TRANSPORTATION, DISTRIBUTION, AND
LOGISTICS
THE INDUSTRY AND PARTNERSHIPS
OCTOBER 14, 2014
BY JUDITH KOSSY, POLICY PLANNING PARTNERS
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
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
TDL
EMPLOYERS
• 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
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
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.
TOP TDL GROWTH INDUSTRIES:
CHICAGO REGION
Subsector
% Change 2008-20018
General warehousing & storage
10%
Process logistics & consulting
62%
Freight trucking-long distance
26%
Couriers & express delivery
12%
Other warehousing & storage
32%
Wood container & pallet manuf
61%
Support for airport
22%
Other airport
27%
Freight chartering
207%
Deep sea freight
60%
Farm product warehousing
562%
Support for road transport
20%
Transp. equip rental & leasing
4%
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
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.
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
CHALLENGES
WHAT IS THE NEED?
OR
WHERE IS THE PAIN?
FINDING QUALIFIED
WORKERS
• English proficiency
• Basic computer, math and literacy
• Soft skills: communication, motivation, timeliness, ability
to remain drug free, follow directions, flexibility, problemsolving 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
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
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
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?
PARTNERSHIPS
TO PINPOINT THE PAIN
TO UNDERSTAND SHARED NEEDS
TO ENGAGE EMPLOYERS AND
EDUCATION
TO DEVELOP SOLUTIONS
TO STAY CURRENT
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
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•
•
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•
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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
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
•
•
•
•
•
•
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Program capacity
Schedule
Cost/length of training
Pre-requisites/entry requirements
Completion rates for each occupation
Employment outcome data
Barriers to entry
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.
POSSIBLE CAREER
PATHS
•
•
•
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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
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.
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
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
OLIVE HARVEY COLLEGE
Center for Transportation, Distribution and
Logistics
The hub of programs in the five campuses
•
•
•
•
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Automotive technology
Diesel Mechanics
Certified Drives License A and B levels
Taxi and Limo
Logistics Management
Process 50 employers – cluster subcommittees, state, college, federal and
industry funding UPS, American Airlines, Coyote Logistics, CN Railway-
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
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.
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,
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.
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
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
Who are the Key Partners?
WIB
Employers
Participants
Two-Year College
Adult Basic
Education
Industry Associations
Occupational Associations
K-12
WIA Provider
TANF Provider
Community- Based
Organizations
One Stop Centers
State Agencies
Unions
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
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
QUESTIONS?
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