Everything to Know About Optimizing Waste Efficiency Across Multiple Locations A practical guide for multi-location business operations and storefronts.

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CONTENTS

1.Overview

2.Collection Locations

3.Equipment Management

4.Cost-Saving Strategies

5.Continuous Improvement

OVERVIEW

How to increase the operational efficiency of waste reduction programs across multiple operations and storefronts. A successful waste reduction and recycling program implemented across multiple business locations depends upon the goals of the organization — i.e. cost reduction, recycling implementation, or a larger sustainable materials management program — as well as operational efficiencies in four key areas:

Location: meeting unique needs/scenarios of each collection location

Equipment: ensuring proper equipment utilization

Cost: implementing cost reduction strategies

Continuous Improvement: adjustment of operations based on results

Waste reduction programs are in constant evolution, as variables change in waste material streams, equipment usage, local infrastructure, public policy, commodity markets and more. This guide is designed to aid operations, procurements and sustainability professionals in navigating the ever changing landscape of waste and sustainable materials management for ongoing efficiencies, year-over-year improvements and waste reduction results.

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CENTRALIZED, STANDARDIZED & LOCALIZED

Data consistently shows that the most successful waste reduction programs across multi-location operations are managed centrally, with standardizations made across similar facility types, as well as localized applications made at the site level.1 Such central oversight allows for program management efficiencies, best practice sharing and trend spotting, yet it only proves successful when solutions are tailored to fit the unique needs of each location. This is due to a number of location-based factors, including:

INFRASTRUCTURE

LEGISLATION

SITE LAYOUT

WASTE STREAM TYPES

51 Source: Rubicon proprietary data

SECTION 1

Collection Containers

To efficiently manage waste, focus on the source.

INFRASTRUCTURE

North America’s waste processing and treatment infrastructure is decentralized, with single-provider or “franchised” market restrictions in many locales, making available waste and recycling solutions differ greatly from one location to another. Similarly, one state or municipality may have facilities that accept all commonly recyclable materials, while another may not accept glass, paper or certain plastics.

If goals are made centrally in an organization, it’s important to adapt the strategy to fit various types of infrastructure available for each site.

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LEGISLATION

Regulatory compliance and legislation, as well as government grants and funding, is an important factor in the operational efficiency and cost savings of any waste reduction program.

For example, the US Department of Agriculture (USDA) Advanced Biofuel Payment program provides funding for Anaerobic Digesters at a federal level.2 Meanwhile, at the state level, programs such as CalRecycle provide funding through state-level grant programs, such as the California Organics Grant Program.3

In addition to funding opportunities, federal and local legislation may require special collection and disposal of waste materials — for example, hazardous waste, electronic or e-waste, and organic or food waste. States such as California and Massachusetts, as well as individual cities and municipalities across the country, have established local solid waste reduction and recycling laws, such as California’s Commercial Organic Waste Diversion law, which requires businesses to recycle their organic waste on or after April 1, 2016.4

Staying abreast of changes in legislation across multiple locations can prove challenging and time consuming, yet it is critical to avoiding regulatory violations, potentially heavy repercussions and even repetitional and brand management issues. Fortunately, Rubicon offers regulatory alerts to customers with multi-state, national or international operations to help keep them aware of regulatory or legislative changes that might impact their operations.

2 USDA. (2017). Advanced Biofuel Payment Program | USDA Rural Development. Retrieved March 12, 2018 from https://www.rd.usda.gov/programs-services/advanced-biofuel-payment-program 3 CalRecycle. (2017). Organics Grant Program. Retrieved March 12, 2018 from http://www.calrecycle.ca.gov/Climate/GrantsLoans/Organics/default.htm 4 State of California. AB-1826 Solid waste: organic waste, Pub. L. No. AB 1826 (2014). Retrieved from https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201320140AB1826

SITE LAYOUT

Variations in site layout can greatly impact your waste management operations at each site and the equipment used. For instance, large compactors and balers may prove beneficial in a distribution or warehouse location, but could be problematic in a small back-of-store location.

Similarly, if your business has locations within managed retail developments, such as a mall or shopping center, the success of certain waste solutions could be contingent upon the approval and support of the property manager or landlord.

