1. EATON Meeting the needs of tomorrow Team 8: Dalinala David Qian Lauren Liu Lindsay Peng Najib Yang

2. GSCMI 2013 Case Competition 2 Agenda (Lauren)  Intro and Background  Current process  Problems  Short term strategy  Long term strategy  Conclusion

3. GSCMI 2013 Case Competition 3 Background (Lauren) Eaton Cooperation:  Power management company provides energy efficient solutions  Four main sectors of business: Electrical, Aerospace, Vehicle and Hydraulics  Electrical: Biggest sector that offers electrical solutions including distribution, generation, and quality control equipment, engineering and support services

4. GSCMI 2013 Case Competition 4 Current Process (Lauren) Source from Sustainability Growth through Network Optimization

5. GSCMI 2013 Case Competition 5 Problems (Chenghao) Bottleneck: Shortage of customization products High level of Inventory Long lead time Not meeting customers’ needs

6. GSCMI 2013 Case Competition 6 Problem (Chenghao)

7. GSCMI 2013 Case Competition 7 Problem (Chenghao)

8. GSCMI 2013 Case Competition 8 Problem (Chenghao)

9. GSCMI 2013 Case Competition 9 Short term strategy (Lindsay)  Extend warehouse W87  Subcontract to third-party warehouse

10. GSCMI 2013 Case Competition 10 Short term strategy (Lindsay) Extend warehouse W87 Pros: 1.Improve productivity 2.Less capital investment than building a new warehouse 3.Shorten lead time Risks: 1.Consolidate with existing warehouse 2.Changes in future demand 3.Limitation in location

11. GSCMI 2013 Case Competition 11 Short term strategy (Lindsay) Subcontract to third-party warehouse Pros: 1.More flexible with demand change 2.Easy to implement 3.Alleviate the pressure of W87 and W34 4.Shorten distance to CMSCs Risks: 1.Communication issue 2.Cooperation issue

12. GSCMI 2013 Case Competition 12 Eaton Is Everlasting (Najib)  Western Division Plant – Location!  Rising transportation costs  Increasing demand for products  Population Dynamics

13. GSCMI 2013 Case Competition 13 Mitigating Risk (Najib)  Foreseeable Risks:  High Capital Expenditure  New Efficiencies – Less Need For Support  Time to Reflect Financials  Rebuttles  Infrastructure Foundation  Unlikely To Exceed Demand  PPE Assets vs. Accelerated Depreciation

14. GSCMI 2013 Case Competition 14 Conclusion (Chenghao)  Short term strategy  Extend warehouse  Subcontract to third party warehouse  Long term strategy  Western Division Plant

15. GSCMI 2013 Case Competition 15 Thank you !

16. GSCMI 2013 Case Competition 16 Q&A