I come from a family that values education, and my greatest gift is to use the ability that I have - my training in economics and a great team to solve problems - so that more people can enjoy what I have had the opportunity to enjoy.
-Claudia Freed, President & CEO of EALgreen
Episode Summary
This episode was recorded at the 18th annual Reverse Logistics Association Conference and Expo in Las Vegas, the center returns management, reverse logistics, and more.
Host Scott Luton was joined by Claudia Freed, President & CEO of EALgreen, where she helps students get an education beyond high school. By helping logistics companies offload unneeded equipment, she helps technical schools train new drivers – starting them down the path of productive a lifelong career.
In this conversation, Claudia shares her point of view on:
- Why it is important not to ignore the environmental impact of logistics
- The best way to incentivize people to adopt new habits that last over the long term
- Her enthusiasm for the increased diversity of people, backgrounds, and perspectives as the field of logistics embraces the next generation
Episode Transcript
Intro/Outro (00:03):
Welcome to supply chain. Now the voice of global supply chain supply chain now focuses on the best in the business for our worldwide audience, the people, the technologies, the best practices, and today’s critical issues. The challenges and entities Stay tuned to hear from those making global business happen right here on supply chain. Now,
Scott Luton (00:32):
Hey everybody, Scott Luton with supply chain now welcome to today’s show. Got a great, uh, guest lined up here as we’re wrapping up our coverage, uh, as part of the 18th annual reverse logistics association conference and expos, it’s been the center of the universe for all things, reverse logistics and returns management right here in Vegas. And we’re joined by one of our favorites, a repeat guest friend of the show. Today’s featured guest Claudia fried present CEO of E a L green Claudia. How are you doing?
Claudia Freed (01:02):
I’m great. And it’s great to see you, Scott. It’s wonderful to be back on your show.
Scott Luton (01:06):
Well, it’s been too long. You’re one of our, our whole team’s favorites. When we met a couple years ago now, knocked it outta the park. We’ve done a couple of podcasts and live streams. I think you were on, uh, logistics with purpose. I was with our dear friend Enrique Avarez and with I’m excited about perhaps most beyond all of that is you and your team have continued to grow and do more for others, which we’re gonna touch on here as part of our conversation. Right.
Claudia Freed (01:33):
Excellent. And I remember when we did the, uh, logistics with purpose that we did it also in Spanish. Yes. So you have been a great supporter of the message in other languages as well.
Scott Luton (01:43):
Well, I appreciate that Claudia. I need to practice what I preach and get, become more bilingual, right myself. Absolutely. I’m gonna challenge myself. Maybe, maybe this year, it’d be one of those things I add to my priority list, but let’s rekindle our listeners understanding of who Claudia free is before we get into the heavy lifting. So talk to us a bit about where you grew grew up.
Claudia Freed (02:04):
I was born and raised in Argentina and I made the United States my home when I was 18 years old, that I came to the us as an exchange student pursuing a dream to someday go to college. I wanted to be a doctor, but I, uh, did not become a doctor. I studied economics instead
Scott Luton (02:23):
That it, you could be a, uh, a danger professional knowing the economics, right? Yes, I was. That was not my gift in talent. I, I struggled through any accounting macroeconomics. The professor was, uh, I was lucky not to get kicked outta class, but economics. It was for your path. Why economics? Why?
Claudia Freed (02:42):
Very interesting question. And you mentioned a, sometimes mentors play a significant role in our lives. I went to a small college in Chicago and my professor, Dr. Lisa home had an impact on my understanding of how one can bring a business understanding to doing well in the world. And he ignited that curiosity about economics and I followed my dream
Scott Luton (03:08):
Love. That sounds like you had a Eureka moment there in college, and it’s, it’s really made an impact on your journey. Let’s switch gears for a second favorite sports team of all time. Oh,
Claudia Freed (03:19):
The bulls 19 91, 19 92, the
Scott Luton (03:22):
Chicago bulls,
Claudia Freed (03:23):
Absolutely basketball. Yes. Chicago
Scott Luton (03:26):
Bulls. If I’m not mistaken, that 91 team is when Michael Jordan got finally got and had that breakthrough moment got his first trophy. Right?
