a series of fortunate events: interview with Susan Rider
Susan Rider was running an ad agency when a fortuitous conversation with a banker changed the course of her career. What followed was a curious journey that has taken her to the top of the supply chain 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.
How does someone who started out in the radio business end up as the head of a consulting firm specializing in marketing, operations, and the supply chain? In Susan Rider's case, it was simply a series of fortunate events. That early job in radio led to a marketing job in banking, which eventually led her to Unarco Material Handling, where she first became acquainted with the supply chain world. From there, she went on to become a specialist in order picking technology at Real Time Solutions before moving over to the software side, serving as an executive for both Manhattan Associates and RedPrairie.
Today, she runs her own consulting firm, Upton, Ky.-based Rider & Associates, where she's able to draw upon her varied background in material handling systems, the enabling software, customer service, training, and marketing. As she puts it, "I can come into a facility and see which pieces and parts are broken and which pieces and parts need to be developed more. I see my role as a valued, trusted adviser—someone who helps the client put together the right pieces and parts to become more effective."
Rider, who has over two decades' experience in the logistics and supply chain fields, has long been active in industry associations. She is a past chairman of the Material Handling Industry of America's Logistics Execution Systems Association product council (now known as the Supply Chain Execution Systems & Technologies Group) and a past president of the Warehousing Education and Research Council (WERC), where she also served on the board of directors for eight years. She currently has a seat on the board of directors of the Council of Supply Chain Management Professionals (CSCMP).
She met last month with DC VELOCITY Group Editorial Director Mitch Mac Donald for a wide-ranging discussion that touched on her unorthodox career path, the secrets to managing a workforce of millennials, and her uncanny resemblance to Bette Midler.
Q: Your career path is more than a little unique. So I guess the question is, how did a nice person like you end up in a business like this?
A: I have asked myself that many times. My professional career has done kind of an about face over time. I started in radio, and I really loved it. Then I went into banking as a marketing director, and I loved banking. I left the banking world and started my own advertising/ marketing agency. I was in Springfield, Tenn., at the time, and a material handling company opened its new corporate marketing offices there. The president of the bank I had worked at told me about the company and suggested I send them a résumé. The company was Unarco Material Handling. I went to work there in 1989, and that's how I entered this wonderful world of supply chain and logistics—in the rack and shelving business under Unarco.
Q: So the industry found you rather than your seeking it out?
A: Exactly. And when I got into the industry, it seemed like it was about 99.9 percent men! It was quite interesting. I ended up taking over training for Unarco, so I traveled the country training distributors on storage racks and the applications of storage racks and how to make your warehouse design more efficient and more effective. I remember walking into these meetings where there were 150 men sitting there. I'm talking to them about buckling and structural rack capacities. Somebody would raise his or her hand and say, "Has anybody ever told you that you look like Bette Midler?" I would be like, "OK, what does that have to do with structural rack?"
Q: Not much. You do look a lot like Bette Midler, though.
A: I know, and I still get that a lot.
Q: Now, back to business. How did you like your work training distributors?
A: I loved the training part, but always talking about racks got kind of boring over time. When I spent time in distribution centers for clients, I could see that the real pain point for the operations folks was order picking. I became really intrigued with pick-to-light technology. So then I became the pick-to-light lady. I went across the country educating people on pick-tolight technology and how automation would help them. I was at Real Time Solutions in that role for many years. In 2000, they were bought out. I left and went to Manhattan Associates. That's when I realized that, OK; material handling products can only be as good as the technology running them. I later left Manhattan and went to RedPrairie. After two whirlwind years at RedPrairie, I opened up my own consulting company.
Q: Your unique background must serve you well in that capacity. You not only understand the minutiae of rack specifications and so on and so forth, but you also have the capability to step back and see how all the parts interconnect. Would you agree?
A: Absolutely. I think that's one of the things that make me unique among consultants and actually, unique in the industry. There are not very many people who have the total material handling background coupled with an enabling software background and then the customer service/marketing aspect of it. I can come into a facility and see which pieces and parts are broken and which pieces and parts need to be developed more. I see my role in what I'm doing now as a valued, trusted adviser— someone who helps the client put together the right pieces and parts to become more effective. That is what I love doing.
Q: Tell us more about Rider & Associates and the services you bring to the market.
