We call them rainmakers, but they're far more likely to be found on the sunny side of The Street. These eight leaders have achieved unparalleled business success and still found time to give their time and energy back to the profession.
Mitch Mac Donald has more than 30 years of experience in both the newspaper and magazine businesses. He has covered the logistics and supply chain fields since 1988. Twice named one of the Top 10 Business Journalists in the U.S., he has served in a multitude of editorial and publishing roles. The leading force behind the launch of Supply Chain Management Review, he was that brand's founding publisher and editorial director from 1997 to 2000. Additionally, he has served as news editor, chief editor, publisher and editorial director of Logistics Management, as well as publisher of Modern Materials Handling. Mitch is also the president and CEO of Agile Business Media, LLC, the parent company of DC VELOCITY and CSCMP's Supply Chain Quarterly.
They may not be as visible as a Carly Fiorina, a Steve Jobs or a Jack Welch, but they're arguably just as influential. Behind the scenes in corporate America are tens of thousands of business logistics professionals responsible for starting the engines of U.S. commerce each day.
Working quietly in their midst are the high achievers: professionals—whether academic consultants, practitioners, entrepreneurs or vendors—who stand out from the crowd like a lone red umbrella in a field of blue. These are the men and women who have not only made it to the top of their profession, but in doing so, have also moved the entire discipline forward. They are the rainmakers.
Welcome to DC VELOCITY's first annual Rainmakers report. Each June, we'll profile a collection of professionals who have excelled in their work and along the way, advanced the profession. This year, we've also asked each candidate to answer two questions: "What do you consider to be your greatest personal/professional accomplishment to date in the logistics field?" and "What do you consider to be the biggest obstacles to greater supply chain optimization in the logistics field?" Their answers appear below.
The rainmakers are selected based on nominations from members of the DC VELOCITY Editorial Advisory Board.
Tom Speh
Tom Speh is the associate dean of business at Miami (Ohio) University, where he teaches logistics and supply chain management. Speh has published articles in the Harvard Business Review, The Journal of Marketing and The Journal of Business Logistics. He is the current president of the Council of Logistics Management and a past president of WERC.
Q: What do you consider to be your greatest personal/professional accomplishment to date in the logistics field?
A: I think it is being the only individual to be president of both the Council of Logistics Management and the Warehousing Education and Research Council.
Q: What do you consider to be the biggest obstacles to greater supply chain optimization in the logistics field?
A: The inability to manage relationships in the supply chain, which is caused by archaic management thinking, a short-term focus stimulated by Wall Street expectations, inappropriate performance metrics and a misunderstanding of how to mesh corporate cultures.
Maria McIntyre
Maria McIntyre is the executive vice president and COO of the Council of Logistics Management (CLM). Her efforts in the logistics profession were recognized last year when she was awarded the Salzberg Medallion from Syracuse University's School of Management.
Q: What do you consider to be your greatest personal/professional accomplishment to date in the logistics field?
A: Repositioning CLM for the future—the new reality—a changing market. Asking our members,through focus groups and surveys, what they think is important to them … what they would like to see our organization do that can support them more and keep them better informed. Then producing research and educational programs to meet those needs.
Q: What do you consider to be the biggest obstacles to greater supply chain optimization in the logistics field?
A: Defining supply chain management and how it relates to logistics. People today use the terms interchangeably. I believe there are differences—I have seen titles change from VP of Logistics to VP of SCM, with no change to the title holder's responsibilities! I believe we need to define what SCM really means, establish a base line of understanding and help educate the profession on the differences.
Christopher B. Lofgren
Christopher B. Lofgren, president, chief executive officer and board member of Schneider National Inc., has overall responsibility for the company's business strategy, growth and profitability. Schneider National is a $2.6 billion provider of transportation and logistics solutions and is the largest truckload carrier in North America.
Q: What do you consider to be your greatest personal/professional accomplishment to date in the logistics field?
