Transportation, Distribution, and Logistics

1. Transportation, Distribution, and Logistics The Industry and Partnerships October 14, 2014 By Judith Kossy, Policy Planning Partners

2. TDL: What is IT? • Planning, management, and movement of people, materials, and goods by road, pipeline, air, rail and water and related professional support services such as transportation infrastructure planning and management, logistics services, mobile equipment and facility maintenance. -National Association of State Directors of Career Technical Education Consortium

3. TDL is a targeted industry in the region • It’s projected to growth- global trade, supply chain management, on line shopping • Transportation hub that attracts industry • Regional Policy Commitment: • Tri-state Regional Alliance – Wisconsin, Illinois, Indiana • Chicago Metro Area

4. TDLEmployers • Manufacturing firms • Third party logistics firms – warehousing, dedicated carriers, forwarders • Merchandising-retailers, wholesalers, distributors • Transportation firms, freight and/or passenger • Education organizations • Government agencies-U.S. Military, Dept. of Transportation, etc. • Service Institutions-banks, hospitals, etc. • Consulting firms

5. Largest TDL Industries by Employment • General warehousing and storage • Freight transportation arrangement • General freight trucking-long distance • General freight trucking – local • Couriers and express delivery services • Short line railroads and line haul railroad • Mail-order houses • Corrugated and solid fiber box manufacturing • General trucking long distance – LTL • Highway, street, and bridge construction

6. Future need for employees • Increase in intermodal transit is driving regional job growth • 16 of the 42 sub-clusters will increase, including warehousing and storage, process and logistics consulting, trucking, couriers, container and mallet manufacturing, non-scheduled air freight chartering, and support activities for air, road transport and warehousing. • Trucking and rail are both likely to see increases as it becomes easier to seamlessly move containers between modes. (CMAP, Freight Cluster Drill Down, Regional Workforce Analysis, 2012, page 40.) • Retirements, turnover • Trends in Job tasks changes in intermodal transit • Increased capital-labor ratios with growth in the size of containers, changes in port equipment (cranes and forklifts) less intermediate handling and use of information • Accelerating growth in the use of communication and information technology, including electronic data interchange, vehicle location detection, mobile communication devices, etc.  

7. Top TDL Growth Industries: Chicago Region

8. Training requirements • Number of Occupations and Education Requirements 2008 • OJT and experience – 64% • Post secondary vocational award and above 36% • ESMI Data- 2004-Chicago Workforce Investment Council, Freight Cluster Drill Down

9. Credentials: Industry Recognized and Transportable • MSSC • Certified Logistics Associate (CLA) certificate – entry level - Global supply chain logistics life cycle, Logistics environment, Material handling equipment, Safety principles, Safe material handling and equipment operation, Quality control principles, Workplace communications, Teamwork and workplace behavior to solve problems, Using computers • Certified Logistics Technician (CLT) certification. Higher skilled, front-first line of supervision) and managers - Product receiving, product storage, order processing, packaging and shipment, inventory control Safe handling of hazmat materials, evaluation of transportation modes, dispatch and tracking, measurements, and metric conversions • ASTL • Global Logistics Associate (GLA), an entry level certification that recognizes individuals who successfully demonstrate an understanding of the essentials of the global supply chain network • Professional Designation in Logistics and Supply Chain Management (PLS), a mid-level credential that certifies a professionals understanding of international value-creating networks • Certification in Transportation and Logistics (CTL), the senior-level credential for professionals who demonstrate a complete understanding of transportation and logistics issues • APICS • Certified in Production and Inventory Management (CPIM) encompasses skills and competencies needed to understand and evaluate production and inventory activities within a company's global operations. • Certified Supply Chain Professional (CSCP) - professional mastery and expertise in the global supply chain management.

