How a Manufacturing Client Saved $1.7M Through National Waste Associates
During the course of two years, National Waste Associates’ (NWA’s) team of experts conducted extensive load optimization exercises and working tirelessly to reduce a manufacturing client’s waste spends by $1.7M.
An international manufacturer with over 60 plants across North America had an uncontrolled waste cost center with disposal costs that were increasing out of control. There were serious inefficiencies in their current waste management practices that they needed to uncover. They presented NWA with three essential requirements:
- Reduce waste spend across the entire portfolio
- Achieve greater control with improved oversight and metrics
- Divert more material from landfill by increasing recycling and reuse rates
Load Optimization. After reviewing the waste tonnages for every single container at every manufacturing plant across the country and Canada, NWA implemented an optimization program that maximized compactor tonnage. This resulted in a 4.5% year-over-year increase in average tons per haul. For context, multiply that by thousands of tons that this company produced each year. The result was major savings.
The locations with the greatest waste activity and the highest spend were targeted first, as these were able to generate the greatest initial savings. Routine tonnage analyses were conducted throughout the contract term to achieve ongoing load optimization.
Equipment Optimization. Using the compactor tonnage analysis, the team also recommended compactor specifications and sizes that improved service efficiency and reduced haulage costs and emissions. This analysis resulted in a 9% year-over-year reduction in the number of hauls. Again, for context, this company had thousands of hauls each year so the savings was substantial.
NWA’s proactive load and equipment optimization studies generated cumulative savings of $1.05M over the contract term.
Diversion from Landfill. The manufacturing facilities generated certain waste materials that most haulers would immediately look to send to landfill, especially the national hauler who had been servicing them. NWA’s waste experts instead identified diversion opportunities that not only generated $500k of revenue and disposal fee savings, but also reduced the carbon footprint and environmental impact of their operations.
Invoice Management. The waste industry is renowned for erroneous fees, clerical slippage, and unannounced price increases. NWA’s accounting team combatted this by thoroughly auditing every single invoice received from all the haulers. The vendor services team then contested every single un-negotiated price increase on behalf of their client. This resulted in compounded cost avoidance of $150k over the duration of the contract.
Service Consistency. All of these optimizations were managed while ensuring that the customer received impeccably reliable service. Across the entire contract, NWA upheld a 99.5% on time service delivery record, ensuring that waste was never a concern for individual plant managers.
Through an integrated waste management strategy of load and equipment optimization, vendor management and landfill diversion, National Waste Associates reduced their manufacturing client’s waste spends by over $1.7M in just two years.
These service optimizations didn’t just save the client a ton of money, but also helped the environment by eliminating unnecessary hauls and diverting valuable materials from landfill. Find out how NWA can assist with your manufacturing sites here.
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