Provide awareness to the industry regarding non- mobile assets Our industry focuses on mobile assets (trucks) and people and rightly so… We know how many.

Objective

Provide awareness to the industry regarding non-mobile assets

Our industry focuses on mobile assets (trucks) and people and rightly so… We know how many we have , We know where they are, We know their condition

However, very few can claim this for non mobile assets

Asset Value Comparison

Value of Frontload Containers Per Route: $200K Value of Front Load Truck to Collect Route: $300K

Value of Containers Per Route: $250K Value of Side Load Truck to Collect Route: $325K

Value of Containers Per Route: $200KValue of Roll-off Truck to Collect Route: $200K

Management of Non-mobile Assets

How much capital is involved?

What does it affect?

Can we do anything about it?

The business objective is to maximize your capital assets – are they effectively working for you?

Non-mobile Assets

The purchase value of roll-offs, commercial containers and residential carts in North America

$$$

$$$$30

Billion

Capital Asset Breakdown

Estimated Number of Roll-off Boxes• >1MM within top 100 haulers (Estimated Value of $4 Billion)• Do you know how many you have and do they match your billable

accounts?

Estimated Number of Commercial Containers• Estimate >4MM within top 100 haulers (Estimated Value of $21

Billion) • Do you know how many you have and does the size match up to your

billables?

Estimated Number of Roll-out Carts• Estimate > 100 MM in the industry (Estimated Value of $5.0 Billion)• Do you know how many you have and do they match your billable

accounts?

Do you care about…..

Then…you should care about managing your non-mobile assets

Free Cash Flow (Cap Ex)?

Customer Service

Standards?

Operational Expenses and OT?

The Effect

The Problem

The Effect

Capital Loss & Poor Capital Utilization

Decreased Efficiencies

Poor Customer Satisfaction (Customer Loss)

Overall Increase in Operational Costs

No Reconciliation Process

Limited Visibility of Assets(Type, Status& Location)

Manual Processes with Poor Accuracy

Areas of the Business Impacted

Customer Service Standards

-Poor Customer Satisfaction

-Lost business- Increased Admin

time-False info resulting

in poor decisions

Capital Expenditures

- Over purchasing unnecessary assets

-Assets not “working “ for you -Estimated 1% - 5%

of non-mobile assets “lost” or

“stolen”

Operations-Lost revenue ,

incorrect size on billing record

-Increased time to manually inventory

assets-Resource allocation challenges-OT Hours

These Categories can be quantified and monetized for

your operation

Related Quotes – Customer Service

“The call center has no idea on what container is available and where it is available”

“We are sending out dirty or broken containers”

“We have many customers that call for temp roll-off with a delivery guarantee and

since we can’t confirm a delivery, they hang up and go to our competitors”

“We are getting requests for same day delivery and turning them down”

Definition of a “lost” asset

A “lost” or “stolen” asset is an asset that is no longer

working for you or doesn’t have the potential to work for you (not in inventory). But, it may be working for someone else (your customer “on your

dime” or competitor)!

Servicing Non Paying Accounts

o Contributing Factors: • No system to Reconcile Assets to Billable Accounts• No system to proactively track inventory levels• No visibility of asset condition and/or location

o Commercial Container Example: • ~3% of accounts are incorrectly billed for service (customer has larger container compared to billing record)

o Impact on Business:• Represents an average industry annual revenue loss of $28.8MM (average rate variance of $20 per size) • Increased one-time industry capital cost of $18MM (average of $150 cost variance per size) • Combined $46.8 MM impact on industry in this category

Costs Associated with the Problem

Capital Losso Contributing Factors:

• Limited Labor Focused on Managing Assets• No Service Verification Tied to the Asset• Inefficient Systems and Processes for Retrieving Assets on Collection Day• Stash Yards (specific to roll-off)

o Roll-out Cart Example: • Estimated that 2 % are “lost” annually (higher percentages in subscription markets ~5%)

o Impact on Business:• Represents an average industry annual capital loss of $100MM in the world of residential carts

What can you do about it?

Level 1: Reconcile Your Non-Mobile Assets

Every asset you purchase should have a purpose – it should be “working” for you

should fall into a bucket

Generating revenue at a new account

Replacing a retired asset that is generating revenue

– i.e.. Container that is damaged and beyond

warranty

Generating revenue as additional service at existing account

Replacing a “lost” or “stolen” asset

Level 2: What can be done?

Summary

» For Collection Operations, non-mobile assets are a large part of your asset base

» You can’t afford to mismanage non-mobile assets, it affects all parts of your business

» With the proper asset management system, you can measure the productivity of non-mobile assets