Construction Logistics Project Management:

Savings and Value Through Freight Consolidation

Falcon Mfg LLC Supply Chain Services

Benefits• Allows for freight savings on total

freight bill for each project• Equipment delivery allows for labor

savings on job site. • Elimination of any current

warehouse facility for equipment consolidation.

• No lost equipment or missed shipments. If a vendor misses a shipment, it will be identified prior to window delivery date.

• No expedited freight. Missed shipments will be identified early, allowing time for correcting the missed shipment without expediting freight.

• On site Falcon logistics coordinator will have the ability to schedule, change, or modify shipments.

• On-site tracking board, based on construction documents.

• On-site Falcon logistics coordinator will be a salaried employee, so they will be on-site when needed. 24/7/365 Availability

• VAS – Additional ‘Value-Added Services’ available. Example: Fixture assembly, kitting, repair, etc. Quicker and Cheaper than on job site.

• Processing freight claims

Falcon Mfg LLC Supply Chain Services

Management Model• Consolidated Logistics – Falcon coordinates shipments across multiple suppliers,

projects, and vendor locations using existing Falcon supply routes to provide the lowest possible freight costs. The freight cost, which is something the customer must pay anyway, is the only service the customer is invoiced for.

• Warehousing – world-class inventory management systems to track and maintain inventory, at no cost to the customer.

• Distribution – Falcon utilizes its own trucks for JIT (Just-in-Time) deliveries to construction projects when the items are needed, at no cost to the customer.

• Systems –– Logistics System—move all equipment from hundreds of locations into Falcon’s

warehouse, then to project location– Inventory Management – Made2Manage, ERP software with web capability for

customer tracking and reporting.– Project Management—Items are delivered to the store JIT, on schedule

• Project Management – Falcon logistics project managers located on job site and have ability to manage the project through Falcon’s systems, at no cost.

Falcon Mfg LLC Supply Chain Services

Delivery ModelSuppliers

Staging Point

Project 3Consolidated into full truckload.

Project 2

Project 4

Project 5

Project 1

• Falcon coordinates and handles execution of all shipments.• On-site Falcon personnel coordinate with WDC for by-the-hour delivery for all

equipment. Allows for flexible timing and install depending on project pace as well as greater security of equipment.

• On site Falcon personnel receive equipment as it arrives.• All equipment is tracked online on Falcon’s website. Customers and

construction personnel have access to view/edit the equipment list at all times.

Falcon Mfg LLC Supply Chain Services

Logistics• Shipments coordinated by Falcon from across the globe.• Arrive at Falcon warehouse prior to window receiving date (damage

identified prior to jobsite).• Items inventoried (no loss or vandalism)• Items shipped from staging point to job-site on a just-in-time basis

Inventory Management

Item Master Data can be accessed by “Drill Down” functionality to view detail and Inventory levels.

Inventory Management

Data can be accessed by “Drill Down” functionality

Inventory Management

Images of product can be viewed for reference and ordered or monitor inventory levels

Inventory Management

Inventory levels can be viewed through a product detail “Drill Down” functionality.

Falcon Mfg LLC Supply Chain Services

Implementation• Potential Customer provides equipment list to Falcon for Freight Cost

Proposal• Allows Falcon to provide detailed cost data.

• Detailed Freight Cost proposal submitted to Customer five days after receipt of equipment list• Allows Customer to analyze Falcon proposal vs. budget

• If proposal is satisfactory, designate Falcon as the Logistics Provider on the Equipment PO.• Allows Falcon to work on Customer’s behalf to reduce freight cost

• Customer begins saving money on Freight Consolidation!

Falcon Mfg LLC Supply Chain Services

Case Study (actual )

New Store Specifics• Avg. Equip. Spend Per New Store:

$6 MM

• Budgeted Freight Cost for Fixtures & Equip: 5%

• Per Store Budgeted Freight Cost: $300,000

• Per Store Cost for Falcon’s Model: $270,000 (10% Savings)

Savings• New stores opened 2 days earlier

due to added efficiencies on the job-site from Falcon’s model

• $44K average budgeted savings on damaged equipment for each of the new stores

• Est. $10K-$15K savings on expedited freight

• $30K labor savings on job site from original General Contractor’s bid (fixture installation & eliminated equipment receiving portion of bid)

Falcon Mfg LLC Supply Chain Services

Case Study (actual)

Remodel Specifics• Avg. Fixture Spend Per Remodel:

$1 MM• Budgeted Freight Cost for Fixtures

& Equip: 5%• Avg. Budgeted Freight Cost:

$50,000• Avg. Cost for Falcon’s Model:

$42,500 (15% freight savings)

Savings• Labor Savings on job site (ex: 3

skilled trades to install one refrigerated case)

• Store Operations Efficiency – Since stores are still in operation during remodels, the equipment kept out of the stores until installation (normal deliveries take place at 10 pm for remodels)

• Removing old equipment – Falcon removes equipment being replaced and follows disposition plan to include recycling, re-use, etc