Expense Reduction Analysts stop the hazardous waste of Zeon’s profits!

Zeon Chemicals, an international company that develops and manufactures synthetic rubber products for a wide range of industries, invited Expense Reduction Analysts to tackle their various production and waste chemicals cost.

The spend was £226,000 per year and covered both hazardous and non hazardous wastes; Zeon were happy with their general dry waste and recycling costs.

The project involved gathering a wide range of data including volumes, laboratory analyses, storage and handling characteristics, alternative disposal routes, skip types, seasonality and charging structures.

“We discussed options with suitable disposal companies and recommended a choice from three costed solutions. The client selected the option that involved changing the main supplier, and retaining one specialist supplier (who had reacted to this review by re-engineering their own processes to reduce their own costs and so pass on savings of 35% to our client)” explained David Little, Expense Reduction Analysts’, Waste Disposal specialist.

The project results were:

1. Savings of 36%, 39%, 6% and 35% on the four waste types – equivalent to £35k pa (15%) overall.
2. Plus a reduction in landfill tax due to water dispensation values for the moisture content of the filter cake effluent – refund claimed from HMRC of £11k pa.
3. Plus, from one tenderer who was already collecting General Waste and recyclates, a reduction here worth £4k (37% pa) was negotiated if they won – and they did.
4. Plus further possible savings following a trial of alternative waste containers.

Graham Pearce comments “As a key NBR producer we are fully aware of our environmental responsibilities and have been proactive in complying with legislative and Environment Agency requirements, as part of our IPPC improvement programme. An important objective for us is to reduce our waste inventory and also our overall costs. Waste costs continue to increase and it is important to our business to identify savings in this area. Expense Reduction Analysts have been very helpful in this process especially with regard to the tender agreements and related negotiations, which is an important part of our waste management programme.”

Peter Male, Expense Reduction Analysts consultant continues “This was a difficult project to pull together but, with the knowledge and diligence of David Little, our Chartered Waste Manager, we have created savings so far of £50k (22%) pa. This result makes a good contribution to the Production Director’s challenging cost reduction target!”