How waste can become new resources
A company that manufactures switches for the white goods and automotive industries produces both the metal parts from brass and the plastic parts themselves. The vertical range of manufacture is therefore high.
Both customer segments (white goods, automotive industry) are demanding ever lower purchase prices from suppliers. The demands to reduce prices by 3 to 5% annually must be met somehow. The prices of the key raw materials brass and plastic are subject to global price fluctuations on the stock market and are only predictable to a limited extent. However, costs must be reduced in a targeted manner.
In order to save some of the material costs, the plastic waste is largely reused within the company. The waste is granulated and mixed with the new material.
The whole thing is a little more difficult with brass waste. Punching produces around 50% waste. This brass was bought up by a local recycling company in the past. The price the company received for this was, of course, rather too low.
This prompted the purchasing manager to negotiate directly with the brass plant. He was then able to conclude a contract with the manufacturer of the source material for the consistent, unmixed recycling of the metals. In this way, the company can save part of the cost of the raw material. The total delivery is now only supplemented with as much new material as necessary.
Overall, the available resources are used more efficiently, which in turn reduces energy requirements accordingly. With regard to expensive raw materials – as with most precious metals – this cycle is now working extremely well.
Think about where “waste” is produced in your company that you could potentially utilize as resources. Ask your suppliers if you can return these raw materials for a fair amount.
