Project Everest

[FEB 19] [REPURPOSE] Experiment Results - Plastic Outsourcing Option Ximenes Belo

Reference to the Experiment Design Post

 

Lean Phase: Revenue streams, solution

 

Assumption:

1. The plastic outsourcing option with Ximenes is financially viable

 

Results:

A comprehensive financial analysis was completed to determine the financials of the deal with Star Products (Jose Deolindo Ximenes). This analysis shows the amount of revenue that can be obtained from different bag situations and having the amount of bottle income easily modifiable.

 

A meeting was conducted with Jose Deolindo Ximenes “Belo”, in this meeting the Letter of Agreement (LOA) was discussed and had two modifications made. The LOA covered the following topics;

  • Dates that PEV will be working in country.
  • The pricing for the plastic bottles per bag.
  • Means of transporting the plastics from our facility to Mr Ximenes’ factory. Already being agreed that Ximenes comes and picks up the bottles in his own truck.
  • The quantity of plastics to be picked up.
  • Upon collecting a bag of plastic bottled our used FIBC bags will be returned to our warehouse.
  • Dates of when all of the plastic bottles will be collected from our warehouse by Star Products

 

In the past, contact with Jose Deolindo Ximenes has been troublesome. As a result of this, we gained secondary contact information from Mr Ximenes’ wife Tina Ximenes to enable another means of contact. Tina speaks English, therefore she is easier to communicate with and can relay our messages on to Mr Ximenes.

 

The LOA that was signed by Ximenes on the 8th of February 2019 stipulated he would purchase one of our FIBC bags (roughly 1000 liter bags with just over 500 bottles) for $1.5 USD or pay $1 USD for his own bags (roughly half the size of our bags).

 

From the financial analysis it has been calculated that Collection would need to collect a total of 10,000 plastic bottles per week to cover the cost of the warehouse assuming all the bags are collected in Ximenes’ bags. For the larger bags we would need to collect a total of 15,000 bottles per week for the same outcome.

 

The LOA stated that all plastic bottles will be collected by the end of business Friday 15th of February 2019, unfortunately this did not occur. There was issues in getting in contact with Jose Deolindo Ximenes and his wife, Tina Ximenes. Many phone calls were made to Mr Ximenes Belo but were going unanswered, consequently, we decided that we would contact Tina. When our team solved this block in communication we had to postpone the collection due to matters that arose with their family. Ximenes and Tina unfortunately did not answer further contact until the end of project. We messaged Tina before leaving, to ensure it is understood that Project Everest are not operating in Dili until July. We hope our relationship can be maintained and the plastic bottles in our warehouse can be collected in July

 

[Orange Light]: Inform Collection on the exact figure that they need to sustain to keep ERS in the green assuming that this arrangement with Jose Deolindo Ximenes becomes a regular collection.

 

Validated Learning:

The hypothesis is supported by the result obtained. Although the amount of bottles needed to cover the cost of the warehouse is extremely high it can be eventually achieved.

The financial analysis was done in such a way to allow different amounts and prices to be tested. This made the results very clear to interpret.

 

Next Move:  

 

The next move is to contact Jose Deolindo Ximenes to arrange meeting in order to show him where the warehouse is and ensure Mr Ximenes collects all stored plastic bottles. If financially viable, arrange with Jose Deoloindo Ximenes for a regular collection service of plastic bottles after all initial plastic bottles have been collected.

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