Dynamic Routing
Assembly Line
Waste Management Boosts Profit Margins By Rerouting and Replacing Trash Trucks
Waste Management is reaping the benefits of an ongoing effort to replace some of its trucks and reroute others in a more efficient manner.
The stronger margin is an example of recent technology investments bearing fruit. Waste Management last year began using software to create more efficient routes for drivers in its industrial business, where it picks up trash from dumpsters at construction sites. Industrial pickup locations are typically dispersed across cities, unlike residential or commercial routes, which are more condensed within neighborhoods. Waste Management’s software takes into account road conditions, vehicle-weight restrictions and factors such as bridges that trucks aren’t allowed to cross.
Nearly all of Waste Management’s industrial routes currently use its dynamic routing software. The company expects to deploy the same features in its residential and commercial businesses in the coming years, Rankin said.