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Scott Recycling — Operating Playbook

Operating reference for Scott Recycling: the e-waste and electronics recycling operation, scrap metal processing, multi-channel resale, and fleet logistics serving a 10-state region from Sunbright, Tennessee.

This document defines what we process, how we process it, what we sell, how we sell it, and what we won't touch. It is the recycling equivalent of the Scott SuperStore operating playbook.

It is intentionally practical. Process over theory. Consistency over improvisation.

What This Business Is

Scott Recycling is an e-waste processing and electronics recycling company with three integrated operations:

  1. Pickup & Collection — the engine. We go get the material. Fleet of 15 trucks, 10-state service area, 31K+ pickups logged. Without pickups, the warehouse has nothing to process and sales has nothing to sell. Every other decision supports keeping the trucks full and the material flowing.

  2. Warehouse Processing — the core. Electronics intake, sorting, grading, data destruction, refurbishment, and material separation. This is where value is extracted. A $2/lb mixed electronics load becomes $15/lb CPUs, $8/lb memory, refurbished laptops at $150-$400, and scrap metal at commodity prices. Processing discipline determines margin.

  3. Multi-Channel Sales — the revenue. Processed goods sold across eBay, Amazon, Walmart, website, and local buyers. Weighted materials sold to downstream processors and commodity buyers. Revenue per pound is the scorecard.

This is important: if you read this document and come away thinking "we should add more sales channels," you've read it wrong. More channels without more processing capacity just creates inventory bottlenecks and listing overhead. The constraint is always processing throughput. Fix throughput first, channels second.

Revenue Stream Priorities

Stream Role What "good" looks like
Processed electronics (refurb + components) Primary profit center Revenue per pound processed, sell-through rate, days-to-sale
Pickup service fees Primary volume driver Pickups per week, route efficiency, cost per pickup
Scrap metal / commodities Steady revenue floor Price per pound (market-driven), volume, processing cost
Data destruction services High-margin specialty Certificates issued, compliance record, customer retention
Liquidation / general merchandise Opportunistic Channel margin after fees, sell-through rate

What We Process

Tier 1 — Core Materials (Always Accept)

These are the materials we accept every time, from every customer. Standing inventory. Known processing paths. Predictable recovery.

Material Processing Path Revenue Channel Notes
Laptops Sort → test → grade → refurb/part → list eBay, Amazon, Walmart, local Highest per-unit margin. Full lifecycle in sr_inventory_processing.
Desktop computers Sort → test → component harvest → list eBay, local CPUs, memory, power supplies, drives.
Phones / tablets Sort → test → grade → list eBay, Amazon Fast-moving, high density value.
CPUs (processors) Pull → grade → list eBay, commodity buyers Gold recovery value plus resale. Track by model.
Memory (RAM) Pull → test → grade → list eBay, commodity buyers DDR3/DDR4/DDR5 all have value. Test before listing.
Hard drives Pull → destroy (NIST 800-88) OR test → list Destruction certificates / eBay HIPAA items get destroyed, working drives get listed.
Servers / networking Sort → test → component harvest → list eBay, direct to businesses Enterprise equipment holds value.
Monitors / displays Test → grade → list or recycle eBay, local LCD/LED only for resale. CRTs go to certified processor.
Printers / peripherals Test → list if working, scrap if not eBay, local Low individual value, high volume. Batch process.
Scrap metal (steel, aluminum, copper) Separate → weigh → stage → sell Commodity buyers Price is market-driven. Focus on clean separation.
Circuit boards Accumulate → grade → sell Precious metal refiners Gold, silver, palladium recovery. Sell by grade.
Cables / wire Accumulate → weigh → sell Copper buyers Copper price drives value. Separate by type.

Tier 2 — Accepted with Conditions

Material Condition Notes
CRT monitors / TVs Accept with proper handling Lead-containing glass. Must go to certified CRT processor. Do NOT store indefinitely — CRT stockpiling is an EPA concern.
Batteries (Li-ion, NiMH, NiCd) Accept with proper storage Segregated storage area, fire risk. Ship to battery recycler. Do not accumulate beyond capacity of containment.
Toner / ink cartridges Accept in limited quantities Recycle or sell to refurbisher. Not a profit center — accept as customer service.
Medical equipment Accept ONLY with data destruction agreement HIPAA requirements. All data-bearing components get NIST 800-88 treatment. Document chain of custody.
Large format (copiers, plotters) Accept if pickup logistics work Heavy, low per-pound value. Accept as part of a larger pickup, not standalone unless customer pays transport.

