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Synchronizing the Flows of Commerce. Gene Long President UPS Consulting. Transportation Growth: Historical vs Modern. Historical base Chicago – cars New Jersey – tea, coffee and tobacco Cleveland – steel, coke, iron ore Detroit – cars Cincinnati – rail steel
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Synchronizing the Flows of Commerce Gene Long President UPS Consulting
Transportation Growth: Historical vs Modern • Historical base • Chicago – cars • New Jersey – tea, coffee and tobacco • Cleveland – steel, coke, iron ore • Detroit – cars • Cincinnati – rail steel • Indiana – food stuffs • Modern reality • Tax and other financial incentives • Population & labor pool • Focus on services not manufacturing • Infrastructure expansion limits • Local, state and federal regulations
Strategy, Technology & Execution • Strategy Flexible, adaptive model Aligns with business processes Risk mitigation • Technology Problem identification Intelligence Visibility • Execution Makes all the difference Investments must increase financial performance
Supply chain strategy Customer management Cash management Product design Planning Procurement Production Fulfillment • Customer segmentation • New product/service rollout • Real time order management • Configuration • Service operations • Support management • Engineering to demand • Collaborative design • Modular-baseddesign • Postponement • Product data management • Demand planningand forecasting • Collaboration • Operationsand inventory planning • Available to promise • Capable to promise • SKU and part rationalization • Strategic sourcing • Supplier rationalization • E-procurement • Collaborative commerce • Lean manufacturing • Configurableproduction • Contract manufacturing • Small lot production • Global siting • Logistics • Transportation • Network optimization • Asset recovery • DC operations improvement • Outsourcing • Working capital deployment • Asset management • Order-to-cash cycle Operations, process outsourcing and technology Think Beyond Transportation:Logistics and Total Supply Chain Management
Synchronizing Commerce Sources Mfg. Distrib. Retailers Consumers • Transportation • Warehousing • Fulfillment • Service Parts Logistics • Reverse Logistics Goods • Vendor Managed Inventory • Demand Planning • Order Management System • Warehouse Management System • Transportation Management System • Event planner/tracker • Data repository • Accounts Receivable Information • Asset Holdings • Inventory Financing • Accounts Receivable • Accounts Payable Funds
Value-adds: IT and financing Multi-modal transportation Processes: Order to cash, repair & return Intellectual capital Synchronizing Commerce -- What it Takes Partnerships Outsourcing
Call to Action • Think Beyond Transportation • Partner to Attract Industry • Government • Private Business • Other Supply Chain Providers • Build the Infrastructure • Goods hub – the physical network • Information hub -- IT network • Financial hub – facilitate International trade, financing • Attract the Best People – become a community champion, build labor pool • Education • Healthcare • Quality of life