Whenever possible, waste management conversations should occur prior to occupancy and as a part of the leasing negotiations with the property. Front-of-store variables must also be considered, such as bin placement and signage to guide employees and customers in proper waste disposal habits. Source contamination is a common obstacle in waste reduction programs, which can be avoided with proper front-of-store solutions.

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WASTE STREAM TYPES

The types of waste streams produced at a business can fluctuate seasonally or occasionally with changes in the business. Similarly, any locations with public waste receptacles should be prepared for uncontrolled variables in the waste stream. Being aware of public impact, as well as changes in procurement or business strategy, helps prevent issues or interruptions in waste reduction programs and operations.

For example, a change in supplier packaging could result in significantly more cardboard waste than a site’s current waste services or equipment is prepared to handle. Preparing well in advance prevents material overflow or gaps in services. Similarly, businesses expanding to new locations often require new services, such as construction and demolition (C&D) waste removal. C&D requires roll-off containers for collection and must be planned for before breaking ground.

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SECTION 2

Equipment

There is no one size fits all when it comes to waste.

Waste collection and removal equipment comes in a variety of sizes, functionalities and use cases. Perhaps most importantly, a business’ ability to reduce waste and reduce operational costs while also remaining compliant is largely contingent upon appropriate usage and allocation of waste equipment. For example, businesses using collect bins that are larger than necessary could be paying too much for equipment they don’t need or paying for pickups when the bin is only half full. Using proper equipment for different waste types — such as wet waste — is also critical for reasons of environmental compliance.

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GENERAL WASTE EQUIPMENT

Front/Rear Load A front load dumpster is collected using a forklift-like mechanism on the front of the collection truck. One truck can pick up from multiple sites, making frequent pickups more affordable. These bins have openings on the side and top for depositing waste and are typically serviced on a weekly to daily basis.

Front load dumpsters are ideal for long-term commercial use and come in a variety of sizes — 2-yard, 3-yard, 4-yard for smaller businesses and 6-yard and 8-yard for larger. Businesses can also add a lock bar to prevent others from using their dumpster illegally, or caster wheels to roll the container down tight alleyways in cities.

Roll-Off/Open Top Roll-offs, or open top containers, are designed for industrial businesses or large temporary projects like landscaping work or construction and demolition. Unlike front load containers, trucks can only haul one roll-off at a time, making this solution cost effective for businesses with high waste volumes or temporary waste removal needs.

Roll-off dumpsters come in 10-yard, 20-yard, 30-yard and 40-yard sizes. Size selection is dependent on the size of the business or project, as well as the deposit method. For example, the 10-yard roll-off has 3.5 feet walls making it easy to deposit waste into the container from ground level, while the 40-yard roll-off has 8-feet high walls and is designed for waste deposited from a loading dock or other elevated platform.

Compactor Compactors are used to compress unsorted solid waste materials so they take up less space in a business’ waste container. By compacting the volume, businesses are able to fit more in one container, reducing the frequency and cost of waste pickups and eliminating waste clutter in their back of house operations.

Compactors range in size from two to 40 yards and are kept on premise, so they are generally used by businesses producing large amounts of waste material and have a large back-of-house area. While compactors are often used to compress traditional municipal solid waste (MSW) or “garbage,” it’s important to reduce the amount of organic or food waste material deposited into the compactor for sanitation and weight reasons.

Baler Balers are used to compress recyclable materials such as cardboard, paper and/or plastics into tight bundles for recycling collection and resale to commodity markets. Unlike a compactor, they are not designed for use with unsorted general waste. Vertical balers are operated manually and are most commonly used by businesses with small or medium amounts of recycling. Horizontal balers are designed for higher waste volumes and are operated automatically. Balers often make recycling more economical because the solid blocks are more easily resold for higher commodity market values.

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SPECIALIZED ORGANIC WASTE EQUIPMENT

Dehydrators Dehydrators are used to significantly reduce the weight of organic or food waste materials by removing up to 90 percent of the water from within the materials. Once dehydrated, the materials are easier and more cost effective to transport for organics recycling. Dried food waste can be stored on-site longer than wet food waste, as it has a lower propensity for odor or attracting vermin. The dehydration process requires energy and time, as food waste must be deposited in batch cycles for dehydration. Also, while solid waste volume is reduced, waste water is created and should be factored into a business’ overall waste operations.

