Supply chain management logistics for scrap metal company
The purpose of this paper is to explore all market factors affecting supply and demand for scrap metal. It provides an analysis of iron production industry, in which is determined that the demand for scrap metal is driven by the steel, automotive and construction fields. There have been some personal contacts with people involved in the scrap metal trade to identify the type of equipment, the cost and manpower required and generally how the trade of scrap metal works, from the collection, processing and transportation for the export of raw materials. The results from these personal contacts show that such businesses are capital intensive and require more equipment than labor in the production process. Also the demand for scrap metal is driven by the steel, automotive and construction industry so when they deal with recession problems, trade of scrap metal also faces problems. Given the exploratory nature of the research there is potential for further studies on the analysis of each product separately to confirm the generalization in findings. The existence of a link between iron industry and trade of scrap metal provides a possible route for those wishing to improve their business performance, focusing on the steel, construction and automotive industry. The exploratory research in this paper focuses on the connection between steel and scrap metal trade and the implementation and management of these firms, which has received little attention in previous studies.