The Procurement Challenge

From a procurement and sourcing perspective, the risk was that a rushed search for a new supplier could lock the client into another sub‑optimal waste management contract. The objective was not just to “plug the gap” but to use basic supplier discovery and RFQ‑style thinking to create a better commercial model, without running a full formal RFP or RFQ process.

The priorities were:

• Replace the incumbent provider quickly
• Maintain service continuity and avoid missed pickups
• Explore whether the scrap stream could generate rebates or revenue

Supplier discovery and sourcing approach

The team used a focused supplier discovery approach to find qualified partners. We first analyzed the scrap profile: monthly volume, typical weight per gaylord, storage capacity, and current pickup cadence. This helped frame the opportunity clearly when speaking with potential suppliers.

Next, we identified waste management and recycling providers who were active in the client’s region and had experience with paper scrap. The initial outreach was targeted with go no go questions and site visits rather than a formal RFI. Site visits were provided so suppliers could assess material quality, floor layout, loading access, and any constraints that might impact recurring pickups, and essentially total cost.

Concurrently we shared an RFQ including volume and logistics data, and the commercial requirements. Quotes were collected and evaluated with a procurement lens. Using the K2 Sourcing RFQ evaluation tools the team compared offers on key dimensions: rebate structures, freight charges, flexibility of pickup frequency, and contractual terms. This sourcing process gave the client a clear view of options and trade‑offs without overwhelming internal stakeholders.

The solution: from disposal cost to recycling revenue

The selected supplier offered a simple but powerful model. Instead of charging purely for disposal, they proposed a recycling‑based arrangement with a per‑ton rebate for the paper scrap collected. In addition, they agreed to waive freight charges if the client consolidated material and exceeded a defined weight threshold (10,000 lbs) per pickup.

To take advantage of this structure, the procurement team recommended operations adjust the pickup strategy. By stacking scrap and scheduling pickups every three months, this pushed them over the freight waiver threshold and would turn each pickup into a revenue‑positive event.

Unfortunately, space constraints did not allow for capturing full optimization, but with the rebate and payment structure in place they quickly found a new stable solution that reduced costs by 5%.  The opportunity to change the process to make a net zero costs is being investigated as a long-term solution.

It was a classic procurement optimization: small change in frequency, large change in economics.

Results: procurement, operations, and financial impact

The impact of this sourcing project was visible across procurement, operations, and finance:

• They transitioned suppliers with no operational disruption.
• The paper scrap stream shifted from a pure waste management expense to a green lower cost solution.
• The client has the opportunity to move from paying for paper recycling every three months to generating 140% cost to revenue shift over the same period.
• The business gained a repeatable sourcing model that can scale: as scrap volume grows, rebates increase while freight discounts continue.

For the client, this engagement started as a simple request to replace a waste management provider. With the right mix of supplier discovery, a structured RFQ process, and practical procurement execution, the outcome was much stronger: continuity of service, improved commercial terms, and a long-term revenue‑positive recycling program for paper scrap.