Michigan Has A Logistics & Supply Chain Plan! Supply Chain Work Ahead™ The Institute for Supply...

Michigan Has A Logistics & Supply Chain Plan!

Supply Chain Work Ahead™

The Institute for Supply Management – Greater

Grand Rapids

Steve TrechaLSC Strategy Facilitator

President & CEOIntegrated Strategies Inc.

September 9, 2014

2MED1-140904-LSC Intro ISM-Results-c1

© 2014 Integrated Strategies. All rights reserved.

ObjectivesObjectivesIntroduce the LSC Introduce the LSC

Acceleration & Acceleration & Engage IndustryEngage Industry

LSC Outcomes LSC Outcomes Businesses: Businesses:

CompetitivenessCompetitiveness

State and Region:State and Region:Increase JobsIncrease Jobs

Increase InvestmentIncrease Investment

AgendaIntroduction Session

LSC IntroductionLSC Introduction

LSC Strategy & ApproachLSC Strategy & Approach

LSC PrioritiesLSC Priorities

Industry Engagement & ParticipationIndustry Engagement & Participation

Engaging, linking and supporting business competitiveness Engaging, linking and supporting business competitiveness are key to achieving the State’s LSC opportunities are key to achieving the State’s LSC opportunities



Expectations - Ground RulesLeveraging our Talents and this Session

11 The Session belongs to YOU and its success rests with YOU

Seek To Understand

Ask Questions

Success Focus: Success Focus: Accelerating Our SuccessAccelerating Our Successfor Business Competitiveness.for Business Competitiveness.

Success is the Only Option!Success is the Only Option!

22

33

Have Some Fun 44



Executive Summary

4

Steve Trecha, President & CEO, Integrated Strategies, presented Michigan Has A Logistics & Supply Chain Plan to ISM Greater Grand Rapids on Sept 9. Participants rated their overall satisfaction with the session a 4.4 out of 5.0 scale. Thank you for attending the session.

Session Summary

The session introduced attendees to the State of Michigan’s Logistics & Supply Chain Strategic Plan – a proactive, business focused strategy for improving the competitiveness of Michigan companies through reduced costs, reduced cycle times and reduced risks.

Industry participation is key and your engagement is critical to the LSC strategy’s success. The session shared specific actions that companies can take now to participate. Audience feedback was captured using the InterPointTM audience response technology. This is what the respondents had to say:

● 93% had not previously heard about or knew very little about the strategy

● 81% are already using a broad definition of supply chain that includes all activities from customer needs identification through fulfillment of those needs

● 100% of respondents indicated they could accomplish at least one of the proposed actions to engage in the LSC (45% of those respondents indicating they could participate in more than one)

You are key to the success of the LSC Strategy. The LSC is focused on Michigan business’ needs and competitiveness, If you would like to learn or discuss more, please contact Steve Trecha ([email protected]), 517-381-4800 ext. 2190) or Peter Anastor ([email protected]), 517-373-9014



Work Session Results

• Logistics Cost Reductions

• Road/infrastructure improvements

• Over the road truck driver shortage

• How to leverage all of the state’s great assets

Attendee Work Session Expectations included learning how the strategy addresses:



Work Session ResultsParticipant Satisfaction Survey Feedback

Rat

ing

–L

evel

of

Ag

reem

ent

wit

h s

urv

ey q

ues

tio

n

(

x )

5Strongly

Agree

4Agree

3Somewhat

Agree

2Somewhat

Disagree

1Strongly

Disagree

0

X = 4.3 X = 4.3

X = 4.6X = 4.4

X = 4.6X = 4.5 X = 4.4

Questions, with average response rates (N = 23):

Q1- Session objectives met? 4.5Q2- Enhanced understanding? 4.3Q3- Information clear? 4.3Q4- Encouraged participation? 4.6Q5- Facilitated effectively? 4.4Q6- Completed on-time? 4.6Q7- Overall satisfaction? 4.4

Q1Q2 Q3

Q4 Q5Q6

Q7

The State of Michigan LSC Strategy presentation was rated positively with an overall The State of Michigan LSC Strategy presentation was rated positively with an overall satisfaction rating of 4.4/5.0. Primary improvement area is enhancing understanding and satisfaction rating of 4.4/5.0. Primary improvement area is enhancing understanding and clarity of the information.clarity of the information.

GOAL



Work Session ResultsTop 3 Logistics & Supply Chain Challenges

Top challenges cited by attendees included sourcing & supplier Top challenges cited by attendees included sourcing & supplier management and manufacturing waste/cost containment (23% each) management and manufacturing waste/cost containment (23% each)

LSC Challenge#

Responses% of

ResponsesWaste/Cost Containment 5 22.7%Sourcing/Supplier Mgt 5 22.7%Talent Retention 3 13.6%Infrastructure 3 13.6%Import/Export 2 9.1%Shipping/Packaging Standards 2 9.1%Transportation/Freight Consol. 2 9.1%TOTALS 22 100.0%



Welcome! Okay time to test the clickers. Which of the following best describes your role?

