Belmont-Trading-Company-E-scrap-2016-Evolving-Value-Recovery-to-Asset-Management-Business-Implications-Morrow

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


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


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


Business capabilities to consider

Value

Recovery

Asset

Management

Scrapping &

Recycling

Component

Harvest & Resale

Remarketing

Whole Units

Operations &

Infrastructure

Information

TechnologyFinance

Sales and

MarketingHuman

Resources



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



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



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



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



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


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)



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



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


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


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


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


Thanks!

Joe MorrowPresident, Mobility Solutions

Belmont Trading Company

www.Belmont-trading.com

[email protected]

http://www.belmont-trading.com/

mailto:[email protected]