Generator Case Study 2 – WASTELINQ Enterprise: Enlargin’ Gross Margin for a National Environmental Services Company

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June 2019

Studying gross margins at a granular level is one of the single most important steps toward increasing a business’s profitability. When a company is able to isolate which particular units make its system “go” – that is, when it is able to identify which of its clients generate the most revenue for the least direct cost – it is then able to make specific, real-time judgments that can either increase revenue or decrease primary costs. On the other side of the coin, when a company is unable to analyze its gross margins, it risks sacrificing a portion of its profits – or perhaps even operating at a loss.

While there are a number of tools designed to make gross margin analysis easier, most of those tools are not optimized to meet the needs of Environmental Service Companies (ESC). Indeed, gross margin visibility is particularly difficult to attain in the waste industry. One reason for this is that waste is not often handled through simple, one-to-one transactions. Different types of waste may require different packaging, different transportation, and different disposal options. Manifests can run to hundreds of lines, and standard accounting tools do not easily conform to matching revenues and costs on multi-line, multi-technology waste streams. This means that an ESC may be forced to jump through several different hoops to determine profitability even at the generator level, much less at the order line item level. ESCs have been known to cobble together databases, spreadsheets, and even sticky notes in hopes of determining line item profitability.

Fortunately for ESCs, WASTELINQ Enterprise is specially optimized for maximizing gross margin visibility in the waste industry. It does so by providing easy access to financial reporting and generator data. WASTELINQ allows for recording both revenue and cost data down to the level of individual order line items. WASTELINQ Enterprise automatically calculates gross margins, which can be reviewed at the line item level, at the order level, and at the generator level. This data is capable of revealing how much money is made per transaction as well as how much money is spent directly in generating this revenue.

Having only used WASTELINQ for six months, one large national ESC has already gained visibility into its gross margin at the order level and taken action to ensure appropriate pricing by replacing its manually driven, heuristic approach to order analysis with one of greater thoroughness and efficiency. Upon implementing WASTELINQ, the customer was able to identify and rectify underpriced waste streams, thus enabling the organization to recover gross margin loss. WASTELINQ’s “data integrity, ease of use, streamlining of processes” and its “tremendous” customer support were among the highlights of the user’s experience. WASTELINQ’s margin visibility has paid dividends for this service provider, who shared, “The software has really changed how we do business.”

Founded in 2017, WASTELINQ (an E4 Holdings Company) provides innovative technology solutions designed and tested by waste industry service experts to waste industry customers and service providers. Leveraging industry-specific technical expertise, WASTELINQ’s “service as a software” enables customers to utilize proven solutions that achieve both environmental and financial stewardship, maximizing the business value of responsible waste management strategy.

Created by Laura M | July 2, 2019 | Case Study