Present for the revolution: interview with Gail Rutkowski
Transportation and logistics management has changed markedly in the past three decades. Gail Rutkowski has watched, learned, and played a role in much of what has happened.
Peter Bradley is an award-winning career journalist with more than three decades of experience in both newspapers and national business magazines. His credentials include seven years as the transportation and supply chain editor at Purchasing Magazine and six years as the chief editor of Logistics Management.
Gail Rutkowski got her start in transportation and logistics just on the cusp of major shifts in the way carriers and shippers worked together, a shift largely brought on by deregulation in the 1980s. Today, 30 years later, she serves as executive director of the National Shippers Strategic Transportation Council (NASSTRAC), one of the organizations that worked long and hard to effect legislative and regulatory change.
Rutkowski brings a wealth of experience from both the shipper and carrier sides of transportation management to the position, which she accepted earlier this year. She started out at Quaker Oats and went on to roles in management at Belden Wire and Cable, sales for C.H. Robinson, and transportation management with Thomas & Betts and Medline Industries. She started and ran the logistics services division of AIMS Logistics, before leaving it to launch Wabash Worldwide Logistics.
Rutkowski has long been active in NASSTRAC, serving a term as president and several years on the group's executive committee, and was selected member of the year in 2003, 2005, and 2012. A member of the Illinois Chamber of Commerce Infrastructure Council and the Chicago Traffic Club, she is a frequent speaker at industry conferences. Rutkowski recently spoke to DC Velocity Editorial Director Peter Bradley from her office in Chicago.
Q: What brought you to logistics in the first place?
A: I was very lucky. Early in my career, I was working for Sam Flint at Quaker Oats. Sam was a real mover and shaker in the industry—he helped write the Railroad Revitalization and Regulatory Reform Act back in the '70s. I was working as secretary and had a bird's eye view of how shippers can make a difference and how he stepped up and helped the congressmen and senators he was working with. This was the first piece of transportation deregulation legislation. It was exciting to work for him and an exciting time to be in transportation, to be at the forefront of watching this unfold.
Quaker was the second or third company to get authority to be a private carrier, and Sam spearheaded that effort. I progressed in my career at Quaker Oats, ending up as fleet manager. I got to work with the truckers and learned the industry from the bottom up. I got to see both sides of the business. From the fleet level, I learned how to work with drivers, to spec trucks and crawl around trailers, and learn from drivers what they saw on the road. I couldn't have asked for a better introduction to transportation and logistics. It was perfect.
Q: So you had experience in management and right on the docks? A: Boots on the ground and mud up to my knees, sweeping coffee grounds out of trailers.
Q: You mentioned Sam Flint. Were there other mentors who were important to you? A: Yes, I was very fortunate. I couldn't have asked for better mentors. After Sam, I worked for Cliff Lynch [then vice president of logistics at Quaker Oats]. Cliff was the one who really helped me when I worked in the fleet office and gave me so many opportunities to learn about the industry. He was a wonderful mentor and is still a good friend to this day.
Another was Lou Marino, whom I worked for at Belden Wire and Cable. He was such a visionary. We were doing things back in the '80s that showed up as new things in 2000, things like pool distribution and intermodal transportation. We started the intermodal movement at Quaker Oats using our fleet as our drayage company. Belden took it to the next level, where they were actually guaranteeing service to clients via intermodal. If you placed an order as late as Thursday afternoon in Richmond, Ind., it would be at your dock in L.A. on Monday morning using intermodal. They were real visionaries in what logistics could do and how it could be an important part of your overall supply chain strategy.
Q: You were active in NASSTRAC for a long time before taking on your current role. Why such devotion to the organization? A: You know, I think NASSTRAC was the first organization that embraced transportation education. When it came to what I needed to know to do my job, I learned more from NASSTRAC [than from other organizations]. The people there were welcoming and embraced me, and you just learn to love the folks. It really is about the people, and it really is a great association. To be able to pick up the phone and reach out to Target or Famous Footwear or Best Buy and ask a question and get an answer, it has always been beneficial to me.
Q: What brought you to your current role? A: I've always been interested in the organization not only overall but also in how we do what we do. When I got more involved in advocacy, it became apparent that we needed more focus and really needed to change the way we're perceived. Doug [Easley, NASSTRAC president and director of supply chain solutions for Pathmark Transportation] called and asked if I'd be interested in the opportunity. I was flattered but had to stop and think about whether I really wanted to make this huge career shift. I took a lot of time to think it over. I am thrilled to be here. Every day is a challenge. To be able to shape NASSTRAC, which has been growing over the last few years, is just gratifying.
