projecteverest

Experiment adopted

[FEB 19] [REPURPOSE] Cost Optimisation

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)
edited on 6th February 2019, 03:02 by Phoebe Chilman

Rose Gooding 2 weeks ago

Status label added: Experiment adopted

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