Case Study
– Waste Procurement

Waste procurement review case study

BACKGROUND

Save the Children Australia (SCA) is a Not For Profit (NFP) Charitable organisation with over 70 retail shops & offices plus numerous client programs across all states & territories, including regional sites. The organisation operated under a complex organisational structure, with multiple business streams & state-based teams. There was no formalised waste sourcing strategy or consolidated commercial terms in place, with over 25 legacy waste contracts & predominately site based relationships. Net zero was an organisational target so SCA wanted to develop a waste sourcing strategy that provided the visibility, reporting & supplier support to drive to this goal. The organisation also wanted to align itself with suppliers who have similar principles & demonstrated this in its actions & objectives.

PROJECT OVERVIEW

Spend Solutions was engaged to conduct a waste procurement review across solid waste & e-waste services to deliver a sourcing strategy that optimised commercial terms while meeting the operational needs & strategic objectives of the organisation.

An in-depth analysis was conducted to understand the current state, including identifying legacy contracts, obtaining usage reports & speaking with key stakeholders to obtain perspectives on current issues & opportunities. A sourcing strategy was then developed & facilitated through a waste tender to identify potential suppliers who had the capabilities, commercial positioning & values to support SCA’s organisational & project objectives. Various sourcing scenarios were presented to SCA to allow them to make an informed sourcing decision that balanced organisational objectives with the level of supplier change & potential savings.

PROJECT OUTCOMES

The preferred sourcing strategy allowed SCA to put the foundations in place to meet its organisational objectives, including having consolidated spend with preferred suppliers, centralised contracts, weight-based reporting as well as clear performance targets & reporting.

The new sourcing strategy delivered a 24% annualised cost reduction, reduced the number of contracts from 25 to 2, improved commercial & legal terms and provided much improved access to supplier resources, setting the client up for the next stage of savings, supplier performance improvement & land fill diversion activities.