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Eaton – Power Management
KR ConsultingJay Petrie
John RiddellRiley Owens
Christine Rasquinha
Problem Statement
AnalysisReccom. Problem Statement
Company Overview Strategy Alternatives Future Plan
How should Eaton reevaluate its supply chain to reduce
transportation costs and inventory levels while maintaining sustainable
growth?
Christine
Company Overview
Energy Efficient- Sustainability
Efficiency, reliability, and safety
Customer Oriented
AnalysisReccom. Problem Statement
Company Overview Strategy Alternatives Future Plan
Christine
Recommendation
AnalysisReccom. Problem Statement
Company Overview Strategy Alternatives Future Plan
Strategic: Cut down on premium orders
Operations: Decrease the number of priority
air shipping
Strategic: Look into developing SAT and SVCs around West
Coast Further Operations: Provide
knowledge of increasing processing
days
Short Term Long Term
Time Period: 12 months
John
S.W.O.T Analysis
STRENGTHS:
• National Sales force• High Demand
Product• Customer loyalty
WEAKNESSES:
• Distribution problems• High shipping costs• Prominent Overstock
and shortage amounts
AnalysisReccom. Problem Statement
Company Overview Strategy Alternatives Future Plan
John
S.W.O.T Analysis
OPPORTUNITIES:
• Growing demand for products
• Increase of prominence in West Coast Sales
THREATS:
• Rival Companies also show growth
• Rising costs for transportation and manufacturing
AnalysisReccom. Problem Statement
Company Overview Strategy Alternatives Future Plan
John
PESTEL
SWOT AnalysisReccom. Problem
StatementCompany Overview Strategy Alternatives Future Plan
Political
• Relations with cities to open new plant
Economical
• W87 stock outs lead to long shipments• Rapid increase in high-tech customersSociocultural
• Sales team at each site to interact with customers
• Decide where product will be produced
Technological
• Reliable Products & Expansion of product line
Environmental
• High fuel use with planes and trucks• Inefficient shippingLegal
• Contracts for new plant buildings• Plant permits
Jay
Financial Analysis
SWOT AnalysisReccom. Problem
StatementCompany Overview Strategy Alternatives Future Plan
Atlanta-
SAT
Atlanta-
SVC
Baltimore-
SAT
Chicago
-SAT
Chicago
-SVC
Clevela
nd-SAT
Hartford
-SAT
Hartford
-SVC
New Je
rsey-S
AT
Orlando-SA
T
Raleigh
-SAT
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Eastern Purchase Order Totals
Average Purchase Order Amount: 5.8 million
Jay
Financial Analysis
SWOT AnalysisReccom. Problem
StatementCompany Overview Strategy Alternatives Future Plan
Los Angeles-SAT Los Angeles-SVC Phoenix-SAT Portland-SVC San francisco-SAT Seattle-SAT -
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Western Purchase Order Totals
Average Purchase Order Amount: 6.0 million
Jay
Financial Analysis
SWOT AnalysisReccom. Problem
StatementCompany Overview Strategy Alternatives Future Plan
Dallas-SAT Dallas-SVC Denver-SAT Denver-SVC Houston-SAT Houston-SVC St Louis-SAT -
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Midwest Purchase Order Totals
Average Purchase Order Amount: 6.6 million
Jay
Financial Analysis
SWOT AnalysisReccom. Problem
StatementCompany Overview Strategy Alternatives Future Plan
Los A
ngeles
-SAT
Los A
ngeles
-SVC
Phoenix-
SAT
Portlan
d-SVC
San fr
ancis
co-SA
T
Seatt
le-SA
T -
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
Western Purchase Order Totals
Dallas-
SAT
Dallas-
SVC
Denve
r-SAT
Denve
r-SVC
Houston-SA
T
Houston-SV
C
St Lo
uis-SA
T -
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
Midwest Purchase Order Totals
Atlanta-
SAT
Atlanta-
SVC
Baltimore-
SAT
Chicago
-SAT
Chicago
-SVC
Clevela
nd-SAT
Hartford
-SAT
Hartford
-SVC
New Je
rsey-S
AT
Orlando-SA
T
Raleigh
-SAT
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
Eastern Purchase Order Totals
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: 6.0 million
Average Purchase Order Amount: 5.8 million
Average Purchase Order Amount: 6.6 million
Jay
Atlanta-
SAT
Atlanta-
SVC
Baltimore-
SAT
Chicago
-SAT
Chicago
-SVC
Clevela
nd-SAT
Hartford
-SAT
Hartford
-SVC
New Je
rsey-S
AT
Orlando-SA
T
Raleigh
-SAT
St Lo
uis-SA
T
Phoenix-
SAT
Portlan
d-SVC
Los A
ngeles
-SAT
Los A
ngeles
-SVC
Dallas-
SAT
Dallas-
SVC
Denve
r-SAT
Houston-SA
T
Houston-SV
C
Denve
r-SVC
San fr
ancis
co-SA
T
Seatt
le-SA
T -
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Company Purchase Orders Total
Total
Distribution Analysis
SWOT AnalysisReccom. Problem
StatementCompany Overview Strategy Alternatives Future Plan
Average Purchase Order Amount: 5.7 million
Average Purchase Order Amount: 6.4 million
Riley
Distribution Analysis
SWOT AnalysisReccom. Problem
StatementCompany Overview Strategy Alternatives Future Plan
Region A Western Region B
Eastern
Riley
Distribution Analysis
SWOT AnalysisReccom. Problem
StatementCompany Overview Strategy Alternatives Future Plan
38%
62%
Sales at W34
Region A-Western
Region B-Eastern
96%
4%
Sales at W87
Region A-WesternRegion B- Eastern
Western regional sales makes up almost 40% of
purchase orders from W34
Western regional sales makes up the majority of purchase orders at W87
Riley
Distribution Analysis
SWOT AnalysisReccom. Problem
StatementCompany Overview Strategy Alternatives Future Plan
Faye
tteville, N
C
Sumter, S
CW
34W
87
CDC & DBN
Arden, N
C
Beaver, P
A
El Paso
, TX
Raleigh
, NC
Puerto Rico NC
0%10%20%30%40%50%60%70%80%90%
100%
Locations vs. Facilities
EasternWestern
Riley
Evaluation of the Alternative
SWOT AnalysisReccom. Problem
StatementCompany Overview Strategy Alternatives Future Plan
Create New CMSC sites
Able to adapt quickly to regional needs
Need sites that fit criteria
John
Implementation
0 months6
months12
months
Completion of Plan B
Plan A:Production Facility Development• Location: Sacramento, California• Human Resources: Bring jobs to the
community and decrease unemployment• Decrease transportation costs, reducing
freight costs
Plan B:Market New Plant• Hire local residents• Become a part of the
Sacramento community• Increase brand awareness• Provide timely service
Completion of Plan AFully operational plant at full capacity
and supply demand on west coast
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
SWOT AnalysisReccom. Problem
StatementCompany Overview Strategy Alternatives Future Plan
Christine
Implementation
SWOT AnalysisReccom. Problem
StatementCompany Overview Strategy Alternatives Future Plan
Christine
Operation Cost
Plant Devel-opmentMarketing Expenses
Projected Cost of Plant
Development$1 billion
Marketing Expenses$10 million
Questions?
SWOT AnalysisReccom. Problem
StatementCompany Overview Strategy Alternatives Future Plan
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