Increase Construction ROI with One Segmented Multi-Construction Site Waste Bill

For construction companies that operate regionally or nationwide, project managers are often left to deal with multiple waste service providers, numerous bills, and customer service call centers. While this may be somewhat of a norm, more efficient construction site waste management practices can save time, labor, and costs with one dedicated waste champion. The hallmark of a profitable construction company is its ability to effectively and efficiently accomplish project goals while decreasing spent time and budgets. This one move with waste management systematizes your efforts, leading to larger profit margins.

Large construction companies that span regionally, nationally and even internationally are seeing a rise in demand, yet margins are shrinking, supply chains are strained, material costs are up, and waste bills from region to region vary greatly. It can be difficult but essential to home in on profit-increasing tasks. No matter how great a team you have, managing varying waste accounts is another strain on profits. It holds back project managers, steals time from the accounting department, and is overall a disorganized method for handling waste across many sites. Consolidation is an excellent maneuver when it comes to systematizing waste management across multiple construction sites.

National waste vendor consolidation
Vendor consolidation is a strategy that can help ease the burden on supply management by carefully reducing the number of vendors your company manages. When it comes to waste management, this usually comes from a consolidating waste provider that is already partnered with various local haulers in each market. In particular, for construction companies operating across large regions, opting for one dedicated partner that manages all accounts is ideal. The reasons for getting a partner on your side that doesn’t own higher priced landfills is that they’ll fight for the best pricing in each market, perform routine audits, and hold waste haulers accountable. All of which stand to be a proven strategy for reducing costs and getting the best service in the market by using local haulers who tend to care the most.

Stronger buying power & time savings
When you utilize a consolidating waste vendor, you increase your buying power with them and leverage more negotiating power and potential discounts on bulk services. Additionally, you free up your time by having them procure the services you need and scheduling the deliveries and hauls. Rather than spreading across many smaller accounts, carrying a large account helps align your construction company with bigger-picture waste goals.

One of the key benefits is that there’s one dedicated person to call that will handle your waste needs across all sites, and that person has a vested interest in getting you the timely service you need. Avoiding call centers alleviates time and effort in explaining your needs to multiple representatives. With one account manager, you will have a rep on your side that anticipates your needs and can proactively provide solutions to waste challenges and new waste goals.

Better vendor relationships
Having many waste vendors to deal with poses a challenge for building relationships. Consolidating your waste accounts into one makes it much more efficient for communications and relationship building. Having a dedicated, trusted partner allows for transparency, quick response times, and a deeper understanding of your specific needs. When you work with a supplier that is invested for the long-term, you build the relationship that ultimately helps you get the attention you need and helps you achieve your waste goals.

Remove accounting department overload
A great asset to your ROI strength is an efficient accounting department. When many waste accounts are being utilized across multiple projects, your accounting department could be stretched thin, spending time on printing invoices, mailing checks, and overseeing vendor payouts. Sometimes this work overload translates to overlooking invoices that are padded with unnecessary charges, an occurrence to watch out for when dealing with many haulers especially when certain components like fuel is rising.

Switching to a consolidating waste vendor specializing in price oversight and auditing means your accounting department can focus on one contact and one invoice (segmented by job) without being burdened with deciphering extra charges, and then they can quickly move on to other essential tasks. If your payables team is busy, they may be accepting extra charges that are avoidable.

Improve accounting & reporting
Waste reporting and vendor accounting are vital when it comes time to understand where payables are headed. When you have multiple vendors and suppliers, it eats away at accounts payable processing time which is the time it takes to accept invoices, get internal approval, and initiate the payment. Depending on the ease or difficulty of the invoice, it can take anywhere from $12 – $100 per invoice to process.

Reporting key waste metrics also becomes burdensome when relying on multiple sites to deliver that information. With one central partner on waste, you get one clean report that delivers all the key metrics you need. Suppose you have a client that requests waste reporting for a particular project or a sustainability report. In that case, you can source this information from a consolidated dashboard and grab the information needed.

Essentially, having one partner across your entire waste portfolio saves the human resources required to track down recyclers and haulers, and saves accounting teams numerous hours, while also battling for you on the best prices across their network. Working with just one consolidating vendor means you have just one invoice (segmented by job) to manage, one contact to reach, one source for reports, and a lot more time and ROI to count on.

Increased profit margins
One of the best methods for reducing supplier costs and improving profit margins is narrowing many vendors to one consolidator that consistently goes to bat for you. When you enlist a specialist to thoroughly procure your services and manage across multiple sites, you will get an audited inventory of materials, a tailored plan for decreasing costs, and an increase in cash-generating recycling efforts.

The goal is to move away from dealing directly with multiple waste haulers that own landfills and have a vested interest in filling them, sometimes tipping the scales in their favor, not yours. To improve margins, you’ll want to pivot toward a waste champion who knows the markets and who is dedicated to getting your company the best prices, reducing waste, minimizing unnecessary pickups, and delivering stellar service for a more competitive price.

Consult with the experts at National Waste Associates to find out if vendor consolidation is right for your waste management across construction sites.

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