Presentation on theme: "Provide awareness to the industry regarding non- mobile assets Our industry focuses on mobile assets (trucks) and people and rightly so… We know how many."— Presentation transcript:
Provide awareness to the industry regarding non- mobile assets Our industry focuses on mobile assets (trucks) and people and rightly so… We know how many we have, We know where they are, We know their condition However, very few can claim this for non mobile assets
Value of Frontload Containers Per Route: $200K Value of Front Load Truck to Collect Route: $300K Value of Containers Per Route: $250K Value of Side Load Truck to Collect Route: $325K Value of Containers Per Route: $200K Value of Roll-off Truck to Collect Route: $200K
How much capital is involved?What does it affect?Can we do anything about it? The business objective is to maximize your capital assets – are they effectively working for you?
The purchase value of roll-offs, commercial containers and residential carts in North America $$$ $30 Billion
Estimated Number of Roll-off Boxes >1MM within top 100 haulers (Estimated Value of $4 Billion) Do you know how many you have and do they match your billable accounts? Estimated Number of Commercial Containers Estimate >4MM within top 100 haulers (Estimated Value of $21 Billion) Do you know how many you have and does the size match up to your billables? Estimated Number of Roll-out Carts Estimate > 100 MM in the industry (Estimated Value of $5.0 Billion) Do you know how many you have and do they match your billable accounts?
Then… you should care about managing your non-mobile assets Free Cash Flow (Cap Ex)? Customer Service Standards? Operational Expenses and OT?
The Problem The Effect Capital Loss & Poor Capital Utilization Decreased Efficiencies Poor Customer Satisfaction (Customer Loss) Overall Increase in Operational Costs No Reconciliation Process Limited Visibility of Assets (Type, Status& Location) Manual Processes with Poor Accuracy
Customer Service Standards -Poor Customer Satisfaction -Lost business - Increased Admin time -False info resulting in poor decisions Capital Expenditures - Over purchasing unnecessary assets -Assets not “working “ for you -Estimated 1% - 5% of non-mobile assets “lost” or “stolen” Operations -Lost revenue, incorrect size on billing record -Increased time to manually inventory assets -Resource allocation challenges -OT Hours These Categories can be quantified and monetized for your operation
“The call center has no idea on what container is available and where it is available” “We are sending out dirty or broken containers” “We have many customers that call for temp roll-off with a delivery guarantee and since we can’t confirm a delivery, they hang up and go to our competitors” “We are getting requests for same day delivery and turning them down”
A “lost” or “stolen” asset is an asset that is no longer working for you or doesn’t have the potential to work for you (not in inventory). But, it may be working for someone else (your customer “on your dime” or competitor)!
Servicing Non Paying Accounts o Contributing Factors: No system to Reconcile Assets to Billable Accounts No system to proactively track inventory levels No visibility of asset condition and/or location o Commercial Container Example: ~3% of accounts are incorrectly billed for service (customer has larger container compared to billing record) o Impact on Business: Represents an average industry annual revenue loss of $28.8MM (average rate variance of $20 per size) Increased one-time industry capital cost of $18MM (average of $150 cost variance per size) Combined $46.8 MM impact on industry in this category Capital Loss o Contributing Factors: Limited Labor Focused on Managing Assets No Service Verification Tied to the Asset Inefficient Systems and Processes for Retrieving Assets on Collection Day Stash Yards (specific to roll-off) o Roll-out Cart Example: Estimated that 2 % are “lost” annually (higher percentages in subscription markets ~5%) o Impact on Business: Represents an average industry annual capital loss of $100MM in the world of residential carts
Every asset you purchase should have a purpose – it should be “working” for you should fall into a bucket Generating revenue at a new account Replacing a retired asset that is generating revenue – i.e.. Container that is damaged and beyond warranty Generating revenue as additional service at existing account Replacing a “lost” or “stolen” asset
»For Collection Operations, non-mobile assets are a large part of your asset base »You can’t afford to mismanage non-mobile assets, it affects all parts of your business »With the proper asset management system, you can measure the productivity of non-mobile assets