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.
Supply chains are poised for accelerated adoption of mobile robots and drones as those technologies mature and companies focus on implementing artificial intelligence (AI) and automation across their logistics operations.
That’s according to data from Gartner’s Hype Cycle for Mobile Robots and Drones, released this week. The report shows that several mobile robotics technologies will mature over the next two to five years, and also identifies breakthrough and rising technologies set to have an impact further out.
Gartner’s Hype Cycle is a graphical depiction of a common pattern that arises with each new technology or innovation through five phases of maturity and adoption. Chief supply chain officers can use the research to find robotic solutions that meet their needs, according to Gartner.
Gartner, Inc.
The mobile robotic technologies set to mature over the next two to five years are: collaborative in-aisle picking robots, light-cargo delivery robots, autonomous mobile robots (AMRs) for transport, mobile robotic goods-to-person systems, and robotic cube storage systems.
“As organizations look to further improve logistic operations, support automation and augment humans in various jobs, supply chain leaders have turned to mobile robots to support their strategy,” Dwight Klappich, VP analyst and Gartner fellow with the Gartner Supply Chain practice, said in a statement announcing the findings. “Mobile robots are continuing to evolve, becoming more powerful and practical, thus paving the way for continued technology innovation.”
Technologies that are on the rise include autonomous data collection and inspection technologies, which are expected to deliver benefits over the next five to 10 years. These include solutions like indoor-flying drones, which utilize AI-enabled vision or RFID to help with time-consuming inventory management, inspection, and surveillance tasks. The technology can also alleviate safety concerns that arise in warehouses, such as workers counting inventory in hard-to-reach places.
“Automating labor-intensive tasks can provide notable benefits,” Klappich said. “With AI capabilities increasingly embedded in mobile robots and drones, the potential to function unaided and adapt to environments will make it possible to support a growing number of use cases.”
Humanoid robots—which resemble the human body in shape—are among the technologies in the breakthrough stage, meaning that they are expected to have a transformational effect on supply chains, but their mainstream adoption could take 10 years or more.
“For supply chains with high-volume and predictable processes, humanoid robots have the potential to enhance or supplement the supply chain workforce,” Klappich also said. “However, while the pace of innovation is encouraging, the industry is years away from general-purpose humanoid robots being used in more complex retail and industrial environments.”
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.
The Boston-based enterprise software vendor Board has acquired the California company Prevedere, a provider of predictive planning technology, saying the move will integrate internal performance metrics with external economic intelligence.
According to Board, the combined technologies will integrate millions of external data points—ranging from macroeconomic indicators to AI-driven predictive models—to help companies build predictive models for critical planning needs, cutting costs by reducing inventory excess and optimizing logistics in response to global trade dynamics.
That is particularly valuable in today’s rapidly changing markets, where companies face evolving customer preferences and economic shifts, the company said. “Our customers spend significant time analyzing internal data but often lack visibility into how external factors might impact their planning,” Jeff Casale, CEO of Board, said in a release. “By integrating Prevedere, we eliminate those blind spots, equipping executives with a complete view of their operating environment. This empowers them to respond dynamically to market changes and make informed decisions that drive competitive advantage.”
Material handling automation provider Vecna Robotics today named Karl Iagnemma as its new CEO and announced $14.5 million in additional funding from existing investors, the Waltham, Massachusetts firm said.
The fresh funding is earmarked to accelerate technology and product enhancements to address the automation needs of operators in automotive, general manufacturing, and high-volume warehousing.
Iagnemma comes to the company after roles as an MIT researcher and inventor, and with leadership titles including co-founder and CEO of autonomous vehicle technology company nuTonomy. The tier 1 supplier Aptiv acquired Aptiv in 2017 for $450 million, and named Iagnemma as founding CEO of Motional, its $4 billion robotaxi joint venture with automaker Hyundai Motor Group.
“Automation in logistics today is similar to the current state of robotaxis, in that there is a massive market opportunity but little market penetration,” Iagnemma said in a release. “I join Vecna Robotics at an inflection point in the material handling market, where operators are poised to adopt automation at scale. Vecna is uniquely positioned to shape the market with state-of-the-art technology and products that are easy to purchase, deploy, and operate reliably across many different workflows.”