What is a waste and recycling cost reduction audit? And why it’s important to your business

Let’s face it. Unless you are an industry guru or are dealing with waste and recycling day in and day out, you probably have no clue what a waste and recycling cost reduction audit really is.

This is article is intended to shed some light on the process and how it could be of benefit to your organization.

So what is it?

To answer this succinctly, a waste and recycling audit is where we apply industry expertise to audit your waste and recycling expenses for errors, overcharges, and opportunities for savings. We apply all of our decades of industry expertise on our clients’ behalf. If we can find them savings, we share in them 50/50 each month. If we can’t, it does not cost them a thing.

Why would you need a waste and recycling audit?

The waste and recycling market is worth over $100,000,000,000 nationwide. In our experience our clients are overspending, on average, about 30-40%. 

So why do you need a waste and recycling audit? Simply put, there could be substantial financial benefit to your organization.

How does it work?

An audit is conducted by getting 1-2 recent invoices for each location and a letter of authorization. From there, we conduct the following series of steps:

• We review all the invoices and associated vendor contracts for accuracy and compliance
• We conduct a thorough market analysis of options, providers, and regulatory requirements and compliance.
• We conduct a thorough needs-based analysis to determine exactly what your organizational service needs are. (Occasionally, haulers will claim to provide this service for customers. But there is an obvious conflict of interest when they provide it as they have no incentive to reduce your costs.) Depending upon organizational complexity this may involve site visits and dumpster audits. We get as dirty as we need to, to help our clients save money.
• After 4-6 weeks we deliver our findings to our client for their approval.
• Once our findings are approved, we spend the next 4 weeks implementing the savings measures outlined
• Only once savings begin hitting our client’s bottom line to we begin to share in the savings
• We monitor the invoices every month for accuracy and overcharges, ensuring savings stay intact and remain in place.
• Furthermore, for clients’ that wish to take advantage of it, we offer our ongoing waste service. This allows managers and supervisors to call our 1-800 number or email us for support issues. This saves valuable employee time instead of waiting on hold and hoping the issues get resolved. One call to us and we handle it on our clients’ behalf.

Summary

Verifying the accuracy of these expenses is difficult and complex.  And managing this expense category is a full-time job that requires decades of industry expertise to do it properly.

If you value the money you are spending in this expense category you should have it reviewed by industry professionals. 

If you are spending over $1,000/month on your waste/recycling expenses you qualify for our audit service.  Having been in the auditing business since 1991 we’d love the opportunity to perform our risk free/shared savings audit and see what we can do for you.

If you are interested please reach out to us at info@costanalysts.com and we will put you in touch with one of our local franchise experts to get started.   

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