Recycling Program Setup
Use this checklist to stand up a pallet and packaging recycling program quickly. Most programs pay for themselves within 90 days.
Inventory waste streams
Survey each site for pallet/packaging waste by material type and volume. Use the 3-phase audit methodology below.
Set pickup cadence
Define daily or weekly pickup schedules. Document dock access windows, contact info, and staging requirements.
Define revenue model
Negotiate revenue-share vs haul-away pricing for each material category. See model comparison below.
Collect documentation
Request certificates and scale tickets from recyclers for ESG reporting and chain of custody.
Deploy signage
Roll out point-of-generation sorting bins and clear labeling at each dock.
Phase 1: Planning
- Identify all facilities and prioritize by volume (start with highest waste generators)
- Request 3 months of waste hauling invoices from each facility
- Schedule audit visits during peak operations for representative data
- Assign audit lead and notify facility managers 1 week in advance
Phase 2: On-Site Assessment
- Walk all dock doors, staging areas, and outdoor storage
| Grade | Description | Disposition | Value |
|---|---|---|---|
| A | Like new. No repairs, stains, or damage. | Resell as-is. Highest value. | $6-$10 per pallet |
| B | Good condition. Minor wear, 1-2 minor repairs acceptable. | Resell with inspection. Core recycling inventory. | $3-$6 per pallet |
| C | Fair. Needs repair — cracked stringer, missing boards. | Repair and resell, or sell to repair shops at discount. | $1-$3 per pallet |
| D | Scrap. Broken beyond repair, contaminated, or non-standard. | Grind for mulch, animal bedding, or biomass fuel. | $0 (grinding value only) |
| Material | Action | Avg Value |
|---|---|---|
| Wood pallets | Grade → repair, resell, or chip | $3-$8/pallet |
| Corrugated | Bale and sell to mills | $40-$120/ton |
| Plastic wrap | Compact, bale, recycle (clean only) | $0.02-$0.08/lb |
| Metal bands | Collect in drums, sell as scrap | $80-$200/ton |
| Gaylord boxes | Reuse (2-5 trips) or recycle as OCC | $3-$8/box (reuse) |
| IBC totes | Clean and resell, or recycle plastic/metal | $30-$80/tote (reuse) |
Revenue Share
Recycler sells recovered materials and shares a percentage of proceeds with you.
Pros: Upside when commodity prices rise. Aligns recycler incentives with material quality.
Cons: Revenue fluctuates with market. Lower guaranteed income. Need to track commodity prices.
Best for: High-volume sites (500+ pallets/mo) with clean, consistent material streams.
Flat Rate per Pickup
Fixed fee per pickup regardless of material value. May be a cost or a rebate depending on volume.
Pros: Predictable budgeting. Simple accounting. No commodity price exposure.
Cons: Miss upside in strong markets. May overpay when volumes are low.
Best for: Sites with moderate volumes or mixed-quality materials.
Haul-Away (Cost)
You pay the recycler to remove materials. Common for low-value or contaminated streams.
Pros: Still cheaper than landfill. Provides diversion documentation for ESG.
Cons: No revenue. Need to minimize contamination to avoid premium pricing.
Best for: Low-volume sites, scrap-only materials, or high-contamination environments.
Tiered / Combo
Volume Thresholds
Most recyclers require minimum pickup volumes. Typical: 1 full trailer (24-30 pallets) or 1 roll-off container. Below minimums? Consolidate across nearby sites or accumulate to threshold.
Dock Access
Document dock door dimensions, height restrictions, turn radius for 53-ft trailers. Identify staging areas accessible by forklift. Note hours of operation and appointment requirements.
Staging Area
Designate dedicated space for each material stream. Pallets should be stacked by grade, corrugated baled or bundled, wrap compacted. Separate from inbound receiving to avoid confusion.
Contact Protocol
Assign primary and backup contacts per site. Establish communication method (email, phone, app) for pickup scheduling, no-shows, and quality issues. Response time SLA: within 4 hours.
Seasonal Adjustments
Volume spikes during peak seasons (Q4 retail, summer food/bev). Pre-negotiate surge capacity with recycler. Consider temporary additional staging or more frequent pickups.