Anaerobic Digesters Anaerobic digesters convert organic or food waste into methane gas via the use of microorganisms that operate in the absence of oxygen. The byproduct is a natural gas, which is often referred to as biogas or renewable natural gas (RNG). This gas byproduct is extracted via pipelines and used as fuel for vehicles or electricity. The solid byproduct of anaerobic digesters is referred to as digestate, which may be collected and used as fertilizer. Anaerobic digesters are available as on-site equipment for businesses producing large volumes of organic or food waste, or they can be destination solutions where local infrastructure is available.

Liquid Anaerobic Digesters Liquid anaerobic digesters utilize a similar process to traditional anaerobic digesters expect that all byproducts are disposed of via existing sewer infrastructure. Food waste can be input at any time and does not require batch cycles for processing. Some machines offer real-time reporting and data capture for businesses looking for accurate waste data. While liquid anaerobic digesters reduce waste sent to landfills and can make organic recycling efficient and affordable, the process does utilize both energy and water and adds burdens to local wastewater treatment plants, which should be taken into consideration.

Composters Composters convert organic, food or wood waste into nutrient-rich soil, which can be repurposed by the business, sold, gifted or donated. Composting machines manage or accelerate the natural composting process without manual labor and reduce the weight and volume of organic or food waste by up to 50 percent. The composting process does require a certain amount of carbon-based inputs, such as wood or paper waste. Composters require a batch cycle process similar to dehydrators and require weeks of processing time before soil byproduct is produced. For a truly closed-loop system, compost soil can be utilized to grow new fruits and vegetables on-site for restaurants.

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WASTE VOLUME

EQUIPMENT LOW MEDIUM HIGH

Front End ✔ ✔

Roll-Off ✔

Compactor ✔ ✔

Baler ✔ ✔

Dehydrator ✔ ✔

Anaerobic Digester ✔ ✔

Liquid Anaerobic Digester ✔

Composter ✔ ✔

WASTE VOLUMES BY EQUIPMENT TYPE

SECTION 3

Cost Savings

Price is only one factor in a total cost analysis.

Operational efficiency and cost savings often go hand-in-hand when businesses assess all cost-factors and cost-saving solutions. For instance, zero waste goals can have a significant impact on cost-savings opportunities. A total cost analysis factors in both site and operational costs, including competitive pricing, service frequency optimization, tonnage optimization, equipment optimization, invoice auditing and consolidated billing. When opportunities are reviewed and deployed on a continual basis, operational efficiency and cost savings can become a system-wide norm.

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COMPETITIVE PRICING

Shopping around for competitive pricing is a general practice for procurement professionals, but it can be challenging and time consuming to find not only the best price but also the highest quality service across multiple locations. Some waste service providers utilize sourcing technology to secure competitive refuse removal pricing from prescreened vendors. This practice drives down costs while leveling the playing field for local haulers, which otherwise struggle to compete at the national level.

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SERVICE FREQUENCY OPTIMIZATION

By requiring waste providers to deliver timely data and metrics — including actual weights per service occurrence, monthly tonnage trends, volume per location modeling and downstream disposition for different material types — businesses can develop optimal service frequency intervals. Frequency intervals are adjusted based on fluctuations in business and seasonality. Every month the average tons per service occurrence at each location is measured and locations falling below the established control limits (goal weight) are contacted for corrective action to optimize the average for the new month.

This could mean right-sizing equipment or reducing frequency of pickups in order to achieve higher cost savings and optimize waste services.

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TONNAGE OPTIMIZATION

Since many waste providers own landfill real estate, they are often incentivized to increase tonnage sent to landfills. A common practice for these organizations is to avoid setting up recycling programs for their customers so that more material is sent to landfill, resulting in higher landfill tonnage costs to the customer. For this reason, it’s important for businesses to assess the landfill assets and incentives of their waste providers to ensure alignment of both provider and customer objectives.

Asset-light waste providers utilize technology to provide services nationwide while tapping into local hauler networks that do not own landfill real estate.

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EQUIPMENT OPTIMIZATION

Compactors, balers and other specialty refuse processing equipment can be costly and must be optimized and assessed regularly to ensure continued ROI. Asset-heavy providers that own and lease equipment are incentivized to keep customers in the highest cost equipment for as long as possible, whereas asset-light, tech-enabled providers manage and continually assess equipment procurement and services for cost savings opportunities that benefit both the customer and provider.

