Eaton – Power Management

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 Company Overview Reccom. Analysis Strategy Alternatives Future Plan

Company Overview Christine Problem Statement Company Overview Reccom. Analysis Strategy Alternatives Future Plan

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 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 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 Jay Problem Statement Company Overview Reccom. SWOT Analysis Strategy Alternatives Future Plan

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

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

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

Evaluation of the Alternative John Problem Statement Company Overview Reccom. SWOT Analysis Strategy Alternatives Future Plan

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

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

Eaton – Power Management