ARN case (analysis)
... required for delivery and collection. The total cost in transporting the materials in this pipeline is estimated at EUR 11.8million. To increase competition, optimize transport distances and the continuity in removal of materials, ARN formulate strict requirements with the recycling companies. Each individual recycling company submits a tender for processing one or several types of material. Shredder companies make up the last part of the ARN network. All the shredder waste is now dumped because there are no alternative methods of processing. A critical factor of the ARN network is that it is not very stable. Although each of the different types of companies has contracts with ARN, they do not interact directly; all communication is managed through ARN. Because different individual companies make up the ARN network, the satisfaction level for each of the companies is going to be lower. ARN must try to satisfy all the companies simultaneously which is nearly impossible. In order for end-of-life vehicle to be recycled, it has to move through four different companies, starting with the dismantling and ending at shredding, which might add to unnecessary costs. Thus, it is very costly to recycle one unit of end-of-life vehicle. Suggestions Since EUR 11.8million is spent each year for materials in the pipelines, ARN should decrease the time materials sit in the pipeline by increasing the volume of car materials and decreasing the number of dismantling companie...