Butler Auto Recycling

three times before it is stocked, with a fourth inspection before delivery. This also helps to minimize unknown damage at the time of sale.” The warmer climate of Pensacola, FL where Butler Auto Recycling is located, allows Butler to practice a pri- ority-based dismantling system. As Jim Butler, vice presi- dent explains, this is driven by their customers’ immediate needs. Jim’s father founded Butler Auto Recycling 42 years ago. With 27 acres and 80,000 square feet being used across seven buildings, the company processes about 1,500 cars each year.

“When not dismantling something already sold we use our inventory management system to make decisions as to whether or not a part is stocked in the warehouse or left with the vehicle,” Butler says. “I believe this is the best of both methods.”

Strategies to Reduce Costs Hoffman advises other full-service auto recyclers looking to reduce their costs to utilize running multiple reports. “Know what all your expenses are. Know where every dime is coming from and know where your money

Automotive Recycling

is going,” Hoffman says. “Determine what it costs you to run your business. Are your salaried employees carrying their weight or are they just going through the motions? Do you have a commission plan in place or some other performance-enhancing program? If not, you should.” Shroyer advises full-service companies to keep looking for inefficiencies in their system and adapt to the changing environment. As an example: before Internet sales became such a large part of Shroyer’s business, the company had a large number of salespeople working tele- phones and handling walk-ins.

“Because so many orders now start with an online

search, we are able to process the same number with half as many salespeople,” Shroyer says. Of course, one of the largest immeasurable costs is employee turnover. As Meyer explains, the cost to train a new hire is significant. While pay is important, it isn’t the top reason that employees leave a job. “Implement benefits that support families. Have reg- ular meetings to highlight team success and growth. And create a climate and culture that is positive, exciting, for- ward thinking and collaborative,” Meyer says.

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