Diving Into Your Trash
Waste management stands as a sizable industry that is essential for every company. In the United States alone, a staggering 624,700 metric tons of trash get discarded daily, incurring an annual expense of approximately $11 billion. Businesses shoulder a substantial 80% of these expenses. Across the board, companies are actively seeking strategies to curtail costs while simultaneously minimizing waste generation and maximizing recycling opportunities wherever feasible.
Invoices and Fees
The initial phase of cost reduction in waste management involves scrutinizing usage patterns and existing services. Numerous companies grapple with expensive monthly waste services, often burdened by additional charges appended to their regular service bills. These fees often include:
- Management fees
- Environmental fees
- Gas surcharge fees
- Lock fees
- Extra Pick-up fees
- Contamination fees
- Overage fees
- Locked gate fees
By comprehending the invoice details and extra fees, you can effectively optimize your cost savings.
Questions to Ask
Some of the above fees can be eliminated or negotiated just by asking the right questions including:
- Do we need a separate bin for environmental waste? This could involve quick-service restaurants discarding spoiled food or spent grease.
- Can we recycle cardboard, plastic, and metal? Breaking down boxes for recycling might save both money and the environment.
- Is there a vendor we can use to collect scrap metal? This move could cut costs for larger roll-off bins and potentially lead to rebates.
- Are any bins situated behind locked gates? If trash collection is hindered due to inaccessibility, expect additional fees. To avoid this, place bins outside locked areas or coordinate gate access on pickup days.
- Are extra pickup fees a routine on your invoices? A quick review of the invoice can help resolve this by adjusting bin size or pickup frequency.
- Is there a corporate contract governing waste services? Ensure your team is aware of this contract to benefit from agreed-upon rates when ordering services.
Given the array of questions, it’s evident that most companies will require support in overseeing trash invoices and managing multiple service providers. Generating detailed, precise information crucial for optimal business decisions demands dedicated time and meticulous attention to detail from a skilled team.
Problems with Billing Complexity
The billing intricacies present a convoluted mix of charges that necessitate monthly and long-term analysis to pinpoint the most optimal services at the most favorable prices. Monthly invoices might vary, with additional charges appearing one month and none the next, leading to potential confusion. It’s crucial to meticulously identify each charge on the invoice every month to ensure informed business decisions for each location.
Vendors contribute to this complexity by offering multiple trash haulers within a single area. This approach proves more advantageous than having only one hauler since multiple options enable bidding and price competition. However, managing these multiple vendors requires a dedicated effort and a specific finesse to navigate pricing and negotiate contract terms effectively.
Optimization Solutions with RadiusPoint
Having a partner who can break down the invoice monthly is critical to effectively managing your trash or waste services and meeting your sustainability goals. RadiusPoint’s Waste Optimization process involves a deep dive into the waste invoices and current business programs and policies to provide a multi-point approach to managing waste services. This inventory and audit process delivers an environmentally responsible waste management program that assists in reaching waste initiatives and provides unmatched value.
RadiusPoint’s optimization involves investigating services with the current vendor and determining best practices to provide a cost-saving program to our clients. Many multi-location organizations have ordered services as needed with no thought given to contract terms, bin size, or the frequency of pick-up. All of these factors determine the monthly cost and could result in huge savings if managed with cost savings, efficiency, and program goals in mind.
During our inventory and audit of the waste services, RadiusPoint would:
- Obtain a copy of the vendor’s current contract.
- Validate the contract rates against the current invoice.
- Comparison of services across all sites for any anomalies.
- Identifying any overage charges or other charges beyond the normal pick-up charges.
- Identifying better rates for those locations not under contract.
- Identifying better rates and possible early termination penalties, if applicable, for those locations under contract.
- Identify and recommend service changes to eliminate overage charges.
- Provided consolidated report for Request for Proposal (RFP).
- Provide analysis once the RFP is returned to show savings.
- Assist with contract negotiations for each contract or global contract.
- Assist with issues that arise at the location during the term of the agreement.
Once the inventory and audit is complete, RadiusPoint employs our exclusive software, ExpenseLogic, to handle and settle the monthly invoice. Simultaneously, continued auditing is conducted to guarantee precise billing according to contracted rates.
Connect with us to learn how RadiusPoint can support you in achieving your business’s waste service savings goals.