The founders of Talah Board saw an opportunity to replace imported wood products with sustainably made, local wood products. Through innovation and R&D they developed a system for converting palm waste into high quality wood boards.
Talah Board’s goals are to:
Through ongoing meetings and new research Tactical Connections has been able to identify a number of key areas where our expertise in sustainable development, regional commercialization and waste management would be of great value to Talah Board in their effort to create a commercially viable project.
Building sustainability into the profit model
By introducing sustainability considerations Tactical Connections will seek further cost reduction and environmental benefits. These may include material pre-treatment, efficient disposal plans, and bi-directional logistics programs.
Tactical has also identified potential synergies with other companies that could further enhance the project with green initiatives.
Our role is to introduce a series of acquisition programs that will sustainably deliver the quantity and quality of palm waste required at the lowest price possible. Here are some of the key considerations we identified:
Condition of material – Logistics costs will decrease as pre-treatment is introduced to the palm waste. The greater the compaction and pre-treatment of material the lower the transport costs.
Distance – The further the source of material generation is from the proposed Kizad facility the greater the haulage cost due to fuel and vehicle maintenance costs.
Hauling efficiency – The more the tonnage can be loaded onto a single vehicle, the lower the transport costs will be.
Bi-directional logistics – Transportation costs may be offset through the acquisition of return load transportation contracts to or near the point of origin of the palm waste.
Quality of source material – Homogeneity is a challenge in the acquisition of palm waste if not at source. The more contaminated the palm waste with either MSW or other green waste the higher the cost of transport and treatment.
Asset acquisition strategy – the choice of asset acquisition model, lease vs buy, and payment options can have a dramatic effect on costs.
Residue disposal – The distance to a disposal site and the gate fee for disposal will have a significant impact on supply cost.
Competition – Our research suggests that in many cases governments are eager to claim large quantities of palm waste for composting operations creating competition for the material that may drive up price over time.
Creating a profitable business
Tactical Connections and Talah Board continue to work together to create both a commercially successful and environmentally sustainable business operation. Key accomplishments to date include:
“Never has there been a more exciting time for all of us to explore this great next frontier where boundaries between work and purpose are merging into one, where doing good really is good for business”
Richard Branson from his book
‘Screw Business As Usual’