2016 Ohio State University Supply Chain Case Competition

1. DFA Supply Chain Case
COMM Consulting Group

2. Agenda
• Decision Overview
• Quantitative Analysis
• Qualitative Analysis
• Summary of Viable Alternative
• Recommendation
• Questions

3. Decision Alternatives
• Do Nothing
• Keep Sparks warehouse and contract 3PL to handle risk and waste associated with
trucking from Sparks to Oakland port
• Keep Sparks warehouse, but use rail connection in Reno, Nevada during high risk times
of inclement weather (Nov-March) to hedge risk associated with dangerous path
• Move warehouse facilities to Oakland Port

5. Cost Analysis
Quantitative Analysis
Current Situation Alternative Option
Storage, Handling, Loading, and Unloading Costs per pallet: $15 $33
Monthly export loading flow in Containers 120 96
Cost of Shipping Fallon to Sparks 358 N/A
Oakland to Sparks Nevada Round Trip Cost per Truck $1,320 N/A
Fallon to Oakland Round Trip Cost per Truck N/A $1,475
Cost to ship to SE Asia per month 48,000 38,400
Containers to Columbia 28,800 23,040
Cost of round trip to Oakland per month $201,360 $177,000

6. Alternative
provides annual
cost savings of
$113,760 or
.0018/lb
Quantitative Analysis
Monthly:
Current Situation
Trucking Cost $201,360
Handling and holding cost $25,200
Export Shipping $76,800
$303,360
Alternative Option
Trucking Cost $177,000
Handling and holding cost $55,440
Export Shipping $61,440
$293,880

7. DFA Competitive Priorities
• Customer Oriented
• Global Mindset
• Focused on the Future
Qualitative Analysis

8. Qualitative Analysis
• Lead Time
• Risk
• Customer Satisfaction
• Ability to grow

9. Decision Summary
Contract forward warehouse in Oakland
• Less Expensive
• Shorter Lead Times
• Reduces Risk
• Ability to grow in the future