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March 2016
Key Success Factors for Optimizing Value
Recovery in the eMaterials Market
Michael Blumberg, Blumberg Advisory ...
© 2016 Belmont Trading Co., Inc. All rights reserved.
Agenda
• The eMaterial Market and Challenges
• Criteria for Selectin...
THE EMATERIAL
MARKET AND
CHALLENGES
© 2016 Belmont Trading Co., Inc. All rights reserved.
eMaterial vs eWaste
4
eWaste
Generally implies
material that is:
• B...
© 2016 Belmont Trading Co., Inc. All rights reserved.
eMaterial Value Recovery Drivers
5
Maximizing
Economic Value
Pursuin...
© 2016 Belmont Trading Co., Inc. All rights reserved.
The Growing eWaste Problem: 2014
6
India, 4.1%
China, 14.4%
Brazil,
...
© 2016 Belmont Trading Co., Inc. All rights reserved.
The Growing eWaste Problem: Trends
7
33.8
35.8
37.8
39.8
41.8
43.8
4...
© 2016 Belmont Trading Co., Inc. All rights reserved.
The Growing eWaste Problem: The Impact We
Can Have
8
Paladium,
0.05
...
© 2016 Belmont Trading Co., Inc. All rights reserved.
eMaterial Reuse & Recycling Options
9
Lower
Value
Recovery
Higher
Va...
© 2016 Belmont Trading Co., Inc. All rights reserved.
Global eMaterial Challenges
10
North America Latin America Europe As...
SELECTING AN
EMATERIAL
MANAGEMENT PARTNER
© 2016 Belmont Trading Co., Inc. All rights reserved.
Evaluation Criteria for eMaterial Management
Service Providers
12
eM...
© 2016 Belmont Trading Co., Inc. All rights reserved.
Evaluation Criteria: Geographic Footprint and
Local Expertise
13
Val...
© 2016 Belmont Trading Co., Inc. All rights reserved.
Evaluation Criteria: Vertical Market and
Material Diversity
14
Value...
© 2016 Belmont Trading Co., Inc. All rights reserved.
Evaluation Criteria: Breadth of Services Offered
15
Value
Recovery
G...
© 2016 Belmont Trading Co., Inc. All rights reserved.
Evaluation Criteria: Logistics and Processing
Capabilities
16
Value
...
© 2016 Belmont Trading Co., Inc. All rights reserved.
Evaluation Criteria: Remarketing and
Distribution Capabilities
17
Va...
© 2016 Belmont Trading Co., Inc. All rights reserved.
Evaluation Criteria: Analytics and Reporting
Capabilities
18
Value
R...
THE EMATERIALS VALUE
OPTIMIZATION PARTNER
© 2016 Belmont Trading Co., Inc. All rights reserved.
The eMaterials Value Optimization Partner
20
eMaterials
Value
Optimi...
EMATERIALS VALUE
OPTIMIZATION CASE
STUDIES
© 2016 Belmont Trading Co., Inc. All rights reserved.
Case Study: Global, Diversified Telecom
Equipment OEM
22
Client
• Le...
© 2016 Belmont Trading Co., Inc. All rights reserved.
Case Study: Global, Diversified Telecom
Equipment OEM (Continued)
23...
© 2016 Belmont Trading Co., Inc. All rights reserved.
Case Study: Latin American Mobile Device
Trade-In Program
24
Client
...
© 2016 Belmont Trading Co., Inc. All rights reserved.
Case Study: Latin American Mobile Device
Trade-In Program (Continued...
© 2016 Belmont Trading Co., Inc. All rights reserved.
Case Study: Maximizing Value and Minimizing
Environmental Impact of ...
© 2016 Belmont Trading Co., Inc. All rights reserved.
Case Study: Maximizing Value and Minimizing
Environmental Impact of ...
BELMONT TRADING
COMPANY OVERVIEW
© 2016 Belmont Trading Co., Inc. All rights reserved.
We are passionate about creating sustainability
solutions for used e...
BLUMBERG ADVISORY
GROUP OVERVIEW
© 2016 Belmont Trading Co., Inc. All rights reserved.
Experience and Credentials
• Full service management consulting firm...
