Scrap metal recycling is an industry that requires a great deal of expertise and experience to develop greater business efficiencies and maximize profit margins.
Volatile markets require constant monitoring to ensure companies achieve the best purchase and sale prices. They’ve got to deal with detailed logistics and keep employees safe, while yard inventory has to be efficiently managed.
From the very largest multinational scrap metal businesses to the small family yard, the most successful nonferrous and ferrous recyclers need a comprehensive enterprise management software solution to provide them with the necessary process automation, visibility and control of business operations.
The AMCS Platform has a proven track record of delivering better business outcomes for high-value commodity recyclers in the fiber, organics and plastics sectors.
Greater depth of domain functionality in AMCS Platform now supports specific requirements of the scrap metal industry in areas such as regulatory compliance, peddler weigh and pay requirements as well as real-time inventory management and valuation.
Here are the 10 reasons why scrap operators are now choosing the AMCS Platform to take their business to the next level.
1. Master transport operations to control and reduce freight costs.
Transport operations are one of the key cost centers under a company’s direct control, and greater automation in this area ensures optimizing the planning and execution of collection schedules across a fleet.
The AMCS Transport Management System is the most advanced logistics solution, providing a range of planning tools such as built-in digital maps, distance and time calculators, on-demand optimization services, real-time tracking, driver mobile and telematics.
It covers all scrap collection models like luggers, roll-off and round collections with flatbed trucks for packaged scrap.
It provides comprehensive detailed tracking of internal transport costs by vehicle type, as well as those of third-party haulers that companies may use so they can track the cost per load and margins.
2. Actively track and manage container assets to increase return on investment
Container assets like roll-offs are expensive, so it is essential to protect this investment and maximize use. This ensures sufficient container inventory for deployment available and guarantees containers are turning over regularly enough to generate a financial return.
The AMCS Platform provides this visibility and control and also can automatically trigger rental changes to ensure that these container assets are generating a return for businesses at all times.
3. Maximize visibility on inventory and valuation to make smarter decisions.
With more than 500 separate inventory classifications in a yard at any one time, it is critical to understand every aspect of inventory and its valuation at a detailed level.
How much inventory is there in each classification? What is its current status? Where is it located? How much has it cost to produce finished goods? What gross margin can I forecast based on my cost valuation and the likely sale price?
Access to this information will allow companies to make smart and timely decisions that impact businesses, such as managing cost base and margins.
AMCS’ inventory management solution provides companies with real-time inventory valuation based on up-to-the-minute access to inventory data, including all relevant costs based on a weighted average cost method. This means companies know what is available to sell and at what cost, allowing for gross margin projection.
It tracks and records all costs on a weighted average basis across a monthly reporting period.
Moreover, the AMCS Mobile Yard Management module provides a record of metal inventory in the yard that is constantly updated with our new cycle counting feature, so companies have accurate and reliable information to rely on.
Mobile Yard Management helps inspection and grading of material, allowing adjustments to be made for nonconformities. This means the charging of extra processing fees can be automated when the material does not meet the desired specification.
4. Automate contract and price management to drive margins.
The AMCS Platform pricing engine offers best-in-class configuration and automation to protect and enhance margins.
Key pricing features for the scrap industry include:
- Pricing linked to agreed base rate or market index less a cost per metric ton offset. The estimated price shown is displayed before pricing is finalized. This reduces administration, risk of errors and allows companies to track a real-time pricing position.
- Tiered pricing to incentivize sellers to provide optimal agreed tonnage in container loads and agreed-on tonnages over a billing period.
- Material grading and inspection adjustments captured on the Mobile Yard Management system will automatically update pricing.
- Multilevel hierarchical pricing engine designed to ensure that companies always have access to the correct price for a client for each scrap type defaulted up to four levels on our price hierarchy.
Optimized price automation eliminates the administration, costs, delays and errors involved when carrying out pricing semimanually.
5. Automate and integrate scrap recycling value chain
The AMCS Platform automates and integrates each sequential process in the recycling value chain, guaranteeing companies have visibility of enterprisewide data and control across all operations.
All information that is recorded or entered across the platform, be it in a customer/supplier portal, at the scale or in a mobile yard application, is updated in real-time and available to all users.
The full scope of the solution includes:
- transport and freight;
- scale weigh and pay;
- grading and inspection of material;
- contract and price management;
- invoicing, finance and business intelligence;
- production planning and management;
- mobile yard management;
- inventory management and valuation;
- material sales;
- demand planning;
- outbound logistics;
- digital engagement with suppliers and haulers; and
- presenting the AMCS Metal Recycling Solution.
6. Engage digitally with haulers to deliver administration savings.
Most scrap operators make use of third-party haulers to manage collection of scrap as well as deliveries of finished goods. Much of this engagement with partners is done via manual, time-consuming processes like email, spreadsheets and over the phone. These processes can lead to large administration costs, potential manual errors, rekeying mistakes and end-of-month delays on billing.
The AMCS Hauler Portal allows companies to fully digitalize the exchange of orders, data and billing between a company and third-party haulers.
All orders are digitally exchanged, including confirmations, tickets and invoices using the portal, which stores all current agreed prices, licenses and other details.
This control and automation allow companies to operate an asset-light model by making efficient use of third-party haulers.
7. Engage digitally with scrap suppliers and customers.
Our scrap supplier/customer portal allows customers to view and download documentation like tickets, reports and payments. It also allows them to request services on their roll-offs with 24/7 self-serve, reducing contact center calls, emails and associated costs and delays.
8. Grow business on the scrap industries only true SaaS-based enterprise solution.
The AMCS Platform is a SaaS solution (subscription cloud service) designed to offer the highest levels of scalability, security and availability for large enterprise customers. It has a modern and intuitive user experience, easy to navigate with guided workflows designed around the roles of key users, such as transport planners, scale operators and graders. It is designed to maximize user productivity and ensure rapid user adoption. The browser interface can be operated securely anywhere, on any device at any time, boosting the productivity of remote and mobile workers such as drivers, sales, staff working from home and yard staff.
This is a solution designed to operate across multiple yards, territories and countries with multicompany and multicurrency support.
9. Boost the productivity of yard staff by empowering them with our mobile yard management application.
The AMCS Mobile Yard Management application is designed to automate all aspects of the inspection and break down all scrap loads. It allows the operator to take images of each load and break down the material by percentage and weight. In addition, the user can make adjustments that can lead to financial adjustments (such as changes to the price paid or charged), reflecting a reclassification of the scrap and extra processing charges.
The AMCS Mobile Yard Management application is integrated with the AMCS Platform, so data such as material images and price adjustments automatically are updated across the system and available to all users such as suppliers and finance staff.
10. Leverage unrivaled AMCS global scrap metal recycling expertise to drive best practice automation.
The AMCS Platform reflects our experience in serving more than 600 scrap operators worldwide that range from global multinationals to smaller family-owned enterprises.
We have a global scrap metal software team with more than 100 development staff working on the AMCS Platform with many decades of experience in the sector.
Investing in a three-release per year development cycle ensures that our clients are primed for innovation and digital transformation.
This deep sector experience is complemented by a global resourcing commitment to support smooth deployment and ongoing support of our solutions to ensure the success of our customers.
AMCS understands that the scrap metal business is complex, but we also know how to make it simple to maximize margin.