Scrap Sales Aren't Always the Best Choice for Mixed Materials
Sometimes resale and refurbishment is a better path to ROI than scrap sales.
Problem:
Sears' distribution centers in Illinois, Alabama, North Carolina, and Texas were receiving old appliances after delivering new ones. The standard practice was to sell all these used appliances to local scrap yards, potentially missing out on more profitable opportunities.
Solution:
Factory Scrap conducted site visits to two of Sears' distribution facilities to evaluate the current process. We explored alternative strategies, including the refurbishment of appliances and the possibility of selling them offshore. Additionally, we reviewed the existing sales approach to local scrap yards to identify potential improvements.
Outcomes:
Our strategy led to a more diversified approach to handling the used appliances.
Approximately 25% of the appliances were successfully refurbished and resold, generating higher returns than scrap sales.
Another 50% of the appliances were sold as-is to markets in Central and South America, further increasing revenue.
The remaining 25% of units, which were badly damaged or beyond repair, were sold to local scrap yards as scrap.
Although the exact percentage improvement is uncertain, the strategy clearly maximized the value of the used appliances and opened up new revenue streams.
Conclusion:
This case study illustrates how a tailored approach to used appliance recycling can significantly enhance profitability.
By implementing strategies such as refurbishment and offshore sales, Factory Scrap helped Sears make the most of their used appliances, turning what was once a routine scrap operation into a multifaceted revenue generator.
