Behind the scenes: the right software can streamline a recycler's management tasks - Recycling Software

Recycling Today, Oct, 2001 by Melissa Goodrich

To a recycler, time is money. The more efficient an operation can be, the better. While operators may look to have faster throughput for a shredder, or denser bales, often software that can be used to manage a business can be an afterthought. Yet, what goes on in the office is just as important as activity in the yard, making the right software package a vital part of a scrap operation.

HIGH-TECH MANAGEMENT

As with many scrap recyclers, Tri-State Iron and Metal, Texarkana, Ark., was using a software package created in-house by a local accounting firm. Although the program was functional, says Howard Glick, treasurer, it wasn't meeting the company's needs. Streamlining data and eliminating double entry were two concerns the company had with the program.

"A real key to us was to use it as a tool to manage our business," Glick says of software the company was looking to purchase. "The other thing we were looking for was good reports to use as a management tool."

Even though Glick says the company was tightening up financially, the initial cost of a new software program was a good investment to increase efficiency. "It was a good investment money-wise at a time when we were looking at budget constraints," he says. "We felt it was a good time to do it when it was slow so we could get everyone trained. Ultimately it is function of cost and trying to control your cost. That was really the driving thing for us to justify the expenses of the investment."

Software packages designed specifically for the scrap recycling industry are sophisticated business management tools continuously evolving. Some of the advantages offered by several companies include: detailed reports, price comparisons, bar coding systems and more accurate data. For vendors of these products, getting recyclers past the initial skepticism can be hard, as often they may not realize what functions they were missing.

There are many off-the-shelf programs designed for business use and accounting, but the nature of the scrap industry doesn't make these programs the best choice for recyclers, says Larry Smith, Shared Logic, Holland, Ohio. He says that having an accounting system integrated with their scrap software is important to many recyclers. "Even though you can buy an off-the-shelf accounting package, it is not the same as having your own integrated package."

There is an increased interest in having more control and involvement as far as business management tools provided by software, he says. "They want to get involved with software that addresses all of the operational aspects of their business, not just managing the purchasing and shipment of commodities. It has gone well beyond that. They now want to get data from the system presented in ways that allow individuals, such as traders, to make instantaneous decisions that affect the bottom line."

Customers are now requesting to automate other aspects of the business, including dispatching, handling and comparisons of data, Smith says. They want to take advantage of all of the data that is collected and to use it to their best ability. They also want to take technology outside the office and into the yard, he says. "As technology has caught up with us, we are seeing more and more customers wanting to take technology out into the yard to produce bar coded tags. Only recently has there been more emphasis on the ability to tag material."

The continuing drop in prices for computer equipment is facilitating this desire, he adds. "With the technology being cheaper, it makes more sense for customers to consider purchases."

UNSEEN BENEFITS

Often, businesses don't realize the benefits of using a specialized software program and are surprised to learn how much easier and more efficient operations can be.

"They might not realize they need it until they get it," says George Kane of 21st Century Programming, Long Beach, Calif. "In a manual accounting system it is hard to track down to the transactional level what has occurred."

Pacific Iron and Metal, Seattle, saw increased efficiency once a new software system was implemented. Before purchasing updated software, the company had one employee who knew the majority of procedures for taking inventory each month. That employee left the company and it was left in a major bind, says Bruce Glant, owner of Pacific Iron and Metal.

"We had a situation where the only person who knew how to do this anymore left the company and we realized that we were very vulnerable. We needed something and we finally made the decision," says Glant. "We had no choice."

That scenario is not uncommon, says 21st Century Programming's Dave Kane. "People fall into the trap of having one person who knows how to use a program, and they are completely reliant on them doing it."

Results from using a new software system at Pacific Iron and Metal have been impressive--the company was able to eliminate double entries and stream-lined inventory processes so much that two positions were eliminated because of the increased efficiency. "It allows us to ship and record inventory and invoice all at the click of a mouse. We used to have three separate reports. It allows you to do so much more and so much faster and have them all tied together."