September/October 2011 - Auto & Truck Recyclers Of Illinois

Auto & Truck Recyclers of IllinoisATRIAssociation NewsNovember/December 20117Streamlining DistributionAs the economy slowly heads forward, most companies need to get more done with the same resources.Streamlining operations means eliminating activitiesthat don’t add value and putting in place controls to makesure transactions get processed quickly and effectively.Eliminate Non-Productive ActivitiesEveryone is really busy - they’re already overloaded,or are they?“Why does it take so long to turn around orders?” asked theCEO, “Everyone says they’re working as hard as they can buthow can it take so many days?”“Your company is doing credit checks when orders are received and again when they are about to ship. Since your customers are Fortune 500 companies, do you really need these creditchecks? If you skipped these checks you could save 2-3 days” theconsultant replied.“Of course we don’t need to do credit checks on our customers. Why on earth are we doing them?“Apparently, several years ago you sold to smaller companiesthat had credit issues. To ensure credit checks got done the controller had all orders credit-checked.”“We could probably handle 25% more business by eliminating these delays. We can stop that practice immediately.”A lot of companies think they have a good grasp onhow they operate but reality is different. Several years agoI began asking consultants ‘Have you ever asked someonehow their company operates and found out later that whatyou were told does not match what really happens’. Without exception, the answer was ‘yes’ for every project theyever worked on.A critical part of streamlining is making sure you understand exactly how you really operate, and eliminating allthe activities that don’t add value. Usually, there are severalopportunities to immediately free up resources. The following example is one that occurs in many companies:“How are things coming with the new system?”asked the VP.“I was really struggling with one thing but I finally figuredout how to do the Flash report on the new system” the consultant said.“What Flash report?”The one Adam does. He spends about eight hours a weekpulling together data from different sources to create the SalesFlash report.”“Oh, that one. We stopped using that months ago.”Well, now Adam has time to work on other efforts.Make Sure Things Stay On TrackAs you get busier and busier it is easier and easier forthings to ‘fall through the cracks’. Did the customer sign-off on requirements? Did the job get re-scheduled? When are the parts going to arrive? Did the change-order get approved?Some demands might come from new customersor be for new types of products and services, resultingin considerable variation in the demand requirements.As such, not only do your personnel have to handlemore transactions, they have to handle a lot of different processing requirements. This is where proper controls for managing transaction processing are invaluable. ‘Transactions’ are quotes, sales orders, purchaseorders, service orders and so on.“We get about 2,500 quote requests per month. Of these,we auto quote about 800 a month” the Customer Service per-

Auto & Truck Recyclers of IllinoisATRIAssociation News8son indicated. “The rest go to Engineering, so they are reallyswamped and turnaround takes a long time. Unfortunately, it istaking so long we get a lot of customer complaints and lose a lot ofbusiness - we only close 15% to 20% of our quotes.”In a subsequent meeting with Engineering, “We workon major quotes - about 25 a month”.Wait, what happened to 1,675 quotes? It turnedout that these were going to some clerical personnelin another department that had no formal processes ortracking for these quotes. Two-thirds of all quotes werefalling through the cracks.Even worse, the people processing these quotes wereonly looking at how long it had been since the productwas last sold and then trying to guestimate a cost and pricebased on a more recent sale of similar products. Theydidn’t take into consideration if the job was a governmentjob or a commercial job, nor if there was one delivery ormultiple deliveries. When a job was run for a governmentquote the cost overrun was extremely large, causing seriousrepercussions with the government agencies. Also, no onewas tracking costs for preparing the quotes, which endedup being a problem for the government agencies.In setting up new processes we addressed the issueof ‘transaction management’ - how do we manage theworkflow to ensure things are done in a timely mannerand cost-effective manner. In this situation, ‘cost-effective’covers ensuring processing costs are properly recorded andcost risks for the transaction (e.g. potential for penalties, lostrevenue, lost profit) are properly covered.In this situation, the most expedient solution was touse a shared spreadsheet document to track the process-November/December 2011ing of quotes. A separate worksheet was used for eachtype of job - government versus commercial. Within eachworksheet, columns were set up for each department to record the date and time they received the quote and initialsfor when they completed their portion. Managers couldquickly see what should be coming to their departmentand what was sitting too long in one department.Certain conditions could result in extensive analysis which would require special handling and delay turnaround of the quote. For example, if the requested itemwas no longer available but the ‘replacement’ item mightneed to be certified, the quote was ‘red flagged’. This allowed the managers to zero in on problem quotes.In summary, the basic steps for ‘transactionmanagement’ are: Identify transaction characteristics that change howa transaction is processed and the steps required toprocess the transaction. Identify the role for each department (or person),involved in processing a transaction. For each department role, identify the following:1. What is needed to manage the schedule forprocessing the transaction Identify key ‘milestone steps’ for processing a transaction (based on its characteristics) and the desired timeframe for reaching that milestone Identify critical steps and potential red flagconditions2. Identify what is needed to manage costs How to ensure costs are properlyrecorded How to avoid excess costs (e.g. expeditingcosts, penalties) Identify critical steps and potential red flagconditions.“We should be able to book an extra 4 million this month.”“How’s that?”“We have some jobs that weren’t quite ready at the end oflast month but should be good to go now.”“Are those the ones we were waiting for sign-off from thecustomer?”

