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Case Study

ExIT Technologies Assists Yellow Freight During Bankruptcy

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Yellow Freight, a prominent name in the U.S. transportation industry, operates under the umbrella of Yellow Corp. Known historically for its extensive network, Yellow Freight has been a key player among LTL carriers, facilitating less than truckload shipping across the nation. Despite its capacity and expansive operations with over 300 locations, Yellow Freight faced severe financial challenges that led to a declaration of bankruptcy. This drastic step came after a prolonged conflict with the Teamsters Union and the insufficiency of a substantial federal loan aimed at recovery during the pandemic, highlighting the company’s struggle to manage its debt and maintain operations.

In this challenging time, ExIT Technologies played a pivotal role by assisting Yellow Freight in liquidating their substantial IT assets, turning a critical part of their operational infrastructure into necessary capital to navigate through bankruptcy proceedings.

The Challenge

Scope of IT Assets

Within the environments of freight terminals, Yellow Freight deployed ruggedized IT systems crucial for daily operations. This included JLT Forklift Mounted Tablets, which were vital for real-time data updates directly from the operational floor, Panasonic FZ-G1 Tablets used by field workers due to their durability, and Dolphin Barcode Scanners essential for accurate logistics and inventory management.

The office personnel at Yellow Freight relied on a variety of IT equipment to support their administrative and operational tasks. Desktop computers and laptops were found throughout the office, facilitating logistics management, customer support, and daily administrative functions. Yellow Freight data center equipment was foundational to its operation’s efficiency and reliability. The setup included powerful servers and blade centers that managed large-scale data processing and storage. Flash storage systems and spine switches played a critical role in maintaining robust internal network connectivity, ensuring seamless communication across the company’s extensive network.

Compliance and Certification Requirements

ExIT Technologies addressed Yellow Freight’s need for compliant and environmentally responsible disposal of IT assets. By meeting the company’s 165 point compliance requirements, ExIT Technologies ensured adherence to the highest standards. Our certifications, including R2v3 for responsible recycling, ISO 9001 for quality management, ISO 14001 for environmental management, and ISO 45001 for occupational health and safety, underscored our commitment to excellence and sustainability in asset disposition.

Our Approach

Collaborative Strategy

ExIT Technologies implemented a collaborative strategy to address the liquidation of Yellow Freight’s IT assets effectively. Our approach involved working closely with multiple layers of the company, from the VP of IT to the data center and facility managers. This ensured a comprehensive understanding of the logistical and technical requirements. We deployed onsite teams across various locations to efficiently package and transport the equipment back to our processing facilities, ensuring every aspect of the operation was meticulously planned and executed.

Coordination and Logistics

The logistics of our operation required strict adherence to tight deadlines, particularly concerning the expiration of building and colocation leases. Our team managed unique facility requirements that varied from location to location, including acquiring necessary insurance and security clearances. We also coordinated with facility management to handle logistics such as freight hours and the use of freight elevators.

Execution

Onsite Deployment

To facilitate the efficient handling and processing of Yellow Freight’s IT assets, ExIT Technologies deployed specialized teams to various company locations. These teams were responsible for the meticulous handling of all equipment, ensuring that each piece was properly secured and ready for transport to our facilities.

Equipment Handling and Processing

Once the IT assets reached our processing centers, they underwent thorough testing to assess their condition and functionality. The viable equipment was then prepared for resale. Throughout this process, we ensured that all IT Asset Disposition needs were met, adhering to the best practices in the industry and maintaining compliance with all regulatory requirements. This phase was crucial in maximizing the recovery value for Yellow Freight, turning their redundant assets into valuable capital during a critical period of restructuring.

Results

ExIT Technologies’ intervention led to significant financial returns for Yellow Freight through the resale of IT equipment. A substantial check was issued to Yellow Freight, representing the value of the resold IT assets, which provided crucial liquidity during the bankruptcy process. Our commitment to compliance and adherence to stringent deadlines ensured a seamless operation without legal or financial setbacks. Furthermore, ExIT Technologies provided ongoing support over several months, assisting Yellow Freight with smooth operations and transitions during this challenging period.

Data Center Decommissioning

Our decommissioning efforts were specialized and tailored to the unique needs of Yellow Freight’s data centers. We managed intricate tasks such as safely removing cabling and protecting raised flooring systems to prevent damage during equipment removal. The complexity of colocation decommissioning, which involves coordinating with multiple stakeholders and adhering to specific protocols, was handled with precision. This ensured that all decommissioning activities were executed without disrupting the integrity of the facilities or the services being transitioned.

Conclusion

ExIT Technologies’ expertise and meticulous approach were instrumental in navigating the challenges faced by Yellow Freight during its bankruptcy phase. Our comprehensive strategy, from asset liquidation to data center decommissioning, facilitated a successful resolution that not only provided immediate financial benefits but also maintained compliance and operational continuity. This case study underscores the importance of a well-planned ITAD strategy and demonstrates how strategic asset management can turn potential losses into valuable opportunities for recovery and growth.

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Contact Us

At ExIT Technologies, we specialize in transforming IT asset challenges into opportunities for growth and financial recovery. If your business is navigating complex transitions, facing financial difficulties, or simply looking to optimize the value of your IT assets, we are here to help. Whether it’s decommissioning data centers, managing extensive IT equipment, or ensuring compliance with industry standards, our expert team is equipped to deliver exceptional results.Contact us today to schedule a consultation and start maximizing the value of your IT assets. Let us help you turn your IT challenges into strategic advantages.

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