© 2016 Belmont Trading Co., Inc. All rights reserved.32
Questions &
Answers
© 2016 Belmont Trading Co., Inc. All rights reserved.
Thank You!
33
Contact
Belmont Trading Company
www.Belmont-trading.co...
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RLSC 2016: Key Success Factors for Optimizing Value Recovery in the eMaterials Market

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RLSC 2016 presentation by Joe Morrow of Belmont Trading Company and Michael Blumberg of Blumberg Advisory Group.

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RLSC 2016: Key Success Factors for Optimizing Value Recovery in the eMaterials Market

  1. 1. March 2016 Key Success Factors for Optimizing Value Recovery in the eMaterials Market Michael Blumberg, Blumberg Advisory Group Joe Morrow, Belmont Trading Company
  2. 2. © 2016 Belmont Trading Co., Inc. All rights reserved. Agenda • The eMaterial Market and Challenges • Criteria for Selecting an eMaterial Management Partner • The Integrated Value Recovery Partner • Integrated Value Recovery Case Studies • Belmont Trading Company Overview • Blumberg Advisory Group Overview 2
  3. 3. THE EMATERIAL MARKET AND CHALLENGES
  4. 4. © 2016 Belmont Trading Co., Inc. All rights reserved. eMaterial vs eWaste 4 eWaste Generally implies material that is: • Beyond Economic Repair (BER) or End Of Life (EOL) • Destined for lower- value recycling/metals recovery eMaterial 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. In this presentation we use the most applicable term given the context of the topic we are discussing.
  5. 5. © 2016 Belmont Trading Co., Inc. All rights reserved. eMaterial Value Recovery Drivers 5 Maximizing Economic Value Pursuing Sustainability Goals Complying With Regulations Protecting Private Data
  6. 6. © 2016 Belmont Trading Co., Inc. All rights reserved. The Growing eWaste Problem: 2014 6 India, 4.1% China, 14.4% Brazil, 3.3% Russia, 2.9% Japan, 5.3% Italy , 2.6%France, 3.3% Germany, 4.3% United States, 17.0% UK, 3.6% Top eWaste Producers (%age of Global eWaste) 1.4 4.4 7.0 8.5 17.3 18.0 21.9 22.1 22.2 23.3 0.0 5.0 10.0 15.0 20.0 25.0 India China Brazil Russia Japan Italy France Germany United States UK eWaste Generated per Capita (KG) Source: http://i.unu.edu/media/ias.un u.edu-en/news/7916/Global-E- waste-Monitor-2014-small.pdf
  7. 7. © 2016 Belmont Trading Co., Inc. All rights reserved. The Growing eWaste Problem: Trends 7 33.8 35.8 37.8 39.8 41.8 43.8 45.7 47.8 49.8 5 5.2 5.4 5.7 5.9 6.1 6.3 6.5 6.7 0 1 2 3 4 5 6 7 8 0 10 20 30 40 50 60 2010 2011 2012 2013 2014 2015 2016 2017 2018 Growth in Global eWaste Generation E-waste generated (Mt) E-waste generated (kg/capita) Total CAGR = 5.0% Per Capita CAGR = 3.7% Source: http://i.unu.edu/media/ias.un u.edu-en/news/7916/Global-E- waste-Monitor-2014-small.pdf
  8. 8. © 2016 Belmont Trading Co., Inc. All rights reserved. The Growing eWaste Problem: The Impact We Can Have 8 Paladium, 0.05 Gold, 0.12 Silver, 1.24 Copper, 8.44 What We Keep Out of Landfills (ounces per 100 phones) Paladium, $27.25 Gold, $145.19 Silver, $18.97 Copper, $1.10 What it's worth (value per 100 cell phones) Source: Shegerian, John, Triple Pundit, August 21, 2015 Total value per 100 cell phones: $192.51
  9. 9. © 2016 Belmont Trading Co., Inc. All rights reserved. eMaterial Reuse & Recycling Options 9 Lower Value Recovery Higher Value Recovery Scrapping & Recycling Component Harvest & Resale Remarketing Whole Units Striving for higher value recovery options helps us achieve economic, sustainability, and regulatory goals
  10. 10. © 2016 Belmont Trading Co., Inc. All rights reserved. Global eMaterial Challenges 10 North America Latin America Europe Asia Africa Canada: • 7 provinces have recycling systems in place • National-level eWaste export controls US: • 25 states have (differing) laws on eWaste and recycling • Limited national regulation • Most countries have regulations and follow UN protocols • Robust private- sector self- regulation, e.g. by MNOs who put in place take-back programs • WEEE directive • Local laws like PAS 141 in UK • RoHS directive • Battery directive • Japan only country with formal laws • Taiwan & S. Korea have well developed systems in place • China has national regulation on imports and licensing • India has no national law but some state laws • Little government action to speak of • South Africa is building eWaste recycling infrastructure Countries with regulations: 52 Countries without regulations: 153 Source: http://i.unu.edu/media/ias.unu.edu- en/news/7916/Global-E-waste-Monitor-2014- small.pdf
