Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
As Seen In
WasteAdvantage
The Advantage in the Waste Industry
Enhancing Your Bottom Line: Waste and Recycling Collection Vehicle Routing Optimization
| Gary Lima and Bob Wallace |
The wasTe indusTry has seen more changes than most of us can keep up with, not only within the most recent few years, but largely over the past three decades. Most company owners and solid waste industry management say the same thing, I remember when we picked up the trash and took it all to the landfill. A far cry from where the industry is today. Now there are rules, ordinances, franchise agreements, municipal collectionprocessing, transferdisposal contracts, collection service constraints and other regulations that dictate what collection service providers can and cannot do. For example, diversion, recycling, green waste, food and organics, C&D, medical, wet, dry, etc. It also seems the industry went from one truck type to several specialized vehicles, each unique and seemingly needed in its own way. Keeping up with the routing of all these services and collection vehicles has become an important part of efficiently managing any organizations or companys solid waste and recycling collection operations. The economy has affected organizational goals for solid waste and recycling collection for all lines of businessresidential, commercial and industrial in todays market. The motto is, Do it cheaper, faster and with less resources and equipment now. Maintaining service levels, contracts and franchise compliance have become more competitive often eroding profit margins. The rapid growth spurt, preceding the recent recession, happened faster than anyone expected, and it led to adding more routes without having the time to create them efficiently. This resulted in a wide range of collection routes throughout the nation so unbalanced and inefficient that, now that the new growth has halted, it is time for both public sector agencies and private sector companies to strongly consider rerouting their customer base and begin running their routes more efficiently.
Efficient and cost-effective fleet and resource management through planning is the most important step in enhancing an organizations bottom line.
Route optimization affects all aspects of a solid waste and/ oR Recycling collection seRvice pRovideR oRganization.
Route Optimization
Route optimization refers to choosing the best element from some set of available alternatives. Rebalancing routes for reducing hours and miles, it involves improving fleet and manpower productivity and profitability. Route optimization affects all aspects of a solid waste and/or recycling collection service provider organization. Whether private or public sector, efficient and cost-effective fleet and resource management through planning is the most important step in enhancing an organizations bottom line. Understanding all the parameters and how they create impact an organizations service objectives allow collection service providers to choose the right tools for the job. To begin route optimization, reducing route hours and miles driven are accomplished by benchmarking an organizations current operations and driver procedures, then analyzing that data to identify key areas of needed improvement and make the necessary changes. There are a variety of decisions to be made with respect to collection vehicle routing, customer service impacts, day of service changes, whether or not to purchase routing software, GPS, onboard systems, etc., and, more importantly, which professional experts to hire to assist in helping make the critical decisions and the implementation of the needed changes. One thing that is certain, those who invest in route optimization will be more profitable.
Route optimization: completing the puzzle to saving money. Image courtesy of CBF Wealth Firm.
28
WasteAdvantage Magazine
March 2010
As Seen In
Enhancing Your Bottom Line: Waste and Recycling Collection Vehicle Routing Optimization
been, and will continue, to be an important function for waste collection service providers (organizations/ The Advantage in the Waste Industry haulers) in being as efficient as possible.
