In many organizations, waste management is seen as an unavoidable overhead. It gets buried in the expense report, rarely questioned, and often overlooked for savings potential. But with the right mindset and strategy, this cost center can actually turn into a source of revenue. Companies that reexamine their waste streams are discovering not only financial gains but also stronger sustainability profiles.
Changing the Mindset Regarding Waste Management
Many organizations do not recognize the value of their generated waste. Cardboard, plastics, packaging, organics, and other materials (such as electronic items) can be monetized. In order to determine the value of waste, the organization must understand what type of material is being discarded. An initial step in determining the type of material being discarded is conducting a waste audit. A waste audit will allow the organization to identify the types of materials being discarded, which may have resale or recyclable values.
An example of the potential value of waste is scrap metal. Regardless of whether the organization operates in a manufacturing environment, in the automotive repair industry, or in the construction industry, scrap metal is a valuable commodity that can be sold to a recycling company, providing the organization with a steady stream of income, rather than paying to dispose of it.
Integrating Waste Management into Your Operational Processes
When waste management is treated as an afterthought, the organization misses out on the opportunity to utilize waste management to enhance operational efficiencies. Some progressive organizations treat waste management as a component of their overall operational strategy. These organizations design processes to minimize waste generation and create internal systems for separating and collecting materials. When employees recognize that their waste contributes to the organization’s bottom line, employee participation increases. Low-cost methods for increasing employee participation include educating employees through signage, training, and providing positive performance feedback.
Organizations can use technology to assist them in managing waste. For example, smart bins and tracking platforms now enable organizations to track volume, contamination rates, and pick-up times in real time. Tracking and analyzing this data enables organizations to optimize their waste management practices to be more effective and efficient over time.
Strategic Partnerships
Waste vendors are no longer simply hauling companies. Many vendors are strategically aligned with the organization’s objectives and offer assistance such as advising on market rates, materials trends, regulatory requirements, and compliance. Selecting a vendor that supports your organization’s objectives is critical. Organizations should consider selecting vendors that offer alternative pricing arrangements (e.g., revenue-sharing, rebates), zero-waste-to-landfill services, etc. As well, contracts should be reviewed at a minimum on an annual basis to verify that the organization is receiving maximum returns and that there is transparency regarding the costs associated with the contract.
Positive Financial Impacts
Reevaluating the way an organization views waste is beneficial to both the environment and the organization’s bottom line. When waste is integrated into the value chain, the organization’s budgetary line item related to waste will shift from red to black. Organizations have documented significant reductions in waste-related expenses and have established new revenue streams as a result of the sale of materials that were previously disposed of at a cost.
Ultimately, it is not a matter of minimizing what is thrown away; rather, it is a matter of redefining the value of the materials that the organization already handles. Waste is not merely something that needs to be eliminated; rather, it is a resource that has value and can be monetized.