To help reducing scrap accumulation and allow reusing certain objects, Mercado Eletrônico – a B2B e-commerce operator in Latin America – is conducting a direct auction system for over 20 years now. It’s a platform that finds buyers for all kinds of industrial scrap, such as ferrous and non-ferrous materials, paper, cardboard, plastic and reusable oils.
Sustainability for the sake of businesses
This service is available to Mercado Eletrônico’s customers or to companies that wish to engage in direct auction only. To participate as a seller, any company must select the scrap(s) it wants to discard, check the quantities (or foresee availability for a given period), identify current buyers and send this information to Mercado Eletrônico.
“We analyze the offered materials and search our database for potential companies interested in purchasing them. In partnership with the client, we define the initial value based on current weight and previous quotations made in the market”, says Valdir Calsavara, Mercado Eletrônico’s Auction Manager. “After this stage, the operation is identical to that of a common auction: buyers will bid until the scrap lot is bought by one of them”, adds Mr. Calsavara. The platform transacted more than R$ 250 million in the last 10 years, reaching over R$ 50 million of goodwill.
For sellers, in addition to goodwill, another major advantage is the significant operating cost reduction, as the platform shortens transaction time by finding the right buyer more efficiently. “Our business model contributes also to reduce the chain cost, as service remuneration is in charge of buyers only”, adds Alexandre Moreno, Service Director at Mercado Eletrônico.
We select participants from our database, along with indications from selling companies. Anyone who wishes to participate as a buyer must meet the customer’s minimum requirements, such as certifications, compliance with environmental standards, AVCB, etc., and deliver them to ME – thus proving their concern with sustainability.
“The whole process is very strict, in order to ensure the parties’ integrity and traceability, from the choice of participating companies to the delivery of the final process report”, adds Mr. Moreno.
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