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.
Benefits for Amazon's customers--who include marketplace retailers and logistics services customers, as well as companies who use its Amazon Web Services (AWS) platform and the e-commerce shoppers who buy goods on the website--will include generative AI (Gen AI) solutions that offer real-world value, the company said.
The launch is based on “Amazon Nova,” the company’s new generation of foundation models, the company said in a blog post. Data scientists use foundation models (FMs) to develop machine learning (ML) platforms more quickly than starting from scratch, allowing them to create artificial intelligence applications capable of performing a wide variety of general tasks, since they were trained on a broad spectrum of generalized data, Amazon says.
The new models are integrated with Amazon Bedrock, a managed service that makes FMs from AI companies and Amazon available for use through a single API. Using Amazon Bedrock, customers can experiment with and evaluate Amazon Nova models, as well as other FMs, to determine the best model for an application.
Calling the launch “the next step in our AI journey,” the company says Amazon Nova has the ability to process text, image, and video as prompts, so customers can use Amazon Nova-powered generative AI applications to understand videos, charts, and documents, or to generate videos and other multimedia content.
“Inside Amazon, we have about 1,000 Gen AI applications in motion, and we’ve had a bird’s-eye view of what application builders are still grappling with,” Rohit Prasad, SVP of Amazon Artificial General Intelligence, said in a release. “Our new Amazon Nova models are intended to help with these challenges for internal and external builders, and provide compelling intelligence and content generation while also delivering meaningful progress on latency, cost-effectiveness, customization, information grounding, and agentic capabilities.”
The new Amazon Nova models available in Amazon Bedrock include:
Amazon Nova Micro, a text-only model that delivers the lowest latency responses at very low cost.
Amazon Nova Lite, a very low-cost multimodal model that is lightning fast for processing image, video, and text inputs.
Amazon Nova Pro, a highly capable multimodal model with the best combination of accuracy, speed, and cost for a wide range of tasks.
Amazon Nova Premier, the most capable of Amazon’s multimodal models for complex reasoning tasks and for use as the best teacher for distilling custom models
Amazon Nova Canvas, a state-of-the-art image generation model.
Amazon Nova Reel, a state-of-the-art video generation model that can transform a single image input into a brief video with the prompt: dolly forward.
Economic activity in the logistics industry expanded in November, continuing a steady growth pattern that began earlier this year and signaling a return to seasonality after several years of fluctuating conditions, according to the latest Logistics Managers’ Index report (LMI), released today.
The November LMI registered 58.4, down slightly from October’s reading of 58.9, which was the highest level in two years. The LMI is a monthly gauge of business conditions across warehousing and logistics markets; a reading above 50 indicates growth and a reading below 50 indicates contraction.
“The overall index has been very consistent in the past three months, with readings of 58.6, 58.9, and 58.4,” LMI analyst Zac Rogers, associate professor of supply chain management at Colorado State University, wrote in the November LMI report. “This plateau is slightly higher than a similar plateau of consistency earlier in the year when May to August saw four readings between 55.3 and 56.4. Seasonally speaking, it is consistent that this later year run of readings would be the highest all year.”
Separately, Rogers said the end-of-year growth reflects the return to a healthy holiday peak, which started when inventory levels expanded in late summer and early fall as retailers began stocking up to meet consumer demand. Pandemic-driven shifts in consumer buying behavior, inflation, and economic uncertainty contributed to volatile peak season conditions over the past four years, with the LMI swinging from record-high growth in late 2020 and 2021 to slower growth in 2022 and contraction in 2023.
“The LMI contracted at this time a year ago, so basically [there was] no peak season,” Rogers said, citing inflation as a drag on demand. “To have a normal November … [really] for the first time in five years, justifies what we’ve seen all these companies doing—building up inventory in a sustainable, seasonal way.
“Based on what we’re seeing, a lot of supply chains called it right and were ready for healthy holiday season, so far.”
The LMI has remained in the mid to high 50s range since January—with the exception of April, when the index dipped to 52.9—signaling strong and consistent demand for warehousing and transportation services.
The LMI is a monthly survey of logistics managers from across the country. It tracks industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).
Specifically, 48% of respondents identified rising tariffs and trade barriers as their top concern, followed by supply chain disruptions at 45% and geopolitical instability at 41%. Moreover, tariffs and trade barriers ranked as the priority issue regardless of company size, as respondents at companies with less than 250 employees, 251-500, 501-1,000, 1,001-50,000 and 50,000+ employees all cited it as the most significant issue they are currently facing.
“Evolving tariffs and trade policies are one of a number of complex issues requiring organizations to build more resilience into their supply chains through compliance, technology and strategic planning,” Jackson Wood, Director, Industry Strategy at Descartes, said in a release. “With the potential for the incoming U.S. administration to impose new and additional tariffs on a wide variety of goods and countries of origin, U.S. importers may need to significantly re-engineer their sourcing strategies to mitigate potentially higher costs.”
