As head of the U.S. Chamber of Commerce's transportation infrastructure programs, Janet Kavinoky balances the roles of lobbyist and policymaker—and does it all under the watchful eye of legendary Chamber CEO Tom Donohue.
Mark Solomon joined DC VELOCITY as senior editor in August 2008, and was promoted to his current position on January 1, 2015. He has spent more than 30 years in the transportation, logistics and supply chain management fields as a journalist and public relations professional. From 1989 to 1994, he worked in Washington as a reporter for the Journal of Commerce, covering the aviation and trucking industries, the Department of Transportation, Congress and the U.S. Supreme Court. Prior to that, he worked for Traffic World for seven years in a similar role. From 1994 to 2008, Mr. Solomon ran Media-Based Solutions, a public relations firm based in Atlanta. He graduated in 1978 with a B.A. in journalism from The American University in Washington, D.C.
There may be people in Washington these days with fuller plates than Janet F. Kavinoky, but they might be hard to find.
As the head of the U.S. Chamber of Commerce's transportation infrastructure programs as well as the group's Americans for Transportation Mobility campaign and Let's Rebuild America coalition, the 37-year-old Stanford Business School graduate is at the pivot point of the Chamber's efforts to promote economic growth and job creation. In her role as the Chamber's top infrastructure lobbyist, Kavinoky is responsible for ensuring the collective voices of its 3 million members are heard during congressional negotiations to reauthorize the nation's transportation programs. She is spearheading the Chamber's ambitious effort to measure the performance of the nation's four infrastructure pillars: transportation, energy, broadband, and water. And she is doing it all under the watchful eye of Chamber CEO Tom Donohue, whose keen interest in and understanding of infrastructure issues goes back to his days running the American Trucking Associations.
Kavinoky spoke recently with DC Velocity Senior Editor Mark B. Solomon at the Chamber's Washington headquarters about her dual roles as policymaker and lobbyist, the importance of freight interests in driving the debate over infrastructure spending, and the challenges and opportunities of working with Donohue, one of the nation's most powerful trade association chiefs and one who doesn't suffer fools gladly.
Q: How did you find yourself at the Chamber, as well as in the transportation field?
A: I've been at the Chamber for four years, and I got an accidental start in transportation 15 years ago. I got a job at the Department of Transportation, and they stuck me in the policy office and said I was going to work on ISTEA [Intermodal Surface Transportation Efficiency Act] reauthorization. And I wrote down "Iced Tea?" on a notepad.
I stayed at DOT for four years, and finished my stint as special assistant to [DOT] Secretary [Rodney] Slater. I then got my M.B.A. at Stanford. After a time at a consulting firm, I called Jack Basso, who was director of budget and programs at the American Association of State Highway and Transportation Officials (AASHTO) and who was CFO at DOT when I was there. Jack made room for me at AASHTO. I stayed there for four years and then moved to the Chamber. Here, we like to say we handle everything that floats, flies, and rolls.
Q: Is there a value-add to your efforts that you work so closely with Tom Donohue, who is one of the most influential trade association executives in the country and has such a deep understanding of the work you do? A: Tom's interest in transportation and infrastructure makes our work a core priority. But when you work for someone who knows so much about this, it is also a bit daunting. I can't B.S. and say "I know what I'm talking about." I have to know my stuff. It makes me work a lot better. Tom takes a very personal interest in this issue, so even though I report to many people here, I feel I am directly accountable to him.
Q: What is the Chamber's infrastructure agenda for 2010 and how do you plan to execute on it? A: Our vision for infrastructure is that we have a physical platform to the economy that needs to work in the way business needs it to work and to accommodate the needs of what will be a growing economy. In 2010, our aims are to make sure that the environment for business to deliver is in place, and that the government is actually doing what it is supposed to be doing.
We want to bring a business perspective and a business voice to the discussion. Traditionally, infrastructure has been about the construction industry, or about the transportation services industry. We want to talk about infrastructure from a business perspective.
Q: Will the fact that this is an election year facilitate your efforts, or hinder them? A: One would think that because we know infrastructure supports and creates jobs, because we know that infrastructure has needs that are visible and apparent, and because people like to see things being built, in an election year, it would be a no-brainer. Unfortunately, there are members of Congress who want to politicize infrastructure. They call highway and bridge spending "wasteful." They characterize infrastructure investment as the same thing as more big government. Changing minds on Capitol Hill is a real uphill fight in an election year.
