Ann Drake is a trailblazer. As chairman and chief executive officer of DSC Logistics, a provider of supply chain and logistics services, she was one of the first female top executives in a still male-dominated industry. In 2012, she received the prestigious Distinguished Service Award from the Council of Supply Chain Management Professionals (CSCMP)—the first woman to receive the award since it was launched 47 years earlier, in 1965.
While Drake appreciates and values such recognitions, she has no desire to be out front on her own. Rather, her aim is to help other women advance into the ranks of business executives and corporate leaders. Although she has focused much of her effort in the area of supply chain management, through AWESOME (Achieving Women's Excellence in Supply Chain Operations, Management & Education), the organization she founded in 2013, she has long been an advocate for women's leadership in any field of endeavor. Active in the Committee of 200, an international association of women business leaders, she's also a charter member of the Paradigm for Parity (P4P) coalition, a recently formed group of executives who pledge to achieve gender parity in their companies' corporate leadership.
Supply Chain Quarterly spoke with Drake about why she is a champion for women, what's been achieved so far, and what she hopes the future will bring.
What do you find especially fulfilling about the logistics business and your role as a corporate leader?
I'm very lucky to work for a family-controlled company, and I'm lucky that when I came in years ago, it was a logistics business. This field is changing all the time; I feel like I've been in many different businesses!
In addition to having a leading-edge place in a business as important as logistics, it's exciting because this is all about horizontal thinking. It's about knocking down barriers, and also about working across broad themes and across organizations in the supply chain. That's interesting, important, and challenging work.
I never dreamed of being a corporate leader when I was a young woman. But finding myself here, I enjoy watching people grow and helping them grow, meeting challenges head on and rising above them, working together on different, complex challenges, and making customers happy. Those are all really rewarding.
What motivates you to devote your time and effort to issues not only beyond your own company but also beyond your industry?
I see the work I'm involved in outside the company as a platform for improving the world we live in. For example, I was appointed by the House Committee on Transportation and Infrastructure to be on a national commission on the future design of the U.S. interstate highway system. The highway system has a direct impact on logistics and supply chain management, but it is also something that has long-term implications for the country. It's important to be looking to the future. Another example is the Northwestern University Transportation Center. I've been involved in that for about 15 years. It's so valuable being involved in leading-edge thinking on transportation and logistics and working with other companies on thought leadership.
I have been involved since the early '90s in several roles beyond the logistics industry, like the Committee of 200, which is a women's business leadership organization. That's been a source of inspiration, how-to information, and friendships across all kinds of businesses. We learn and grow as leaders together. That has been such a wonderful resource for me, as have other groups I'm involved in. Now, as I'm advancing in my career, I want to help other women to advance and step up to leadership roles. It's very gratifying and really important work because women are so very much in the minority in many businesses, and certainly in logistics and supply chain.
Name: Ann Drake Title: Chairman and chief executive officer, DSC Logistics; founder, Achieving Women's Excellence in Supply Chain Operations, Management, and Education (AWESOME) Education: University of Iowa; Master of Business Administration from the Kellogg School of Management of Northwestern University Recognitions: 2009 "Industry Leader of the Year" Award, Illinois Institute of Technology; 2012 Alumni Merit Award, Kellogg School of Management of Northwestern University; Council of Supply Chain Management Professionals (CSCMP) 2012 Distinguished Service Award; 2014 International Women's Forum Award "Women Who Make a Difference"; 2015 Schultz Award for advancing women in transportation and logistics, McCormick School of Northwestern University Volunteer Experience: Kellogg School Global Advisory Board at Northwestern University; Board of Governors, Chicago Metropolitan Planning Council; Board of Trustees, Chicago Museum of Science and Industry; Board of Governors, Committee of 200; Business Advisory Council, Northwestern University Transportation Center; Committee on the Future Interstate Highway System, appointed by the National Academies of Sciences, Engineering and Medicine CSCMP Member: Since 1985
Why did you launch AWESOME, and have the conditions that prompted that decision changed much since then?
I founded AWESOME in 2013, soon after I received CSCMP's Distinguished Service Award. That was for two reasons. First, I was honored to have been chosen and wanted to do something to give back and further the industry. And second, when I was giving my acceptance speech—I remember this very clearly—one of my lines was, "you remember when ... it was mostly all men." I was complimenting the industry for giving me the award. But then I looked out and realized there weren't many women in the room, and that things hadn't changed as much as I would have liked. I decided it was my responsibility to help advance women's leadership in supply chain, and that I would try to help more women advance in the field. I also felt we were at a tipping point because I had several women customers for the first time. So I thought maybe it was the right time to find senior women and get them together.
