Scrap Expo: Industry must embrace modern software

The scrap recycling industry lacks truly modern technology to unify workflow, according to a software expert who spoke at the Scrap Expo session Software for Scrap and Auto Dismantling.

Gordon Driscoll, co-founder and CEO of GreenSpark Software, said, traditionally, intrayard communication happens offline, whether that’s via in-person meetings or radio communication, and a lack of advanced technology adoption has led to inefficient systems when it comes to purchasing, operations and sales.

“Poor systems of record lead to disconnected workflow…[which] makes it difficult to streamline operations,” Driscoll said, noting that disparate systems lead to inefficiencies and bad customer experience.

Driscoll highlighted several factors to consider when weighing whether advanced technology can improve scrap yard operations:

• Scrap yard workers spend around 10-20 hours per week pulling information for customers.
• Average ticketing time has not decreased in the last five years.
• One lost nonferrous bale can equal around $20,000 to $30,000 in lost revenue.
• Workers spend around one day per week on financial reconciliations.
• Lost time can lead to 30 percent to 60 percent more lost revenue in today’s market compared with the previous two years.

The current scrap industry faces continued challenges like volatile markets and labor shortages, and Driscoll said a modern, innovative platform can insulate operations from macro headwinds now and into the future, creating tangible returns on investment and mitigating risk in any market environment.

He said that despite value creation, modern technology often is not viewed as mission-critical infrastructure relative to hard assets like equipment, but that employing a more technological approach to scrap yard operations can streamline, among other areas:

• scrap purchasing;
• pricing accuracy;
• contract generation;
• payments; and
• inbound logistics.

Driscoll noted a resistance to cloud-based technology often stems from a fear that the technology isn’t as secure as simply using a server within your scrap yard, but in fact, a cloud-based solution comes with enhanced security because it “means there is no single point of failure,” he said, using the example of physical damage to a server. If a person spills water on it or it becomes damaged in any way, those records are gone, but storing information via the cloud ensures information isn’t lost.

Modern, cloud-based solutions also allow access to information from anywhere on any device and, according to Driscoll, can lead to new contracts being made from places like the show floor at Scrap Expo, he said.

Data visualization and machine learning with modern software also means better access to data and better decision-making because of more accurate forecasting, Driscoll said, and communication between scrap yards and customers is improved with automated push notifications.

Driscoll suggests software solutions are the future of scrap yard operations as it results in a more interconnected and better-functioning market, and said, “Modern software can help you make better decisions for your business and look forward rather than just acting like a recordkeeping solution.”