Waste Management Procurement: Unburdening the Earth from Waste

Unsustainable production and consumption practices of humanity have challenged waste management procurement leaders to unburden the earth from waste. Advanced recycling, blockchain, robotics, AI and IoT could help the world create a circular economy. Citing the 2022 TRI National Analysis dataset, the U.S. EPA (in March 2024) stated that waste management surged by 2.0 billion pounds since 2013, indicating around 3.5 billion-pound rise in recycling.

The UN warns that small businesses, households and public service providers produce around 2.1 billion to 2.3 billion tons of municipal solid waste annually. The governing body asserts that 2.7 billion people lack access to solid waste collection, alluding to the need for procurement strategies to accentuate waste management services. Although the UN introduced “World Environment Day”—held annually on June 5—the need for urgent action to protect the planet has become even more critical.

Can procurement leaders step up to halt the waste crisis through robust supply chain strategies?

Sourcing from Recycling

Waste management industry, if ignored, may leave vast chasms of saving opportunities on the table. Similarly, sourcing strategy is in the vanguard position to foster recycling activities. Restoration of contaminated land may need proper management and recycling of municipal, industrial and hazardous waste, including food items, paper materials, scrap metal, solvents and chemicals and electrical items.

Reports suggest that the majority of service providers plan to recycle more than 89.9% of all waste collected. In essence, outsourcing waste management operations has become a strategic decision to achieve an increased level of cost efficiency. To put this in perspective, outsourcing can reduce fixed and operational costs, boost Return Assets and reduce capital investment. It can also bolster agility, optimize supply chain processes, minimize risk and reinforce compliance with environmental law.

As business entities incorporate environmental sustainability, outsourcing is likely to provide an impetus to streamline operations, foster sustainability initiatives and forecast demand using advanced analytics.

Why Cost Analysis is Vital to turn Adversity into Opportunity

Billions of dollars’ worth of revenue is lost annually due to wastage. In March 2024, the UN inferred that the world squandered 1.05 billion of food a day, while the impact of food loss and waste is projected to be around USD 1 trillion on the global economy. Moreover, food loss and waste emit 8% to 10% of the global GHG emissions annually.

Industries are expected to make waste reduction part of their company’s purpose through waste management procurement intelligence solutions to benefit the people and planet. Predominantly, the cost structure of waste management generally includes machinery and equipment, logistics, labor, regulatory certifications and maintenance repair. In essence, solid waste management is represented by a net cost, which can be minimized by process optimization and recycling strategies.

Know the Suppliers

Procurement leaders have put high stakes on choosing apt suppliers using benchmarks—supplier ranking, industries served, e-waste management, municipal waste management, industrial waste management and employee strength. The moderately consolidated waste management category is likely to witness incumbents injecting funds into state-of-the-art technologies to reuse and recycle garbage.

In March 2024, Abu Dhabi-based Emirates Water & Electricity Company (EWEC) and Tadweer Group reportedly selected a consortium spearheaded by Marubeni Corporation, which included Hitachi Zosen Inova to develop what they have dubbed “the world’s most advanced and efficient Waste to Energy (WtE) facility. The news comes against the backdrop of a key global procurement process that started in July 2022.

In September 2023, SUEZ inked two new contracts for water and waste projects to help China achieve carbon neutrality by 2060. The group is contemplating launching its first plastics recovery project in China. Amidst fluctuating business and market conditions, supplier management becomes critical to enhance real savings and produce better outcomes.

Closing the Loop on Environment Day

As the world celebrates Environment Day on June 5, it is high time stakeholders harness the power of waste management procurement. While sustainable sourcing is likely to reign supreme, stakeholders may be inclined to transition from global to local to procure recycling equipment and tools to cut costs. Indeed, waste management can be achieved by following the 3Rs—reduce, reuse and recycle. The million-dollar question lingers: Are businesses, organizations and governments ready to invest in procurement solutions to gain a competitive edge?

Foster your waste management strategies with Pipeline - Procurement Intelligence and be champions of the earth.

About Pipeline-Procurement Intelligence

Pipeline-Procurement Intelligence is the procurement arm of Grand View Research, Inc - a global market research publishing and management consulting firm. Pipeline facilitates the optimization of supply chain management, expedites the decision-making process, supporting businesses in pricing and costing analysis, sourcing insights, and supplier strategies to assist its clients improve cash flow, reduce costs, and capitalize on opportunities across the supply chain. Safeguard the resilience of your procurement through Pipeline-Procurement Intelligence, and gain actionable insights for an agile and robust supply chain. Secure your company's supply chain with Pipeline-Procurement Intelligence and obtain actionable insights for a flexible, efficient, and resilient supply chain.