A: Our clients range from the very small to the very big. On the big side, Dollar General is a good example. They have been one of our clients for years. On the other end of the spectrum, I am working right now with a very small company that had a 30,000-square-foot facility and no idea what a supply chain was supposed to look like.
We do everything from handling, selection, and supplier connection (because sometimes clients don't realize what they need) to software selection and software program management. One thing that I really enjoy is doing operational audits—going into a facility and walking around, spending a day or two on all three shifts. I love the night shift because you find out all kinds of things on the night shift. Most consultants don't even come to the night shift. But for me, spending some time on the night shift is a priority. I go in looking at how simple things, little golden nuggets, in your facility can increase productivity and efficiency 10 to 30 percent.
We are also focused a lot on training. I get so frustrated at facilities when they don't focus at all on training. Usually when they want to cut the budget, they cut it in training. Then they wonder why they have massive employee turnover and why they aren't very efficient. It's because they haven't focused on the elements that they need to focus on in order to become successful. Training is huge.
Q: Isn't that also a big part of the problem when a company is disappointed with the ROI on, say, a major technological investment?
A: You are absolutely right.
Q: They spent a gazillion dollars on a system. The system was properly specified. It serves their needs perfectly. It was installed correctly. But they never showed the line workers how to use it.
A: That's sadly very typical. They may focus on—and provide funding for—training at the beginning of the process, but unfortunately in today's distribution centers, your turnover rate is anywhere from 40 to 80 percent a year. So you have to have a training budget every single year. I suggest that companies go through a training process—and a validation of the value of the training being provided—every six months. That is where the rubber hits the road. Everybody learns a different way. I am into "feel, touch, see training," then validating that the training stuck. If it didn't, then we go in and do some individual coaching to make sure that they have the tools to do their jobs properly.
But to your specific question, you are absolutely right. People spend millions and millions of dollars on software and don't invest in training year after year. Three to six years later, when they go back and do an audit of that system, they often realize that they're only using maybe 30 to 40 percent of the functionality that they paid all those millions of dollars for.
Q: I know another of your company's specialties is helping clients with recruitment and retention. What are some of the key issues there?
A: The first part of the problem is that many companies still don't realize they are going to have to get creative to attract people. The new generation workforce, some call them the "millennials," are a different breed of people. Companies need to realize that, and they need to understand that if they don't take steps to make their workplace attractive to millennials, they face extinction. They just need to be more creative. How do I attract these people? How do I need to change the way we do things?
There is a Fortune 50 company where they still wear shirts and ties to work at the manager level in a distribution center, in manufacturing. They are an old company that has not evolved with the millennials. I don't see very many millennials saying, "Woo-hoo, I want to go to work for that company and wear a shirt and tie every day." Most of those kids never, ever want to wear a tie. The times aren't just changing, they have already changed.
Q: So what do these companies need to do?
A: Recognize that things have changed and be willing to change the way their positions are structured to accommodate that. For instance, consider the employee who wants to shift to being a full-time mother, or what we would traditionally call a housewife. There is a big trend among women executives who are burning out. They want to shift their focus to be a bit more about being a mother and a bit less about being a business professional. They are in their early 30s and they're saying, "I don't want to do this anymore. I want to take Johnny and Sally to school every day and then maybe do something in between."Well, what's wrong with that?
A smart company will hire them to come in for three or four hours a day while little Johnny is at school. Companies need to be willing to make those kinds of accommodations if they want to keep the best and brightest folks working for them.
On the other end of the spectrum, I think one of the things that's going to be a huge trend for the future is the development and acceptance of jobs that attract folks who are nearing traditional retirement age but don't want to retire fully. As they approach retirement, the Baby Boomers want to stay active. They still want to be involved, but they don't necessarily want to go to work every single day. They don't want to go to work at 8 o'clock every morning, but they still want to work three to four hours a day. That is going to be a huge labor pool, and companies will need to adjust their policies and their structure if they want to take advantage of it. There's a lot of talent and expertise that "retires" from the workforce every year. Smart companies will come up with unique and innovative ways to keep those people involved.
Q: What are your thoughts on the future of the logistics profession?
