Monopoly trash service not the way to go
The Wednesday 2/27/19 Citizen article entitled “Council to eye trash monopoly for PTC” indicated the need to move from three residential garbage service providers to a monopoly residential garbage service to save road wear and tear.
Having three competitive garbage services in Peachtree City has been an effective way for residents to control garbage services cost. Competition realizes more economical rates and services for residents.
“Officials” were quoted as stating that when a monopoly garbage service is selected, rates would increase. I’ve been in supply chain for several decades and anytime you consolidate services from multiple providers to one, an economies of scale is realized for the awarded service provider with lower costs and reduced consumer rates.
For the PTC official to make a public statement that garbage service will increase with monopoly service seems to indicates to the upcoming bidders that competitive bids are of little concern to win the bid and sets a precedent for future increases without resident input or control.
The article also mentioned that Peachtree City was not looking at commercial garbage services at this time though 10 garbage service providers are being utilized.
It appears that the larger reduction in road usage could be realized from competitively bidding and consolidating the commercial garbage services from 10 commercial garbage providers to two or three, especially with usual commercial service being once or twice a week.
To reduce road usage and wear while also retaining a price competitive garbage service in Peachtree City, two residential services should be chosen from an open bid as well as two to three commercial garbage services.
Monopolies are not financially motivated to be customer focused or price competitive for consumers.
Curtis D. Gardner
Certified Purchasing Manager
Peachtree City, Ga.