Entire Recycling were asked to perform a waste assessment for a manufacturer of packaging for the chocolate industry. The company had been in operation for many years and had an excellent handle of operations but took the decision to see if savings could be made.
The Client's Objectives
The company felt that they were getting a good return but wanted a second opinion. With the creation of tonnes of waste every week, getting the rebate from recycling packaging waste could have a significant effect on their bottom line. The company were keen to safeguard jobs and maintain profitability to support their ability to compete as a UK manufacturer.
Our solution was simple. One thorough waste assessment by our team identified a number of areas for improvement.
One thing stuck out. The company had been baling their materials together creating a mixed waste. This meant that the rebate they were getting was much lower than it could be. By separating out the different types of waste, there was no cross-contamination and a higher-valued rebate could be generated.
In addition, aluminium moulds used for the creation of the packaging were being overlooked & the rebate being gained for them was significantly below market value.
Their Measures for Success
The company’s main criteria for success were:
- Maximising their rebate
- Building a trusting relationship with a recycling company
We arranged for the quick installation of two additional balers so that each waste stream had its own baler. We gave the company the option of an outright purchase of the balers, a purchase spread over the period of the agreement to be taken from the rebate or a rental of the balers. This gave the client flexibility to choose the option that supported their business model and cash at hand.
Once it was recognised that the rebate for plastics could be increased by 200%, time was of the essence. Entire Recycling arranged for the additional balers to be installed within one week and developed a process that meant waste streams could be separated with no extra labour time that was implemented before the balers were installed to ensure that the company didn’t miss out on an increased rebate in the meantime.
The Value to the Customer
There were a number of ways in which the customer felt that this was valuable to them:
- Their rebate for plastics increased from £12k to £36k per annum, a huge difference for one simple change
- A further £8k in revenue per annum was identified through the recycling of aluminium moulds which were being overlooked by the incumbent recycling company
- The company felt they were getting a more trusting relationship. They speculated that the mixed waste was being broken apart by the incumbent company and separated so that they could gain a greater return than the client