Compensation Strategy​

Valorlub
Valorlub

Valorlub is in charge of the practical implementation of its members’ acceptance obligation for used mineral oils on the Belgian market.

Valorlub must demonstrate to the government that their compensation strategy meets a minimum 80% cost recovery for the collection points of their costs encountered for a separate collection, transportation, processing and administration of the used oil. In case this minimum threshold is not met, an adjusted compensation strategy has to be developed.​

Peter Vanderschaeghe

Approach

  • Möbius contacted the majority of the oil collectors to request detailed data on their collection activities (volumes, costs, collection method, location of the collection points,….)​
  • A detailed analysis of the encountered costs was conducted to understand the link between the costs and the collected volume​
  • A decision support tool was developed to test different compensation strategies​

Möbius helped us to set up a compensation strategy for our collection points which is based on fair and objective allocation principles to reach the desired threshold level

Frank Vanderpooten​, Managing Director Valorlub

Result

  • The analysis demonstrated the the desired minimum compensation threshold was not met​
  • The decision support tool allowed the board of directors ​
  • To simulate various options to reach het minimum threshold​
  • To set up a strategy that allocates the  compensation in line with the occured costs for the collection points​