understanding your expenses
When setting up your waste management budget, it’s useful to know the different types of expenses you should be expecting. These fall into three main categories:
- outlays: Not to be confused with overhead costs, these are the expenses of acquiring certain waste management assets, such as trucks and other equipment. The actual cost of a truck in your fleet, for example, would be what you spend maintaining it and paying for fuel over its entire lifespan.
- overhead costs: These are the costs of managing and supporting your waste hauling operation. They include everything from your driver and dispatcher training to the software you use to track your fleet data.
- operating costs: These are all of those ongoing, day-to-day expenses like employee salaries, fuel, equipment and vehicle maintenance, and any outstanding leases.
Breaking down your expense estimate into fixed costs and variable costs can further facilitate the budgeting process. Fixed costs will include things like truck leases, insurance premiums, licenses and permits, payroll, and back-office expenses (think Internet and dispatch software). Your variable costs will likely include truck maintenance, fuel usage, emergency equipment/vehicle repairs or replacements, and even the type of waste being transported, from industrial waste transportation and disposal to the disposal of municipal solid waste.
While not technically an expense (yet), don’t forget to allocate a portion of your budget to future growth potential, whether you’re hoping to eventually expand your fleet, improve collection, storage and waste disposal methods, or set up more transfer stations along your routes.
budget-related KPIs to track
To optimize your budget, there are two key performance indicators (KPIs) you should be tracking:
- loads per truck per day: This is one of the most commonly tracked KPIs because it directly correlates with your revenue and allows your customers to maximize their profits.
- deadhead miles: This is the distance between your unloading point and the point where the new load is to be picked up. Miles driven with no product means no revenue; the more deadhead miles you have to cover, the more money you lose. If you can eliminate deadhead miles by optimizing your drivers’ routes, it will have a huge impact on their loads per truck per day.
Monitoring these metrics will allow for you to increase your efficiency and, consequently, your profits. Both metrics can be easily monitored with our system using the business intelligence modules and reporting tools within AMCS Bulk Hauling.
how to reduce waste management costs
To cut costs for your waste hauling business, here are five cost-savings tips:
1. be alert to “hidden costs”: Some technology providers are not transparent when it comes to additional costs, such as their tablet or cell service. AMCS is different. We help our customers navigate the entire budgeting process through regular communication and support.
2. keep your fleet properly specified: Make sure every truck in your fleet is using fuel-efficient components. Pay close attention to tire alignment, inflation levels, and do tire retreading regularly. Reduce the weight that you’re hauling wherever possible.
3. ensure drivers are properly trained: Certain driver behaviors, such as letting truck engines warm up on their own, running engines as fuel-efficiently as possible, and avoiding idling, can all contribute to cost savings. Encourage drivers to attend safety programs, perform pre-trip inspections and take other relevant safety precautions so that you don’t find your insurance premiums going up.
4. don’t skimp on preventative maintenance: Come up with a regular maintenance schedule for all waste collection, storage and disposal equipment, as well as every vehicle in your fleet to increase vehicle and equipment lifespan. Make sure you know the standard lifespan of all equipment and vehicles you own and how they are financed. This can dramatically cut down on expensive or unnecessary outlays.
5. use routing and scheduling software: A solution like AMCS Bulk Hauling can help you monitor fuel, driver performance and track maintenance schedules more easily. With mobile business intelligence on-demand, customizable reports, ticket reconciliation tools and advanced route management, you’ll have greater real-time visibility into your fleet activity and enhanced dispatch capabilities.
in conclusion
The first and most important step in setting up your budget for solid waste management is to find a cost-effective, sustainable technology partner like AMCS. We’ve worked with some of the nation’s largest transfer waste transporters to completely transform the way they do business, from their dispatch and field operations to the back-office and accounting teams.
AMCS Bulk Hauling is the industry-leading TMS for short-haul, bulk commodity trucking companies, solving complex problems with simple solutions. Waste Haulers like you are navigating their operations with our system and its insights. With AMCS, it's simple to streamline your waste-hauling needs.