I feel like it has changed some in five years, partially because I'm constantly reaching out to women [in supply chain management] and finding them! We're bringing them into the AWESOME network. When we started, we were surprised to find 200 women in senior roles, and now we have more than 900 senior-level women in the network.
It seems like there have been changes in the number of senior women involved in all kinds of businesses, including government and infrastructure. The downside is that the data show that very few women leaders are making it to senior positions, and even fewer to C-suite positions, regardless of what field they're in. I don't think we're going to run out of work for a long time.
At a time when many professional groups are losing members, why is AWESOME growing so quickly, and where do you find members?
I think it is growing so much because it is unique in our industry. So many women have been in the room with mostly men throughout their careers that joining AWESOME is like an opening up, there's a kind of joy to find women colleagues they can talk to, learn from, share stories with, collaborate with, and just enjoy each other. It's camaraderie, it's a network, it's synergy. I have experienced that with all my other women's organizations.
As for finding members, in the early years it was basically me meeting one person at a time at conferences and meetings. If there weren't qualified women in the room, I would tell men about AWESOME and ask them to connect me to someone in their companies. So it was really built one person at a time in the early years. Now we have two senior leaders working with us, both of whom are past chairs of the CSCMP Board of Directors: Nancy Nix, our executive director, and Heather Sheehan, head of member engagement and sponsorship. When we read about or meet somebody who is qualified to join, Heather will connect with her. We really have a small staff working on it, but that outreach is part of why AWESOME has grown so much.
It's amazing to us because we've assumed, like many people have, that there just aren't that many women in senior leadership. Making the organization applicable to a broad base of different kinds of companies has helped—we define the supply chain field very broadly on purpose, because principles of supply chain management and leadership run across so many jobs. But I'm blown away myself by the incredible women leaders we've met.
The criteria for membership are quite specific, including titles, level within the organization, types of organizations, and even minimum revenue thresholds. Why does an organization devoted to breaking down barriers set such restrictions on who can join?
Mostly it developed from what I've learned over the last 25 years about how women's networks work successfully. We're focused on senior women at similar levels and similar places in their careers because they have the influence to be able to make things happen in their companies for other women. We want senior women to get more senior so they can bring along other women in their networks. Also, we think it's beneficial to start small and make sure something is successful rather than take on too much too soon. We want to grow carefully and grow qualitatively. We want to build our way into a bigger, broader future.
Even though AWESOME's criteria are specific in the ways we define senior leadership, the scope of companies and organizations is very broad, from [functions like] manufacturing, procurement, and transportation, to government agencies involved in infrastructure and transportation planning and policy making, to military leaders providing materials and logistics support for troops around the world. That's representative of the way we see supply chain itself: reaching across boundaries and working collaboratively with many entities.
If we had more money, resources, and people we would broaden our programming and educational sessions for other levels of women leaders. But we have added some programming for women in more junior positions; for example, we have scholarships for young women to attend the annual CSCMP conference and the AWESOME Symposium, and we have slots for emerging leaders who are recommended by another member to come to our annual conference. We're hoping to expand programming for them in the future.
We also have information and resources that we publish on our website every Friday that's available to anyone. I also want to mention that every year we review the criteria for membership with our advisory board, and every year we have altered it based on lessons learned.
Why did you create the DSC Women's Leadership Council (WLC), and what are its objectives?
We established it at about the same time as AWESOME. We realized our own numbers weren't tracking very well as I, too, was a victim of thinking there just weren't that many highly qualified women. I also believe a lot of gender bias is truly unconscious. When we started out, I ran focus groups in DSC to figure out why we didn't have more women at various levels. Even just doing that made a difference, because it gave permission for people to talk about the issue together.
WLC started out meeting irregularly, and it created an informal network for those women. We got some speakers and sponsors. I also asked everyone on WLC and on the management team—both men and women—to read Work With Me: The 8 Blind Spots Between Men and Women in Business, by Barbara Annis and John Gray, which talks about the differences in gender styles and points of view. The best working style, of course, is a combination—combining the strengths of both. If you don't have diversity, then you miss out on those strengths.
