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:
-
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)
Tagged users
Rose Gooding 2 weeks ago
Status label added: Experiment adopted
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