So now I’ll morph it back to Janet with reference to the duplicative systems, how much more to go on? And what do you see?
Janet Zelenka: Yes. So we put the U.S. on, meaning we put all the revenue on and we put all our core waste processing. So all the waste stations, everything that is a outlaying or incinerator is running on it. We have a few what I’ll call, edge cases of hybrid model where they’re actually partially using the system, but have some small unique areas that we need to still put on, but that should be not a long putt to get there. Now we do have Canada, which is a much smaller part that is on our journey to move. But I would call the ERP in the U.S. and what we’re looking for in North America largely done, which is very exciting. In terms of the legacy applications, they are still used right now in Canada, as I mentioned, but also internationally.
So that is the next journey we’re on, and the international team is very active working on the data cleanup and starting to start requirements next year with a goal to start moving off of that around the 2025 time frame. Meanwhile, while we continue to take that $20 million to $30 million out in the longer term, we are looking for ability to right-size the legacy platform, which may give us some opportunity next year as we continue to look at it.
Cindy Miller: And I think one thing, too, just as a point, Scott, just a little bit more than 80% of all of our volume runs through the platform currently. So I hope that puts some things into perspective too in terms of size.
Scott Schneeberger: Yes.
Cindy Miller: And just for Canada, SID is on the platform, Secure Information Destruction. So I’m only talking about RWCS is the only piece left for Canada.
Scott Schneeberger: Yes. Got it. Thanks. That’s very helpful, very comprehensive. I – another two-parter as my second question. The first part is what are you anticipating for sort of office paper going forward? Just what are the trends that you’re seeing? What do you expect as you look ahead here was implicit in the fourth quarter. Jan, I guess that’s mostly for you. Cindy, you had mentioned that – let me go back to the notes. The – a few sites, a few customers – this is on Information Destruction. A few site closures in this post-pandemic period and lesser pickup frequency, I just wanted to – last time to that for a second. I don’t think I’ve heard that from you all before. I just want to hear what – how you feel about that trend. Is that something new? Or is that something you’ve seen consistent. I just want to delve in a little bit more on that. Thank you, both.
Cindy Miller: Got you. And Scott, I can kind of help you with both of them. First of all, in terms of the RISI rate, what I think – I said coming out of pandemic, we were going to learn a lot. And I think now a few years out, here’s what we’ve learned. I think 2022 is the anomaly. That year, the average price of paper with people figuring out, who’s coming back to work? Who’s going out to eat? What’s the demand on travel? What’s the demand on all these things? It really put an immediate pressure on a lot of commodities, specifically paper that’s used in a lot of the essential things that we use. And I think it averaged the year somewhere around 235. That in and of itself is an anomaly. But Q3 last year versus Q3 this year, it’s a difference from – we’re looking at $254 in September last year, down to $140 in October of this year.
But the trend that we’re seeing, and here’s, I think, the good news. The good news is prior to 2022 being now just a complete outlier, prior to that, the 15-year average has been about $150 a ton. And right now, today, it’s about 140. That seems pretty reasonable in terms of if you look – if you take 2022 out of there, it’s now more normalized, which I think is a good sign for society. It’s a good sign that we’ve gotten into a rhythm of where is demand. So I think we need to level set that. What are we seeing going into Q4, right now, it’s maintained around 140 over the last several months, which is a good stable number, I think, in terms of showing that it isn’t showing the wild swings as much as it had over the last, let’s say, six, seven quarters.
So I think that’s really good news there. And we know how to manage at that. That’s more normal for the business. And quite frankly, once the RISI rate gets below $192 a ton, our surcharge will help mitigate more like about 60% of whatever the volatility is. So I think all that’s good. If I go to the second portion of the question about that national channel, that national account channel base that we have, we’re seeing similar things for the national accounts in both regulated as well as Shred. And what that nuance is, we’ve seen it over the course of the last couple of quarters. And what it’s been is on the regulated side, those national accounts, those large retail pharmacies, you read headlines, I read headlines. There’s an awful lot of store closures.
There’s potential bankruptcies. There’s a lot of things that are going on in that space. And quite frankly, that space not only uses us for regulated, but they also use us for shred. And when you have a footprint which is thousands of stores and you choose to close down 1,000 of them, that that definitively means we – they still use us. They just don’t have a facility in a particular town that requires that service anymore. So – and we’re seeing that on regulated. And then on the shred side, when we take a look at shred, we’re looking at that customer base that is now figuring out, hey, most of our people are now back at work. This is going to be our new rhythm for right now as they continue to figure out how to cut their costs, how to right – to reset their future.
So, that they can position themselves to grow. So they may have closed down some sites. They may have reduced some frequencies still requiring our service, but getting used to whatever their new normal is. So I don’t see any of those themes as anything that’s lingering, anything that’s going to continue to a great degree. I think I think we’ve seen this shift and this change through our larger national account channel base. And I see now an opportunity for that to stabilize. And now I can tell you, Cory and his team are just positioned to grow. So that’s where we sit and that’s the trend that we see.
Scott Schneeberger: Great. Thanks so much.
Operator: Thank you. And one moment, please for our next question. Our next question will come from Dave Manthey of Baird. Your line is open. Mr. Manthey, if your line is on mute, please unmute your line. If you are using headset, put on your headset. Dave sir, are you able hear us. Mr. Dave Manthey? Speakers, if you are all right. I’ll move to the next person. One moment please. Our next question will be in a moment. Our next question will come from Michael Hoffman of Stifel. Your line is open.
Michael Hoffman: Thanks, Cindy, Janet, I was never in doubt. So well done.
Cindy Miller: Thanks, Michael.
Michael Hoffman: Well, you tested the bejesus out of it. So I knew you had pushed it and pulled it and tugged on it a lot. But to that end, get we’re right in the beginning of billing and billing was a challenged office it. You fixed it. You tested that really hard in Puerto Rico. What are you seeing relative to that sort of baseline of knowledge, what are you seeing at the moment?
Cindy Miller: We’re seeing a much more astute understanding and we have reporting in place to track billing and pricing and contracts and everything that impacts going from day 1. And I think that’s the big difference that we see because we knew what to look for. There’s a lot of complexity in RWCS in terms of its contracts and pricing. So – but there’s also – when you get to the transactional piece, but there’s also the service revenue side that is a subscription base that is actually easier and as you heard me mention, we actually did that we moved that to be a month ahead of time for most of our customers. So that was the switch we did. So that needs – that’s a little customer change management that we’re watching, but so far, so good.
