Good software anticipates change

John Underwood has spent several decades in the recycling-specific software business, having co-founded the former Systems Alternatives International (SAI) in the United States in 1981. (SAI was sold to United Kingdom-based Brady Plc in 2012.)

At the beginning of 2018, Underwood and Germany-based RECY Systems AG announced the formation of RECY Systems North America LLC, which has two locations in the U.S., including one in Underwood’s home town of Toledo, Ohio.

Underwood describes RECY Systems AG, led by its founder and CEO Bernd Klarman, as “by far the largest supplier of specialized business systems to the recycling industry in the world,” by several measures, including sales, installations, number of languages supported and the breadth of applications offered.

In the interview below, Underwood addresses some of the current and potential ways in which recycling-specific software can help business owners and managers in the era of rapid technological change.

Recycling Today (RT): What functions in the recycling workplace are best addressed with recycling industry-specific software (inventory management, purchasing, trading, etc.)?

John Underwood (JU): From my experience it would be easier to answer this question by describing what business functions can be more easily or successfully addressed with standard business applications for recycling companies.

Standard applications for payroll, fixed assets, general ledger and accounts payable (for non-trade transactions) can satisfy most of the requirements recycling organizations have in these areas. However even some general ledger systems may fall short if there is a requirement to include weight information in financial statements.

Standard applications for accounts payable and receivables systems many times require modifications or front-end systems to adequately or efficiently handle the transactions commonly found in most recycling operations. There are numerous reasons this is the case. There are many different specialized business processes and services recycling companies may be engaged in. The more diverse [materials they handle], the more need for industry-specific capabilities in these financial systems.

Another factor that adds to the need for specialized systems in this area is the number and types of locations a recycling company may operate. Also, a factor is the potential need for the system to support separate legal entities, and variable localization requirements when operating in multiple regions and inter-national business requirements for multi-national organizations.

RT: What are some signs that a small, one-location recycler or trader is ready to invest in recycling industry-specific software?

JU: I am certainly not the best person to answer this question. The majority of my career has been focused on supplying business system solutions for recycling and steel companies that would be considered to be mid-size to large organizations in these industries. However, I have always enjoyed speaking with smaller recycling organizations that are considering improving their business systems.

In this regard I would say there appears to me to be two different times smaller organizations consider investing in systems to help them run the business.

The first occurs when an entrepreneur or organization has successfully started a small recycling business with little to no automation and realizes they need help managing their transactions. Often times the focus is on the purchasing side of their business. Fortunately, for these organizations, there are a number of providers that offer solutions that meet this need.

When I have had the opportunity to speak with individuals or organizations at this stage I recommend suppliers I believe offer the best solutions for this purpose.

The second scenario occurs when a smaller organization becomes more successful and realizes to become more competitive they need more out of their system then simply processing transactions.

I’m always grateful when one of the companies that I spoke with originally has grown and begins to understand the value an industry-specific system can provide them.

RT: What steps can recyclers take to ensure they are getting the most out of the reporting capabilities of their software?

JU: I often use the term “actionable information” when discussing the benefits good management reports should include. Simply put, every management report should provide timely, specific information that a manager can use to identify, alter and or correct issues proactively.

As an example, a reporting application that auto detects and reports when regular suppliers’ anticipated volumes are dropping is far more valuable than a purchasing report that recaps volumes at month end.

If the system a recycler utilizes doesn’t provide them reporting applications that are actionable, they are not getting the most out of their system.

RT: To what extent is it now considered standard to access recycling operational software via mobile devices? (How sweeping has this change been?)

JU: Mobile applications are now part of our everyday life. Almost every adult and child over the age of five has one or more of these devices. There are millions of applications available that run on these devices. The recycling industry is not an exception to this trend.

Progressive systems suppliers to the recycling industry have taken advantage of mobile technologies to enhance their applications. These include load inspections, grading, deductions, image capturing, production data entry, after-hours weighing, barcode tag reading, CRM (customer relationship management) applications and remote management reporting. The wider the footprint a systems supplier’s suite of applications covers, the more opportunity they and their clients have in taking advantage of mobile applications where applicable.

RT: How has any gravitation toward conducting business on tablets and smartphones changed the interface aspects of recycling software? Would a person who has been away from the industry for 10 years recognize the current iterations of the software?

JU: Over the last 10 years, as mentioned in answer to the previous question, a growing number of mobile applications now assist recyclers in running their operations. Today there are limitations on both smartphones and tablets that make them impractical for some applications.

The physical size of the displays for most smartphones is not ideal or simply impractical for robust or complex reporting. Tablets overcome this issue due to their larger screens. However, applications that require entering large amounts of data are not ideal for smartphones or tablets.

Voice recognition capabilities are constantly getting better. For this reason, I have no doubt in the near future data entry applications will become available that will overcome the need for keyboards. Until then, like every other business, systems for the recycling industry will need to have traditional back office applications running on desktops and laptops.

RT: How do companies like yours adjust to government regulations that can vary greatly by nation, province or state? What role do your customers play in keeping you informed of new compliance measures?

JU: When I was invited to review the RECY Version 6 applications suite last year I was anxious to understand how they addressed this issue, especially since RECY clients have operations in over 40 countries and run RECY systems in over 20 languages. Handling the localizations and compliance requirements seemed daunting.

I was pleasantly surprised and extremely impressed in the way the RECY system was designed to manage this process. I will not offer a lot of detail about how this is accomplished as I consider this a trade secret. I can say that to my knowledge RECY’s ability to satisfy the need to modify or enhance our systems to meet new or modified compliance or localization requirements is unparalleled.

John Underwood of RECY Systems North America LLC can be reached at ju@recy-systems.com.