SPARING PROGRAM SAVES WIRELESS CARRIER MILLIONS IN OPEX COST AND REDUCES ITS CARBON FOOTPRINT
Rincon successfully designed and executed a hardware as a services program for one of the largest providers of wireless mobile and Internet services in North America. By utilizing hardware from the green market*, this program not only produced tens of millions of dollars in operational expenditure (OpEx) savings, but also successfully extended the useful life of thousands of pieces of hardware.
The Process and Results
The first step in designing the program involved an analysis of failure rates and delivery intervals down to the part number level for networking components. The next step was an assessment of whether the specific part numbers required for sparing were available in enough quantity and with enough quality in the green market to be utilized in lieu of the client’s traditional approach of using new hardware from the OEM. Once this assessment was done, Rincon began sourcing, receiving, vetting, warehousing, and deploying the spares as needed by the carrier. The results have been impressive, the client has saved over $70 million in OpEx. The RMA rate has been less the 1.4% which is consistent with the rate of new OEM hardware. In addition to the incredible commercial impact of the program, the client has utilized over 5,000 pieces of hardware that otherwise would have been sent to recycling facilities. These results show that utilizing green market spares is both cost effective and environmentally responsible.
Rincon is committed to doing business in a responsible and sustainable way by extending the life of hardware through our Investment Recovery program which involves the remarketing of surplus or legacy assets to the green market in accordance with ISO 9001:2015 standards. Rincon successfully identifies and sources from its exclusive high-quality supply and passes on the savings to our customers while simultaneously reducing the environmental impact of network upgrades by remarketing and redeploying these surplus and legacy assets.
*Also known as the used or secondary telecommunications market, the green market refers to the distribution of used, refurbished, recycled, discontinued or surplus product that are in good working condition.
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