CRAFTING A PERSUASIVE STRATEGY

1. STRATEGIC
RECOMMENDATIONS FOR
MTC
Addressing Net Income Reduction
and Operational Efficiency
By: Orlando Lizarraga
General Manager, Transpak

2. TALKING POINTS:
•MTC faces challenges in logistics, demand planning,
sourcing, and off-site sterilization that impact
profitability.
•Goal: Optimize operations to recover net income,
strengthen supply chain, and improve customer
relationships.
•Strategy combines logistics improvements,
demand-driven production, strategic sourcing,
and partnership development.

3. LOGISTICS & INVENTORY
RECOMMENDATIONS
Key Actions:
• Optimize outbound product flow:
• Consolidate shipments to reduce partial loads.
• Improve warehouse layout and inventory management.
• Reduce trunk stock:
• Maintain only fast-moving items with predictable demand.
• Centralize inventory to reduce carrying costs.
Expected Benefits:
• Lower transportation and holding costs
• Reduced stockouts and excess inventory
• Improved cash flow and net income
[Production/Manufacturing]
│
▼
[Quality Inspection]
│
▼
[Centralized Warehouse / Inventory Staging]
│
▼
[Shipment Consolidation]
(Full Truckload Planning)
│
▼
[Outbound Transportation]
(To Port / Border / USA)
│
▼
[Customer Delivery – Hospitals / Clients]

4. DEMAND FORECASTING &
PRODUCTION PLANNING
• Proposed Forecast Highlights:
• Monthly, customer-specific forecasts for Transpak KY,
Trumbull, Texas, and Atlanta.
• Seasonal adjustments incorporated for peak months.
• Impact on Production & Fulfillment:
• Align production schedules with actual demand.
• Optimize labor and machine utilization.
• Reduce emergency shipments and inventory holding costs.
• Expected Outcome: Improved operational efficiency and
predictable cash flow.

5. 2026 WOODEN CRATES – MONTHLY FORECAST BY CUSTOMER
Month Transpak KY Trumbull Texas Atlanta Total Units
January 820 760 900 840 3,320
February 800 740 880 820 3,240
March 850 780 920 860 3,410
April 870 800 950 890 3,510
May 900 830 980 920 3,630
June 920 850 1,000 940 3,710
July 910 840 990 930 3,670
August 930 860 1,020 960 3,770
September 950 880 1,050 980 3,860
October 970 900 1,080 1,000 3,950
November 940 870 1,040 970 3,820
December 900 830 980 920 3,630
2026 Wooden Crates – Monthly Forecast by Customer

6. STRATEGIC
SUPPLIER
POSITIONING
Key Actions for MTC:
Build trust and reliability with hospital groups.
Maintain high quality and regulatory compliance.
Collaborate proactively with forecasts, inventory, and logistics.
Support cost efficiency and long-term partnerships.
Expected Benefits:
Stable and predictable demand from large hospital groups.
Strengthened relationships and repeat business.
Reduced financial risk and improved net income

7. STRATEGIC
PARTNERSHIP
INITIATIVES
Top Three Initiatives
with Hospitals:
Collaborative Inventory
& Demand Management
– Shared forecasts reduce
stockouts and emergency
orders.
Process Improvement &
Innovation – Improve
packaging, sterilization
workflows, and efficiency.
Joint Training &
Compliance Support –
Train staff, reduce
handling errors, and
ensure regulatory
compliance.
Expected Impact:
Operational efficiency,
cost reduction, and
stronger partnerships.

8. MAKE VS. BUY – OFF-SITE STERILIZATION
Option Advantages Disadvantages
Off-site (Buy) Lower capital investment,
expertise in compliance, scalable
Less control, per-unit cost higher
for high volume, dependent on
external provider
In-house (Make) Greater control, potential long-
term savings, faster turnaround
High capital costs, regulatory
burden, staffing & training
requirements
Comparison:
Recommendation: Continue off-site sterilization due to
lower risk, flexibility, and focus on core competencies.
Impact: Maintains operational efficiency, reduces regulatory
risk, and protects cash flow.

9. FINANCIAL &
OPERATIONAL
IMPACT
Summary of Benefits Across Recommendations:
Logistics optimization lower transportation &
→
warehouse costs
Reduced trunk stock freed working capital
→
Demand-driven production better capacity utilization,
→
fewer emergency costs
Strategic partnerships predictable revenue and long-
→
term contracts
Off-site sterilization regulatory compliance, low capital
→
risk
Overall Outcome: Recovery of net income, improved
profitability, and reduced operational risk.

10. IMPLEMENTATI
ON TIMELINE
Suggested Phases:
0-3 Months: Centralize inventory,
implement demand forecasting, reduce
trunk stock
3-6 Months: Collaborate with
hospitals on inventory and process
initiatives
6-12 Months: Refine production
schedules, monitor savings, strengthen
partnerships

11. MTC STRATEGY IMPLEMENTATION
TIMELINE (12 MONTHS)
Phase Timeframe Key Milestones / Actions
Phase 1 0–3 Months
- Centralize inventory
- Implement monthly demand
forecasting
- Reduce trunk stock
Phase 2 3–6 Months
- Collaborate with hospitals on
inventory and process initiatives
- Optimize shipment consolidation
- Monitor initial cost savings
Phase 3 6–12 Months
- Refine production schedules
- Strengthen strategic partnerships
- Evaluate further operational
improvements and savings

12. CONCLUSION
& STRATEGIC
POSITIONING
MTC can emerge as a trusted,
strategic supplier by combining
operational efficiency with strong
hospital partnerships.
Recommended strategy addresses
net income reduction while
creating long-term value.
Focus areas: logistics, demand
forecasting, strategic partnerships,
and prudent outsourcing
decisions.