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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
3MED1-140904-LSC Intro ISM-Results-c1
© 2014 Integrated Strategies. All rights reserved.
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
4MED1-140904-LSC Intro ISM-Results-c1
© 2014 Integrated Strategies. All rights reserved.
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
5MED1-140904-LSC Intro ISM-Results-c1
© 2014 Integrated Strategies. All rights reserved.
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:
6MED1-140904-LSC Intro ISM-Results-c1
© 2014 Integrated Strategies. All rights reserved.
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
7MED1-140904-LSC Intro ISM-Results-c1
© 2014 Integrated Strategies. All rights reserved.
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%
8MED1-140904-LSC Intro ISM-Results-c1
© 2014 Integrated Strategies. All rights reserved.
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.
9MED1-140904-LSC Intro ISM-Results-c1
© 2014 Integrated Strategies. All rights reserved.
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.
10MED1-140904-LSC Intro ISM-Results-c1
© 2014 Integrated Strategies. All rights reserved.
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 --
11MED1-140904-LSC Intro ISM-Results-c1
© 2014 Integrated Strategies. All rights reserved.
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
12MED1-140904-LSC Intro ISM-Results-c1
© 2014 Integrated Strategies. All rights reserved.
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”
13MED1-140904-LSC Intro ISM-Results-c1
© 2014 Integrated Strategies. All rights reserved.
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
14MED1-140904-LSC Intro ISM-Results-c1
© 2014 Integrated Strategies. All rights reserved.
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.
15MED1-140904-LSC Intro ISM-Results-c1
© 2014 Integrated Strategies. All rights reserved.
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
16MED1-140904-LSC Intro ISM-Results-c1
© 2014 Integrated Strategies. All rights reserved.
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
17MED1-140904-LSC Intro ISM-Results-c1
© 2014 Integrated Strategies. All rights reserved.
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
18MED1-140904-LSC Intro ISM-Results-c1
© 2014 Integrated Strategies. All rights reserved.
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
19MED1-140904-LSC Intro ISM-Results-c1
© 2014 Integrated Strategies. All rights reserved.
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
20MED1-140904-LSC Intro ISM-Results-c1
© 2014 Integrated Strategies. All rights reserved.
Talent
• Truck Drivers
– Apprenticeship program
• Aligning w/Educational Institutions
– Certification programs
• Managerial• Front Line• Industry Specific
– Universities– Colleges
21MED1-140904-LSC Intro ISM-Results-c1
© 2014 Integrated Strategies. All rights reserved.
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)
22MED1-140904-LSC Intro ISM-Results-c1
© 2014 Integrated Strategies. All rights reserved.
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!
23MED1-140904-LSC Intro ISM-Results-c1
© 2014 Integrated Strategies. All rights reserved.
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!
24MED1-140904-LSC Intro ISM-Results-c1
© 2014 Integrated Strategies. All rights reserved.
• 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
25MED1-140904-LSC Intro ISM-Results-c1
© 2014 Integrated Strategies. All rights reserved.
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™