It is an unfortunate scenario, but many companies in the country do not take advantage of the financial opportunities that trash material from their production process presents. They think of this material as a “necessary evil” of their business without understanding the benefits and security that a professional scrap management program can provide.
Often, the person in charge of selling scrap metal is actually a purchasing professional. They are tasked with reducing pricing for raw materials and are very qualified in the purchasing of goods and services but are not trained in selling metals or trash metal recycling. More than likely they do not have access to some very important market information that can generate a great deal of additional revenue for their company.
They also do not have the experience in segregation and upgrade opportunities that a trained recycling professional has. Lack of information can be extremely costly. It is not necessarily the fault of your employees, they just don’t have access to the most up to date market data. Most companies don’t necessarily rely on trash to generate profits; they base their business on providing quality goods and services to their customers.
In addition, manufacturers may leave money on the table because they don’t adequately track and control the scrap they are selling. They may not be aware of simple, cost-effective practices — such as knowing the grade, weight, and value of their scrap — that can increase their revenue.
In selling scrap, the following principles should be looked into:
1. Know what you are selling versus what you are getting paid for.
2. Incorporate sorting and cleaning in your production stream to reduce the sorting and cleaning costs your recycler must subtract from your price per pound.
It is important to not only look at the monetary impact but also how to avoid the potentially high costs of mishandling your trash material. How well do you know your current scrap vendors policies and procedures? Do you know how your material is handled after it leaves your facility? The answers to these questions are critical to protecting your business from environmental, safety, or potential confidentiality concerns.
DON’T JUST DISPOSE OF YOUR SCRAP- MANAGE IT HOW EFFECTIVE SCRAP MANAGEMENT PROCEDURES CREATE A “REVENUE MACHINE” FOR YOUR BUSINESS