Valorization of by-products and residues
Manufacture/produce/process/package the right way the first time with no losses
Manufacturing the right way the first time without wasting… every manufacturing company's dream.
Companies in the agri-food sector have always worked with the concept of yield and they want it as high as possible. Even when this is the case, the losses and the downgraded products end up becoming products or even by-products that you try to sell at the best price according to the market price variation. The result is not always optimal or even satisfactory, but it's better than losing everything ...
Is there another solution? Well yes and it's called valuation
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Have you ever done a complete and detailed material balance to assess the performance of your manufacturing processes?
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Do you do it on a regular basis?
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Continuously?
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Can you quickly determine % product manufactured the right way the first time ?
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In dollars?
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In kg?
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What do you do with downgraded, damaged or non-compliant products?
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What about downgraded products, by-products and possibly losses?
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Have you estimated the value of the potential losses?
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Can your decommissioned products, by-products or even your losses become a raw material for a client other than the customer for whom the products were first intended?
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Could your downgraded products or by-products become value-added products if you minimally rework them and sell them in a different market?
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Have you ever assessed the potential added value you can give to your downgraded products or by-products?
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In dollars, in opportunities , in other potential opportunities?
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Have you assessed the value of your decommissioned products or by -products in other markets ?
Minimize rejects or not
Minimize downgraded products, by-products or residues :
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Is this always the best approach ?
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Is there a seasonality for the demand for downgraded products, by-products or residues that you produce?
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If so, how can you optimize your offer?
Each case is specific but there could be an advantage in manufacturing a certain percentage of downgraded products if certain opportunities make it possible to:
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Being able to sell them at a good price at certain times of the year in certain markets
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Use them as a raw material to manufacture one or more products with added value
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Reuse them in other products made in your own establishment and:
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save on the preparation of formulations
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save on raw materials
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improve your returns and operational speeds
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We can help you develop, implement or improve your valuation strategy residues and by-products so that you are able to reap a higher added value. It will also simplify/streamline your approach in order to improve your flexibility and efficiency while saving you money and possibly profits. You could do more with what you once considered junk or low-end products. This will greatly simplify the management of your inedible materials and your retained products by reducing them to a minimum while continuing to meet regulatory and normative compliance requirements and those of your customers (including those stipulated in the GFSI standards).
... You may have money sleeping somewhere! ...