Similarly, “bin right-sizing” (the practice of continually auditing whether waste container size at customer locations properly matches waste generation volume at customer locations) can prove to be an important variable that, when managed correctly, can reduce service frequency and overall costs.

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INVOICE AUDITING AND REMITTANCE

Invoice auditing services ensure consistent low-cost billing across a business’ diverse portfolio of sites and waste streams. Waste providers that operate on a gain share model are incentivized by cost reduction and will always scrutinize invoices from vendors to ensure they are accurate and based on actual weights and services, not estimates. For example, “fuel surcharges” are commonly included on waste invoices, but in reality these fees are unnecessary price increases that can often be renegotiated and removed.

This monitoring and interaction with vendors can help to eliminate stop services, “phantom hauls” (in which services do not actually occur), or unwarranted annual or monthly fee increases, returning significant savings each year.

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CONSOLIDATED BILLING AND VENDOR MANAGEMENT

Enterprise-wide billing per site and waste stream creates additional paperwork and bureaucracy that can be avoided with consolidated billing and vendor management services. Billing can be managed at the site or central office level but one consolidated record of waste cost is produced, regardless of location or vendor.

This consolidated billing and vendor management source compiles data over time and can flag inconsistencies in rates, services or invoices. It also can help businesses make educated decisions on cost reduction and waste optimization methods to reduce future costs. Many of the large asset-heavy, landfill-based providers work off incongruent systems that cannot provide this level of consolidation, data reporting or transparency for the benefit of their customers.

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REBATES

The majority of commercial recycling is made up of discarded corrugated cardboard, which can be eligible for rebates if baled, stored and shipped for purchase on the commodity market. Depending on volume, such rebates can provide an alternative revenue source rather than a waste cost.

Often businesses do not realize the volume of cardboard in their waste stream and wind up paying for this bulk material to fill up their dumpsters and be sent to landfills.

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CLOSED LOOPS SOLUTIONS

Closed loop solutions enable businesses to reallocate waste as a resource, designated raw inputs into the remanufacturing process for cost savings on the front and back end of production and reducing waste to landfill.

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SECTION 4

Tips for Continuous Improvement Operational efficiency is an evolution and an ever moving target.

REDUCE INVENTORY Review the number of bins at each location to determine if some bin sets could be removed or partnered up with other buildings in close proximity. Such a review has potential for savings from reduced hauler lifts and monthly bin rentals.

COLLECTION FREQUENCY Review bins that may not be fully optimized to uncover cost savings from the reduction in collection frequency. Have location staff monitor the bins for several weeks to understand actual collection requirements, then coordinate changes with the hauler.

SINGLE-USE DISHWARE Single-use dishware, even compostable options, produce a significant amount of break room waste. Consider reducing or removing single-use dishwater in break rooms and replacing them with reusable options.

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RAMP-UP BIN PROTECTION Installing locks on front load dumpsters and compactors can reduce contamination, vagrancy and illegal dumping, and as a result, bring down unnecessary additional waste costs.

EQUIPMENT MONITORING SYSTEMS Installing monitoring systems on equipment such as compactors can ensure that bins are only being emptied as needed and not over-compacted, which causes the contents to be sent to landfill. Such monitoring systems can result in a cost savings, labor savings and increased waste diversion.

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REASSESS EQUIPMENT Regularly reassess equipment for right-sizing and efficiencies. For example, front load bins could be replaced with compactors and/or balers to save on bin lift charges, bin rentals and labor time spent moving material to alternate locations when bins are full.

CONTAMINATION When contaminated with improper materials, the contents of recycling bins may be redirected from recycling facilities to landfills, incurring landfill charges to your business. For example, compactor contents can be sent to landfill due to contamination, material degradation or over-compaction. Resolving contamination issues can achieve significant cost savings.

STAFF & JANITORIAL EDUCATION Regular and consistent staff and janitorial education helps remind workers of proper waste disposal habits, as well as the potential hazards and costs of improper disposal. Educational programming helps keep programs on track and efficient year over year.

PURCHASING POLICIES Regularly assessing your business’ purchasing policies and practices ensures that suppliers reduce packaging, use recyclable packaging and include recycled content packaging whenever possible. Supplier scorecards give preference to suppliers that meet some or all of the purchasing policy criteria, helping to reduce waste across manufacturing, distribution and storefront locations.

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