1. TDL & Exports Regional Intermediary Public/Private Partnership Model RecommendationWorkshop Three - June 10, 2011 Sponsored by New Economy Initiative Hosted by Detroit Regional Chamber and Michigan State University
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3. We are encouraged by the enthusiasm of all stakeholders to contribute to and continue with this important economic development and new jobs creation project
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5. Regional Intermediary Recommendation Workshop Guidelines: All participants will give the meeting our full attention, positive energy and commitment to the project All participants will be open, candid and honest and allow others to do the same Respect will be the foremost goal of all participants; we will center on issues, not personalities All participants will center first on gaining understanding, second on convincing others All input raised will be captured for future use and shared with all attendees Think FUTURE; Think strategic; Think CAN DO !
7. Workshop Three Agenda Welcome and Introductions Synthesize findings from survey Finalize Regional Intermediary characteristics Planning for implementation
8. Workshop Follow-Up Survey Background… Conducted online using surveymonkey.com 139 workshop attendees & invitees were asked to complete the survey 45 people completed the survey (32%)
16. Survey Results: Hub Capabilities – Importance and Current Performance 1 = not important 5 = very important 1 = lagging 3 = average 5 = above average
17. Survey Results: Hub Capabilities – Importance and Current Performance 1 = not important 5 = very important 1 = lagging 3 = average 5 = above average
18. Survey Results: Performance vs. Importance 1 = lagging 3 = average 5 = above average 1 = not important 5 = very important
21. Survey Results: Hub Growth Perception Question wording: “Assuming we overcome these obstacles, how realistic do you think it is that this region, building on its current supply chain capabilities, will grow in success as a recognized supply chain hub?”
23. Survey Results:Strengths to Emphasize Airport Supply chain skilled labor Interstate highways International trade corridor Border crossing facilities Railroad network Understand global landscape Identifying strategic corridors Hub operations cost
24. Survey Take Aways:Largest Gaps in Performance Highest priority capabilities with the largest gaps in performance include: Use of marketing Streamlined government Strategic transportation plan Leveraging business partnerships Community involvement
25. Survey Take Aways:Major Obstacles to Implementation Major obstacles to implementation include: Cultural mindset Infrastructure funding Regional collaboration Global perception of region
26. Survey Take Aways Local initiatives to close the gap in capability performance and overcome obstacles: Local marketing and community outreach Streamlined government and regional collaboration Pilot implementation focused on improving the leveraging of business partnerships Multi-state and multi-nation collaboration initiatives to close the gap in capability performance and overcome obstacles: Create multi-state and multi-nation collaboration board Create multi-state and multi-nation strategic supply chain asset, infrastructure, and transportation plan Create global branding, marketing and communication plan
59. Survey Synthesize How would you synthesize the results of the survey?
60. Workshop Three Agenda Welcome and Introductions Synthesize findings from survey Finalize Regional Intermediary characteristics Vision Capabilities and key strengths Targeted industries Performance metrics Structure of operating board Critical success factors Planning for implementation
61. Rationale for our Regional Intermediary Model Recommendation The Regional Intermediary recommendation is not an exact model, but rather identifies key characteristics offered by several models The Regional Intermediary recommendation relies on a hybrid model approach similar to the Public/Private Partnership Model The Regional Intermediary recommendation will not be implemented from scratch, but should leverage existing organizations as feasible
62. Organizational Model Recommendation: Public / Private Partnership Model Provide public sector advantages of good Infrastructure and support capabilities Provide public sector advantages of availability of very good human, land, supplier, and financial capital Provide private sector value propositions which offer economic competitiveness and lowest total cost to serve Provide private sector the advantage of serving global markets
63. Public / Private Partnership Model: Vision World class cross-border distribution hub Air freight to motor freight Rail freight to motor freight Value added services Lowest overall cost to serve for industry partners Superior customer service for industry partners and their respective customers State of the art supply chain technology Excellent management and labor talent Win-win-win relationships with industry partners, service providers, and supply chain hub
64. The Bottom Line ! Opportunity Assessment has re-enforced the economic development potential for the Hub 66,000 new jobs created Doing nothing may run the risk of additional jobs lost Maintaining momentum over the next few months will be critical to project success Each of us will play a key role to assure 66,000 new jobs are created…..starting today !
