What a Load of Garbage

Cleanaway Waste Management, a leading ASX-listed waste management company, has hit the halfway mark in its ambitious $100 million IT and digital transformation initiative, known as CustomerConnect. Launched in 2022, this four-year program aims to overhaul the company’s IT infrastructure, digitise critical processes, and harness the power of data analytics to optimise operations and enhance customer experiences.

Progress and Achievements

During the recent FY24 results call, CEO and Managing Director Mark Schubert announced that CustomerConnect has completed the first two releases on schedule and within budget. The program is designed to streamline Cleanaway's 'call-to-cash' process—essentially the entire workflow from customer inquiry to payment—enabling greater efficiency and laying the groundwork for advanced analytics and artificial intelligence (AI) initiatives.

Schubert emphasised that the transformation is already delivering value, with the program expected to generate over $5 million in earnings before interest and taxation (EBIT) by FY26, and more than double that in FY27. The full completion of CustomerConnect is anticipated by the end of FY26.

What does $25m per year give us and how does this affect (you and I) the ratepayers?

The digital transformation at Cleanaway, including the CustomerConnect initiative and other data-driven projects, has several potential impacts on ratepayers:

1. Improved Service Quality

• Efficiency Gains: By digitising and automating the 'call-to-cash' process, Cleanaway is streamlining operations, which can lead to more reliable and timely waste management services. This might result in fewer service disruptions and quicker resolution of issues, benefiting ratepayers directly.
• Enhanced Customer Experience: With the new systems in place, customers (including ratepayers) may experience better communication, easier billing processes, and faster responses to inquiries and complaints. This could make interactions with Cleanaway more convenient and less frustrating.

2. Potential Cost Implications

• Operational Cost Savings: Cleanaway’s use of data analytics to optimise routes and fleet management could lead to cost savings. In the long term, these savings might be passed on to ratepayers in the form of stable or reduced service fees.
• Strategic Pricing Adjustments: The company's ability to implement data-driven, differential pricing across its customer base could lead to more precise pricing strategies. 

3. Increased Accountability and Transparency

• Data-Driven Decision Making: As Cleanaway uses data to make informed decisions, there could be greater transparency in how services are priced and managed. Ratepayers might have more access to detailed information on how their fees are calculated and what services they receive, leading to better accountability.

4. Long-Term Benefits

• Sustainability: By optimising fleet management and other operations, Cleanaway is likely reducing its environmental footprint. Ratepayers might appreciate the environmental benefits of a more efficient waste management system, contributing to broader sustainability goals within their communities.
• Innovation and Future-Proofing: The adoption of advanced technologies and AI means that Cleanaway is positioning itself to handle future challenges more effectively. This forward-thinking approach could ensure that ratepayers continue to receive high-quality waste management services without major disruptions as technology and industry demands evolve.

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