Businesses that buy, sell and transport secondary raw materials use scrap trading software to manage processes such as inventory, invoicing and customer relationships. The software landscape is changing however and the $315b global recyclables trade is increasingly relying on more sophisticated network technologies to join up the international supply chain using live data and third party integrations.
A new generation of scrap trading software
Most legacy scrap trading software is focused on helping staff with back-office activities. Newer scrap trading technologies automate many of these tasks, minimising the scope for human error. Automating data entry protects the trader’s profit margins from the extra costs that arise from compliance errors and logistics failures. Smarter data management can also provide the trader with useful insights to manage risk better and improve their trading strategy.
Longer term, the gradual elimination of paper documents and processes in international trading should encourage the growth of secure trading networks where recyclables can be bought and sold between trusted partners along an electronic chain of custody. When this happens, traditional software is likely to be replaced by shared technology platforms that have more in common with regulated exchanges of the kind that have long been used for trading precious metals, for example.
What materials do scrap trading software handle?
Legacy scrap trading softwares tend to specialise in a defined category of materials such as waste plastic or scrap metal. Modern softwares can be fully customised to align with how the clients works and what commodities they are trading. The ability to handle pretty much any physical commodity that goes over a weighbridge, and to accommodate most of the processes that go with it, extends the market for scrap trading software beyond non-hazardous waste to agricultural products, for example, such as grains.
What are the features of AI-enabled scrap trading software?
Legacy software relies on human data entry, while modern software exchanges live data with third parties such as shipping lines via API technology. Modern commodity trading systems also use AI to read and manage invoicing, connecting directly to accounting software when required.
Older softwares don’t synchronise data. This means that changing a detail on an order, for example, can create inconsistencies elsewhere in the system, causing a variety of problems across compliance and accounting. Modern softwares avoid this by having all the data in one place, which can be updated with a single entry that updates across the whole system. This ensures more reliable information for reporting, and enables the automation of documentation.
Modern media management
Emailing photos is still a feature of many legacy softwares, whereas modern systems enable digital media management where large volumes of photos and videos can be easily exchanged, stored and searched based on their associated metadata. Older systems cannot be readily customised to suit the specific workflows and processes of individual businesses. Modern approaches ensure flexibility and the ability to handle digital innovations such as electronic bills of lading, which represent the future of physical commodity trading.
What are the benefits of scrap trading systems?
Modern commodity trading systems automate the repetitive tasks that AI does best, enabling people to focus on higher value tasks. They drive productivity, providing teams with powerful tools that enable businesses to scale without a corresponding rise in headcount. Storing all the data in one place gives traders the benefit of insights into how their suppliers and customers are performing. So if a supplier is consistently delivering underweight loads, for example, the system can flag this up, enabling the trader to adjust their calculations or address the issue directly.