Claudia Freed (03:34):
You are absolutely right. And I remember that because I was pregnant with my twins. So that is what I was remembering to do a lot of watching TV waiting for that moment to come.
Scott Luton (03:44):
And he had that really cool locker room moment with his dad. And, and he was very, it was very emotional and, and just had a heck of a heck of a team. And of course, who would’ve th in 91 that they would’ve gone on and dominate and won six or seven, however many more, they won
Claudia Freed (03:58):
Six or seven. I think it couple more. And they would’ve run out of fingers in their hands for their, uh, the rings
Scott Luton (04:04):
Love that rings. Okay. So final question. As we get to know Claudia fried on the front end, give us one of your favorite movies or books
Claudia Freed (04:13):
I love to read, and I love to watch movies both on the planes when I ride along the world, when I am able to do that. Uh, but most recently for the personal connection, I have to say that a movie that really moved me is a movie that is really affiliated with children’s really Coco,
Scott Luton (04:31):
Coco, Coco.
Claudia Freed (04:32):
Yes. And because I’m from Argentina and I’m very sympathetic to the, um, entire idea of family and what happens to families and also to explain, uh, the things that happen in life to children. Um, I find that to be a very moving movie.
Scott Luton (04:48):
Agreed. I think it was one of our kids’ favorites, uh, cocoa. Yes. Um, all right. So now that we’ve kind of gotten a better feel, uh, for who Claudia free is. Let’s talk about the year that keeps on teaching, right? 20, 21. Yeah. It’s brought truckloads of Eureka moments, learned a ton about who we are as a, as humans, uh, who we are as professionals and supply chain reverse returns, you name it retail. What was a key Eureka moment that 2021 taught you
Claudia Freed (05:17):
In 2021? We really embraced an idea that to be successful once has to commit, to continue growing, to keep giving. So in our Eureka moment at E Yale green was when we realized that to have a mantra that empowers both the growth of the business and the impact on the mission and that the Eureka more for us really was that profitability and sustainability do not have to compete with each other. So for us, it was really finding that we could meet our mission and that we can continue to grow, which is what we did in 2021. I
Scott Luton (05:57):
Love that. So let’s, let’s move right into Yale green for the handful of folks that may not know what the organization does. Tell us about what the organization does and the growth and where you love spending your time.
Claudia Freed (06:09):
I love to spend time at Yale and talking about E and our mission. And that’s very clear. And throughout the 40 years, because on this 2nd of February, we celebrated our 40th anniversary. Wow. Throughout the four years, I would say that we have learned to tell the Yale story a little bit differently. And if you had asked me that question five years ago, I may have emphasized other values, but the bottom line of what we do is that we help come companies with excess and surplus inventory, get rid of that problem. Yep. And we redistribute the products to colleges and universities in exchange for a scholarship. Yep. So this idea that there is no waste, but that you have to find a new way and a new purpose for the product is at the heart of why we are at the RLA con. Yes. And that is very much what happened in 21, keep growing to keep giving.
Scott Luton (07:03):
I love that. And, uh, you were talking, you were referencing growth a moment ago. Amanda and I had a good fortune of, uh, meeting you in the halls kind of, as we were passing by each other at this conference, and gosh, y’all really have been on the growth. So you can do you more, can you speak to a little more to
Claudia Freed (07:19):
That? Yes, absolutely. In 2021 E had the second most successful year in our history measured by the support that we receive from our donors. Yep. That success gets translated into the ability of the nonprofit to be able to fund scholarships in specific terms in 2021, we funded 1,123 scholarships. Wow. So these are 1,123 students who with the help of donors and colleges that they are attending are able to then either complete or stay in college, uh, to then enter the workforce. And one day be the future that we really very much need.
