Right-Size Waste to Deliver Bottom-Line SavingsApril 3, 2014

Presenters: Cynthia Forsch, Program Manager, Waste Solutions with Ecova and Dana Yacavace, Project Manager, Energy & Sustainability with Staples Inc

Agenda

Challenges & opportunities

Client story: Staples inc

Tips to implement right-sizing

Upcoming webinars

Q&A

Challenges and Opportunities

Organizational goals and objectives

Cost savings and improved environmental performance

Centralized approach

Ongoing management

What is Active Service Management?

Service optimization through right-sizing

– Maximizing the value of waste services

– Minimizing extra pickups

Why Right-Size?

Savings from Right-Sizing Example:

– Cost of Waste: $1,000,000

– 10% Savings Typical

– $100,000

Savings goes to the Bottom-Line

− If company profit margin is 1%...

− It would take $10,000,000 in sales to add this same amount

Key Takeaway: There’s Money in Your Trash!

Company Overview

STAPLES VISION

Continued focus on sourcing more sustainable products

Improving our offering of recycling and other green services

Maximizing our energy efficiency and renewable energy use

ELIMINATING WASTE

Waste Program Overview

This year, Staples again saw a decrease in our total waste generation in the U.S.

– The percentage of waste that goes to landfill compared to incinerator is approximately the same as in earlier years

Program Review

Staples launched a Lean Six Sigma Black Belt project in late 2009 to evaluate all sources of waste in our U.S. retail stores

The study involved monitoring, photographing, surveying, and measuring the retail stores Waste and Recycling make-up

Monthly - (OCC) Cardboard 3-4 bales which on average weigh 2400-2500lbs total

Monthly - One Mixed Paper Gaylord on average weighing 400lbs

Monthly - (LDPE) Stretch Wrap 4-6 55 Gallon bags weighing 60lbs total

Implementation Requirements

Voice of the Customer/Business(what is desired?)

Key Customer/Business Issue(s)(what current issues prevent delivery of

desired state?)

Critical Customer Requirements(what specific/measurable requirements need

to improve?)

STORE ASSOCIATES

Easy & efficient process

No additional fees

Standardization

Dispose trash easily, safely, neatly

Educate: what goes into waste stream

Adherence to policy & procedures

Easily: right equipment

Safely: accident free

Assign responsibility

Understand impact of additional pick-ups (charges)

CORPORATE

Minimize waste

Eliminate contaminants from waste stream

Reduce additional fees

What is being disposed of?

Why are there additional pick-ups?

Reasons for costs outside of the contract

Illegal dumping

Minimize waste stream by 10%

Maximize recycling by 10%

Eliminate contaminants/hazmat

Receive immediate updates on additional charges

VENDOR Communication to stores

Education

Timely feedback on additional pickups /additional charges

Reporting effectiveness

Timely

Clear

The Staples/Ecova Partnership

You can’t start without DATA

Staples revisited and refreshed the program in 2013 with Ecova

Staples knew they had an opportunity to right-size

Ecova provided data & analysis to make recommendations

Team Effort to implement

Results

Waste expense – reduction of 10%

Recycling – improve diversion rate by 5%

Avoided disposal costs – parallels increase in recycling diversion rate (based on recycling volume compared to current waste disposal cost per ton; nearly 2x our waste budget was diverted through recycling in 2013)

Future plans

Vision

Zero Waste

Focus areas

All facilities

Goals for 2014 and beyond

Globally reduce the amount of waste we send to landfills

Getting Started

Gather data – current volume, bin size, pick-up frequency

Evaluate against operational metric – sales, customer count, etc

Develop baseline and identify outliers

Factors to consider before implementing changes

Review Outliers

Active Service Management is a Continuous Process

Collect production units and analyze service levels for opportunities

Negotiate new service levels with better pricing

Monitor bills and ensure promised savings are realized

Upcoming Webinars

INSIDE ENERGY & SUSTAINABILITY

3 Steps to Mitigate the Rising Tide of Water Costs – April 15th at 1pm Pacific

The Ecova Blueprint: Exploring the Infrastructure Keystone with Arby’s Restaurant Group – April 17th at 11am Pacific

Questions, comments, suggestions? webinars@ecova.com

Q&A

Thank you!