Freight transportation providers and maritime port operators are bracing for rough business impacts if the incoming Trump Administration follows through on its pledge to impose a 25% tariff on Mexico and Canada and an additional 10% tariff on China, analysts say.
Industry contacts say they fear that such heavy fees could prompt importers to “pull forward” a massive surge of goods before the new administration is seated on January 20, and then quickly cut back again once the hefty new fees are instituted, according to a report from TD Cowen.
As a measure of the potential economic impact of that uncertain scenario, transport company stocks were mostly trading down yesterday following Donald Trump’s social media post on Monday night announcing the proposed new policy, TD Cowen said in a note to investors.
But an alternative impact of the tariff jump could be that it doesn’t happen at all, but is merely a threat intended to force other nations to the table to strike new deals on trade, immigration, or drug smuggling. “Trump is perfectly comfortable being a policy paradox and pushing competing policies (and people); this ‘chaos premium’ only increases his leverage in negotiations,” the firm said.
However, if that truly is the new administration’s strategy, it could backfire by sparking a tit-for-tat trade war that includes retaliatory tariffs by other countries on U.S. exports, other analysts said. “The additional tariffs on China that the incoming US administration plans to impose will add to restrictions on China-made products, driving up their prices and fueling an already-under-way surge in efforts to beat the tariffs by importing products before the inauguration,” Andrei Quinn-Barabanov, Senior Director – Supplier Risk Management solutions at Moody’s, said in a statement. “The Mexico and Canada tariffs may be an invitation to negotiations with the U.S. on immigration and other issues. If implemented, they would also be challenging to maintain, because the two nations can threaten the U.S. with significant retaliation and because of a likely pressure from the American business community that would be greatly affected by the costs and supply chain obstacles resulting from the tariffs.”
New tariffs could also damage sensitive supply chains by triggering unintended consequences, according to a report by Matt Lekstutis, Director at Efficio, a global procurement and supply chain procurement consultancy. “While ultimate tariff policy will likely be implemented to achieve specific US re-industrialization and other political objectives, the responses of various nations, companies and trading partners is not easily predicted and companies that even have little or no exposure to Mexico, China or Canada could be impacted. New tariffs may disrupt supply chains dependent on just in time deliveries as they adjust to new trade flows. This could affect all industries dependent on distribution and logistics providers and result in supply shortages,” Lekstutis said.
Grocers and retailers are struggling to get their systems back online just before the winter holiday peak, following a software hack that hit the supply chain software provider Blue Yonder this week.
The ransomware attack is snarling inventory distribution patterns because of its impact on systems such as the employee scheduling system for coffee stalwart Starbucks, according to a published report. Scottsdale, Arizona-based Blue Yonder provides a wide range of supply chain software, including warehouse management system (WMS), transportation management system (TMS), order management and commerce, network and control tower, returns management, and others.
Blue Yonder today acknowledged the disruptions, saying they were the result of a ransomware incident affecting its managed services hosted environment. The company has established a dedicated cybersecurity incident update webpage to communicate its recovery progress, but it had not been updated for nearly two days as of Tuesday afternoon. “Since learning of the incident, the Blue Yonder team has been working diligently together with external cybersecurity firms to make progress in their recovery process. We have implemented several defensive and forensic protocols,” a Blue Yonder spokesperson said in an email.
The timing of the attack suggests that hackers may have targeted Blue Yonder in a calculated attack based on the upcoming Thanksgiving break, since many U.S. organizations downsize their security staffing on holidays and weekends, according to a statement from Dan Lattimer, VP of Semperis, a New Jersey-based computer and network security firm.
“While details on the specifics of the Blue Yonder attack are scant, it is yet another reminder how damaging supply chain disruptions become when suppliers are taken offline. Kudos to Blue Yonder for dealing with this cyberattack head on but we still don’t know how far reaching the business disruptions will be in the UK, U.S. and other countries,” Lattimer said. “Now is time for organizations to fight back against threat actors. Deciding whether or not to pay a ransom is a personal decision that each company has to make, but paying emboldens threat actors and throws more fuel onto an already burning inferno. Simply, it doesn’t pay-to-pay,” he said.
The incident closely followed an unrelated cybersecurity issue at the grocery giant Ahold Delhaize, which has been recovering from impacts to the Stop & Shop chain that it across the U.S. Northeast region. In a statement apologizing to customers for the inconvenience of the cybersecurity issue, Netherlands-based Ahold Delhaize said its top priority is the security of its customers, associates and partners, and that the company’s internal IT security staff was working with external cybersecurity experts and law enforcement to speed recovery. “Our teams are taking steps to assess and mitigate the issue. This includes taking some systems offline to help protect them. This issue and subsequent mitigating actions have affected certain Ahold Delhaize USA brands and services including a number of pharmacies and certain e-commerce operations,” the company said.
Editor's note:This article was revised on November 27 to indicate that the cybersecurity issue at Ahold Delhaize was unrelated to the Blue Yonder hack.