Translinked 75 Day Plan Results

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Translinked 75 Day Plan Results

  1. 1. Transportation, Distribution and Logistics HubResults of Business Case Development 75-Day Plan ImplementationNovember 17, 2011BackgroundThe Detroit Regional Chamber’s transportation, distribution and logistics (TDL) economic development initiative,Translinked, held a meeting on the supply chain network on September 1, 2011 to bring together interested partiesfrom the public and private sector, including members of other TDL initiatives around the region. Over 90 individualsattended the meeting at the Detroit Regional Chamber, representing economic development organizations,educational institutions, local, county, state and Canadian governments, businesses, and others. Representativesfrom Ann Arbor, Detroit, Flint, Lansing, Port Huron, Toledo, Windsor and other areas were present.Creation of the 75-Day PlanFeedback from attendees at the September 1 meeting, as well as from a survey we distributed afterward whichreceived 46 responses, helped shape the activities of the Translinked initiative for the next 75 days. We created a 75-Day Plan, aiming to develop a written value proposition and business case for the increase of freight activity andinvestment in the region, built on three key pillars: private sector engagement, freight study completion, and externaloutreach. The 75-Day Plan document can be downloaded at www.translinkeddetroit.com.AccomplishmentsThrough implementing the 75-Day Plan, Translinked achieved the following results.Private Sector Engagement and Business Case Development: 30+ Conversations withFreight Forwarders, Shippers, Carriers, and Trade AssociationsBy leveraging the Detroit Regional Chamber’s relationships with the business community, we reached out toorganizations that develop and implement supply chain solutions and make decisions about freight. Most of theindividuals we talked to were high-level decision makers, experts in the field of logistics and supply chainmanagement who were enthusiastically willing to share their insight and knowledge with us. One CEO expressed tous that the “subject matter of your research is near and dear to my heart, having been involved in the transportationindustry in this market for over 45 years.”We sat down face-to-face, individually, with representatives from more than 30 organizations. We asked them aseries of questions to gain their insight in several areas. What’s working well for you in our region so far, so we knowthe best way to market our assets? Where do we have room to grow? What would make your life easier from asupply chain perspective? What do we need to do to optimize use of the U.S.-Canada border crossings in our region?Ultimately, what would it take to get more freight traffic and business investment here? 1
  2. 2. Below are the freight forwarders, shippers, carriers, and trade association organizations Translinked engaged during75-Day Plan implementation. 2
  3. 3. Private Sector Engagement and Workforce Development: TDL Employer NeedsAssessmentIn addition to engaging the private sector for value proposition development, Translinked began work to conduct anemployer needs assessment by soliciting TDL workforce input from company human resources executives. An RFP fordevelopment of the TDL Workforce Hub was released September 15, 2011. The Detroit Regional Chamber’srequested services included development and execution of an in-person interview process that would include 35-50top employers in the TDL sector, resulting in a report with recommendations that will facilitate coordination and theexchange of information among TDL employers, TDL educators and training programs, and workers. The report willinclude analysis of current and projected future workforce needs, information on hard-to-fill positions, a descriptionof current recruitment processes, identification of possible skill/training needs of the incumbent workforce,identification of best practices in recruitment/retention and possible development of career ladders withincompanies, and a summary of the gaps between demand and supply of labor in the TDL industry, including low,medium, and high skill levels. The results of this research will be combined with the results of an ongoing regionalTDL and supply chain management training and educational program inventory Translinked is conducting, along witha preliminary survey of TDL employers that Translinked administered in 2010.The Detroit Regional Chamber selected Manpower to complete the TDL employer needs assessment and makerecommendations for the creation of a virtual TDL Workforce Hub, a central resource connecting employers, trainingorganizations, employees, and entrepreneurs through a talent portal. This work will occur in coordination with theWorkforce Intelligence Network (WIN), an NEI and MEDC-funded multi-county talent initiative in southeast Michigan.Work on the needs assessment begins November 17, 2011.Freight Study CompletionTranslinked partnered with TranSystems to conduct a study on freight in the southeast Michigan, northwest Ohio,and southwest Ontario region. The study provides a data-based analysis of how the supply chain market operatescurrently in the region. It gives us a look at where the freight in our region is coming from and where it will end up,the modes by which the freight is traveling, the types of cargo being shipped, and a prediction of what the future offreight