When it comes to sustainability in manufacturing, waste reduction isn’t just about being environmentally responsible—it’s about increasing profitability. It is important to focus on energy and water savings, but the real financial impact lies in reducing waste in your facilities.
Waste = Lost Profit
At SSC, we conduct site visits for our clients where we analyze energy consumption, water usage, material losses, and packaging waste, all of which directly tie back to greenhouse gas emissions. While energy efficiency improvements can certainly lead to savings, the biggest financial opportunities are often found in material waste reduction.
We view waste as lost profit and that includes waste heat/energy/water; scrap product, waste raw materials, and support materials; packaging waste; and air and water emissions. Our philosophy is that any input that does not end up in the final product is “waste.”
For example, during a recent assessment, we identified several hundred thousand dollars in energy savings and minor reductions in water costs. However, the real eye-opener was the potential to save millions simply by optimizing waste management practices and engineering waste out of current processes.
A common issue we see is excessive packaging waste. In one case, 25% of a company’s cardboard recycling bale consisted of its own damaged packaging—materials that should have been going out the door with finished products. This kind of inefficiency translates directly into lost revenue.
The Power of Small Changes
One of the most rewarding aspects of waste reduction is how quickly companies can see the financial benefits. Even small, simple changes can add up to significant savings.
For instance, during an SSC waste assessment at an office building—not even a large-scale manufacturing site—we uncovered an easy $10,000 in annual savings. The company was paying for a half-empty dumpster to be hauled away regularly. By consolidating waste disposal and eliminating the unnecessary contract, they instantly cut costs without impacting operations.
Behavioral changes also play a huge role. In one case, an ISPA member company challenged each department to assess their own waste. The front office alone managed to reduce paper usage by 80% just by rethinking processes. This shift required no new technology or major investments—just a fresh perspective and a commitment to efficiency.
Standardized Procedures Prevent Waste
Another common issue is inconsistency in handling materials. On manufacturing floors, different employees may have different habits when it comes to cutting or discarding excess material. Establishing clear procedures and ensuring proper training can significantly reduce unnecessary waste.
When new personnel join, having structured guidelines in place ensures that waste management remains a priority. Education is key—helping employees understand how small adjustments in their daily tasks can lead to major cost savings for the company.
The Bottom Line
Waste reduction isn’t just about sustainability—it’s a smart financial strategy. By identifying inefficiencies, implementing behavioral changes, and standardizing processes, businesses can realize significant savings while also reducing their environmental impact.
The next time you assess your company’s operations, take a close look at what’s being thrown away. Chances are, there's money sitting in that dumpster.
Listen to the Full Podcast Episode
In the full podcast episode, Tad, Nicole, and Kate tackle the following questions:
What is corporate sustainability and why is it important?
How does sustainability relate to a person's company or job, even when it's not their main function?
What are Greenhouse Gas (GHG) emissions?
What the differences are between Scope 1, 2, and 3 emissions?
Why is it important to measure, understand, and reduce your emissions?
How does energy efficiency and waste reduction relate to sustainability?
What are some best practices to increase employee engagement in sustainability?
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About Kate Caddy
Kate is the Director of Sustainability at the International Sleep Products Association (ISPA).
She also serves as the Sustainability Manager at Mattress Recycling Council.