There are several data information. Requirement: You could just talk
about certain variables that the company might take a look at in the
future. For example, talk about on hand inventory, inventory related
costs, shipping/handling costs from the data. Basically just talk about
what we might measure, but mention that we still aren’t 100% sure
There are some information might help: (you can rewrite this in another way.)
From our team’s understanding, the end result is to hopefully reduce on hand inventory (in some cases), increase velocity and decrease overall costs for the manufacturing facilities depending on which parts they order.
However, this is where our team’s train-of-thought comes to a
crossroad. Given the number of customers in Caterpillar’s North American
MPN Network and the time allotted to us to complete the project (~3
months), the way we see it, there are two ways to move forward with the
- Analyze all (or a large majority) of the
customers/parts in North America, as shown in the Excel documents you
shared with us. This option would provide analysis that covers a lot of
ground and lead to results that are less detailed and would probably not
be as refined as they could be.
- Analyze a selective,
representative group of customers for the scope of the project (the
specific number can be discussed, we feel that focusing on 10-15 of
Caterpillar’s biggest customers is ideal). These customers would be
chosen based on certain factors, such as: revenue generated, unique
number of parts they order, lead time and geographic location. The
representative group would include customers that are currently
classified as ZPUL, ZSCH and ZCOM.
Our team believes option
(2) would be more optimal for various reasons: Narrowing our sights on a
select group of customers would increase the variety and veracity of
information (turnover rate, capacity, costs etc.) gathered.
Additionally, we want to explore the option of contacting the customers
to inquire more about inventory carrying costs, transportation costs,
ordering method transformation costs, etc; this would likely not be
achievable to a great degree of detail if we were to analyze every
customer in the North American MPN Network. Even though you have
provided us with a price range for each unique part (in one of the Excel
documents), our team believes that any results achieved from utilizing
these numbers would be inconclusive because the price ranges are too
Our team believes option (2) would lead
to an analysis that is more detailed and would provide the groundwork
for Caterpillar going forward in identifying optimal ordering methods
for its other customers.