2007 Logistics Executive of the Year Award The National Industrial Transportation League: 100 Years Strong
Over the past century the League has prevailed through regulation, legislation, and deregulation. Today, it’s ushering in a new era of collaboration to put the transportation industry’s best interests forward as it enters the age of stringent security and a looming supply chain talent crisis.
By Michael Levans, Group Editorial Director -- Logistics Management, 11/1/2007
Group Editorial Director Mike Levans speaks about whats new in the November issue of Logistics Management. ; Group Editorial Director Mike Levans tells us whats new in the latest issue of Logistics Management magazine. http://link.brightcove.com/services/link/bcpid1287023334http://www.brightcove.com/channel.jsp?channel=1244057710
When John Ficker, president of the National Industrial Transportation League (NITL), called me to share his suggestion for the 2007 John T. McCullough Logistics Executive of the Year Award, I didn’t bat an eye. While it was a break from tradition, it made all the sense in the world this year.
Read Viewpoint - Breaking tradition
By Michael A. Levans, Group Editorial Director
At the time of the call, the NITL had just wrapped up its Centennial celebration in the fitting environs of the Empire Ballroom at the Palmer House in Chicago. The room was packed with current members, past chairmen, committee members, a few politicians, and plenty of supporters; all there to toast the work the League has done over the past century of putting the interests of the overall transportation community into the spotlight on Capitol Hill—a Herculean task to say the least.
“We can say with some pride that we’ve been able to keep the organization moving forward,” Ficker told me over the phone after the event, “but in reality we realized that the success of this organization over the years has not been about any one individual. It’s the organization itself we need to celebrate.”
For its 100 years of resiliency; for its ability to remain relevant during a century of consistent change; for its steadfast advocacy inside the beltway; and for its unfaltering commitment to networking and empowering people, the NITL and Logistics Management (LM) have chosen to present The National Industrial Transportation League itself with the 2007 John T. McCullough Award. This honor, which recognizes an individual, or organization, for achievement and leadership in the logistics and transportation industry, is co-sponsored by NITL and LM. The award is named after John T. McCullough, a former chief editor of Distribution magazine, a predecessor of LM. The presentation will be made on November 12 at NITL’s 2007 Annual Meeting in Atlanta, Ga.
I recently sat around a table with Ficker, Peter Gatti, executive vice president of the NITL, and the League’s Executive Committee consisting of Curt Warfel, manager of logistics and distribution for Eka Chamicals Inc. and current NITL Chairman of the Board; Matt Ehlinger, director, corporate transportation for NCH Corporation; Mark Maleski, senior merchandise supply chain manager for JCPenney; and Terry Bunch, director of logistics and customer service for Rayonier.
We discussed how the League has remained relevant over this great span of time, how its mission has evolved, and most importantly, what this current group plans to do to make sure the organization is alive and kicking 100 years from today.
For nearly 30 year’s we’ve been giving this award to an individual. Why the change this year?
Ficker: When we discussed nominations, we couldn’t get around the fact that this organization is now 100 years old. So, instead of singling out one person, the executive committee decided we needed to give it to the League itself and not an individual. We’re honored to be sitting in these chairs, but if it wasn’t us sitting here it would be someone else keeping the League alive and relevant. There’s something to be said for being in the trade association business for 100 years.
Gatti: Absolutely. We considered the League as an entity and the value that entity has brought this industry. Just consider the timely information League members receive on a weekly and need-to-know basis. Whether it’s about a pending strike, a labor struggle, or looming legislation, the information the League provides helps professionals make dynamic decisions to put contingency plans into place. When you assess the organizations you belong to, you look at those that provide a return on value. If they don’t provide value, they’re going to get cut. In the long haul, over the past 100 years, the League has simply proven its value.
What’s kept the League relevant and membership engaged over this span of time?
Gatti: What keeps people involved in any organization are the issues. Issues are what created this organization. It was the ICC [Interstate Commerce Commission] jurisdiction and concern over railroad business practices that first pulled a group of traffic managers together in August 1907 at the Grand Pacific Hotel in Chicago. They were there to discuss the issues of the day.
And if you look at the history of the League, it’s always been the issues that have driven member attention and brought them together to find solutions. And if you really dig into it, many of the same issues that were with the founders are still with us today.
Warfel: As a matter of fact, I don’t think the challenges we’re dealing with in 2007 are much different from the ones the founders were dealing with in 1907. There’s no doubt that the world changes faster today, but I think that’s why the League has established a more collaborative approach to representing the transportation industry, and that’s helped it retain its relevance. We were always the voice of the shipper, but since our 20/20 movement a few years ago when we brought carriers in as full members, we transitioned to represent the entire industry. Today, rather than fighting each other on the issues, we all need to be pulling on the oars as one.
Maleski: The perfect example is what we’re doing with the ATA [American Trucking Associations] in petitioning the FMCSA [Federal Motor Carrier Safety Administration] to retain the 11-hour daily driving limit and 34-hour restart provisions of the HOS regulations. This is a prime example of the NITL getting involved and then, after the fact, other aligned organizations wanted to join us in the battle.
We touched a bit on the League’s mission in that last question. How has this mission evolved over the years?
Ficker: A few years ago, we broke the League’s history out in three phases. There was the regulatory phase when there was more confrontation between carriers and shippers. The ICC was right in the thick of our battle, and that prevailed right up until deregulation. Then, as deregulation came in and collaboration began, economic issues between shippers and carriers were handled between the parties rather than regulatory agencies. So, the League’s role changed to one more focused on legislative and policy issues.
