The UK waste industry is losing £189.6 million every year in wage costs due to “old-fashioned manual back office” processes and transactions, a new study has found.
The study by ISB Global, and co-sponsored by the Chartered Institution of Wastes Management (CIWM) , identified that outdated processes are responsible for data inaccuracies in waste management operational processes, which is undermining efficiency and causing “unnecessarily” high costs.
The focus group-based study of UK waste management professionals by ISB Global and CIWM found that 69% of respondents said more than a quarter of their day-to-day transactions are still conducted manually. The study concludes this translates to £189.6 million being spent on annual wage costs for manual transactions which could be automated.
The study also found that more than 25% of respondents do not use specialist waste management software – examples included using spreadsheets to plug operational data gaps.
Commenting on the study, Matthew Gawn, ISB Global’s Market Intelligence Officer, said: “What’s clear from these initial findings from the study is that waste and recycling companies need to transform the way their operations and business processes. Their current ways of working are costly, inefficient and can lead to inaccuracies in important operational data.
This important research can provide us with valuable insight into delivering a more efficient UK industry and attaining zero waste goals
Gawn continued that to properly manage regulatory and reporting obligations waste companies need to automate and digitise their operations and back-office processes. However, he warned that data transactions entered by hand are “unproductive” and risk “inaccuracies”.
He also said that what’s needed are “custom-made, dedicated” solutions and technologies and calls the current situation “completely unsustainable” from both a commercial and an environmental perspective.
Ray Parmenter, Head of Policy and Technical at the CIWM, commented: “On behalf of the CIWM, I am delighted to forge this relationship with ISB Global and develop a set of research activities to investigate the use and perception of software and digital technologies in the sector.
“This important research can provide us with valuable insight into delivering a more efficient UK industry and attaining zero waste goals through the use of these technologies.”
