This article is part 2 in a series intended to guide original equipment manufacturers (OEMs) and retailers with selecting the right electronics lifecycle management partner to assist them with their reverse logistics needs.
Picture this scenario: A recalled or returned consumer electronic device falls into the wrong hands. Big problem — because this device contains a customer’s personal information. Now you’re looking at the potential for data theft, putting your OEM or retail business at risk for incurring severe penalties under various laws and regulations, as well as costly payouts for lawsuits..
And the problems don’t stop there, as you’re also likely to get slammed with negative publicity and lasting damage to your reputation and brand.
Maybe you’ve chosen to, or are considering, the outsourcing of your reverse logistics to an electronics lifecycle management vendor. But that won’t insulate you from liability if a data breach occurs. In the eyes of government entities and consumers, this vendor is an extension of your company — which is why you must use the utmost care in selecting a partner to assist with your reverse logistics needs.
Evidence of a Strong Commitment
In a nutshell, your partner should demonstrate unwavering devotion to data security. Look closely at the following areas for evidence of this commitment:
- Industry certifications — including National Association of Information Destruction (NAID) AAA Certification®
- Data security practices — sanitizes or destroys data in strict compliance with Department of Defense, National Institute of Standards and Technology (NIST) 800-88, and NAID standards; and provides customers with proof of data destruction
- Logistics and transportation — ensures the secure and compliant collection of returned electronics
- Hiring and staffing — conducts criminal background checks and drug screenings of employees and job applicants; rejects individuals with felony convictions for burglary, theft, embezzlement, or fraud; provides rigorous staff training in security best practices; and requires staff identification at all times
- Facilities — a multifaceted approach that includes key card access and the use of 24-hour, third-party security monitoring cameras in all storage and processing facilities, with video footage available for review for at least 90 days
- Vertical integration — provides a comprehensive set of services under one roof, limiting the movement of devices and therefore decreasing the risk of data exposure to cyber criminals
- Insurance — carries adequate cyber liability and professional liability insurance
How is Dynamic Lifecycle Innovations safeguarding sensitive data on behalf of our customers? For the complete story, I invite you to download our free “Choosing the Right Electronics Lifecycle Management Partner” evaluation guide and checklist for OEMs and retailers. The guide also walks you through three other crucial areas to consider when outsourcing your reverse logistics. Click here to download now.
