Detours of duty: interview with Dr. Stephen Rutner
In 2009, Dr. Stephen Rutner put his teaching career on hold for his second tour at the Port of Ash Shuaibah in Kuwait. Today, he's back in the classroom with tales from the war zone—in the most literal sense.
Steve Geary is adjunct faculty at the University of Tennessee's Haaslam College of Business and is a lecturer at The Gordon Institute at Tufts University. He is the President of the Supply Chain Visions family of companies, consultancies that work across the government sector. Steve is a contributing editor at DC Velocity, and editor-at-large for CSCMP's Supply Chain Quarterly.
If Dr. Stephen M. Rutner, professor of supply chain management at Georgia Southern University, seems unusually familiar with the ins and outs of moving large international cargo shipments, there's a reason for that. As it happens, Dr. Rutner is also Lt. Col. Rutner, an Army Reserve logistics specialist who has helped move tens of thousands of pieces of military equipment in and out of the Middle East during two tours of duty at a military port in Kuwait.
Rutner originally trained as a tanker, but along the way the Army Reserve discovered that its armor officer had picked up a Ph.D. in logistics and transportation at the University of Tennessee and adjusted its career plan for the "doctor." The rest, as they say, is history.
Rutner recently returned from his second deployment to the Port of Ash Shuaibah, Kuwait, where he served as commander of the 1181st Transportation Terminal and Deployment Distribution Support Battalion. This is the primary military seaport in Southwest Asia supporting our forces in Iraq. He's Airborne qualified, which means he's trained to parachute into a drop zone, and he has earned a Bronze Star. We suspect that his students are afraid to skip class.
Rutner spoke recently with DC VELOCITY Editor at Large Steve Geary about why the Army is involved in running ports, the challenges of moving a 68-ton tank, and what the military can learn from the commercial sector and vice versa.
Q: On behalf of DC VELOCITY and our readers, may we thank you for your service?
A: I appreciate that, but as you go through the airports, please thank all those 18-, 19-, and 20-year-old kids in uniform, not me. They deserve all the pats on the back.
Q: You are both a career academic and a lieutenant colonel in the United States Army Reserves. We all know what a college professor does, but you have now done two tours in Kuwait in an Army uniform working at the military port. Can you give our readers an idea of just what the Army is doing running a port? You think of the Navy when you think of ports. A: This is one of those little skill sets that is critically important to the entire Department of Defense and the Army, but most people don't understand it. There are 12 reserve battalions just like ours, and our mission is to help the warfighter move through the port system to and from the fight. That means we start all the way up at the foxhole helping them come back to the port, moving through the port, and onto the ships, and back to the United States or vice versa. We meet them at the dock and help them get through the process. Since 2004, I guess it is, possibly back into 2003, reserve battalions have been running that process, and we have moved over 750,000 pieces of military equipment in and out of the theater. In any given month, we might move 6,000 or 7,000 pieces of military equipment.
Q: When you talk about 7,000 pieces of military equipment, we're not talking about typewriters and things like that, are we? A: Absolutely not. In my world, a small piece of equipment is a 20-foot container. We move lots of containers for the Army as well as pieces of equipment—an M-1 battle tank, a Bradley tank, all the new high-speed MRAP (mine resistant, ambush-protected) armored vehicles, all the trucks, all the support equipment, the bridges, everything for an Army unit to do its mission.
Q: So when we talk about something like a battle tank, just to give a frame of reference, how much does one of those weigh? A: The M1A1s and A2s that we have seen weigh right around 68 tons. That sounds like a horrific amount of weight, but we are working in an area where we measure things that we load on and off ship in thousands of gross tons. As heavy as an M-1 is, we can probably get 150 of them on one of the big ships if we really need to.
Q: Are military ports a high-volume operation? A: It depends on the port and where you are in the world. Ash Shuaibah, Kuwait, yes. We are by far the highest-volume port in the entire DOD system. Our sister ports, like Beaumont, Texas; Charleston, S.C.; and Jacksonville, Fla., move large amounts, too, but we tend to be the big dog in the process.
Our sister battalions are running places like Aqaba, Jordan. They are doing the same thing on a much smaller scale. Our sister battalion in Bahrain is moving cargo through Karachi [Pakistan, en route to Afghanistan], but they're doing it all with third-party service providers, no military, and they're moving smaller amounts of cargo.
Part of the training, part of the skill set that the Army has given us is the ability to operate in a high-throughput port like Ash Shuaibah or in an unimproved port and do logistics over the shore, which is painfully slow but still a very important skill set if you are going into a third-world country that doesn't have good port facilities.
