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.
The New York-based industrial artificial intelligence (AI) provider Augury has raised $75 million for its process optimization tools for manufacturers, in a deal that values the company at more than $1 billion, the firm said today.
According to Augury, its goal is deliver a new generation of AI solutions that provide the accuracy and reliability manufacturers need to make AI a trusted partner in every phase of the manufacturing process.
The “series F” venture capital round was led by Lightrock, with participation from several of Augury’s existing investors; Insight Partners, Eclipse, and Qumra Capital as well as Schneider Electric Ventures and Qualcomm Ventures. In addition to securing the new funding, Augury also said it has added Elan Greenberg as Chief Operating Officer.
“Augury is at the forefront of digitalizing equipment maintenance with AI-driven solutions that enhance cost efficiency, sustainability performance, and energy savings,” Ashish (Ash) Puri, Partner at Lightrock, said in a release. “Their predictive maintenance technology, boasting 99.9% failure detection accuracy and a 5-20x ROI when deployed at scale, significantly reduces downtime and energy consumption for its blue-chip clients globally, offering a compelling value proposition.”
The money supports the firm’s approach of "Hybrid Autonomous Mobile Robotics (Hybrid AMRs)," which integrate the intelligence of "Autonomous Mobile Robots (AMRs)" with the precision and structure of "Automated Guided Vehicles (AGVs)."
According to Anscer, it supports the acceleration to Industry 4.0 by ensuring that its autonomous solutions seamlessly integrate with customers’ existing infrastructures to help transform material handling and warehouse automation.
Leading the new U.S. office will be Mark Messina, who was named this week as Anscer’s Managing Director & CEO, Americas. He has been tasked with leading the firm’s expansion by bringing its automation solutions to industries such as manufacturing, logistics, retail, food & beverage, and third-party logistics (3PL).
Supply chains continue to deal with a growing volume of returns following the holiday peak season, and 2024 was no exception. Recent survey data from product information management technology company Akeneo showed that 65% of shoppers made holiday returns this year, with most reporting that their experience played a large role in their reason for doing so.
The survey—which included information from more than 1,000 U.S. consumers gathered in January—provides insight into the main reasons consumers return products, generational differences in return and online shopping behaviors, and the steadily growing influence that sustainability has on consumers.
Among the results, 62% of consumers said that having more accurate product information upfront would reduce their likelihood of making a return, and 59% said they had made a return specifically because the online product description was misleading or inaccurate.
And when it comes to making those returns, 65% of respondents said they would prefer to return in-store, if possible, followed by 22% who said they prefer to ship products back.
“This indicates that consumers are gravitating toward the most sustainable option by reducing additional shipping,” the survey authors said in a statement announcing the findings, adding that 68% of respondents said they are aware of the environmental impact of returns, and 39% said the environmental impact factors into their decision to make a return or exchange.
The authors also said that investing in the product experience and providing reliable product data can help brands reduce returns, increase loyalty, and provide the best customer experience possible alongside profitability.
When asked what products they return the most, 60% of respondents said clothing items. Sizing issues were the number one reason for those returns (58%) followed by conflicting or lack of customer reviews (35%). In addition, 34% cited misleading product images and 29% pointed to inaccurate product information online as reasons for returning items.
More than 60% of respondents said that having more reliable information would reduce the likelihood of making a return.
“Whether customers are shopping directly from a brand website or on the hundreds of e-commerce marketplaces available today [such as Amazon, Walmart, etc.] the product experience must remain consistent, complete and accurate to instill brand trust and loyalty,” the authors said.
When you get the chance to automate your distribution center, take it.
That's exactly what leaders at interior design house
Thibaut Design did when they relocated operations from two New Jersey distribution centers (DCs) into a single facility in Charlotte, North Carolina, in 2019. Moving to an "empty shell of a building," as Thibaut's Michael Fechter describes it, was the perfect time to switch from a manual picking system to an automated one—in this case, one that would be driven by voice-directed technology.
"We were 100% paper-based picking in New Jersey," Fechter, the company's vice president of distribution and technology, explained in a
case study published by Voxware last year. "We knew there was a need for automation, and when we moved to Charlotte, we wanted to implement that technology."
Fechter cites Voxware's promise of simple and easy integration, configuration, use, and training as some of the key reasons Thibaut's leaders chose the system. Since implementing the voice technology, the company has streamlined its fulfillment process and can onboard and cross-train warehouse employees in a fraction of the time it used to take back in New Jersey.
And the results speak for themselves.
"We've seen incredible gains [from a] productivity standpoint," Fechter reports. "A 50% increase from pre-implementation to today."
THE NEED FOR SPEED
Thibaut was founded in 1886 and is the oldest operating wallpaper company in the United States, according to Fechter. The company works with a global network of designers, shipping samples of wallpaper and fabrics around the world.
For the design house's warehouse associates, picking, packing, and shipping thousands of samples every day was a cumbersome, labor-intensive process—and one that was prone to inaccuracy. With its paper-based picking system, mispicks were common—Fechter cites a 2% to 5% mispick rate—which necessitated stationing an extra associate at each pack station to check that orders were accurate before they left the facility.
