To: kemble s. matter who wrote (161405 ) 10/4/2000 2:53:07 PM From: calgal Respond to of 176387 IBM, Dell move to reverse logistics By Renee Boucher Ferguson, eWEEK October 2, 2000 12:00 AM ET As companies face the environmental and logistical challenges of disposing excess computer parts and equipment, large PC makers are coming to the rescue. The industry is warming to the concept of reverse logistics—the selling of off-lease hardware and scrap equipment. And IBM and Dell Computer Corp. are each looking to streamline the way they redeploy old systems and, in the process, make it easier for customers to refurbish existing computers or buy used parts. IBM's new Global Asset Recovery Services, or GARS, unit links the Armonk, N.Y., company's leasing and supply chain businesses. In the coming months, GARS will announce steps to improve the efficiency with which IBM manages reverse logistics operations. GARS' first objective is to centralize all secondary channels of sales into the Interactive Offer System—IBM's online computers and parts exchange, which is available now with restricted access. The company is also developing what it calls Information Warehouse Database, a cross-reference database that links like components across divisions, making it easier to share excess equipment. A Web site will enable IBM technicians to access the parts database, order parts and have them delivered the next day. IBM currently has no plans to open the database, which is due in the first quarter, to customers. Other new programs are in the works as well. The PELM (Product End-of-Life Management) service, due next June, will allow large customers to contract with IBM to turn in old PCs and PC parts and sell their refurbished items on IBM's exchange. The program will have a small per-unit disposal fee and a guarantee that no environmental issues will arise, officials said. A second offering, the Parts Cabinet Lease, saves customers from holding spare parts on their books; instead, IBM Global Financing owns the parts until they are needed. Finally, IBM is consolidating its parts division into One Touch Centers that can handle every aspect of reverse logistics. IBM is not alone in its initiatives to streamline reverse logistics. Dell's Asset Recovery Services division in January will launch a pilot program that will put the Round Rock, Texas, company's reverse logistics program online. The program allows for ordering and processing of new systems and taking away old systems through a single Web-based interaction, officials said.zdnet.com