team name: hmx consulting 1 st round room: rawls 4073 3:20pm – 3:40pm malcolm hooks

Team Name: HMX Consulting1st Round Room: RAWLS 4073

3:20pm – 3:40pmMalcolm Hooks

Yueyi Ma Yidi Xu

HMX Consulting The ∙∙ Solution ∙∙ People

Yidi Xu

2014 Case Competition -- HMX Consulting 1

Team Introduction

Yueyi MaJunior

Accountancy

Yidi XuJunior

Industrial Management

Malcolm HooksSenior

Business Mathematics

Yidi Xu


Case Overview Focus Operation

s AnalysisRecommen

dationsImplement

ations

Agenda

Yidi Xu


Features DetailsNational-wide Distributed Sites

16 sites across the United States

Two centers in CMSC SAT and SVCTwo major warehouses and One small warehouse

W34 at SC, W87 at CA, small warehouse DBN at Dallas

Two major plants One at NC, one at SCDistribution Center (CDC)

At NC, distribute parts from external supplier and plants

Increasing demand from high-tech companies

Short Lead time required

ChallengesHigh inventory levelHigh Premium FreightLong Lead timeFrequently Stock out at W87 and DBN

Case Overview Focus Operations Analysis

Recommendations

Implementations

Case Overview

Yidi Xu



Recommendations

Implementations

Objectives Target ProblemsReduce overall inventory level - High fluctuation in inventory

- High holding costsReduce premium shipment - Frequently use of air freightReduce lead time - Long lead time according to the

freight schedule- Losing potential customers

Avoid stock out in warehouses - Frequently stock out will hinder expansion on market share

Focus


Case Overview Focus Operations Analysis Recommendations Implementations

-

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

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

Total Order Demand, Average Inventory Level, Premium Shipment

Total Order Demand Average Inventory Level Premium Shipment

Dallas -SVCLos Angeles - SAT

San Francisco- SAT

Operation Analysis

Yueyi Ma



Recommendations

Implementations

Operation Analysis

Yueyi Ma


North South West -

500,000

1,000,000 1,500,000 2,000,000

2,500,000 3,000,000 3,500,000 4,000,000

4,500,000 5,000,000

Order by Premium Ship

North South West 5,400,000

5,600,000

5,800,000

6,000,000

6,200,000

6,400,000

6,600,000

6,800,000

7,000,000

7,200,000

Average Inventory Level


Recommendations

Implementations

Operation Analysis

Yueyi Ma



Recommendations

Implementations

Short term Solutions Why?Regionalize the Electronic

Sector - Regionalization will allow for a basis for improved logistics

Expand warehouse W87 - Want to increase capacity for sustainable growth

Expand Dallas-DBN into a warehouse

- Will elevate pressure on W87’s expansion

Expand Inventory in warehouse W34

- W34 is between two major plants Fayetteville, NC and Sumter, SC

Short-term Recommendations

1-3 yearsMalcolm Hooks


Short term Implementations How?

Regionalize the Electronic Sector

- Divide network into 3 regional areas (North, South, West)

Expand warehouse W87 - Build DBN near Phoenix site to help alleviate pressure on W87

Expand Dallas-DBN into a warehouse

- Expand existing warehouse starting in October

Expand Inventory in warehouse W34

-Allow W34 to carry more than just standard products


Recommendations

Implementations

Short-term Implementations



Long term Solutions Why?

Build new fully functional plant near Las Vegas, NV

- Las Vegas, NV fits the population requirement and has land at discount

Introduce New Shipping Schedule

- New schedule will improve overall efficiencies and reduce Lead Time

Discontinue Partnership with CDC

- With new plant, there is no need for the third party to consolidate shipments form East to West


Recommendations

Implementations

Long-Term Recommendations




Recommendations

Implementations

Long term Implementations How?

Build new fully functional plant near Las Vegas, NV

- Once DBN is completed, start work on new plant near Las Vegas, NV

Introduce New Shipping Schedule

- Las Vegas, NV (West)- Fayetteville, NC (North)- Sumter, SC (South)

Discontinue Partnership with CDC

- Discontinue Partnership once Las Vegas plant is completed.

Long-Term Implementations5 -10 years Malcolm

Hooks



Recommendations

Implementations

Thank You



Recommendations

Implementations

Appendix




Recommendations

Implementations

Current shipping Schedule

Day 1

Day 2

Day 3


AF-1



Recommendations

Implementations

New shipping Schedule

Fayetteville

Sumter

Las Vegas

New Shipping Schedule

- 1 day Lead Time/Order Interval

- Major Warehouse in 3 regions

- No need for 3rd Party CDC


AF-2



Recommendations

Implementations

NEW VS. OLD NETWORK

New Network Current Network

W60W34 W87 Plants(NC, LV, SC)

SouthCMSC’s

NorthCMSC’s

WestCMSC’s

External Suppliers

W34 W87 Plants(NC, LV, SC)

CMSC’sCMSC’s CMSC’s

External Suppliers

CDC1-2 dayLead Time

2-3 dayLead Time


AF-3



Recommendations

Implementations

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

Order by Source

PlantsW34W87CDC & DBN


AF-4



Recommendations

Implementations

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec -

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

Total Demand by Region Per Month

North Total South Total West Total


AF-5

team name: hmx consulting 1 st round room: rawls 4073 3:20pm – 3:40pm malcolm hooks

Documents

new plant

warehouse w34 w34

small warehouse dbn

nv las vegas

existing warehouse

hmx consulting1st round

westlongterm recommendations5

scshortterm recommendations1