$mart$upply^SM Programs

$mart$upply^SM is a methodology that assists mills obtain their recovered paper needs at the lowest delivered costs.  The future of least cost recovered paper buying will be supply development."  $mart$upply^SM programs utilize the full range of Moore & Associates' skills, including detailed market research, various strategies to encourage residential generators to divert more recovered paper, and collectors/ processors to handle the materials in the most efficient way possible.

Supply Develompent:  Commercial Mixed Paper

One of the only under recovered sources of supply is commercial mixed paper (CMP). CMP from small generators is largely unrecovered and takes the routing experience of solid waste haulers to accomplish recovery effectively. It is a grade that is very "insensitive" to fiber market price. Because of the small quantities produced by each of the generators (and their lack of knowledge of the markets) they do not expect to be reimbursed for the value of the fiber. At best, they seek discounts off disposal, do it to reduce solid waste disposal costs, or for environmental reasons. All of the above make for a low cost source of recovered paper.

The potential additional tonnage can make processing plants more economically efficient operations. The grade lends itself to minimal sorting through good generator education and the ability for mills domestically and offshore to use the grade "as is". The business nature of these programs does not require involvement with the complex, time -consuming local government sector (as compared to residential mixed paper).

As compared to OCC and ONP, which have recovery rates over 70%, Mixed Paper recovery is estimated at just over 30%. There are several million tons a year of CMP are readily recoverable in the US given the right type of collection programs and local environment. CMP composition is good for production of many paper and board grades and is excellent for export.

Moore & Associates has divided its work on CMP into three areas:

• Background on the status of current CMP collection programs in the US

• Targeting marketplaces that have the right parameters that lend themselves to successful CMP collection programs

• Identifying local/regional solid waste companies that might make good collection "partners"

Increasing Old Magazine Supply

OMG $mart$upply^SM programs can be applied in several ways to either increase the magazine content of #7 ONP or generate additional separated OMG. The techniques are applicable to both residential curbside and dropoff/buyback systems.

Each $mart$upply^SM program is customized for an individual client to implement. Please inquire about a proposal from Moore & Associates.