01732 759725 36 DEALER PROFILE A circular-first business model Michelle Ryder caught up with Warren Colby, Managing Director Print Division at Agilico, to discuss the company’s growth trajectory, circular-first business model and future expansion plans Agilico has been on an impressive growth trajectory over the past few years. Notably, it has completed eleven acquisitions, the most recent, completed in November last year, of YourDMS, an Invu reseller, a move that aligns with its acquisition of document management and accounts payable software manufacturer Invu, two years earlier. Today Agilico has three distinct divisions – Agile Print, its MPS business; Agile Docs, its consulting and software business; and Agile Tech covering IT and telecoms services – all of which sit under the wider Agilico Workplace Technologies banner. The company also has a strong presence in Scotland and that part of the business operates independently to serve the Scottish community. Leading with a circular approach Colby explains that Agilico has adopted a circular-first approach to MPS engagements. “We still sell new MFPs, but we lead with our Agilico Zero brand of refurbished devices.” Agilico has five locations nationwide where it refurbishes used MFPs and printers. “We have scaled that [remanufacturing capacity] up further as we now have agreements with some of the OEMs to take back their aftermarket equipment too,” he added. He continued: “The devices we take back are typically one range old, and what we do is to cherry pick the devices which have no more than 20 per cent of their life used, so they still have 80 per cent of useful life left. The devices are then shipped to one of our locations [the nearest one to save on unnecessary carbon emissions] where they are refurbished and supplied to customers under our Agilico Zero brand.” Refurbish and reuse Agilico made the decision to refurbish devices about 18 months ago. “During the COVID period when contracts ended, many customers asked us to simply extend them. There were a few reasons why that happened – firstly there was uncertainty, secondly, they were looking to reduce their overheads because of uncertainty, which is kind of linked, and in addition, the volume of prints done on the devices had dropped significantly during the COVID period so the machines had nowhere near reached end-of-life,” Colby explained. “If you fast-forward to 2023/2024, volumes are still way below where they were pre-pandemic, due to digitalisation and new ways of working. The OEMs haven’t suddenly manufactured devices with a shorter lifespan, so we have a lot of devices coming back with very low usage. “So, rather than supply new equipment to replace stuff that really didn’t need replacing, it made sense for us to refurbish, and hence the Agilico Zero brand was born. Initially we began with our own customer supplied equipment but we then reached out and sought agreements with the OEMs to supply us with all of their end-of-life equipment too, so it’s a much bigger operation now.” Zero waste to landfill He continued: “We don’t want to send anything to landfill, so with devices that are end-of-life, by that I mean unusable in any way, shape, or form, we strip them right down and use the components as reconditioned parts for our existing customer base. We are also talking to recycling companies about re-using the ‘unusable’ plastic in new ways too.” According to Colby, the environment is in the top three of buyers’ purchasing criteria. “Businesses, big businesses especially, have got ESG and carbon reduction goals and are on their own journey to net zero. So, they’ve got to make the right purchasing decision. We’re actually giving them a reason to buy from Agilico. “This is not going to be for everyone and that’s why we say it’s our approach. We are still the biggest supplier of new equipment, we provide a blend of new and Agilico Zero into clients, the Zero ticks all the boxes around ESG while the new models fulfil bespoke requirements whether that’s booklet making or it might be high volume. We actually sell less than 20 per cent of high volume used equipment,” he added. The Pepsi challenge Colby continued: “We also have what we call our premium range – that’s models with less then five per cent of total life used – so customers can opt for the standard product which is less than 20 per cent usage, or they can pay a little bit more and have a premium product which is less than five per cent usage.” One of the most interesting things about Agilico’s approach is that they encourage customers to do what Colby describes as the Pepsi Challenge. “We put the Zero branded devices in our showrooms and we invite customers to road test them and they really can’t tell the difference between a new and Warren Colby
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