Scott Luton (08:01):
I love that helping them fulfill their dream, uh, achieving educational goals, because if they don’t get the resources and aid, right, what happens,
Claudia Freed (08:10):
What is happening? And we’ve seen this happen, uh, over time, if you are a student with financial need, the only way that you are going to be able to complete a degree and improve your life, you may have to take two or three jobs which happen, which means that your journey from when you start a college degree to when you can even achieve a certificate is so much longer. And the longer you stay out of the market, that means you are borrowing money. So you do graduate. You end up with a lot of debt, right? And our goal is to provide these scholarships. So the students graduate with less debt,
Scott Luton (08:48):
1000, 123 scholarships, the second most successful year in a 40 year track record of helping others and empowering their dreams. So they can go on and do big things and change the world, frankly,
Claudia Freed (09:01):
And take on the jobs that we need. We, we focus a lot in 2021 as well on a particular sector of higher education, which is, uh, technical education. Okay. So how do we apply a, our model of creating scholarships for the particular skill set that we so badly need in this country? Welding engineering, financial and accounting. All the industries that we are hearing from in this conference are talking about a war for talent, right? They’re all about tracking costs. Yep. And they’re all talking about technology. You can actually sit in any of the conference rooms and those three themes are going to be very prevalent. Yes. And therefore we have the opportunity to support students and the colleges, as they try to read into the future, what do companies need? What type of skillset did I need?
Scott Luton (09:58):
I love how your mission is serving so many needs on so many different levels, right? Because there are big needs in this war for talent, for more technically trained professionals. So what a beautiful matrix is the word that comes to mind, right? Matrix of servant.
Claudia Freed (10:16):
I love the, the analogy, uh, because in the conference, uh, next door, they’re talking about dynamic supply chains. And what, what they’re really talking about is any business in order to stay in business must adapt. Yeah. And in 40 years we have had to adapt. And that is in large part what we did 20, 21. We said, we need to invest in technology. So we invested in an E R P uh, we need to invest in understanding what are the, um, professions that are in most demand. And when you can bring it all together, it’s really a win, win, win, right?
Scott Luton (10:54):
Yes. Students industry and your, uh, health up in these universities, clear out equipment and, and recycling and, and reusing a lot of that. So everyone wins,
Claudia Freed (11:03):
Right? So it’s actually the corporations clearing out the equipment, the colleges and universities become their customers. Ah, so we match the surplus on the business side and we meet the needs of the, and universities using logistics to actually map how do we take something that is a Sur for one consumer into the hands of colleges and universities,
Scott Luton (11:27):
Logistics with purpose, right. Logistics.
Claudia Freed (11:29):
Absolutely.
Scott Luton (11:30):
I love that. Uh, and I think I see Antonio right off to our side here. Good to see you. Yeah. I really enjoyed Antonio and you parti and some, some of our shows and live streams. Let’s talk about your, why let’s talk about what is your, why for all the give forward that, that the organization does. And of course your role
Claudia Freed (11:50):
After a lot of time thinking about that question, I believe that in my experience, my, why is I love to solve problems. I love to solve problems. And I have realized that when I am happy in solving problems is because what I solving is worth my time. And when I am solving a problem at AEL, that means more students can receive help at a broader, more personal, uh, experience. I come from a family of educators. Okay. I just learned this past week that my Italian grandfather who knew he would not live because he was ill made my grandmother CLA promise that my grandmother will give her their four daughters. My mother is number two daughter, the gift of an education. Wow. So I come from a family that values that, and my greatest gift is to use the ability that I have my training in economics, a great team to solve problems so that more people can enjoy what I have had the opportunity to enjoy.
Scott Luton (13:02):
I love that, that that’s such a force multiplier, right? As folks learn, they get educated and have those experiences. And then they apply all of those two industry into solving problems to changing how industry works for the better. It is a wonderful, wonderful contribution to an ecosystem with so many stakeholders and shareholders. Let’s talk about here at the RLA conference. Again, it’s all about returns management, reverse logistics, really important, uh, aspect of global business these days. So when you think about those segments of global business, what’s a couple things you’re really focused on more than others. Right now.
