WEBVTT

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>> HELLO AND WELCOME TO INSIDE

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INDIANA BUSINESS. I'M GERRY

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DICK.

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THE GLOBAL SUPPLY CHAIN CRISIS

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CONTINUES TO RIPPLE THROUGH THE

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ECONOMY AS COMPANIES AND

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CONSUMERS CLAMOR FOR EVERYTHING

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FROM AUTO PARTS TO ASPARAGUS.

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IT IS ALSO HELPING FUEL A

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HISTORIC RISE IN INFLATION.

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WHAT NEEDS TO BE DONE TO GET

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STORE SHELVES STOCKED FOR THE

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HOLIDAYS? AND CAN INDIANA, THE

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CROSSROADS OF AMERICA, PLAY A

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ROLE IN THE SOLUTION?

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FOR SOME ANSWERS, I'M PLEASED TO

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WELCOME INTEGRATED DISTRIBUTION

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SERVICES CEO MARK DEFABIS.

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MARK, THANKS FOR JOINING US.

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>> GLAD TO BE HERE.

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>> YOUR COMPANY, A LONG-TIME

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THIRD-PARTY LOGISTICS IN

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INDIANA.

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YOU'RE ON THE FRONT LINES.

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GIVE US AN IDEA, WE HEAR ABOUT

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THE SUPPLY CHAIN CRISIS EVERY

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DAY.

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EXAMPLES YOUR SEEING OF INDIANA

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MANUFACTURERS, RETAILERS AND

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OTHERS IMPACTED.

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>> CERTAINLY MANUFACTURERS ARE

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HAVING A HARD TIME GETTING

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COMPONENT PARTS, ESPECIALLY FROM

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OVERSEAS AND RETAILERS TRYING TO

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GET PRODUCTS FROM OVERSEAS IN

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FOR HOLIDAY SEASON.

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AS TYPICAL, THIS IS NOT THE

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FIRST TIME THAT SUPPLY CHAINS

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HAVE SEEN DISRUPTIONS.

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SO YOU'RE SEEING MANY

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MANUFACTURERS AND OTHER

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RETAILERS HOW DO YOU OVERCOME

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THOSE DISRUPTIONS, AND THAT'S

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USUALLY WITH ALTERNATIVE MEANS

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OF TRANSPORTATION USUALLY

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DEDICATED, THEY'RE EITHER HAVING

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TO FLY IT ON ON PLANES, HAVING A

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DEDICATED TRUCK TO BRING IT IN,

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OR EVEN IN SOME CASES, DEDICATED

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OCEAN VESSELS TO BRING THEIR

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CONTAINERS IN.

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BUT ALL THAT DOES IS REALLY ADD

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TO INFLATION, BECAUSE THE COST

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TO CIRCUMVENT FROM THAT

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STANDPOINT IS VERY EXPENSIVE

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>> IF YOU'RE A MANUFACTURER, A

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COMPANY IN INDIANA AND YOU

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CONTAINER FROM THE WEST COAST

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HERE, WHAT WOULD BE A NORMAL

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WAIT TIME FOR THAT TO HAPPEN

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VERSUS WHAT WE'RE SEEING NOW?

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BECAUSE OF THE SUPPLY CHAIN

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ISSUES?

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>> YEAH.

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FROM THE WEST COAST, ALMOST

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EVERY CONTAINER HAS TO GO

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THROUGH CHICAGO BEFORE IT'S

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GOING TO GET TO INDIANAPOLIS.

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WE DON'T HAVE A DIRECT ROUTE.

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AND TYPICAL WAIT TIME IN CHICAGO

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RAIL YARDS TO GET A CONTAINER ON

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TO A CHASSIS SO IT CAN BE

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TRANSPORTED DOWN SOUTH WOULD BE

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ABOUT THREE DAYS.

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NOW YOU'RE SEEING WAIT TIMES

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SIGNIFICANTLY LONGER THAN THAT,

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AND I THINK IT IS GOING TO GET

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EVEN WORSE

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>> AS YOU LOOK AT, MARK,

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OBVIOUSLY THE TRUCK DRIVER

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SHORTAGE, THE REAL ISSUES IN

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THAT INDUSTRY, THAT BEGAN

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CERTAINLY BEFORE THE PANDEMIC

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AND BEFORE THIS DID, BUT

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EXACERBATED BY THIS NOW.

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WHAT CAN BE DONE, IN YOUR VIEW

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AS AN EXECUTIVE IN THE INDUSTRY,

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WHAT WOULD YOU LIKE TO SEE DONE

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TO ADDRESS SOME OF THESE ISSUES?

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>> WELL, REALLY, IT'S ALL ABOUT

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VELOCITY.

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WE NEED TO KEEP PRODUCT MOVING

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IN THE SUPPLY CHAIN.

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AND OF COURSE THE VAST MAJORITY

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OF THAT MOVES BY TRUCK.

