Distribution Centers in CA, AZ and HI
Situation
A manufacturing and distribution company had 10 locations in 3 different states (Ca, AZ and HI), serviced by 5 different haulers. Each branch was managing its own trash service which caused a real disconnect between their corporate office and their local offices with regards to overall services and costs. It made it very difficult to regulate their expenses.
Waste Metrics was hired to help shed some clarity on the situation and look into the details at each location.
Waste Metrics performed a free waste audit.
Audit
We determined that each location had the correct amount of service. We determined that the company experienced several large price increases over the years, and at some locations, the initial rates were clearly not negotiated. In addition, we were able to determine that there were services that they were paying for that never actually happened and resulted in wasted costs to the company.
Results
After a few weeks of negotiation, Waste Metrics was able to save the customer over $33,000 annually, with an overall savings of 30% across all 10 locations.
Two hauling companies were changed, the 8 other locations kept their providers.
The billing and management of their waste services was centralized to improve their efficiency and visibility on services. They now have one point of contact and they have a clear understanding of the services and costs at each location.
Their invoices now show all-inclusive fixed monthly costs and have a long-term controlled price protection moving forward.
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