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.
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 practice consists of 5,000 professionals from Accenture and from Avanade—the consulting firm’s joint venture with Microsoft. They will be supported by Microsoft product specialists who will work closely with the Accenture Center for Advanced AI. Together, that group will collaborate on AI and Copilot agent templates, extensions, plugins, and connectors to help organizations leverage their data and gen AI to reduce costs, improve efficiencies and drive growth, they said on Thursday.
Accenture and Avanade say they have already developed some AI tools for these applications. For example, a supplier discovery and risk agent can deliver real-time market insights, agile supply chain responses, and better vendor selection, which could result in up to 15% cost savings. And a procure-to-pay agent could improve efficiency by up to 40% and enhance vendor relations and satisfaction by addressing urgent payment requirements and avoiding disruptions of key services
Likewise, they have also built solutions for clients using Microsoft 365 Copilot technology. For example, they have created Copilots for a variety of industries and functions including finance, manufacturing, supply chain, retail, and consumer goods and healthcare.
Another part of the new practice will be educating clients how to use the technology, using an “Azure Generative AI Engineer Nanodegree program” to teach users how to design, build, and operationalize AI-driven applications on Azure, Microsoft’s cloud computing platform. The online classes will teach learners how to use AI models to solve real-world problems through automation, data insights, and generative AI solutions, the firms said.
“We are pleased to deepen our collaboration with Accenture to help our mutual customers develop AI-first business processes responsibly and securely, while helping them drive market differentiation,” Judson Althoff, executive vice president and chief commercial officer at Microsoft, said in a release. “By bringing together Copilots and human ambition, paired with the autonomous capabilities of an agent, we can accelerate AI transformation for organizations across industries and help them realize successful business outcomes through pragmatic innovation.”
Census data showed that overall retail sales in October were up 0.4% seasonally adjusted month over month and up 2.8% unadjusted year over year. That compared with increases of 0.8% month over month and 2% year over year in September.
October’s core retail sales as defined by NRF — based on the Census data but excluding automobile dealers, gasoline stations and restaurants — were unchanged seasonally adjusted month over month but up 5.4% unadjusted year over year.
Core sales were up 3.5% year over year for the first 10 months of the year, in line with NRF’s forecast for 2024 retail sales to grow between 2.5% and 3.5% over 2023. NRF is forecasting that 2024 holiday sales during November and December will also increase between 2.5% and 3.5% over the same time last year.
“October’s pickup in retail sales shows a healthy pace of spending as many consumers got an early start on holiday shopping,” NRF Chief Economist Jack Kleinhenz said in a release. “October sales were a good early step forward into the holiday shopping season, which is now fully underway. Falling energy prices have likely provided extra dollars for household spending on retail merchandise.”
Despite that positive trend, market watchers cautioned that retailers still need to offer competitive value propositions and customer experience in order to succeed in the holiday season. “The American consumer has been more resilient than anyone could have expected. But that isn’t a free pass for retailers to under invest in their stores,” Nikki Baird, VP of strategy & product at Aptos, a solutions provider of unified retail technology based out of Alpharetta, Georgia, said in a statement. “They need to make investments in labor, customer experience tech, and digital transformation. It has been too easy to kick the can down the road until you suddenly realize there’s no road left.”
A similar message came from Chip West, a retail and consumer behavior expert at the marketing, packaging, print and supply chain solutions provider RRD. “October’s increase proved to be slightly better than projections and was likely boosted by lower fuel prices. As inflation slowed for a number of months, prices in several categories have stabilized, with some even showing declines, offering further relief to consumers,” West said. “The data also looks to be a positive sign as we kick off the holiday shopping season. Promotions and discounts will play a prominent role in holiday shopping behavior as they are key influencers in consumer’s purchasing decisions.”
That result came from the company’s “GEP Global Supply Chain Volatility Index,” an indicator tracking demand conditions, shortages, transportation costs, inventories, and backlogs based on a monthly survey of 27,000 businesses. The October index number was -0.39, which was up only slightly from its level of -0.43 in September.
Researchers found a steep rise in slack across North American supply chains due to declining factory activity in the U.S. In fact, purchasing managers at U.S. manufacturers made their strongest cutbacks to buying volumes in nearly a year and a half, indicating that factories in the world's largest economy are preparing for lower production volumes, GEP said.
Elsewhere, suppliers feeding Asia also reported spare capacity in October, albeit to a lesser degree than seen in Western markets. Europe's industrial plight remained a key feature of the data in October, as vendor capacity was significantly underutilized, reflecting a continuation of subdued demand in key manufacturing hubs across the continent.