A. Purch/SC Staff

B. Purch/SC Manager or Supervisor

C. Director/Executive

D. Student

E. Other

F. Professional Meeting Attendee

A. B. C. D. E. F.

50%

33%

7%3%

0%

7%

Question #1

88% of session participants were purchasing/supply chain staff or 88% of session participants were purchasing/supply chain staff or management. management.



What have you heard about the State’s Logistics & Supply Chain Strategy prior to today?

A. The what?

B. Heard of it, don’t know much

C. I’ve skimmed through it

D. I’ve read and understand it

E. Fully understand/actively leveraging it

A. B. C. D. E.

67%

26%

0%4%4%

Question #2

93% of respondents had not heard of the State’s LSC strategy or knew 93% of respondents had not heard of the State’s LSC strategy or knew very little about the strategy.very little about the strategy.



LSC Introduction

• Business focus: reduce cost, cycle time, risk

• Align, communicate, and collaborate – key stakeholders

• Identify and prioritize specific actions

• Ensure pathway to enable/accelerate industry success

• Leverage our talents and expertise, and have fun

The LSC Strategy implementation kicked off 10-1-13. Acceleration pathway includes:

LSC plan will leverage/integrate/support regional efforts, align with LSC plan will leverage/integrate/support regional efforts, align with other statewide strategy objectives while institutionalizing a positive, other statewide strategy objectives while institutionalizing a positive,

proactive, collaborative transformational approach for success. proactive, collaborative transformational approach for success.

- - You are key to success You are key to success --



Michigan LSC Vision

Provide a collaborative, business-Provide a collaborative, business-focused logistics and supply chain focused logistics and supply chain

ecosystem that ecosystem that lowers costlowers cost, , reduces reduces timetime, and , and removes riskremoves risk



Why Are We Here?

• Global Economy

• Greater Efficiency of Operations

• Total Landed Costs – It’s the Supply Chain

• Acknowledgement of Risk as Element of Business Success

Business Realities

““We Must Take Control of Our Destiny”We Must Take Control of Our Destiny”



World’s World’s AUTOMOTIVE AUTOMOTIVE

capitalcapital

Within 500 miles of almosthalf the U.S. and Canadian market

North America’s most active commercial tradecrossing

9 Accredited Supply Chain Mgt Schools including #1, #5 and #10

#1 ranked most improved state for 2014

Access to 15 international

shipping ports

One of the largest U.S. air

hubs to AsiaTradeTradecapital ofcapital ofNAFTA corridor NAFTA corridor - #1 with - #1 with Canada & #3 Canada & #3 with Mexicowith Mexico

Michigan LSC Profile



What is your definition of supply chain?

A. I don’t have one

B. Transportation

C. Purchasing, Transportation, Warehousing

D. Purchasing, Transportation, Warehousing, Manufacturing

E. Starts with customer needs and includes all activities to meet those needs

A. B. C. D. E.

0% 0%

81%

15%

4%

Question #3

81% of respondents have a broad definition of supply chain beginning 81% of respondents have a broad definition of supply chain beginning with identifying a customer need and all the activities to meet that need.with identifying a customer need and all the activities to meet that need.



Supply Chain DefinitionSupply Chain Vision – Integration of Strategy, Process & People

POSITIVE OUTCOMESPOSITIVE OUTCOMESCustomer Satisfaction – Total Lowest Cost Customer Satisfaction – Total Lowest Cost

Revenue Build – Employee EnrichmentRevenue Build – Employee Enrichment

POSITIVE OUTCOMESPOSITIVE OUTCOMESCustomer Satisfaction – Total Lowest Cost Customer Satisfaction – Total Lowest Cost

Revenue Build – Employee EnrichmentRevenue Build – Employee Enrichment

CustomerCustomerRequirementsRequirements

CustomerCustomerRequirementsRequirements

Information/ Information/ AdvancedAdvanced

TechnologyTechnologyHumanHuman

ResourcesResourcesExecutiveExecutive

LeadershipLeadershipAccountingAccountingand Financeand Finance

S T R A T E G I C P L A N N I N G

SourcingSourcingInboundInbound

TransportationTransportation Warehousing/Warehousing/InventoryInventory

Prod Design & Prod Design & DevelopmentDevelopment CustomerCustomer

Service/Perf.Service/Perf.

