Manage your waste program … not the waste suppliers
Not only can you reduce costs, save valuable time and avoid some serious frustration. You can also deliver on your environmental promise to reduce waste through a true waste partner.
Waste generation in Australia is forecast to double before 2025*. Business that do not have a waste management plan will be hammered by the increasing range of tariffs and costs of disposal. It is becoming more important than ever to have a waste manager as a partner.
A robust and sustainable waste management program is critical for any business. Not only does it deliver benefits to your bottom line. It helps support your organisation looking at more sustainable practices.
The most overlooked (and obvious) opportunity to save is by reducing waste. What if you halved your waste output by reusing, recycling or replacing? By definition you would have halved your waste disposal cost.
A common business practice is to change waste suppliers to get a better rate. Waste suppliers didn’t ‘come down in the last shower’. They are adept at manipulating fixed services and add-on charges to maximise margin. Waste companies know how to maximise profitability.
The most profitable area for waste companies is landfill charges. That is why many have gone out and bought landfill locations. That is not the behaviour of a partner who is seeking to offer the most sustainable solutions
Transparency creates accountability
Supply Clusters provides transparent reporting on Waste Management through our member portal. Sign up to our Standing Offer arrangement and your data will be available 24/7. Members have access to their data including detail on every single transaction. Join today, start saving on Waste Management and see all the detail you need for your needs:
- The type of waste
- The total amount of waste collected
- Cost of waste removal
Things to know and look out for in the waste category
Roll over clauses
Roll over clauses exist in contracts across many industries. What you need to keep an eye on is the length of the rollover clause. The rollover could be for the same term as the initial contract or longer. Read the fine print before signing if you are not using a Waste Manager.
Set weight allowances
Most waste pricing is set on a contracted weight per cubic metre. The price depends on the type of waste your business generates and the size of the bin. Excess charges are sometimes exorbitant for weight over the allowance. This allows the waste manager to price the set weight low and charge a much higher rate for excess weight. As it is not practical to weigh bins yourself, you are reliant on the integrity of the waste provider.
Checking the frequency or size of bin
Keep an eye on what bin you are using and whether it is full when picked up. You will pay the fixed rate even if bins are half full but you will pay more for overweight bins. Depending on the nature of the waste, you may want to consider less frequent pick-ups.
You may pay even if the driver is unable to access the bin when the truck arrives. These charges may be a set fee or even the whole cost of the pick up. You are paying for not guaranteeing access to your bin as described in your initial contract. Make sure the bin is accessible to avoid these costs.
Keep it covered
The EPA outlawed ‘bungs’ (water outlets) in bins some time ago. Water outlets allowed excess water from rainfall or other sources to drain out of a bin. As you pay by weight for waste – keep the bin undercover and keep the lid down. Water is heavy and you will pay for any excess water held in the bin.
Reducing the volume of general waste
You can achieve much through your waste contract but reducing waste can make a very big difference. Consider what you can do to recycle or reduce general waste. General waste that goes to landfill is subject to EPA levies. These levies have increased every year since the government launched them.
In larger populated areas you may see rubbish trucks from different waste suppliers. Individual waste suppliers may be strong in one location yet weak in another. One waste supplier may sub-contract to another supplier in a different location. And add margin in the process.
If you have more than one site – your waste manager will identify which supplier is the best fit for each site. This removes added margins and maximises the benefits to your business.
Better Buying Outcome
A considered approach to managing your waste processes will deliver both cost and environmental benefits to your business.
Engaging a Waste Manager to partner with you in your Waste Management process will deliver significant benefits:
- Consolidated invoicing and reporting of all waste requirements and expenses
- Better management of costs across the business with reduced invoice handling
- Utilising the ‘best-of-breed’ waste supplier in each location to achieve higher service levels and lowered cost
- A better understanding of the environmental impacts of your waste
- Eliminate the hassle and cost of having to manage multiple waste contracts with differing terms and expiry dates
- Increase your sustainability and Corporate Social Responsibility credentials
Supply Clusters Offer
Supply Clusters partner with WasteFlex who specialise in Waste Management. They work with our members to optimize the waste processes and costs.
Members receive the following benefits from Wasteflex:
- No rollover clauses on all waste contracts
- Pre-negotiated price increases
- Rebates on waste spend (Premium Members)
- Aggregate all of your existing contracts as they expire and transition to WasteFlex
- Utilise best-of-breed suppliers across Australia
- Reduce your management time & stress by managing all your waste sites regardless of waste supplier
- Environmental options for organic, cardboard and other recyclables