Q: About $27 billion of $787 billion in federal stimulus money went to roads and bridges. Were you disappointed that more money wasn't directed to infrastructure? A: We were disappointed that such a small amount was devoted to infrastructure. The real challenge now is on transportation reauthorization legislation. If you talk to people in the construction industry, they will tell you that unless there is a long-term highway and transit reauthorization bill, their industry will not come back. They are not starting the big projects, nor are they buying the big equipment until they see a roadmap.
Q: Are you concerned, as some are, that Congress will fail to pass a long-term transportation reauthorization bill during President Obama's term and that transportation funding will survive on a long series of continuing resolutions? A: I think there is a real danger that unless people outside the Beltway see the effects of not having reauthorization, and unless the users of the transportation network tell members of Congress that they are making a big mistake and that it's hurting their business, it will be very easy to have continuing resolutions.
Q: How would you rate the Obama White House on its knowledge of the issues and its management of transportation policy? A: We've seen a White House that has come to grasp the power of infrastructure. What they haven't done yet is paint a comprehensive picture of what transportation policy should look like. For example, they haven't talked a great deal about the importance of the nation's freight infrastructure.
Freight doesn't vote. People say that over and over again, but it's more than just a saying. When I got here, I was told the most important thing I could do was bring businesspeople to the table and talk about transportation. That's because infrastructure is not facing businesses squarely in the face the way taxes and health care are.
Q: In previous reauthorization cycles, shippers haven't stepped up to the table and voiced their opinions about transportation. Are you seeing a stronger, more active shipper voice this time around? A: I think we are seeing shippers becoming more engaged. But it tends to be on very specific, industry-related issues. We could always use more shipper involvement in simply talking about the role that good-performing infrastructure plays in getting their business done. It is vital to hear a retailer saying how important our freight network is in getting products to market, and how it helps generate jobs. We need more shippers talking about the role infrastructure plays in their everyday life.
Q: Does there need to be more focus on freight in this reauthorization cycle? A: Definitely. Freight was left on the cutting room floor in the last reauthorization [in 2005]. As the bill was moving through conference, freight programs were cut to make room for member earmarks and fiddling with the "formula" here and there. There has not been a focused effort on freight, and to be honest, the freight community doesn't help itself because quite often they are at war with themselves. It's shippers against carriers. Or it's the trucks versus the rails. When you tell Congress that freight is important and they ask what we should do about it and you can't give them specifics because no one agrees, you put yourself in a bad situation.
Q: The Chamber has said its members will support an increase in gasoline and diesel fuel taxes to finance infrastructure improvements. Is that still the Chamber's position? A: Our board has said it would support a reasonable increase in fuel taxes as long as the transportation reauthorization legislation meets national needs, lays the groundwork for a sustainable revenue source for the future, creates the opportunity for more public-private partnerships, limits congressional earmarks, and removes barriers to project delivery.
Q: What's reasonable in the Chamber's view? A: I would guess something that's phased in, maybe 3 to 5 cents a year for five years and then [increases] indexed to inflation.
Q: Is it doable? A: This is a problem of political will and of being honest with the voters. You have a wide array of stakeholders that say if you do good things with [reauthorization legislation], we will support a gas tax increase. And yet for some reason, this is the political football. It gets the same gut reaction as if Congress were to go out and raise middle class taxes by 25 percent.
E-commerce activity remains robust, but a growing number of consumers are reintegrating physical stores into their shopping journeys in 2024, emphasizing the need for retailers to focus on omnichannel business strategies. That’s according to an e-commerce study from Ryder System, Inc., released this week.
Ryder surveyed more than 1,300 consumers for its 2024 E-Commerce Consumer Study and found that 61% of consumers shop in-store “because they enjoy the experience,” a 21% increase compared to results from Ryder’s 2023 survey on the same subject. The current survey also found that 35% shop in-store because they don’t want to wait for online orders in the mail (up 4% from last year), and 15% say they shop in-store to avoid package theft (up 8% from last year).
