Background
A manufacturer specializing in military-grade portable computer products sought to reduce its escalating waste management costs. Operating a single location with an 8-yard frontload container serviced weekly, the Company faced significant cost increases over time. Initially, they had signed a contract with a national waste hauler seven years ago at a rate of $125 per month. By the time they approached PWS, the same service had climbed to $1,275 per month, representing an average annual increase of about 40%.
With plans to open a second location, the Company aimed to establish a single waste management contract for both sites. Additionally, they sought to secure better pricing for roll-off dumpsters, which were required occasionally during periods of increased operational activity.
Challenge
The Company’s Chief Financial Officer (CFO) needed a solution to lower their waste bills, ensure consistent service, and simplify contract management, especially with the upcoming expansion. They needed a partner who could provide favorable pricing, prevent auto-renewal surprises, and offer consolidated waste management services across both locations.
Solution
Performance Waste Solutions (PWS) was engaged to optimize the Company’s waste service costs and manage the entire waste process. PWS implemented the following solutions:
- Contract Renegotiation: PWS renegotiated the waste management contract for the Company’s existing location, securing a new deal with a provider offering more reliable service and significantly lower rates. The revised monthly cost was $157 resulting in a first-year savings of 88%.
- Expansion Management: As the Company prepared to open its second location, PWS oversaw the setup of waste services, ensuring that the same favorable terms and cost savings were established from the outset.
- Roll-Off Dumpster Optimization: PWS also reviewed and optimized the pricing for roll-off dumpsters, ensuring the Company received competitive rates during times of increased operational demand.
- Simplified Invoicing and Contract Management: PWS provided a single, audited invoice on a monthly basis, reducing the Company’s administrative burden. Additionally, PWS managed all aspects of the contract, including renewals, giving the Company a single point of contact for all waste-related needs.
Results
- 88% Savings in First Year: Monthly costs for waste services were reduced from $1,275 to $157 at the original location.
- Consistent and Reliable Service: The Company experienced better service reliability through the newly negotiated provider.
- Ease of Expansion: PWS ensured the second location’s waste services were set up efficiently with the same favorable terms.
- Reduced Administrative Time: The Company spent less time auditing invoices and managing multiple contracts, allowing them to focus more on core operations.
- Avoided Auto-Renewal Pitfalls: PWS’s oversight helped prevent unwanted contract renewals, maintaining favorable terms over time.
Conclusion
By partnering with PWS, the manufacturer achieved substantial cost savings, improved service reliability, and streamlined waste management across locations. The CFO and their team now have peace of mind, knowing they are receiving the best possible pricing and service while spending less time on waste management logistics.
