Auto recycling has been around since the first cars rolled off the production lines. It is considered the most successful recycling industry ever, recovering over 75% of a vehicle’s usable parts and resources. The industry is represented by the Ontario Automotive Recyclers Association, which consists of 120 of the largest and most modern facilities.
OARA and its’ members have become computerized to share information and inventories across Ontario, Canada, and even North America. OARA’s mission reflects dedication to the cost-effective and environmentally-responsible dismantling of automobiles and the subsequent recycling of automotive parts. Through advocacy and education of members and industry stakeholders we strive to create an environment that enhances the stability and viability of our industry in Ontario.
Let’s look at the two major life cycle paths of an "end-of-life" vehicle: the unwanted and the accident auto. Through normal use and abuse a vehicle gradually degrades to the point the owner feels the vehicle is no longer roadworthy or economical to maintain. Auto Recyclers will either buy direct from the consumer or through a car lot. Because of its age, this end-of-life vehicle has little value, as the possible recycled parts are usually worn out and/or not in demand. These cars require trained personnel and dedicated technology to properly dismantle and process: removing tires, batteries, CFCs, and a variety of fluids before the remaining hulk can be crushed and shredded for the recovery of the scrap metal.
The second major life cycle is the accident auto or salvage vehicle. If an insurance company deems the vehicle to be a "write off", Auto Recyclers purchase the unit either by a salvage contract, sealed bid or at salvage auctions. These salvage units tend to be of a newer vintage and therefore produce used parts of a much higher quality and are most desired by the Recyclers and their customers. I like to consider the sale of used parts to be one of the highest form of the 3-R’s: reducing, reusing and then recycling.
Today’s Auto Recycler uses an elaborate electronic system to inventory, locate, sell and to help in deciding what to dismantle. A computer-generated information sheet is produced for each vehicle as it comes into the yard. This sheet lists all parts on a vehicle, complete with all possible options. This allows for very precise inventory description and inventory control. Normally, vehicles are inventoried within 24 hours of arrival. This gives the sales staff accessibility to all of the inventory prior to searching other suppliers. All vehicles are given a stock number and all parts from a vehicle utilize that same stock number. This allows the computer to track sales by make, model or year of the vehicle.
Each individual part is given an industry-standard product code which is used by most Auto Recyclers. This opens the door for our industry to locate the exact part we are looking for. Computer software and manuals allow for searching for any interchange between various vehicle models and years. Car manufacturers don’t make all of their own parts, and some parts do not change from year to year; so a 1995 Chrysler part may indeed fit your 1993 Lincoln.
When an insurance appraiser, consumer, body or mechanical shop requests a part, the Recycler checks their own inventory first to see if they have the part or appropriate interchange. If it is unavailable in his/her inventory, Recyclers in OARA have two options - Voice or Data links to other Recyclers across the province, Canada and North America.
The Voice Circuit is comprised of 50 Recyclers across Ontario hooked up to a dedicated telephone network. This circuit is like a large intercom network - when you pick up the "hot line" phone in one recycling yard, you are "live" in 49 other yards to buy and sell parts. The system is very fast and is comprised of some of Canada’s largest Recyclers. Three options are available for Data Communications: the Orion Network, the Allied Network and the Eden Network. The Orion and Allied systems are both computer driven and satellite based. You simply type your part request into a terminal and broadcast to over 2,000 recycling yards across North America. The computer telephones a number which links to a satellite. Each yard has a unique address coded with area, province or state, and city information. This enables the part requester to check for the item in ever increasing circles, quickly and efficiently.
Recently ADP Hollander, the company that designed the major inventory management system, introduced the Eden Network with the ability for part requests and responses to be linked to each other’s inventory databases. This enables Recyclers to access part information 24 hours a day. For example, when a part is searched for in your inventory database and unavailable, a simple strike of an "E" key immediately searches three inventories loaded daily from three yards of your choice. An "E" flashes at the bottom of the screen if the part is available at the one of the exchange yards. If no "E" flashes, we simply type the letter "L" for locate. At this point the computer telephones a mainframe in Minneapolis and searches for the part through a huge inventory that Recyclers have downloaded to. The reply returns in about 20 seconds indicating up to thirteen possible inventories that have the request. This allows the Recycler to choose the closest part to minimize shipping time and costs. This system has over 2,000 subscribers. We have come a long way since our system consisted of telling the customer, "I don’t know if we have that - bring your tools and come and look."
OARA has a dedicated shipping system (known as the Roadrunner) for parts pickup and delivery among members twice weekly. The transport trucks were designed exclusively to carry auto parts. Racks are an integrated part of the trailer and are designed to carry everything from windshields to complete front ends or rear clips. Getting parts to and from other members quickly and economically are two major reasons why Recyclers have been so successful in working together to ensure that used auto parts are readily available.
Used auto parts play a significant role in keeping the cost of repairs down - not only for consumers but also for insurance companies. On average, a used part is 50% cheaper than a new part of like kind and quality (LKQ) - so when parts are available and utilized, the cost of repairs and therefore the cost of insurance is kept to a minimum. Most Recyclers offer a minimum 90 warranty on all parts sold, and these parts are genuine - no offshore replacement parts that don’t always fit or work.
Many hurdles have been crossed to change the "junk yard" image; we continue to emphasize the economic and environmental good sense in using used parts; we are continuing our battle to create a level playing field for all those who dismantle and recycle automobiles; and we are striving to improve the disparity in professionalism within our industry through education and effective licencing.
Computers, satellites and general networking have been revolutionary in improving many businesses. We are continuing to educate Recyclers on how technology, regulatory compliance and proper marketing can raise a businesses from a "junk yard" or "scrap dealer" to a "Professional Auto Recycler."
Submitted by Steve Fletcher, Executive Director
Ontario Automotive Recyclers Association
