Joe Morrow, President, Mobility Solutions
Belmont Trading Company
September 21, 2016
E-SCRAP 2016: Evolving from Value Recovery to Asset Management:
Business Implications
2 © 2016 Belmont Trading Co., Inc. All rights reserved.
Contents
• From eWaste to eMaterials
• The Value Recovery to
Asset Management Spectrum
• Positioning For Success in
Asset Management
• eMaterials Value Optimization
3 © 2016 Belmont Trading Co., Inc. All rights reserved.
Shifting our mindset from eWaste to eMaterials
eWaste
Generally implies
material that is:
• Beyond Economic Repair
(BER) or End Of Life
(EOL)
• Destined for lower-
value recycling/metals
recovery
eMaterials
Any electronic product that is transitioning from one use
to the next, such as:
• New in box equipment that an OEM never sold as new
• Resalable used equipment even if it requires repair or
refurbishment to make it suitable for resale
• Material generally referred to as eWaste: BER or EOL
material that cannot be used again due to
obsolescence or damage
At Belmont we are working to shift the conversation to
optimizing the value of eMaterials throughout their lifecycle
4 © 2016 Belmont Trading Co., Inc. All rights reserved.
The Value Recovery to Asset Management
spectrum
While the industry needs & supports players in both spaces,
Asset Management capabilities generally help us better
achieve economic, sustainability, and regulatory goals
Value
Recovery
Asset
Management
Scrapping &
Recycling
Component
Harvest & Resale
Remarketing
Whole Units
5 © 2016 Belmont Trading Co., Inc. All rights reserved.
Business capabilities to consider
Value
Recovery
Asset
Management
Scrapping &
Recycling
Component
Harvest & Resale
Remarketing
Whole Units
Operations &
Infrastructure
Information
TechnologyFinance
Sales and
MarketingHuman
Resources
6 © 2016 Belmont Trading Co., Inc. All rights reserved.
Business capabilities to consider
Operations &
Infrastructure
Information
TechnologyFinance
Sales and
MarketingHuman
Resources
Value Recovery
• Bulk material handling
• Data security through physical
media destruction
• Metals recovery in-house or via
partner
• Recycling Certifications and
Licenses
• Tear down/parts harvest lines
• Shredding capabilities
• Palletized/binned inventory
handling & storage
Asset Management
• Individual unit handling
• Sort/grade/refurbish capabilities
• Data security through software
data wipe
• Global logistics support
• Inspect/grade/data erasure lines
• Refurbish/repair lines
• Unit-level and FGI inventory
handling & storage
7 © 2016 Belmont Trading Co., Inc. All rights reserved.
Business capabilities to consider
Operations &
InfrastructureInformation
TechnologyFinance
Sales and
MarketingHuman
Resources
Value Recovery
• Bulk inventory management
• Minimal workflow management
• Minimal, if any, third party
software integration
• Settlement based partner
reporting
Asset Management
• Serialized inventory management
• Advanced workflow management
• Granular Inventory tracking
• Complex third party software
integration
• Rich, BI-driven partner reporting
8 © 2016 Belmont Trading Co., Inc. All rights reserved.
Business capabilities to consider
Operations &
Infrastructure
Information
TechnologyFinance
Sales and
MarketingHuman
Resources
Value Recovery
• Largely consignment-based
inventory
• Cost recovery plus profit-share
• Minimal depreciation risk
• Minimal value-add risk
• Minimal investment in technology,
systems, work flow automation,
systems
Asset Management
• Mix of consigned and purchased
inventory
• Revenue share is often not net of
costs
• Significant depreciation risk
• Complex value-add / repair
investment considerations
• Requires significant IT investments
9 © 2016 Belmont Trading Co., Inc. All rights reserved.
Business capabilities to consider
Operations &
Infrastructure
Information
TechnologyFinance
Sales and
Marketing
Human
Resources
Value Recovery
• Highly targeted brand recognition
efforts; focus on establishing
brand in limited number of
industry segments served and
services offered
• Traditional marketing efforts—if
any—focused more on inbound
(material supply) clients
• Sales relationships in component,
scrap, and metals channels in
your facilities’ regions
Asset Management
• Traditional marketing efforts
more common and focus on both
inbound and outbound clients
• Broader brand recognition
efforts; focus on building strong,
recognizable brand in both B2B &
B2C markets
• Sales relationships in diverse
global wholesale and retail
remarketing channels
10 © 2016 Belmont Trading Co., Inc. All rights reserved.
