The operator developed and runs the VICKY platform, based on blockchain technology, to trace kit more efficiently throughout its lifecycle – reuse is greener than recycling
Telefónica is progressing towards its goal of being a zero waste company by 2030 by refurbing and reconditioning customer premise equipment (CPEs) to avoid waste. To foster this circular economy, the company developed the VICKY platform, based on blockchain tech.
Reuse – or circularity – helps avoid indirect carbon emissions associated with the extraction of new materials for new equipment manufacturing, contributing to achieving net-zero emissions by 2040. Where devices cannot be refurbished, they are recycled, to minimise the impact of scrapping them, encouraging reusing materials they contain.
The VICKY platform is designed to improve the traceability of assets as well as monitoring and controlling modems, routers and TV set-top boxes across the value chain (referred to as Scope 3).
Since its implementation five years ago, Telefónica has reused over 19 million routers and set-top boxes in all its operations. In 2023, the company achieved an 88% collection rate of all equipment, moving closer to its target of 90% by 2024.
The improved collection rates and refurbishment processes extend the lifetime of equipment. The solution has been recognised for its innovation by Gartner and Forbes for supporting a more efficient, faster, simpler and more sustainable supply chain.
Extending the useful life of equipment avoids emissions, waste and resource consumption associated with the manufacture of new equipment. When equipment cannot be reused, the best option is to recycle it, as each piece contains materials such as gold or copper that can be used in new products. Telefónica ensures their proper recycling treatment through another platform.
Today’s supply chains are increasingly global, complex and involve cross-border logistics and can result in long delivery times due to shortages of electronic components or inefficiencies in device procurement.
Collaboration across the supply chain is essential, given that Telefónica’s electronic equipment for consumers alone involves more than 100 companies on three continents.
VICKY enables the Telefónica Group to address these challenges by providing traceability through complete automation of the logistics process and helps suppliers achieve greater efficiency through digitisation.
As a result, the system optimises procurement, avoids delays and facilitates access to product information such as manufacturing location, critical components and relevant information for maintenance processes or equipment refurbishment, according to Telefónica.
“We firmly believe that much of the innovation we will see in the near future will focus on process transformation, where new technologies such as blockchain, big data and the internet of things will be key factors in contributing to the decarbonisation of operations while generating environmental benefits,” says Fernando Valero, Global Director of Supply Chain and Procurement Transformation at Telefónica.
The GSMA is urging operators to switch to circular supply chains to achieve net zero in 2050 – read more about its initiative here. The graph below is taken from its Mobile Net Zero Report.
