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[JUL 19] [REPURPOSE] Plastic Bottle Outsourcing Options - Heineken, Verde and Star Product (Ximenes)

The current agreement (LOA) with Ximenes and Star Product has proven unreliable and difficult to maintain. Without adequate financial incentive to continue the transaction, other options with Verde and Heineken should be prioritised. Moving away from Ximenes to a more stable solution must be done mindfully to avoid damaging professional relationships and PEV’s public reputation.

Verde present a promising partnership with PEV in the future and this option should be explored thoroughly. With an established positive image in Dili, Verde have already been liaising with large stakeholders such as Heineken and Timor Plaza. Their intentions for a joint venture with ERS can be found in the meeting minutes and Handover documentation.

 

Lean Phase: Solution, Revenue Streams

 

Assumptions:

  1. The agreement with Ximenes is unreliable and no longer viable

  2. Verde and Heineken are the preferable option and a partnership is desired

 

Time Box: 2 weeks

 

Success Metric:

Metric:

  1. Analysis of the profitability of our relationship with Ximines

  2. Measuring if the new partnership with Verde and Heineken is financially viable.

 

Green Light - Proceed

  • Optimise financial projections for Verde and Heineken outsourcing option (minimise variable costs + mitigate fixed costs) and explore scaling to maximise revenue.

Success Point:

  • If 70% profit margin can be attained, proceed with green light.

Orange Light - Optimise

  • Inform Collection on the exact figure that they need to sustain to keep ERS in the green.

Failure Point:

  • If the monetary figure required from Collection requires an increase in the cost of current BagPay and Premium services.

Red Light -

  • Explore NEW options for repurposing and potentially outsourcing.

 

Experiment Build:

  • Form an extensive financial projection that incorporates all costs incurred by Repurpose, to prove viability of partnership with Verde and Heineken.
  • Have the LOA with Verde and Heineken signed to ensure that our understanding of the verbal agreement is correct.
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