As a kid, she aspired to be a nun or U.S. senator. When that didn’t work out, Gail Rutkowski, outgoing head of NASSTRAC, decided to give transportation a try. She never looked back.
Mitch Mac Donald has more than 30 years of experience in both the newspaper and magazine businesses. He has covered the logistics and supply chain fields since 1988. Twice named one of the Top 10 Business Journalists in the U.S., he has served in a multitude of editorial and publishing roles. The leading force behind the launch of Supply Chain Management Review, he was that brand's founding publisher and editorial director from 1997 to 2000. Additionally, he has served as news editor, chief editor, publisher and editorial director of Logistics Management, as well as publisher of Modern Materials Handling. Mitch is also the president and CEO of Agile Business Media, LLC, the parent company of DC VELOCITY and CSCMP's Supply Chain Quarterly.
When Gail Rutkowski first entered the business, the transportation world was a different place. At the time, everything from routes to rates was heavily regulated by the ICC, the FRA, or the states. Business was conducted via letters and phone calls. And transportation departments—and the professionals who staffed them—were viewed as a cost center and, essentially, a necessary evil.
Today, that’s all changed. The regulatory shackles have been loosened, technology has transformed the way we operate, and the logistics and supply chain profession is finally being accorded the respect it deserves.
Against that backdrop, Rutkowski has forged a unique career path that has included transportation management roles on both the shipper and carrier sides of the fence. Among other positions, she has worked in fleet management for Quaker Oats and Belden Wire and Cable, truckload 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. For the past eight years, she has served as executive director of the National Shippers Strategic Transportation Council (NASSTRAC), an education and advocacy group for freight transportation professionals.
Before taking the top job at NASSTRAC, Rutkowski had long been active in the organization, serving a term as president and several years on the group’s executive committee. She was selected member of the year in 2003, 2005, and 2012. She has also served as a member of the Illinois Chamber of Commerce Infrastructure Council and the Chicago Traffic Club, and has been a frequent speaker at industry conferences.
Prior to her retirement this month, she met with her old friend Mitch Mac Donald, DC Velocity’s group editorial director emeritus, to share her thoughts, reflections, and observations as a leading voice for the industry and the profession—one who has experienced logistics from nearly every perspective.
Q: How did you end up working in transportation and logistics?
A: At 17, I started working in the credit department of the gum manufacturer Wrigley Co. The transport department was right across the hall. And with all of the wisdom that 17-year-olds possess, I decided the transport folks were having a lot more fun. So when an opportunity arose to join Quaker Oats in the transportation department, I jumped at the chance, thinking I would have more fun, and I did.
Q: That’s a company that was known for its transportation and logistics prowess back in the day. Two names that come to mind are the logistics legends Cliff Lynch and Sam Flint.
A: Well, I was very lucky. Both were my bosses at Quaker, but not at the same time. Sam was my first boss at Quaker Oats. He hired Cliff, who became my boss later and was a wonderful mentor for me.
Sam also wrote the 1976 Railroad Revitalization and Regulatory Reform Act. I was the secretary and had a front-row seat to the action, which culminated in the measure’s being signed into law. Sam was also way ahead of the curve in calling for the sunsetting of the Interstate Commerce Commission, which oversaw motor freight pricing before and after the industry was deregulated. He was talking about the need to eliminate the ICC way back in the late 1970s. Of course, it took until 1995 for that to happen, but that gives you an idea of how much of a visionary he was.
Q: As you look back over the past four decades or so, how closely does the career you had match up with whatever career you envisioned as a kid?
A: I had a smile on my face as you asked that question. Given that my initial career plans involved becoming a nun or a U.S. senator, my career was not quite what I originally imagined. However, once I found my place in transportation, I became passionate about the industry and people. Recently, in my position at NASSTRAC, I have been marrying my two passions—transportation and politics. So although I didn’t become a U.S. senator, at least I got to meet a few of them.
Q: What are some of the more positive changes you’ve seen in the freight sector during your career?
A: One would be the way we now view the profession. Logistics was once looked upon as a necessary evil, but that’s no longer the case. Today, we not only see what we now call “supply chain” as an integral part of business, but we also see that integration in action, with the development of holistic approaches to supply chain management. It has all given rise to tremendous improvements in how we serve our customers.
Another would be the digital revolution. The advances in technology cannot be ignored. Technology has really played a lead role in paving the way for those improvements.
Q: What about the other side of the coin. Can you point to any industry developments that have had a not-so-positive effect on the freight sector?
A: Well, as I mentioned, technology is such an important component and certainly a positive. But, on the flip side, I also feel that folks have forgotten that you can’t build a team by going out and securing high-value assets like human beings the same way you buy staplers.