10. TDL Career Pathway clusters • Transportation Operations • Logistics Planning and Manager Services • Warehousing and Distribution Center Operations • Facility and Mobile Equipment Maintenance • Transportation Systems, Infrastructure Planning, Management and Regulations • Health, Safety, and Environmental Management • Sales and Service

12. CHALLENGES • WHAT IS THE NEED? • OR • WHERE IS THE PAIN?

13. Finding Qualified workers • English proficiency • Basic computer, math and literacy • Soft skills: communication, motivation, timeliness, ability to remain drug free, follow directions, flexibility, problem-solving and teamwork • Management/leadership ability • Greying of the workforce (except in logistics planning & management) • Powered equipment operation, e.g. forklifts and trucks • Ability to use technology-software and tools • Lack of career vision

14. Recruitment and Retention • Awareness and perception of occupations and careers • Recruitment practices • Limited orientation – what to expect • Salaries and benefits – especially at the entry level • Hours and schedule • Result: Too few qualified applicants and high staff turn-over

15. Job Advancement • Field doesn’t fully value education • Low salary and wage structure (especially at lower levels) • Career paths tend to be inflexible • Few management training courses accessible to operations staff without education • Career pathways and advancement opportunities are hard to access

16. Discussion • What is the industry in your region? • Who are the employers? • Is employment growing? • What have been the needs or challenges in finding qualified workers? • What groups of people might be good candidates but lack skills?

17. PARTNERSHIPS • TO PINPOINT THE PAIN • TO UNDERSTAND SHARED NEEDS • TO ENGAGE EMPLOYERS AND EDUCATION • TO DEVELOP SOLUTIONS • TO STAY CURRENT

18. CSSI: Getting Started • Purpose: Identify and respond to critical skills shortages – the “root causes’ • Steps to building a strategy and partnership • --Build on prior work and relationships • --Collect Data • Extent and duration of job vacancies • Education and experience requirements • Skill requirements, especially skills candidates lack • Salary and benefit ranges • Recruitment and hiring practices and their relative success • Retention and turn-over

19. Identify Training Providers • Identify existing programs • Secondary and post secondary education (community colleges, 4-year institutions) • Private or Proprietary institutions • Industry associations • Community based organizations. Profile capacity • Program capacity • Schedule • Cost/length of training • Pre-requisites/entry requirements • Completion rates for each occupation • Employment outcome data • Barriers to entry

20. Profiling the potential labor pool Profile the labor pool - youth and adults • Level of education/training • Awareness of the job and careers • Perceptions of the job and careers • Employment goals • Barriers to entry and advancement Methods • Employee/applicants - surveys, focus groups, interviews • Employers representatives: human resources, recruitment, etc.

21. possible career Paths • Typical/possible pathways to career progression • Requirements for each step • Transferable skills and advancement from one occupation to another • Existing career path models that encompass critical skill shortage occupations

22. Root Causes • Identified five interrelated “Root Causes” of TDL skill shortages • Image: youth and job/career changers have little contact with the industry—and a negative image of jobs • Job quality: 24/7 schedules, long periods of time away from home, etc. • Government regulations/liability issues—OHS legislation, enhanced security precautions, ability to retain insurance, hours • Advancement: Limited access to traditional professional development/career advancement opportunities • Structural factors—the demands of new technologies, pace of change, supply chain integration, infrastructure challenges, industry precedent, etc.

23. Recommended Actions • Improve the image of the TDL industry • Inform target groups about jobs, careers, opportunities in the industry • Sell the benefits of TDL jobs/careers to target audiences • Promote training and professional development for specific occupations/target demographic groups • Increase skills/fill high demand occupations • Raise entry-level skills • Meet specific industry-sector-firm demands not (successfully) addressed in the marketplace • Advance strategic initiatives • Address specific challenges/problems • Fill specific information, communication, or labor market gaps

24. Pay-offs • INDUSTRY LEARNED ABOUT TRAINING AND EDUCATION ASSETS • TRAINING PROVIDERS, INDUSTRY, AND INDUSTRY ASSOCIATIONS INITIATED RELATIONSHIPS • COMPANIES BEGAN TO PARTICIPATE IN TRAINING AND RECRUITMENT • THE BASIS FOR FUTURE ATTENTION AND INVESTMENT WAS FORMED

