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Transportation, Distribution & Logistics for Competitive Advantage. John Sullivan Director, Center for Advanced Manufacturing, Purdue University Scott Whitlock President, Flexware Innovation. Manufacturers that will thrive in the new economy will be the ones that innovate in product,

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transportation distribution logistics for competitive advantage

Transportation, Distribution & LogisticsforCompetitive Advantage

John Sullivan

Director, Center for Advanced Manufacturing, Purdue University

Scott Whitlock

President, Flexware Innovation

slide2

Manufacturers that will thrive in the new economy will be the ones that innovate in

    • product,
    • process,
    • marketing and
    • distribution
  • “Without Innovation there is no life after lean”
  • Al Frink, Manufacturing “Czar”
      • Assistant Secretary for Manufacturing and Services
      • U.S. Department of Commerce

SME Chapter 268 Presentation, 1/27/05

indiana s competitive advantage
Indiana’s Competitive Advantage
  • Location, location, location
    • Crossroads of America
    • Rail, Air, Ports, Key Roads (N/S, E/W)
  • Strong Manufacturing Capabilities
  • Excellent Universities

SME Chapter 268 Presentation, 1/27/05

to compete effectively in the supply chain of tomorrow
To compete effectively inthe supply chain of tomorrow…
  • Lead time is critical
  • Technology is essential
  • Business environment must be flexible

SME Chapter 268 Presentation, 1/27/05

what your supply network will demand
What your Supply Network will demand
  • Glass Supply Chain – See Inventories
  • Product Information – Part of the product
  • Serialization – Aiding in Warranty & Security Issues
    • RFID & EPC Global Standards

SME Chapter 268 Presentation, 1/27/05

supply chain scor model

Plan

Supply Chain SCOR Model

Main business processes

Customer’s Customer

Supplier’s Supplier

Internal or external

Internal or external

Enterprise

Customer

Supplier

Source

Make

Deliver

D

D

S

M

S

M

D

S

Source; Pittiglio Rabin Todd & McGrath Supply Chain Council, Inc. Pittsburgh, Pennsylvania 412 781 3255

SME Chapter 268 Presentation, 1/27/05

supply chain scor model1

Plan

Supply Chain SCOR Model

Customer’s Customer

Supplier’s Supplier

Internal or external

Internal or external

Enterprise

Customer

Supplier

Source

Make

Deliver

D

D

S

M

S

M

D

S

Source; Pittiglio Rabin Todd & McGrath Supply Chain Council, Inc. Pittsburgh, Pennsylvania 412 781 3255

SME Chapter 268 Presentation, 1/27/05

the manufacturing supply chain is evolving inventory to sales ratio for manufacturing

2

1.9

1.8

1.7

1.6

’54-’80

1.71 average

1.5

1.4

1.3

1.2

1.1

2004

1.24

1

1960

1958

1962

1964

1966

1968

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1998

2000

2002

2004

1996

The Manufacturing Supply Chain is EvolvingInventory to Sales Ratio for Manufacturing

Source: Census Bureau

SME Chapter 268 Presentation, 1/27/05

indiana tdl opportunities
Indiana TDL Opportunities
  • Mass Customization
    • Customers are demanding customized products
    • Postponing final manufacturing/assembly improves profitability
  • Add value to products during distribution
    • Manufacturing operations located around distribution centers
    • Manufacturing operations located within distribution centers
    • Mobile Manufacturing

Final Customization in Indiana

The Crossroads of America

SME Chapter 268 Presentation, 1/27/05

slide10

Processor

Producer

Stamping

Warehouse

SME Chapter 268 Presentation, 1/27/05

what do we need to do
What do we need to do?
  • Engage in meaningful strategic planning
    • Both at the State and industry level
  • Increase our technological, financial and managerial strengths
  • Integrate our supply chains to reduce costs and improve performance
  • Get started with some pilot projects

SME Chapter 268 Presentation, 1/27/05

thank you
Thank you!

SME Chapter 268 Presentation, 1/27/05