Identifying & implementing cost saving initiatives

We began our relationship with a major UK transport client by managing their waste across two regions. In 2010, we were awarded a Total Waste Management contract for circa 1000 operational and maintenance sites across the UK.

This five year contract was valued at circa £26M over the term of the agreement. What made UKWSL’s proposal unique was our ability to demonstrate industry leading sector expertise. This was combined with our commitments to deliver cost reductions, the provision of uniform management information and most importantly, to increase landfill diversion to a minimum of 60%. UKWSL is proud of its track record of exceeding the targets set. We strongly believes that our ability to exceed targets and demonstrate excellence in account management means that we continue to stand out from the crowd. This belief was validated by the fact that the customer awarded UKWSL a further five year contract to work together until at least 2022.

Delivering Year-On-Year Success

Due to the complex nature of the waste streams produced at operational and maintenance sites, the customer places more emphasis on recovery than it does recycling within the waste hierarchy. When UKWSL took on the national estate in 2010 the combined recycling and recovery rate was just 18%. Within the first six months of the contract UKWSL increased both recycling and recovery rates to 35%. Every year that has followed has seen an increase in not only recovery but also in recycling. By April 2017 UKWSL had delivered a 48% recycling rate with 32% recovery and just 20% of all materials being sent to landfill. Every year, UKWSL exceeded the targets set by our customer.

Our year on year success with the customer has delivered improved landfill diversion. For UKWSL, the additional emphasis on improving recycling rates has the additional benefit of reducing customer spend. By June 2019 UKWSL engaged sites and delivered £370,000 of annualised cost savings. By 2018 UKWSL delivered a further £83,000 of annualised cost savings. The benefit to the customer is not just reducing spend for the “here and now”. It is also about changing culture to deliver long term cost mitigation. The monies saved now will continue for the life of the contract. This means that change delivers a £1.9 M reduction in the five year budget.

The Tools, Methodology, Approach and the Relationship

At the outset of the contract UKWSL developed and completed a Resource and Waste Management Action Plan (RWMP), which is a working document utilised throughout the life of the contract. The RWMP was completed by both parties, so that the objectives of the term were clear and documented. This covered matters relating to H&S, CSR, Minimising Environmental Impact, Contract Management, Implementation, Audits and Escalations.

The plan was reviewed periodically at review meetings with actions and deadlines agreed and signed off by both parties. Cost saving initiatives were developed and driven through Smart Optimisation Auditing to identify and implement best practice opportunities affecting container types, collection frequency, waste streams and material reclassification.

The customers were assigned a dedicated Account Manager and Account Executive to drive objectives and costs savings. To support change management, UKWSL introduced structured and bespoke Staff Education & Training, Waste Manuals, Tool Box Talks, Waste-Smart Training and Signage/Posters to ensure a successful change management programme.

UKWSL’s approach to the the customers estate was to engage with our supply chain to source contractors that can offer landfill diversion opportunities. This can be as simple as changing a contractor to collect the same container. However, this also came in the form of looking at alternative collection methods that would deliver the required diversion. Emphasis was initially placed on the customers top 50 waste producing sites to deliver maximum impact in the shortest time-frame. By auditing, engaging and utilising the tools stated above, we placed emphasis on sites to change working culture to improve recycling. For UKWSL, focusing further up the waste hierarchy means we go further than our customer requires and find solutions to give waste materials a second life as part of the Circular Economy.

Contract Mechanism and Reward Structure

UKWSL has committed to year on year improvements in landfill diversion. Over the next five years UKWSL is committed to delivering 100% landfill diversion. Emphasis will be placed not just on diverting general waste, but also by improving recycling rates. Both parties benefit from the hard work and commitment to change delivered. This true partnership approach is one of the key factors that differentiates UKWSL from others in the market.