Republic Services Inc. has reorganized its structure to streamline operations and is investing in its customer engagement.
The Phoenix-based Republic said it is combining two organizational layers into one, with the elimination of three of its regions, the consolidation of its 20 areas into 10 and the streamlining of select roles at its headquarters, according to a news release.
The waste and recycling giant also plans to invest about $20 million this year to design and implement its Customer Resource Centers and other customer-focused initiatives. It expects those initiatives to result in annual cost savings of about $10 million.
The company also anticipates annual cost savings of about $25 million from the organizational realignment. Republic expects to incur restructuring charges in 2016 of $35 million.
"The organizational improvements … further strengthen our customer focus by investing in resources closer to the customer. This streamlined structure will allow our local teams to be more nimble and effective in serving our customers and differentiating our product offering across the country," said Donald Slager, Republic president and CEO.
In the realignment of its field support functions, Republic will reinvest and deploy resources into its area offices with an enhanced team of operators and functional support roles. The area teams will be the resource centers for the company’s 165 business units that serve customers in 240 markets.
Republic also will consolidate its call center operations during the next two years, transforming more than 100 customer service locations into three Customer Resource Centers. New facilities and technology will allow the company to provide better customer service in means such as voice, e-mail, text, social channels and others, the company said.
"The approach we are taking to execute our company strategy of profitable growth through differentiation centers around consistently delivering the highest level of customer service–one that offers a differentiated experience of easy solutions, reliability and environmental responsibility while successfully balancing our commitment to creating long-term shareholder value,” Slager said. “The initiatives and realignment of our organization will improve our performance in meeting these objectives."
Leone Young in her latest Business Insights column for Waste360 wrote in part about Republic’s sustainability emphasis as part of its business model. The company is focusing on three main areas–recycling, fleet emissions and the use of landfill gas-to-energy (LFGTE) technology at its landfills to generate renewable energy–as part of its “Blue Planet” sustainability initiative. The company is focused on reducing its carbon footprint and advancing recycling education.
Meanwhile, another of the industry’s biggest haulers, Vaughan, Ontario-based Progressive Waste Solutions Ltd., earlier this month announced that it is reviewing its strategic alternatives, after a Bloomberg report claimed the company is exploring a sale after cutting its profit forecast because of rising costs.