Case Study 1
A medium sized manufacturer of aerospace components generates half a million pounds of wet aluminum turnings and clippings per year from production. For years they had been using the same local scrap yard to remove and purchase this scrap.
The manufacturer did not know how many pounds of metals were actually removed, had no idea if they were getting the correct price for the metal and had no process to audit payments back to the loads of material being picked up by the scrap yard.
Blue Star got involved in managing the process for our client. We visited and interviewed all of the potential buyers in our client's geographic area and then distributed a bid package to those scrap companies that were qualified to process the scrap. After a final negotiation with the various bidders a new scrap buyer was selected, based on the quality of service to be provided and the price to be paid for material.
Blue Star implemented a tracking program for all loads of material removed from our client's facility. That process verifies that each load is weighed and paid for in a timely manner. Blue Star returns a monthly check to our client, along with a report about the amount and type of material recycled, that can be easily audited.
The result is that revenue returned to our client from the sale of their scrap metal increased by 250% over the previous 12 month period and they now know exactly how much scrap material is produced in any monthly period.
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