Metal scrap audit

Metal Scrap Audit – A Checklist Every Business Can Use!

On: Jul 6, 2023
By: TransMetal
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Category: Blog
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If you’re a small, medium, or large manufacturing company operating in most industries in the United Kingdom, chances are you’re producing scrap metal throughout the year, and not small quantities of it. What can you do with this scrap metal? Is there a way to recycle it? What are the advantages and the alternatives?

These are key questions you’re likely asking yourself right now, and this blog post will help answer all of them. Continue reading and find out what exactly is a scrap metal audit, why your business needs it, and the checklist you can follow to ensure the process gets done!

What is a Scrap Metal Audit?

A scrap metal audit, a good one at least, is a systematic accounting and assessment of a company’s scrap metal management procedures. It entails assessing a company’s practices for managing its scrap metal, from collecting and sorting to storage, delivery, recycling, and disposal. The audit’s goals are to pinpoint areas for improvement, guarantee legal compliance, and boost the effectiveness and sustainability of scrap metal processing procedures at the business.

The thoroughness of scrap metal records, adherence to environmental and safety requirements, the efficiency of recycling or disposal procedures, employee training and awareness, and other factors are all ideally checked during the audit.

The audit produces recommendations and an action plan to improve the management of scrap metal, decrease waste, lessen the impact on the environment, and even save money. Companies can continuously improve their procedures — not only improving the efficiency of their scrap metal management but also support more ethical and ecologically friendly operations.


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Does My Business Really Need One?

A scrap metal audit might look like an expensive, arduous, and unnecessary task, but that couldn’t be further from the truth. There are a number of very good reasons why businesses operating in any industry should undergo an audit at least once a year, and below, we’ll go over just some of them.

  • Cost Savings: A scrap metal audit can uncover potential opportunities for cost savings within your business. By evaluating your scrap metal management processes, you can identify areas where you may be incurring unnecessary expenses or where operational inefficiencies are leading to financial losses. The audit may reveal options for optimizing collection, storage, transportation, and recycling methods, ultimately reducing expenses associated with scrap metal handling.
  • Compliance with Regulations: A scrap metal audit ensures that your business is in compliance with relevant laws and regulations regarding scrap metal management. By conducting an audit, you can identify any potential areas of non-compliance and take corrective measures. This helps mitigate legal risks, avoid penalties, and maintain good standing with regulatory authorities. Regulations frequently change as the recycling of metals becomes more important nationally, and this makes a scrap audit more necessary.
  • Operational Efficiency: An audit helps identify inefficiencies in your scrap metal handling processes. It allows you to assess the effectiveness of your current methods and identify opportunities for improvement in how you store, recycle, and handle scrap materials. By optimizing your management practices, you can streamline operations, reduce costs, and maximize the value of your scrap metal.

Scrap audit


Checklist: The Questions You Need to Ask Yourself

Now that we have a comprehensive understanding of what a scrap audit is and why a company needs to conduct it regularly, we finally come to the checklist. This checklist should help you gain an understanding of how your company handles scrap, how it is stored, how it is processed, and how it is recycled, and all the ways you can do better in all these aspects.

#1 Understand the Recycling Process

Understanding the recycling process is an integral part of conducting a scrap audit for businesses. It allows you to assess the effectiveness and efficiency of the company’s recycling practices. During the scrap audit, examine the recycling methods employed by the business. Assess whether the company follows industry best practices in how each scrap metal is collected, handled, and processed. Evaluate the effectiveness of the recycling techniques used by your business and determine if they align with environmental standards and regulations.

Since recycling is key to handling scrap metal stored in your company, it is a good idea to start by gaining an overview of standards and procedures currently prevalent in the industry your company operates in.

#2 Look at Companies’ Internal Procedures

Next, you need to evaluate the company’s methods for segregating metals. Assess if they have established clear procedures to separate various types of metals, such as ferrous and non-ferrous metals, based on their magnetic properties or visual appearance. Verify that the segregation process is well-documented and communicated to employees.

#3 Account for the Materials Currently in Inventory

Conducting a physical inventory count of all the metals currently in store in the company is important, as it helps you gain a sense of scale regarding the amount of scrap metal you deal with and how much cost savings you can expect when improving processes. This involves physically counting and verifying the quantities of each metal type. Ensure accuracy by involving multiple individuals and cross-checking the counts.

#4 Sort the Metals

Collect the scrap metals from various sources within the business and ensure proper segregation. This may involve implementing designated collection points or containers for different metal types. Separate ferrous metals (containing iron) from non-ferrous metals (e.g., aluminum, copper, brass) as they have distinct properties. Document the sorted metal types and quantities for accurate record-keeping. This documentation serves as an essential reference for inventory management, financial reporting, and compliance purposes. It is an essential part of a scrap audit that helps you continue improving your company’s recycling processes.

#5 Settle on a Method of Handling the Metals

Finally, you need to settle on a method for handling the metal. Here at Trans Metal, we help companies of all sizes handle their scrap metal in a cost-efficient manner. We handle transporting, processing, and recycling. You only need to call us.

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