1. GSCMI Case Competition:Sustainable Growth through Network Optimization SCM Consulting Peter Jacobson Raudel Medina Javier Arguello Jin Guo

2. West CMSC’s struggle (Peter Jacobson) Supply chain is misaligned with goals of CSCMs in west

3. Eaton’s goals in redesign (Peter Jacobson) Short-term Long-term

4. An agile supply chain(Peter Jacobson)

5. The Solution (Raudel Medina) • Leasing a warehouse in the west coast • Consignment parts • Review/Redesign the Kanban System • Broaden external supplier base • Standardized components/multi-functional parts

6. Solution Analysis (Raudel Medina) • W87 provides small amounts of parts to CMSC sites • “Other” sites account for the inter-site CMSC inefficient product move • Costs of leasing reduces the investment in a permanent site

7. Warehouse Location (Javier Arguello) • 7 locations = 62% of Premium Shipments • Los Angeles and Phoenix minimize transportation costs • W87 is located at Los Angeles • Phoenix has lower leasing cost • Lower labor costs • More opportunities to expand 62% Premium Lease in Phoenix

8. Eaton’s Success Plan (Jin Guo)

9. Other factors (Jin Guo) Uncertain Economic Conditions • Economic slow-down will negatively impact the demand for Eaton’s services • Short-term Lease Contract Project Management Team • Wrong supply chain management team may make the problem worse even with a good supply chain strategy • Select the right team in charge of the project Coordination • Coordination between implementing the new system and satisfying the demand from all sites • Well-designed process to execute the new strategy

10. Summary – Q&A

11. Backup

12. Transportation calculations

13. Transportation calculations

14. Warehouse leasing Source: http://www.loopnet.com/

15. Arizona vs California

16. Shipment trends over year

17. Eaton’s financials