Currently the criteria for membership are the level of their position, and they have to be either in line management, such as operations, or a customer-facing position. There are about 15 members; DSC overall has 3,600 employees. We took a baseline measurement last year of the percentage of women at all levels. Our goal is to move that percentage up at all levels.
The leadership council now manages itself and does a really good job of enhancing leadership skills. It's already having an impact on the members and on the company. In the future we will work on the goals of the Paradigm for Parity coalition. When I became a member of P4P, I committed to make five actions happen in the company that we believe will lead to more women in leadership positions. If we can help make this happen for women at all levels we will be moving in the right direction.
Members of the Paradigm for Parity coalition commit to achieving gender parity in their corporate leadership by 2030. How do you do that, and how would you measure that change?
Rather than dictating what people should do, we felt we should give them latitude to do it their own way. Mine is to give women a network and to make it okay to hire and promote them.
Traditionally surveys have found that women have to be more qualified than men to get hired into the same positions. We're not only making it okay for people to talk about this, but we're also giving them tools to do something about it. Those are some things I've done in my company, but we're all learning. That's part of why we're doing this—to learn from each other what does make a difference, and what works. Ultimately, our goal is to move the needle on senior positions. When that happens we'll know we've made an impact.
One of P4P's five steps is to provide "sponsors, not just mentors" to women who are positioned for long-term success. What's the difference, and why are sponsors more valuable than mentors?
The idea of sponsors for women came out in the last five years or so. Their job is to make you successful. It puts the burden on the sponsor to help you navigate organizational issues and advance you in the organization. Mentors might talk to you once in while, and you may have a relationship with them and look up to them. It's much more informal. So sponsors are much more responsible for the end result and have accountability.
Both are very important and very valuable, but sponsorship has a bigger impact. We learned this because we looked at men's networks and why they are so successful. One of the learnings was that we need to take a more active role in helping women advance. It doesn't have to be only women sponsors; men can be sponsors, too. In fact, it's best to work with both kinds of sponsors in your career.
If P4P's goals become reality, will organizations like AWESOME and P4P still be necessary or relevant?
It's going to be so far in the future I can't even think about there ever being a time when we wouldn't be needed. There will always be a need for sources of learning and collaboration. I think there is still so much to be done.
You have four granddaughters. What are your aspirations for them in the future?
Yes, I have four very lovely granddaughters. The oldest is 16. I'm thinking about how to ensure that they have equal chances to do whatever makes them happy and successful. That's why I pay this much attention to removing barriers and figuring out how to make women successful leaders in every endeavor and business—I want to help make it possible for a workplace, a country, a school system, a cultural institution to be able to achieve their best by having diverse members and people in their organizations. And clearly I care about individual happiness for my family members. I'm sure many readers feel the same about their families.
That changing landscape is forcing companies to adapt or replace their traditional approaches to product design and production. Specifically, many are changing the way they run factories by optimizing supply chains, increasing sustainability, and integrating after-sales services into their business models.
“North American manufacturers have embraced the factory of the future. Working with service providers, many companies are using AI and the cloud to make production systems more efficient and resilient,” Bob Krohn, partner at ISG, said in the “2024 ISG Provider Lens Manufacturing Industry Services and Solutions report for North America.”
To get there, companies in the region are aggressively investing in digital technologies, especially AI and ML, for product design and production, ISG says. Under pressure to bring new products to market faster, manufacturers are using AI-enabled tools for more efficient design and rapid prototyping. And generative AI platforms are already in use at some companies, streamlining product design and engineering.
At the same time, North American manufacturers are seeking to increase both revenue and customer satisfaction by introducing services alongside or instead of traditional products, the report says. That includes implementing business models that may include offering subscription, pay-per-use, and asset-as-a-service options. And they hope to extend product life cycles through an increasing focus on after-sales servicing, repairs. and condition monitoring.
Additional benefits of manufacturers’ increased focus on tech include better handling of cybersecurity threats and data privacy regulations. It also helps build improved resilience to cope with supply chain disruptions by adopting cloud-based supply chain management, advanced analytics, real-time IoT tracking, and AI-enabled optimization.
“The changes of the past several years have spurred manufacturers into action,” Jan Erik Aase, partner and global leader, ISG Provider Lens Research, said in a release. “Digital transformation and a culture of continuous improvement can position them for long-term success.”
