1. CS3110 Pricing Contract Management
People and Technology
Creating a Better Environment

2. PPP Purpose Process Payoff
Ensure employees understand how pricing is set up in our system
Gain understanding of expectations
Process
Communicate and highlight key points associated with contract pricing implementation and set up
Payoff
Employees gain a high level understanding of how contract pricing is established in our systems and the importance of it being set up as detailed as possible to ensure proper invoicing and timely payment for the services we provide

3. Meeting Objectives What is contract pricing? Why is it needed?
What happens if not set up correctly?
Levels of contract pricing (Service Types)
What is needed to set up contract pricing?
What is the process for new contract pricing?
Review of Contract Pricing Submittal Form
Adding new pricing to existing contract
Unexpiring Contracts

4. What is Contract Pricing?
Central data platform for housing customer specific pricing
Contains all current pricing for drum and lab pack disposal rates
Contains all current pricing for labor rates
Contains all current pricing for misc. rates
Supplies, Equipment, fees, etc.
Note – Transportation pricing is managed generator specific locally through the drum trans system in WinWeb. Bulk and Direct ship pricing is managed profile specific via the WinWeb system
“Clean Harbors has just celebrated its 22nd year in business. It was founded in 1980 by Alan McKim during a time when environmental regulations at the federal and state level were beginning to have a big impact on the operations of many industries.”
“Today, in an era where many companies in the environmental industry have changed owners or managers, Mr. McKim continues to lead our company as President, Chief Executive Officer and Chairman of the Board.”
“Clean Harbors is a publicly traded company.” We went public in 1987 and our stock is traded on the NASDAQ exchange. Revenues for our company have grown throughout the years and in 2001 we achieved over $253 million in total revenues.”
“Clean Harbors provide a full range of environmental services on a national basis. We are focused on one consistent strategy to provide our customers diversified services to meet their complex environmental needs.”
“Our development and investment in our systems has enabled us to become the industry leader in environmental information technology.”
[Note: It is suggested that you keep up-to-date on the stock trading activities of the company, i.e. current trading value, 52 week high and low, and volume traded. We are listed as CLHB on NASDAQ in the financial section of the newspaper.
Also, although we are a nationwide company, our ability to provide certain services maybe limited by geography. Be prepared to discuss the service lines available in your area.]

5. Why is it needed? To cut sales orders
To assure accurate pricing of services provided
To assure that all services are billed according to customer expectations

6. What happens if not correct?
Problems issuing sales orders
Inaccurate invoice
Missed billings
Future Receivables Issue
Delayed Cash Flow (DSO)
Customer Service Issues

7. Levels of Contract Pricing
Primary Service Types:
Base – Field Services
ER – Emergency Response
INDM – Industrial Maintenance
CP – CleanPack
SP – SelfPack
HHW – Household Hazardous Waste
APOL – Apollo
STND – Disposal Pricing (code specific/profile specific)
Note: For the majority of contracts, all disposal pricing is managed in STND except HHW and a few special exceptions. Disposal for Site Services work is housed in BASE contracts

8. What is needed? Contract Pricing Submittal Form
Copies of quotes or other pricing documents
Customer Code (s)
Service types covered
Activation/Expiration dates
Terms that apply (option years, price increases, etc.)
Copy of Legal Contract if one exists

9. What is the process?
Contract Pricing Submittal Form & Quote/Pricing information to Contract Pricing Team.
Will accept form and information in multiple formats
Web-based form ed
Fax
Call-in (for emergency setup)

10. Contract Pricing Form On the employee portal check the forms option
Choose the FO-CONT Contract Pricing Submittal Form

11. Contract Pricing Form Customer Information and Codes
Contract Activation and Timeframe
Service Type
Operational Notes
Labor Detail
Supplies Detail
Transportation Notes
Drum rate, flat rate, stepped rate, demurrage
Recovery Fee
Applicability of Other fees (downstream transportation, state fees, profile fees)
Contract Pricing Approval – Who approved pricing?

12. Adding New Pricing to Existing Contract
If it’s a new price being added to a contract, the process should always be to do a T&D quote to the customer vs adding a price to the contract.
If the price won’t fit into the quote system, requires specific billing instructions, or there are large code based price changes, the Contract pricing team will assist.
Provide as much detail as possible to Contract Pricing team (Outlook DL – contract pricing)
Provide information on where price was derived and who approved
Provide backup information on approvals ( s, etc.)

13. Unexpiring Contracts
Requests to unexpire contracts should be sent to Contract Pricing
Send only the Contract Name and Service Types (e.g., ABC Company – CP and STND)
Be sure to review pricing and instructions for accuracy
Advise if price increases apply, length of extension, etc.
Corporate Account contracts should be managed through the Corporate Account Team
Extending contracts should be reviewed by the Price Improvement team for increases prior to extending
Need to evaluate margins/pricing before extending

14. Conclusion
Providing across-the-board training for personnel to clarify process
Web-based form for ease of use
Complete information package to assure timely account setup
Flexibility to accept information in multiple formats
Accurate initial setup to eliminate billing errors
Saves CSRs time by letting the Central Contract Pricing Group set up contract for them rather than trying to create a new contract through drum quotes.