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

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

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

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

5. 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)

7. Opportunities to Consolidate
From Midwest
Destinations less than 150 miles apart

8. Opportunities to Consolidate
To Midwest
Origins less than 150 miles apart

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

10. 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

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

12. 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

13. Circle Filter

14. Along the Way

15. Consolidation Opportunities
All Opportunities
Long Haul
Dedicated
From Midwest
To Midwest