The less-than-truckload (LTL) industry moved closer to a revamped freight classification system this week, as the National Motor Freight Traffic Association (NMFTA) continued to spread the word about upcoming changes to the way it helps shippers and carriers determine delivery rates. The NMFTA will publish proposed changes to its National Motor Freight Classification (NMFC) system Thursday, a transition announced last year, and that the organization has termed its “classification reimagination” process.
Businesses throughout the LTL industry will be affected by the changes, as the NMFC is a tool for setting prices that is used daily by transportation providers, trucking fleets, third party logistics service providers (3PLs), and freight brokers.
Representatives from NMFTA were on hand to discuss the changes at the LTL-focused supply chain conference Jump Start 25 in Atlanta this week. The project’s goal is to make what is currently a complex freight classification system easier to understand and “to make the logistics process as frictionless as possible,” NMFTA’s Director of Operations Keith Peterson told attendees during a presentation about the project.
The changes seek to simplify classification by grouping similar items together and assigning most classes based solely on density. Exceptions will be handled separately, adding other characteristics when density alone is not enough to determine an accurate class.
When the updates take effect later this year, shippers may see shifts in the LTL prices they pay to move freight—because the way their freight is classified, and subsequently billed, could change as a result.
NMFTA will publish the proposed changes this Thursday, January 30, in a document called Docket 2025-1. The docket will include more than 90 proposed changes and is open to industry feedback through February 25. NMFTA will follow with a public meeting to review and discuss feedback on March 3. The changes will take effect July 19.
NMFTA has a dedicated website detailing the changes, where industry stakeholders can register to receive bi-weekly updates: https://info.nmfta.org/2025-nmfc-changes.
Artificial intelligence (AI) and the economy were hot topics on the opening day of SMC3 Jump Start 25, a less-than-truckload (LTL)-focused supply chain event taking place in Atlanta this week. The three-day event kicked off Monday morning to record attendance, with more than 700 people registered, according to conference planners.
The event opened with a keynote presentation from AI futurist Zack Kass, former head of go to market for OpenAI. He talked about the evolution of AI as well as real-world applications of the technology, furthering his mission to demystify AI and make it accessible and understandable to people everywhere. Kass is a speaker and consultant who works with businesses and governments around the world.
The opening day also featured a slate of economic presentations, including a global economic outlook from Dr. Jeff Rosensweig, director of the John Robson Program for Business, Public Policy, and Government at Emory University, and a “State of LTL” report from economist Keith Prather, managing director of Armada Corporate Intelligence. Both speakers pointed to a strong economy as 2025 gets underway, emphasizing overall economic optimism and strong momentum in LTL markets.
Other highlights included interviews with industry leaders Chris Jamroz and Rick DiMaio. Jamroz is executive chairman of the board and CEO of Roadrunner Transportation Systems, and DiMaio is executive vice president of supply chain for Ace Hardware.
Jump Start 25 runs through Wednesday, January 29, at the Renaissance Atlanta Waverly Hotel & Convention Center.
That is important because the increased use of robots has the potential to significantly reduce the impact of labor shortages in manufacturing, IFR said. That will happen when robots automate dirty, dull, dangerous or delicate tasks – such as visual quality inspection, hazardous painting, or heavy lifting—thus freeing up human workers to focus on more interesting and higher-value tasks.
To reach those goals, robots will grow through five trends in the new year, the report said:
1 – Artificial Intelligence. By leveraging diverse AI technologies, such as physical, analytical, and generative, robotics can perform a wide range of tasks more efficiently. Analytical AI enables robots to process and analyze the large amounts of data collected by their sensors. This helps to manage variability and unpredictability in the external environment, in “high mix/low-volume” production, and in public environments. Physical AI, which is created through the development of dedicated hardware and software that simulate real-world environments, allows robots to train themselves in virtual environments and operate by experience, rather than programming. And Generative AI projects aim to create a “ChatGPT moment” for Physical AI, allowing this AI-driven robotics simulation technology to advance in traditional industrial environments as well as in service robotics applications.
2 – Humanoids.