Q: Given the breadth of the U.S. Army's capabilities for managing the movement of cargo in and out of ports, are there any lessons learned or any insights you can offer to your commercial counterparts? A: I would almost argue the military is learning more lessons from the commercial sector than vice versa. For example, the commercial guys are very good at ship handling, very good at throughput because every hour a ship sits on berth is costing money. Our carriers are just driven on time efficiency. Although time is important to us in the military as well, we have other things that are even more important to us. Where the commercial guys are saying, "Well, you are costing me $10,000 an hour for the ship to sit on berth," the military is going, "Yes, but I've got eight more pieces coming from Iraq that have to go to Kuwait and that will be here at the port tomorrow; those eight have to go with that package to get home so that we create a whole unit move." The learning here is the need to take a deep breath and balance some things. One of the lessons that I think the commercial guys could learn from us is that at the end of the day, it is a dollar business on the commercial side, but sometimes that investment of waiting a few hours and building a little flexibility pays off tenfold down the road.
Q: So the military is taking a look at it from an end-to-end supply chain perspective? A: Absolutely. The commercial carriers that are willing to be flexible and do that, they become the preferred carrier because they are helping the military. Somewhere in Alabama or Georgia, they need that entire package to arrive to keep their system flowing. The carrier is a piece of that supply chain, and when carriers recognize that they are a valuable piece of it, then they become the preferred carrier and all of a sudden, magic things may start happening in their lives. Yes, it could cost them $10,000 here in the port, but if they then become the preferred guy on the list so they get the next bid, which is a $7 million option, it may be worth it six weeks from now.
Q: What important insights are you going to offer to your students at Georgia Southern? A: The biggest lesson I'm going to bring back into the classroom is the need for young lieutenants and captains on the military side and young zone managers in distribution centers or assistant terminal managers in trucking companies who can see the consequences of their decisions. You need people that can think. In a given situation, what do I do? If you do this, what is going to happen? Is it good, is it bad? How did you think through that process to get to that decision?
Q: Is there anything that you would like to add, any point you would like to raise before we wrap this up? A: I am grateful to all of those folks who are over there now and wish them Godspeed. There are going to be times when your readers have the ability to help returning veterans, and I hope companies will continue to be there. I hope all your readers will realize what tremendous logisticians they are. You thanked me in the beginning; let me thank all your readers for helping our guardsmen and reservists go serve and reintegrate back into your companies.
Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.
Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.
Gartner defined the new functions as follows:
Agentic reasoning in GenAI allows for advanced decision-making processes that mimic human-like cognition. This capability will enable procurement functions to leverage GenAI to analyze complex scenarios and make informed decisions with greater accuracy and speed.
Multimodality refers to the ability of GenAI to process and integrate multiple forms of data, such as text, images, and audio. This will make GenAI more intuitively consumable to users and enhance procurement's ability to gather and analyze diverse information sources, leading to more comprehensive insights and better-informed strategies.
AI agents are autonomous systems that can perform tasks and make decisions on behalf of human operators. In procurement, these agents will automate procurement tasks and activities, freeing up human resources to focus on strategic initiatives, complex problem-solving and edge cases.
As CPOs look to maximize the value of GenAI in procurement, the study recommended three starting points: double down on data governance, develop and incorporate privacy standards into contracts, and increase procurement thresholds.
“These advancements will usher procurement into an era where the distance between ideas, insights, and actions will shorten rapidly,” Ryan Polk, senior director analyst in Gartner’s Supply Chain practice, said in a release. "Procurement leaders who build their foundation now through a focus on data quality, privacy and risk management have the potential to reap new levels of productivity and strategic value from the technology."
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.
That challenge is one of the reasons that fewer shoppers overall are satisfied with their shopping experiences lately, Lincolnshire, Illinois-based Zebra said in its “17th Annual Global Shopper Study.”th Annual Global Shopper Study.” While 85% of shoppers last year were satisfied with both the in-store and online experiences, only 81% in 2024 are satisfied with the in-store experience and just 79% with online shopping.
In response, most retailers (78%) say they are investing in technology tools that can help both frontline workers and those watching operations from behind the scenes to minimize theft and loss, Zebra said.
Just 38% of retailers currently use AI-based prescriptive analytics for loss prevention, but a much larger 50% say they plan to use it in the next 1-3 years. That was followed by self-checkout cameras and sensors (45%), computer vision (46%), and RFID tags and readers (42%) that are planned for use within the next three years, specifically for loss prevention.
Those strategies could help improve the brick and mortar shopping experience, since 78% of shoppers say it’s annoying when products are locked up or secured within cases. Adding to that frustration is that it’s hard to find an associate while shopping in stores these days, according to 70% of consumers. In response, some just walk out; one in five shoppers has left a store without getting what they needed because a retail associate wasn’t available to help, an increase over the past two years.
