Phase I
Based on the responses from the key people interviewed for this report, it is evident that plans are being prepared and various competitors are positioning themselves to be ready when contracts are let or negotiations commence. The possibility of Business Services being interested and being able to deliver was a 'surprise'; to those interviewed but generally well accepted with the proviso, could they [Business Services] deliver?
The existing competitors have been in the industry for a few years and are generally known quantities. Phase I then, is a period when Business Services will need to organize themselves ready for submitting tenders and to promote themselves to the key decision makers. Fortunately the numbers of people involved are quite small, probably less than fifty and nearly all located in Melbourne, Canberra or Sydney.
Identify and contact the key decision makers. This will involve face-to-face meetings, regular telephone contact and attendance at key meetings.
Endeavour to negotiate a relationship first with the one or all the big three recycling companies, as identified above in the strategy.
Identify upcoming contracts and find out as much as possible about the likely contents and requirements. It is very likely that the next contracts will be the additional 'Byteback'; sites referred to earlier in this report.
Identify the Business Services that are located in the areas where contracts are likely to be let and secure their agreement, subject to the needs of the overall project.
Develop the parameters of the 'Business Services E Recycling Group';. This will be done in conjunction with Business Services currently involved in computer recycling and those who wish to become involved in submitting tenders for their areas.
The timescale for Phase I is estimated to be about 12 months and will overlap with Phase II.
Phase II
During Phase I opportunities will have been identified, Business Service(s) identified and their involvement negotiated. Working with the Business Services, submissions will be prepared and the tenders prepared.
Basic operational guidelines will be prepared before submitting tenders and these will be expanded and developed, as more information is available. Training will be provided to new participants.
Relationships will be developed with all the key players identified in Phase I.
Other opportunities will be identified including the recycling of TV's and domestic electronic equipment such as DVD's.
The timescale for Phase II is estimated to be 12 to 18 moths and will overlap with both Phases I and III.
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Phase III
Contracts will be secured and work commenced. Costings and performance data will be collected and confirmed. This information will be used to continually update the operational guidelines and this information will be shared amongst all the Business Services involved.
Relationships will continue to be developed with all the key players identified in Phases I and II.
More contracts will be chased and proposals submitted.
The timescale for Phase III is estimated to be 12 to 24 moths and will overlap with both Phases I and II.
Overall Timescale
Sales Targets
It is very difficult to estimate how quickly the market will develop and how much market share Business Services will be able to capture.
There is one site up and operating in Melbourne and Sustainability Victoria have stated that they plan to let more tenders, possibly this calendar year.
The proposal for computer recycling from the Australian Information Industry Association is due to be delivered in October of 2006.
On the 'continuum'; from guesstimate, to estimate, to forecast, to forward contract, to confirmed sale, these targets are at the 'guesstimate end'; but are put forward to provide a starting point to aid the planning process. If Business Services are to be successful and be ready, then preparation work must commence. The project can be slowed down if the tenders are delayed. [See risks below']
Sales Forecasts
| Year |
Low Guesstimate |
High Guesstimate |
| 2007 |
$200,000 |
$700,000 |
| 2008 |
$700,000 |
$3,000,000 |
| 2009 |
$1,400,000 |
$4,000,000 |
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Assumptions
In 2007 it has been assumed that one of the Byteback programmes will be secured by a Business Service in the low guesstimate and in the high guesstimate that two of the Byteback contracts have been secured by Business Services and that they start earlier in the calendar year.
In 2008 the low guesstimate assumes that two Byteback contracts will be secured. In the high guesstimate it is assumed that the national programme of recycling computers from the household has started and that Business Services secure $3,000,000 worth of business.
In 2009 the low guesstimate assumes that the national programme for household recycling has started and that Business Services secure some of these contracts. The high guesstimate assumes more penetration of the market by Business Services.
Project Manager and Related Funding
To develop this project there will need to be management input.
An estimate has been made that about three to five days per month will be required to develop the project and that about seven trips per year in total will need to be made to Melbourne/Canberra/Brisbane from say a Sydney base.
Funding for the Project by Business Services
As already mentioned in the report it is proposed that one of the conditions of joining the 'Business Services E Recycling Group'; will be the agreement to contribute a percentage of external sales achieved through the recycling project to the central costs of running the Group. The intention is that the Group should be self-funding.
Return on Investment as an Industry
It is estimated that the cost of running the Group, including a Project Manager, would be in the order of $45,000 per annum in years 1 and 2 decreasing to $35,000 in year 3, that is, a total project cost of $125,000 over 3 years.
Based on supported employee working eight hours per week for fifty weeks of the year at the average hourly rate there are around eight positions per annum generated for every $100,000 of turnover.
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Return on Investment as an Industry
| Year |
Low Guesstimate |
High Guesstimate |
|
Sales |
No of Jobs |
Sales |
No of Jobs |
| 2007 |
$200,000 |
16 |
$700,000 |
56 |
| 2008 |
$700,000 |
56 |
$3,000,000 |
240 |
| 2009 |
$1,400,000 |
112 |
$4,000,000 |
320 |
|
|
|
|
|
The 'return'; to the sector at the low guesstimate of sales is approximately one position for every $1,000 invested. At the high guesstimate there would be one position for every $400 invested. In addition there are other advantages:
Positions created in rural and regional Australia.
Growth possibilities by moving into other recycling other electronic products such as TV's etc.
Opportunities to add value.
A good match between the skills of the supported employees and the work requirements.
Possibilities of reasonably long production runs enabling training to occur and skills to be developed.
The nature of the work is easily understood by the public at large and it has positive connotations associated with recycling. This is a 'good'; activity with which to be associated.