Business capabilities to consider
Operations &
Infrastructure
Information
TechnologyFinance
Sales and
MarketingHuman
Resources
Value Recovery
• Service/task-oriented culture and
work flow design
• Lower skilled processing
employees
• Relatively low touch client
relationship management
Asset Management
• Higher skilled processing
employees
• High touch client relationship
management
• Consultative/solutions-oriented
culture
11 © 2016 Belmont Trading Co., Inc. All rights reserved.
Within Asset Management, increasing business value
generally correlates to increasing sophistication across
all capability areas
Most of Today’s Players
Future Value
Optimization Players
• Serialized inventory
• Triage, sort, grade,
datawipe
• Basic ERP system
• Trading/transactional
client orientation
• Little/no marketing
• Regional focus
Busi
ness
Valu
e(P
rofi
tabilit
y, B
rand,
Mult
iple
)
Sophistication of Capabilities(Ops, IT, Infrastructure, Finance, Sales/Marketing, People)
• Serialized inventory
• Triage, sort, grade,
datawipe
• Advanced ERP system,
CRM, workflow
management
• Long-term client
relationship orientation
• Marketing oriented toward
service offerings
• Light repair
• Multi-regional focus;
access to global
remarketing channels
• Serialized inventory
• Triage, sort, grade,
datawipe
• Advanced ERP system,
CRM, workflow
management
• B2B and B2C online
commerce, predictive
analytics for pricing and
volume
• Long-term client
partnership orientation
• Marketing oriented toward
platforms & solutions
• Full repair &
refurbishment capabilities
• Mastery of global inbound
and outbound channels
12 © 2016 Belmont Trading Co., Inc. All rights reserved.
eMaterial Next Use
Sustainability Goals:
Minimize
environmental impact
of eMaterials on our
communities and
planet, increase re-use
Social Goals:
Create lifelong
employment and
training opportunities
for all levels of
workers in our
industry, increase jobs
Business Goals:
Solve eMaterials
management
challenges for our
partners and our
communities
eMaterials Value Optimization =
Value Recovery + Asset Management
Intellectual Property
Services
Capa-bilities
eMaterials Value Optimization
Platform
Solutions
• Operational
• ReMarketing
• Systems: ERP,
WMS, WFA,
Data
Addressing eMaterials
management issues by
solving critical
logistical, operational,
data security, and re-
marketing challenges
eMaterial Prior Use
Broad Range of
Verticals
Broad Range of
Lifecycle Stages
Broad Range of Value
Chain Eco-System
Players
• OEMs
• Carriers
• Retailers
• Brokers
ABOUT BELMONT
14 © 2016 Belmont Trading Co., Inc. All rights reserved.
We are passionate about creating sustainability
solutions for used electronics equipment
Belmont Trading Company exists to make our
world sustainable for future generations by
creating responsible and ethical solutions
for managing and recapturing value from
used electronic equipment in every global market
Reducing the
proliferation of eWaste
With 10 facilities on 4 continents we are
well positioned to localize processing and
remarketing solutions for our partners
Our focus materials include
computing, mobility, network
telecom, batteries & accessories,
and a range of other electronics
28 year history of growth
of innovation for its
business partners
Meeting or
exceeding local
governmental
and NGO
standards
Maximizing
value returned
to customers
15 © 2016 Belmont Trading Co., Inc. All rights reserved.
Extensive global processing and remarketing
capacity and capabilities
With headquarters just outside of Chicago, IL and 10 facilities on 4 continents
around the globe, Belmont Trading Company is a global leader in providing
asset management and value recovery services for used electronic equipment
Mobile
Devices
Network
Telecom
Computing
Equipment
1,000,000+
Units/Mo
14,000+ Plug-
in Units/Mo
200,000+
Units/Mo
200+ Metric
Tons/Mo
400+ Metric
Tons/Mo
350+ Metric
Tons/Mo
Global Processing Capacity
Valu
e
Recovery
Ass
et
Managem
ent
16 © 2016 Belmont Trading Co., Inc. All rights reserved.
Thanks!
Joe MorrowPresident, Mobility Solutions
Belmont Trading Company
www.Belmont-trading.com