2. Falcon Mfg LLC Supply Chain Services
Benefits
• Allows for freight savings on
total freight bill for each project
• Equipment delivery allows for
labor savings on job site.
• Elimination of any current
warehouse facility for
equipment consolidation.
• No lost equipment or missed
shipments. If a vendor misses a
shipment, it will be identified
prior to window delivery date.
• No expedited freight. Missed
shipments will be identified
early, allowing time for
correcting the missed shipment
without expediting freight.
• On site Falcon logistics
coordinator will have the ability
to schedule, change, or modify
shipments.
• On-site tracking board, based on
construction documents.
• On-site Falcon logistics
coordinator will be a salaried
employee, so they will be on-site
when needed. 24/7/365
Availability
• VAS – Additional ‘Value-Added
Services’ available. Example:
Fixture assembly, kitting, repair,
etc. Quicker and Cheaper than
on job site.
• Processing freight claims
3. Falcon Mfg LLC Supply Chain Services
Management Model
• Consolidated Logistics – Falcon coordinates shipments across multiple
suppliers, projects, and vendor locations using existing Falcon supply routes to
provide the lowest possible freight costs. The freight cost, which is something the
customer must pay anyway, is the only service the customer is invoiced for.
• Warehousing – world-class inventory management systems to track and
maintain inventory, at no cost to the customer.
• Distribution – Falcon utilizes its own trucks for JIT (Just-in-Time) deliveries to
construction projects when the items are needed, at no cost to the customer.
• Systems –
– Logistics System—move all equipment from hundreds of locations into
Falcon’s warehouse, then to project location
– Inventory Management – Made2Manage, ERP software with web capability
for customer tracking and reporting.
– Project Management—Items are delivered to the store JIT, on schedule
• Project Management – Falcon logistics project managers located on job site and
have ability to manage the project through Falcon’s systems, at no cost.
4. Falcon Mfg LLC Supply Chain Services
Delivery Model
Suppliers
Staging
Point
Project 3
Consolidated into
full truckload.
Project 2
Project 4
Project 5
Project 1
• Falcon coordinates and handles execution of all shipments.
• On-site Falcon personnel coordinate with WDC for by-the-hour delivery for all
equipment. Allows for flexible timing and install depending on project pace
as well as greater security of equipment.
• On site Falcon personnel receive equipment as it arrives.
• All equipment is tracked online on Falcon’s website. Customers and
construction personnel have access to view/edit the equipment list at all
times.
5. Falcon Mfg LLC Supply Chain Services
Logistics
• Shipments coordinated by Falcon from across the globe.
• Arrive at Falcon warehouse prior to window receiving date (damage
identified prior to jobsite).
• Items inventoried (no loss or vandalism)
• Items shipped from staging point to job-site on a just-in-time basis
10. Falcon Mfg LLC Supply Chain Services
Implementation
• Potential Customer provides equipment list to Falcon for Freight Cost
Proposal
• Allows Falcon to provide detailed cost data.
• Detailed Freight Cost proposal submitted to Customer five days after
receipt of equipment list
• Allows Customer to analyze Falcon proposal vs. budget
• If proposal is satisfactory, designate Falcon as the Logistics Provider on
the Equipment PO.
• Allows Falcon to work on Customer’s behalf to reduce freight cost
• Customer begins saving money on Freight Consolidation!
11. Falcon Mfg LLC Supply Chain Services
Case Study (actual )
New Store Specifics
• Avg. Equip. Spend Per New Store:
$6 MM
• Budgeted Freight Cost for Fixtures
& Equip: 5%
• Per Store Budgeted Freight Cost:
$300,000
• Per Store Cost for Falcon’s Model:
$270,000 (10% Savings)
Savings
• New stores opened 2 days earlier
due to added efficiencies on the
job-site from Falcon’s model
• $44K average budgeted savings
on damaged equipment for each
of the new stores
• Est. $10K-$15K savings on
expedited freight
• $30K labor savings on job site
from original General
Contractor’s bid (fixture
installation & eliminated
equipment receiving portion of
bid)
12. Falcon Mfg LLC Supply Chain Services
Case Study (actual)
Remodel Specifics
• Avg. Fixture Spend Per Remodel:
$1 MM
• Budgeted Freight Cost for Fixtures
& Equip: 5%
• Avg. Budgeted Freight Cost:
$50,000
• Avg. Cost for Falcon’s Model:
$42,500 (15% freight savings)
Savings
• Labor Savings on job site (ex: 3
skilled trades to install one
refrigerated case)
• Store Operations Efficiency –
Since stores are still in operation
during remodels, the equipment
kept out of the stores until
installation (normal deliveries
take place at 10 pm for remodels)
• Removing old equipment – Falcon
removes equipment being
replaced and follows disposition
plan to include recycling, re-use,
etc