A: My most important accomplishment was becoming a member of the great team of associates we have here at Schneider National. The many accomplishments of this fabulous company and my accomplishments stem from the fact that I am part of a place that delivers value and pragmatic excellence to our customers.
A: What do you consider to be the biggest obstacles to greater supply chain optimization in the logistics field?
A: To continue connecting supply chains to their customer and supplier communities. Our customers are beginning to implement and really understand the benefits of collaborative logistics practices.
Bruce R. Abels
Though he started his logistics career at a manufacturing company, Bruce R. Abels, president of Saddle Creek Corp., went on to build two successful warehousing- based third-party logistics ( 3 PL) companies that today report more than $100 million in annual sales each. Abels was also the first president of the Warehousing Education and Research Council (WERC), serving in that capacity for three terms.
Q: What do you consider to be your greatest personal/professional accomplishment to date in the logistics field?
A: I think I have three really special accomplishments: First was building and leading management teams that propelled two companies (Saddle Creek and Unit Distribution) from small companies to sizable 3PL players. Second was building a state-of the-art distribution system at American Can's paper business in the 1970s. Third was being the first president of WERC.
Q: What do you consider to be the biggest obstacles to greater supply chain optimization in the logistics field?
A: Developing trusting, open relationships among supply chain participants where all can win, as opposed to one party's taking advantage of others.
Dr. C. John Langley Jr.
Dr. C. John Langley Jr., the Logistics Institute Professor of Supply Chain Management and director of supply chain executive programs at the Georgia Institute of Technology, has been president of the Council of Logistics Management. He has co-authored several books, including The Management of Business Logistics.
Q: What do you consider to be your greatest personal/professional accomplishment to date in the logistics field?
A: To have been a recipient of the Council of Logistics Management's Distinguished Service Award and the Outstanding Alumnus Award from Penn State University's Business Logistics Program.
Q: What do you consider to be the biggest obstacles to greater supply chain optimization in the logistics field?
A: There are several. The lack of focus on the customer. The ineffectiveness of a ttempts to collaborate with others in the same organization as well as throughout the supply chain. Chronic ineptness at measurement and evaluation. Lack of understanding of what it takes to achieve true supply chain optimization. Inadequate understanding and lack of appreciation by corporate—level executives of the cost reductions, revenue enhancements and differentiation from competitors that may result from effective supply chain management.
Ann Elliott
As president and CEO of Solertis, a consulting and project management firm, Ann Elliott helps her clients reach new levels of excellence while driving millions of dollars of cost out of their infrastructure. She has also taken on leadership roles in the Council of Logistics Management and the Warehousing Education and Research Council.
Q: What do you consider to be your greatest personal/professional accomplishment to date in the logistics field?
A: My greatest accomplishment continues to be the quality of service and results provided to clients. For example, we worked with a $3.5 billion food distribution company to reduce case costs by 52 percent, decrease order fulfillment errors by 53 percent and increase productivity by 30 percent.
Q: What do you consider to be the biggest obstacles to greater supply chain optimization in the logistics field?
A: The biggest obstacle is the failure to achieve true collaboration— to go beyond "lip service" and PowerPoint slides. We have to focus on what is possible when powerful alliances are built between some of the country's top manufacturers.
John Hill
John Hill, a principal and board member of consulting and systems integration firm ESYNC, co-founded and served as a chairman of the Automatic Identification Manufacturers (AIM) trade association. A founding member of the Distribution Research & Education Foundation's Distribution Symbology Study Group as well, Hill has served as president of the Material Handling Education Foundation Inc. and the Material Handling Institute Inc. He currently serves on the Material Handling Industry of America's board of governors.
Q: What do you consider to be your greatest personal/professional accomplishment to date in the logistics field?
A: Ground-floor participation with a solid group of technical and business professionals in initiating, developing and deploying new technology (bar codes and radio-frequency identification) and systems (WMS) for logistics performance improvement—tempered somewhat by the length of the gestation periods, but nonetheless gratifying in that I'm still around to savor their growing contribution to supply chain excellence.
Q: What do you consider to be the biggest obstacles to greater supply chain optimization in the logistics field?
