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

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



Christine

Recommendation



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



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



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



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



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


Jay

Financial Analysis



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


Jay

Financial Analysis



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.




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





Riley




Region A Western Region B

Eastern

Riley




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




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



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



Christine

Implementation



Christine

Operation Cost

Plant Devel-opmentMarketing Expenses

Projected Cost of Plant

Development$1 billion

Marketing Expenses$10 million

Questions?



Documents

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