Introduction

Trash-to-Treasure is a unique company that aims to address the fact that people arent composting
by working alongside organic companies to provide organic waste bins to the community. By
offering an organics bin similar to trash and recycling bins, we not only want to increase the amount
of organic materials that can be used for composting but also to decrease the amount of
compostable materials going into landfills and polluting our environment. But these wont be your
typical bins, by adding an information technology aspect, the bins will weigh the amount of compost
put into it, and print an appropriate voucher for an organic store who uses the produce of the bins.
3.1 Vision
Making composting accessible and rewarding to everyone in a new exciting way, while benefitting
the businesses who use them as well as the environment
1
.
3.2 Industry Analysis: New Zealand electronic compost bin industry
The New Zealand electronic compost bin industry is untargeted and no current businesses are
currently recognised in this industry. We believe that overall this is a relatively attractive market
ready to be taken advantage of. Although the costs may be high to enter, and becoming an
established business could be difficult in this niche industry.
Force: High/Low: Justification:
Buyer Power: Low Because there is nobody else currently In the industry,
if a business wants our composting bin, they will only
have our company to choose from. This means they
have little to no power to choose from other suppliers
or in bargaining competitive prices.
Supplier Power: Low There is many bin/ plastics manufacturing companies
to buy from giving our company high buyer power.
Research has proved at least 9 potential bin suppliers.
Also low for the mechanical part of our product, if
there are only a few manufactures in NZ we could
source from overseas.
Threat of new entrants: Low There is currently no existing industry, other start-ups
may be hesitant to enter because of lack of demand to
the niche market and may be deterred at start-up costs
particularly for sourcing the electronic component.
Threat of substitutes: High Only two major sellers seem apparent for this
good/service, We Compost
2
and Kai to Compost
3
, both
of which are area specific so may be the only choice for
some buyers depending on location. Other substitutes
are buying compost straight from a compost company,
or making their own.
Rivalry among existing
competitors:
Low As there is currently no one in the industry, we would
be the only existing business once we enter it, this
means there would be no others to compete with so
rivalry would be non-existent.

3.3 Customers and Their Needs
Our customers are organic food stores, wholesalers or other such businesses who run their own
gardens, grow fruit and vegetables or use compost in their business activities and want to promote
their business. These businesses will need compost to fertilise their gardens and promote organic
growing of their produce. Also businesses that sell gardening products that uses compost as a main
ingredient would benefit from our bins buy partaking in the voucher system, for example Capital
Compost & Garden Products
4
,

who get their compost from a very similar service to our own, Kai to
Compost (previously mentioned substitute service).
3.4 The Product and Service
Our product will best suit this market as they have the opportunity to promote their business
through the vouchers our bins print, and as a result will gain more customers. They will also be
rewarded with more natural compost for their gardens, or for further sale. These businesses would
also prefer compost over chemical fertilisers as it will fit in with their organic business models. Also
to claim they are an organic business, they must use no chemical products in any of their products,
this means compost is the perfect solution to use in place of other, inorganic, products.
3.5 Suppliers and Partners
The first possible supplier to our business could be bin manufacturers. As Trash-to-Treasure would
specialise more in the sales of the bins to businesses and the distribution and collection of the bins
around the community. We would purchase the organics bins ready to have the weighing devices
installed. For example Plast-ax
5
. Our second supplier would then be the weighing mechanism
manufacturer, someone who specialises in electronics and can supply us with the part that we can fit
into the bin.
Possible partnerships could be established composting centres. We would benefit from such a
partnership as our bins collect organic matter, but it is more useful once it has been through the
composting process. By giving the raw organic waste to a composter, we could then take the
finished product to our customers, saving time and benefitting all parties involved. Once our bins are
full, the information wirelessly transmits to the main offices requesting to be emptied. By partnering
with a telecommunications company like Telecom and using their servers and wireless technology to
have the information relayed back to our business, we will save money not having to buy the
equipment.
3.6 Strategy: Focused High Cost
Trash-to-Treasure will focus on a small market, organic products are already exclusive in the market
6

and the business who supply and use compost are even fewer. This gives a very narrow target
market which can create risk if it doesnt prove popular.
To counteract the small market, we will have to charge a relatively high cost to cover the costs of the
bins, largely the electronic aspect. Because we are expecting fewer sales in a niche market, a high
price will make every unit count and should make it possible to be profitable.
The overall strategy is therefore Focused High Cost.
3.7 Value Chain Activity: Procurement
The most important value chain activity for this business is Procurement.
This is the first most valuable activity as sourcing the weighing and printing mechanism for our bins
is essential to the success of our business. We need a high quality part that is reliable and will work
with minimal need for repair. Our customers will be depending on the fact that our bins differ from
other options and the benefits from the voucher system are worth the price they pay for our
product and service. So its essential that we purchase the highest quality piece of equipment for our
bins as possible.
3.8 Business Processes
3.8.1 Supplier selection process Because we need a high quality mechanism that suits our specific
needs, choosing the right supplier is very important to the procurement of our product. This will
include the steps of researching and finding potential suppliers, benchmarking what they offer to
our needs, comparing quality of products, comparing prices between options and deciding what the
best option is.
START
Research potential
suppliers
Can they fill our
needs?
Acceptable
quality?
Yes
Best Price?
Yes
No
Yes
END/start of
Inventory Order
Process
Research Department
Research Department
Decision Support
Systems