Tier 3 — Accept Reluctantly / Decline

Material Policy Why
Household appliances (fridges, washers) Decline unless part of larger load Not our core competency, low value, refrigerant handling complications.
Furniture Decline Not e-waste. Refer to appropriate recycler.
Hazardous waste (paint, chemicals, fluorescent tubes) Decline Requires hazmat licensing we don't hold. Refer to TDEC hazardous waste programs.
Radioactive materials (smoke detectors in bulk) Decline NRC licensing required. Individual units in e-waste loads are incidental; bulk collection is not.
Solar panels Evaluate Growing stream. If pursuing: need processing path for silicon, glass, aluminum. Currently no established path — decline until R2 or partnership addresses it.
EV batteries (high-voltage) Decline Specialized handling, fire risk, transport regulations. Not until specific capability is built.

The acceptance decision tree: 1. Is it e-waste or recyclable material? → If no, decline 2. Do we have a processing path for it? → If no, decline or evaluate 3. Does it require certifications we don't hold? → If yes, decline 4. Is the pickup logistics cost justified by the material value? → If no, decline unless bundled with higher-value load

Pickup Operations

The Pickup Decision

Every pickup request is evaluated on:

  1. Material type and estimated volume — is it worth sending a truck?
  2. Distance from nearest route — can it be added to an existing route or does it need a standalone trip?
  3. Customer history — repeat customer with good material gets priority
  4. Equipment needs — can a box truck handle it or do we need a flatbed/tractor-trailer?

Route Efficiency

The scheduling system (sr_scheduling + OpenRouteService) optimizes routes, but the fundamental rule is:

A truck should not leave the yard for less than a full load unless it's adding stops to an existing route.

Partial loads are the fastest way to kill route profitability. The dispatcher's job is to cluster pickups into efficient routes, not to accommodate every request same-day.

Pickup Types

Type Vehicle Typical Load Notes
Standard pickup Box truck Mixed electronics, 500-5,000 lbs Bread and butter. Most pickups.
LTL (less-than-truckload) Coordinated with carrier Variable For distant customers outside truck range. sr_scheduling tracks LTL pickups.
Tractor-trailer Tractor + trailer Full trailer, 10,000-40,000 lbs Large accounts, cleanouts, data centers. High value per trip.
Emergency/priority Nearest available Variable Customer with compliance deadline, data breach cleanup. Premium service.

Customer Contact Cadence

The call queue system (sr_management_fixes) automatically prioritizes customers:

  • Queue A — Active customers due for contact based on historical pickup frequency
  • Queue B — Customers approaching DM date threshold (potential churn)
  • Queue C — Customers with escalated issues
  • Queue D — Pickup requested, needs scheduling

CSRs work the queues in priority order. The system calculates call frequency from 4 years of pickup history — trust the algorithm, don't override it without a reason.

Prospect Acquisition

Prospect workflow runs through sr_management_fixes — the prospect queue, stages (prospect_stage, prospect_bucket, prospect_csr_id), CSR outreach tracking, and contact cadence are all live there. Current snapshot: 791 partners tagged as customerType = 'Prospect'.

A dedicated scraper module (sr_prospect_automation) exists on disk for automated multi-source prospect discovery (Google Places, OSM, Azure Maps, Foursquare) but is not currently installed in production. Decision pending: install the scraper to auto-populate the prospect queue, or continue with manual prospect addition.

Target prospect profile: - Businesses that generate recurring e-waste (IT departments, schools, hospitals, government offices, property management companies) - Located within current route range (prefer adding to existing routes) - Volume justifies pickup cost

Warehouse Processing

Receiving

  1. Weigh incoming load — total weight recorded per pickup via sr_management (the actual_weight field on customer_pickups and box_details.actual_weight computed from gross − tare). 26K+ production pickups use this workflow.
  2. Verify against pickup ticket — material type and estimated quantity
  3. Sort into processing streams — electronics to sorting area, metals to weigh station, hazardous to containment
  4. Issue receipt — customer gets weight receipt, chain of custody begins for data-bearing items

Sorting

The 3-photo sorting process (documented in sr-docs SOP): 1. Photo of unsorted material 2. Sort into categories (laptops, desktops, phones, peripherals, cables, scrap, etc.) 3. Photo of sorted categories with count

This creates an audit trail from raw intake to categorized inventory.

