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ERP and the business of recycling

Teng Fang Yih | April 28, 2011
How a Norwegian provider of recycling services avoids costs and maximises growth potential just by implementing the right ERP system.

In China, we have a slightly different approach. We have a similar factory in terms of the industrial process. It’s about half the size of what we’ve installed in Singapore. They have a capacity of 20,000 tonnes per year, for example. They serve also one customer there–Sheng Da [Photovoltaic Materials Co. Ltd]–but...we will service multiple customers, and so our plan is to bring new customers into that factory. Then in Norway we have what you might almost consider a pilot scale manufacturing facility. Their volumes are in the order of 5,000 tonnes per year processing. They have a customer they serve regularly there called NorSun, a Norwegian solar wafer manufacturer.

How soon did you start seeing operational benefits?
We’re the first Metallkraft operation to implement ERP. So it’s an opportunity for Metallkraft to enter a learning experience to get ERP in place [before moving onto implementing it] in both China and Norway.

Since we brought the K/3 solution in, right from the beginning and the start of operations, it’s been less about a specific cost saving from a base line and more about setting ourselves up for being successful in cost avoidance. So, for example at the moment, I process about 250 tonnes of material per week. REC, our customer, consigns to us at any given time, as much as 500 tonnes of material and that’s material that is on the order of Euros per kilogramme. So any loss of that material, any uncertainty about where that material is going, translates into a possibly huge scrap cost for us and other costs, replacement costs et cetera. So, from the beginning with Kingdee in place, we’ve been able to maintain a very high level of accuracy, more than 95 percent in terms of keeping track of all the material that has been moving to the factory and to me that is a major instance of cost avoidance. I think if we tried to do this manually, we would have a much higher material loss and uncertainty about where our inventory is for example. That’s probably the best example that I can give you.

 

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