The corona-virus has radically changed the business world. In Germany sales in the industrial sector are expected to decline by 80 % in the financial year 2020. This is why companies must now more than ever make full use of their savings potential in order to survive in these uncertain times.
This raises the question of where savings can be made at all.
Companies see the greatest potential for savings especially in the area of human resources. Due to the lack of orders, there is no more work for many employees, these employees then cost the company to much money and therefore have to be dismissed subsequently.
Savings can also be achieved by renegotiating with suppliers. The raw material is bought cheaper in order to save costs. However, as a result the quality of the raw material and also that of the finished product can suffer greatly.
Many companies also see potential savings in their vehicle fleet, freight forwarding and energy costs. In pandemic times, even the costs of office equipment is taken into account. One is looking for potential savings with cartridges and copying paper, even with toilet paper one is looking for a cheaper alternative.
But what is forgotten by all is the area of waste and scrap. Significant savings and additional yields can be achieved here. The waste and scrap sector accounts for about 15 - 20 % of a company's total turnover. However, many people are not aware of this, as the word "waste" has been very negatively anchored in peoples minds for years.
For a better understanding, we have added a real example of a medium-sized german punching company:
Example:
Punching company with 360 employees
Automotive supplier
Material usage: steel// stainless steel // copper // aluminum
Sales: 62,5 Mio. EUR
Scrap income: 10,58 Mio. EUR
scrap: 11.578,6 mt
Added value through optimization: 258.000,- EUR
In this example, it is clear that a company's waste or scrap has a significant additional yield. However, because waste has been one of the most insignificant points in a company for years, no one is aware that there is the greatest potential for savings.
We have been dealing with waste and scrap since 1997 and are looking for savings and additional yields in these areas. We help companies to develop an awareness of the fact that there is also money in the waste and scrap area.