  11. 11. SELECTING AN EMATERIAL MANAGEMENT PARTNER
  12. 12. © 2016 Belmont Trading Co., Inc. All rights reserved. Evaluation Criteria for eMaterial Management Service Providers 12 eMaterial Manager Geographic Footprint & Local Expertise Vertical Market & Material Diversity Breadth of Services Offered Logistics & Processing Capabilities Remarketing & Distribution Capabilities Analytics & Reporting Capabilities These are the critical criteria to examine when evaluating the capabilities of any eMaterial management partner
  13. 13. © 2016 Belmont Trading Co., Inc. All rights reserved. Evaluation Criteria: Geographic Footprint and Local Expertise 13 Value Recovery Goal How Geographic Footprint and Local Expertise Helps Achieve It Maximize Economic Value  Diversity of resale markets maximizes value-in-use for materials  Maintains current knowledge of constantly changing local regulatory environment and demand trends Pursue Sustainability Goals  Deep knowledge of local markets allows greater transparency into the material’s second life Comply with Regulations  Decreased risk of violating local regulations What Is It? Ability to deal with the global business challenges and their implications through: • Knowledge of local regulations • Knowledge of local markets & demand patterns • Understanding of trade requirements & relationships between countries • Local market presence
  14. 14. © 2016 Belmont Trading Co., Inc. All rights reserved. Evaluation Criteria: Vertical Market and Material Diversity 14 Value Recovery Goal How Vertical Market and Material Diversity Helps Achieve It Maximize Economic Value  Single point of contact for all eMaterial value recovery needs  Potential to cross sell components across product segments  Knowledge transfer between verticals What Is It? Breadth of vertical markets and material processing capability; may include: • Mobile devices • Computing equipment • Telecom equipment • Network connectivity devices • Consumer electronics • Wearables • Batteries
  15. 15. © 2016 Belmont Trading Co., Inc. All rights reserved. Evaluation Criteria: Breadth of Services Offered 15 Value Recovery Goal How Breadth of Services Helps Achieve It Maximize Economic Value  One-stop shop for all processing services you may need  Savvy partners specialize in services they are best positioned to provide and outsource others Pursue Sustainability Goals  The fuller the range of services provided, the more options for avoiding less sustainable practices (e.g. landfill disposal) Protect Private Data  Secure, certified data erasure/ device destruction is one service your partner should perform in- house, with a strong track record of avoiding security breaches What Is It? The breadth of services a partner can perform on a given device, such as: • Triage, sorting and grading • Data wipe/destruction • Repair/refurbishment • Component harvest • Remarketing whole units • Remarketing components • Recovering precious and other metals • Recovering other materials
  16. 16. © 2016 Belmont Trading Co., Inc. All rights reserved. Evaluation Criteria: Logistics and Processing Capabilities 16 Value Recovery Goal How Logistics and Processing Capabilities Help Achieve It Maximize Economic Value  Lean, efficient, standardized logistics & processes reduce operating costs creating more value Pursue Sustainability Goals  Tracking of process metrics support demonstrates progress toward sustainability goals Comply with Regulations  Standardized, documented processes allow clear demonstration of compliance Protect Private Data  Efficient, mature, standardized QA processes reduce the risk of incomplete data wiping What Is It? Maturity & sophistication of logistics & processing capabilities: • Productivity vs. other vendors • Logistics expertise and partnerships in locations served • Quality assurance processes and certifications • Process and technology standardization across facilities • Metrics and SLAs measured and supported
