Original location – Italy
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After 6 months on Lyfe2 the Spanish affiliate requested all of the items
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New cost – $3,000 x 4; $4,000 x 1; $5,500 x 1 = $21,500
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Number of store fit outs available : 1
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Condition – Good. Minor scratches. 1 year old
Storage cost $200/month
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Cost avoidance on storage = $200 x 12 months* = $2,400
Cost avoidance on destruction = $400 x 12 units = $5,000
Total cost avoidance = $7,400
* Average time spend in storage is 18 months
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Cost avoidance on re-purchasing = $21,500
Transport cost to Spain = $2,000
Total cost avoidance = $19,500
TOTAL FINANCIAL SAVING REPORTED = $26,900
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Carbon footprint during manufacture/unit = 87kgCO2e
TOTAL CARBON SAVING REPORTED = 552kgCO2e
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Original location - Germany
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After 3 months on Lyfe2 the Dutch warehouse needed extra racking
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New cost - 36 bays at $1245 each bay = $44,820
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Condition - Excellent. 3 years old, hardly used
Storage cost - zero
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Cost avoidance on destruction = $250 x 36 bays = $9000
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Selling price - (50% of new price) $22,410
5% Internal commission = $1120
TOTAL FINANCIAL SAVING REPORTED = $30,290
($22,410+$9000-$1120)
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10% external commission = $2241
TOTAL FINANCIAL SAVING REPORTED = $29,169
($22,410+$9000-$2241)
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Carbon footprint during manufacture/unit = 96kgCO2e
TOTAL CARBON SAVING REPORTED = 3456kgCO2e
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