[FEB 19] [REPURPOSE] Cost Optimisation

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Submitted by

• 
  Phoebe Chilman
• 
  Matthew Rafferty

Phoebe Chilman | 4 months ago | in Waste Management Consulting - Timor-Leste

If we are to continue down the Ximenes Belo outsourcing option at $1/FIBC bag of plastic bottles, we need to minimize fixed costs. The largest cost currently is the ongoing cost of the warehouse of $150/month.

Lean Phase: Cost structure

Assumption:

1. There is a cheaper way to store recycled material (other than warehouse → $150/month)

Time Box: 1 Week

Success Metric:

Metric:

Profit margin financially assessed for several researched solutions of storing recycled material.

Green Light - Proceed

• Optimise financial projections (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

Red Light -

• Explore NEW outsourcing options

Experiment build:

• Form an extensive financial projection that incorporates all costs incurred by Repurpose and the different options that could be utilised.
• This should include assessing financials around all options including if we were to omit the warehouse (for this option assessing the logistics around this  would need to be looked at)
• Projections of many plastic bottles we would need to collect would need to be included in the projection (and what this means in terms of customers for Collection)