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Eaton – Power Management

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Presentation on theme: "Eaton – Power Management"— Presentation transcript:

1 Eaton – Power Management
KR Consulting Jay Petrie John Riddell Riley Owens Christine Rasquinha

2 Problem Statement Christine How should Eaton reevaluate its supply chain to reduce transportation costs and inventory levels while maintaining sustainable growth? Problem Statement Company Overview Reccom. Analysis Strategy Alternatives Future Plan

3 Company Overview Energy Efficient- Sustainability
Christine Energy Efficient- Sustainability Efficiency, reliability, and safety Customer Oriented Problem Statement Company Overview Reccom. Analysis Strategy Alternatives Future Plan

4 Recommendation Time Period: 12 months John Short Term Long Term
Strategic: Cut down on premium orders Operations: Decrease the number of priority air shipping Strategic: Development of New Plant in Sacramento Operations: Adapt company policies to include bulk orders Strategic: Look into developing SAT and SVCs around West Coast Further Operations: Provide knowledge of increasing processing days Short Term Long Term Problem Statement Company Overview Reccom. Analysis Strategy Alternatives Future Plan

5 S.W.O.T Analysis John STRENGTHS: National Sales force
High Demand Product Customer loyalty WEAKNESSES: Distribution problems High shipping costs Prominent Overstock and shortage amounts Problem Statement Company Overview Reccom. Analysis Strategy Alternatives Future Plan

6 S.W.O.T Analysis John OPPORTUNITIES: Growing demand for products
Increase of prominence in West Coast Sales THREATS: Rival Companies also show growth Rising costs for transportation and manufacturing Problem Statement Company Overview Reccom. Analysis Strategy Alternatives Future Plan

7 PESTEL Political Economical Technological Environmental Sociocultural
Jay Political Relations with cities to open new plant Economical W87 stock outs lead to long shipments Rapid increase in high-tech customers Technological Reliable Products & Expansion of product line Environmental High fuel use with planes and trucks Inefficient shipping Sociocultural Sales team at each site to interact with customers Decide where product will be produced Legal Contracts for new plant buildings Plant permits Problem Statement Company Overview Reccom. SWOT Analysis Strategy Alternatives Future Plan

8 Financial Analysis Jay Average Purchase Order Amount: 5.8 million
Problem Statement Company Overview Reccom. SWOT Analysis Strategy Alternatives Future Plan

9 Financial Analysis Jay Average Purchase Order Amount: 6.0 million
Problem Statement Company Overview Reccom. SWOT Analysis Strategy Alternatives Future Plan

10 Financial Analysis Jay Average Purchase Order Amount: 6.6 million
Problem Statement Company Overview Reccom. SWOT Analysis Strategy Alternatives Future Plan

11 Financial Analysis Jay
Average Purchase Order Amount: 5.8 million Average Purchase Order Amount: 6.0 million A significant amount of purchase orders come from Texas and the West Coast which currently does not have a large plant to service them. Average Purchase Order Amount: 6.6 million Problem Statement Company Overview Reccom. SWOT Analysis Strategy Alternatives Future Plan

12 Distribution Analysis
Riley Average Purchase Order Amount: 5.7 million Average Purchase Order Amount: 6.4 million Problem Statement Company Overview Reccom. SWOT Analysis Strategy Alternatives Future Plan

13 Distribution Analysis
Riley Region A Western Region B Eastern Problem Statement Company Overview Reccom. SWOT Analysis Strategy Alternatives Future Plan

14 Distribution Analysis
Riley Western regional sales makes up almost 40% of purchase orders from W34 Western regional sales makes up the majority of purchase orders at W87 Problem Statement Company Overview Reccom. SWOT Analysis Strategy Alternatives Future Plan

15 Distribution Analysis
Riley Problem Statement Company Overview Reccom. SWOT Analysis Strategy Alternatives Future Plan

16 Evaluation of the Alternative
John Create New CMSC sites Able to adapt quickly to regional needs Need sites that fit criteria Major Warehouse Consolidate shipment orders and decrease distance of shipments Dedicate this warehouse to Electrical Sector Problem Statement Company Overview Reccom. SWOT Analysis Strategy Alternatives Future Plan

17 Implementation Christine Long Term Possibilities:
Plan A: Production Facility Development Location: Sacramento, California Human Resources: Bring jobs to the community and decrease unemployment Decrease transportation costs, reducing freight costs Long Term Possibilities: Adapt company policies to include bulk orders Provide knowledge of increasing processing days for large bulk orders in order to manage demand, cut down on inventory loss , and freight costs 0 months 6 months 12 months Completion of Plan B Plan B: Market New Plant Hire local residents Become a part of the Sacramento community Increase brand awareness Provide timely service Completion of Plan A Fully operational plant at full capacity and supply demand on west coast Problem Statement Company Overview Reccom. SWOT Analysis Strategy Alternatives Future Plan

18 Projected Cost of Plant Development
Implementation Christine Projected Cost of Plant Development $1 billion Marketing Expenses $10 million Problem Statement Company Overview Reccom. SWOT Analysis Strategy Alternatives Future Plan

19 Questions? Problem Statement Company Overview Reccom. SWOT Analysis
Strategy Alternatives Future Plan


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