Case Study: Optimizing University Waste Management in South East Queensland
Client Overview
A prominent university in South East Queensland with multiple campuses engaged Acquire Insights to address challenges with their waste management services. The university had previously contracted a waste management provider to consolidate various waste streams and spearhead waste diversion from landfill initiatives alongside cost reduction strategies.
The Challenge
Despite winning the tender and being onboarded with clear expectations, including strict penalties for non-compliance, the waste management provider failed to focus on the agreed improvement initiatives. The onset of COVID-19 exacerbated the situation. With the drastic reduction of students and staff on campus, the university anticipated a corresponding decrease in waste management costs. However, costs remained constant, even though the facilities management team had instructed the provider to significantly reduce collection frequency. This discrepancy raised concerns and led the university to seek expert assistance.
Acquire Insights’ Approach
Acquire Insights was engaged to conduct a thorough investigation and analysis of the waste management operations. Our approach involved:
- Detailed Data Analysis: We analyzed hundreds of thousands of lines of waste pickup data, comparing it against the contracted pickup frequency. Our advanced analytics uncovered that the university was being charged for services that were not performed. Furthermore, some prices did not align with the contracted rates, indicating potential overcharges.
- Internal Benchmarking: By examining the average cost per tonne of waste disposal across different waste types and campuses, we identified significant cost discrepancies. These insights enabled the university to make informed adjustments to bin sizes, which had a substantial impact on reducing costs.
- Bin Size Optimization: Our analysis revealed that smaller bins, charged on a per-bin basis without weighing, were more expensive than larger bins, which were weighed, and charged based on actual waste disposed. We identified an optimal bin size that provided detailed weight data and was more cost-effective.
- Logistics Optimization: Access by larger trucks was a challenge on some campuses. To mitigate this, the university used their cleaning service provider to transport bins to areas where larger trucks could access them, further reducing costs even after accounting for the increased labor.
Results
The Facilities and Property team at the university gained comprehensive insights into their waste management operations, moving beyond mere pickup data. They could now benchmark costs per person on campus and compare these across different campuses. These insights enabled the implementation of cost-reduction initiatives and improved the university’s ability to track and enhance waste diversion efforts, aligning with their Environmental, Social, and Governance (ESG) goals.
Key Takeaways
- Data-Driven Decisions: Detailed data analysis is crucial for uncovering hidden costs and discrepancies in contracted services.
- Benchmarking: Internal benchmarks provide a powerful tool for identifying cost-saving opportunities and improving operational efficiency.
- Operational Optimization: Strategic adjustments in logistics and bin sizes can lead to significant cost reductions without compromising service quality.
- ESG Alignment: Effective waste management is not just about cost savings; it plays a critical role in achieving broader sustainability goals.