  17. 17. © 2016 Belmont Trading Co., Inc. All rights reserved. Evaluation Criteria: Remarketing and Distribution Capabilities 17 Value Recovery Goal How Remarketing and Distribution Helps Achieve It Maximize Economic Value  Find both the highest price and the quickest payment for your material—then optimize the two to maximize value Pursue Sustainability Goals  The more remarketing options a partner has access to, the more capable they are of finding solutions aligned with customers’ goals Comply with Regulations  The more country and channel options a partner has access to, the more capable they are of ensuring & demonstrating regulatory compliance What Is It? Breadth of market reach and depth of expertise in remarketing and distribution: • Insight & knowledge into every viable market • Direct presence in these markets • Access to multiple channels and potential customers • Proven track record of optimizing inventory turnover
  18. 18. © 2016 Belmont Trading Co., Inc. All rights reserved. Evaluation Criteria: Analytics and Reporting Capabilities 18 Value Recovery Goal How Analytics and Reporting Helps Achieve It Maximize Economic Value  Modeling & scenario planning to examine several variables to ensure processing and remarketing decisions are yielding maximal value in minimal time Pursue Sustainability Goals  Use data to demonstrate clearly where you are in relation to your goals Comply with Regulations  Generate reports to demonstrate regulatory compliance What Is It? Ability to analyze and report against KPIs relevant to recovering value from eMaterial, such as: • The frequency & thoroughness of reporting on recovery rates, revenue sharing schemes, and compliance levels • Analytics to support procurement, processing, remarketing and sales decisions
  19. 19. THE EMATERIALS VALUE OPTIMIZATION PARTNER
  20. 20. © 2016 Belmont Trading Co., Inc. All rights reserved. The eMaterials Value Optimization Partner 20 eMaterials Value Optimization Partner Geographic Footprint & Local Expertise Vertical Market & Material Diversity Breadth of Services Offered Logistics & Processing Capabilities Remarketing & Distribution Capabilities Analytics & Reporting Capabilities Global Multi-Vertical Broad Services High Process Maturity Broad Reach, Deep Expertise Robust Analytics & Reporting The eMaterials Value Optimization Partner possesses advanced capabilities along every dimension of our framework
  21. 21. EMATERIALS VALUE OPTIMIZATION CASE STUDIES
  22. 22. © 2016 Belmont Trading Co., Inc. All rights reserved. Case Study: Global, Diversified Telecom Equipment OEM 22 Client • Leading Europe-based telecom equipment OEM • Operations in 120+ countries • Diverse portfolio of Telecom Network products Integrated Solution • Five providers (including Belmont) partnered to provide solution • Services span remarketing, recycling, logistics management, and CO2 offsetting for all the client’s products across all 120+ global locations • Resale values increased over those attained by prior partners Client Situation • Required diverse set of services, from remarketing to recycling • Operated in 120+ countries with 47 vendors—goal to minimize vendor count • Required customized services based on product type, country, and optimal value recovery strategy
  23. 23. © 2016 Belmont Trading Co., Inc. All rights reserved. Case Study: Global, Diversified Telecom Equipment OEM (Continued) 23 eMaterials Value Optimization Partners Geographic Footprint & Local Expertise Vertical Market & Material Diversity Breadth of Services Offered Logistics & Processing Capabilities Remarketing & Distribution Capabilities Analytics & Reporting Capabilities Capabilities Demonstrated Local expertise or partnerships in all 120+ client countries Consistent processes across all facilities serving the 120+ countries Improved resale values by leveraging global network to find optimal resale markets and channels Ability to process all types of telecom material Including remarketing, recycling, logistics management, and CO2 offsetting Tracked and reported on client KPIs globally
  24. 24. © 2016 Belmont Trading Co., Inc. All rights reserved. Case Study: Latin American Mobile Device Trade-In Program 24 Client • Leading LATAM mobile network operator • Diversified service portfolio includes mobile phones, cable TV, broadband, mobile payments • Operates online eCommerce site and a network of retail stores Integrated Solution • Partnered with client and in-store processor to develop end-to-end trade-in program • Integrated Value Recovery Partner manages all out-of-store logistics • Leverages Colombia facility for device collection & processing • Leverages Dubai and Hong Kong facilities for international remarketing • Leverages U.S. facility for recycling devices that can’t be remarketed Client Situation Sought partner to run online and in-store mobile device trade-in program and provide: • Maximum recovery value by selling phones in optimal markets (domestic or international) • Maximum velocity of cash conversion • Minimum environmental impact • Compliance with strict Colombian regulations
