Autonomous Commercial Vehicles: The Economic Opportunity in Indiana

As part of its future-focused infrastructure planning, INDOT is embarking on a project with Purdue University to understand how the development of transportation infrastructure can be linked to benefits to business supply chains, thus enabling decisions to nurture an ecosystem around connected and autonomous vehicles (CAVs). KPMG will provide insight into the CAV industry

The Supermarket Supply Chain in Shanghai

The authors conducted a series of structured interviews with managers of ten supermarket chains in Shanghai to compare supermarket business practices in Shanghai with those in the United States, emphasizing logistics management issues. Shanghai supermarkets tend to be smaller than U.S. stores, but the store layout and product selection are similar in both countries. While the Shanghai supermarkets have modern scanning equipment, they do little quantitative sales or inventory analysis

Understanding the Impact of INDOT Projects on Automotive Industry Cluster Logistics Costs: A Case Study of the Honda Plant

This study focuses on understanding the impact of INDOT projects on the Honda, Greensburg plant’s supply chain. The goal of the study was th

Developing a Business Ecosystem around Autonomous Vehicle Infrastructure in Indiana

INDOT will soon be embarking on infrastructure planning to accommodate autonomous vehicles. This new technology affords the ability to impact economic value creation across the supply chain in Indiana, as well as foster economic development in Indiana to support these emerging technologies. This proposal will be a first cut towards exploring the development of a strategy to realize this potential. Our proposal will consist of two phases. Phase 1: A focus on industry choices and plans that can inform INDOT choices. Phase 2: A focus on INDOT’s internal decision making, risk tolerance, and choices regarding infrastructure projects

Cost and Benefit Analysis of Installing Fiber Optics on INDOT Projects

The Indiana Department of Transportation (INDOT) is tasked with the stewardship of billions of dollars’ worth of public invested highway infrastructure. Not only does INDOT continually seek design and operational policies that foster cost effective project delivery and procurement, they also seek opportunities for revenue generation. Due to population growth and the increased demand for online connectivity and global information transmission, the fiber-optic cable industry has experienced rapid growth over the past few years. Information and communication technology (ICT) companies have long sought to achieve higher economic productivity by installing fiber-optic cables in the right of way (ROW) of access-controlled highways. Based on these developments, an experiment was conducted to measure the economic impact in Indiana. To determine this impact, a database was developed by compartmentalizing the analysis into (1) GDP per county per industry type, (2) the natural growth of GDP as a factor, and (3) the extent of contribution of broadband in the growth of GDP. A general formula was developed to incorporate the adjusted median income on both the industry and county levels, along with a broadband contribution factor. This formula was employed to determine policies that can produce optimum economic outcome by leveraging the Pareto method

Supply chain management in construction and engineer-to-order industries

The construction industry is a key sector of every country and the application of supply chain-related techniques holds much promise to improve performance of construction firms in many ways. According to an extended view, which encompasses the construction of industrial and residential buildings, of civil engineering and infrastructure projects, there is a number of major actors that must be coordinated in some way to reach ETO decisions, leading to performance outcomes and metrics. The need to co-ordinate information across the supply chain is a persistent and pressing challenge for ETO companies. Procurement helps to establish the conditions for the supply chain to function effectively. New technologies such as product configurators or cloud manufacturing are being applied. Planning and decision making is a critical driver. In the future, the challenges of applying supply chain management techniques to a construction environment, will require more quantitative studies, to cast light on some potential gains from better information management and use of digital technologies. Then there is also an opportunity to integrate clear upfront planning and procurement with the project delivery processes, and choose the right configurations, focus and relational types. Finally, there is much potential to harness the innovation potential of SMEs

Synthesis Study: Facilities (Enterprise Development, Sponsorship/Privatization)

The Indiana Department of Transportation maintains 17 rest area locations with 28 separate rest area facilities located on interstates for driver safety and convenience. Although the rest areas provide many benefits to the traveling public, the rest areas do not earn direct profits. Moreover, the Indiana Department of Transportation is increasingly challenged by inadequate funding from taxes generated on the interstates. Constrained by Title 23, that prohibits the commercialization and the privatization of the rest areas, the state of Indiana has a high interest in sustainable sources of revenue at the rest areas that would be able to promote the states and facilities tourism and commerce. The benefits that can be recognized by taking up this project are (i) higher revenues for the INDOT (ii) cost savings wherever possible (iii) environmental benefits (iv) better services and safety measures for overnight travelers (v) partnerships with local businesses

Cost-Effectiveness of Constructing Minimal Shelter to Store INDOT Equipment (Weather Protection)

Currently vehicles used by INDOT are more likely to be subject to maintenance and repair than to replacement. The extent of wear and tear on the vehicles is likely to be impacted by the lack of covered storage in all districts. There are many different levels of covered storage—from tent-like structures to completely covered garages to temperature-controlled environments—each of which has different associated costs. But the associated reduction in equipment wear, speed of startup of equipment, and perhaps better mileage may all reflect savings to INDOT. This project evaluates INDOT’s expected return on investment to create covered areas for equipment (vehicles, other assets), while also assessing the cost difference between vehicles left in covered versus uncovered areas. This project can be used to benchmark certain lot sizes of equipment in order to decide whether or not implementing an indoor storage facility is efficient given the harsh conditions that the equipment may be facing during certain periods of the year. The information can be used to see the impact of weathering on snowplow trucks, the maintenance costs that can be reduced, and the payback period of building a shelter facility