Whenever I'm doing consulting for a company that wants a scrap and recycling program setup, I inevitably get asked THE question. There are so many reasons that I'm afraid I might bore you with all the answers. So I'll hit the highlights.
Lets start with one of the biggest reasons, security.
Most companies overlook this aspect of scrapping out excess inventories. Security starts at work, while the material is still on your companies property. I can't tell you the number of times I've been called in on investigations after the fact. Forgetting about security is the most costly mistake of all. Now all of a sudden we have our material coming back to us as rejects we have to replace.