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Blog October 2020 Updated April 2021

How multi-level price management provides flexibility for metal recyclers

Mark Valdes-Dapena Metal Solution Expert

AMCS Recycling Software end-to-end solution to automate metal recyclers operations

Flexibility is key. This becomes clear from the webinar on multi-level price management for metal recycling companies, in which Christian Pollklesener, Head of Professional Services at AMCS in Germany, explains the endless possibilities of the AMCS Recycling Software and also shows how easy it is to work with.

The AMCS Recycling Software is an end-to-end solution globally automating all the operations of metal recyclers. It already helps more than 600 recyclers worldwide to adapt to new market conditions with technologies designed to provide an overall insight into the operation, while at the same time protecting margins.

The system is well thought out and very extensive, including amongst other things material quality and contamination, downtime of facilities, inventory management, supplier communication, safety, crime prevention, and multi-level price management, with the possibility to handle complex pricing structures and maintain flexibility around price changes.

Flexible multi-level price management for metal recyclers

Multi-level price management provides metal recyclers with endless possibilities. For instance, prices are based on a multitude of criteria like commodities, customers, customer groups, customer locations, date range, quantities, price codes, or sites.

Adding a price can be done in a variety of ways; manual, linked to a base price index or a market price index, using price categories, creating price-quantity-scales per entry, or a differentiation based on customer location. Additionally, multi-level pricing management enables metal recyclers to implement price changes as frequently as necessary.

Flexibility is key. The AMCS solution provides metal recyclers with the constant possibility to set up customer-specific prices as agreed. This includes, among other things; creating contracts with or without fixed prices, multiple price files for a customer, and price files per price category.

Automatic invoicing based on metal market exchanges

Prices can be linked to a base price list or market price lists with a plus or minus adjustment for each customer. Market price lists can be based on several metal exchange markets. For Central Europe, these are the London Metal Exchange, the BDSV, and the EUWID and for the US the American Metal Market, the AMM.

The system also has an option to download the close price of the LME, which is automatically inputted into the system to create a contract based on the latest market price. Fixed prices based on, for instance, the LME, can be processed and a fixation notice mailed to the customer.

Invoicing is mainly done automatically, which, as a result, reduces resource costs for several reasons. For instance, it prevents mistakes and there are fewer manual interventions before invoicing, which reduces time and effort enormously during the invoicing process. As line items are automatically updated, there is no manual rework if price changes occur.

Adjustments in the price list automatically linked to customers

The webinar includes an overall view of the different possibilities the solution provides, including a live demonstration in which, among other things, Christian Pollklesener shows how flexible a base price list can be created, based on personal preferences.

For instance, the price list is connected to the LME for commodities like copper, including the description, profiles and prices, and linked to the specific customer. Prices can also be changed according to the percentual adjustment made during grading/inspection of the load, for instance, minus 20%. The different options within the base pricelist are used in the price files, including the possibility to adjust this specific pricelist and/or customer.

According to Christian Pollklesener, this is a great advantage. “There is no need to adjust every single entry from the price list for the different customers. Updating the basic price lists is sufficient”, he explains during the webinar. “These multiple, different prices enable flexibility. Especially since updates are always available in the system and the invoicing is automatically done as soon as a line item for the specific commodity is done.”

Simultaneously increasing margins and improving customer service

The examples Christian Pollklesener mentions during the webinar are just a few from a vast array.  “Flexibility and endless possibilities have globally proven the added value of the system throughout the years at over 600 recycling companies. Functionalities like the contracts, base price lists, market price lists, and price files per customer, determine the added value of the multi-level price management”, he emphasizes. “This results in increased growth, higher margins, and lower costs, while at the same time increasing customer satisfaction.”

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