Claudia Freed (13:41):
It’s been very, very encouraging to see that not one single panel in the last two days. And, uh, when they remain in tomorrow, not a single panel has ignored or excluded the environmental act of all their activities. So this concept of ESGs, which stands for environment, society, and governance. Yep. That’s one of the frameworks for looking at sustainability, not a single presenter is leaving that topic out the
Scott Luton (14:14):
Topic as opposed like 10 years ago where I’ve been
Claudia Freed (14:16):
Even even three years ago, three years ago. I think that the, the, what we’ve seen is a rapid growth in both interest. And more importantly, I think one of the takeaways is that it’s very, very clear that consumers are playing a significant role in that voice because typically why do we generate new in doing things differently? Either you are being regulated or you are being penalized, or you see a business opportunity, right. And in this particular conference on the 18th annual conference, what I’ve seen is that all the presenters, whether you are a retailer in, uh, electronics, or you are doing pharmaceuticals, it’s the consumer that is demanding that environmental accountability and the industry is responding, right.
Claudia Freed (15:05):
It is, it’s very clear. That’s one of the takeaways. And then the other thing, which is very close to my heart, because I am a mother of twin daughters who are young women into this phenomenal world of business. Yes. The number of women that are involved in supply chain. In fact, I think it was the largest V I P luncheon for women in logistics and in supply chain that we had, and in reverse logistics and the of backgrounds, uh, not only for what has been a traditional spot for women in HR, all the way to engineering. And it is absolutely energizing for me as an older female now looking at what is the next generation, how do we, um, you know, continue to open doors for them?
Scott Luton (15:53):
Yes. I’m with you. So your daughters, I know one of them, maybe both of them, I know one of them is a very talented musical artist. And what did we, we were on the live stream. We talked about this. She play, what instrument is that?
Claudia Freed (16:08):
Accordion,
Scott Luton (16:09):
Accordion.
Claudia Freed (16:09):
She’s an accordionist. Yes.
Scott Luton (16:11):
Which is gotta be a challenging skill to,
Claudia Freed (16:14):
I tell you what is challenging. And I agree completely. I look at what Erica does with her instrument, and it’s not only aesthetically beautiful to look at, but it sounds in our fantastic, but I do think that another human development aspect, right, as a business that I had to learn in 2021, and as a result of the word that no one wants to mention COVID, um, as a result of that is, and as a parent of twins is that there is a desire for individuation when you have twins, whether they’re fraternal or identical, one of the ideas behind raising them as individuals is how do you give them each the chance to be who they want to be. Right. And I recently read the book on actually listening on audio about one and the same, which is about the story of racing twins and how do we, as leaders afford everyone in your team, the opportunity to be the individual that they need to be
Scott Luton (17:18):
Really important and critical. And, you know, we were talking Krisha earlier today about these team dynamics. Correct. Right. And, and how well, I’m not gonna try to put it in your words. Tell, tell us about what you’ve some things you’ve learned the last recent years.
Claudia Freed (17:31):
So, um, looking at Erica’s twin is a landscape AR architect. So I have an, a talented musician and a talented architect in the family, twins born 20 minutes apart, both
Scott Luton (17:42):
Creating beautiful
Claudia Freed (17:42):
Things. And they are creating beautiful things, looking at the world through the eyes of somebody that I understands that they were given the opportunity to be who they are. And we, I kind of took, uh, some of those, uh, lessons as a parent over the last 30 years. And I looked at our team at EAL green. And so during the, the pandemic, we realized that not everybody was reacting the same way, right. To the threats, uh, of, uh, health management. Not everybody was able to not work in the office because we have fulfillment centers. We have trailer loads coming in. They could not work from home. So what we decided to do was to look at incorporating certain levels of training at the same time. So that the message that we need to learn, how to be tolerant of each other in the place, work in the workplace, how do we need to afford everybody room to grow?
