Macklin Consulting associates have participated in several scrap reduction initiatives at HVAC/R companies as well as other consumer goods manufacturers that consume thousands of tons of steel on an annual basis.

These companies are in the business of producing the best quality products when their customers want them at the lowest price possible. These companies are not in the business of scrap salvage recovery. However, as part of the manufacturing business, they do have to manage what they throw away and do try to maximize the monetary compensation for their recyclable scrapped raw materials.
 

Because salvage is not the primary business, the recovered dollars are sometimes looked upon as “gravy” and therefore, the salvage recovery process is not optimized and scrap pounds are not judiciously weighed or sorted by substrate (or material type). The result of this is the salvage company giving the lowest possible value for the scrap they haul away from the manufacturing site.

Most manufacturers rightly devote most of their resources to getting the saleable product out the door and therefore assign very few resources to managing the salvage process. This then leaves little time to the reconciliation of the pounds they are being paid for by the salvage companies. The manufacturers end up simply “cashing the check”.

Our customers are monitoring their salvage process with an effective tool we installed at their manufacturing locations. They log their scrapped raw materials onto substrate specific logs. They weigh each and every scrap hopper before they dump their sorted contents into the salvage companies’ trailers.  They also have the weights of their salvage companies’ trailers. Having those allows our system to reconcile each invoice and accompanying check to make sure they got the amount they were supposed to get based on their contract terms.

Click on the video at the top of this page to tour one of our Scrap Hound - Salvage Recovery Management programs to see how it could help you maximize the dollars you are unfortunately wasting in producing your own quality parts. Naturally, Macklin Consulting would like to help you reduce your manufacturing processes’ scrap and worry less about maximizing the dollars you recover from your salvage company. However, if your products are laden with engineered or designed, unavoidable scrap, then you will want to check out this video.