Auto & Truck Recyclers of IllinoisAssociation NewsATRINovember/December 20119“Yes.”“Did any one follow up with the customer to get the sign-off?”A few minutes later . “Oops.”Final ThoughtsAccording to Dana Borowka, CEO of Lighthouse ConsultingServices, LLC (www.lighthouseconsulting.com) and author of Crackingthe Personality Code (www.crackingthepersonalitycode.com) hiring theright people is key to future growth. If you would like additional information on hiring, please click here to see an article on this subject: ghtFirstTime/Ted Margison, President, Pebble, LLC, has over 30 years experience in operations management and process improvement. Prior tostarting Pebble, Ted worked for Ernst & Young in their manufacturing& distribution practice and then headed up one of PriceWaterhouse’smanufacturing & distribution practices on the west coast. You can contact Ted at tedm@pebblellc.com; (424) 262-5265If you would like additional information on this topic or others, please contact Lighthouse Consulting Services LLC, 3130Wilshire Blvd., Suite 550, Santa Monica, CA 90403, (310)453-6556, dana@lighthouseconsulting.com & our website:www.lighthouseconsulting.com.Lighthouse Consulting Services,LLC provides a variety of services, including in-depth work style assessmentsfor new hires & staff development, teambuilding, interpersonal & communication training, career guidance & transition, conflict management, workshops,and executive & employee coaching.To order the book, “Cracking the Personality Code” please go to www.crackingthepersonalitycode.com.ASSOCIATE MEMBERSPlease patronize all our Associate Members who generously support ATRI throughout the year.Berlinsky Scrap Corp.Joliet, IL815-726-4334Car-Part.comFt. Wright, KY800-347-2247/859-344-1925Chicago Industrial CatalyticLincolnshire, IL312-914-6666Donate A Car 2 CharityEscondido, CA760-755-2071E & R TowingMarkham708-333-7300General Core Supply, IncChicago, IL773-767-6600Hollander, A Solera CompanyPlymouth, MN800-825-0644Miller Compressing CompanyMilwaukee, WI 53204414-671-5980Insurance Auto AuctionsWestchester, IL708-492/7000James EnvironmentalRound Rock, IL512-244-3631Legend Smelting & Recycling, IncSpring Valley, CA800-697-5556LKQ Government AffairsFort Lauderdale, FL954-492-9092McNamara-Weaver GroupChicago, IL312-827-6651Market Financial GroupShaumburg, IL847-398-7060Quad City Salvage AuctionOswego, IL630-897-8000R.J. McClellan, Inc.St. Paul Park, MN877-525-4589Recycle Technologies, IncWood Dale, IL630-350-8909The Rogers GroupFamily Business SuccessGlenview, IL847-562-8992Snyder Insurance CoBloomington, IL309-275-9987Stormtech Inc.Campbellsport, WI920-533-5271Trissel, Graham & Toole, Inc.Insurance & Risk ManagementSterling, IL815-625-0027United Recyclers GroupCentennial, CO303/367-4391Waubonsee Community CollegeSugar Grove630-466-2331Young Insurance AgencyRockford, MI616-214-4238