Transportation is a relationship business. You need to establish relationships and then work to sustain them. Today’s technology sometimes seems to overlook that important piece. Those who will prosper are the ones who will develop and maintain those trusted relationships with their transportation provider. You can’t do it via text message.
Q: Are there any basic principles of logistics excellence that have remained the same amid all the changes?
A: I think there’s one principle that’s really the same in any vocation. It is passionate dedication. Without that, the work you do will never be fulfilling, and if it is not fulfilling, what’s the point?
Q: What parts of your personal skill set have served you best throughout your career?
A: I think it is really simple for me. It’s just the pure enjoyment I get from being able to meet the people in our industry. If you enjoy your work, that will come through and color everything you do.
Q: You’ve been heavily involved in a number of industry associations. Why has that been important to you?
A: Once I discovered NASSTRAC as a shipper, I found a resource that I couldn’t find anywhere else. I found shippers who were generous with their knowledge as well as open to talking about problems and sharing solutions.
Today, there is so much information coming at us. How much of it is reliable? How much of it is relevant? NASSTRAC provided that reliable information for me.
Then there’s the professional development side of it. You can only do so much sitting in an office—whether that office is in an industrial park or at home. Unless you look outside for new solutions and new ways of doing things, you are never going to get better. NASSTRAC gave me that opportunity.
Q: You have long championed the cause of gender equity with respect to pay—a battle that continues to this day. What can be done to move this forward that hasn’t already been tried?
A: That is a great question. You know, this is one of those issues that is so easily overlooked by folks when you are not directly impacted by it. For a long time, I thought the issue was being resolved and things were getting better. But it’s clear we’re not there yet. While things are changing, they are changing slowly.
I look around at the many amazing women in our industry today, and most of them are not making the same money their male counterparts do. It is just the way it is. I think it’s the way women are brought up and raised, where we don’t know how to fight for ourselves and blow our own horn. You don’t know how to stand up and be counted.
I think younger women are better at that than we more mature women. It is difficult, and of course you need to do that without coming across as arrogant, overbearing, or emotional. When a woman stands up and is forceful, she is accused of being all kinds of things, whereas with a man, they’re like, ‘Wow, he is a real go-getter.’ That hasn’t gone away. As much as we like to pretend otherwise, it’s still there.
Fortunately, I think the younger women coming up behind me were raised with a different mindset—and that goes for younger men too. Today, men are used to having women as bosses. This younger generation is much more accepting of the idea of gender equality in the workplace. That certainly is going to help, but it is going to take time.
Q: As you noted earlier, logistics was once widely viewed as a necessary cost of doing business. Today, we’ve come to understand that supply chain excellence can be a competitive weapon. What has prompted this change in view?
A: In my mind, logistics has really been the last frontier. Early on in my career, the concentration was always on improving manufacturing. Then there was a focus on marketing, and a big deal was made about that. Then, with the arrival of ERP systems like SAP, the focus shifted to technology and its potential to enhance business operations. Logistics was at the bottom of the list until it became obvious that logistics, to your earlier point, should be viewed not as a cost center, but rather, as a profit center. Improvements in logistics translated immediately to the bottom line.
You can have the best operation on the planet within your four walls, but if you lose control of your supply chain, it doesn’t matter how good you might be.
Q: Any final thoughts?
A: Two. I have had the rare privilege of watching this industry evolve from a behind-the-curtain operation to one that’s now front and center of any company’s strategy. I’ve had the opportunity to meet and interact with some amazing people who make up today’s supply chain, and that will always give me great comfort as I step away.
At the same time, my hope is that after this tumultuous year, we learn to treat each other more kindly, work on developing relationships and increasing the level of trust between parties, and enter into partnerships with a true win-win attitude. We can’t solve today’s problems without working together. If we can achieve that, in my mind, this—not technology—would be the next big thing, and it would be our best hope for moving the industry in a forward direction.
NASSTRAC renames “Shipper of the Year Award” in honor of retiring executive director
2021 Shipper of the Year Award winner Gail Rutkowski
She didn’t know it at the time, but when Gail Rutkowski walked onto the stage at the Council of Supply Chain Management Professionals’ (CSCMP) recent Edge Conference in Atlanta, she had a double surprise in store. Not only would she learn she had been chosen to receive NASSTRAC’s prestigious “Shipper of the Year Award,” but she would also find out the award was being renamed the “Gail Rutkowski Transportation Excellence Award” in her honor.
Rutkowski will retire from her post as executive director of NASSTRAC (the National Shippers Strategic Transportation Council) at the end of this year. She has headed up the organization, which is part of CSCMP, since 2014.
Shown here on stage following the surprise announcement are: (L-R) outgoing CSCMP Board Chair Brian Gibson, CSCMP Board Member Todd Bulmash, Gail Rutkowski, and interim CSCMP CEO Mark Baxa.
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]."