National Waste Associates Saves $1.4M for Logistics Client
Over a three and a half-year period, National Waste Associates (NWA) saved a contract logistics firm $1.4M in waste expenditure by creating an integrated waste management solution focused on load optimization and cost avoidance.
When NWA took on the waste management contract for an international logistics firm, the business needed expert help to take control of their waste operations across 58 of their North American locations. Specifically, the business needed NWA to work in three core areas:
- Conduct a thorough analysis of all hauler invoicing to prevent uncontrolled price increases
- Optimize container tonnages to reduce operational costs
- Increase recycling rates and divert more material from landfill
Load Optimization. NWA’s waste experts reviewed the waste tonnages for every single container at all of the facilities in the contract portfolio. We then implemented an optimization program that maximized compactor tonnage, resulting in a year-on-year increase in average tons per haul and saving $790,000.
We first targeted the locations with the greatest waste activity and the highest spend, in order to generate the fastest savings. Frequent tonnage analysis then ensured continual load optimization.
Right Sizing. Using our bespoke tonnage analysis methodology, the team also identified situations at sites where significant savings could be made by changing the waste storage and handling systems. These alterations improved service efficiency and reduced haulage costs by $266,000, together with a reduction in associated greenhouse gas emissions.
Together, NWA’s load optimization and right sizing analyses generated cumulative savings of $1.05M.
Diversion from Landfill. NWA’s waste experts surveyed our customer’s locations for recycling, diversion, repurposing and reuse opportunities that went beyond what was required of them by local, state and federal legislation. We then used our vast network of suppliers to find the top professionals for each aspect of the process. This resulted in a 65 to 72% diversion from landfill rate across the entire portfolio, reducing the carbon footprint and environmental impact of their operations, and equivalent to taking 11,000 cars off the road each year.
Cost avoidance through invoice management. The waste industry has a reputation for erroneous fees and price increases that are outside of the agreed terms. Over the duration of the contract, NWA achieved over $26,000 in cumulative cost avoidance through our triple-check invoice management process. NWA’s accounting team first thoroughly audited every single hauler invoice every month. Any un-negotiated price increase was then sent to our vendor services team who contested the price increase for our customer. Finally, all invoices were checked by the customer’s dedicated Account Manager to ensure they met with their approval.
In addition to NWA’s process-driven savings, we also negotiated a $60,000 per month cost saving at just one location, the result of a year-long battle with the hauler to agree to a rebate and tonnage cost settlement.
Service Excellence. While delivering these cost savings and service optimizations, NWA remained laser-focused on service consistency. Over the course of the contract, we achieved a 99.87% on time service delivery record across the entire portfolio of sites, spanning the length and breadth of the country.
Through this integrated waste management strategy of load optimization, invoice scrutinization and landfill diversion, National Waste Associates reduced our logistics client’s waste expenditure by over $1.4M.
As well as significantly reducing their operational costs, these service optimizations also reduced their carbon footprint and improved their environmental profile by eliminating unnecessary and premature hauls and diverting valuable materials away from landfill.
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