“Retail and e-commerce continue to evolve,” Jeff Wolpov, Ryder’s senior vice president of e-commerce, said in a statement announcing the survey’s findings. “The emergence of e-commerce and growth of omnichannel fulfillment, particularly over the past four years, has altered consumer expectations and behavior dramatically and will continue to do so as time and technology allow.
“This latest study demonstrates that, while consumers maintain a robust
appetite for e-commerce, they are simultaneously embracing in-person shopping, presenting an impetus for merchants to refine their omnichannel strategies.”
Other findings include:
• Apparel and cosmetics shoppers show growing attraction to buying in-store. When purchasing apparel and cosmetics, shoppers are more inclined to make purchases in a physical location than they were last year, according to Ryder. Forty-one percent of shoppers who buy cosmetics said they prefer to do so either in a brand’s physical retail location or a department/convenience store (+9%). As for apparel shoppers, 54% said they prefer to buy clothing in those same brick-and-mortar locations (+9%).
• More customers prefer returning online purchases in physical stores. Fifty-five percent of shoppers (+15%) now say they would rather return online purchases in-store–the first time since early 2020 the preference to Buy Online Return In-Store (BORIS) has outweighed returning via mail, according to the survey. Forty percent of shoppers said they often make additional purchases when picking up or returning online purchases in-store (+2%).
• Consumers are extremely reliant on mobile devices when shopping in-store. This year’s survey reveals that 77% of consumers search for items on their mobile devices while in a store, Ryder said. Sixty-nine percent said they compare prices with items in nearby stores, 58% check availability at other stores, 31% want to learn more about a product, and 17% want to see other items frequently purchased with a product they’re considering.
Ryder said the findings also underscore the importance of investing in technology solutions that allow companies to provide customers with flexible purchasing options.
“Omnichannel strength is not a fad; it is a strategic necessity for e-commerce and retail businesses to stay competitive and achieve sustainable success in 2024 and beyond,” Wolpov also said. “The findings from this year’s study underscore what we know our customers are experiencing, which is the positive impact of integrating supply chain technology solutions across their sales channels, enabling them to provide their customers with flexible, convenient options to personalize their experience and heighten customer satisfaction.”
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.
National nonprofit Wreaths Across America (WAA) kicked off its 2024 season this week with a call for volunteers. The group, which honors U.S. military veterans through a range of civic outreach programs, is seeking trucking companies and professional drivers to help deliver wreaths to cemeteries across the country for its annual wreath-laying ceremony, December 14.
“Wreaths Across America relies on the transportation industry to move the mission. The Honor Fleet, composed of dedicated carriers, professional drivers, and other transportation partners, guarantees the delivery of millions of sponsored veterans’ wreaths to their destination each year,” Courtney George, WAA’s director of trucking and industry relations, said in a statement Tuesday. “Transportation partners benefit from driver retention and recruitment, employee engagement, positive brand exposure, and the opportunity to give back to their community’s veterans and military families.”
WAA delivers wreaths to more than 4,500 locations nationwide, and as of this week had added more than 20 loads to be delivered this season. The wreaths are donated by sponsors from across the country, delivered by truckers, and laid at the graves of veterans by WAA volunteers.
Wreaths Across America
Transportation companies interested in joining the Honor Fleet can visit the WAA website to find an open lane or contact the WAA transportation team at trucking@wreathsacrossamerica.org for more information.
Krish Nathan is the Americas CEO for SDI Element Logic, a provider of turnkey automation solutions and sortation systems. Nathan joined SDI Industries in 2000 and honed his project management and engineering expertise in developing and delivering complex material handling solutions. In 2014, he was appointed CEO, and in 2022, he led the search for a strategic partner that could expand SDI’s capabilities. This culminated in the acquisition of SDI by Element Logic, with SDI becoming the Americas branch of the company.
A native of the U.K., Nathan received his bachelor’s degree in manufacturing engineering from Coventry University and has studied executive leadership at Cranfield University.
Q: How would you describe the current state of the supply chain industry?
A: We see the supply chain industry as very dynamic and exciting, both from a growth perspective and from an innovation perspective. The pandemic hangover is still impacting decisions to nearshore, and that has resulted in a spike in business for us in both the USA and Mexico. Adding new technology to our portfolio has been a significant contributor to our continued expansion.
