The Hidden Costs of Poor Service in Your Waste & Recycling Program

In today’s inflationary business environment, controlling the cost of your waste and recycling program is important—but is your lower-cost program actually costing your company more money?

For many businesses, waste disposal is viewed as an unavoidable expense rather than a strategic opportunity for cost savings and efficiency. While companies often focus on negotiating lower disposal fees, they frequently overlook the financial drain caused by poor service quality.

The Cost of Poor Service: Real-World Inefficiencies

Many businesses choose waste service providers based on price alone, without considering the operational disruptions that poor service can cause. Below are some of the most common inefficiencies that drive up costs:

1. Unresponsive Customer Service  

A lack of communication and slow response times can lead to operational chaos. When businesses cannot get accurate information about their waste pickups, they struggle to plan workflows effectively, leading to wasted time and increased administrative overhead.

2. Missed Pickups  

Missed dumpster switch-outs or delayed waste collection can lead to overflowing bins, stalled projects, and unnecessary labor expenses. Businesses often end up paying workers for idle time as they wait for a hauler that never arrives.

3. Billing Errors  

Inaccurate invoices and unresponsive billing departments result in financial losses and wasted administrative hours. Companies are forced to spend valuable time resolving billing disputes instead of focusing on core operations.

Case Study: How Poor Waste Service Increased Costs

A prominent demolition firm believed they were saving money after negotiating a lower hauling and disposal price with a national waste hauler. However, they failed to account for how poor service would impact their overall costs.

- Missed Pickups: The national hauler frequently failed to switch out dumpsters on time, leading to workers standing idle for hours. Despite the per-haul savings, the cost of paying workers for unproductive time far exceeded the disposal savings.

- Unresponsive Customer Service: In an effort to minimize wasted labor, site supervisors repeatedly reached out to customer service for ETAs on pickups. Unfortunately, they struggled to get in touch with a reliable contact, wasting critical management time.

- Billing Issues: Administrative staff spent excessive time resolving invoice discrepancies, further increasing operational costs.

How Closed Loop Solutions Transformed Their Waste Management

Frustrated by service failures, the demolition firm partnered with Closed Loop Solutions. While they received a hauling price that was slightly lower than the national provider, the real financial gains came from improved service:

- Fewer Hauls: Accurate pickup estimates allowed crews to fill dumpsters more efficiently before requesting a switch-out, reducing the total number of hauls needed.

- Lower Labor Expenses: Reliable service and quicker ETAs virtually eliminated idle worker wages.

- Reduced Administrative Costs: Accurate billing and responsive customer service minimized the time spent on invoice corrections and scheduling issues.

Take Control of Your Waste Costs

If your waste management program is focused only on disposal fees, you may be overlooking significant financial savings. Closed Loop Solutions specializes in service-driven waste management programs that maximize efficiency, reduce costs, and improve sustainability.

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