A: I think the future is bright for this field. I think there is an abundance of opportunities, and the way you discover those opportunities is by staying involved. One thing that has served me well is that I am a sponge. I am open to almost everything. I do about 10 to 20 different trade shows or conferences a year. I talk to people about how they're doing things and what they're doing and what are some of the new concepts. I just soak up what is going on because it is moving so quickly today. Yesterday's solutions are not going to solve today's problems. We have to be open. Things are moving so quickly we have to make sure we stay relevant and remain curious about the new solutions, the new concepts, or the new procedures and stay totally open to what's going on.
Most of the apparel sold in North America is manufactured in Asia, meaning the finished goods travel long distances to reach end markets, with all the associated greenhouse gas emissions. On top of that, apparel manufacturing itself requires a significant amount of energy, water, and raw materials like cotton. Overall, the production of apparel is responsible for about 2% of the world’s total greenhouse gas emissions, according to a report titled
Taking Stock of Progress Against the Roadmap to Net Zeroby the Apparel Impact Institute. Founded in 2017, the Apparel Impact Institute is an organization dedicated to identifying, funding, and then scaling solutions aimed at reducing the carbon emissions and other environmental impacts of the apparel and textile industries.
The author of this annual study is researcher and consultant Michael Sadowski. He wrote the first report in 2021 as well as the latest edition, which was released earlier this year. Sadowski, who is also executive director of the environmental nonprofit
The Circulate Initiative, recently joined DC Velocity Group Editorial Director David Maloney on an episode of the “Logistics Matters” podcast to discuss the key findings of the research, what companies are doing to reduce emissions, and the progress they’ve made since the first report was issued.
A: While companies in the apparel industry can set their own sustainability targets, we realized there was a need to give them a blueprint for actually reducing emissions. And so, we produced the first report back in 2021, where we laid out the emissions from the sector, based on the best estimates [we could make using] data from various sources. It gives companies and the sector a blueprint for what we collectively need to do to drive toward the ambitious reduction [target] of staying within a 1.5 degrees Celsius pathway. That was the first report, and then we committed to refresh the analysis on an annual basis. The second report was published last year, and the third report came out in May of this year.
Q: What were some of the key findings of your research?
A: We found that about half of the emissions in the sector come from Tier Two, which is essentially textile production. That includes the knitting, weaving, dyeing, and finishing of fabric, which together account for over half of the total emissions. That was a really important finding, and it allows us to focus our attention on the interventions that can drive those emissions down.
Raw material production accounts for another quarter of emissions. That includes cotton farming, extracting gas and oil from the ground to make synthetics, and things like that. So we now have a really keen understanding of the source of our industry’s emissions.
Q: Your report mentions that the apparel industry is responsible for about 2% of global emissions. Is that an accurate statistic?
A: That’s our best estimate of the total emissions [generated by] the apparel sector. Some other reports on the industry have apparel at up to 8% of global emissions. And there is a commonly misquoted number in the media that it’s 10%. From my perspective, I think the best estimate is somewhere under 2%.
We know that globally, humankind needs to reduce emissions by roughly half by 2030 and reach net zero by 2050 to hit international goals. [Reaching that target will require the involvement of] every facet of the global economy and every aspect of the apparel sector—transportation, material production, manufacturing, cotton farming. Through our work and that of others, I think the apparel sector understands what has to happen. We have highlighted examples of how companies are taking action to reduce emissions in the roadmap reports.
Q: What are some of those actions the industry can take to reduce emissions?
A: I think one of the positive developments since we wrote the first report is that we’re seeing companies really focus on the most impactful areas. We see companies diving deep on thermal energy, for example. With respect to Tier Two, we [focus] a lot of attention on things like ocean freight versus air. There’s a rule of thumb I’ve heard that indicates air freight is about 10 times the cost [of ocean] and also produces 10 times more greenhouse gas emissions.
There is money available to invest in sustainability efforts. It’s really exciting to see the funding that’s coming through for AI [artificial intelligence] and to see that individual companies, such as H&M and Lululemon, are investing in real solutions in their supply chains. I think a lot of concrete actions are being taken.
And yet we know that reducing emissions by half on an absolute basis by 2030 is a monumental undertaking. So I don’t want to be overly optimistic, because I think we have a lot of work to do. But I do think we’ve got some amazing progress happening.
Q: You mentioned several companies that are starting to address their emissions. Is that a result of their being more aware of the emissions they generate? Have you seen progress made since the first report came out in 2021?
