Report

Teaser, summary, work performed and final results

Periodic Reporting for period 1 - SCS (The most advanced “Do-it-Yourself” paint vending machine in the market)

Teaser

There is a lack of a technological solution that allows to efficiently produce and dispense any coloured paint through a reliable and fast process at the point of sales. This problem affects the whole supply chain both economic and environmentally. Today, the pigments required...

Summary

There is a lack of a technological solution that allows to efficiently produce and dispense any coloured paint through a reliable and fast process at the point of sales. This problem affects the whole supply chain both economic and environmentally. Today, the pigments required for the desired colour, tone and finish of paint must be mixed with one of the white base paints with fixed percentage of TiO2 (±12 different types). This ‘fixed formulation’ is not optimal and entails an excess of raw materials., resulting in lower quality paint & higher manufacturing costs.
Our goal is to launch the SELF COLOR SYSTEM (SCS), an automated vending machine of custom-made paint based in our game-changing Master System (MS) which allows to produce paint in a most effective way.
SCS machine brings the vending machine concept at paint and DIY stores allowing a decrease of paint manufacturers environmental footprint due to a drastic reduction of raw materials (20% less), white base paints (70% less) and inventory/transport needs (40% less).

Work performed

During phase 1 we evaluated the project from a technical and commercial point of view. We have devised the technical plan for the integration of components into a compact machine that takes up the least possible space. Additionally, the needs for scaling up and manufacturing partners have been evaluated and we have secured the participation of key technical stakeholders engaging usual partners in our supply chain. Commercially, we have communicated the project to key clients of our network to secure the participation of several manufacturers in the demonstration and validation activities, so that they can later benefit from being the early adopters of SCS .

Final results

SCS will entail a reduction of raw materials (TiO2, pigments) by 20% for manufactures while enables the reduction of required stock by 40% in distribution. These results 15% fewer manufacturing costs, thereby boosting the profitability of custom-made paint. By producing just one white base paint, the environmental impact associated with transport, expiration and disposal will be significantly reduced. At the retailer’s edge, the custom-operated SCS will reduce 5 times the transaction time and thus promote sales and cut down operative costs for retailers.
The estimated P&L statement shows that SCS will mean a major milestone in the company’s strategy and boost our growth, targeting EBITDA>20% and generating around 20 new jobs, until 2025 when full production capabilities are reached.

Website & more info

More info: https://www.alfadispenser.com/2018/09/17/alfa-financed-by-eu-commission/.