What Makes a Great Auto Recycling Facility?
With the work that APS does, I am in a fortunate position to visit a lot of auto recycling facilities across Australia, the UK, Ireland, New Zealand, Europe, Asia, and the US. In fact, I visit over a hundred different auto recycling yards each year.
I see a huge range. They vary in land size, profitability, vehicle inventory, brand new purpose built facilities to ones that have been operating for over 50 years. Every one of them have unique features that either help or hinder them operationally.
But there are certain qualities of the facilities that I visit that stand out time and time again that really make the difference between a good auto recycling facility and a great one.
Here are a few common features that I see at some of the greatest facilities I’ve visited recently:
Organisation - Being well organised with clearly documented and communicated processes in place are non-negotiables. It will help eliminate double/triple handling, reduce returns rates and costly credits.
Cleanliness - Clean offices and reception areas are a given (I hope). But a clean warehouse, clean and possibly even painted floor that is swept and does not have scrap and cutoffs spread across it makes a big difference. A difference to the look but also the feel for your team. If you want to deliver quality, clean parts, the process needs to start from where they are stored and housed.
Activity - Activity breeds activity. But the really well run businesses seem to have the cruise control on. It all comes back to good processes and management. A controlled environment, customers arriving for pick ups, parts pickers methodically picking parts, dismantlers extracting parts, phones ringing. Activity is contagious.
Internal Communication - from warehouse signage to staff uniforms. Clear signage communicating values, processes, and health and safety is undervalued in a lot of facilities.
How does this affect the bottom line? It’s about efficiency, reduced friction costs, and high-value activity. The opportunity cost of doing it wrong the first time is compounded day after day if you don’t get this right, eating away at your bottom line. It’s about ensuring the environment represents what results you want.
Every facility is unique, but there are some common qualities that the best of the best, the ‘Top Guns’ of this industry do well. They are the important but often not urgent qualities that are not beyond anyone’s reach.