Recycle Scooters and Bikes

The business buys motorcycles and scooters from large car salvage companies and UK police contracts, breaks the bikes and then sells the parts as ‘spares and repairs’.

Learning points

• Upskilling partners and employees with digital competences brings business performance benefits in terms of confidence, innovation and time efficiencies.
• Digital technologies aid the coordination of social enterprises alongside business processes.
• Use of video to promote products provides security (fraud prevention) and sales benefits.
• Implementation of digital technologies is becoming a necessity for business survival, as opposed to a strategic choice.

Overview of the business

The Aberdare-based motorcycle and scooter scrap business has been operating for 13 years. The business runs multiple social enterprise operations alongside its primary spares and repairs service.

These include working alongside Big Issue to offer employment to the homeless, plans to work alongside the prison rehabilitation service, and most prominently, one of its owners is a global ambassador for the She Means Business campaign. The campaign promotes the economic empowerment of women, advanced through a social media presence as well as attendance at United Nations events.

While the majority of the sales are UK based, approximately 22% of the sales are through exports. Of these exports, 80% are to Europe. This includes an uptake in Nordic countries at present.

Despite the ongoing growth of the business, the owners are aiming to either sell the business or relocate its holdings to France in the foreseeable future. These decisions are dependent upon the outcome of the EU negotiations, since a high proportion of the imports and exports are with Europe. In line with the proposed changes, the business continues to push for growth over the next 10-month period.

Superfast broadband adoption

The superfast broadband provisions have remained the same over the past 12-months, since the owners remain satisfied with the speed and connectivity attained.

IT skills capacity

Over the past 12-months, the business partners have significantly developed their IT skills and confidence. The development of these skills stems from a realisation that digital competencies provide a multitude of benefits to the business. One of the businesses’ partners has developed a digital skillset that includes the production and editing of digital photographs and videos.

Use of digital technologies

A large proportion of the business processes are digitalised. One area of exception is the supply chain, with correspondence with the breakers yards and spare part traders continuing to use predominately traditional methods of communication. The approaches used are subject to the audience, with traditional approaches being selected based on the propensity of the traders to operate manually within the sector.

There has been a significant uptake in digital technologies over the preceding 12-months. A wider range of software is being implemented, including Slack for project management and Google Docs for sharing documents.

Video

Increasingly, video footage on YouTube is being used to sell the products. The business acknowledges the benefits of being able to see and hear the products, which is a novel promotional benefit within the market place. In addition to helping to encourage enquiries and sales, the digital function also has a positive benefit in relation to a reduction in returns. By having a video of the running machinery it reduces the likelihood of fraudulent returns.

Website

Previous difficulties with website design and implementation of sales online has led the business to adopt a simple brochure website as an alternative. The sales function is operated through Facebook and eBay. This involves the use of bespoke photography. The owner has become increasingly confident in the use and editing of digital software, enabling website edits to be performed when required.

Accounting

Additional advancements in digital technologies include the shift from using Excel for accounting and finance packages, to the cloud-based alternative Xero. The cloud-based software enables the remote accountant to access the files at ease, removing the need for spreadsheets to be sent and processed via email.

Banking

The shift toward greater digitalisation is also evident in terms of the businesses’ banking. Previously Recycle Scooters would perform its business banking at the local branch. The shift to online banking is in part because of the closure of local branches and also relates to owners’ heightened confidence in digital knowledge and skills, as well as enhanced trust in the security of the service.

These advancements stem in part from the increasing use of digital services across the business, which is enabled by access to high-speeds and reliable connections.

Analytical tools

A further implementation is the use of analytical tools online, including Facebook insights. The findings show that the majority of likes on Facebook relate to the video material from a 16-24 demographic. However, the demographic engaging with the material (rather than just liking it) tends to be the 35-44 age range.

She Means Business campaign

Aligned to the business is a partner’s indirect communication via the women’s economic empowerment campaign, She Means Business. This ambassadorial role includes a recent appointment to the United Nations Think Tank. This comes with an invite to the global summit in Buenos Aires in September.

Social media (in particular Twitter and Facebook) are pivotal in promoting this aligned agenda. Moreover, Slack enables the monitoring of fellow ambassadors’ activities across the globe and Zoom is used for international conference calls. While it is difficult to pinpoint the direct benefits, the business has noticed an increase in sales and interest.

Business performance

The connection to the women’s economic empowerment campaign alongside its correspondence social media promotion has helped reinforce the businesses’ reputation as adhering to ethical business standards. This is showcased by the business’ 99.8% positive feedback. While it is difficult to pinpoint the direct financial benefits, the business has noticed an overall increase in awareness and sales.

For the size and scope of the company, the utilisation of digital technologies is progressive. However, there are limits on these advancements in line with economies of scale, which make it burdensome to compete with businesses turning over profits in excess of £5million per annum.

Practical benefits

Nonetheless, the current use of broadband-enabled resources is providing practical benefits for Recycle Scooters. The implementation of cloud-based accounting and finance software (Xero) allows remote workers to access files at ease. Moreover, the automation of processes is estimated to save at least two hours per week, totalling 104 hours per annum. The hourly rate for the business is £45; therefore, this creates cost savings of £90 per week and £4,680 per annum.

Further time efficiencies are created by the upskilling of business partners. Equipping business partners with the necessary skill level to implement digital processes is estimated to save up to four hours per week, totalling 208 (26 working days) per annum. Again, based on an hourly business rate of £45; these time savings provide an estimated cost saving of £180 per week and £9,360 annually.

By reducing the time taken to perform everyday processes, the business is able to concentrate on sales.  For, Recycle Scooter, these digital advancements are seen as a necessity, as opposed to a strategic choice: