Supply Chain analysis at

Purdue UniversityTeam Name: Panda Elites

Xian ZhuJunming Liu

Yu HeYangon Chen

GSCMI 2013 Case Competition 2

Agenda (Xian Zhu)

Recommendations

Proposals

Data Analysis

Concerns

Objectives

GSCMI 2013 Case Competition 3

Objectives (Xian Zhu)

Short-term To balance the performance between the west

& east coasts Lower the Transportation Cost in the western sites; Lower the Inventory Cost in the western sites

Long-term Support the growth of the whole Eaton Power

Distribution Systems Lean operation

GSCMI 2013 Case Competition 4

Concerns (Xian Zhu) From the Data

High Turnover rate of Dallas SVC The huge monthly variation of demand The frequent usage of premium freight The limited capacity of W87 & DBN

GSCMI 2013 Case Competition 5

Data Analysis (Junming Liu)

Cost of Good Sold

GSCMI 2013 Case Competition 6

Data Analysis (Junming Liu)

Turnover

Annualize COGS

Extreme case of Dallas-SVT

GSCMI 2013 Case Competition 7

Data Analysis (Junming Liu)

Highlight on DIO

Atlanta-SAT April DIO = 1537 days Chicago-SVT May DIO = 3862 days Houston-SVC Feb. DIO = 1052 days

GSCMI 2013 Case Competition 8

Data Analysis (Junming Liu)

Days of Inventory Outstanding

Mean 49.11 daysSD = 7.65 days

GSCMI 2013 Case Competition 9

Data Analysis (Junming Liu)

Trend on COGS (Sales)

GSCMI 2013 Case Competition 10

Data Analysis (Junming Liu)

High COGS Fluctuation

No Pattern on Demand

Low Responsiveness to the Change of Demand

GSCMI 2013 Case Competition 11

Data Analysis (Junming Liu)

Overall Trend

GSCMI 2013 Case Competition 12

Data Analysis (Junming Liu)

Premium Ship Percentage

Chicago, Dallas, San Francisco: High Percentage

GSCMI 2013 Case Competition 13

Data Analysis (Junming Liu)

Reasons Distance with

Suppliers Demand Varies

Local Economy Unemployment New Construction

Extreme Case for Dallas-SVC

GSCMI 2013 Case Competition 14

Data Analysis (Junming Liu)

Percentage of Order by Source

GSCMI 2013 Case Competition 15

Data Analysis (Junming Liu)

Los Angeles (Best Case)1

2

3

4

1. Order from Closer Sources2. Average Premium Shipping Percentage3. Balanced Order Sources4. Highly Utilization of W875. Highest Purchases6. High COGS (Demand)

GSCMI 2013 Case Competition 16

Data Analysis (Junming Liu)

In Addition, Low Capacity of Warehouse

GSCMI 2013 Case Competition 17

Proposals (Yu He)We suggest to build a major warehouse to enhance the whole supply chain system.

Our Reasons:1. W87 is relatively useless to Electrical Sector.

2. Electrical Sector has no priority.3. Relieve W34 and W87’s pressure.4. Shorten distance of supply to some CMSC sites.5. Increasing trend of demand in the future.

Fayetteville, NC Sumter, SC W34 W87 DBN CDCTOTAL 22.15% 13.57% 21.95% 3.92% 2.07% 4.15%

GSCMI 2013 Case Competition 18

Proposals (Yu He) Adjust three-day rotation

ABC Classifications

GSCMI 2013 Case Competition 19

Recommendations (Yanjun Chen) Kanban card- It’s time to change!

LTL Problem

Demand Forecasting

Aggregate Planning-- Level strategy

Looking for more external suppliers in West Coast

GSCMI 2013 Case Competition 20

Summary (Yanjun Chen)

Problem Analysis Solution

GSCMI 2013 Case Competition 21

Thank you!