What Is the Meaning of IT Asset Disposal?

When computer equipment reaches the end of its lifecycle, where it no longer serves a purpose within your business and may not work as well as it once did, disposal may be the necessary option. It involves clearing out hard drives to prevent data leaks and using proper recycling procedures to get rid of old equipment in a compliant way. 

That said, there are several steps to this process. At times, computer equipment may still hold value where it could be resold or repurposed within your business to help save money. That’s why teams like Multiply can help to ensure you make value-driven decisions during disposition and asset management. 

With this complex process, you’ll likely have many questions about how it all works. So, we’ve outlined some asset disposal questions and answers to give you more clarity. Let’s dive into those additional details. 

How Does Asset Disposal Work?

As mentioned, asset disposal involves scrapping, recycling, or reselling old computer equipment that your company owns and uses. 

It’s a continual process within asset lifecycle management where you review equipment performance to determine if it’s still keeping business operations running smoothly, assessing disposition or repurposing options when equipment ages out, and adjusting financial records in a compliant way to ensure everything stays up to date. 

When you’re looking for IT asset disposition companies near me, you’ll also want to look for how much those companies will assist in this ongoing process. 

When you choose our team at Multiply, we partner with you to help manage all your IT asset management needs from the ground floor. We’ll eliminate the stress of trying to manage everything on your own, perform detailed analysis, and even bridge communications between teams to get everyone working on the same page. 

What Are Common Reasons for Disposal of Assets?

Several reasons may cause your IT assets to enter the disposal stage. Here is a quick breakdown of the primary causes:

• Diminishing performance: As technology ages, performance naturally decreases. It may not operate as smoothly with new industry updates, or you may simply notice things like loading speeds or battery life decreasing. All of this can make businesses less efficient, making disposal and replacing those assets a good idea. 

• Obsolescence: With the many updates in the tech world, some equipment will become outdated or even obsolete. It would be essential to replace and dispose of that equipment during that time; otherwise, you may run into struggles such as equipment needing to be repaired and there not being parts available. 

• Breakage: An unfortunate part of fast-paced business operations is equipment can occasionally break in the process. While you want to do everything to prevent it, at times, accidents just happen. When equipment breaks and can’t be repaired, deploying the proper disposal and recycling procedures will be necessary. 
• Downsizing: Some companies may run into times when downsizing occurs. That can include eliminating a department or closing a location that wasn’t getting enough business. Managing the assets that no longer have a home will be essential, and the proper disposal processes can make it go smoothly. 

When it’s determined that assets must be disposed of, there’s a step-by-step process that will ensure it goes smoothly. Here’s an outline of what that would look like. 

What Is the IT Asset Disposition Process?

The asset disposition process consists of the following:

• Inventory assessment and data security: When you begin asset disposition, you first have to assess your inventory. That means cataloging the make, model, and condition of the assets you’re disposing of and ensuring that equipment is ready to be replaced if needed. You’ll also want to record if data has been wiped successfully for data security.

• Valuation and vendor selection: The next step involves assessing the value of each asset. Some may still hold value in the tech market and can be resold to vendors. You would then select a vendor who can give you the best prices. Teams like Multiply can help negotiate with vendors to get the best value here. 

• Transportation and processing: If assets require transport to a vendor’s facility, or in some cases when remote employees are leaving a company and equipment needs to be shipped back, proper transport must be arranged. You’ll also want to ensure they are all processed and recorded as leaving the facility for compliance. 

• Documentation and financial considerations: After processing, you’ll likely receive some important reports like data destruction methods and the final disposition method that was used. This should all be documented, including any updates to financial records in the case of earning any profits from reselling or recycling costs.  
• Compliance and review: After disposition, it’s a good idea to conduct audits and regularly review company records to ensure everything is up to date and organized correctly. Our team at Multiply can help you perform the auditing and evaluation process successfully. 

There are several layers that go into completing these steps to asset disposition, which is why having a partner like Multiply to organize it all is essential. There are even additional aspects we can help you manage, like asset retirement, so let’s take a look at what that process is like, too. 

What Is the IT Asset Retirement Process?

Before assets are disposed of, there’s also a short process called asset retirement. This process involves removing assets from daily operations. It must be planned effectively so team members can remain informed and necessary replacements for assets can be coordinated to keep daily activities running smoothly. Here’s a quick overview to illustrate those steps:

• Schedule and inform team members: When assets need to be retired and removed from operations, it’ll be important to schedule this ahead of time and notify any team members who will be affected. 

• Locate and deploy replacements: If retiring assets will be replaced with new equipment, they should be purchased and deployed ahead of time to prevent any disruptions. 

• Inventory classification: Retiring assets should be classified in inventory records to keep the process organized. 

• Data sanitization: This step involves erasing data from hard drives to prevent data leaks or security breaches. 
• Choosing a disposition method: Once assets are retired, a disposition method should be chosen and put into action to avoid any unused assets piling up in storage. 

Properly organizing your retirement and disposition plan will help prevent any adverse risks within operations and financial procedures, making these steps essential. To provide you with further information about why these processes are important, here is a breakdown of the risks that could occur if these processes aren’t managed effectively. 

What Are the Risks of Asset Disposal?

The main risks of mismanaged disposal are:

• When financial records aren’t managed appropriately, your company won’t be prepared for any audits that could occur. 
• Improper processes can lead to not getting the most value out of the equipment you invest in, such as recycling equipment that could be resold or repurposed. 
• If the right recycling procedures aren’t used, there are potential fines for not following appropriate government and environmental regulations. 
• Data leaks or security breaches can be caused if information isn’t cleared from hard drives before disposal. 

With Multiply on your side, we’ll ensure all these risks are minimized by putting the right policies and procedures in place. Here’s an example of the difference a company like Multiply can make. 

What Is an IT Asset Disposition Company Example?

Leonard, an IT department leader, faced challenges in efficiently managing the disposition of outdated personal computers at his company. Struggling with logistics, data security, and environmental compliance, he turned to Multiply, a company specializing in IT asset disposition. 

Multiply streamlined the process with precision. They began with a thorough inventory assessment, identifying and cataloging all PCs due for retirement. 

Next, they ensured complete data sanitization, providing Leonard with essential data destruction certificates for compliance. 

By accurately valuing the hardware, Multiply identified PCs suitable for resale, generating unexpected revenue for Leonard’s company. They also responsibly recycled obsolete units, adhering to environmental standards. 

The detailed documentation and reports Multiply provided simplified Leonard’s compliance and audit processes. With Multiply’s expertise, Leonard transformed a cumbersome task into a smooth, secure, and profitable operation, reinforcing his role as an effective IT leader.

What Is the Information Technology Asset Disposal Policy?

An IT asset disposal policy is meant to organize the disposition processes and procedures you want employees to uphold. It ensures everyone is on the same page throughout the company to avoid compliance errors and keep operations running smoothly. 

Most disposal policies will include aspects like:

• Scope and goals
• Roles and responsibilities
• Data security procedures
• Environmental compliance
• Asset tracking systems
• Vendor management 
• Audits and documentation procedures

The best IT asset disposition companies, like Multiply, will help you develop an asset disposal policy that is best for your needs. 

How Multiply Can Help

Multiply is a team of IT consultants and senior service technicians who have years of experience in IT asset and data management. We partner with companies to help with all aspects of your IT asset management system, including asset disposition. 

When you partner with Multiply, we’ll give you more than just an effective system. We’ll actually get in on the ground floor to take work off your plate and coordinate teams to help them work together. Our teams can conduct audits, set up inventory systems, deploy the right software, and more to help with all your needs. 

Contact us today to learn more about how Multiply can make a difference for you!