Auto & Truck Recyclers of IllinoisATRIAssociation News10November/December 2011America Recycles Day is November 15: HelpAmerica Recycle More10 easy steps you can take to become a better recycler every day of the yearSTAMFORD, Conn. (Nov. 9, 2010) – AmericaRecycles Day is coming November 15. More than acelebration, America Recycles Day is the only nationally recognized day dedicated to the promotion ofrecycling in the United States. It’s one day to informand educate, one day to get our neighbors, friendsand community leaders excited about what can beaccomplished when we all work together, one dayto make recycling bigger and better 365 days a year.Here are 10 ways you can take action this year:1. Know your local recycling system. Differentcommunities have different standards forwhat can be recycled and how to do it. VisitEarth911.com and enter your zip code foryour local information and resources.2. Plastic recycling: it’s all in the numbers. Lookfor the recycling symbol on plastic packagingor containers. #1 and #2 plastics should beaccepted by almost every recycler. Some communities require that your plastic bottles havea “neck,” so know your local rules (see #1).3. Can it! Metals are among the most valuablematerials in the waste stream. Aluminum andsteel cans are always welcomed by recyclers,and most metals can be recycled infinitelywith no loss of quality.4. Make recycling easy on the road. Keep twobags in your car or truck to contain yourtrash – one bag for garbage, and one for recyclables. Pre-sorting makes it easier to transfer your recyclables to the proper containeronce you’ve reached your destination.5. Answer the call to recycle your wirelessphone! Hundreds of millions of out-of-service phones are waiting to be reused or recycled. Do you have one or more in yourhome? Find a local charity with a phonerecycling program, or visit Earth911.com tofind recyclers near you.6. Look beyond the daily paper. According to theU.S. Environmental Protection Agency, paperand cardboard are America’s most-recycledmaterials by weight. In addition to newspaperrecycling, most communities will accept corrugated cardboard, and some will even acceptjunk mail, catalogues and phone books.7. Plug in to E-cycling. We live in an electronic age and that’s creating a lot of electronicwaste. Never throw old computers, monitors, TVs, printers, or other electronics in thelandfill. Instead, donate them to a local charity for reuse, or find out about your locale-cycling programs.

Auto & Truck Recyclers of IllinoisATRIAssociation NewsNovember/December 20118. Improve your community with a cleanupevent. Clean communities are better placesfor everyone to live, work, shop and play. Joinor organize a local cleanup event, and be sure tosort the recyclables you pick up. You’ll be amazedat what a difference a little effort can make.9. Teach your children well. Do your part tohelp create the next generation of environmental stewards. Involve your kids in recycling and make it fun. Even preschoolerscan help with sorting recyclables, and they’lllearn a lot about the world around them.Someday, they may even help with takingout the trash!10. Don’t forget about “Reduce” and “Reuse.” Reducing the amount of trash we throw away,and reusing products BEFORE you throwthem out or recycle them, creates the least11impact on the planet and our resources. Consider how you can add “reuse” to productsbefore they re-enter the waste stream.How can you get involved in America Recycles Day?Visit americarecyclesday.org to find an event near you.America’s leading companies and organizationssupport recycling through sponsorships and partnerships with America Recycles Day 2010: Alcoa,American Chemistry Council, Anheuser-Busch,Earth911.com, Disney’s Friends for Change, NakedJuice, Nestlé Waters North America, PepsiCo andWaste Management. Partners include: Glass Packaging Institute, Soles 4 Souls, Solid Waste Association ofNorth America and the United States EnvironmentalProtection Agency. In addition to financial and inkind support, many ARD sponsors and partners areplanning creative programs throughout the country.Reprinted with Permision of Keep America Beautiful, Inc., kab.org

Thank you to all of the2011 CMARC SponsorsEvent at the President Abraham Lincoln MuseumCocktail/Auction Reception Sponsored By:Car-Part.com/Checkmate by Car-part.comURG Pinnacle ProfessionalHollander, A Solera Co.CMARC Golf Outing Sponsored By:Friday Breakfast Sponsored By:IAA, Insurance Auto AuctionsGolf Hole Sponsors:Saturday Breakfast Sponsored By:LSB InsuranceLegends Smelting & RecyclingChicago Industrial CatalyticI-55 auto SalvageRASLogan OilAl JonTrails End Auto & Truck SalvageAuto & Truck Recyclers of ILAutomotive Recyclers of INIowa Auto RecyclersBrock SupplyNo Fee Salvage.comRay’s Auto PartsABC Auto Parts & SalesFriday Lunch Sponsored By:Market Financial GroupATSaturday Lunch Sponsored By:LKQ CorporationFriday Afternoon Break Sponsored By:Salvage DirectSaturday Afternoon Break Sponsored By:Miller Compressing CompanyFriday Afternoon Trainings Sponsored By:Auto Data DirectThank You for Your Support!!!!!!!

