Case study - Sourcing of Waste Management Services
- The Waste Management Services category included the national provision of waste collection services across 8 food manufacturing and distribution sites
- This included collection of multiple streams including general commercial, food, bread, card and plastic waste
- The existing contract for waste services, which was with a sole supplier, had been extended on current terms. The incumbent supplier had been delivering the service for many years and understood the business well.
- The contract had not been actively managed and there was a lack of understanding of the pricing and service offered by the incumbent
Approach and Results
- An RFI was conducted to collate all relevant pricing, service level, volume and contractual information
- An RFQ process was completed with national and regional suppliers to understand the potential options for delivering the service
- RFQ highlighted a significant departure from current market rates, particularly for food waste and rebate generating waste streams such as bread, card and plastic waste
- Negotiation with incumbent using market rates as the benchmark, delivered a 20% saving against current rates whilst maintaining service continuity
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