buy locally, sell globally developing a vendor network to drive economic growth
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Buy Locally, Sell Globally Developing a Vendor Network to Drive Economic Growth in Greater Binghamton Patrick Rogan, CPIM. Presentation / Discussion Overview. Introduction STOC/Supply Chain Initiative Overview Greater Binghamton overview – statistics Vendor Network Concept - PowerPoint PPT PresentationTRANSCRIPT
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Buy Locally, Sell Globally Developing a Vendor Network to
Drive Economic Growth in Greater Binghamton
Patrick Rogan, CPIM
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Presentation / Discussion Overview
• Introduction• STOC/Supply Chain Initiative Overview• Greater Binghamton overview – statistics• Vendor Network Concept• Opportunities• Local Supply & Lean Enterprise • Challenges• Next Steps
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Southern Tier Opportunity Coalition
• Single point of contact for regional business development resources
• Promote further collaboration between local businesses with a goal of spurring local economic development
• Effectively leverage University research for commercialization
• Enhance public sector initiatives with a coordinated private sector initiative
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STOC Vision & Mission
Vision: To be the premier academic/business alliance leveraging innovation and technology that creates excitement and prosperity in the community, capturing the hearts and minds of the next generation
Mission: The Southern Tier Opportunity Coalition will identify, garner and apply resources through collective action to enhance existing technology businesses and to nurture new business opportunities
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STOC Objectives Focused on the Strengths of the Region
• Establish the Southern Tier as a competency center for emerging business development
• Sustain long term growth through evolving technologies
• Attract common ‘value chain’ business/technology and business diversity
• Expand geographically to gain more technology and business diversity
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Some STOC Members•Lockheed
•BAE
•United Health Services
•BCC
•Excellus Blue Cross
•NBT
•Diamond Visionics
•BU
•MeadWestvaco
•IBM
•Heilind Electronics
•AM&T
•Hardinge
•EIT
•Xonitek
•Universal
•Visions
•Geodis America
•Rockwell Collins
•Over 55 members
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Today’s Discussion:
• Consider the formation of a Greater Binghamton regional B2B vendor network to support businesses to: “Buy Locally, Sell Globally”
• Discuss opportunities & challenges
• Feasibility
• Next Steps
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Greater Binghamton Demographics
• Population of 300,000 in 40 mile radius
• Households > 100,000, Families > 65,000
• Median income = $37,800
• Median family income = $46,000
• Unemployment rate = 8.9%
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Major Employers
• United Health Services - 4,500+ • Binghamton University - 4,000+ • Lockheed Martin Owego - 2,000+• Endicott Interconnect - 1,700+ • BAE Systems - 1,200+ • IBM - 1,100+ • Maines Paper & Food Service - 1,000+ • Frito-Lay - 700+
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Vendor Network Concept
• Capture the interest of large employers (regional exporters of goods and services)
• Review strategic and non-strategic spend w/ large employers. Group materials & services, volumes
• In parallel, begin to build a database of small to medium businesses and their capabilities & capacities
• Create a web-based, searchable database front end to facilitate finding various products, capabilities & capacities
• Work to develop a process to facilitate transactions. May include: pre-qualifying vendors, site-visits, discounts?
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Vendor Network Concept (cont.)
• Investigate opportunities to partner & collaborate with other regional “buy local” initiatives (consumer focused v. B2B):
- Greater Binghamton Chamber of Commerce “Buy Local” initiative
- Scranton/Wilkes-Barre: ibuynepa.com on-line shopping community
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Vendor Network Advantages
• Increase vendor sales• Boost regional economy through impacting
“regional balance of trade” & spending multiplier• Develop local supply base for “customers”• Transportation savings• Environmental – less fossil fuel consumed• Promotes Lean Enterprise
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Advantages - more detail
• Regional balance of trade impacts – redirect current spend going outside of region to vendors in Greater Binghamton.
• This decreases “regional imports” keeping more dollars in Greater Binghamton.
• Regional spending multiplier then “kicks in” – can be as high as 8 to 9 times the original dollar impact depending upon the situation. - Example: local vendor employees spend their wages on locally sold goods and services. The plumber hired by the employee then buys vegetables at farmer’s market, etc., etc.
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Advantages - more detail
• To customers, a local supply base can mean:
- better access to product development/ co-engineering
- easier access to senior management
- tighter control of strategic inputs
- potential JIT; smaller, more frequent deliveries
- possible point of use deliveries with VMI (consignment?)
- transportation savings
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Advantages - more detail
• Lean Enterprise – local suppliers can be a big plus as companies pursue lean for all of the reasons listed on the previous slide
• Lean can lead to increased collaboration, stronger partnerships, shared savings, better business
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Vendor Network Challenges
• Resources – need skilled volunteers to establish relationships and initial “deal flow”
• “Backbone” - need skilled resources to establish vendor database, populate data, build navigational capabilities & maintain network
• Customer corporate procurement, national contracts? (Could also be an advantage)
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Challenges (cont.)
• Will local vendors “fit the bill”?
- capability?
- quality?
- capacity?• Risks with close proximity
- exposure to regional problems
- political/ social issues
- natural disasters (floods, tornadoes, hurricanes)
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Next Steps
• Continue monthly STOC Supply Chain Initiative Meetings
• Expand initiative team – sign-up new members
• Find vendor network “champion”, a leader to drive the vendor network project forward
• Circulate skills matrix and sign-up specific vendor network volunteers