Allen considers its handling of our customer's trim and regrind to be second to none. Most of our programs include a material regrind reuse strategy. In order to suit the needs of our customers, we provide two options for regrind usage.
Buyback Credit
Once you return trim and scrap to Allen, we grind and test your material and having verified that it is not contaminated, we credit you fair market value for the good material to be applied against outstanding invoices. Allen takes over ownership of the material, but the inventory is segregated and made available for future orders.
Regrind Credit
For customers who handle their material with the same dedication and care as Allen, they understand that their material is worth more than fair market value. For these customers, Allen will grind, test and warehouse this material for the customer to be used in future orders. The customer retains ownership of this material in our warehouse. This material will be assigned to future orders at the percentage determined by the customer, and a larger credit per pound gets applied to the invoice in which the material was used. Allen can even provide weekly inventory reports so the material can be managed as customer off-site inventory.
Excess / Old Material
Occasionally, jobs can produce more material in trim/scrap then they actually use. This causes a build
up of customer material at Allen. Other jobs may run once every 12 to 18 months, leaving regrind material to gather dust in
our warehouse. Allen commits to help customers manage their material for a maximum of 120 days. Should that time expire,
Allen will help the customer manage the old material by returning it to the customer, buying it at fair market value, or brokering
it on behalf of the customer in the open market.
Regrind Program Comparison
| Program | Buyback Credit | Regrind Credit |
|---|---|---|
| Customer Cost Benefit | Good | Great |
| Return as Trim (Allen to grind) | Yes | Yes |
| Lab Testing | Yes | Yes |
| Credit Upon Lab Testing | Yes | No |
| Inventory Segregation | Yes | Yes |
| Inventory Ownership | Allen | Customer |
| Inventory Reporting | No | Yes |
| Credit on Future Invoice | No | Yes |
| Maximum Aging | N/A | 120 days |
Returning Materials to Allen
When customers have accumulated trim and scrap, Allen's customer service and logistics departments will issue an RMA# (receiving order) and coordinate picking up that material to be used in future orders. It is very important that trim or regrind be clearly marked with the RMA#, the type of material, the color and color number so that it can be put into the correct order in the future.
To make sure the materials can be tested and dried prior to production, materials sent for upcoming orders need to be processed by Allen 7 days prior to the production date.
Returning as Trim
Customers who are unable to grind their own material can send their trim and scrap to us in approved skids and gaylords provided by Allen. Grinding charges are typically $.08/lb.
Lab Testing
Each box of regrind that is returned by a customer or generated from trim will be probed and tested in our lab to make sure it is free from contamination. Lab technicians can also verify the accuracy of the color in case similar colors were unintentionally mixed prior to Allen receiving.
Inventory Segregation
Material received for customer regrind programs are segregated both physically and digitally in our inventory and warehouse system to make sure your regrind gets used back into your job ensuring material and color integrity.