Water utility providers are liable for financial penalties and reputational damage for non-compliance with regulations regarding bio-waste handling and disposal. Social responsibility and compliance with regulations can be costly, and this paper discusses a study on approaches for reengineering logistics processes for bio-waste handling and disposal. The business process simulation model developed during the research has been applied to evaluate and compare costs associated with at least three real operational scenarios on logistics for handling sludge generated in a case study waste water treatment utility.