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Eaton – Power Management. KR Consulting Jay Petrie John Riddell Riley Owens Christine Rasquinha. Problem Statement. Christine. How should Eaton reevaluate its supply chain to reduce transportation costs and inventory levels while maintaining sustainable growth? . Problem Statement.

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Eaton power management

Eaton – Power Management

KR Consulting

Jay Petrie

John Riddell

Riley Owens

Christine Rasquinha


Problem statement
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


Company overview
Company Overview

Christine

Problem Statement

Company Overview

Reccom.

Analysis

Strategy

Alternatives

Future Plan


Recommendation
Recommendation

John

Short Term

Long Term

Time Period: 12 months

Problem Statement

Company Overview

Reccom.

Analysis

Strategy

Alternatives

Future Plan


S w o t analysis
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


S w o t analysis1
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


Pestel
PESTEL

Jay

Problem Statement

Company Overview

Reccom.

SWOT Analysis

Strategy

Alternatives

Future Plan


Financial analysis
Financial Analysis

Jay

Average Purchase Order Amount: 5.8 million

Problem Statement

Company Overview

Reccom.

SWOT Analysis

Strategy

Alternatives

Future Plan


Financial analysis1
Financial Analysis

Jay

Average Purchase Order Amount: 6.0 million

Problem Statement

Company Overview

Reccom.

SWOT Analysis

Strategy

Alternatives

Future Plan


Financial analysis2
Financial Analysis

Jay

Average Purchase Order Amount: 6.6 million

Problem Statement

Company Overview

Reccom.

SWOT Analysis

Strategy

Alternatives

Future Plan


Financial analysis3
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


Distribution analysis
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


Distribution analysis1
Distribution Analysis

Riley

Region A

Western

Region B Eastern

Problem Statement

Company Overview

Reccom.

SWOT Analysis

Strategy

Alternatives

Future Plan


Distribution analysis2
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


Distribution analysis3
Distribution Analysis

Riley

Problem Statement

Company Overview

Reccom.

SWOT Analysis

Strategy

Alternatives

Future Plan


Evaluation of the alternative
Evaluation of the Alternative

John

Problem Statement

Company Overview

Reccom.

SWOT Analysis

Strategy

Alternatives

Future Plan


Implementation
Implementation

Christine

  • 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


Implementation1
Implementation

Christine

Projected Cost of Plant Development

$1 billion

Marketing Expenses

$10 million

Problem Statement

Company Overview

Reccom.

SWOT Analysis

Strategy

Alternatives

Future Plan


Questions
Questions?

Problem Statement

Company Overview

Reccom.

SWOT Analysis

Strategy

Alternatives

Future Plan


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