I like to refer to the next phase as the legislative phase. Also in this time our economy became much more global and so did the League’s focus. Several major activities of this phase included the passage of the Shipping Act of 1984, passage of undercharge relief in the early ’90s, major rail mergers, intrastate trucking deregulation, ICC Termination Act, and passage of the Ocean Shipping Reform Act [OSRA] in 1998. We also began dealing with issues such as the need for revision of ocean carrier liability.
What phase are we currently in and how will the League be focused?
Ficker: We are in a phase I like to call the collaborative phase. This began in 2002, when we implemented Vision 20/20, which opened membership to carriers. We did this when we asked how we define shippers today. What is UPS? What is Maersk? With the growth in third party logistics, outsourcing, and advances in technology, the lines have blurred. So, to effectively address the current and future transportation issues facing our economy, collaboration, not confrontation, will be the key focus of the League.
With this in mind, what would you say is the value of the organization in 2007?
Gatti: What really stands out through all this time is the Leauge’s ability to facilitate networking of transportation professionals. Networking helps members understand the issues and helps them problem-solve day-to-day challenges, as a community. That’s this organizations biggest value.
Warfel: To expand on that, a year ago I was talking to some press people as I was coming in as the new Chairman. One of them asked me about my plans for the transportation committees. I said I have a lot more familiarity with rail and truck matters and not so much on ocean because you tend to focus on what’s important to your employer at the time. The advantage of the League is that, even as Chairman, I don’t have to be an expert in ocean transportation because we have ocean experts. As a member, you’re never hurting for quality advice from someone.
We stress the importance of membership in organizations, especially now that there’s a need for a more informed workforce. What’s the League’s sales proposition, especially to younger professionals.
Ehlinger: For a young professional, even a mid-level professional, there is no other single organization out there that is this complete. Being involved in the League helps foster a life-learning experience. They can learn, network, and get some of the best legal advice in the country just from networking through this membership. That person-to-person interaction is critical, and always will be critical.
Maleski: Young professionals want to make a name for themselves. Today, it’s not just doing your job; it’s about increasing your knowledge and offering more to your company than just securing a truck. That’s where the League can help. That being said, we need to bring in more young, energetic members and expand what we’re doing today.
Ficker: The chairman of our educational committee refers to membership in the League as career insurance. I can recall when I was a shipper member and C-TPAT was just coming on the radar. Somebody asked me what this was about, and I had no idea. I picked up the phone and made two phone calls to key NITL members, and I had answers in about an hour.
Bunch: We can’t stress that enough. It’s the networking and education element that’s key to understanding all of these issues. The average person has no idea how the goods get there, or how much it costs. And the people who are making the laws and regulations don’t understand it either. One of our roles is to push this education so the people on Capitol Hill can make the best decision possible.
What issues will drive the League over next few years, and in turn keep membership engaged?
Gatti: There’s no greater challenge facing freight transportation today than security. It’s the biggest challenge facing the industry since deregulation thirty years ago. That’s were we can lead the drive. Security is the mainstay. It’s not going to go away, it can’t be ignored, it can’t be hidden, and must be faced forcefully. We need to strike a balance, and we need to support effective measures that are accomplishing what they’re designed to do—not frivolous ideas that are here today, gone tomorrow.
Ficker: Security is probably the number one issue we’re going to face in the next 10 years, but the other one in lock step with that is capacity here in the U.S. And there’s no magic bullet. There are two components to the capacity problem. One is infrastructure, and the other one is human capacity. This is broader than transportation. We have a demographic bubble in the U.S. of baby boomers. There are many of us that will go walking out the door in the next 10 years, and where are the people behind us. We have a responsibility to help develop these people and bring them along.
This need for a younger, deeper talent pool in supply chain is probably bigger than most shippers think. What can the League do to help facilitate the development of people?
Ehlinger: There’s been a lot talk over the past 15 years about how technology is going to replace people. I don’t talk to the computer, I talk to people. And no matter how complicated the issues become, the League will have to continue to provide continued professional development of its membership. It’s still a people to people business, and that will probably never change.
When there’s an issue inside a company or you’re looking to solve an issue, you call an individual inside that company. And that’s what the League does, it helps you build relationships to help solve problems. However, part of our challenge is getting that message out to the younger members of the supply chain community.
Bunch: The talent pool issue will be compounded as we get more and more global. I can’t help thinking about how extended the supply chain has already become, how fragile it’s become, and all the different pieces that have to work together. Having a common ground, a common format for those people to come together about those issues is critical. And because of this, over the next 10 years, I see the League stretching out and becoming more involved in the global issues to even further our networking capabilities and build a more global workforce.
Issues have kept members engaged for the past 100 years. But with so many distractions keeping today’s shippers on their heals, how do you plan to improve that engagement?
Ficker: That’s a constant challenge. For this to be successful, members have to get involved. You just can’t sit back and let it come to you. Peter said years ago that you can’t pass a piece of legislation or impact legislation and put an asterisk by it that says League members only. So there are people who are benefiting from our work without having to participate.
Warfel: But you have a lot more say in the end result if you’re part of the process. Everyone has too much to do, we don’t have enough time to do it, but we somehow carve out a chunk of time to do stuff like this because it means something to you and your employer. You don’t get anything if you don’t give.
Bunch: Just to execute effectively in your job you have to know what’s coming and be prepared to be a better competitor; and this is a key way to do it. You get involved, you hear what’s coming, you discuss it with people who are making it happen, and you get prepared—as opposed to having it happen to you.
Maleski: Well, we really have to reach out and invite them in as well. Getting them into their first meeting and introducing them around table. They’ll be surprised what they learn.
Read Viewpoint - Breaking tradition
- By Michael A. Levans, Group Editorial Director
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How weird is it that after giving himself the award, Ficker up and quit the NITL?
concerned trucker - 2007-11-12 14:12:00 EST
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