Rejection Does Not Mean Sell Cheap Or Export
Problem / Opportunity:
A company that sells TPO needed a solution to fix 80,000 lbs. of mixed-color material that was rejected by their customer due to the presence of both nylon and TPU (urethane) contamination. Facing a significant loss in material value, the company was looking for options other than trashing the material or selling “as is” for export.
Impact on Customer:
The options available to the customer were as follows:
- Recall the material and look for another buyer resulting in a significant return freight cost
- Trash the material, or
- Export the material “as is” for a fraction of the prime value.
Based upon these options, the customer would incur a significant loss compared to the original sale price.
Butler-MacDonald’s analysis confirmed that the nylon and urethane contamination could be separated very economically from the TPO.
Butler-MacDonald delivered a 91% yield of TPO with a purity acceptable to the customer’s client. This resulted in the use of the material as originally intended at the original sale price. Instead of the damaged reputation and significant losses that would have been incurred by the other options, the customer realized a profit on the material and kept its client happy.
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