A: Superficial opportunity analysis and project management. Twenty years ago, the concern for many was supply chain technology's availability and readiness. Today, however, the myriad alternatives available have become the supply chain's Achilles' heel—all too frequently contributing to market confusion, lengthy project cycles, unnecessary and risky customization, higher costs and sub-optimal results.The constraint is no longer technology, but rather the inability of many organizations to objectively quantify potential, articulate requirements, assess the alternatives, set achievable objectives and effectively integrate the technology that's available.
Larry M. Sur
Larry M. Sur is CEO and co-founder of IOgistics Inc., a worldwide knowledge-based logistics company that offers a range of contract logistics services. Prior to forming IOgistics Inc., Sur spent 23 years at Schneider National, where he served in many top leadership positions. In 1993 he founded and served as president of Schneider Logistics, a position he held for six years. In 2001, he received the Salzberg Medallion for achievements in logistics and transportation.
Q: What do you consider to be your greatest personal/professional accomplishment to date in the logistics field?
A: I have had the wonderful opportunity to lead outstanding teams in the development of two best-in-class logistics companies. Schneider Logistics was formed in 1993 and became a leader in the 3PL industry. The current company is one I co-founded in 2000, IOgistics. IOgistics is a full-service non-asset based logistics company. Our non-asset approach allows us to focus solely on providing savings and service for our customers.I am privileged to lead IOgistics' superb team of logistics engineering and operations professionals.
Q: What do you consider to be the biggest obstacles to greater supply chain optimization in the logistics field?
A: The logistics industry in the United States has done a terrific job over the past 20 years at reducing cost and improving service, resulting in a better standard of living for all of us. In the future, I see a continuation of that leadership, but there are obstacles that must be faced. As the world becomes smaller and more dangerous, and logistics more global, the issue of cargo security is a must-solve problem. Addressing cargo securi ty while reducing cost is possible if we apply technology and shared information systems. In the past, we have found that threats can become opportunities for those who solve them with technology implemented by skilled people.
Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.
The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.
Total hours of congestion fell slightly compared to 2021 due to softening freight market conditions, but the cost of operating a truck increased at a much higher rate, according to the research. As a result, the overall cost of congestion increased by 15% year-over-year—a level equivalent to more than 430,000 commercial truck drivers sitting idle for one work year and an average cost of $7,588 for every registered combination truck.
The analysis also identified metropolitan delays and related impacts, showing that the top 10 most-congested states each experienced added costs of more than $8 billion. That list was led by Texas, at $9.17 billion in added costs; California, at $8.77 billion; and Florida, $8.44 billion. Rounding out the top 10 list were New York, Georgia, New Jersey, Illinois, Pennsylvania, Louisiana, and Tennessee. Combined, the top 10 states account for more than half of the trucking industry’s congestion costs nationwide—52%, according to the research.
The metro areas with the highest congestion costs include New York City, $6.68 billion; Miami, $3.2 billion; and Chicago, $3.14 billion.
ATRI’s analysis also found that the trucking industry wasted more than 6.4 billion gallons of diesel fuel in 2022 due to congestion, resulting in additional fuel costs of $32.1 billion.
ATRI used a combination of data sources, including its truck GPS database and Operational Costs study benchmarks, to calculate the impacts of trucking delays on major U.S. roadways.
There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.
Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”
Kent, who is a senior fellow at the George H. W. Bush Foundation for U.S.-China Relations, believes the photograph is a good reminder that some 50-odd years ago, the economies of the United States and China were not as tightly interwoven as they are today. At the time, the Nixon administration was looking to form closer political and economic ties between the two countries in hopes of reducing chances of future conflict (and to weaken alliances among Communist countries).
The signals coming out of Washington and Beijing are now, of course, much different than they were in the early 1970s. Instead of advocating for better relations, political rhetoric focuses on the need for the U.S. to “decouple” from China. Both Republicans and Democrats have warned that the U.S. economy is too dependent on goods manufactured in China. They see this dependency as a threat to economic strength, American jobs, supply chain resiliency, and national security.
