Ever noticed how your commute happens on autopilot?
You leave home at more or less the same time every day. You take the same route. And, you probably park in the same area (or alight at the same bus or train stop). All without thinking about it.
Before you know it, you're even stopping at the same coffee shop and placing the same order on your way in. And that's just one example of the many routines we embrace every single day.
There are deep (and valid) psychological reasons for this behavior. Routines reduce our mental load and give us certainty. But there's at least one area where sticking with what you know isn't in your best interest: selling manufacturing scrap.
Here's why you'll probably lose out if you work with the same local metal scrap dealer long term, and a look at how Metaloop's all-in-one solution makes selling manufacturing scrap easier and more financially worthwhile.
For most manufacturing companies that sell metal scrap, sticking with the same dealer long-term often boils down to trust.
While the relationship may not be perfect, the dealer is local and, so, easy to get a hold of. They make regular pickups (mostly) on time. And, they're paying reasonable prices for your metal scrap.
Why change something that works, for what might feel like a leap in the unknown with a digital provider?
Well, for one simple reason: you probably aren't getting the best price possible for your metal scrap.
Local dealers are typically one cog in a larger machine. There can be as many as seven or eight middlemen between you and the end buyer, each of whom takes a cut that ultimately comes out of your profits. According to our research, 60% of SMEs lose out when they work with the same metal scrap dealer for five years or more.
But even if your dealer assures you that you're getting the best price for metal scrap possible, the reality is that there's no way you can verify this. The lack of widely accepted industry standards means it can be difficult to understand how different dealers work out their prices, and to compare like with like.
While a long-term relationship with the same metal scrap dealer means you'll likely lose out on price, it has two compelling benefits: stability and peace of mind.
But what if you didn't have to compromise? What if you could ensure pickups, handling, and other logistical issues were taken care of, and that you're also getting the best price for metal scrap possible?
Metaloop's all-in-one solution is designed to do exactly this.
You'll have a single point of contact who'll handle contracts, pickups, and other logistical issues, just as you do when you work with a local metal scrap dealer.
Metaloop also takes on the fulfillment risk. Once we pick up your metal scrap, we're responsible for delivering it to the end buyer, and for any issues that might arise, such as shipping delays or materials not meeting specifications.
But Metaloop is also radically different from local dealers in three key ways. And it's these differences that enable us to guarantee you'll always get the best price for metal scrap.
Metaloop starts every relationship by working with the seller to evaluate and optimize their production processes.
"We'll do a thorough assessment," explains Metaloop's CEO and co-founder Jan Pannenbäcker.
"What types of metal scrap does the seller produce? How do they store them? How do they sort them? How much aggregation do they do on site? Could they do more? Using different collection systems or vertically integrating different parts of the operation, for instance?"
Improper sorting and storage, and not aggregating sufficient volumes, are two of the most common reasons manufacturers lose out when they sell metal scrap. So, educating clients on these issues can make a huge difference.
Case in point, a Belgian packaging manufacturer with a global presence, lacked a standardized approach, with different sites using different strategies, processes, and tools for storing, sorting, and selling metal scrap.
Metaloop helped them streamline their processes, boosting efficiency and giving them more visibility and control over their metal scrap recycling operations.
Rather than being based in one specific location, Metaloop relies on a large network of local partners across the globe.
This enables us to aggregate and deliver large quantities of metal scrap on demand using a just-in-time model, which makes us attractive to large foundries and smelters who pay a premium for a regular, reliable, high-quality supply.
Imagine an airport that handles hundreds of international arrivals and departures each day. This wouldn't be possible without the control tower. Air traffic controllers monitor the position of every plane in real time, managing traffic, guiding them to the best route, and ensuring there are no accidents.
Metaloop's matchmaking technology works in a similar way.
On the seller side, it aggregates metal scrap from similar sellers, even if they're based in different regions or countries.
It then matches these sellers with buyers who are looking for scrap that has those exact specifications, and creates a delivery schedule through the most cost-effective route. This process creates economies of scale that make it possible for us to offer much better prices than local dealers, who don't have these capabilities and, so, often have to sell to other middlemen.
Working with Metaloop enabled one of our clients, a medium-sized company that produces offset plates, to boost metal scrap revenue by €48,000 each year: an 8% increase over what they were getting from their local dealer.
As a digital-first operator, Metaloop's overhead is significantly lower than that of a local dealer that aggregates and processes metal scrap on their own site and has to sell it on.
More to the point, we sell direct to end-buyers. This means you're only dealing with one middleman, instead of two or more, so more money goes in your pocket instead of being paid in fees and commissions.
Metaloop's all-in-one solution also comes with a suite of tools designed to support your operations and increase transparency.
Using the Metaloop portal, one of our clients, an automotive supplier specializing in sealing systems and components, was able to tender their metal scrap Europe-wide, plan deliveries in advance, and access documentation from one place.
And another client, a top tier aluminum manufacturer, was able to secure more working capital and increase capacity utilization from 70% to 89%.
Former US president Barack Obama famously joked that, once his second term ended, he'd open a shack that sold only white T-shirts in size medium, so he wouldn't have to make any decisions ever again.
While managing the storage and sale of metal scrap is hardly the same as being America's commander-in-chief, it's still stressful, laborious, and time-consuming. Which is why settling into a long-term relationship with a local dealer can be so appealing.
But why sacrifice revenue for convenience when, with Metaloop, you can have both?
Want to learn more about how we can make your life easier while ensuring you get the best price for metal scrap, every time?
Book a free, no-obligation chat with our specialist, Patrick.