Device Processing (Electronics)

For each device type, sr_inventory_processing tracks the full lifecycle:

Laptops: 1. Sort → visual inspection → boot test 2. Grade: A (works, good cosmetic), B (works, cosmetic issues), C (parts only), D (scrap) 3. A/B grades: data wipe → refurbish (clean, replace battery/charger if needed) → photograph → list 4. C grade: harvest components (screen, keyboard, battery, charger, RAM, drive, etc.) → list components 5. D grade: harvest precious metals (CPU, board) → scrap shell

Phones/Tablets: 1. Screen test → battery test → boot test 2. Grade by functionality and cosmetic condition 3. Working units: factory reset → photograph → list 4. Non-working: component harvest or precious metal recovery

Desktop Computers: 1. Open → inspect components → boot test 2. Harvest: CPU, RAM, GPU, PSU, drives 3. Test components individually 4. List tested components, scrap remainder

Data Destruction

Non-negotiable: NIST 800-88 compliance on all data-bearing devices.

Media Type Method Verification
Hard drives (non-HIPAA) Software wipe (Clear) or physical destruction Wipe report or destruction log
Hard drives (HIPAA) Physical destruction (shredding) Destruction certificate issued to customer
SSDs Secure erase (Purge) or physical destruction Verify with read-back attempt
Phones/tablets Factory reset + verification Spot-check with recovery tool
Tapes / optical media Physical destruction Logged

Chain of custody is tracked from pickup to destruction. Never break the chain. If you can't verify that a data-bearing device was properly handled, it's a compliance failure waiting to happen.

Weighted Materials (Scrap)

Processed through the inline weighted-materials workflow in sr_management (box_details + customer_pickups + reports in sr_reports): 1. Separate by material type (steel, aluminum, copper, circuit board, cable) 2. Weigh each category 3. Record attributes: type, color, form, grade 4. Stage for sale at accumulated volumes 5. Sell to commodity buyers when price and volume align

Know your commodity prices. Steel, aluminum, and copper prices fluctuate. Don't sell at a trough if you have storage capacity to wait. But don't hoard indefinitely either — cash flow matters more than timing the market perfectly.

Sales Operations

Channel Strategy

Channel Best For Margin Volume Effort
eBay Individual electronics, components, tested parts High Medium High (listing, shipping, returns)
Amazon Refurbished electronics with consistent supply High High Medium (FBA handles fulfillment)
Walmart Refurbished electronics (less competition) Medium Low-Medium Medium
Website (Odoo store) Local buyers, bulk lots Medium Low Low
Direct / local Bulk scrap, local businesses Low High Low
Commodity buyers Metals, circuit boards, cables Market rate High Low

Listing Standards

Every listed item must have: - Accurate condition description — Grade A/B/C mapped to marketplace condition terms - Minimum photos — 4 per device (front, back, sides/ports, screen on for working units) - Honest defect disclosure — scratches, dents, dead pixels, missing parts. Better to under-promise. - Accurate specs — model, processor, RAM, storage, screen size. Pull from device, don't guess. - Competitive pricing — AI price research in sr_general_sales provides market comps. Price at or slightly below market for fast turnover.

Repricing & Aging

sr_multichannel_ecommerce runs automated repricing: - Competition repricing every 8 hours - Repricing rules every 12 hours - Amazon-specific pricing sync every 6 hours - Stale listing check daily

Manual aging rules (enforce on a calendar): - 0-30 days: full price - 30-60 days: first markdown (10-15%) - 60-90 days: aggressive markdown (25-40%) - 90 days: relist on different channel, bundle, or scrap

Electronics depreciate. A laptop that doesn't sell in 90 days is worth less tomorrow than today. Move it.

Returns & Customer Service

  • eBay: 30-day returns required for Top Rated Seller status. Budget for ~5% return rate.
  • Amazon: follows marketplace policy. FBA handles returns.
  • All channels: honest listing descriptions minimize returns. A return that could have been prevented by an accurate description is a process failure, not bad luck.

Social Media & Marketing

Platform Presence

sr_social_media manages 8 platforms with AI content generation:

Platform Purpose Posting Frequency
Facebook Community, local awareness, pickup scheduling 3-5x/week
Google Business Profile Local SEO, reviews, business info Weekly updates
LinkedIn B2B, enterprise customers, industry credibility 2-3x/week
Instagram Visual content, behind-the-scenes, brand 3-5x/week
YouTube Educational content, facility tours, process videos 1-2x/month
X (Twitter) Industry news, quick updates 3-5x/week
TikTok Short-form video, reach younger demographic 2-3x/week
Pinterest Infographics, recycling tips 1-2x/week

Content Strategy

The message: Scott Recycling handles your e-waste responsibly, securely, and conveniently. We come to you. Your data is safe. The environment is protected.

