Scrap metal recycling companies face several unique challenges today. 

A volatile economy, constantly evolving laws and regulations, and changing technology are just some of the areas recyclers navigate to stay competitive.  Last month we started a series on how ScrapWare software simplifies scrap metal management.  This month’s installment focuses on how ScrapWare simplifies regulatory compliance.

Staying in compliance

Regulatory compliance is essential for any business operating in today’s economy.  The ability to comply with various federal, state, and local laws–and document that compliance– is needed for business continuity.  As the popularity of recycling programs has increased, so has the regulatory burden on recycling businesses.  Environmental, safety, and labor regulations are like those for other manufacturing industries.  The scrap metal recycling industry, however, has its own industry-specific regulations related to the buying and selling of recyclable materials, mainly addressing material theft. These laws are always changing, making compliance even more complicated.  Industry-specific software designed uniquely for scrap metal recyclers can enable regulatory compliance, giving these companies a competitive advantage and simplifying scrap metal management.

ScrapWare software provides an array of tools to simplify compliance for scrap metal recycling companies. ScrapWare includes anti-theft procedures as part of daily operations, boosting security and supporting compliance efforts.   Robust anti-theft features include:

DRIVER’S LICENSE SCANNING – Scan driver’s licenses for immediate and permanent association with purchase tickets.

SIGNATURE AND THUMBPRINT CAPTURE – Permanently link signatures or thumbprints with purchase tickets. Instantly reproduce the data for any ticket when requested by law enforcement.

NETWORK DIGITAL CAMERA INTERFACE – Linked with the scale interface, this option allows you to take photos manually or automatically. Once photos are permanently associated with a purchase ticket, you can print them or save them as digital files for emailing or uploading.

TAG AND HOLD – Tag and hold requirements can be complicated. They also vary widely by state and locality. ScrapWare removes the complexity with tag printing for specific commodities.

PAYMENT METHODS – ScrapWare allows you to choose cash, check, or split payments to comply with your local anti-theft laws.  ScrapWare supports ATMs and cash dispensers, reducing the potential for robbery and employee theft.

ANTI-THEFT REPORTS – State and local anti-theft laws are a moving target. ScrapWare keeps you in compliance with a full suite of reports including Anti-Theft, Police, Peddler, Tag-and-Hold, and specific state and local reports.

DATA FILES – Some states require scrap recyclers to upload anti-theft data files. ScrapWare supports BWI, Leads Online, Texas DPS, and several other state and custom formats.

Extra Benefits of Thorough Compliance

Comprehensive regulatory compliance is beneficial financially and in business operations.  Having well-documented compliance records saves time with government agencies during routine audits or investigations.  It has additional positive consequences as well.  Compliance efforts will at the same time:

  • Improve operational efficiencies.  Staying in compliance helps ensure all operations are conducted efficiently and in accordance with regulations.  These efforts will usually streamline procedures and processes and get all employees on board with consistent practices. 
  • Reduce risk and liability.  Keeping up to date with changing laws will reduce potential penalties and fines.  The ability to document compliance can also protect senior management and owners from legal liability.    
  • Enhance brand value.  Demonstrating a commitment to safe and ethical practices will increase community and customer trust in a business. This improved public image translates into better brand value. 
  • Create greater resiliency. A company that already has compliance systems in place will be more resilient to future changes in laws and regulations.    

What’s at stake? Just as there are tangible benefits to thorough and well-documented regulatory compliance, there are risks to inadequate compliance.

  • Forced closure.  First and foremost, non-compliance can lead to a loss of license or ability to operate a business.  A shutdown may be temporary until compliance is achieved but may have lasting implications for profitability.
  • Financial penalties. Non-compliance can result in significant fines and penalties.
  • Legal liability.  If any person or entity claims they were harmed by the non-compliance, there can be legal liability for owners and senior management. 

How ScrapWare Helps

ScrapWare Corporation provides software specifically designed for scrap metal recyclers.  Its product includes a robust collection of features scrap metal recyclers use to comply with a variety of ever-changing state and local laws and regulations.  ScrapWare has continued to refine its product over the past 35 years to help its customers use technology to remain in full compliance with the evolving regulatory landscape.    ScrapWare customers rely on ScrapWare software to keep them in full regulatory compliance so they can focus on other elements of their recycling business.    


About ScrapWare Corporation: Since 1989, Rockville, Maryland-based ScrapWare Corporation has been the software of choice for the recycling industry. Its ease of installation and simplicity saves users time and money while helping them achieve compliance and maintain accurate business insights. With state-of-the-art functionality tailored to each organization’s unique requirements, ScrapWare is an advanced dynamic software solution that alleviates the most pressing recycling industry worries. For more information, please call (301) 517-8500 or visit https://www.scrapware.com/.