Thank You to All of Our Exhibitors for the2011 CMARC and Trade Show!Bringing You the Best in the Central Midwest!!!Auto Data Direct, Inc.1379 Cross Creek CircleTallahassee, FL 32301ph: 850/877-8804Fields Environmental, Inc.1309 West Vernal PikeBloomington, IN 47404ph: 812/333-5333Induction InnovationsPO Box 788Libby, MT 59923ph: 406/291-0498Rebuilders Automotive Supply1650 Flat River RdCoventry, RI 02816ph: 401/822-3030Snyder Insurance#1 Brickyard DriveBloomington, IL 61701ph: 309/275-9987The Rogers Group2355 Iroquois Dr.Glenview, IL 60026Ph: 847/562-9766URG & Pinnacle Professional67465 Revere Pkwy Suite 120Centennial, CO 80112ph: 303/367-4391MCI Cores6346 PlymouthSt. Louis, MO 63133ph: 314/581-2970SAS ForksPO Box 260Luxemburg, WI 54217Ph: 920/845-2307Car-part.com1908 Highland PikeFt Wright, KY 41017ph: 859/344-1925TRICheckmate/ By Car-Part.com1908 Highland Pike\Ft Wright, KY 41017ph: 859/344-1925Market financial Group240 Commerce Dr.Crystal Lake, IL 60014ph: 630/674-6433Legend Smelting & Recycling2520 Sweetwater BLVDSpring Valley, CA 91978ph: 815/641-7661Knopf Automotive93 Shrewsbury AveRed Bank, NJ 07701ph: 404/691-0777Hollander, a Solera Co14800 28th Ave N. #190Plymouth, MN 55447ph: 763/553-0644Automotive Recyclers Association9113 Church St.Manassas, VA 20110-5456ph: 577/208-0428Crush Software445 East 200 South, Ste 140Salt Lake City, UT 84111ph: 801/953-1003The Connection1019 Harrin Pkwy Suite 120Rockledge, FL 32955ph: 800/848-4850Buddy Automotive Innovations16 Via Maria TheresaManitou Springs, CO 80829ph: 866/337-1177Al-Jon MFG LLC15075 Al-Jon AveOttumwa, IA 52501ph: 641/455-5616Salvage DirectPO Box 138Eldridge, IA 52748ph: 563/823-6509Logan Oil9888 Waples St. Suite BSan Diego, CA 92121ph: 858/558-9440ENR United Road Towing16325 Crawford AveMarkham, IL60428Ph: 708/333-7300Olston’s Auto Recyclers3450 N. 35th St. Cir.Lincoln, NE 68504Ph: 402/467-4541Morgan Stanley Smith Barney70 W. /Madison Suite 300Chicago, IL 60602Ph: 312/827-6658Omni Source Corp2205 S Holt RdIndianapolis, IN 46241Ph: 360/437-0443Clean Burn1860 Charter LnLancaster, PA 17601Ph: 717/656-2011Power Plus Products6410 W. 74th StBedford Park, IL 60638Ph: 773/788-9947Reach Local230 W. Monroe Suite 700Chicago, ILph: 312/244-3600 ext. 111

Auto & Truck Recyclers of IllinoisATRIAssociation News14November/December 2011How to Get the Most FromAttending a Trade ShowYou made the effort and attended the show,now what do you do with all the information that you gathered?By Christine CorelliExhibiting in an industry show is the best marketing vehicle for suppliers and service providers tophysically obtain access to you and other potentialand existing customers. It is an excellent opportu-nity to display their product or service and obtainexposure to the largest number of buyers at anysingle event.If an exhibitor’s pre-show marketing strategywas well-planned, their display was impressive, andtheir exhibit staff performed well, you not only visited them at the show, but you also walked awaythoroughly informed and maybe even impressedwith what they had to sell or offer. The challengefor you (and them) is that often, what one exhibitor has to sell or offer may not differ a great dealmore than what many other exhibitors have to sellor offer.Thus, if you are planning to make a purchase,which product offers the most quality at the bestprice? For example, who can provide value-addeditems such as an extended warranty or reliable partsand service support? In short, which is the best dealthat will give you the biggest bang for you

ABC Auto Parts & Sales, Inc. Ph: 708/389-1456 Fax: 708/389-5126 Larry Brosten Vice President Auto Parts City, Inc Ph: 847244-7171 Fax: 847/244-7279 Andy Zalon Secretary/Treasurer C & J Auto Pars Inc Ph: 800/783-8121 Fax: 773/523-1158 David Anderson Immediate Past President I-55 Auto Salvage, Inc Ph: 815/467-2938 Fax: 815/467-7152 Sean Krause .