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.
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.”