"We're in a buyers' market. October is the fourth straight month that suppliers worldwide reported spare capacity, with notable contractions in factory demand across North America and Europe, underscoring the challenging outlook for Western manufacturers," Todd Bremer, vice president, GEP, said in a release. "President-elect Trump inherits U.S. manufacturers with plenty of spare capacity while in contrast, China's modest rebound and strong expansion in India demonstrate greater resilience in Asia."
Even as the e-commerce sector overall continues expanding toward a forecasted 41% of all retail sales by 2027, many small to medium e-commerce companies are struggling to find the investment funding they need to increase sales, according to a sector survey from online capital platform Stenn.
Global geopolitical instability and increasing inflation are causing e-commerce firms to face a liquidity crisis, which means companies may not be able to access the funds they need to grow, Stenn’s survey of 500 senior e-commerce leaders found. The research was conducted by Opinion Matters between August 29 and September 5.
Survey findings include:
61.8% of leaders who sought growth capital did so to invest in advanced technologies, such as AI and machine learning, to improve their businesses.
When asked which resources they wished they had more access to, 63.8% of respondents pointed to growth capital.
Women indicated a stronger need for business operations training (51.2%) and financial planning resources (48.8%) compared to men (30.8% and 15.4%).
40% of business owners are seeking external financial advice and mentorship at least once a week to help with business decisions.
Almost half (49.6%) of respondents are proactively forecasting their business activity 6-18 months ahead.
“As e-commerce continues to grow rapidly, driven by increasing online consumer demand and technological innovation, it’s important to remember that capital constraints and access to growth financing remain persistent hurdles for many e-commerce business leaders especially at small and medium-sized businesses,” Noel Hillman, Chief Commercial Officer at Stenn, said in a release. “In this competitive landscape, ensuring liquidity and optimizing supply chain processes are critical to sustaining growth and scaling operations.”
With six keynote and more than 100 educational sessions, CSCMP EDGE 2024 offered a wealth of content. Here are highlights from just some of the presentations.
A great American story
Author and entrepreneur Fawn Weaver closed out the first day of the conference by telling the little-known story of Nathan “Nearest” Green, who was born into slavery, freed after the Civil War, and went on to become the first master distiller for the Jack Daniel’s Whiskey brand. Through extensive research and interviews with descendants of the Daniel and Green families, Weaver discovered what she describes as a positive American story.
She told the story in her best-selling book, Love & Whiskey: The Remarkable True Story of Jack Daniel, His Master Distiller Nearest Green, and the Improbable Rise of Uncle Nearest. That story also inspired her to create Uncle Nearest Premium Whiskey.
Weaver discussed the barriers she encountered in bringing the brand to life, her vision for where it’s headed, and her take on the supply chain—which she views as both a necessary cost of doing business and an opportunity.
“[It’s] an opportunity if you can move quickly,” she said, pointing to a recent project in which the company was able to fast-track a new Uncle Nearest product thanks to close collaboration with its supply chain partners.
A two-pronged business transformation
We may be living in a world full of technology, but strategy and focus remain the top priorities when it comes to managing a business and its supply chains. So says Roberto Isaias, executive vice president and chief supply chain officer for toy manufacturing and entertainment company Mattel.
Isaias emphasized the point during his keynote on day two of EDGE 2024. He described how Mattel transformed itself amid surging demand for Barbie-branded items following the success of the Barbie movie.
That transformation, according to Isaias, came on two fronts: commercially and logistically. Today, Mattel is steadily moving beyond the toy aisle with two films and 13 TV series in production as well as 14 films and 35 shows in development. And as for those supply chain gains? The company has saved millions, increased productivity, and improved profit margins—even amid cost increases and inflation.
A framework for chasing excellence
Most of the time when CEOs present at an industry conference, they like to talk about their companies’ success stories. Not J.B. Hunt’s Shelley Simpson. Speaking at EDGE, the trucking company’s president and CEO led with a story about a time that the company lost a major customer.
According to Simpson, the company had a customer of their dedicated contract business in 2001 that was consistently making late shipments with no lead time. “We were working like crazy to try to satisfy them, and lost their business,” Simpson said.
When the team at J.B. Hunt later met with the customer’s chief supply chain officer and related all they had been doing, the customer responded, “You never shared everything you were doing for us.”
Out of that experience, came J.B. Hunt’s Customer Value Delivery framework. The framework consists of five steps: 1) understand customer needs, 2) deliver expectations, 3) measure results, 4) communicate performance, and 5) anticipate new value.
Next year’s CSCMP EDGE conference on October 5–8 in National Harbor, Md., promises to have a similarly deep lineup of keynote presentations. Register early at www.cscmpedge.org.