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The business · 5 min read

Our first failed partner yard audit

Marcus VreelandFounder

We decertified a yard in 2021. They were not cutting corners on purpose — they were running one wash chemistry, and that is enough.

Short answer

In 2021 we removed a partner yard from our network. They were competent, clean and well-run, and they had one wash line. A single chemistry cannot clean every residue class, which meant some units left their yard graded reconditioned while carrying residue a caustic wash was never going to reach. We have decertified two yards since 2021.
  • One wash chemistry is not enough, however well it is run
  • The failure was invisible on their side — no complaints
  • We found it by smelling units 48 hours after they dried
  • Two yards decertified since 2021, out of 40 certified

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We publish the number of yards we have decertified because a network with a zero in that column is either very lucky or not auditing. We are at two since 2021. This is the first one.

What a certified partner yard is

We do not own depots. We certify independent yards that already exist, audit them against our wash, test and grading standard, and trade through them. It was a deliberate choice over building our own network, and it cut freight miles per tote by 41% against our 2019 baseline because stock sits where demand already is.

The cost of that choice is control, and the mechanism for managing it is an unannounced annual audit.

What certification requires
RequirementWhy it is on the list
Documented prior-contents capture at intakeWithout it, grading is guesswork
At least two wash chemistries, selected by residue classOne chemistry cannot clean every residue
Triple rinse with a verification stepConductivity or equivalent; "it looks clean" is not a check
A functioning leakproofness test rigThe line between reconditioned and rinsed grade
Our grading language, used as writtenPrevents the same word meaning two things
A disposition record for every unit, including scrapMakes the zero-landfill claim checkable
48-hour hold and odour check before gradingCatches permeation that a same-day check misses
Annual re-audit, unannouncedStandards drift quietly, not suddenly

What certification requires

What this yard had

Almost all of it. Clean site, good records, a proper test rig, careful people. Their prior-contents capture was better than ours in one respect — they photographed every label at intake, which we have since copied.

They had one wash line: caustic, well run, correctly titrated, temperature controlled. For the residue classes it suits — ag chemicals, soaps, surfactants, alkaline-compatible material — it was doing an excellent job.

How the failure showed up

Not in complaints. That is the part worth sitting with. They had no customer complaints, their units looked clean, and their test pass rate was normal.

It showed up because our auditor ran the hold-and-smell protocol: wash, triple rinse, dry under positive air, close the unit, leave it 48 hours, then open it and smell the headspace. Out of twenty units sampled, four had a clear odour. Three of those four had prior contents in the resin and adhesive family.

Their units smelled clean on the day. The complaint arrives at the customer's plant two weeks later, and by then nobody connects it to the wash.

This is why the hold is in the certification standard rather than being a nice-to-have. A same-day odour check will pass a permeated unit essentially every time, because the gradient has not reversed yet.

Why one chemistry cannot do it

Residue classes need genuinely different mechanisms, and running the wrong one does not merely fail to clean — it can make the residue harder to remove.

Chemistry against residue class
ResidueCorrect lineWhat caustic alone does
Ag chemicals, soaps, surfactantsCausticWorks well
Sugars, syrups, starchesHot waterCaramelises the residue onto the wall
Glycols, coolantsHot waterWorks, but slowly and wastefully
Resins, adhesives, coatingsClosed-loop solventDoes essentially nothing
InksSolventSmears and sets
Latex, water-based paintWarm water, immediatelySets it hard if there is any delay
Food residuesHot water, segregated lineDisqualifies the unit for food grade permanently

Chemistry against residue class

That last row is the one that ends a food-grade programme. A line that has carried caustic cannot be used on food-grade units afterwards, which is why our food bay is physically separate with its own lances, drain and staff rotation.

What we offered, and what happened

We did not simply remove them. The finding was specific and the fix was specific: install a second line or stop accepting the residue classes it cannot handle, and route those units to us instead.

The capital for a hot-water line is not large — a heater, a second lance set, a drain tie-in and the bay space. We quoted it at roughly $34,000 at the time, against a yard turning over several thousand units a year.

They declined, which was a legitimate commercial decision for a business that did not want to specialise further. We decertified them and they continued operating perfectly well outside our network.

The second decertification, in 2022, was less amicable and involved grading language being used loosely. I am not going to detail that one.

How the audit changed afterwards

Three things went into the standard as a direct result, and all three are now the first things we look at.

  1. Open with the resin tote question. "Show me what happens to a resin tote." If the answer is the caustic line, the conversation is over in ninety seconds.
  2. Sample from finished stock, not from the line. Pulling units mid-process shows you the intent. Pulling from the outbound bay shows you the result.
  3. Always run the 48-hour hold on site. It means the audit takes two visits instead of one. It is the only part of the audit that catches the failure this yard had.

The lesson we took

Competence is not the variable. Everyone in this trade is competent at what they do daily. The variable is whether the process has a path for the inputs it was not designed for — and the default path, in every yard including ours before we built the third line, is to run the one process you have and hope.

Our audit now opens with that single question. If the answer is "the caustic line", the conversation is already over.

Written by

MV

Marcus Vreeland

Founder

Started the company in 2009 with a 1998 flatbed and a hand-written ledger. Still reads every decommissioning survey.

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