Truth be told, the role waste management businesses play in our everyday society cannot be undermined especially when you consider how the services they offer help to keep our environment clean and healthy, sustainable and efficient.
In this line of business, operators or managers must understand certain KPIs to ensure they can measure the effectiveness of the services they offer.
It will also keep them in line with all relevant environmental standards. It will as well offer valid insights into numerous aspects of their business and ensure they have the right information to position the business to ensure future success.
As such, if you own or operate a waste management business, below are the top KPIs that are very necessary to ensure you start and run a successful business.
KPI for a Waste Management Business
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Waste Diversion Rate
This KPI works to identify the amount or percentage of waste that is diverted from landfills via recycling, composting, or even other sustainable waste management strategies. It offers waste managers a good insight into the environmental impact of the services they offer as a management company.
Notably, higher diversion rates translate into better and more efficient recycling and composting programs, and this will drastically limit the amount of waste that ends up in landfills.
Aside from working to save or conserve landfill spaces, it is important to know that it also limits greenhouse gas emissions that are prevalent in waste decomposition.
Measurement
This particular KPI is calculated by dividing the total quantity of waste diverted by the total waste collected and afterward multiplying by 100 to obtain a percentage.
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Customer Satisfaction and Retention Rates
This KPI gauges the satisfaction level of customers regarding the services the waste management company provides. In addition, the retention rates will assess the percentage of customers who continue to leverage the company’s expertise over a given period.
In every service business, excellent customer satisfaction and retention rates are indicators that buttress a company’s reliability, quality of service, as well as it’s responsiveness to customer needs.
Note that customers who are satisfied with the services a company offers will likely remain loyal and recommend the business to others, and this will further boost business growth and stability.
Measurement
This particular KPI can be measured via consistent customer surveys, and feedback forms, as well as evaluating the amount of returning customers as against new ones.
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Cost Per Ton of Waste Collected and Processed
This particular KPI is used to evaluate the total expenses accumulated as a result of collecting and processing one ton of waste.
Note that making sure that costs are under control while still guaranteeing top-grade service standards is important to ensure that the company can attain long-term and substantial success.
Aside from that, it will provide managers or operators with valid information about key business areas that need work to boost the company’s efficiency and limit expenses without impeding service quality.
Measurement
To measure this KPI, you will first have to divide the total operational costs by the total tons of waste collected and processed over a stipulated period.
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Recycling Contamination Rates
This KPI is used to note or rather calculate the percentage of non-recyclable materials mixed with recyclable materials. This particular KPI is very important because it helps to note high contamination rates, which means that entire batches of recyclable materials are being dumped or moved to landfills.
This in many ways negates the success of recycling efforts while also heightening expenses. Howbeit, by limiting contamination, waste management companies can better bolster the effectiveness of recycling programs and make sure that materials are appropriately processed.
Measurement
To note this KPI, you will have to evaluate the composition of collected recyclable materials and calculate the proportion of contaminants.
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Efficiency of Collection Routes
Note that this KPI works to evaluate the effectiveness of waste collection routes, most often in terms of fuel consumption as well as the time needed to complete routes. In this line of business, numerous benefits come with ensuring efficient collection routes.
This will work to limit fuel costs, ensure lower greenhouse gas emissions, as well as boost overall service delivery. Keep in mind that working to optimize these routes will give rise to substantial cost savings and environmental benefits.
Measurement
To measure this KPI, you will have to track fuel consumption, distance covered, as well as time spent on collection routes. Once you do, put them in comparison to industry benchmarks or historical data.
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Regulatory Compliance
It is important to point out that this KPI is very pertinent especially when it comes to weighing the company’s level of compliance with environmental regulations, waste disposal laws, as well as relevant industry standards.
One of the valid reasons why business owners or operators are expected to take this KPI very seriously is because of the hefty fines, legal issues, or even damage to the company’s reputation that comes with the company’s inability to adhere to necessary regulations.
Making sure that the company is in line with all regulations is very vital to ensure legal operation and maintenance of public trust.
Measurement
This particular KPI is measured by the amount of regulatory violations, fines, and inspections the company scaled through without issues.
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Employee Safety Records
From the name alone, it is easy to understand how this KPI works as well as its importance to the growth and sustenance of the business.
Keep in mind that it evaluates and tracks the number and severity of workplace injuries as well as incidents among employees.
Every business owner or manager must guarantee employees’ safety, which is exceptionally important in waste management owing to the hazardous nature of the job. Maintaining a well-detailed safety record showcases the right training and a commitment to employee well-being.
Measurement
Note that these records are tracked by recording the number of incidents, lost workdays, and near-misses, and then evaluating trends over time.