3.8.2 Inventory Order Process - The inventory order process is an important process in
Procurement. Knowing when our supplies of bins and mechanisms are low, and ordering the correct
amount of new inventory, is necessary to have enough inventory on hand whenever a new customer
order comes in. The process detects when inventory is low, creates an order, sends the order to the
supplier and is then billed the appropriate amount, pays bill, the inventory is received, and the
warehouse inventory records are updated.
Field Code Changed
START
Records inventory
needed
Create and send
purchase order to
suppliers
Receive Invoice
Receive Inventory
Update
Inventory
Send Payment
END
Warehouse Warehouse Inventory
management
systems
Inventory
management
systems
Finance Department Finance Department
Inventory Ordering
Systems

3.9 Functionalities
3.9.1 Supplier selection process
Compares different suppliers to one another to find the most attractive.
Aids managers in the decision making process.
3.9.2 Inventory Order Process
Keeping track of inventory levels.
Orders more inventory when needed.
3.10 Systems
3.10.1 Executive Information System (EIS) Uses external information about suppliers to support
unstructured managerial decisions. Because the decision of choosing suppliers requires insight and
judgement, an EIS supports the strategic level of the business and aids managers in making the
decision. By making the best decision possible with the use of business information generated by the
system, we can ensure a top quality product that our customers can rely on and live up to our
promise of new and exciting composting possibilities.
3.10.2 Inventory Management System (IMS) The IMS will facilitate keeping track of inventory
levels. The system will most likely record the amount of new inventory coming into the warehouse
and inventory going out when it is sold. This system will save employees time from having to count
inventory themselves, giving them more time to focus on more customer centric processes, which
will increase value.
Field Code Changed
3.10.3 Inventory Ordering System This system will be closely interlinked with the IMS, when it
detects that the inventory levels are below a specified amount the system will automatically send an
order request of a pre-set amount to suppliers to bring inventory levels back to the desired amount.
This creates a seamless relationship in the supply chain and speeds up the inventory ordering
process, minimalizing delays and preventing our company being short of stock if an unexpected
order comes in, allowing us to deliver the product to the customer straight away, increasing their
satisfaction and perceived value of the product and our business.
3.11 Summary Table: Value Chain to Systems
Value Chain
Activity
Process Functionalities Specific
Information
System(s)
Broad
Information
System(s)


Procurement




Supplier
Selection
Process
Compares different suppliers
to one another to find the
most attractive.
Aids managers in the decision
making process.
Executive
Information
System
Decision Support
Systems (DSS)
Inventory
Ordering
Process
Keeping track of inventory
levels.
Alerts employees when more
inventory needs to be ordered.
Inventory
Management
System

Inventory
Ordering
System
Transaction
Processing
Systems (TPS)

Supply Chain
Management
(SCM)

Conclusion
Trash-to-Treasure is a unique business looking to offer a new, exciting way to compost in the hope of
decreasing the amount of compostable materials going into landfills and to benefit local business
who support the use of compost. By using technology to weigh compost and print vouchers, we
hope to modernise composting and make it exciting to do so. Information systems will help us
provide a quality product that will help us achieve our vision and will add value by cutting costs and
time in our business.
Referencing:
1
Environmental Protection Agency. (2013). Environmental Benefits. Retrieved from
http://www.epa.gov/composting/benefits.htm
2
We Compost. (2011). Auckland Food Waste Collection. Retrieved from
http://www.wecompost.co.nz/about/auckland-food-waste-collection/
3
Wellington City Council. (n.d) Kai to Compost. Retrieved from
http://wellington.govt.nz/services/environment-and-waste/rubbish-and-recycling/recycling/kai-to-compost
4
Wellington City Council. (n.d). Capital Compost & Garden Products. Retrieved from
http://wellington.govt.nz/services/environment-and-waste/landfill/compost-and-garden-products
5
Plast-ax. (n.d) Plast-ax Rational Moulders. Retrieved from http://plast-ax.co.nz/
6
Sanjun, A. I., Snchez, M., Gil, J. M., Gracia, A. and Soler, F. (2003), Brakes to organic market enlargement in
Spain: consumers and retailers attitudes and willingness to pay. International Journal of Consumer Studies,
27: 134144. doi: 10.1046/j.1470-6431.2003.00295.x