Q: What do you see as the major challenges for the organization? A: The challenge for every association is to acquire and retain members. You have to have enough touch points into your membership that they know you are there for them and know they can rely on you as their source for transportation education and networking and advocacy. Being able to maintain that level of communication with your members is a challenge for anybody. Companies are not spending a lot of discretionary dollars on association activities or conferences. You need to make sure that what you're offering is worthwhile and that they get enough value for their money or you are not going to succeed as an association. That is a constant battle. What do we do that is different and how do we make our conference of value to our members? That's something we talk about all the time and work on all the time.
Q: What kinds of things are you working on? A: Right now, we've issued for the first time ever our 2014 National Policy Agenda, drafted by Ben Gann, our director of legislative affairs, with the help of [General Counsel] John Cutler and [Advocacy Chair] Mike Reagan and the advocacy committee. It lists all the issues NASSTRAC is interested in and NASSTRAC's stance on the issues, and that will be our agenda for the whole year.
Q: Along with advocacy, education has always been a major focus for NASSTRAC. What's going on there? A: Our education program is one of the best things about NASSTRAC. We're very fortunate to have Dr. [John] Langley [professor of supply chain management at Penn State] as our education adviser. This year, Dr. Brian Gibson [professor of supply chain management at Auburn University] has joined John as a second education adviser. We're looking at making some changes to our program. We want to shake things up a little. Although what we've been doing has been successful, you have to keep it fresh and you have to change things up and make sure people stay engaged.
Amazon package deliveries are about to get a little bit faster—thanks to specially outfitted delivery vans and the magic of AI.
Last month, the mega-retailer introduced its Vision-Assisted Package Retrieval (VAPR)solution, an AI (artificial intelligence)-powered system designed to cut the time it takes drivers to retrieve packages from the back of the van.
According to Amazon, VAPR kicks in when the van arrives at a delivery location, automatically projecting a green “O” on all packages that will be delivered at that stop and a red “X” on all other packages. Not only does that allow the driver to find the right package in seconds, the company says, but it also eliminates the need to organize packages by stop, read and scan labels, and manually check the customer’s name and address to ensure they have the right parcels. As Amazon puts it, “[Drivers] simply have to look for VAPR’s green light, grab, and go.”
The technology combines artificial intelligence (AI) with Amazon Robotics Identification (AR-ID), a form of computer vision originally developed to help fulfillment centers speed up putaway and picking operations. Linked to the van’s delivery route navigation system, AR-ID replaces the need for manual barcode scanning by using specially designed light projectors and cameras mounted inside the van to locate and decipher multiple barcodes in real time, according to the company.
In field tests, VAPR reduced perceived physical and mental effort for drivers by 67% and saved more than 30 minutes per route, Amazon says. The company now plans to roll out VAPR in 1,000 Amazon electric delivery vans from Rivian by early 2025.
We are now into the home stretch of the holiday shopping season—the biggest retail bonanza of the year. By now, many shoppers have already made their purchases and are putting the final touches on their gifts. Some of us procrastinators have not even started. Isn’t that why online shopping was invented?
Here are some interesting facts about Americans’ holiday shopping patterns. The National Retail Federation estimates that consumer spending for the holidays will average $902 per person. Some $641 of that will be for gifts, with the remainder spent on food, decorations, and other holiday items.
Many of those purchases will be online, where more than 21% of all consumer transactions now occur. A recent report from DHL eCommerce reveals that 61% of U.S. shoppers buy online at least once a week, and 84% browse online one or more times a week.
We also buy a range of goods that way—63% buy clothing and footwear through e-commerce sites, according to the DHL report. Next most popular were consumer electronics at 33%, followed by health supplements at 30%.
That first category is interesting, because apparel and footwear are also among the most widely returned items, especially when bought as gifts. Either they don’t fit properly, or they aren’t quite what the recipients had in mind—which means that each January, retailers must cope with a flood of returns.
Of course, returns are not a seasonal phenomenon; consumers return goods—particularly those bought online—year round. Between 25% and 35% of all goods purchased via e-commerce are returned, depending on whose figures you believe. By comparison, only 8% to 9% of products bought in stores, where we can see the actual items and try on clothing and shoes, end up being returned.
Try-ons are not possible with apparel sold online, which leads to the common practice of “bracketing,” where customers order an item in multiple sizes, pick the one that fits best, and send back the rest. The seller typically absorbs the reverse logistics costs—and those costs can be significant. The retail value of returned consumer items totals around $745 billion each year. According to Narvar, a company that helps retailers manage the post-purchase customer experience, more than 90% of returned products have nothing wrong with them. They simply weren’t wanted or needed.
