Logistics Waste Management: How Warehouses Can Cut Costs and Boost Sustainability

Every package delivered begins with a warehouse, a pallet, and a system designed for efficiency. But behind the scenes of smooth logistics operations lies a challenge that costs companies more than they realise: waste.

From mountains of cardboard and plastic wrap to discarded pallets and general rubbish, warehouses and distribution centres are some of Australia’s biggest waste generators. Worse still, much of it heads straight to landfill, driving up disposal costs and inflating a company’s carbon footprint.

The reality? Waste is one of the last hidden inefficiencies in logistics. With the right systems, businesses can transform waste from a cost centre into a source of savings and sustainability gains.

Why Waste Management Matters in Logistics

Packaging-heavy operations – Cardboard, plastics, and pallets dominate warehouse waste streams.
Tight margins – Any unnecessary expense directly impacts profitability.
Customer expectations – Major retailers and manufacturers demand ESG performance from logistics partners.
Multi-site complexity – Different depots often run different waste providers, creating duplication and inconsistency.
Regulatory pressure – Landfill levies and environmental compliance are becoming stricter.

Smarter logistics waste management = reduced costs, simpler operations, and stronger sustainability reporting.

The Biggest Waste Streams in Warehousing & Distribution Centres

Cardboard & Paper – Packaging boxes, cartons, and excess shipping material.
Plastics – Shrink wrap, strapping, and pallet wrap.
Wood Waste – Broken pallets, crates, and timber.
General Waste – Contamination from food, mixed rubbish, and non-recyclables.
Hazardous Waste – Oils, batteries, and chemicals from fleet maintenance or warehouse cleaning.

Strategies to Reduce Waste Costs in Logistics

Distribution centres are designed for efficiency and that efficiency should extend to waste management.

1. Cardboard Balers and Compactors

Installing a baler reduces cardboard volume by up to 90%, cutting collection frequency and creating revenue opportunities through recycling rebates.

2. Plastic Recycling Programs

Separate shrink wrap and strapping from general waste to lower contamination and landfill costs.

3. Pallet Reuse and Recovery

Work with pallet recovery services to reuse or recycle timber pallets. Many can be repaired and put back into circulation.

4. Smart Collection Scheduling

Optimise bin sizes and pickup frequencies. Collections based on volume, not habit, reduce costs significantly.

5. Waste Audits

Conducting a warehouse waste audit identifies where money is being lost and where recycling improvements can be made.

💡 Pro tip: Many warehouses reduce waste costs by 15–25% after implementing balers, better separation systems, and smart scheduling.

Boosting Recycling in Warehouses

Warehouse recycling works best when systems are simple and consistent across all sites.

Clear signage & bin systems – Reduce contamination by making separation obvious.
Dedicated glass, cardboard, and plastic streams – Keeps valuable recyclables clean.
Staff engagement & training – Teams on the floor are the first line of defence against contamination.
Cooking oil & hazardous waste recycling (for logistics sites with staff kitchens or workshops).
Reporting tools – Track recycling rates, landfill diversion, and environmental benefits.

The Sustainability Advantage

Logistics companies are under more pressure than ever to prove their ESG performance. Waste management is a critical piece of this puzzle.

Scope 3 emissions – Landfill waste increases a company’s reported carbon footprint.
Customer contracts – Many major retailers and FMCG suppliers now require evidence of sustainability efforts in logistics.
Investor & stakeholder confidence – Transparent reporting builds trust.
Brand reputation – Logistics providers that demonstrate strong environmental credentials are more competitive.

Waste reduction isn’t just about costs, it’s about securing contracts, winning tenders, and protecting your brand.

Quick Wins for Logistics Waste Management

Install balers or compactors to cut collection costs.
Separate pallets, cardboard, and plastics from general waste.
Conduct a waste audit at every distribution centre.
Standardise waste services across all depots for consistency.
Use reporting tools to track progress and sustainability gains.

In logistics, efficiency is everything and waste should be no exception. Smarter waste management helps warehouses and distribution centres cut costs, reduce landfill reliance, and improve sustainability performance.

Ready to take control of your logistics waste? Talk to us today about customised waste services for warehouses and distribution centres that deliver real savings and measurable ESG outcomes.

📞1300 729 922