in our region will look like. The analysis outlines a roadmap of what is currently working well in the region,and equally importantly, identifies legitimate opportunities for increased freight movement and investment. Theanalysis identifies specific industries and shippers who will benefit. It also highlights value-added services, thecompanies providing them, and how the region can fit into this system. Cost and timing of freight movements arecompared between the region and other alternative regional hubs.TranSystems divided the study into five tasks. Task one provides an analysis of the existing freight flow. This analysisdetermines freight flow patterns (origins, destinations, modes, volume, and value), logistics service requirements andthe implications for the study area. It identifies market sectors and services that offer the greatest potential for theregion. Task two identifies industry trends and opportunities for future growth. This task looks at the potential growthin existing industries in the region as well as other industries that could be attracted to the region, and it determinesthe supply chain and site selection requirements to attract new industries. Task three, a freight forecast, combineseconometric modeling with adjustments for industry trends that may influence domestic and international cargomovement to provide robust and defensible projections for freight movement. Task four provides a comparativeanalysis of our region to other logistics hubs, looking at specific industries to see how this region compares inproviding necessary criteria to attract and provide growth opportunities to these sectors. It also compares the generalcost and timing of freight movements through this region to the cost and timing of freight movements throughalternative routes. Task five, findings and conclusions, represents a synthesis of the freight flow analysis, industrytrend research, and the region’s competitive factors to develop a comprehensive view of the market drivers thatdetermine what freight will move through this region and how the region can capitalize on available future 3
  4. 4. opportunities. These outcomes will serve as the catalyst for engaging other private sector firms. DRC will publish the final report of the study the week of December 5, 2011. External Outreach for Input on Value Proposition Development The region already moves a tremendous amount of freight and includes an impressive array of assets. Working to raise awareness of the region’s potential and reach out to stakeholders for input, the Detroit Regional Chamber attended or presented at these important gatherings to increase recognition of the region’s supply chain value proposition. Eastern Border TMACOG Ohio AIAG Customs Town AASHTO AnnualHalifax Port Days Transportation Conference on Hall Meeting Coalition Workshop FreightGreat Lakes Global Red Hot Locations West Michigan Prima Civitas Radio Freight Gateway GLITTH Summit FDI Seminar in Policy Forum Show Conference Toronto In addition to the external outreach above, contacts were developed and articles pursued at logistics publications such as Transport Topics, Inbound Logistics, and Railway Age. Other, Continuing Activities Regional Collaboration Addressing the need to develop a mechanism for regional collaboration that allows organizations to share information in order to create synergies and avoid duplication of efforts while advancing toward the common goal of job creation and investment, Translinked is working to on products that will facilitate this activity. • Common calendar – Set to be housed in a new Translinked website, a shared TDL calendar will reflect all key events, workshops, and meetings occurring both in and out of the trade region. A common calendar will allow organizations to find opportunities to collaborate and make events more impactful. • Data sharing site – The Detroit Regional Chamber is developing a common data management system to provide uniform data and messaging to economic developers in the region. Wiki software is currently in the testing stages. • Economic development toolkit – An RFP for an economic development toolkit will be released in November. Economic development professionals at the city, county, state, and provincial level provide the most interaction with the private sector through their business attraction and retention efforts. Businesses are 4
  5. 5. concerned with the total landed cost of their freight. Access to a site containing customizable, co-branded supply chain fact sheets and collateral will give economic developers an important asset when working with their clients.Benchmarking and Fact FindingTo move forward with the creation of the TDL hub and TDL workforce development, the Chamber will continue withTDL benchmarking and fact finding. • TDL Hub Site Visits – Translinked has evaluated the site visit potential of several communities. A visit to Columbus is planned, where we will meet with the chamber of commerce to discuss their logistics initiative, as well as meet with workforce and talent development coordinators to learn best practices of the Columbus region. We will also consider visits to Kansas City and Atlanta. • Regional Education and Training Program Inventory: The Chamber has been conducting site visits to the region’s TDL education and training programs to develop an education and training program inventory. Educational institutions engaged so far include:. 5
