Could a circular tech procurement strategy boost your business?

Technology underpins every aspect of an organisation’s performance and having access to the right digital tools is central to being able to thrive and compete.  

It’s no surprise then that technology is a top strategic business priority, second only to profitable growth, and that global IT spending continues to increase, with investment tipped to exceed $5 trillion in 2024. 

But today, developing an IT procurement strategy is more than just operational. Chief Procurement Officers are being asked to mitigate a complex external environment and consider factors like supply chain resilience and transparency, ESG compliance, and data security, all while driving down costs and improving efficiencies. 

Purchase has power 

The way an organisation procures digital assets can profoundly affect its business outcomes, and savvy procurement executives are favouring alternative, circular technology management models as part of their future-fit digitalisation strategies. 

Circular technology management services, like our Technology Lifecycle Management solution, offer an end-to-end approach to procuring and managing enterprise IT. Instead of owning tech hardware outright, organisations acquire devices through a financial lease contract, which includes additional value-add services, such as an IT asset management platform to track and monitor devices while in use and a secure end-of-contract refurbishment service. 

Unlike traditional cash ownership, these IT lifecycle management models allow organisations to access digital tools that are tailored to their business needs and embed flexibility to scale or change their acquisition strategy. 

Circular technology management solutions make budgeting and renewals predictable through planned monthly payments and a strategic approach to tech management across the IT lifecycle. This predictability is gold; after all, if you can measure and plan for it, you can manage it. 

Reducing supply chain pain 

Procurement teams also have a tremendous opportunity to choose suppliers that embed the circular economy into their operating models. This can help businesses make their operations more sustainable and alleviate the disruption felt throughout the global technology supply chain. 70% of CPOs say that procurement-related risk/supply chain disruption has increased in the past 12 months, as shortages and congestion result in difficulty accessing IT hardware. 

Using a circular technology management provider also reduces the administrative burden of dealing with multiple suppliers across the IT device lifecycle and streamlines the tech procurement process, allowing CPOs and their team to focus on other more strategic areas of their work.  

A circular economy for tech 

As the regulatory margins in which organisations can operate within narrow, enterprises are now required to consider the environmental footprint of the IT device lifecycle and use the full force of their purchase power to make a positive social and environmental impact via their own operations and their supply chain.  

Adopting a circular tech strategy kick starts more sustainable and responsible device lifecycle management practices from the point of procurement because end-of-life refurbishment services are included as part of a single contract. 

Our TLM customer’s end-of-contract devices are securely transported to our state-of-the-art refurbishment centres¹ to be securely wiped, cleaned, and repaired if necessary. These devices are then sold through a network of trusted trading partners and may be purchased by a new secondary user. This process potentially extends the useful life of the device and gives users the opportunity the purchase second-hand tech instead of carbon and resource-intensive new devices. 

These end-of-life services can also minimise data security exposure and General Data Protection Regulation (GDPR) non-compliance for organisations, thanks to tracked data sanitization, which is also embedded as part of the contract. 

A resilient digital future 

As procurement teams collaborate with other departments to design a resilient and future-fit IT procurement strategy, there’s a huge opportunity to make more sustainable and secure tech management business as usual. Circular technology management solutions are a win-win for CPOs focussed on managing risk, minimising supply chain disruption and securing competitive advantage. 

Ready to kick start your IT procurement strategy? Contact us today.  

¹ In some regions devices might be processed by accredited partners