Challenge

The Philippines division of a global consumer goods company produces more than 15 million pounds of scrap material annually. This company has a zero landfill waste policy, leading them to recycle most of this surplus. With recycling, however, the company risks the recycled products being resold into the same markets as its "A" products, potentially eating into the company's market share and diluting the value of its products and globally-known brand.

Solution

The company engaged Liquidity Services to develop and execute a surplus management strategy that would recover value while preserving brand equity and the environment. Liquidity Services determined an innovative solution to repurpose the company's recycled products so they could be resold in different markets. By ensuring the company's "B" products don't compete with its "A" products, Liquidity Services protects the company's brand and market share.

Liquidity Services also provides the client with continual quality assurance. This ensures that internal operations and contractors comply with the client’s rigorous requirements and policies.

Results

By carefully managing the recycling and disposition processes, Liquidity Services not only preserves the client's brand equity but continually generates high recovery value for the repurposed goods. As the client's ongoing partner, Liquidity Services processes an annual surplus volume of nearly 4,000 tons of recycled materials, reselling them for an average of $1.2 million in annual recovery.

Liquidity Services is currently making process improvements at its Philippines facility in an effort to significantly increase the client's profit margins on recycled surplus. Pleased with the recycling project's results, the client has recently enlisted Liquidity Services to resell $12 million of inventory and returned items. 

By carefully managing the recycling and disposition processes, Liquidity Services not only preserves the client's brand equity but continually generates high recovery value for the repurposed goods