Op-ed

Collaboration, education can make Indiana a major logistics power

Not so long ago, the process of moving products from Point A to Point B was simple: Products were boxed, loaded into a semi trailer, driven to their destination, then unloaded and unpacked.

We called it "shipping." It was a low-tech, high-muscle industry that played a small, supporting role in the bigger economy.

That's all changed. Today's version of shipping now is called the transportation, distribution and logistics industry. It's a high-tech, multifaceted industry contributing some $1 trillion to the U.S. economy. Logistics — as it's called for short — plays an integral role in our just-in-time, low-inventory marketplace, and it's expected to grow 65 percent by 2020.

Indiana is well-positioned to grab a lion's share of that growth, but only if we're willing to do the work required to become a logistics powerhouse. Already we have a lot working in our favor. One big advantage is our manufacturing prowess. Even though manufacturing employment is down in the state, we're producing more goods than ever. But manufactured goods don't translate into profits until they get to market.

Of course, Indiana also is the Crossroads of America — a title earned because of the state's blend of central location and transportation infrastructure. Indiana is close to the majority of the nation's major markets (within a day's drive of 82 million people), and has extensive roads, rails and ports to get people and things where they need to go. Indiana has 11,000 highway miles, and more major highways intersect here than in any other state.

Gov. Mitch Daniels' recently released transportation plan — which he has dubbed "Major Moves: Creating a Top-Tier Economy Through Top-Tier Transportation" — shows that the state recognizes the importance of its transportation infrastructure and is committed to maintaining it.

It's not all about roads, though. Indiana ranks ninth in the country for in-state railroad mileage; and it ranks 14th in the nation for water-borne shipping, which comes from three ports.

But wait, there's more: The Hoosier work force regularly is praised as well-trained, hard-working and easy to work with; colleges, universities and technical schools offer classes and programs focused on logistics; 90,000 people already are employed in the industry; and Indiana's government has targeted logistics as a key industry.

Even with all of this working to our advantage, though, there's more Indiana must do if it's going to be a major logistics player.

For starters, we must acknowledge the increasingly time-sensitive nature of the logistics industry. Just-in-time and supply-chain management strategies demand that products are constantly tracked to ensure on-time departures and arrivals. That requires technological expertise as well as a flexible, nimble and service-minded workforce.

We also need to adapt to the "intermodal" nature of logistics — rather than simply riding a truck across country, a shipment is an increasingly likely to travel via a combination of air, water, rail and road routes.

And we need to add value to the logistics process, serving not simply as a way station but, instead, providing vital services that support and expedite the process.

How do we achieve these objectives? We need our colleges, universities and community college system to take our workforce to the next level of technological expertise, both to move goods and to manage supply chains within companies and to get materials, parts and products to our manufacturers and retailers. Our educational institutions must continue to develop curricula targeting the industry's workers and to pioneer new processes, technologies and tools.

We need to build up transportation infrastructure so that it accommodates future demands. And government and business leaders must invest in logistics, not only with financial resources but also with their people's time, talent and energy.

None of this will be possible, if we don't first lay a foundation of collaboration. That begins with a BioCrossroads model, developing a cohesive logistics strategy that highlights and builds on Indiana's strengths, which is similar to the process in place to support and grow Indiana's life sciences industry.

Want to know more? Consider joining industry experts and leaders on Oct. 19 in Indianapolis for the third annual 21st Century Logistics Summit sponsored by Purdue University, Indiana University and Ports of Indiana. Information is available online.

At that conference, you'll hear about developments in the logistics industry and examine best practices. There will be time to share ideas and discover opportunities. And, if we play our cards right, we'll lay the foundation for a future in which Indiana is a major player in the fast-growing logistics industry.