Sustainability

Selling sustainably: how ‘Green Stock’ is changing the components industry

Electronic waste, or e-waste, is a mounting challenge for the electronics industry. As technologies advance quickly, perfectly usable components get left behind, destined for landfills through the process of scrapping. However, the innovative approach known as ‘Green Stock’ reimagines component lifecycles through acquisition and redistribution of these parts.

The ever-evolving nature of the electronics industry creates a constant excess of components. Traditionally, these have been disposed of through scrapping. However, a promising solution is emerging – Green Stock.

Green Stock is the practice of acquiring and redistributing new, high-demand electronic components that would otherwise be scrapped. This repurposing not only reduces waste but also offers a readily available source of parts for distributors. Green Stock goes beyond the concept of ‘green manufacturing’ or ‘green procurement’, which typically focus on using environmentally friendly materials and processes during the initial production of components.  Green Stock tackles the issue of what happens to usable components after they become excess inventory.

The problem: traditional component distribution

Keeping up with constant innovation in the electronics industry results in endless waves of new components being turned out on the factory floor. Inevitably, slow-moving – yet still perfectly functional – electronic components get left on the shelves. Traditionally, when manufacturers and distributors have a surplus of these obsolete parts, they use the method of scrapping, the process of physically dismantling and shredding the parts while recovering some raw materials.

While scrapping can provide some material recovery, it comes at a hefty environmental cost. Many electronic components contain hazardous materials including lead, mercury and flame retardants. These substances can leak from landfills or be accidentally released during the scrapping process, leading to air, water and soil pollution. Further, the energy used during the dismantling and shredding processes contributes to greenhouse gas emissions.

Although it is a well-intentioned concept, scrapping still has an undeniably negative impact on the environment.

Waldom’s Green Stock solution: a sustainable alternative

While traditional methods often lead to perfectly usable electronic components being scrapped, Waldom’s Green Stock programme offers a more sustainable alternative. This programme specifically targets slow-moving and excess inventory that might be deemed excess inventory for one distributor but remains high in demand by others within the industry.

Manufacturers appoint Waldom to manage their distributors’ stock rotation programs. As a master distributor, Waldom then steps in to redistribute these excess components through its network of 2,500 distributors, effectively rescuing them from potential scrapping and finding them new homes where they can be put to good use. Waldom has a recovery rate exceeding 87%, a testament to the programme’s effectiveness in keeping these high demand components that were destined for landfills active in the distribution network.

The key differentiator for Waldom’s Green Stock programme is its commitment to quality and sustainability – these two aspects are not mutually exclusive. In fact, Waldom backs its Green Stock with a two-year warranty, giving customers a high degree of confidence in the parts’ performance. Waldom goes beyond simply diverting components from landfills; the company plants a tree for every Green Stock order placed. Additionally, it recognises distributors and manufacturers making significant contributions to the Green Stock program with the prestigious Waldom ESG Award, adding even more incentives to sustainable practices in the electronics industry.

Benefits for the industry ecosystem

Participating in Waldom’s Green Stock programme is a win-win for all stakeholders in the electronics industry ecosystem. Here are a few benefits for each party:

For manufacturers: by participating in Waldom’s Green Stock programme, distributors can access high-quality, in-demand components. These parts get a second lease on life, so to speak, as manufacturers see the benefit of their parts becoming available again for their distributors. Manufacturers will make pure profit on everything they sell through this programme – adding to their bottom line. Using Green Stock can also help manufacturers meet their environmental, social and governance (ESG) goals. Doing so can enhance a manufacturer’s brand reputation and appeal to environmentally conscious customers.

For distributors: distributors have much to gain by participating in Waldom’s Green Stock programme, but the true potential is unlocked when every distributor commits to the initiative. Participation in the programme allows distributors to tap into a broader portfolio of available stock. By avoiding the unnecessary scrapping of high-demand components, these parts remain accessible to everyone within the distribution channel, thus increasing the distributors’ ability to fulfil diverse customer needs. This collective effort not only boosts their ability to meet market demand but also strengthens the entire industry’s competitive edge. Similarly, distributors can leverage their participation as a method to reach some of their ESG goals. Moreover, by engaging collectively in this sustainable practice, distributors are eligible for recognition through the Waldom ESG Awards, gaining acknowledgement for their role as sustainable industry partners. The collective action underscores a shared responsibility toward a more sustainable future, enhancing the benefits for all involved.

The future of Green Stock: a call to action

Waldom wants Green Stock practices to become the norm throughout the entire electronics industry. Widespread adoption would lead to a significantly lower reliance on environmentally destructive scrapping practices. Every single distributor has a crucial responsibility to ensure they do not scrap usable products. Manufacturers must provide clear instructions to their distributors on how to channel excess inventory into the Waldom Green Stock Programme, promoting responsible inventory management. Distributors could then confidently source high-quality components while minimising waste; they could also efficiently clear excess inventory and establish themselves as sustainable partners. Additionally, manufacturers could meet the growing demand for ethically sourced electronics.

If we want to realise this vision, industry associations also have a key role to play. By setting the bar higher in Green Stock programme standards and guidelines, they can ensure consistency and transparency. Industry associations can promote collaboration and knowledge-sharing, helping to establish a more widespread Green Stock ecosystem. With the cooperation of Waldom and supporting organisations, Green Stock practices have the potential to take a significant step toward sustainability in the electronics industry.

Waldom invites stakeholders and industry associations to consider their roles in adopting robust Green Stock initiatives, whether your part to play is establishing new workflows or developing a recognition system that effectively identifies partners who are having a positive impact in the field of sustainability. By stepping forward yourself to adopt sustainability practices, you will move the industry with you. Don’t just make sustainability a goal for your annual report – make it a way to use your influence for creating a brighter future.