WasteAdvantage
streets were not included or they didnt have an address range entered. One could use latitude and longitude coordinates to place the customer on the map but it wouldnt route by the street address. Back then, the biggest goal was to reduce the number of hours it took to service all customers. The more a person worked with the software and was able to analyze the results, one began to realize many advantages to using a program that used algorithms to find the quickest way to route vehicles through your service area. As a result, the need for becoming experts at benchmarking was apparent. The key is to break down the processes and know the details allowing one to manage better and make more informed process improvement and waste management collections operational decisions. Other advantages of the use of software and technology become apparent when a collection service provider organization is trying to determine where the most optimal place is to purchase Old school maps and pin an office or yard for their methods to routing. vehicles. Some software offers Image courtesy of WIH Resource Group. great logistical uses for this type of facility siting studies. The software allows organizations to identify the best location for a depot in a service area or geographical location. The right software also allows organizations to review the impacts of adding a transfer station or MRF to see how it would affect drive times to and from the collection routes, as well as non-driving timesthus being able to better calculate collection costs. As stated before, GIS mapping has come a long way. Some haulers have already starting using Google Earth maps in their routing processes. New technology has
30
WasteAdvantage Magazine
March 2010
As Seen In
WasteAdvantage
Route optimization provides collection service providers the advantage when bidding or proposing on a new service contract. Knowing how many collection vehicles and hours it will actually take The Advantage in the Waste Industry to service a city or service area helps organizations set reasonable and competitive rates. Safety has become an important part of everyones business. Route optimization and route auditing through driver ride-alongs, identifies many safety issues on route and once those are exposed, it gives the collection service provider a better way of making changes to prevent injuries or accidents. This helps organizations decide if they need to put a helper on a truck or create a scout service for the route, increasing efficiencies, reducing on-route collection costs and improving bottomline profitability.
Modern map view of points using real-time GIS data. Image courtesy of EPAs Enviromapper. Route optimization also can be linked to customer billing (invoicing). Knowing where a collection service providers customers are is one thing, but A Strong Recommendation knowing where the competitors customers are is another, at least in open not There are many ways to accomplish route optimization. When it comes to contracted or non-franchised markets. Identify potential growth areas that would enhancing an organizations bottom line, take the time to evaluate any product make routes more profitable. Onboard computers, AVL and RFID are starting or service and realize that there are experienced people in the industry that to play a role in optimizing routes. Though each of these products has their can assist you and your organization in route optimization, route auditing, advantages, there is still room for improvement. benchmarking operational process improvement and provide you with software
WasteAdvantage Magazine
March 2010
31
As Seen In
Enhancing Your Bottom Line: Waste and Recycling Collection Vehicle Routing Optimization
WasteAdvantage
The Advantage in the Waste Industry
Additionally, and as a strong recommendation, consider the software or technology service providers back-end (post purchase and product or technology install or implementation) customer service support when purchasing routing or other software and technology tools to allow time to use the software for what ifs. | WA Gary Lima is Founder, President and CEO of Stealth Marketing (Yorba Linda, CA), a service provider for major and smaller haulers and municipalities across the nation offering owners and operators unparalleled, specialized waste management services. A pioneer of proprietary route auditing techniques and best practices, Stealth Marketing is experienced in route smart, caps logistics, GIS, GPS and ESRI software, digital mapping and geo-coding services, professional consulting and policy and procedure implementation, cost analysis services and special waste programs. Programs and findings are tailored to improve all areas of a companys business, providing the ultimate validation that operations are running optimally. This provides peace of mind to clients and the satisfaction that theyre doing all they can to maximize their businesses and growing profits. Gary can be reached at (714) 469-3571 or via e-mail at garylima@ sbcglobal.net. Bob Wallace, MBA, is a Principal and Vice President of Client Solutions for WIH Resource Group (Phoenix, AZ), providing diversified services and extensive experience to clients in both the private and public sectors. Bob has more than 25 years experience in solid waste and recycling management, transportation/logistics operations, fleet management, alternative vehicle fuel solutions (CNG, LNG, Biodiesels, etc.), WastebyRail program management, recycling/solid waste program planning and development. He has expertise in the areas of solid waste and recycling collection routing and route auditing, disposal and transportation rate and contract negotiations and strategic business planning. He has extensive experience in conducting both solid waste collections and transfer station operational performance assessments OPAs (a business improvement process). Bob previously served as a board member for the Arizona Chapter of SWANA and has served on the National Solid Waste Rate Committee for the American Public Works Association. He is also a former board member of the California Refuse and Recycling Associations Global Recycling Council. Bob can be reached at (480) 241-9994, via e-mail at bwallace@wihresourcegroup.com or visit www.wihrg.com.
2010 Waste Advantage Magazine, All Rights Reserved. Reprinted from Waste Advantage Magazine. Contents cannot be reprinted without permission from the publisher.
32
WasteAdvantage Magazine
March 2010