All that has changed since implementing Voxware's Voice Management Suite (VMS) at the Charlotte DC. The system automates the workflow and guides associates through the picking process via a headset, using voice commands. The hands-free, eyes-free solution allows workers to focus on locating and selecting the right item, with no paper-based lists to check or written instructions to follow.
Thibaut also uses the tech provider's analytics tool, VoxPilot, to monitor work progress, check orders, and keep track of incoming work—managers can see what orders are open, what's in process, and what's completed for the day, for example. And it uses VoxTempo, the system's natural language voice recognition (NLVR) solution, to streamline training. The intuitive app whittles training time down to minutes and gets associates up and working fast—and Thibaut hitting minimum productivity targets within hours, according to Fechter.
EXPECTED RESULTS REALIZED
Key benefits of the project include a reduction in mispicks—which have dropped to zero—and the elimination of those extra quality-control measures Thibaut needed in the New Jersey DCs.
"We've gotten to the point where we don't even measure mispicks today—because there are none," Fechter said in the case study. "Having an extra person at a pack station to [check] every order before we pack [it]—that's been eliminated. Not only is the pick right the first time, but [the order] also gets packed and shipped faster than ever before."
The system has increased inventory accuracy as well. According to Fechter, it's now "well over 99.9%."
IT projects can be daunting, especially when the project involves upgrading a warehouse management system (WMS) to support an expansive network of warehousing and logistics facilities. Global third-party logistics service provider (3PL) CJ Logistics experienced this first-hand recently, embarking on a WMS selection process that would both upgrade performance and enhance security for its U.S. business network.
The company was operating on three different platforms across more than 35 warehouse facilities and wanted to pare that down to help standardize operations, optimize costs, and make it easier to scale the business, according to CIO Sean Moore.
Moore and his team started the WMS selection process in late 2023, working with supply chain consulting firm Alpine Supply Chain Solutions to identify challenges, needs, and goals, and then to select and implement the new WMS. Roughly a year later, the 3PL was up and running on a system from Körber Supply Chain—and planning for growth.
SECURING A NEW SOLUTION
Leaders from both companies explain that a robust WMS is crucial for a 3PL's success, as it acts as a centralized platform that allows seamless coordination of activities such as inventory management, order fulfillment, and transportation planning. The right solution allows the company to optimize warehouse operations by automating tasks, managing inventory levels, and ensuring efficient space utilization while helping to boost order processing volumes, reduce errors, and cut operational costs.
CJ Logistics had another key criterion: ensuring data security for its wide and varied array of clients, many of whom rely on the 3PL to fill e-commerce orders for consumers. Those clients wanted assurance that consumers' personally identifying information—including names, addresses, and phone numbers—was protected against cybersecurity breeches when flowing through the 3PL's system. For CJ Logistics, that meant finding a WMS provider whose software was certified to the appropriate security standards.
"That's becoming [an assurance] that our customers want to see," Moore explains, adding that many customers wanted to know that CJ Logistics' systems were SOC 2 compliant, meaning they had met a standard developed by the American Institute of CPAs for protecting sensitive customer data from unauthorized access, security incidents, and other vulnerabilities. "Everybody wants that level of security. So you want to make sure the system is secure … and not susceptible to ransomware.
"It was a critical requirement for us."
That security requirement was a key consideration during all phases of the WMS selection process, according to Michael Wohlwend, managing principal at Alpine Supply Chain Solutions.
"It was in the RFP [request for proposal], then in demo, [and] then once we got to the vendor of choice, we had a deep-dive discovery call to understand what [security] they have in place and their plan moving forward," he explains.
Ultimately, CJ Logistics implemented Körber's Warehouse Advantage, a cloud-based system designed for multiclient operations that supports all of the 3PL's needs, including its security requirements.
GOING LIVE
When it came time to implement the software, Moore and his team chose to start with a brand-new cold chain facility that the 3PL was building in Gainesville, Georgia. The 270,000-square-foot facility opened this past November and immediately went live running on the Körber WMS.
Moore and Wohlwend explain that both the nature of the cold chain business and the greenfield construction made the facility the perfect place to launch the new software: CJ Logistics would be adding customers at a staggered rate, expanding its cold storage presence in the Southeast and capitalizing on the location's proximity to major highways and railways. The facility is also adjacent to the future Northeast Georgia Inland Port, which will provide a direct link to the Port of Savannah.
"We signed a 15-year lease for the building," Moore says. "When you sign a long-term lease … you want your future-state software in place. That was one of the key [reasons] we started there.
"Also, this facility was going to bring on one customer after another at a metered rate. So [there was] some risk reduction as well."
Wohlwend adds: "The facility plus risk reduction plus the new business [element]—all made it a good starting point."
The early benefits of the WMS include ease of use and easy onboarding of clients, according to Moore, who says the plan is to convert additional CJ Logistics facilities to the new system in 2025.
"The software is very easy to use … our employees are saying they really like the user interface and that you can find information very easily," Moore says, touting the partnership with Alpine and Körber as key to making the project a success. "We are on deck to add at least four facilities at a minimum [this year]."