25% Revenue Increase for a Ford Assembly Plant
What do you do when you think your scrap volume isn't enough to get good value?
Problem:
The Ford assembly plants in Kentucky (KY) and Missouri (MO) were dealing with low scrap volumes and were unsure how to optimize their scrap management processes.
Despite the relatively low volume, the client recognized that there was potential for improvement and sought consulting assistance to enhance their scrap operations and increase profitability.
Solution:
Factory Scrap conducted a thorough analysis of the current scrap grades, flow, storage, and sales processes at both plants. During site visits to the KY and MO locations, we identified key areas where efficiencies could be improved and revenues increased, despite the absence of scrap processing equipment due to the low volume.
Outcomes:
At the Kentucky plant, we doubled the number of scrap containers from 3 to 6, allowing for better organization and storage of scrap materials. Additionally, by renegotiating pricing terms, we successfully increased scrap revenue by 30%.
In Missouri, our strategy focused on labor optimization, leading to a significant annual labor cost reduction of $70,000 and a 25% increase in revenue from scrap sales.
Conclusion:
This case study demonstrates how even low-volume scrap operations can benefit from professional consulting. Factory Scrap's tailored approach not only improved scrap storage and revenue at the Kentucky plant but also achieved significant labor cost savings and increased profitability in Missouri.
Our expertise in scrap process optimization and marketing ensures that clients, regardless of volume, can maximize the value of their scrap materials.
