Schupan & Sons, A grade ahead

Manufacturing in Action, Source : The Manufacturer US

Taking care of its customers and employees is helping Schupan & Sons achieve steady growth, as CEO Marc Schupan tells Bernie Sheehan

"Closing the loop” is how Marc Schupan, CEO of Schupan & Sons, describes the company’s business, which covers aluminum distribution, industrial recycling, and recycling services for the beverage industry. “We started 37 years ago as a very small company, now the recycling side of the business ships one million pounds of different commodities a day. We’re changing all the time. Once, if you were honest, paid a competitive price, and gave good service, it was enough. Now we’ve gone beyond that, establishing ourselves with customers and helping them with safety, environmental issues, and information systems. Family-owned is how we treat our customers and employees. Families respect each other, work together and partner to help make lives better. Partnering might be the buzz word for today; however, Schupan & Sons, Inc. hasn’t known any other way. We’re continually looking at where customers’ needs are in different areas. Like hockey legend Wayne Gretzky, I say to our people, ‘We don’t go where the puck is, we go where it is going to be.’”

Headquartered in Kalamazoo, MI, Schupan has seven facilities within the state, one in Indiana and one in Illinois, and currently employs around 260 people. Its three divisions are Schupan Recycling, Schupan Industrial Recycling Services, and Schupan Aluminum Sales.

Schupan Recycling is one of the largest independent purchasers and handlers of used beverage containers (UBCs) in the country. The division serves over 80 percent of Michigan’s beverage wholesalers and has experienced continuous growth since entering the beverage container-processing business in 1985. “We consistently upgrade our computer and data processing systems in an effort to streamline all of our operations and provide quality services at competitive rates,” says Tom Emmerich, president of Schupan Recycling. The division implemented new software named Rimas three and a half years ago and, with its joint venture with TOMRA, a Norwegian company also involved in beverage container recycling, has installed a wireless IT system for transportation called Roadshow. “We monitor 20,000 pick-ups a year, and Roadshow allows us to monitor in real time where every piece of equipment is and the number of units they are carrying,” says Schupan. “We can change the driver’s route if the customer needs it, which means we provide better service.”

Schupan Recycling has recently invested $1.8 million in a new facility in Grand Rapids, MI, consolidating it with a former plant at Holland. The site is highly mechanized and utilizes new technology called a cell system. It has also installed a piece of equipment that dumps the whole trailer, which means comingled UBC and PET can be processed down the same line. “We’ve improved on our experiences in the handling of third-party bins and non third-party material,” says Emmerich. “We’ve also drastically reduced our labor costs and improved working conditions for all employees.”

Schupan Industrial Recycling Services has been a leader in the scrap metal industry since 1968. Its custom-designed scrap management programs include scrap removal equipment, oil reclamation, baling, shearing and sorting, crane services, logistics, and brokerage. It buys a variety of metals, from aluminium and brass to steel and zinc, and has just purchased a new 40,000-square-foot facility in Kalamazoo. “It will help make our industrial recycling more efficient by allowing us to handle additional aluminum borings and shavings with some innovative processing equipment,” explains Schupan.

Schupan Aluminum Sales (SAS) has also invested heavily in new equipment, to the tune of $1.2 million. “We do a lot of precision cutting for customers. We’re always trying to find the best equipment to ensure we are leading edge in that area of manufacturing,” continues Schupan. “For example, we’ve purchased one new ENSHU machining center to increase machine speed and capability, and have installed one coordinate measuring machine (CMM) for the production part-approval process.”

The SAS division recently scored exceptionally high in a customer survey sent to 66 companies (of which three-quarters responded), achieving an overall satisfaction level of 79 percent. According to the independent survey company, 75 percent is considered excellent. “The survey covered areas such as ease of doing business, billing and invoicing, pricing, sales performance, delivery, quality control, ordering, business practices, and customer service,” says Mike Gildea, president of Schupan Aluminum Sales. “It was very valuable because it compared our performance with that of other companies in our industry as well as other kinds of industries. It also helped us identify any customer-specific issues that needed attention, and was a great morale-booster for our employees. It was proof that their efforts definitely make a difference. a

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