Q: Distributors were making huge tech investments during the pandemic simply to keep up with soaring consumer demand. How have things changed since then?
A: The consumer demand for e-commerce certainly appears to have cooled since the pandemic high, but our clients continue to see steady growth. Growth, combined with low unemployment and high labor costs, continues to make automation a good investment for many companies.
Q: Robotics are still in high demand for material handling applications. What are some of the benefits of these systems?
A: As an organization, we are investing heavily in software that will allow Element Logic to offer solutions for robotic picking that are hardware-agnostic. We have had success deploying unit picking for order fulfillment solutions and unit placing of items onto tray-based sorters.
From a benefit point of view, we’ve seen the consistency of a given operation improve. For example, the placement accuracy of a product onto a tray is far higher from a robotic arm than from a person. In order fulfillment applications, two of the biggest benefits are reliability and hours of operation. The robots don't call in sick, and they are happy to work 22 hours a day!
Q: SDI Element Logic offers a wide range of automated solutions, including automated storage and sortation equipment. What criteria should distributors use to determine what type of system is right for them?
A: There are a significant number of factors to consider when thinking about automation. In my experience, automation pays for itself in three key ways: It saves space, it increases the efficiency of labor, and it improves accuracy. So evaluating which of these will be [most] beneficial and quantifying the associated savings will lead to a “right sized” investment in technology.
Another important factor to consider is product mix. With a small SKU (stock-keeping unit) base, often automation doesn’t make sense. And with a huge SKU base, there will be products that don’t lend themselves to automation.
With any significant investment, you need to partner with an organization that has deep experience with the technologies that are being considered and … in-depth knowledge of the process that is being automated.
Q: How can a goods-to-person system reduce the amount of labor needed to fill orders?
A: In most order picking operations, there is a considerable amount of walking between pick faces to find the SKUs associated with a given order or set of orders. Goods-to-person eliminates the walking and allows the operator to just pick. I have seen studies that [show] that 75% of the time [required] to assemble an order in a manual picking environment is walking or “non-picking” time. So eliminating walking will reduce the amount of labor needed.
The goods-to-person approach also fits perfectly with robotic picking, so even the actual picking aspect of order assembly can be automated in some instances. For these reasons, [automation offers] a significant opportunity to reduce the labor needed to fulfill a customer order.
Q: If you could pick one thing a company should do to improve its distribution center operations, what would it be?
A: Evaluate. Evaluate the opportunities for improving by considering automation. In my experience, the challenge most companies have is recognizing that automation is an alternative. The barrier to entry is far lower than most people think!
Toyota Material Handling and its nationwide network of dealers showcased their commitment to improving their local communities during the company’s annual “Lift the Community Day.” Since 2021, Toyota associates have participated in an annual day-long philanthropic event held near Toyota’s Columbus, Indiana, headquarters. This year, the initiative expanded to include participation from Toyota’s dealers, increasing the impact on communities throughout the U.S. A total of 324 Toyota associates completed 2,300 hours of community service during this year’s event.
The PMMI Foundation, the charitable arm of PMMI, The Association for Packaging and Processing Technologies, awarded nearly $200,000 in scholarships to students pursuing careers in the packaging and processing industry. Each year, the PMMI Foundation provides academic scholarships to students studying packaging, food processing, and engineering to underscore its commitment to the future of the packaging and processing industry.
Truck leasing and fleet management services provider Fleet Advantage hosted its “Kids Around the Corner Foundation” back-to-school backpack drive in July. During the event, company associates assembled 200 backpacks filled with essential school supplies for high school-age students. The backpacks were then delivered to Henderson Behavioral Health’s Youth & Family Services location in Tamarac, Florida.
For the past seven years, third-party logistics service specialist ODW Logistics has provided logistics support for the Pelotonia Ride Weekend, a campaign to raise funds for cancer research at The Ohio State University’s Comprehensive Cancer Center–Arthur G. James Cancer Hospital and Richard J. Solove Research Institute. As in the past, ODW provided inventory management services and transportation for the riders’ bicycles at this year’s event. In all, some 7,000 riders and 3,000 volunteers participated in the ride weekend.