65. Public / Private Partnership Model: Capabilities Supply Chain Expertise Economic competitiveness and lowest supply chain cost to serve Supply chain sustainability Infrastructure / modal support Economic Development Competitive tax environment Ability to serve global markets Develop supply chain solutions Strategic Infrastructure / Intermediary Funding Infrastructure support and capabilities Collaboration Joint commission or authority Strategic alliances
66. Public/Private Partnership Model: Strengths and Unique Offerings Cross-border distribution hub and NAFTA thoroughfare away from congestion of Chicago-Toronto Trans-loading heavy imports from Canadian ports to U.S. using railroads Good airport, highway, and rail infrastructure with limited congestion and very good reliability Skilled Export, TDL management and supply chain labor talent is readily available Economical outbound motor carrier capacity Availability and affordable land Unique Offerings of Our Public/Private Model: Provide supply chain value propositions to attract companies Commitment from State of Michigan to make this happen
67. Summary of Key Strengths for Public/Private Partnership Model Multi-state and multi-country Public provide infrastructure; private run it Existing base of excellent service providers Implement the infrastructure, talent, and geographic potential that currently exists
68. Public/Private Partnership Model: Targeted Industries Heavy Manufacturing Automotive renewal Alternative energy Carbon fiber manufacturing Chemical processing Defense Electronics – industrial Light Manufacturing Food processing Medical technologies Water technologies Distribution Beverage and alcohol distribution Retail importing and value add Waste management
70. Public/Private Partnership Model:Proposed Metrics Number of new jobs created by industry (Both Direct & Indirect jobs) Economic activity benefits by industry (Dollars) The number of new businesses attracted Business retention rate (New and Existing) Investment amounts with ratio: Public vs. Private Inbound/Outbound shipments (Volume and Value)
71. Public/Private Partnership Model:Proposed Board Structure Board representation from Canada, OH and MI Leadership from both public and private sectors Need private sector champion to take ownership, overcome obstacles and drive change Small executive board supported by appropriate advisory boards and committees Create multigenerational commitment (regardless of current administration in office) Seek foundations and venture capital support
72. Public/Private Partnership Model:Critical Success Factors Public sector funding Integrated Regional and Statewide asset strategy Commitment from a major logistics provider or shipper as a catalyst to Economic Development Economic Development driven by aggressive lead management approach across all stakeholders to attract shippers and carriers Available physical capacity (Land, Facilities, People) to support growth Hub supply chain competitive advantages
73. Regional Intermediary: Discussion What suggested changes or extensions are needed to enhance our Public/Private Partnership Model characteristics? Vision Capabilities and Strengths Targeted Industries Performance Metrics Structure of Operating Board Critical Success Factors
87. Local Initiatives and Multi-National and Multi-State Initiatives are Keys to Success What suggestions or candidates do you recommend for the proposed Regional Intermediary (Local) organizational model? What suggestions or candidates do you recommend for the proposed Multi-Nation and Multi-State organizational model?
88. Workshop Three Agenda Welcome and Introductions Synthesize findings from survey Finalize Regional Intermediary characteristics Planning for implementation
89. Implementation Planning Regional Intermediary design recommendation Intermediary Design Workshop One: March 11 Intermediary Workshop Two: April 29 Implementation Workshop Three: June 10 Piloting the implementation approach with partners April 1 Symposium Joint Workshop with MEDC: TBA Launch pilots with interested industry partners Education, sharing of findings, and communications Workshop Sessions with Ohio and Canada Community Outreach meetings/workshops Global Trade and Transportation: Next Steps
90. Implementation Planning Regional Intermediary focus to assure multi-state and multi-nation collaboration: Secure executive sponsorship from all jurisdictions Create a common board for regional collaboration Develop global branding, marketing and communication plan Creation of a regional strategic supply chain asset, infrastructure, and transportation plan Design SCM assets framework to complement supply chain strategy and future growth Assure SCM assets enable pilots and industry growth Design SCM assets framework to eliminate redundancy across assets while enabling future growth
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