disposal

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target group	Basic statement	cost relevance
All companies with significant waste management	Clever recycling and upcycling can reduce costs to zero and increase profits even further	This area offers undreamt-of cost-cutting and, at the same time, sales-increasing potential.

The key issue when optimizing disposal costs is the profit that can be made from trading on the secondary raw materials market. Because there are not only high savings potentials here, but also large profit margins.

Whether it is upcycling, i.e. upgrading secondary raw materials to new products (truck tarpaulin into bags, etc.), or recycling, the focus is initially on the types of waste, waste separation, storage, container types and transport within the company itself. It is important to find the best disposal company for waste that cannot be sold and contaminated waste.

The more dangerous the garbage is, the more the master vendor strategy, i.e. a main service provider with one or two secondary service providers, has proven its worth. There are well over 3,000 suppliers on the waste disposal market who are in fierce competition. There are the large generalists who cover the entire waste value chain and small providers with a niche function.

The latter are extremely interesting in terms of costs and processing, because they often use innovative concepts and technologies that not only increase the profit margins on waste, but also force prices down. Membership in a waste disposal association can reduce costs over the long term. Similar to the purchasing groups, the waste quantities are bundled, the logistics are optimized and the recycling rates are significantly increased at the same time.

Disposal checklist

Examine waste for upgradability and recyclability
Already sort them in the company
Ask for current prices
Master vendor strategy with niche suppliers for waste disposal
Combine disposal strategies
do not agree on any retention agreements

case studies

A chemical company reduced annual costs of over 150,000 euros by almost 30 percent by switching to the master vendor strategy and improving operational processes.
A production company wanted to reduce its costs both in the disposal and in the resale of production waste. Even a conversation with the existing partners showed a significant improvement in the conditions, which led to a reduction in costs of almost 21 percent.
An automotive supplier spent a five-digit sum on disposal every year. In order to optimize the structure of the waste generated, a tender was issued with a focus on waste water and contaminated waste. In addition to the existing service provider, a second offer was accepted, so that the best price-performance ratio and a cost reduction of over 10 percent were achieved.
A production company made high profits from the sale of scrap, but also had disposal costs of 90,000 euros, which went to five different service providers. With the concentration of service providers and increased scrap sales, costs were reduced by 6 percent.