Increasing Profit and Decreasing Environmental Impact for Leading Automotive Dealership

The client, a leading automotive dealership chain with heavy presence throughout all of Japan, wanted to both increase profit and to decrease environmental impact by introducing recycling of lead-acid batteries.

ARC Consulting was asked to develop and implement a comprehensive recycling system for the client, effectively creating a closed loop for lead-acid batteries in Japan, harnessing both financial and environmental benefits.

Engineer removing a lead acid battery

ARC Consulting initiated the process by mapping and analysing the distribution of the client´s lead-acid batteries, thus developing a framework of where to target the re-collection efforts. A comprehensive strategy was developed to create a cost loop for lead-acid batteries, so that most parts were recycled and resold, thus generating a substantial profit increase.

Further, an incentives system was designed and implemented to encourage the return of used batteries, as well as a new logistics system with an external partner contracted to collect and deliver used batteries for recycling.

1. A well-established recycling system was delivered to the client, reaching a recycling rate of 85% rate on lead-acid batteries.

2. ARC Consulting rigorously analysed and monitored the financial impacts of the recycling system and secured substantial cost savings for the client.

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