30% Savings on Waste Disposal Expenses - Expense Reduction Analysts
The company recruited Michael Röper of Expense Reduction Analysts to investigate the cost of waste management and the proceeds from the sale of recycling materials to both reduce costs and increase revenue from recycling. In addition, opportunities to improve internal processes were sought in order to reduce the cost of operations.
Expense Reduction Analysts’ waste disposal experts, Eiko Fischer and Volker Klinkosch wrote the required service specifications for the disposal of waste. In 2008, the costs for waste disposal reached an amount of almost 160,000 euros.
What Lehmann and Voss expected from potential suppliers was, amongst other things, the submission of a certificate as waste management facility, a central billing and the creation of a yearly waste report. Overall, there were tenders from six current suppliers and five from new waste management companies.
After detailed review, evaluation and qualification of all individual tenders, three options were retained that offered different practical solutions with various priorities to meet the company’ needs.
With regard to the price of waste disposal, the minimum cost solution allowed savings of 54,000 euros per year. For this, the number of waste disposal suppliers was to be increased. The second and third solution each presented a combination of affordable “main waste disposal” suppliers with the integration of low-cost waste disposal specialists.
In each case, the “main waste disposal” supplier was responsible for the biggest share of the required services in combination with several “specialists” offering the best value for money in their respective segments.
Lehmann & Voss opted for one of the last two options, whereby the majority of the waste would be handled now by one waste disposal supplier, complemented by three special waste disposal providers for hazardous waste. The costs fell by 47,000 euros a year i.e. 30%.
In addition to reducing the cost of treatments for different types of waste, the company handled a market-price based compensation for recyclables such as cardboard or plastic, improved the means of disposal for hazardous waste, reduced the number of containers and that of contact partners for the retrieval of containers, achieving cost savings far above average.
Finally, the advantages of a two-year fixed price as well as the price alignment for the two locations in Hamburg and external warehouses are not to be underestimated.
Client Manager Summary
Michael Röper absolvierte eine Bankausbildung bei der Deutschen Bank und studierte zudem an der Fachhochschule Osnabrück sowie in Nancy mit Abschluss Diplom-Kaufmann. Michael Röper verfügt über mehrjährige Erfahrung als Risikocontroller bei der Hypovereinsbank sowie als Unternehmensberater bei KPMG. Zuletzt war Michael Röper als Senior Risikocontroller bei der Hamburger Sparkasse tätig. Zu seinen wichtigsten Projekten zählen der Aufbau des Aktiencontrollings bei der Hypovereinsbank sowie bei der Hamburger Sparkasse der Aufbau des Themas Fristentransformation/Marktzinsmethode.
Summary of Savings