Train staff on what does NOT go in recycling: food waste, chemicals, painted/treated wood, wax-coated corrugated
Post visual sorting guides with photos of acceptable vs rejected materials at every staging area
Conduct weekly spot checks during the first 90 days — inspect 10% of staged material before pickup
Track rejection rates by site and shift to identify problem areas
Target contamination rate below 5% for optimal rebates — above 10% typically triggers haul-away pricing
Address contamination at the source: if dock 3 consistently has issues, retrain that shift
| Metric | Formula | Target | Frequency |
|---|---|---|---|
| Diversion Rate | Tons diverted / Total tons generated × 100 | > 70% within 6 months | Monthly |
| Revenue per Ton | Total rebates / Total tons diverted | Varies by material — track trend, not absolute | Monthly |
| Rejection Rate | Rejected tons / Total tons collected × 100 | < 5% | Weekly |
| Cost Avoidance | (Old disposal cost) - (New program net cost) | Positive within 90 days | Monthly |
| Pickup Adherence | On-time pickups / Scheduled pickups × 100 | > 95% |
No dedicated champion
Program loses momentum after 30 days. Sorting degrades, contamination rises.
Prevention: Assign one person per shift as recycling lead. Include in performance reviews.
Skipping the audit
Wrong vendor selected, wrong pricing model, unrealistic projections.
Prevention: Always audit before launching. Even a 1-hour walkthrough provides critical baseline data.
Single-vendor dependency
Vendor raises prices or reduces service with no alternative.
Prevention: Get quotes from 2-3 vendors initially. Maintain backup relationship even if not active.
No contamination tracking
Recycler downgrades pricing or switches to haul-away without warning.
Prevention: Track rejection rates weekly. Address source contamination within 48 hours.
Ignoring seasonal volume swings
Overflow during peaks, underutilized containers during lows.
Prevention: Build seasonal adjustment clauses into vendor contracts. Pre-plan Q4 surge capacity.
Not sharing results with team
Dock staff sees no impact from effort, engagement drops.
Prevention: Post monthly savings and diversion data. Celebrate milestones (e.g., "100 tons diverted").
1 Site
Months 1-3Prove the model. Establish processes, vendor relationship, and baseline KPIs.
Key actions: Audit, vendor selection, launch, 90-day review
2-5 Sites
Months 4-9Standardize and optimize. Roll out proven playbook to similar facilities.
Key actions: Template SOPs, consolidate vendor relationships, centralize reporting
5+ Sites
Months 10-18Scale and leverage. Negotiate enterprise pricing, automate reporting, benchmark sites.
Key actions: Master service agreement, site scorecards, quarterly business reviews with vendor
Waste hauling invoices (3-month average)
Waste audit counts and weights
Vendor quotes or market indices
Vendor proposals + internal estimates
Audit findings + vendor capability
ROI Formula: ((Old disposal cost - New net program cost) / New net program cost) x 100
Target: Positive ROI within 90 days. Typical programs see 150-400% first-year ROI.
| Criterion | Weight | Detail |
|---|---|---|
| Geographic coverage | 20% | Can serve all current and planned sites. Response time for new facility onboarding. |
| Material capabilities | 20% | Handles all your waste streams (wood, corrugated, plastic, metal). Single-vendor simplicity. |
| Pricing competitiveness | 20% | Net cost or revenue per ton across all materials. Include hidden fees (fuel surcharges, contamination penalties). |
| Reporting & documentation | 15% | Provides scale tickets, diversion certificates, monthly summaries. Portal or API access preferred. |
| Service reliability | 15% | On-time pickup rate, backup plan for missed pickups, holiday coverage, communication responsiveness. |
| Sustainability credentials | 10% | Downstream processing transparency. Certifications (R2, e-Stewards). No export to non-regulated markets. |
• Assign one person per shift as the recycling champion
• Track contamination rates weekly—target <5% for optimal rebates
• Share monthly savings with team to maintain engagement
• Photograph loads before pickup to resolve any quality disputes
• Renegotiate pricing annually using your volume and quality data as leverage
Share locations and volumes and we'll launch a managed program with pickups, reporting, and rebate optimization.
