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Global Logistics Company UPS Partners with Recycling and Waste Solutions to Develop and Execute a Centralized Palette Program.

Global Logistics Company UPS Partners with Recycling and Waste Solutions to Develop and Execute a Centralized Palette Program.

The Program will Allow UPS to Track, Salvage and Generate Revenue from Palettes within the System while Optimizing Cost Benefits.

 

Overview

Global logistics company and leader in package delivery, UPS recognized an issue within their palette system, and sought partnership with Recycling and Waste Solutions (RWS) to not only remedy but optimize the program at a local, regional and national level. Understanding that its palettes are a commodity driven by the market throughout regions of the country, UPS needed to be able to monitor, track, value and drive its palettes throughout the system as well as the market in order to cut costs on waste and theft, and drive profit.

Challenge

UPSUPS understood the value of its palettes by mass and quality, but had no process for capturing that information, tracking it or applying it to operational equations that would cut costs and generate revenue. Through its partnership with RWS, UPS sought a diverse team to with an analytical approach to apply tactful programs across service lines in a way that UPS had not been able to accomplish before.

At the time, UPS did not have the right system – or any system – to track their palettes. The logistics giant did not have any account for what was in the system and what the value of the system was. As a leader in the industry, its palette system was already a very large commodity that was not only undervalued, but essentially devalued.

In order to capture the system data, put a program in place to track, divert, and optimize the value of UPS’ palettes, UPS needed a partner to invest the time and resources with a thoughtful and analytical approach, advanced real-time monitoring and a dedicated and diverse team.

Solution

Partnering with RWS, the UPS team offered a sampling of the challenge through its Atlanta headquarters, where RWS conducted its initial analysis to assess the local and regional system. Here the team developed a scalable program that could be customized and rolled out by region, throughout the country, and ultimately, globally.

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Using its Audit app, RWS was able to provide real-time data to UPS while onsite during the analysis. This gave UPS an opportunity to take a live look at a numeric evaluation of the incoming, outgoing, diversion and loss of its palettes by volume as well as cost vs. profit. Once the data from the first ten sites in Atlanta were evaluated, the RWS team began applying the same approach with customized tactics throughout the rest of the country, territory by territory, region by region.

It was critical to monitor how many palettes were coming into each hub, what their condition was, how they were being reused to be sent out to other hubs, or how many were being exhausted, either broken down or excessive, that needed to be released from the system through one form or another. And if the palettes were being exhausted, how was that diversion process evaluated and determined for the highest ROI on the material?

Critical to rolling out the program and details of the evaluations was being able to tailor the program to diverse sites and teams, and training the employees in a way that streamlined the process so that their valuable time was not focused on palette evaluation and allocation. In order to ensure this balance of automation and manual review, RWS implemented a chain of custody throughout the supply chain so that there was clear and constant directive on the palettes as they made their way through the system.

Benefits

UPS-06From January to August, 2016, RWS helped UPS to divert 165 million lbs. of palettes from landfill. This was a 75% increase from the previous year, a 300% increase on collection and 400% increase on revenue. RWS extracted 1.6 million palettes, and is projected more than 3 million through the end of the year. Now, UPS’ palette program has become a multimillion dollar business. Further, UPS has gained the following advantages:

  • A system-wide and centralized tracking and diversion program customized by region and hub necessity, with analytic and realtime technology, bolstered by trained employees and a hands-on RWS team.
  • A new stream of revenue that was otherwise devalued as a sunk cost, wasted commodity.
  • An auditing system that prevents theft internally and externally.
  • A dedicated and diverse team of RWS professionals to implement customized palette programs system wide alongside trained UPS team members.
  • Waste collection has been reduced from five times per week, to two times.
  • A newly piloted program, reflective of the palette program, to capture corrugated containers. This program is on track to divert 120 tons of OCC, and set to rollout system wide, as well.
  • Centralized vendor contacts from a network of nearly 500 down to 1. About RWS Recycling and Waste Solutions provides the nation’s largest supply chains with innovative managed solutions for Commodity Recycling and Waste Services that reduce cost, drive commodity revenue and improve overall services through flawless execution. Managing thousands of locations with hundreds of thousands of work order requests takes proven tools and dedicated resources. RWS knows the full corporate value of sustainable environmental and economic waste solutions.

