to expand operations without inflating their IT budgets.
Companies can also recoup value from their existing tech inventory. Almost two-thirds of businesses do not fully capitalise on the potential value of their usable devices. By initiating a trade-in programme instead of simply storing, disposing of, or allowing employees to keep old devices, businesses can unlock significant value, potentially recovering up to 30% of the original purchase value.
Beyond the immediate financial benefits, refurbished tech can boost productivity across the organisation. By opting for laptops or smartphones that are a generation or two older, companies can give their employees access to high-quality technology that might otherwise be out of reach. These devices still receive the latest operating system updates from manufacturers, ensuring functionality and security, while offering significant cost savings compared to buying new. This accessibility ensures that all team members are equipped with capable tools, which is essential for boosting productivity and accommodating mobile workforces. As a result, businesses can upgrade their technology infrastructure and remain at the forefront of innovation in their industry while keeping costs down.
The environmental impact of choosing refurbished technology is equally significant. Compared to manufacturing new devices, refurbished devices save an average of 76kg of CO2 emissions per device. For a UK business with 250 employees, this could reduce CO2 emissions by over 15,000kg from staff smartphones alone. By procuring refurbished tech, businesses can align more closely with corporate sustainability goals and meet ESG reporting requirements. Especially important is the ability to certify CO2 savings, allowing companies to quantify and include these reductions in their environmental reporting and planning. This approach enables businesses to demonstrate tangible progress in environmental responsibility while making informed decisions about their technology procurement.
Altering the procurement mindset
Despite these clear benefits, many businesses hesitate to embrace refurbished tech due to misconceptions about reliability, performance, and data security. In fact, 32% of UK businesses cite perceived lower reliability and shorter lifecycles as reasons for not purchasing refurbished devices. Another common misconception is that setting up refurbished tech can be time-consuming and challenging.
However, these concerns are largely unfounded when dealing with reputable refurbishers. A reliable refurbisher will make sure that devices are ‘work ready’ upon delivery, addressing concerns about reliability and performance. They use advanced software to thoroughly wipe and reset devices to factory settings and conduct extensive diagnostic tests. The aim is to guarantee optimal performance, as well as replacing parts where necessary. These measures should dispel the concerns businesses have regarding refurbished tech.
Procurement teams should recognise that not all refurbished tech is of equal quality. This involves understanding the different grades and qualities of refurbished devices, from excellent to fair condition, and evaluating their suitability for various organisational needs. When assessing potential refurbishers, it’s also crucial to consider factors such as product warranties, grading systems, data security measures, customer support, testing procedures, and environmentally responsible recycling practices. Third-party certifications and validations also play a crucial role in ensuring the quality and reliability of refurbished tech, providing additional assurance to businesses considering these options.
Navigating the refurbished tech landscape
Implementing a refurbished tech programme within a UK organisation may be met with several challenges, including obtaining stakeholder buy-in, navigating policy changes, and addressing negative employee perceptions.
To effectively secure leadership buy-in for purchasing refurbished technology, procurement teams should:
- Calculate and articulate the financial and environmental advantages, using real-life data and examples to dispel common misconceptions.
- Emphasise the long-term cost savings and competitive benefits of adopting a circular economic model to strengthen internal support.
- Select a technology partner that can measure and certify the CO2 savings of each device it sells.
- Introduce effective change management and educational initiatives about the programme’s benefits.
The future of sustainable procurement
The refurbished tech sector is rapidly evolving with advancements in refurbishing techniques that prolong device life and performance. Emerging categories, such as IoT devices, offer fresh avenues for UK businesses to implement sustainable procurement practices.
Procurement teams play a pivotal role in steering organisations toward a circular economy and adopting more environmentally friendly business methods. For many companies, a critical initial step involves reevaluating their procurement strategies to include options for refurbished technology. It’s becoming essential for competitive and sustainable business practices in the UK market.
By Stephen Wise, Global Marketing Director, Loop Business
