Client Background
A commercial HVAC equipment distributor operates three locations in Maryland and Virginia. Each location has multiple waste containers that are serviced several times a week, resulting in substantial waste management costs. The Company reached out to Performance Waste Solutions (PWS) to explore potential savings on their escalating waste bills.
Challenges
The Company faced several issues that hindered efficient waste management and cost control:
- Multiple contracts with different end dates, making it difficult to manage renewals.
- A small accounting staff that struggled to audit invoices, request credits, and follow up on disputes in a timely manner.
- Significant escalation in monthly waste costs over the past few years.
- Contract clauses that required diligent monitoring to avoid additional charges.
- Uncertainty about who had signed the contracts, with no copies readily available.
Solution and Results
PWS conducted an in-depth analysis and provided a preliminary estimate of potential savings of 20-25% annually. After reviewing the existing contracts, PWS renegotiated more favorable terms and pricing with the current waste service provider. This approach ensured there was no disruption to service and maintained the same level of service quality.
The results were exceptional:
- First-year savings reached 46%, far exceeding initial projections.
- Projected savings in the fifth year are expected to exceed 65%.
- PWS provides a single, audited invoice to the company on a monthly basis, simplifying accounting and relieving the company’s staff of hours of administrative work.
- The client continued to receive service from the same drivers, trucks, and collection schedules, maintaining continuity and service reliability.
Client Feedback
The Company’s CFO, who initiated the engagement with PWS, shared the following feedback:
“I asked you for a homerun and you delivered a grand slam. I can’t believe we’re saving so much money, and we’ll have the same driver in the same truck emptying the same containers on the same days. Everyone in the country should be working with you!”
This case demonstrates PWS’s ability to deliver substantial cost savings while maintaining service consistency, even in complex contract environments.
