BUSINESS TO BUSINESS: SOLID WASTE MANAGEMENT

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BUSINESS TO BUSINESSSOLID WASTE MANAGEMENT

• Presented By
• Wilson Lau
• Kanyi Masembwa
• Sainath Nagarajan
• Jeff Pany
• Juan Pulgarin

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Solid Waste Management
Nuclear Bomb Parts Litter Kentucky
Plant(February 11, 2000 The Washington
Post) Cyanide spill pours across border into
Yugoslavia (February 13, 2000 www.cnn.com) We
can use technology, innovation and business
practices to create value for shareholders in
industries fraught with illegal and unethical
practices. (earthcareus.com)
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Industry Overview

• Solid waste management is an integral component
  of heavy and large manufacturing industries
  dealing with safe disposal and reuse of wastes
• The Environment Protection Agency (EPA) defines
  the solid waste management process as
• Public Education and Involvement ? Facility
  Sitting and Permitting ? Develop and Waste
  Management Program ? Collection and Transfer ?
  Source Reduction ? Recycling ? Composting ?
  Combustion ? Land Disposal
• Within the industry there are very few large
  players, each of which focuses on some portion of
  this process. Companies generally fall into
  three categories
• Solid waste management equipment
• Solid waste processing
• Solid waste management consulting services
• The industry is characterized by
• High degree of fragmentation
• Highly cyclical or unpredictable supply and
  demand
• Multiple distribution steps

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Solid Waste Policy Issues

• The solid waste industry is heavily regulated by
  the EPA
• The EPA oversees all solid waste management
  legislation. The EPAs Office of Solid Wastes
  (OSW) mission
• "The Office of Solid Waste operates under
  authority of the Resource Conservation and
  Recovery Act. We protect human health and the
  environment by ensuring responsible national
  management of hazardous and nonhazardous waste.
  Our goals are
• to conserve resources by reducing waste
• to prevent future waste disposal problems by
  writing result-oriented regulations and
• to clean up areas where waste may have spilled,
  leaked, or been improperly disposed. Individual
  states adopt federal standards and operate their
  own waste management programs.
• Besides states, OSW works closely with
  industry,
• environmental groups, tribes, and the
  concerned public to
• promote safe waste management. "

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Solid Waste Online?

• REASONS FOR INDUSTRY TO MOVE ONLINE
• Legal Issues Mandated levels for recycling
  continued to rise, and many jurisdictions have
  found themselves in a no-win situation, being
  forced to pay more for the recycling of waste
  than the disposal of it, often only to see those
  recyclables get dumped in landfills anyway. "
  Wasteinfo.com
• Costs Each ton of waste recycled cost the city
  295 in 1997 and 625 in 1996, and the majority
  of the waste ended up in landfills regardless. "
  - For the city of Augusta, Georgia home of the
  Masters Tournament
• ? ROLE OF B2B ECOMMERCE
• SCOPE for better business processes to manage
  solid waste
• Reduce Cost
• Integration with manufacturing and supply chain
• Increase transactional efficiencies
• Facilitate online tracking
• Facilitate relationship management
• Remedies inefficiencies in industry
• Reshape supply chains (weeds out fragmentation)
• Smoothens industry volatility

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Major Industry Players

• Vertical Portals
• www.solidwaste.com
• www.swana.com
• Solid waste management equipment
• Hi-Rise Recycling Systems
• MotorVac
• Waste Connections
• Solid waste processing
• Barringer Labs
• Casella
• Safety-Kleen
• Waste Industries
• Waste Management
• Solid waste management consulting services
• Industrial Services of America
• Roy F. Weston, Inc.
• (Note Major players were largely
  determined by an article found at
  www.wasteinfo.com, http//biz.yahoo.com/prnews/00
  0119/ny_wall_st_1.html, as well as company 1998
  revenues)

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Sample Front Pages Approaches

• Demonstrates actual services offered and
  presents brand image of the company

• Focuses on information and services that are
  available on the site

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How Do Solid Waste Companies Attract Businesses

• Mainly through forming relationships with company
  executives/decision makers
• Presence on information portals, marketplaces
• Direct contact between individual partners
• Campaigning by word of mouth
• Advertising on sites such as verticalnet.com
• Raising awareness through community events (eg.
  Marathons with waste-ind.com)
• Establishing joint ventures and acquisitions
  (Industrial Service of America)

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Who Are Their Targeted Customers?

• Vertical Portals
• All industry players
• Waste management professionals
• Solid waste management equipment
• Local government contracts
• Commercial and industrial companies
• Homeowners associations
• Solid waste processing
• Environmental consulting engineering firms,
  hazardous and low level radioactive waste
  treatment/disposal companies, public utilities,
  industrial companies (including mining companies)
  and various Federal, state and local government
  agencies.
• (barringer-labs.com)
• Solid waste management consulting service
• Industrial and government
• Other solid waste processing firms

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Advantages For Sellers To Be Online

• Provides broad access to diverse locations
• Improve inter-company communications/coordination
• Central source for regulatory and technical
  expertise
• Increases volume of transactions by making
  services available to customers 24/7
• Reduces transactional costs while expanding their
  business and customer base
• Streamlines many business processes related to
  taking orders
• Attains thorough customer profile
• Reduces time spent with customers by offering a
  forum to with thorough procedural documentation
• Supports disintermediation

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Value Chain
Online Portals
Sell Waste Online Auction
Manage their industrial waste
Waste Management Co.
Mfg Co.
Industrial Waste Buyer
Direct B2B Interaction
Aggregate Waste
Online Value Added Service
Cities
Waste Management Co.
Online B2B E Commerce Integration Point
Traditional Offline Integration Point
Potential for SCM Integration
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Advantages For Buyers To Be Online

• Customized account and service information
• Availability Data is available 24 hours a day,
  7 days a week
• Accessibility Data can be viewed or downloaded
  from anywhere in the world where you have access
  to the Internet
• Secure Access to your data files is
  accomplished through a username/password
  combination. Only the client and seller have
  knowledge of this information
• Faster Response Electronic results are
  generally available the day the deliverable is
  completed at the lab
• Easy Setup You do nothing but acquire an
  account and password
• (www.barringer-labs.com)

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How Do Companies Retain Customers Online?

• Provide account information online and allow the
  customer to update this information
• Faster response time (e.g. www.wcnx.org
  guarantees response within 1 hour)
• Inform customers about company performances
  through newsletters and monthly reports
• Provide easy channel for post-transaction
  communication (e.g. e-mail)
• Provide customized services (e.g. Waste
  Management)

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Industry Trends

• Most sites are just now starting to develop an
  online presence (e.g.. alliedwaste.com)
• Mergers and acquisitions are consolidating the
  industry
• Many domestic companies are expanding
  internationally (e.g.. barringer-labs.com)
• Legislation is enforcing more strict recycling
  processes
• Most companies constantly research to improve
  solid waste treatment (e.g.. earthcareus.com)

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Recommendations

• Form partnerships with industry specific portals
  that will generate solid waste (e.g..
  metalsite.net, chemdex.com, etc.)
• Integrate waste management with MRP systems
• Provide an overview of the transaction process
  online
• Many sites require registration before you can
  see how you would conduct an online transaction
• Set up permission marketing so that regular
  transactions can be streamlined
• Achieve critical mass by exploiting network
  externalities
• Bundle waste management services with the raw
  materials or semi-products