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BECAUSE WE'RE NOT GOING TO I

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THINK MAGICALLY CREATE MORE

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TRUCK DRIVERS OVERNIGHT, WE NEED

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TO LOOK AT HOURS OF SERVICE, AND

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THOSE DRIVERS THAT WE CURRENTLY

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HAVE WORK MAYBE AN HOUR OR TWO

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LONGER, BECAUSE OF ALL THE DWELL

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TIME THAT THEY HAVE?

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THE BIG THING IS THE DRIVE SAFE

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ACT, WHICH HAS BEEN IN CONGRESS

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SINCE EARLY THIS YEAR, WHICH

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WOULD ALLOW 18 TO 21-YEAR-OLDS

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TO DRIVE ACROSS STATE LINES.

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RIGHT NOW THEY CAN DRIVE A

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18-WHEELER FROM SOUTH BEND TO

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EVANSVILLE, BUT THEY CAN'T GO

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FROM EVANSVILLE INTO KENTUCKY,

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WHICH IS A LITTLE RIDICULOUS.

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WE NEED TO DO SOME INNOVATIVE

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THINGS IN THE SHORT TERM LIKE

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THAT TO REALLY BE ABLE TO HAVE

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MORE VELOCITY WITHIN THE SUPPLY

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CHAIN

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>> MARK, EVERYONE WANTS TO KNOW

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WHEN THIS IS GOING TO END, WHEN

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IT IS GOING TO GET BETTER.

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YOU AND I WERE TALKING OFF

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CAMERA BEFORE THE INTERVIEW, YOU

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DON'T THINK THAT IS GOING TO BE

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ANY TIME SOON?

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>> NO, I THINK IF YOU LOOK AT

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IT, THE ISSUES THAT WE HAVE ARE

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NOT GOING TO CLEAR THEMSELVES

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OVERNIGHT.

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WE ARE NOT GOING TO, AGAIN,

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WITHIN THE NEXT YEAR, HAVE

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HUNDREDS, IF NOT THOUSANDS, OR

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MORE TRUCK DRIVERS, NOT GOING TO

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HAVE HUNDREDS OF THOUSANDS MORE

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TRUCKS.

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YOU'RE NOT GOING TO HAVE

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MORE -- THOUSANDS AND HUNDREDS

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OF THOUSANDS MORE CHASSISES TO

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PULL CONTAINERS.

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IT IS GOING TO BE A WHILE BEFORE

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WE WORK OUT OF THIS.

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NOW, THERE WILL BE WORK-AROUNDS,

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I THINK WE'LL CONTINUE TO SEE

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MANUFACTURERS AND RETAILERS DO

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WORK-AROUNDS FOR THE BOTTLENECKS

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TAT WE HAVE IN THE SUPPLY

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CHAIN.

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BUT, AGAIN, IT'S JUST GOING TO

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BE MORE EXPENSIVE IN THE LONG

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RUN

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>> MARK, BOARD MEMBER, CONEXUS,

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INDIANA, THAT ORGANIZATION IS

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VERY SUPPORTIVE OF THE ADVANCED

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MANUFACTURING, AND LOGISTICS

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INDUSTRIES, CONEXUS IS GOING TO

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BE INVOLVED IN A LISTENING EVENT

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NEXT WEEK WITH MEMBERS OF THE

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INDIANA CONGRESSIONAL

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DELEGATION, WHAT DO YOU

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ANTICIPATE THAT CONVERSATION IS

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GOING TO BE LIKE, IS THERE A

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MESSAGE OR MESSAGES THAT WILL BE

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DELIVERED TO THE DELEGATION?

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>> ABSOLUTELY.

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SENATOR BRAUN AND SENATOR YOUNG

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HAVE BEEN GRACIOUS ENOUGH TO

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HOST THIS EVENT AS A LISTENING

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SESSION SO THAT WE WILL

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HAVE -- INDIANA-BASED

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MANUFACTURERS, AS WELL AS

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LOGISTICS COMPANIES TO TALK

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ABOUT REAL WORLD PROBLEMS THAT

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WE'RE FACING WITH THE SUPPLY

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CHAIN.

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AND REALLY PRESENT TO OUR

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DELEGATION, PRACTICAL SOLUTIONS,

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BOTH SOME SHORT-TERM, SOME

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LONG-TERM THAT WE NEED TO START

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PURSUING IN ORDER TO CORRECT

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THIS.

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THE MESSAGE THAT WE HOPE TO

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CARRY, AND I THINK INDIANA IS

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WELL-POSITIONED, CONEXUS HAS

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DONE STUDIES ALREADY, WE'RE

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ABOUT TO COMPLETE ANOTHER ABOUT

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COMMODITY MOVEMENT SO WE CAN

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TAKE CARE OF THE BOTTLENECKSES

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AND ISSUES WE HAVE IN THE STATE.

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THE MESSAGE WE'RE GOING TO TRY

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TO COMMUNICATE TO OUR

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CONGRESSIONAL DELEGATION IS

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ABOUT VELOCITY.

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WE HAVE TO KEEP THINGS MOVING IN

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THE SUPPLY CHAIN

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>> MARK DEFABIS, CEO AT