Digital Tracking System for Skip-Driven Waste & Recycling Operations
From a sample of 20 waste & recycling management companies across the UK, we have discovered a 50% disparity between system-recorded inventory data and tangible inventory in the physical world.
Why is this happening and how can you address this significant challenge? Let’s dive into the causes and solution:
What Causes Inventory Discrepancies?
Manual Data Entry Errors
The waste and recycling industry is fast-paced and extremely reactive. Daily schedules of skip-hire operators constantly change as colleagues react to inbound calls to collect or exchange skips. Capturing all of this data manually in the operating system is extremely challenging.
Over time, the system’s view of where skips are located becomes out of sync with the real world. Over time these manual data entry errors build up to serious discrepancy levels that exist across the industry.
This results in a decrease in skip visibility and an increased volume of slow-movers, harming both your operations & sales performance.
Skips Have No Identity
The vast majority of skips operating in the UK market do not have digital tracking.
Without digital tracking:
A job is booked onto the system with very precise data about the customer, the location, the waste stream to be collected and the type of skip to be provided. A specific vehicle & driver is scheduled to deliver the job.
The system assumes that there is a skip available, of the required type, and that this skip is actually delivered as part of the job. What your system can not do is assure that this has happened.
The individual skip is not recorded on-site. It is then impossible to determine exactly what was delivered, how long the skip has been on site or where and when it then travels to its onward destination.
The lack of digital tracking means you are reliant on assumptions. Capturing accurate data becomes a huge issue as you no longer have a real-time accurate view of inventory, delivery or location duration.
By applying digital tracking to your skips you have 100% data accuracy, with zero manual input required, 100% inventory accuracy, visibility of location & duration that can trigger collection or invoice. Combined, this will improve your operations, revenue streams & free up existing inventory to meet and increase customer demand.
Theft & Misplacement
Whilst skip theft is a problem, the much bigger issue is that waste and recycling operators lose track of where the skip was delivered in the first place. This results in an average 50% discrepancy between the actual inventory at the customer and the system’s understanding of it.
PIN comes in two broad configurations, one of which specifically identifies and tracks the movement of skips by unauthorised 3rd parties. By applying digital skip tracking to your inventory, you have a real-time view of 100% inventory accuracy and their locations.
How Do Skip Inventory Discrepancies Impact My Business?
Your operation isn’t what you think it is
The fast-paced, ever-changing nature of a skip-hire operation is difficult enough to manage without knowing exactly what the shape of your operation is. Your skips represent the business you have with your customers and each skip is a revenue stream which you want to have precise control of.
If there is a 50% discrepancy between the actual inventory at the customer and the system’s understanding of it, that directly impacts your revenue stream.
Slow Movers do not generate meaningful revenue
Our customer data shows that 35% of all skips at customer sites don’t get collected or exchanged for at least one month, often much longer. This means that around a third of your contract base is not generating any meaningful sales revenue at all.
Our new customers are always astonished by the slow movers data as it builds up in our platform. Only then does the true cost of the problem become clear.
What causes the problem?
Many of the skips aren’t visible to you, so you are unable to take action. If your customers don’t call you to schedule a collection, the skip stays on-site indefinitely.
You will only invoice your commercial customers on collection. This means you incurred the significant cost of buying the skip, and delivering it out to your customer but, not generating a penny of sales during this time.
By applying digital tracking to your skips you have 100% data accuracy, with zero manual input required, 100% inventory accuracy with visibility of its location & duration that can trigger a collection date or rental invoice.
Skip availability challenges
The slow-moving skips you can’t see means you are sending skips out to customers faster than you are collecting them. This results in running short of stock at your depots, unable to service other customers and take on new business.
Buying new skips you shouldn’t need
We estimate that the UK industry spends around £100 million every year buying new skips. Our customer data shows very clearly that there are more than enough skips already in the market to service existing demand. If only you could see them.
Based on the data PIN has to date, if all skips were digitally tracked, you increase skip capacity by 30% and eliminate unnecessary purchases for several years. This also has a very positive impact on your carbon footprint targets.
How to Bridge the 50% Discrepancy Gap: Introducing Your All-in-One Digital Tracking Solution for Skip Inventory Management
Not sure where to start? PIN provides a comprehensive, all-in-one solution:
Inventory Data Extraction: PIN assists you in extracting a download of your skip inventory across all locations in your system.
Thorough Site Visits: PIN’s expert fitters visit each site where your system indicates a skip is located. We aim to capture 85% of your total skip fleet during the initial visit.
PIN continues to monitor the sites your vehicles visit. This is to identify and capture skips that may not be visible in your system and ensures 100% accurate inventory.
Integrated Digital Skip & Vehicle Tracking
Skip Tracking: PIN’s expert fitters assign a unique digital identity to every skip. This unique digital identity enables traceability throughout the supply chain, enhancing visibility and control.
PIN tracks your skips and vehicles in real time: Providing you with a live, digital view of your operations.
Tracking Devices: Our low-power tracking devices are built for the rigours of the industry and have a 7-year battery life.
Automated Inventory Management: PIN’s digital tracking system automatically captures 100% skip locations and movement, with zero manual data entry required.
Every movement and job captured: Each vehicle journey, container movement, site visit and job is tracked in real-time.
Fully automated: PIN’s digital tracking technology works automatically with zero manual data input. Our visibility platform works alongside your operating system to deliver precise control and visibility of your operations.
Seamlessly delivered: Our experts work with you to locate every skip. Our fitters track the skips at depot and customer locations, quickly and efficiently, while avoiding any disruption to your existing operations.
Serialised, digital footprint: Each skip and vehicle is assigned a unique digital identity, enabling traceability throughout your supply chain.
Software built for the Waste Industry
Intuitive platform: Easy-to-navigate software with maps, reports and dashboards presenting your real-world operations.
Rules Engine: Smart geofences and algorithms to monitor and measure your activity with no customer data input.
Alerts and Actionable Insights: Route deviations, delays en-route and at the site are automatically alerted.
Single-click investigation: Oversee jobs and drivers via location maps and street-level routes.
KPI’s and Analytics: Trend data to measure operational performance and key metrics over time.
Full support: A dedicated Account Manager is always on hand to monitor your platform and address any queries.
Integration with Leading Operating Systems: PIN has built integrations with two of the industry’s leading operating systems, AMCS and PurGo.This provides our customers with a seamless, single view of operations.
Bespoke Integrations: If you have non-standard operating systems, we create the infrastructure to develop bespoke integrations. We work with you to understand your specific needs and requirements, tailoring the integration to align perfectly with your systems and processes.
Interested in finding out how digital skip and vehicle tracking could transform your business? Get started today by getting in touch with us to find out how digital skip tracking could transform your business operations. If you’re not quite convinced yet, then read our success stories to see how our clients are benefiting.
Paul has a 25 year career in technology and supply chain, spanning strategy, sales, marketing, M&A and product development. Passionate about the opportunity for new technology to transform traditional industry supply chains. Created PIN IoT to improve the waste industry.