So as you make those final holiday selections, help your fellow supply chain professionals. Choose your gifts wisely to reduce the chances they’ll be returned. And remember, gift cards are always nice.
Funds are continuing to flow to companies building self-driving cars, as the Swiss startup Embotech today said it had raised $27 million to expand autonomous driving solutions for logistics in Europe and beyond, including U.S. operations by the end of 2025.
The Zurich firm said it would use the new funding to help the company scale up its Automated Vehicle Marshalling (AVM) and Autonomous Terminal Tractor (ATT) solutions in Europe, and ultimately in the United States, Middle East, and Asia.
Embotech—which is short for “embedded optimization technologies”—says it has already secured multi-year rollout contracts for its AVM solution in finished vehicle logistics and for its ATT solution for port and yard logistics applications.
Specifically, Embotech began rolling out its AVM solution in 2023 with automaker BMW. The technology guides new BMW vehicles along a one-kilometer route between two assembly facilities, through a squeak and rattle track, and to the finishing area – with no driver needed at any stage of the journey. That will now expand under a multi-year contract to install the AVM solution in six additional BMW passenger car factories worldwide by the end of 2025, including BMW’s plant in Spartanburg, South Carolina.
And for its ATT business, Embotech is gearing up for a major rollout to haul shipping containers at Europe's largest port, the port of Rotterdam in the Netherlands, with 30 units set to be deployed over the next 2 years. The electric ATTs are equipped with Embotech’s Level 4 Autonomous Vehicle (AV) Kit, which enables them to operate autonomously in complex, mixed traffic situations. Embotech’s autonomous tractors use a combination of LIDAR, cameras, and GPS to detect obstacles in all weather conditions and achieve localization accuracy of less than 5 cm.
According to Embotech, its autonomous driving solutions deliver benefits such as increasing operational efficiency through 24-hour operation, flexible peak handling, and improved transparency with digital integration.
The “series B” round was led by Emerald Technology Ventures and Yttrium, with additional funds from BMW i Ventures, Nabtesco Technology Ventures, Sustainable Forward Capital Fund, RKK VC and existing investors. “Embotech impressed us with their unique, highly adaptable autonomous logistics solution,” Axel Krieger, Partner at Yttrium, said in a release. “The company tackles the global logistics challenge for both commercial and passenger vehicles. With a strong orderbook as well as proven industry partnerships, Embotech is uniquely positioned to lead the market. An investment that aligns perfectly with Yttrium’s goal to empower tomorrow’s B2B technology champions."
The private equity-backed warehousing and transportation provider Partners Warehouse has acquired PSS Distribution Services, a third-party logistics (3PL) provider specializing in warehousing, distribution, and value-added services on the East Coast, the company said today.
The move expands Partners Warehouse’s reach from its current territories, which stretch from its Elwood, Illinois, headquarters to its two million square feet of warehousing and rail transloading facilities across eight locations in Illinois, California, and Dallas.
In addition to adding East Coast operations to that footprint, the move will also strengthen Partners’ expertise in the food and ingredients sector, enhance its service capabilities, and improve the business’ capacity to support existing and new clients who require a service provider with a national footprint, the company said.
From its headquarters in Jamesburg, New Jersey, PSS brings experience across industries including food, grocery, retail, food service, direct store distribution (DSD), and e-commerce. The company is known for its state-of-the-art facilities and food-grade warehousing options.
“This acquisition marks a significant milestone in Partners Warehouse’s expansion strategy,” Nick Antoine, Co-Founder, Co-CEO, and Managing Partner of Red Arts Capital, said in a release. “The addition of PSS enables us to grow our capacity and broaden our service offerings, delivering greater value to our clients at a time when demand for warehousing space continues to rise.”
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Photo courtesy of the Association of Equipment Manufacturers (AEM)
Think you know a lot about manufacturing? Your hard-won knowledge might be about to pay off in the form of a brand-new pickup truck. No, you don’t have to physically assemble the vehicle. But you could win a Ford F-150 by playing an industry-themed online game.
The organization says the game is available to anyone in the continental U.S. who visits the tour’s web page, www.manufacturingexpress.org.
The tour itself ended in October after visiting 80 equipment manufacturers in 20 states. Its aim was to highlight the role that the manufacturing industry plays in building, powering, and feeding the world, the group said in a statement.
“This tour [was] about recognizing the essential contributions of U.S. equipment manufacturers and engaging the public in a fun and interactive way,” Wade Balkonis, AEM’s director of grassroots advocacy, said in a release. “Through the Manufacturing Challenge, we’re providing a unique opportunity to raise awareness of our industry and giving participants a chance to win one of the most iconic vehicles in the country—the Ford F-150.”