3 slide powerpoint (Supply chain) (Due in 5 hours)
budsimpson
RectorSildes.pptxLogistics Consultation Plan
Presented by Group 3
MGT 5903
GROUP 3
Agenda
Introduction
Background and Client Profile
Issue 1: Procurement and Delivery of Supplies
Issue 2: Logistics Tool Recommendation
Issue 3: Warehouse Development
Conclusion
MGT 5903
GROUP 3
Client Profile
INTRODUCTION AND BACKGROUND
Rector Property Management (RPM) is a real estate company that acquires, renovates, and leases properties to citizens of Champaign-Urbana, Illinois. The CEO developed an acquisition strategy that focuses on buying properties in poor condition that are massively undervalued. He supervises the renovation and manages the project until complete, and then personally markets and leases each property. This business model was effective, but the company has grown to over 50 leases. His model for forecasting and distribution is no longer efficient.
RPM TODAY
The business currently conducts 12-14 renovations annually. Jason would like to triple that number over the next two years and needs a distribution system to do it. He also wants to reduce cost of materials. RPM purchased its first commercial property and will have 900 square feet of space for inventory.
BUSINESS GOALS
Increase annual goal from 12 renovations per year to 30 per year by 2019
Develop assessment and forecasting system to enhance renovation efficiency
Emplace small warehouse to allow cost savings on bulk items (e.g. flooring)
CEO shifts to a strategic management role working less than 15 hours per week
MGT 5903
GROUP 3
Project and Logistics Assessment
Sub Issue:
CEO lacks a tool to conduct thorough inspection of projects and makes multiple trips to buy supplies. How can he conduct throughout assessment and hand off product to project manager and procurement officer to conduct business?
Data Collection:
Primary Data:
Interviews with CEO and CFO conducted to thoroughly understand issue
Survey subcontractors to determine their complaints and determine any trends.
Secondary Data:
Research industry best practices
Research Conducted:
Conducted thorough interview to develop purpose of tool and understanding of the mission.
Conducting research of secondary data to determine best practices in the industry.
Initial Recommendation:
Existing Project Management APP
MGT 5903
GROUP 3
Industry Best Practices
Site Assessment
Businesses use different techniques and systems to capture requirements.
Buildertrend and CoConstruct are two incredibly popular systems in the remodeling industry.
Hand written notes or digital lists are another popular model for smaller companies
Labor and Material Identification
Historical Data and Project Manager Experience
Interviews and research with managers revealed that most rely on prior experience to determine costs and requirements.
Most Property Managers tend to have certain criteria in procurement, and renovation processes are simliar
Procurement and Labor Assignment
Other group members will discuss procurement and distribution strategies
RPM Deviations from Industry Best Practices
Smaller companies require subcontractors to provide their own materials
Larger companies will identify responsible employee to procure all supplies
MGT 5903
GROUP 3
Recommendations
Operations:
Continue using current excel documents to oversee property management, marketing, and leasing. Look at switching to Appfolio once we reach 100 properties.
Project Management:
Buildertrend offers all features desired to capture resource requirements (See pictures)
Manage Tasks with pictures (with immediate notification)
Capture all material and labor costs
Initial Recommendation:
Writable PDF File capturing labor and resource requirements
Existing Project Management APP
Accounting:
Buildertrend links directly to QuickBooks. Two Examples
Hourly employees will be transferred to payroll. It will also differentiate between LLCs/Properties
Complete transparency for each property based on hours, maintenance calls, and operational jobs
MGT 5903
GROUP 3
