Managing invoices under the best of circumstances can be challenging. Waste and recycling services invoices frequently contain multiple line items for separate services which can create even more difficulty. Knowing what constitutes a legitimate charge and what does not is important. With landfill costs increasing and transportation costs going higher, it is easy to see why invoice auditing is more important than ever.
How Can Cumberland Recycling Help with Invoice Audits?
A second set of eyes, knowledgeable in the waste and recycling business can be helpful. Experience reviewing invoices and spotting errors can make a significant difference in an annual waste and recycling budget. Mistakes in data entry, corrupted spreadsheet cells and basic calculation errors can all lead to costly overpayments.
Cumberland Recycling has the resources and experience to spot inconsistencies. If these are not addressed immediately, it can change the rates your company pays for services. We encourage you to read your waste contract carefully. This includes any clauses that address rates, escalation, or rate changes.
Examples of Invoice Auditing to Spot Inconsistencies:
● New recycling equipment was negotiated and installed at a distribution center by an EHS manager who retired before the installation was complete. Eleven months later it was discovered that two numbers had been transposed and $580.75 per month became $850.75 per month. We were able to recover the entirety of the overpayment for the client.
● A compactor was hauled three times weekly for nearly five years and was never adjusted despite a significant reduction in the waste volume two years into the contract costing the plant a 30% premium for (unnecessary) transportation for the remaining three years. These expenses were not recoverable, but we were able to “stop the bleeding” by reducing service levels to reflect current waste volumes.
● A large manufacturing facility used multiple dumpsters throughout its campus. Over a period of five to seven years, many of these containers were either consolidated or no longer needed. They were removed while the plant unknowingly continued to pay for the original volume, including rate escalators. A partial refund and a preferred rate combined with a series of controls were negotiated with the vendor to ensure proper services and charges.
● In our final example, a contract for services was negotiated that eliminated frequent practice price increases without 30-days advance notice. Because the client wisely sub-contracted management of their waste and recycling invoices, an annual price increase was identified. It was called to the vendor’s attention and reversed immediately.
Waste services are often treated as a cost of doing business. But they do not need to be any higher than necessary. In our experience, it’s rare that organizations monitor those costs or review and right-size services to reflect changed or reduced requirements. Contact Cumberland Recycling to learn how we can help you manage these costs.