What is “Precycling” and how did the term originate? Precycling is a term coined by McKernan Packaging Clearing House to describe the process of pre-consumer recycling. Basically, it is re-purposing unused surplus/obsolete packaging (bottles, jars, caps, sprayers and much more) back into the industry. It’s more cost-effective than recycling, which only returns the price of raw materials minus processing & hauling/freight costs.
So how did Precycling come to be? Mr. Ed McKernan founded The E.J. McKernan Co. (dba: McKernan Packaging Clearing House) in the late 1960s while working as a sales rep for various aerosol component & machine manufacturers. One day, while visiting one of his customers, he noticed several stacks of palletized aerosol caps in the corner of his customer’s warehouse and realized these same caps had been there on several previous visits. Ed asked his customer why he was “saving” these caps. His customer had decided to change to another color cap for his product and the caps in the corner were left over stock that was no longer needed.
The caps were just taking up space. The caps were “Surplus” inventory (obsolete, excess or overstock). Ed realized that a different customer of his could use this size cap and made a deal between his two customers for one to buy the caps from the other and the buyer would pay the freight to move the caps. Ed took a commission (or finder’s fee, if you will), and it was a Win, Win, Win situation. The original owner of the caps got some return for his investment and freed up valuable warehouse space; the buyer got caps he could use at a very reduced price and, Voila! The Clearing House Division of the E.J. McKernan Co. was formed!
Why should you Precycle? For starters, it’s an efficient alternative to the traditional disposal of materials to landfills. It also conserves energy and non-renewable resources, replacing the need for primary extraction and the manufacture of new plastics.
Precycling is also a profitable alternative to recycling. By letting McKernan purchase your surplus/obsolete packaging; your company will enjoy the fastest, most rewarding way of eliminating surplus packaging from your inventory. Scrapping and dumping does not recover as much of your initial investment as the McKernan Precycling option does.
And if environmental and profit motivations aren’t enough, Precycling helps prevent opportunity loss and added costs. Excess Inventory takes up valuable floor space in the warehouse that prevents you from offering newer, more relevant products to consumers. And the costs involved with storing unused packaging can add up. Utilities and labor are just a couple of examples. Employees who move inventory in and out of storage and organize it must be paid, which means you pay labor for the management of excess inventory.
Are you ready to start Precycling? Call McKernan at 1-800-SURPLUS, or visit www.webuypackaging.com for a free offer. And remember, when McKernan buys surplus packaging, they pay the cost of freight, making it free to move your obsolete inventory. Call Today!
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