25. Olive Harvey College • Center for Transportation, Distribution and Logistics • The hub of programs in the five campuses • Automotive technology • Diesel Mechanics • Certified Drives License A and B levels • Taxi and Limo • Logistics Management • Process50 employers – cluster subcommittees, state, college, federal and industry funding UPS, American Airlines, CoyoteLogistics, CN Railway-

26. Program Components • --Adult Education TDL Bridge Program: 16 weeks – forklift certification, warehouse skills training, preparation for the GED test and COMPASS college placement exam • --Stackable credentials • Basic certificates - 16 hours • Advanced certificate - 31 hours • AAS- 62 hours • --Workforce Academy: career planning, interview and job search skills, job postings, co-location of the UPS office • --Links to support services

27. Supply Chain Management (Example) • Basic Certificate - 3 credit hours • Employment in the warehousing and distribution • Understanding of the industry and skills in supply chain management, material handling, and freight inventory. •  Advanced Certificate • Field Experience, introduction to 21st Century Ground Transportation (Class A Truck Driving)   (forklift certification is included) • Emphasizes: intermodal transportation, third-party logistics, entrepreneurship, management, communication, teamwork, safety skills • Learning labs provide hands-on interactive experience with the industry's latest technology.

28. Transportation (Example) • Commercial Driver’s License (Class A) Program: 8 Weeks • Emphasizes entrepreneurship, communications, and logistics skills, soft skills,   • Commercial Driver’s License (Class B) Program: 5 Weeks • For public passenger vehicle operators, emphasizes customer service, soft skills,  

29. IVY Tech – Well Developed • Transportation, Distribution and Logistics Institute 
Purpose to enhance the competitive position of Indiana's growing TDL industry through certified workforce training and education, while expanding the pool of highly skilled workforce talent to attract additional logistics-related companies to Indiana. • Offers a continuum of of training from CDL truck driver training, to national certification/credentialed training for front-line workers, to professional designations for mid-management to terminal degree programs to articulated degrees.

30. IVY TECH • Nation's largest singly accredited statewide community college system serving nearly 200,000 students annually.  Mission • Four strategies : • Ensuring that students achieve their educational goals • Ensuring that Indiana citizens, workforce, and businesses are globally competitive • Ensuring optimal quality and efficiencies statewide • Ensuring an adequate and sustainable resource base

31. Ivy tech Institute Roles • Develop and coordinate an outreach campaign directed to potential students • Monitor the results outreach campaign results • Engage TDL industry leaders from across Indiana and across industry segments • Serve as the expert resource for the latest workforce data required by the Indiana Economic Development Corporation • Distribute information and content to all Ivy Tech Regions • Refer industries and potential students to the appropriate Ivy Tech Region • Support, encourage and expand the utilization of TDL related workforce education/training capacity

32. Who are the Key Partners? WIA Provider Two-Year College Participants Adult Basic Education Employers Community- Based Organizations One Stop Centers WIB K-12 State Agencies Industry Associations Unions Occupational Associations TANF Provider

33. Partners • Workforce Investment Boards • TWL Professional Organizations • TDL employers and associations • 2 and 4 - year colleges and universities • K-12 schools • Community based organizations • One-stop career centers • Labor unions • Foundations • Elected Officials

34. Partnership Roles • Convening • Data collection – supply and demand • Curriculum development • Training delivery • Work experience, apprenticeships • Employment Assistance • Supportive Services • Outreach and Marketing • Funding • On-going communication • Advocacy

35. QUESTIONS?

36. National Industry Links • American Society of Transportation & Logistics
www.astl.org • APICS
www.apics.org/default.htm (Wisconsin) • Council of Supply Chain Management Professionals
cscmp.org • Institute For Supply Chain Management
www.ism.ws • International Warehousing and Logistics Association
www.iwla.com • Manufacturing Skill Standards Council
www.msscusa.org • Material Handling Industry of America
www.mhia.org • Warehousing Education and Research Council
www.werc.org • 2009 Drivers of Sustainable Supply Chain Management