  25. 25. © 2016 Belmont Trading Co., Inc. All rights reserved. Case Study: Latin American Mobile Device Trade-In Program (Continued) 25 eMaterials Value Optimization Partner Geographic Footprint & Local Expertise Vertical Market & Material Diversity Breadth of Services Offered Logistics & Processing Capabilities Remarketing & Distribution Capabilities Analytics & Reporting Capabilities Collection & Processing: Colombia Resale markets: Colombia, Dubai & Hong Kong Recycling: U.S. Belmont handles end-to-end logistics, sorting, grading, repair, and remarketing Integrated processing and logistics across 4+ countries (Colombia, US, Dubai, Hong Kong) Belmont remarkets devices on both B2B and B2C channels in Colombia and globally via Hong Kong and Dubai Capabilities Demonstrated
  26. 26. © 2016 Belmont Trading Co., Inc. All rights reserved. Case Study: Maximizing Value and Minimizing Environmental Impact of Russian eMaterial 26 Client • Western-Europe-based global telecom company with customers in more than 180 countries • Strong corporate focus on sustainability and finding highest-value “second life” for eMaterial Integrated Solution • Based on local expertise, determined an export route to move the equipment from Russia to an intermediary country, then to Sweden for resale in the EU • Belmont handled all the logistics for the operation, leveraging its own office in Moscow and processing facility in Sweden Client Situation • Routinely installs and de-installs equipment for clients in 180 countries • Had high-value telecom inventory in Russia • Exporting equipment for resale has many costs and legal complexities • No resale market for the equipment in Russia; only option was to scrap it, with obvious negative environmental impact
  27. 27. © 2016 Belmont Trading Co., Inc. All rights reserved. Case Study: Maximizing Value and Minimizing Environmental Impact of Russian eMaterial (Continued) 27 eMaterials Value Optimization Partner Geographic Footprint & Local Expertise Vertical Market & Material Diversity Breadth of Services Offered Logistics & Processing Capabilities Remarketing & Distribution Capabilities Analytics & Reporting Capabilities Knowledge of local laws in all European countries, facilities in Sweden & Russia Logistics management across three countries Ability to take ownership of material, export from Russia to Sweden, remarket across EU Capabilities Demonstrated
  28. 28. BELMONT TRADING COMPANY OVERVIEW
  29. 29. © 2016 Belmont Trading Co., Inc. All rights reserved. We are passionate about creating sustainability solutions for used electronics equipment 29 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
  30. 30. BLUMBERG ADVISORY GROUP OVERVIEW
  31. 31. © 2016 Belmont Trading Co., Inc. All rights reserved. Experience and Credentials • Full service management consulting firm specializing in the Aftermarket & Reverse Logistics Service Industry: - Reverse Logistics & Returns Management - Depot Repair & Field Service - Service Logistics - Tech Support - Asset Recovery & Liquidation - E-Waste & E-recycling • Founded in 1969 • Headquartered in suburbs of Philadelphia, PA • Practice areas include: - Strategic & Business Planning - Market Research & Customer Satisfaction - Benchmarks & Best Practices - Productivity & Efficiency Improvement - Systems Design, Evaluation, & Recommendation - Mergers & Acquisitions • Broad Industry Focus - IT/Telecom - Consumer Electronics & Appliances - Medical/Scientific Instrumentation - Process Control & Plant Automation - Building Controls & Automation 31
  32. 32. © 2016 Belmont Trading Co., Inc. All rights reserved.32 Questions & Answers
  33. 33. © 2016 Belmont Trading Co., Inc. All rights reserved. Thank You! 33 Contact Belmont Trading Company www.Belmont-trading.com Info.AssetManagement@Belmont-trading.com 847.412.9690

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