Discovered in Indiana - Manufactured in Indiana Transportation, Distribution & Logistics for Competitive Advantage John Sullivan Director, Center for Advanced Manufacturing, Purdue University Scott Whitlock President, Flexware Innovation

Discovered in Indiana - Manufactured in Indiana SME Chapter 268 Presentation, 1/27/05  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

Discovered in Indiana - Manufactured in Indiana SME Chapter 268 Presentation, 1/27/05 Indiana’s Competitive Advantage Location, location, location –Crossroads of America –Rail, Air, Ports, Key Roads (N/S, E/W) Strong Manufacturing Capabilities Excellent Universities

Discovered in Indiana - Manufactured in Indiana SME Chapter 268 Presentation, 1/27/05 To compete effectively in the supply chain of tomorrow… Lead time is critical Technology is essential Business environment must be flexible

Discovered in Indiana - Manufactured in Indiana SME Chapter 268 Presentation, 1/27/05 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

Discovered in Indiana - Manufactured in Indiana SME Chapter 268 Presentation, 1/27/05 Main business processes Supplier’s Supplier Supplier Plan Customer Deliver S SourceMake MDMSD D Internal or external Enterprise S Customer’s Customer Source; Pittiglio Rabin Todd & McGrath Supply Chain Council, Inc. Pittsburgh, Pennsylvania Supply Chain SCOR Model

Discovered in Indiana - Manufactured in Indiana SME Chapter 268 Presentation, 1/27/05 Supply Chain SCOR Model Supplier’s Supplier Supplier Plan Customer Deliver S SourceMake MDMSD D Internal or external Enterprise S Customer’s Customer Source; Pittiglio Rabin Todd & McGrath Supply Chain Council, Inc. Pittsburgh, Pennsylvania

Discovered in Indiana - Manufactured in Indiana SME Chapter 268 Presentation, 1/27/ The Manufacturing Supply Chain is Evolving Inventory to Sales Ratio for Manufacturing Source: Census Bureau ’54-’ average

Discovered in Indiana - Manufactured in Indiana SME Chapter 268 Presentation, 1/27/05 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

Discovered in Indiana - Manufactured in Indiana SME Chapter 268 Presentation, 1/27/05 Producer Warehouse Processor Stamping

Discovered in Indiana - Manufactured in Indiana SME Chapter 268 Presentation, 1/27/05 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

Discovered in Indiana - Manufactured in Indiana SME Chapter 268 Presentation, 1/27/05 Thank you!