PAPER RECYCLING CONFERENCE: Talking Specifics

Ralph Simon of SP Recycling Corp. moderated the session, which included panelists Doug McLeod of Norske Canada Paper Recycling Division, Giles King of Secondary Fiber Inc. and Kevin Duncombe of Western Pulp & Paper.

Simon set the tone for the session, saying that it would focus more on “how the buyer and seller relationship should work,” rather than on the particulars about grade specifications as outlined in the Institute for Scrap Recycling Industries Inc. (ISRI) Scrap Specifications Circular. He also reviewed the procedures for domestic transactions, which covers the United States and Canada, and export transactions, as spelled out by ISRI.

In terms of the relationship between buyer and seller, Simon said that it is becoming increasingly important for suppliers to understand the consumer’s quality requirements prior to shipping material. “The panel will review differences between accepted industry standards and practices and the real mill-specific specifications,” he said.

“Dependability is key on the part of buyers and sellers,” Norske Canada’s McLeod said, adding that suppliers that are dependable deserve a mill that is dependable.  “I try to treat all of my suppliers the way I like to be treated…with respect, fairness, equity and integrity.”

Despite his philosophy, McLeod said, “Developing trust among suppliers was more difficult than I thought.”

However, McLeod persisted, maintaining upfront communication with his suppliers, which lead to “huge dividends” for Norske Canada, he said.

As part of its open communication with suppliers, Norske Canada reports problem loads immediately; sends detailed reports on all loads received, including pictures and sample of problems; faxes out weights daily; makes sure the truckers are treated well by offering around-the-clock unloading; and sending checks out on a regular schedule.

In addition to keeping the lines of communication open, McLeod said Norske Canada plans events for its suppliers, such as cruises and an annual poker tournament, and honors its best supplier with an annual award. He added that Metro Waste of Toronto has one three out of the last five years.

Secondary Fibers’ King spoke about using Internet technology to facilitate communication between buyer and seller and to help train suppliers on a mill’s quality requirements.

Secondary Fibers’ Web site includes information for testing quality as well as customer grade specifications and additional mill requirements.

In order to get the specifics right, King recommended that mill customers perform supplier visits or lab evaluations and prepare a mill specification document and loading diagrams. For suppliers, he recommended safety documentation, documenting mill specifics and taking digital photos of loads.

Western Pacific’s Duncombe said buyers and suppliers could communicate most effectively by approaching their relationship as a win-win situation for both parties.

As far as ISRI’s Scrap Specifications Circular is concerned, Duncombe said, “This document is a great tool to utilize all through the process to aid us in every aspect of our business; communicate it daily!”

He also said that claims related to market conditions “are a reality,” and that price and quality have an inverse relationship.

In order to achieve a “happy ending,” he suggested using technology and beginning communications early and taking it “to the kindergarten level.” Duncombe added, “Hold up your end, and the other end will follow suit.”