Innovative waste solution turns obsolete products into revenue, saving client $1 million
At a glance
GHD developed and implemented a waste minimization strategy for a major chemical manufacturer, transforming their slow-moving obsolete goods (SMOG) management from a cost burden into a revenue opportunity. The solution delivered over $1 million in first-year savings while promoting sustainability through material reuse.
The challenge
A leading petroleum-based chemical products manufacturer faced mounting challenges managing expired and unusable products across multiple "tolling" sites throughout the United States. With hundreds of materials valued at approximately $9 million requiring proper disposal, the client's environmental department struggled to handle the increasing backlog efficiently. The volume of materials had become too burdensome for internal teams to manage effectively, threatening to require additional staff hiring.
Traditional disposal methods were not only costly but also environmentally unfavorable. The diverse range of materials demanded specialized handling and disposal approaches, while complex regulatory requirements necessitated careful documentation and compliance monitoring. The client needed a strategic partner who could develop an innovative, cost-effective and sustainable solution that would reduce environmental impact while alleviating strain on their internal resources.
The increasing stockpile of materials across various locations created logistical challenges and rising storage costs. The client required a comprehensive system that could track materials, coordinate transportation and ensure proper documentation while identifying opportunities for material recovery and reuse.
Our response
GHD revolutionized the client's approach by implementing a sophisticated material management strategy centered on resource recovery rather than disposal. We developed a customized solution using GHD’s proprietary Navigator tool to track and evaluate materials, establishing clear key performance indicators and created a streamlined process for material assessment and disposition.
Our team performed detailed evaluations of each material, identifying opportunities for beneficial reuse and recycling. This included analyzing material specifications, safety data sheets and quality parameters to determine the most advantageous disposition options. By leveraging our extensive network of approved facilities, we secured environmentally responsible alternatives that transformed waste streams into valuable resources.
The comprehensive management system provided end-to-end oversight of the entire process, from initial material identification through final disposition. This included coordinating transportation, managing facility approvals, ensuring regulatory compliance and maintaining detailed documentation. The solution eliminated the need for additional staff hiring while providing complete assurance of proper material handling and regulatory compliance.
The impact
The innovative solution delivered remarkable results within the first year, generating over $1 million in savings through recycling revenue and eliminated disposal and storage costs. Beyond the financial benefits, the project significantly improved the client's sustainability performance by diverting materials from landfills to beneficial reuse applications.
The streamlined process freed up valuable staff resources, allowing the environmental team to focus on their core responsibilities. The scalable framework established through this project now serves as a model for new and ongoing waste and material management opportunities.
Most importantly, the project demonstrated how innovative thinking could transform environmental challenges into opportunities for both business and sustainability success. The client gained not only cost savings but also enhanced environmental performance and improved operational efficiency.