The survey also identified additional frustrations faced by retailers and associates:
challenges with offering easy options for click-and-collect or returns, despite high shopper demand for them
the struggle to confirm current inventory and pricing
lingering labor shortages and increasing loss incidents, even as shoppers return to stores
“Many retailers are laying the groundwork to build a modern store experience,” Matt Guiste, Global Retail Technology Strategist, Zebra Technologies, said in a release. “They are investing in mobile and intelligent automation technologies to help inform operational decisions and enable associates to do the things that keep shoppers happy.”
The survey was administered online by Azure Knowledge Corporation and included 4,200 adult shoppers (age 18+), decision-makers, and associates, who replied to questions about the topics of shopper experience, device and technology usage, and delivery and fulfillment in store and online.
An eight-year veteran of the Georgia company, Hakala will begin his new role on January 1, when the current CEO, Tero Peltomäki, will retire after a long and noteworthy career, continuing as a member of the board of directors, Cimcorp said.
According to Hakala, automation is an inevitable course in Cimcorp’s core sectors, and the company’s end-to-end capabilities will be crucial for clients’ success. In the past, both the tire and grocery retail industries have automated individual machines and parts of their operations. In recent years, automation has spread throughout the facilities, as companies want to be able to see their entire operation with one look, utilize analytics, optimize processes, and lead with data.
“Cimcorp has always grown by starting small in the new business segments. We’ve created one solution first, and as we’ve gained more knowledge of our clients’ challenges, we have been able to expand,” Hakala said in a release. “In every phase, we aim to bring our experience to the table and even challenge the client’s initial perspective. We are interested in what our client does and how it could be done better and more efficiently.”
Although many shoppers will
return to physical stores this holiday season, online shopping remains a driving force behind peak-season shipping challenges, especially when it comes to the last mile. Consumers still want fast, free shipping if they can get it—without any delays or disruptions to their holiday deliveries.
One disruptor that gets a lot of headlines this time of year is package theft—committed by so-called “porch pirates.” These are thieves who snatch parcels from front stairs, side porches, and driveways in neighborhoods across the country. The problem adds up to billions of dollars in stolen merchandise each year—not to mention headaches for shippers, parcel delivery companies, and, of course, consumers.
Given the scope of the problem, it’s no wonder online shoppers are worried about it—especially during holiday season. In its annual report on package theft trends, released in October, the
security-focused research and product review firm Security.org found that:
17% of Americans had a package stolen in the past three months, with the typical stolen parcel worth about $50. Some 44% said they’d had a package taken at some point in their life.
Package thieves poached more than $8 billion in merchandise over the past year.
18% of adults said they’d had a package stolen that contained a gift for someone else.
Ahead of the holiday season, 88% of adults said they were worried about theft of online purchases, with more than a quarter saying they were “extremely” or “very” concerned.
But it doesn’t have to be that way. There are some low-tech steps consumers can take to help guard against porch piracy along with some high-tech logistics-focused innovations in the pipeline that can protect deliveries in the last mile. First, some common-sense advice on avoiding package theft from the Security.org research:
Install a doorbell camera, which is a relatively low-cost deterrent.
Bring packages inside promptly or arrange to have them delivered to a secure location if no one will be at home.
Consider using click-and-collect options when possible.
If the retailer allows you to specify delivery-time windows, consider doing so to avoid having packages sit outside for extended periods.
These steps may sound basic, but they are by no means a given: Fewer than half of Americans consider the timing of deliveries, less than a third have a doorbell camera, and nearly one-fifth take no precautions to prevent package theft, according to the research.
Tech vendors are stepping up to help. One example is
Arrive AI, which develops smart mailboxes for last-mile delivery and pickup. The company says its Mailbox-as-a-Service (MaaS) platform will revolutionize the last mile by building a network of parcel-storage boxes that can be accessed by people, drones, or robots. In a nutshell: Packages are placed into a weatherproof box via drone, robot, driverless carrier, or traditional delivery method—and no one other than the rightful owner can access it.
Although the platform is still in development, the company already offers solutions for business clients looking to secure high-value deliveries and sensitive shipments. The health-care industry is one example: Arrive AI offers secure drone delivery of medical supplies, prescriptions, lab samples, and the like to hospitals and other health-care facilities. The platform provides real-time tracking, chain-of-custody controls, and theft-prevention features. Arrive is conducting short-term deployments between logistics companies and health-care partners now, according to a company spokesperson.
The MaaS solution has a pretty high cool factor. And the common-sense best practices just seem like solid advice. Maybe combining both is the key to a more secure last mile—during peak shipping season and throughout the year as well.