‘Scrappie’ Kagan launches online trading app

It’s described as ‘a marketplace for B2B metal recyclables to connect buyers directly with sellers.’ ‘Buddy’ has been launched by entrepreneurs and traders who have spent over three decades in the industry.

It is said to be ‘the first platform for scrappies, by scrappies and the only relationship-led marketplace to build the trust needed to conduct trades digitally’.

According to the founders, top buyers in 19 countries have already signed up for Buddy’s global marketplace (or app). The app will play a key role in supporting the transition of the multi-billion dollar metal recycling market from manual to digital procurement processes, including post-trade administration.

Not like the others

‘Most trades are currently conducted using disparate systems and manual processes, creating errors, wasted resources and a myriad of business risks for recyclers,’ says co-founder Stuart Kagan, who’s also the man behind the Born Scrappy Podcast. ‘What’s more, most marketplaces out there are managed. They anonymise both sides of the transaction, buying for as low as possible and selling for as high as possible. This doesn’t create a pathway for sellers and buyers to build relationships with their counterparties.’

Selection at the gate

In an industry in which relationships are as vital as the metal, Buddy matches sellers with appropriate buyers, enabling them to trade efficiently and directly with vetted, trusted partners. ‘We’re selective about who we welcome into the marketplace and the bar for entry is high to ensure we maintain an ecosystem of trust,’ Stuart explains. ‘We hop on a plane so our members don’t have to – our team has done the hard work, including site visits and quality checks.’

Lack of efficiency

Buddy co-founder (and wife) Lisa Kagan says most companies use WhatsApp, email and spreadsheets to collectively trade hundreds of billions of dollars. ‘The industry is missing out on the efficiencies and accuracy that comes with end-to-end process digitisation. What’s more, without comprehensive and integrous data sets, the industry has no basis to leverage the latest in technological advances such as machine learning and AI.’

Real-time data

Buddy members have access to ‘structured’ data for analysis and decision-making. It enables an ‘unmatched’ level of instant, real-time data analysis, including a customisable dashboard to support data-driven decision-making in an industry notorious for a reliance on ‘gut feeling’. The app allows a company to use parameters including pricing, shipping costs, and ratings and reviews to assess the viability of each trade.

Global presence

Buddy claims to have already welcomed businesses from countries including South Korea, China, India, Vietnam, Dubai and Germany. The app will be available for metal recyclers from North America, Australia and New Zealand from April and at two of the industry’s largest events: the ISRI Convention and Exposition in Las Vegas in April, and the BIR World Recycling Convention in May in Copenhagen.

The April issue of Recycling International contains an interview with Stuart Kagan on his latest project Buddy and his life as scrap trader.