Welcome to Llenroc Plastic Corporation Llenroc Plastic Corporation

Welcome to Llenroc Plastic Corporation

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

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.

Product (cont. ) Constructed from several layers of paper, pressed together with high pressure, then covered with a top sheet of printed paper Printed paper polish

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

Market (cont. ) Segments Table 1

Market (cont. ) Comparative Market Share Table 2

Market (cont. ) Comparative Market Cost per Sq. Ft Table 3

Market (cont. ) Comparative Market Cost per Sq. Ft Table 3

Service Customer Service Performance Table 5

Supply Chain

Distribution System

Data Flow System Central W/H Regional W/H orders OEM Distributors

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

Margin Gross Market driven Sales Price Raw Material Labor and Overhead Manufactured Cost $0. 52 $0. 18 Market driven 0. 13 $0. 31 Problem 0. 02 Freight Delivered Cost Gross Margin $0. 34 $0. 19

ABC-Classification

Llenroc ABC-Classification

Llenroc ABC-Classification without zero demand items