SupplyLevel Needs PPT

1. e commerce solutions ©
SupplyLevel Introduction – August 2008 ©

2. Introduction
– Owner & SupplyLevel Inc. History
– SupplyLevel Inc. R & D
– Copyright ™©
Supply Chain Costs
– Engineering, Forecasting & Planning
– Warehousing
– Just-in-Time
eCommerce Plus Solutions
– Participation & Collaboration
Conclusions
Questions

3. Introduction
– SupplyLevel Inc. History
• 29 years in the business @ 2003
• AEUSP since 1982 (now 76 Utility members)
• Enersource, Chatham Hydro, Ontario Hydro C&D, EUSA,
BHEC, Bel Volt, SupplyLevel Inc.
– SupplyLevel Inc. R & D
• The “need”
• U Berkley Study
• Ontario Buys 2001
• Results - Collaboration Cost Solutions

4. Supply Chain Costs
◦ Engineering, Forecasting & Planning
◦ Expect what’s going to happen
◦ Executed Forecasting
◦ Planned vs. Unplanned
Warehousing
◦ Costs, Overruns, Depleted, Depreciated, Emergency
Just-in-Time
◦ The dream yet to be fulfilled
◦ Manufacturing, Suppliers, Transportation, Delivery

5. eCommerce Plus Solutions
Participation & Collaboration
◦ The more participation the greater the cost savings
◦ Materials, Hardware, Wire, Cable, Transformers etc.
Predicted Savings
◦ Engineering
◦ Administration
◦ Availability
◦ Delivery
◦ Storage

6. SupplyLevel’s eCommerce Plus Inventory Reduction System
eCommerce Solutions specifically designed for Utility, Gas,
Contractors and Communications
A virtual “Product Pool” store
Turn slow and non-moving stock into cash!
Immediately increase profits, reduce carrying costs
World Wide

7. Profitability has a direct correlation between …
Standard Inventory Items: Items will turn more than two times per year. That
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is, your active or quot;goodquot; inventory.(effective inventory).
Slow-Moving Inventory: Inventory will turn less than one and a half times a
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year. That is, you've used the normal shelf quantity less than 1-1/2 times in the past
12 months (median carrying costs).
Dead Inventory: Inventory with little or no movement or recurring transfers
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during the past 12 months. (extremely costly)
Emergency Stock: Ensure an effectual replacement of product to the client to
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ensure a continued “service level” that meets the “standard”. Items may not turn
even once in 12 months but is required to meet client needs. That is, your
quot;emergencyquot; inventory. (astronomically costly)

9. SupplyLevel Inc.
SupplyLevel
Advantage
•Demand lead time is shorter than supply lead time
•Orders are filled from inventory (product pool)
•Use forecast to produce inventory before demand occurs?
•It is important to forecast accurately, but not always possible!
•Replenishment volume and speed (based on economies of scale)

10. SupplyLevel Focus:
Reduce Supply Chain Management Costs
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Reduce Inventory Levels Instantly!
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Activities Accounting On-Line Records
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– Strategic Financial Gains
– Tactical usage of Stock
– Operational advancement
Supply Chain process integration
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Accounting/Purchasing components integration
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Administration simplification and cost reductions
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Extremely effective and fast trading
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Drastically reduced Inventory costs – analyzed successes on margins
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Drastically reduced carrying costs!
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Dividends to the shareholder – “profits up / stock down”
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Adjusted Margin evaluation … a real measurement of profitability
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Target Inventory Investment vs. Target Inventory Turnover – Success
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11. Turns and Costs:

12. Turns, Cost & Target:
So, what’s the TARGET?
1. Increase turns
2. Decrease slow- moving, dead stock and
emergency stock
3. Increase profits
4. Increase Target returns on Investment
5. Maximize shareholder value

13. A Typical Example:
Let’s assume for a moment that your utility is building the circuit in a subdivision
that requires 1 run of 3 cables for a 3 phase installation 90 meters long.
Your utility generally store reels of 750mcm XLPE cable rated at 30kV, but these
were all but used up on the last subdivision leaving 3 part reels of the same cable.
You have stored these 3 reels of cable, 45 meters each for 4 years now.
These 2 reels are on your books at $117/meter or $5,265.00/reel for a total of
$15,795 plus the empty reel deposit of $400/each.
Ah, but both of these are too short for the new job! The new installation requires
cable to be installed and completed in three weeks!

16. @ 10% PM
@ 5% PM

20. Solution:

21. Solution: