Otis and Sullair Consolidation

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Presentation transcript:

Otis and Sullair Consolidation Team Patel Abhishek Chandrasekhar Jon Hayes Kelly Jeon Pulin Patel Arshnoor Singh Christy Starner

Agenda Company Description Project Description Opportunities for Consolidation Conclusions Next Steps Questions

Otis Manufacture/Distribute elevators and elevator parts One primary DC (Woodridge, IL) Three regional DCs Two types of shipments Dedicated Long haul

Sullair Manufacture/Distribute compressed air systems One primary DC (Michigan City, IN) ~80 miles from Woodridge, IL Use third party shippers

Project Description Otis and Sullair: subsidiaries of UTC Otis facility in Woodridge, IL close to Sullair facility in Michigan City, IN Identify opportunities to consolidate shipments from the two companies Shipments from the Midwest Shipments to the Midwest Out and back opportunities (Dedicated Fleet)

Opportunities to Consolidate From Midwest Destinations less than 150 miles apart

Opportunities to Consolidate To Midwest Origins less than 150 miles apart

Opportunities to Consolidate Dedicated Fleet Deliveries from Midwest to locations that coincide with shipments to Midwest +/- Two days ~$5000

Conclusions From Midwest includes greatest opportunity Focus on +/- One day for Long Haul Consolidation Best Bang for Buck ~$54,ooo Use +/- Two days for Dedicated Fleet Savings still small: ~$5,000

Next Steps Evaluate costs associated with consolidation Locations along the route Combining LTL shipments to create full truckloads Consolidate shipments within each company

Sorting the Data Date Destination Province/State Weight (lbs) Freight Charges X 6/24/2009 CALGARY AB 220 $122.31 EDMONTON 3923 $2,264.07   SAINT PAUL MN 210 $60.42 6/25/2009 SASKATOON SK 190 $115.00 209 $118.44 6/26/2009 FT MCMURRAY 31104 $7,038.46 26823

Circle Filter

Along the Way

Consolidation Opportunities All Opportunities Long Haul Dedicated From Midwest To Midwest