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Could Supply Chain Challenges Fuel the Circular Economy?

Peter Miller

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Supply Chain Challenges
From a business IT perspective, the issues run around the supply chain run a lot deeper than silicon chips, as Peter Miller, Sales Manager for ETB Technologies discusses.

The combination of Covid-19 and Brexit custom delays has left a path of hurdles for businesses to overcome.

Most recently, we have seen this play out with supply chain issues and delays to the manufacturing of products like silicon chips resulting in potential shortages of electrical goods in the run-up to Christmas.

From a business IT perspective, these issues run a lot deeper as such delays – which hit their peak in September – are holding organisations back from “business as usual”.

With Omicron cases on the rise, there has been much talk in recent weeks about how this will further drive staff sicknesses resulting in more manufacturing and delivery delays. Already before Omicron, some enterprise manufacturers were quoting lead times of 100 days or more to fulfil orders, representing huge supply chain delays for businesses.

Yet again, organisations must consider how they can continue operations without impacting their IT transformation journeys – as who can afford to wait the more than three months to receive new products?

The refurbished IT market offers an alternative to organisations seeking something “new” while looking for the immediacy in product delivery. Refurbished IT vendors – part of the circular economy – have the benefit of having all items readily available as there is no manufacturing time to consider.

The recent Scottish budget, which included a £43 million investment in the circular economy, will hopefully raise the profile of the sector and provide a boost. So, why aren’t more organisations taking advantage of this?

“I Want it Now”

There is no doubt that the move to home working coupled with supply chain challenges has made some organisations consider looking elsewhere for the products they need in the timeframe that they want them.

In an age where time is of the essence and immediacy is high on the agenda as businesses look to recover, grow or modernise, the good news is that this is where the circular economy’s ethos of reuse, repurpose or refurbish comes into its own. Organisations that operate within the circular economy’s sphere can supply the equipment that organisations need in a timeframe that means little to no wait time for delivery.

While there have been rumblings that those circular economy organisations may be scuppered if there isn’t an overhaul of global trade rules as noted in an International Chamber of Commerce report, in the UK we are seeing the opposite – particularly in Scotland’s refurbished IT sector.

For those organisations operating here, many products are available on a next-day basis – helping to speed up digital transformation journeys and eradicate any silicon chip issues that the broader IT sector is seeing.

Is Reused the New, New?

However, part of the reason some organisations embrace the circular economy – supply chain challenges or not – can often be put down to not understanding the quality of the products being sold. It’s likely that some of the products being refurbished and sold on range anywhere from 30 days to five years old.


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However, for the items to be sold – be they network switches or servers – they will be put through a range of stringent tests to guarantee performance levels as well as having any signs of previous use (bumps or scratches) removed before being sold on.

Ultimately, what you see is what you get – and in any case, everything is covered with robust warranties to remove any concern over quality.

Utilising refurbished equipment has the added benefit of being more affordable and, at a time where we are seeing inflation rise, can provide a solid alternative to organisations looking to advance their IT estate without impacting the bottom line significantly.

For instance, it is estimated that organisations can save up to 20-30% on a current generation server, with older servers providing even more significant savings.

Maximising Value while Moving to Net Zero

Whilst cost is a major procurement concern for organisations, another issue working its way up the corporate ladder is how they can work towards achieving Net Zero and becoming carbon neutral.

COP26 and the discussions and commitments made in November have now become the mainstream challenge of the business community. As a result, an unexpected benefit of the supply chain crisis may be a push towards driving down emissions on our journey to Net Zero.

It has been proven that simply cutting and offsetting carbon alone will not be enough to achieve Net Zero; organisations must consider the items they purchase and from where to achieve their goals.

More than ever, the circular economy should be considered as a viable route to IT transformation. While there is no end in sight for the ongoing supply chain challenges that organisations face, there are smarter routes available so that they can avoid operational disruption and still advance the business.

Peter Miller

Sales Manager for ETB Technologies

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