As we move forward, the industry will see the benefit of growing technology and how it is able to reduce the burdens of identification, sorting, reporting and anti-theft issues.
Matthew R. Walsh
It is easy to lose track of technology when your business is managing a scrap recycling facility. Software is a digital presence in an analog industry. With the changes in federal and state laws, it is here to stay. There are many choices when it comes to software, and it can be overwhelming—but it does not have to be. Let’s discuss some of the current trends and capabilities in the industry.
Cloud-Based Software
Software companies tout “cloud-based software” as the best choice for your business. But what is the cloud? Where is it? How does it work? How do I get there? The answer may surprise you. Aside from very few scenarios, “cloud based” is nothing more than a marketing gimmick. With regards to software engineering, it is absolutely the cheapest to produce and easiest to maintain, but it comes with some significant drawbacks.
Since computers first started talking to each other across networks, it was immediately understood that the most powerful computer on the network should do most of the work; that way the smaller, weaker computers would not be slowed down. This is exactly what a server is. It is nothing more than a very powerful computer, attached to the strongest point of a network (or the Internet), which does all the heavy lifting for a piece of software.
Sometime in the mid-2000s, when Internet-based server-side software was in its infancy, it failed to interest new markets. A term was created to help aid sales: The Cloud. Immediately, people began talking about “the cloud”: Where is it? What is it? How does it work? The answer is, the same as it always has since the 1980s—weaker client computers talk to a powerful server somewhere attached to a very fast internet connection. Nothing has changed except in circumstances where clustering is involved (attaching many servers together to act as one).
The concept of “cloud-based software” is great in many cases: social media, file sharing, instant messaging, online marketplaces, games, etc. However, when it comes to scrap yards, there is an inherent problem with Internet-based or cloud-based software—the Internet. Scrap yards are often zoned as full industrial, far away from residential and commercial neighborhoods and even further from any semblance of reliable high-speed internet. This one, simple fact makes cloud-based software completely unusable or even unavailable for scrap yards due to slow and unreliable Internet.
There are software platforms on the market that are “Client and Server based”. The only difference between “Cloud-based” and “Client and Server based” is the latter does not need Internet at all to operate, it runs on your equipment and your network, which is a huge advantage for rural facilities or those with less-than-optimal internet. With systems that are Client and Server based, they run at LAN speeds (up to 10,000 mbps) whereas a rural scrap yard with cloud-based software runs at Internet speeds (1 to 6 mbps).
NMVTIS Uploading
Many facilities purchase vehicles, but the legal requirements are not always clear. Current laws can always be checked at scraplaws.com, but the general rule is: all vehicles must be reported to NMVTIS (National Motor Vehicle Title Information System) and titles must be sent to the state DMV. Free options exist for both of those requirements, however, the majority of software systems can upload all vehicle information instantly without any manual entry, eliminating hours of typing per day.
Live Container Tracking
One of the biggest advancements of the last few years has been live container tracking. Fed either by GPS trackers or cell phones running special software, recycling companies are now able to see where all of their containers are, even in rural areas with no addresses. In addition to being able to pin point drop location, recyclers can now see when they were dropped off, by whom and from there provide a plethora of services for their clients. Thanks to advancements in technology in the last eight years, GPS is now practically everywhere, even though it has been around since the 1940s (it was originally created for fighter pilots in World War II to find their way to their targets and back).
Online Portal Access
Regardless of whether your software is Client and Server-based or Cloud-based; many platforms have online portals that enable your customers to view their transactions and receipts online. This feature satisfies many requirements, which your industrial or larger clients may require and removes the burden of e-mailing or faxing records. Online portal access is becoming a growing trend, and almost a requirement in certain areas, as it allows the instant viewing of records, but also in many cases: the ability to see current pricing, request service and even communicate with the yard in real-time.
ATM Machines
Scrap facilities are no stranger to crime. Industrial and rural locations for any business are targets to thieves because of their distant proximity to residential neighborhoods. Often, criminals will come in after hours and rob safes, cash drawers; or even during hours, rob employees handling cash. ATM machines over the last few years have become a normal in the scrap industry. ATM machines provide a layer of employee security as they can safely hold up to a quarter of a million dollars in cash at a time. When the machines are low on cash, they can be reloaded during non-business hours or by a secure cash handler like GARDA. Occasionally, theft is an inside job, involving employees and even a coordinated effort by managers of a scrap facility. In these instances, ATM machines can provide a massive safety net to scrap businesses. For example, some ATM machines1 e-mail and text-message owners and managers when a scrap purchase seems unscrupulous or is over a pre-set payout amount. Managers can APPROVE or DENY that payout after seeing transaction details and images, much in the same way bank accounts handle suspected fraud cases.
Worldwide Internationalization
As soon as it became widespread, the Internet showed no bounds. A small home-based business in Kentucky could now do business with India, China or UK. Virtually anywhere technology existed, so did opportunity. Local scrap yards are often locked into dealing with the larger yards around them, which control the lower market. Software for recyclers has seen a revolution in which platforms are now becoming internationalized, for multi-language, multi-currency and most of all multi-national trading. Booking sheets and container seals are a standard for anyone located within 1,500 miles of a railroad or a port. Thanks to language-neutral and internationalized software, communication with other countries is not an issue.
Artificial Intelligence
There are many upcoming trends in scrap software, aside from those discussed in this article. The largest on everyone’s mind is artificial intelligence. As it grows, the recycling industry will undoubtedly see a massive change within the next six to 10 years. We are currently working with the city of Los Angeles to build the world’s first artificial intelligence system for recycling facilities. Using a custom deep learning engine, it is presently able to weigh loads while recognizing truck drivers and trucks separately (as they may alternate). The AI is also capable of recognizing different materials using optical and XRF technology. The system can even recognize different sizes of bottle and can containers as well as discerning between recyclable and non-recyclable waste, automatically integrating into MRF characteristic studies and, ultimately, saving the city potentially millions of dollars and extending the “end of life date” of landfills. AI is unique because, unless it is programmed to, it does not remain stagnant, it learns and grows with time. This is not a frightening concept like something from science fiction; it just means the software will make fewer mistakes because it has more understanding for comparison.
Without a doubt, the 2020-era of technology will be absolutely astonishing in every capacity. Heavy industry will see the benefit of technology as it grows and is able to reduce the burdens of identification, sorting, reporting and anti-theft issues.
Matthew R. Walsh is a Software Engineer for Nexus Recycling in Los Angeles, CA. He developed the NEXUS Recycling Management system in 2008, which now services nearly 800 installations nationwide. Matthew can be reached at (813) 333-1112, e-mail [email protected] or visit www.nexusrecycle.com.