Manufacturers excel at tracking what goes in (raw materials) and what comes out (finished goods). But between those two touchpoints lies the “missing middle” – the day-to-day processes where waste quietly builds, profits leak, and sustainability targets slip out of reach.
In today’s climate of rising costs and tougher regulations, those blind spots have never mattered more – but visibility is the game-changer.
Production will always be the priority – and rightly so. But when waste goes untracked, it carries hidden costs. With the right data and insight, those blind spots become opportunities for savings and sustainability wins.
Three common challenges holding manufacturers back
CHALLENGE 1: Packaging that isn't what it seems
Amid Extended Producer Responsibility (EPR) reporting, procurement teams are highly tuned into the packaging they’re placing on the market.
That said, packaging can be deceptively complex once it enters the waste stream. A tray that looks recyclable may in fact be lined with plastic. Mixed materials from bulk deliveries might require specialist processes to recycle effectively.
The impact? Materials assumed to be recyclable often end up in general waste, costing more to dispose of and undermining sustainability reporting despite best intentions.
One manufacturer we supported discovered that over 40% of its ‘recyclable’ packaging required specialist processing – a finding that created six-figure annual savings once procurement choices were aligned with recyclability.
Overall, the risk increases with the advent of the new EPR legislation and impact of modulated fees.
CHALLENGE 2: Inconsistent visibility across sites
Large manufacturing businesses often operate multiple facilities – each with its own routines, staffing patterns, and local practices. These variations are natural in fast-moving environments, but they can make it hard to see the full picture.
One site might capture recycling data in detail, while another defaults to broader categories. Seasonal recruitment or high staff turnover can add further variability. For head offices, this means comparing performance across sites is difficult, and opportunities for improvement aren’t always obvious.
CHALLENGE 3: Waste seen as separate from operations
On the production floor, waste is often a side effect rather than a focus. A run of defective product might be seen as a start-up quirk, or cleaning teams might prioritise speed over segregation for understandable hygiene reasons. Engaging teams can be difficult amid their other priorities.
But every overlooked moment has a price tag: wasted packaging, wasted ingredients, wasted labour.
These aren’t just operational hiccups; they show where waste management isn’t fully integrated into production culture – and that disconnect quietly erodes both environmental goals and profitability.
How to unlock value from waste
Data – from blind spots to benchmarks
Smart waste partners can track metrics in real time – from bin contamination levels to waste volumes by shift. With expert analysis, businesses can pinpoint inefficiencies, replicate best practice across sites, and empower employees.
Tools such as our Smart365 platform provide live visibility and give operations teams the tools to act on trends, rather than simply report them. This includes:
· Setting alerts when waste exceeds thresholds
· Identifying underperforming lines early
· Tracking changes in waste output following process adjustments
· Simplifying compliance and EPR reporting
The industry knows how waste happens. The next competitive advantage comes from knowing what to do with it – and how fast you can act on the data.
Waste audits – the gateway to visibility
The fastest way to address the “missing middle” is with a structured waste audit. On-site specialists review the full waste lifecycle – from procurement and production, through to outputs and logistics, to reveal where value is leaking.
Audits deliver three things manufacturers often lack:
· Visibility – clear data on what’s really happening across sites and shifts
· Evidence – insights that back internal business cases and compliance
· Action – a practical improvement plan that turns findings into measurable savings
An audit isn’t about blame. It’s about clarity, challenging routine complacency, uncovering opportunities, and setting the agenda for smarter data use, process optimisation, and cultural change.
Team training – a building block to employee engagement
Technical fixes are most effective when people are engaged. Clear signage at recycling points, education on packaging symbols, and appointing ‘Waste Champions’ help staff make the right decisions.
These small changes prevent contamination, reduce disposal costs, and embed continuous improvement – creating a culture where waste reduction becomes part of day-to-day success.
Given the variety of manufacturing waste, go a step further by advising on the seven types of plastic and recycling symbols. Space is a precious commodity on-site, but a bin station could drive behavioural change supporting greener business.
Process optimisation – preventing waste at the source
Prevention is always more valuable than recovery. Waste data can reveal where recurring events in production are creating unnecessary loss – from line start-ups and shutdowns, to product changeovers, or surplus stock that doesn’t make it to market.
By making those waste impacts visible, manufacturers can decide where to focus improvements and avoid avoidable material entering the bin in the first place. This protects raw materials, packaging spend, and labour – and reduces disposal costs downstream.
Our role isn’t to run production lines – it’s to provide the data and insight that shows where waste is happening. When manufacturers see that clearly, they can take action at the right point and achieve measurable savings.
Why now?
Recent legislation – from EPR to Digital Waste Tracking – makes waste visibility urgent amid potential fines.
The waste industry hasn't seen regulatory changes like this in decades. Manufacturers need accurate data not just for efficiency, but legal compliance. Lean on a sustainable waste management partner to alleviate the pressure, while helping you achieve your goals.
Waste is no longer a back-office issue – it’s front and centre of profitability, compliance, and sustainability. Manufacturers who tackle the missing middle will protect their margins – and strengthen their position as leaders in sustainable production.