For more information, please visit www.rwsfacilityservices.com

Recycling & Waste Solutions Put the “Squeeze” on One QSR’s Extra Lemon Concentrate, and Turned That Excess in Energy and Cost Savings.

Recycling & Waste Solutions Put the “Squeeze” on One QSR’s Extra Lemon Concentrate, and Turned That Excess in Energy and Cost Savings.

Recycling & Waste Solutions (RWS) helps a quick service restaurant (QSR) chain divert excess product from landfills and manage end-of-life disposal processes for maximum brand protection.

 

Challenge

A leading QSR chain needed to dispose of excess frozen lemon juice concentrate housed in several cold-storage facilities throughout the country. The chain wanted to dispose of the product as quickly and efficiently as possible in an environmentally sensitive manner and in full compliance with all relevant local and state regulations. To protect its brand, the chain needed to track each barrel of product through the disposal process to its end destination and ensure complete and proper destruction.

Solution

Lemon-04The chain sought help from the RWS team. The QSR chain wanted to divert 100 percent of the product at each of the storage facilities from landfills, but varying regulations, recycling constraints and service provider capabilities made this impossible. RWS was able to operate within these various limitations and worked closely with providers to find the best alternative disposal solution when diversion was not an option. RWS obtained product specification sheets to identify any special handling and disposal requirements and ensured adherence to all proper recycling and end-of-life disposal procedures. Leveraging its expertise and vast network of suppliers, RWS also identified and qualified vendors for recycling opportunities and disposal sites in each of the jurisdictions involved.

The team inspected recycling facilities to add another layer of brand protection and tracked every barrel of product to its end destination and destruction. In half of the facilities where product was stored, RWS was able to divert 100 percent of the total waste, including steel, wood pallets and concentrate, from landfills to anaerobic digestion facilities where it was converted into energy. At the locations where diversion was not possible or permitted, RWS established and oversaw strict guidelines for disposal and confirmed compliance with all jurisdiction requirements. It also secured disposal documentation, including certificates of destruction.

Whereas disposal could have taken eight to twelve weeks to complete if the chain had managed the process on its own, RWS was able to establish a plan, select service providers, oversee all disposal efforts and track every bit of material to complete disposal and/or diversion in just 23 business days. This helped the QSR chain reduce costs and significantly mitigated the brand’s exposure to risk.

Benefits

  • Energy savings – By diverting waste from half of the storage facilities to anaerobic digesters instead of landfills, the QSR chain saved the equivalent of 62,107 gallons of gasoline, reduced energy consumption by 963,000,000 BTUs and curbed incremental greenhouse gas emissions by 164 metric tons. (Statistics calculated via WARM – Waste Reduction Model – by the Environmental Protection Agency)
  • Cost Savings – By utilizing RWS’s leverage in the recycling and waste industry, the QSR chain achieved cost savings of approximately 17 percent over conventional practices of landfill disposal at the local distribution center level.
  • Brand protection – RWS’s knowledge of progressive alternate disposal methods, expertise in project and logistics management and oversight of qualified service providers helped ensure the best overall disposal program for the QSR chain and protect its brand.
  • Operating efficiencies – RWS developed standard operating procedures to manage the disposal program across the locations simultaneously, achieving complete disposal of all product in just 23 business days as opposed to the eight to 12 weeks it would have taken the QSR chain if it managed the project on its own.

About RWS

RWS provides the nation’s largest supply chains with innovative managed solutions for commodity
recycling and waste services that reduce cost, drive commodity revenue and improve overall services
through flawless execution. Managing thousands of locations with hundreds of thousands of work order
requests takes proven tools and dedicated resources. RWS knows the full corporate value of sustainable
environmental and economic waste solutions.

For more information, please visit www.rwsfacilityservices.com