Content types: - Facility/process photos (sorting, processing, trucks loading) - Data destruction demonstrations (builds trust) - Pickup scheduling calls-to-action - Environmental impact stats (pounds diverted from landfill) - Customer testimonials - Industry news and regulatory updates - Behind-the-scenes employee content

What NOT to post: - Customer names/locations without permission - Serial numbers or identifiable device information - Anything that could identify data destruction customers - Pricing that locks us into rates

Workforce

Current Structure

57 active employees across: - Warehouse / Processing — sorting, grading, device processing, data destruction, shipping - Call Center / CSR — customer calls, prospect outreach, pickup scheduling, email campaigns - Drivers — pickups, deliveries, route execution - Dispatch — route planning, driver coordination, schedule management - Sales — marketplace listing, pricing, order fulfillment - Maintenance / Garage — fleet DOT inspections, equipment maintenance, facility repairs - Management — operations oversight, KPI monitoring, evaluations

Training

20+ structured courses in sr-docs covering every role. Sandbox environment at port 8888 for hands-on practice. Onboarding system (sr_onboarding) provides AI-driven, role-based training progression.

Day 1: Orientation, safety, facility tour, system logins Week 1: Role-specific SOPs, supervised practice Week 2-4: Increasing independence with oversight Day 30: Competency assessment

Performance Tracking

sr_operations_kpi monitors in real-time: - WIP (work in progress) per station - Bottleneck detection (where does material pile up?) - Trend analysis (productivity improving or declining?) - Daily directives (auto-generated priorities) - SMS/email alerts on threshold breaches

sr_evaluations provides periodic formal reviews tied to sr_job_architecture criteria.

Compliance

Active Compliance Requirements

Requirement How We Meet It Where Tracked
HIPAA (medical device data) NIST 800-88 destruction, BAA management, chain of custody sr-docs, sr_ewaste_compliance
DOT (fleet operations) DVIR inspections, driver qualification files, HOS sr_maintenance, fleet module
OSHA (workplace safety) Safety training, PPE, lockout/tagout, posted procedures sr-docs, training records
EPA / TDEC (environmental) Fluid handling, CRT processing, battery disposal sr-docs compliance guides
State recycling regulations Per-state requirements for 10-state service area Compliance calendar in sr-docs
Data privacy PII handling, access control, security policies sr-docs

Compliance Calendar

Monthly, quarterly, and annual tasks documented in sr-docs with responsible parties assigned. Key recurring items: - Monthly: DOT inspection review, data destruction log audit - Quarterly: safety training refresher, compliance self-audit - Annually: insurance renewal, license renewal, full compliance review

What Success Looks Like

Processing (primary scorecard)

  • Pounds processed per week (target based on capacity assessment — see capacity planning doc)
  • Revenue per pound processed (all streams combined)
  • Days-to-sale for listed electronics (target: ≤ 30 days average)
  • Processing cost per pound (labor + overhead)
  • Data destruction certificates issued (zero compliance gaps)

Pickups (volume scorecard)

  • Pickups per week
  • Average pounds per pickup
  • Cost per pickup (fuel + labor + vehicle depreciation)
  • Route efficiency (stops per route, miles per stop)
  • New customer acquisition rate (prospects → first pickup)
  • Customer retention rate (repeat pickups vs. one-time)

Sales (revenue scorecard)

  • Revenue per channel (eBay, Amazon, Walmart, website, direct)
  • Net margin per channel (after fees, returns, shipping)
  • Sell-through rate per category
  • Return rate per channel (target: < 5%)
  • Inventory turn rate (how fast does processed inventory sell?)

Workforce (efficiency scorecard)

  • Pounds processed per employee per day
  • WIP backlog trend (should be flat or declining)
  • Bottleneck frequency and location
  • Training completion rate
  • Safety incident rate (target: zero)

Compliance (safety scorecard)

  • Zero HIPAA incidents
  • Zero DOT violations
  • Zero environmental citations
  • 100% destruction certificates issued for HIPAA material
  • All driver qualification files current

Warning Lights

If any of these happen, stop and investigate: - Warehouse WIP growing for more than 2 consecutive weeks (processing bottleneck) - Customer churn rate exceeds 10% per quarter (service or pricing problem) - Return rate exceeds 8% on any channel (listing quality or grading problem) - Revenue per pound drops more than 15% quarter-over-quarter (market shift or mix change) - More than 20% of inventory is older than 60 days (pricing or listing problem) - Any compliance incident (immediate root cause analysis)

Review Triggers

The playbook itself is re-examined when any of: - Revenue per pound drops below a defined floor for a sustained month - A new material stream is added (solar, EV batteries, etc.) - Processing capacity is reached (need facility expansion decision) - R2 certification is achieved (changes processing requirements) - Commodity prices shift dramatically (>25% in a quarter) - Employee count changes by more than 20% - Any compliance incident - Annual review regardless of triggers

Without a review trigger, a playbook becomes dogma. Write the trigger down so the document stays honest.