Robots in the shape of human bodies have received a lot of media attention, due to their vision where robots will become general-purpose tools that can load a dishwasher on their own and work on an assembly line elsewhere. Start-ups today are working on these humanoid general-purpose robots, with an eye toward new applications in logistics and warehousing. However, it remains to be seen whether humanoid robots can represent an economically viable and scalable business case for industrial applications, especially when compared to existing solutions. So for the time being, industrial manufacturers are still focused on humanoids performing single-purpose tasks only, with a focus on the automotive industry.
3 – Sustainability – Energy Efficiency.
Compliance with the UN's environmental sustainability goals and corresponding regulations around the world is becoming an important requirement for inclusion on supplier whitelists, and robots play a key role in helping manufacturers achieve these goals. In general, their ability to perform tasks with high precision reduces material waste and improves the output-input ratio of a manufacturing process. These automated systems ensure consistent quality, which is essential for products designed to have long lifespans and minimal maintenance. In the production of green energy technologies such as solar panels, batteries for electric cars or recycling equipment, robots are critical to cost-effective production. At the same time, robot technology is being improved to make the robots themselves more energy-efficient. For example, the lightweight construction of moving robot components reduces their energy consumption. Different levels of sleep mode put the hardware in an energy saving parking position. Advances in gripper technology use bionics to achieve high grip strength with almost no energy consumption.
4 – New Fields of Business.
The general manufacturing industry still has a lot of potential for robotic automation. But most manufacturing companies are small and medium-sized enterprises (SMEs), which means the adoption of industrial robots by SMEs is still hampered by high initial investment and total cost of ownership. To address that hurdle, Robot-as-a-Service (RaaS) business models allow enterprises to benefit from robotic automation with no fixed capital involved. Another option is using low-cost robotics to provide a “good enough” product for applications that have low requirements in terms of precision, payload, and service life. Powered by the those approaches, new customer segments beyond manufacturing include construction, laboratory automation, and warehousing.
5 – Addressing Labor Shortage.
The global manufacturing sector continues to suffer from labor shortages, according to the International Labour Organisation (ILO). One of the main drivers is demographic change, which is already burdening labor markets in leading economies such as the United States, Japan, China, the Republic of Korea, or Germany. Although the impact varies from country to country, the cumulative effect on the supply chain is a concern almost everywhere.
Overall disruptions to global supply chains in 2024 increased 38% from the previous year, thanks largely to the top five drivers of supply chain disruptions for the year: factory fires, labor disruption, business sale, leadership transition, and mergers & acquisitions, according to a study from Resilinc.
Factory fires maintained their position as the number one disruption for the sixth consecutive year, with 2,299 disruption alerts issued. Fortunately, this number is down 20% from the previous year and has declined 36% from the record high in 2022, according to California-based Resilinc, a provider of supply chain resiliency solutions.
Labor disruptions made it into the top five list for the second year in a row, jumping up to the second spot with a 47% year-over-year increase following a number of company and site-level strikes, national strikes, labor protests, and layoffs. From the ILA U.S. port strike, impacting over 47,000 workers, and the Canadian rail strike to major layoffs at tech giants Intel, Dell, and Amazon, labor disruptions continued its streak as a key risk area for 2024.
And financial risk areas, including business sales, leadership transitions, and mergers and acquisitions, rounded out the top five disruptions for 2024. While business sales climbed a steady 17% YoY, leadership transitions surged 95% last year. Several notable transitions included leadership changes at Boeing, Nestlé, Pfizer Limited, and Intel. While mergers and acquisitions saw a slight decline of 5%, they remained a top disruption for 2024.
Other noteworthy trends highlighted in the data include a 146% rise in labor violations such as forced labor, poor working conditions, and health and safety violations, among others. Geopolitical risk alerts climbed 123% after a brief dip in 2023, and protests/riots saw an astounding 285% YoY increase, marking the largest growth increase of all risk events tracked by Resilinc. Regulatory change alerts, which include tariffs, changes in laws, environmental regulations, and bans, continued their upward trend with a 128% YoY increase.
The five most disrupted industries included: life sciences, healthcare, general manufacturing, high tech, and automotive, marking the fourth year in a row that those particular industries have been the most impacted.
Resilinc gathers its data through its 24/7 global event monitoring Artificial Intelligence, EventWatch AI, which collects information and monitors news on 400 different types of disruptions across 104 million sources including traditional news sources, social media platforms, wire services, videos, and government reports. Annually, the AI contextualizes and analyzes nearly 5 billion data feeds across 100 languages in 200 countries.