A: Yes. When we published the first roadmap back in 2021, our statistics showed that only about 12 companies had met the criteria [for setting] science-based targets. In 2024, the number of apparel, textile, and footwear companies that have set targets or have commitments to set targets is close to 500. It’s an enormous increase. I think they see the urgency more than other sectors do.
We have companies that have been working at sustainability for quite a long time. I think the apparel sector has developed a keen understanding of the impacts of climate change. You can see the impacts of flooding, drought, heat, and other things happening in places like Bangladesh and Pakistan and India. If you’re a brand or a manufacturer and you have operations and supply chains in these places, I think you understand what the future will look like if we don’t significantly reduce emissions.
Q: There are different categories of emission levels, depending on the role within the supply chain. Scope 1 are “direct” emissions under the reporting company’s control. For apparel, this might be the production of raw materials or the manufacturing of the finished product. Scope 2 covers “indirect” emissions from purchased energy, such as electricity used in these processes. Scope 3 emissions are harder to track, as they include emissions from supply chain partners both upstream and downstream.
Now companies are finding there are legislative efforts around the world that could soon require them to track and report on all these emissions, including emissions produced by their partners’ supply chains. Does this mean that companies now need to be more aware of not only what greenhouse gas emissions they produce, but also what their partners produce?
A: That’s right. Just to put this into context, if you’re a brand like an Adidas or a Gap, you still have to consider the Scope 3 emissions. In particular, there are the so-called “purchased goods and services,” which refers to all of the embedded emissions in your products, from farming cotton to knitting yarn to making fabric. Those “purchased goods and services” generally account for well above 80% of the total emissions associated with a product. It’s by far the most significant portion of your emissions.
Leading companies have begun measuring and taking action on Scope 3 emissions because of regulatory developments in Europe and, to some extent now, in California. I do think this is just a further tailwind for the work that the industry is doing.
I also think it will definitely ratchet up the quality requirements of Scope 3 data, which is not yet where we’d all like it to be. Companies are working to improve that data, but I think the regulatory push will make the quality side increasingly important.
Q: Overall, do you think the work being done by the Apparel Impact Institute will help reduce greenhouse gas emissions within the industry?
A: When we started this back in 2020, we were at a place where companies were setting targets and knew their intended destination, but what they needed was a blueprint for how to get there. And so, the roadmap [provided] this blueprint and identified six key things that the sector needed to do—from using more sustainable materials to deploying renewable electricity in the supply chain.
Decarbonizing any sector, whether it’s transportation, chemicals, or automotive, requires investment. The Apparel Impact Institute is bringing collective investment, which is so critical. I’m really optimistic about what they’re doing. They have taken a data-driven, evidence-based approach, so they know where the emissions are and they know what the needed interventions are. And they’ve got the industry behind them in doing that.
The global air cargo market’s hot summer of double-digit demand growth continued in August with average spot rates showing their largest year-on-year jump with a 24% increase, according to the latest weekly analysis by Xeneta.
Xeneta cited two reasons to explain the increase. First, Global average air cargo spot rates reached $2.68 per kg in August due to continuing supply and demand imbalance. That came as August's global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%.
The second reason for higher rates was an ocean-to-air shift in freight volumes due to Red Sea disruptions and e-commerce demand.
Those factors could soon be amplified as e-commerce shows continued strong growth approaching the hotly anticipated winter peak season. E-commerce and low-value goods exports from China in the first seven months of 2024 increased 30% year-on-year, including shipments to Europe and the US rising 38% and 30% growth respectively, Xeneta said.
“Typically, air cargo market performance in August tends to follow the July trend. But another month of double-digit demand growth and the strongest rate growths of the year means there was definitely no summer slack season in 2024,” Niall van de Wouw, Xeneta’s chief airfreight officer, said in a release.
“Rates we saw bottoming out in late July started picking up again in mid-August. This is too short a period to call a season. This has been a busy summer, and now we’re at the threshold of Q4, it will be interesting to see what will happen and if all the anticipation of a red-hot peak season materializes,” van de Wouw said.
The report cites data showing that there are approximately 1.7 million workers missing from the post-pandemic workforce and that 38% of small firms are unable to fill open positions. At the same time, the “skills gap” in the workforce is accelerating as automation and AI create significant shifts in how work is performed.
