In order to assess the advantages and risks of using salvaged or surplus electrical parts we need to define each of the categories of parts. 

Salvaged vs Surplus

Salvaged

Salvaged parts are generally second hand. They might have been installed on a project for months or years, and they could be in vastly different conditions. More often than not, these items were destined for landfill or just a scrap yard that has no idea of the value or utility these components still have. It is often hard to trace the origin of these parts. 

They may be; 

• Fully functioning with no faults
• Working but with some faults or not at peak efficiency
• Faulty or missing pieces. 

These parts will require, depending on condition, the following procedures

• Removal from site 
• Sorting and categorizing condition
• Repairs or refurbishment if required (please see my article on repair here)
• Testing & Cleaning 

These parts will generally come with no manufacturers warranty, packaging or instructions. Some (good) manufacturers will still support their products even if they are second hand and many years old. 

Surplus

Surplus parts come from various sources, but are usually from auction houses, direct from businesses or individuals. They are the result of over purchasing combined with strict return policies from suppliers , or lack of time/money from the purchaser to return the unnecessary parts. They also come from cancelled projects or business liquidations. 

Importantly the best place for surplus parts to be is back with the original supplier. This is because new customers looking to buy the part will be more trusting of the original supplier, than a random business with surplus parts. Returning surplus parts (if possible) will always have the greatest net benefit to the environment, budgets and space limitations. Even if the supplier has a restocking fee. 

For times when returning surplus parts to the supplier isn't possible, then re-selling is the next best thing. These parts will usually be 

• Brand new
• Still in original packaging 
• Covered by manufacturers warranties 
• A little dusty from storage
• A few years old.

Once they are received by the re-seller, they will still need processing but not as much as the salvaged parts. The following procedures need to happen; 

• Sorting and categorizing condition
• Checking warranty and support status
• Testing 

Not every surplus part requires testing from the re-seller. If the product is still sealed in original packaging, and carries the manufacturers warranty, even only partially, it would be unnecessary to test the part unless the customer specifically requests it. 

Which is right for my business?

Ultimately, the decision to use either Salvaged or Surplus parts vs Brand New will come down a whole host of factors. The key factors being; 

• Availability of brand new parts
• Cost
• Risk profile of the installation

These factors will be decided and agreed upon by the site technicians, engineers and management staff. 

Some example use cases; 

A machine has broken down on a production line. From technician diagnosis, there is a failed specialty contactor. A brand new one could be sourced, but it will take 4 weeks to arrive. Trying to retrofit a different brand or model may require engineering, extended downtime and extra costs. A salvaged part would be a great use case for this situation. Even if the technicians are concerned about reliability of second hand components, the line was going to be down for 4 weeks anyway so any extra production time leads to more profitability for the business. 

You are designing a new project for a customer. The customer is concerned about the budget but still wants to use quality components. A perfect situation to use surplus parts. With some or all of the manufacturers warranty, as well as being new, it removes doubt in the reliability of the components. The customer is able to keep the project to a budget, quality parts are used, and there is environmental benefits to the project that are now attributable to the surplus parts. 

Final Thoughts

Salvaged and Surplus parts have an important place in the parts supply space. These components once destined for landfill or the scrap yard can have new life. More importantly there are great cost and time benefits to using these parts. 

In the current situation, a lot of parts are sold by auction houses, or scrap yards who have no idea what the components do, how they work or how to test them. This is why I started Adelaide Electrical Salvage. I have almost 15 years experience in the electrical industry across many disciplines. This allows me to make recommendations, perform testing and give customers confidence in the products I sell. 

These parts are not intended to be used in mission critical applications, where spares are easily available and money is no object to the company involved. There are certain situations where new products, with 24/7 customer support from the manufacturer are required. 

With the push to move to a circular economy where less landfill is created, less emissions are generated and more environmental KPI's are set, Salvaged and Surplus components definitely deserve a seat at the table.