Llenroc Plastic Corporation

1
Llenroc Plastic Corporation
Manufacturing plant in Nashville, TN Distribution
market all over the US
2
Product

• High Pressure Decorative Laminates (HPDL)
• used as surface tops for tables, cabinets,
  counter tops,desks, etc.
• used as alternative to paint, vinyl, tile, wood,
  etc.
• popular due to low cost, high durability and
  variety.

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Product (cont.)

• Constructed from several layers of paper, pressed
  together with high pressure, then covered with a
  top sheet of printed paper

paper
Printed paper
polish
4
Market

• Segments
• Direct Sales Large orders to manufacturers,
  narrow product range
• concerns cost, reliability, delivery.
• Residential Small orders to retail outlets and
  hardware stores
• concerns cost, variety, lead time.
• Specification Large orders to construction
  projects
• concerns cost, customization

5
Market (cont.)
Segments Table 1
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Market (cont.)
Comparative Market Share Table 2
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Market (cont.)
Comparative Market Cost per SqFt Table 3
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Market (cont.)
Comparative Market Cost per SqFt Table 3
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Service
Customer Service Performance Table 5
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Supply Chain
11
Distribution System
12
Data Flow System
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Problems

• Poor off-shelf availability despite high
  inventory investment
• Long promise days to ship from order and often
  fail to meet due dates
• High freight cost
• Single manufacturing plant
• Low gross margin

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Margin Gross
Market driven
Market driven
Problem
15
ABC-Classification
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Llenroc ABC-Classification
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Llenroc ABC-Classification without zero demand
items