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.
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]."