Culture/ChangeCulture/ChangeManagementManagement

ProductionProductionPlanning/ControlPlanning/Control

Distribution/ Distribution/ LogisticsLogistics

Production/ Production/ AssemblyAssembly

Sales/QuotingSales/Quoting

Quality/ Quality/ Measurement Measurement

SystemsSystems

Real-Time Planning, Real-Time Planning, Execution, Execution,

Monitoring and Monitoring and MentoringMentoring



Extended Supply Chain Integration of Strategy, Process & People

Note: Draft for content review discussion purposes. Supply chain terminology may vary by OEM, supplier, dealer, other

Opportunity – Create the Extended Supply Chain: Opportunity – Create the Extended Supply Chain: Integration from sales channels, OEM through entire tiered Integration from sales channels, OEM through entire tiered

supply basesupply base



Accelerating ImplementationTwo primary pathways to capture opportunities

PERFORMANCEPERFORMANCEIMPACTIMPACT

PERFORMANCEPERFORMANCEIMPACTIMPACT

Dual pathways accelerate business contributions while institutionalizing Dual pathways accelerate business contributions while institutionalizing advanced collaboration/ transformational strategies, processes and practicesadvanced collaboration/ transformational strategies, processes and practices

Aggressive Pursuit of LSC StrategyAggressive Pursuit of LSC Strategy

• Business Competitiveness Opportunities – Identify, Pilot, Analyze

• State’s Logistic Infrastructure – Identify, Prioritize, Deliver• Automotive Supply Chain Focus – Integrate, Support, Deliver• Other Industries – Identify Supply Chain Linkage

11

Collaborative Transformation ApproachCollaborative Transformation Approach22

• Development of Inclusive Structure

• Competitiveness

• Infrastructure

• Supply Chain Opportunities

• Create: Jobs• Increase: Investment

Reduce: Cost, Cycle Time and RiskIncrease: Profitability

State

Businesses

• Collaborative Structure

• Active Marketing, Communications, and Outreach Strategy



Align – Communicate – Collaborate - Results

Key Implementation Key Implementation Acceleration Acceleration

FeaturesFeatures

-Business is the Business is the customercustomer

-Regions/ Locals Regions/ Locals drive successdrive success

-Support/ Link with Support/ Link with State department State department strategies (MDOT, strategies (MDOT,

DEQ,MDARD)DEQ,MDARD)

- Focus on - Focus on collaboration, collaboration,

remove obstaclesremove obstacles



LSC Priorities6 Month Priorities1. Stakeholder Engagement (You are here!)

2. Pilot Projects

3. Intermodal Facilities

4. Mapping Project

5. Talent

6. State Wide Logistics/Supply Chain Conference Planning

7. Marketing/Communications

8. State government resource training

LSC Priorities – Results Focused



Talent

• Truck Drivers

– Apprenticeship program

• Aligning w/Educational Institutions

– Certification programs

• Managerial• Front Line• Industry Specific

– Universities– Colleges



Pilot Projects• LSC Opportunity Effectiveness Pilot

- Small to medium size manufacturing companies- Expert team would provide quantifiable/qualitative

recommendations- Team could include academics, private consultants,

MMTC, retirees- Cost share arrangement

• Pure Michigan Business Connect- Service Providers- B2B Portal- LSC Summit

• Freight Consolidation Tool (Hold)



Industry Engagement

• Check out the LSC Strategy – copies available

• Register your company as a Pure Michigan Business Connect Company – www.puremichiganb2b.com

• Follow the LSC on LinkedIn – www.linkedin.com/company/michigan-logistics-and-supply-chain

• Share LSC-related success stories from your region/company

• Learn how you can become more involved in the LSC or Accel Pilot Program, contact Steve Trecha ([email protected]) or Peter Anastor ([email protected])

• Ideas ? Participation? Other? – All Welcome

You can play a key role in helping rive the State’s LSC Strategy Forward. Here’s what you can do right now!



Within the next 10 days, I can:

A. Identify at least one LSC success story

B. Identify at least one Accel pilot company candidate

C. Get connected on LinkedIn and PMBC

D. Learn more on how to participate on a team

E. More than 1 of the above

F. None of the above

A. B. C. D. E. F.

0% 0% 0%

45%

14%

41%

Question #4

Thank You! 100% of session attendees indicated they could do at least Thank You! 100% of session attendees indicated they could do at least one of the activities to engage with the LSC. You are key to success!one of the activities to engage with the LSC. You are key to success!



• State is focused on business supply chain

• Collaboration is key to success

• Focus on lower cost, time and risk

• Industry engagement

• Leverage our assets

• Infrastructure is good, but we must get better

Takeaways



Thank You for Your Support!Contact us via LinkedIn

linkedin.com/company/Michigan-logistics-and-supply-chain website: michiganbusiness.org/lsc

Or Talk to meSteve Trecha – LSC Strategy Facilitator

President/CEO Integrated Strategies Inc.

(517) 381-4800 x2190Supply Chain Work Ahead™

Michigan Has A Logistics & Supply Chain Plan! Supply Chain Work Ahead™ The Institute for Supply...

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