  6. 6. ResultsValue PropositionBased on our engagement with the private sector, the results of our regional freight study and our external outreach,we have drafted a value proposition and a corresponding action plan. Regional Supply Chain Value PropositionWhat we heard: Our value as a region lies in four main categories of assets: location, infrastructure, talent, andindustry.Market access: We reach markets of over 88 million people within a 10-hour truck drive, and we have access tointernational trade through our Canadian/U.S. border crossings. We have a world-class airport system and our four 6
  7. 7. Class I railroads allow us to service the eastern U.S., the Midwest, Canadian markets, central plains states, and theGulf states.Modes: We have four Class I railroads with access to the eastern U.S., the Midwest, Canadian markets, centralplains states and the Gulf state region. The Detroit Region Aerotropolis provides global air access with nonstopservice to more than 160 destinations. Interstate highways reach from Canada to Mexico while connecting our regionto both the east and west coasts. The Detroit, Toledo, and Windsor water ports are among the largest along the St.Lawrence Seaway.Training programs: We have a range of training programs from certificate programs through advanced degrees,including the number one supply chain management program in the U.S. at Michigan State University.Experienced professionals: Growing out of our automotive history, we currently have 235,000 people working inthe transportation, distribution and logistics sector.Capacity: We have half a billion total square feet of warehouse space, and there is room for growth in ourdistribution centers, on our roads, rails, and waterways. We can accommodate more freight today without congestionand time delays.Reliability: Our region has one of the lowest rates of weather-related cancellations in the country. We have thecapacity to accommodate increased volumes of freight without time delays.Competitive total cost: The region offers a competitive total landed cost. Typically, trucking costs are a significantdriver of this number, and our trucking costs to major markets are significantly lower than competing regions likeColumbus, Chicago, and Harrisburg. 7
  8. 8. Action Plan Based on private sector engagement, freight study results, and external outreach, we determined several areas for growth, classified into the four main asset categories: infrastructure, talent, industry, and location. Regional Supply Chain Action Plan Task Timing Asset Need Short Term Mid Term Long Term Intermodal capabilities Support DIFT project DIFT DIFT Advocate for transportationInfrastructure Road repair and maintenance funding New International Trade Crossing Continue bridge advocacy Establish training Railroad workforce Create career awareness programTalent Trucking workforce Create career awareness TDL workforce hub Launch virtual hub Raise awareness of regional supply chain value proposition Attract and retain Attract and retain Market outreach program and provide export support business businessIndustry Intermodal facilities Support DIFT project DIFT DIFT Climate-controlled warehouses Conduct a gap analysis Ocean carrier engagement Perform needs analysis Agricultural inspection capacity Perform gap analysis Border crossing consistency Establish root causesLocation Incorporate regional facts into Fact-based marketing effort awareness campaign Next Steps Sharing Our Value The value proposition will allow us to have consistent messaging and data and to speak with a common voice. Our audience is broad and global. We need to market our assets and share success stories from companies located in our region who are already realizing the benefits of our regional value proposition. Site selectors are a key part of this broad audience. Ensuring that site selectors are informed about our regional supply chain advantages is critical so our region is considered when making location decisions. Our value proposition will help develop consistent messaging and data to assist economic developers in speaking with a common voice. Communicating our value proposition to economic developers at the city, county, and state level can help ensure that they have the information they need to include supply chain as part of the conversation when they are working to attract and retain businesses. This information, coupled with economic developers’ in- 8
  9. 9. depth understanding of their clients’ needs, will allow the messaging to companies to be tailored on a company-by-company basis. Stages of Freight Engagement Contact Awareness Understanding Trial Use AdoptionImplementing the Action PlanOur next step for implementing the regional supply chain action plan includes breaking the action plan into discrete,actionable steps. Then we will work to engage the right regional stakeholders to take action. To coordinate theseefforts to ensure completion and progress, we will apply our program management process, which includesappropriate timelines, follow-up, meetings and information sharing.The good work we have completed over the last 75 days has led to a value proposition and plan of action forprogress. By sharing the value proposition and executing the action plan, we’ll achieve our common goals of creatinga transportation, distribution and logistics cluster of excellence which will lead to job creation and investment withinour region. 9

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