Presentation on theme: "Final - Confidential KraftMaid Freight Revenue and Cost Overview February 2011."— Presentation transcript:
Final - Confidential KraftMaid Freight Revenue and Cost Overview February 2011
Final - Confidential Executive Overview Review of freight and home delivery of the KraftMaid brand requested to identify level of subsidy and competitive landscape Key findings Overall KraftMaid freight costs are approximately $54 million (2010) and include a subsidy of around $3.1 million Net program costs have increased the past 2 years but are projected to improve in 2011 Our competitors have similar logistics strategies for Home Centers All prices are “landed” with approximately 7% of total price allocated to freight Home Delivery is most prevalent in home center channel Home Delivery pricing was last adjusted in 2008
Final - Confidential Key Contributors David Lahie Ron Drenski Tom Bolden Christina Frush Ken Williams Shawn McNeil Roland Minogue Mark Oleskiewicz Doug Bennett 6/2/20103
Final - Confidential Cost Summary by Year Net Cost of KraftMaid delivery program has increased over the past 2 years
Final - Confidential 2010 Cost Summary $3 million of subsidies in 2010 driven primarily by the dealer channel
Final - Confidential Masco Cabinetry Private Fleet Overview Merillat and Quality –Tractor’s13 –Straight Trucks35 –Yard Tractor’s 2 –Trailer’s54 KraftMaid –Ottawa's 4 –Straight Trucks 3 –Tractor’s 2 –Interplant Trailer’s 37 –Trailer’s 530 (subleased) Most of the Present Masco Cabinetry fleet lease cost is transferred to freight providers and included in their rates to us. Volume is “guaranteed”, and excess leases of around $200k were billed back to us in 2010.
Final - Confidential MCMBAWCComment 3 rd Party OutsourceYes Primary for All Own TrailersPartial – trailer leases funded by suppliers Partial MB and AWC in Midwest only Delivery TimePre- scheduled date 1 week from product arrival 2 Person CrewsYes Home Delivery Any Location Yes Everywhere New York Only Mid-West and New York Only MB and AWC Lowes – 1 st dry, secure location Add On Charge$175 $175 except West where $100 non-1 st floor fee Competitive Freight Overview