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August - 2015 - issue > CEO View point

The Sensitive Issue of Data in the Reverse Supply Chain

Sanjay Kanodia
Founder & CEO-Pervacio
Monday, August 3, 2015
Sanjay Kanodia
The supply chain for smartdevices is huge and complex. With an estimated 7.7 billion mobile phones and tablets currently in use around the world, and forecasts of 4.3 devices per person by 2020, a hidden threat to supply chain resilience and business continuity lies in the reverse supply chain. Billions of these devices are returned every year from businesses or personal users; perhaps reported as faulty or because they are at the end of their short lifecycle. And the data they contain is sensitive, personal and poses a security threat, not just to individuals and their identity, but also to companies and even exporting countries.

More mobile Devices in the World than People

Last year it was estimated that the total number of mobile phones and tablets in use was between 7.2 and 7.7 billion. With annual sales of mobile devices forecasted to surpass 2.6 billion next year, for the first time ever, there will be more mobile devices in the world than people. By the end of this decade over 87 per cent of the world's population will be using mobile technology and each person will own an average of 4.3 devices. Emerging categories such as the Internet of Things (IoT), smart homes, smart cars, smart meters and wearables will represent an additional 17.6 billion devices connected to the internet.

The logistical feat of supplying and managing this demand is becoming more challenging and a great deal of intelligence has been applied to streamlining forward logistics sectors. But given the unprecedented impact of the explosion of mobile technology, the reverse supply chain is becoming of critical importance. Millions of these devices are returned to retailers and manufacturers each year and they need to be fully cleansed and wiped of sensitive data to comply with country-specific security and privacy legislation.

The Vast Problem of Data Security in Product Returns


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