That information comes from the “2024 Labor Day Report” released by Littler’s Workplace Policy Institute (WPI), the firm’s government relations and public policy arm.
“We continue to see a labor shortage and an urgent need to upskill the current workforce to adapt to the new world of work,” said Michael Lotito, Littler shareholder and co-chair of WPI. “As corporate executives and business leaders look to the future, they are focused on realizing the many benefits of AI to streamline operations and guide strategic decision-making, while cultivating a talent pipeline that can support this growth.”
But while the need is clear, solutions may be complicated by public policy changes such as the upcoming U.S. general election and the proliferation of employment-related legislation at the state and local levels amid Congressional gridlock.
“We are heading into a contentious election that has already proven to be unpredictable and is poised to create even more uncertainty for employers, no matter the outcome,” Shannon Meade, WPI’s executive director, said in a release. “At the same time, the growing patchwork of state and local requirements across the U.S. is exacerbating compliance challenges for companies. That, coupled with looming changes following several Supreme Court decisions that have the potential to upend rulemaking, gives C-suite executives much to contend with in planning their workforce-related strategies.”
Stax Engineering, the venture-backed startup that provides smokestack emissions reduction services for maritime ships, will service all vessels from Toyota Motor North America Inc. visiting the Toyota Berth at the Port of Long Beach, according to a new five-year deal announced today.
Beginning in 2025 to coincide with new California Air Resources Board (CARB) standards, STAX will become the first and only emissions control provider to service roll-on/roll-off (ro-ros) vessels in the state of California, the company said.
Stax has rapidly grown since its launch in the first quarter of this year, supported in part by a $40 million funding round from investors, announced in July. It now holds exclusive service agreements at California ports including Los Angeles, Long Beach, Hueneme, Benicia, Richmond, and Oakland. The firm has also partnered with individual companies like NYK Line, Hyundai GLOVIS, Equilon Enterprises LLC d/b/a Shell Oil Products US (Shell), and now Toyota.
Stax says it offers an alternative to shore power with land- and barge-based, mobile emissions capture and control technology for shipping terminal and fleet operators without the need for retrofits.
In the case of this latest deal, the Toyota Long Beach Vehicle Distribution Center imports about 200,000 vehicles each year on ro-ro vessels. Stax will keep those ships green with its flexible exhaust capture system, which attaches to all vessel classes without modification to remove 99% of emitted particulate matter (PM) and 95% of emitted oxides of nitrogen (NOx). Over the lifetime of this new agreement with Toyota, Stax estimated the service will account for approximately 3,700 hours and more than 47 tons of emissions controlled.
“We set out to provide an emissions capture and control solution that was reliable, easily accessible, and cost-effective. As we begin to service Toyota, we’re confident that we can meet the needs of the full breadth of the maritime industry, furthering our impact on the local air quality, public health, and environment,” Mike Walker, CEO of Stax, said in a release. “Continuing to establish strong partnerships will help build momentum for and trust in our technology as we expand beyond the state of California.”
That result showed that driver wages across the industry continue to increase post-pandemic, despite a challenging freight market for motor carriers. The data comes from ATA’s “Driver Compensation Study,” which asked 120 fleets, more than 150,000 employee drivers, and 14,000 independent contractors about their wage and benefit information.
Drilling into specific categories, linehaul less-than-truckload (LTL) drivers earned a median annual amount of $94,525 in 2023, while local LTL drivers earned a median of $80,680. The median annual compensation for drivers at private carriers has risen 12% since 2021, reaching $95,114 in 2023. And leased-on independent contractors for truckload carriers were paid an annual median amount of $186,016 in 2023.
The results also showed how the demographics of the industry are changing, as carriers offered smaller referral and fewer sign-on bonuses for new drivers in 2023 compared to 2021 but more frequently offered tenure bonuses to their current drivers and with a greater median value.
"While our last study, conducted in 2021, illustrated how drivers benefitted from the strongest freight environment in a generation, this latest report shows professional drivers' earnings are still rising—even in a weaker freight economy," ATA Chief Economist Bob Costello said in a release. "By offering greater tenure bonuses to their current driver force, many fleets appear to be shifting their workforce priorities from recruitment to retention."