5 questions about software automation of scrap metal recycling operations

1. What should you consider when purchasing a recycling automation solution?

After reviewing current and anticipated business requirements, you should raise your ambition to automate all your yard tasks with a single solution—from transport to scale and sale of scrap. An end-to-end solution means connected workflows maximize the efficiency of your operations as well as provide complete insights to guide your decision-making. In addition, a software as a service (SaaS) based solution designed for the scrap sector takes the burden of information technology (IT) management from your team and allow employees to concentrate on building value in your business.

2. Is it possible to digitalize and automate all recycling processes?

Automation and digitalization have tamed many of the most challenging administrative tasks such as transport planning, container management, regulatory compliance, pricing and invoice administration.

Inventory management automation provides real-time decision support for both operational planning and trading.

Digital grading of material with handhelds allows the inspection and classification of feedstock with support for claims and price adjustments, thus protecting margins.

Portals allow the digital exchange of orders, tickets, documentation and invoices with customers, suppliers and other partners.

A new generation of supplier payment solutions allows operators to migrate from cash and checks to low-cost digital solutions that push payments to debit, prepaid cards and digital wallets.

A digital paperless scrap yard is now an achievable goal for ambitious operators.

3. How important is automating inventory management?

Scrap recycling is an inventory-based industry. When purchased scrap remains unsold, it is tying up valuable working capital. You need to understand every aspect of your inventory position (amount, type, status, location, ownership, etc.) to plan your operations efficiently and trade profitably. Automation plays a critical part as it allows you to connect inventory movements across your recycling chain and operations. A modern inventory solution tracks and records all inventory movements, regrades and valuations based on weighted average cost. You need this information available in real-time at your fingertips so you can make faster and smarter decisions.

4. What are the benefits of an SaaS-based solution?

An SaaS cloud-based solution offers a scrap operator benefits once only enjoyed by Tier 1 companies. First, it offers superior protection against evolving cyber threats. A browser-based user interface means your team can work from any location and on any device 24/7 and this will boost productivity in the office, yard and at home. It ensures complete continuity for your IT systems and business operations in the event of a disaster. Most modern SaaS solutions allow you to easily deploy new software upgrades, keeping you current with the latest innovations. Finally, it is an on-demand service, so there is no big up-front dollar investment—instead you only pay for processing power when you need it, so adding new yards and growing your operations are a breeze.

5. What should you look for in a strategic solutions partner?

A strategic solutions partner should have deep knowledge of the scrap recycling industry, understanding all the specifics and nuances of the sector—there is no room for generalists or newcomers. It should be well-financed and adequately resourced with both industry and technology experts, as this is the start of a decadelong relationship. The partner should offer the latest proven SaaS technology and offer a published product roadmap to ensure your business can thrive in an evolving market. It also should offer positive customer references in our scrap recycling community.