2016 Indiana Logistics Directory

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LOGISTICS LEADERSHIP SURVEY 2016 Indiana Logistics Directory Cathy Langham President Langham Logistics, Inc. www.elangham.com Q&A WITH LOGISTICS LEADERS “Langham is a third party logistics company with expertise in solving problems and executing transportation, warehousing, fulfi llment and distribution solutions for our customers anywhere in the world. As we begin our 28th year as an Indiana-based business, we look forward to partnering with forward-thinking companies to continue to grow Indiana’s legacy as the ‘Crossroads of America’ by providing effi cient warehousing and transportation service and unmatched visibility to supply chains interested in using Indiana as a distribution hub.” William Patterson Senior Vice President Watco Terminal & Port Services www.watcosupplychain.com “Our organization’s role is to assist companies with the transportation of their goods and services. This can mean safely and effi ciently switching their plant, handling their products and getting them from one mode of transportation to another, or putting together a complete supply chain package.” Top 5 Logistics Issues: 1. Outsourcing 2. Workforce Availability 3. Truck Driver Shortage/ Retention 4. Security 5. Panama Canal Expansion Top 5 Logistics Issues: 1. Transportation Costs 2. Workforce Availability 3. Security 4. Government Regulation 5. Sustainability Doug Prather President Ranger Enterprises LLC www.ranger3pl.com “Ranger operates as a third party logistics provider located in Seymour, Ind., strategically splitting the freight hubs of Indianapolis and Louisville. Our ESOP company serves a multitude of varying industries, providing quality transportation and warehousing solutions. Ranger’s mission is ‘To exceed customer supply chain expectations by delivering professional and customized solutions in a timely and cost-effective manner.’” Top 5 Logistics Issues: 1. Workforce Availability 2. Truck Driver Shortage/ Retention 3. Transportation Costs 4. Revised Inventory Policies 5. New Technologies Charlie Threlkeld General Manager Rail Transportation Consolidated Grain & Barge www.cgb.com “Our organization is a facilitator between the American farmer and the consumer. Our logistics model provides a competitive price to the farmer for the grain that he grows. We are also able to meet the needs (price, timing and quality) of the end-user for those crops.” Top 5 Logistics Issues: 1. Transportation Costs 2. Globalization 3. Alternative Fuels 4. Cargo Capacity Constraints 5. Workforce Availability 22
Q&A WITH LOGISTICS LEADERS Which logistics issue will have the largest impact on the national economy and why? • Derek Bland: Great logistics cities are made and destroyed by their responses in times of technological innovation. Are we in such a time today? The question almost doesn’t need to be asked: driverless vehicles, drone delivery, robots as workers, same-day delivery. All will shape the future of logistics. • Barry Cox: There is a shortage of competent drivers, mechanics and programmers to support a world that is running at warp speed. Cargo will continue to be delivered via truck, rail and water, but each of these transportation modes lacks an incoming stream of personnel to perform the basic functions required to move freight on a daily basis. • Larry Davis: The highway system has not kept up with demand and congestion is a major problem in urban areas. Congestion leads to lower utilization and increased costs, which hurts the U.S. when competing globally. Increased regulation further adds costs to USA-produced goods. • Rick Heimann: Solutions to long-term issues such as waterway infrastructure, workforce availability and port capacity need to begin or continue this year. • Cathy Langham: The impact of the Panama Canal will be very interesting. Ports on the east coast and in the south have prepared for the larger vessel size and the increase in the number of containers off-loaded at www.indianalogistics.com those locations. This phenomenon will change the supply and transportation patterns for many manufacturers and distributors as well as trucking and rail companies. Ultimately this improvement in competition will cause a reduction in price. • William Patterson: Transportation costs will always play a major role. Coal volumes on rail and barge have diminished and rail volumes of crude oil and sand used to extract oil and natural gas are also down impacting logistics and costs to move other goods. • Doug Prather: Workforce availability and truck driver shortage/ retention issues will remain major hurdles for our industry to overcome. It is imperative we do all we can to educate, attract and maintain an excellent workforce now and into the future. • Charlie Threlkeld: The strong U.S. dollar has weakened our position in what is becoming an increasingly more competitive global marketplace. Advancements in farming practices in South America and the Black Sea region have displaced many traditional U.S. markets. What is the next big thing in logistics for your specific field? • Derek Bland: The last two years have been a time of large, strategic acquisitions resulting in significant consolidation among the top 50 global third-party logistics (3PL) providers. I expect this trend to continue. An overarching concern for our logistics community will be creating a culture and vision for logistics innovation and excellence. • Barry Cox: Despite the fact that we live in a highly automated world, there are still many supply chains that operate as they did in the 1970s. We are investing heavily in technology to support our clients’ move from the 20th Century to the 21st. • Larry Davis: The impact of the decline in coal revenue is requiring railroads to find new sources of revenue. Investment in our field will be challenged at a time when railroads need to find new markets and customers. • Rick Heimann: The recommendations associated with the National Freight Strategic Plan and the identification of how those recommendations addressing infrastructure, institutional and financial issues will be implemented and funded. • Cathy Langham: Technology is always the answer to this question. Improvements in product visibility and analytics will allow all of us to operate more efficiently and move toward the ultimate consumer goals of better, cheaper, faster. • William Patterson: Terminals are often designed and built around specific commodities but with changes in commodity markets, re-purposing locations that were product-specific and directing them toward a new focus, or a multi-purposed asset, will be a great opportunity in many areas. • Doug Prather: Technological advances will continue to result in revolutionary changes to our industry. Staying in touch with those changes and knowing when to make investments in new technology for the benefit of our customers is increasingly important. • Charlie Threlkeld: Autonomous trucks. As this technology develops, it will be a game-changer for everyone. LOGISTICS LEADERSHIP SURVEY What advice would you give students about a career in logistics? • Derek Bland: If you have a passion for addressing issues associated with infrastructure and traffic, land use and sustainability, and technology and research, then a future in logistics could be for you. The goal is to make our region the nation’s indisputable leader in logistics and distribution services and it will happen only as a result of vision, commitment and hard work. • Barry Cox: Take the time to develop a good tool box. Your tool box should include the basics of reading, writing, and math skills, but also the ability to think on your feet. You need to understand the basics of the industry to be able to lead the industry. Time is well spent in operations learning different aspects of each supply chain from the ground up. • Larry Davis: Logistics is a fascinating but largely invisible field that most people don’t understand. Since logistics is supply filling demand, everything in life has a logistics component. The science of logistics makes commerce more efficient, cost effective and immediate. • Rick Heimann: Logistics is problem solving, efficiency modeling and technological design all combined in a real world, ever-changing situation. There are logistics positions available involving sales, purchasing, statistics, operations and planning. • Cathy Langham: Jump into a logistics career with both feet. I still equate the growth and continuous change in logistics to cowboys and cowgirls heading for the New Frontier. We keep moving forward, improving our technology and processes, changing the way business is conducted and consumers are served, without knowing for sure what is over the next mountain ridge. So hitch your wagon to logistics and help us change the world! • William Patterson: To focus on the customer and their needs. While you or your company’s needs are important, if your decisions are based with the best interest of what your customer is trying to accomplish it will lead to success. • Doug Prather: A career in logistics is highly fulfilling and available across the country. There are many different specialized areas of logistics that reach across a variety of educational disciplines so there really is something for everyone. • Charlie Threlkeld: Each day you will be challenged to construct the most economical supply chain to move the goods for which you are responsible. It will have its rewards and setbacks but seldom be the same each day. 23
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