Supply chain professionals, however, know that extricating ourselves from our reliance on Chinese manufacturing is easier said than done. Many pundits push for a “China + 1” strategy, where companies diversify their manufacturing and sourcing options beyond China. But in reality, that “plus one” is often a Chinese company operating in a different country or a non-Chinese manufacturer that is still heavily dependent on material or subcomponents made in China.
This is the problem when supply chain decisions are made on a global scale without input from supply chain professionals. In an article in the Arkansas Democrat-Gazette, Kent argues that, “The discussions on supply chains mainly take place between government officials who typically bring many other competing issues and agendas to the table. Corporate entities—the individuals and companies directly impacted by supply chains—tend to be under-represented in the conversation.”
Kent is a proponent of what he calls “supply chain diplomacy,” where experts from academia and industry from the U.S. and China work collaboratively to create better, more efficient global supply chains. Take, for example, the “Peace Beans” project that Kent is involved with. This project, jointly formed by Zhejiang University and the Bush China Foundation, proposes balancing supply chains by exporting soybeans from Arkansas to tofu producers in China’s Yunnan province, and, in return, importing coffee beans grown in Yunnan to coffee roasters in Arkansas. Kent believes the operation could even use the same transportation equipment.
The benefits of working collaboratively—instead of continuing to build friction in the supply chain through tariffs and adversarial relationships—are numerous, according to Kent and his colleagues. They believe it would be much better if the two major world economies worked together on issues like global inflation, climate change, and artificial intelligence.
And such relations could play a significant role in strengthening world peace, particularly in light of ongoing tensions over Taiwan. Because, as Kent writes, “The 19th-century idea that ‘When goods don’t cross borders, soldiers will’ is as true today as ever. Perhaps more so.”
Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.
That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.
As a part of the 2021 Infrastructure Investment and Jobs Act, the BABA Act aims to increase the use of American-made materials in federally funded infrastructure projects across the U.S., Hyster-Yale says. It was enacted as part of a broader effort to boost domestic manufacturing and economic growth, and mandates that federal dollars allocated to infrastructure – such as roads, bridges, ports and public transit systems – must prioritize materials produced in the USA, including critical items like steel, iron and various construction materials.
Hyster-Yale’s footprint in the U.S. is spread across 10 locations, including three manufacturing facilities.
“Our leadership is fully invested in meeting the needs of businesses that require BABA-compliant material handling solutions,” Tony Salgado, Hyster-Yale’s chief operating officer, said in a release. “We are working to partner with our key domestic suppliers, as well as identifying how best to leverage our own American manufacturing footprint to deliver a competitive solution for our customers and stakeholders. But beyond mere compliance, and in line with the many areas of our business where we are evolving to better support our customers, our commitment remains steadfast. We are dedicated to delivering industry-leading standards in design, durability and performance — qualities that have become synonymous with our brands worldwide and that our customers have come to rely on and expect.”
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.
The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.
According to Starboard, the logistics industry is under immense pressure to adapt to the growing complexity of global trade, which has hit recent hurdles such as the strike at U.S. east and gulf coast ports. That situation calls for innovative solutions to streamline operations and reduce costs for operators.
As a potential solution, Starboard offers its flagship product, which it defines as an AI-based transportation management system (TMS) and rate management system that helps mid-sized freight forwarders operate more efficiently and win more business. More broadly, Starboard says it is building the virtual infrastructure for global trade, allowing freight companies to leverage AI and machine learning to optimize operations such as processing shipments in real time, reconciling invoices, and following up on payments.
"This investment is a pivotal step in our mission to unlock the power of AI for our customers," said Sumeet Trehan, Co-Founder and CEO of Starboard. "Global trade has long been plagued by inefficiencies that drive up costs and reduce competitiveness. Our platform is designed to empower SMB freight forwarders—the backbone of more than $20 trillion in global trade and $1 trillion in logistics spend—with the tools they need to thrive in this complex ecosystem."