SKD looks to its scrap processor to help manage the process. The processor hauls away the material on a regular basis, making sure that SKD can focus on production. Seldom does SKD have to call its processor for scrap removal. As with most medium-volume scrap generators, the service of the scrap processor is as important to SKD as price. High-volume automotive and other plants have more options in how they dispose of their ferrous scrap.
Corporate strategy plays a role in the automakers' decision.
Some high-volume plants outsource the disposal of their ferrous scrap in order to avoid administrative and capital costs. This gives the scrap processor control over secondary processing, logistics, and marketing. Chrysler outsources its scrap disposal to OmniSource. Organizations whose own employees oversee scrap disposal have to manage secondary-processing, logistics, and marketing activities. General Motors takes this approach through its corporate scrap team.