Case Study — Surface Restoration Manufacturer — Waste
Case Study: How a manufacturer saved approximately $3,900 per year on their waste disposal services
BENEFITS SUMMARY:
Significantly reduced fees for waste disposal services while remaining with the same vendor.
SERVICE:
Risk-free review of waste disposal cost structure and search for cost saving solutions and billing errors.
SITUATION:
A successful manufacturer of surface restoration products had two waste disposal contracts with a large waste disposal company, but they suspected they were paying too much for the services they were being provided.
ANALYSIS/RECOMMENDATIONS:
We reviewed their current waste disposal service structure, and, since we are independent of all vendors, our cost saving recommendations considered all options in the marketplace –including the current provider. After considering the type of business and waste disposal services they use on a daily basis, we compiled a Value Report that detailed the existing environment and a pre-negotiated future state. The Value Report included several profit-increasing recommendations, which included the current and alternate providers. Because we have structured over 21,000 deals, use proprietary software for analysis and have the negotiation power of a large national organization, we were able to come up with significant cost saving recommendations for their waste disposal services.
RESULTS:
Our client selected the cost saving recommendation that maintained their current provider and Schooley Mitchell handled the implementation of the cost savings. Because of the relatively high dumpster removal and termination fees, as well as special waste disposal requirements by the client, Schooley Mitchell recommended sticking with the incumbent provider to maximize savings and prevent service disruption. We were able to combine their two separate contracts into a single one, and renegotiate with their incumbent provider for an estimated savings of $3,905.40 per year ($325.45/month), or 21.19%. Implementation required only a signature on a rate addendum from the provider. There we no changes to their waste disposal practices.