Claudia Freed (18:40):
Wasn’t just the CEO saying that message. We partnered with our payroll service and said, ADP, what training do you have for teaching our us how to tolerate each other at a place where things are so tense and things are changing. Uh, we also did training on cyber security to ensure that our new way of working was also a safe environment. Yeah. And we coupled that training with the idea that we had to change and afford everybody. If I have an extrovert in the team or an introvert that you recognize that, and with sensitivity and with the parameters of the law, uh, you can accommodate your team to continue to grow.
Scott Luton (19:21):
I love it. Lots of options based on personal preferences, uh, personal choices. So we can, we can make sure everyone is, is more comfortable and position to succeed and contribute, right?
Claudia Freed (19:33):
That’s the point, correct? Yeah. Uh, there is no point if the company’s doing well, but your team is unhappy or doesn’t feel appreciated or doesn’t feel valued. And so presenting that package of this is a place that we cared about you, and we will provide the opportunity for you to be able to do your job and, uh, know that you are doing it for the great purpose.
Scott Luton (19:58):
I love that. Love that. Okay. So we’ve saved the be maybe the best question for last big bold predictions for 2022. Now I might have had just a little sneak peek into what your response is here. And I think it’s a, it’s a home run and I like BHAG big, hairy, audacious goal. And I think it’s gonna hit that. So tell us, look at, look deep in your crystal ball. What is your big fearless production this
Claudia Freed (20:23):
Year? I, I love my crystal ball and it’s, it is an instrument that I use all the time, because I do think that when you are in leadership, you are expected to be able to have the
Scott Luton (20:37):
Ability corners.
Claudia Freed (20:37):
Right. Right. I mean, you, you don’t make progress by trying to react. You need to be ahead of the idea ahead of the times, like the founders for the Yale green war 40 years ago. Wow. When they came up with this idea of what do we do with excess inventory and how do we help young people, uh, realize their dreams that was vision, that was pure vision. Right. So I have the legacy that I have to carry on my shoulders of that legacy. So I have my crystal and it’s lovely, and I love it. So in response to your wonderful question about what do we see going forward? One area where I believe is very important for us to focus on is the fact that in the United States, there are only 18%, 18%. So less than 20 of all patents are held by women inventors.
Claudia Freed (21:31):
Wow. 20%. So 18%, the predictions of the bureau of labor statistics says that it will take 70 years until 2092 for us women, right. To reach parity. Yeah. So my bold prediction is that we are going to cut that difference in half. It’s not going to take 70 years. I think it will take less well a bit 30, well, hopefully in the next 10 to 15 years. And why the connection, because I believe that the reason that we don’t have so many women inventors is that we have had a death. Is it with regards to technical education, right? Stem, that emphasis is relatively new. So my prediction is that not only we are going to cut the difference in the number of women that are inventors to have for less, but that the inventions will come from very much this industry, every aspect from a product, the way that it is designed to the way that science, for example, if we talk about medicine for a second and the research for medicine, largely it is now an established fact that the research for medicine is largely based on the male constituency, because very few drugs are developed considering the female, uh, needs for medicine.
Claudia Freed (22:55):
So the fact that we need to not only have the parity of the science, but also the customer in this case, a patient, right? So medicine is looking at formulating treatments are really much more specific, more individualized. Yes. And I believe that that is going to give women entrepreneurs a much greater opportunity, whether it’s inventing a new type of packaging, whether it’s inventing a new way of tracking your talent. Yes. Another colleague that is in the supply chain world created an app that tracks the skillset of every employee in a warehouse. So if they need to weld a motor at the end of the warehouse and know where to go, they deploy that person instead of having to hire the same person two or three times. So innovation is coming and it is going to be hidden in a purse. And it’s going to be part of my crystal ball.
Scott Luton (23:52):
And it’s, it’s coming. The rate of change is going to increase to based on a lot of the factors you’ve pointed out. I love that. And that is some wonderful, good news to wrap on, you know, like you, I don’t have, uh, twin daughters, but I’ve got two of my three children are daughters. And as we, I wanna say, we talked about this a couple years ago because that’s not good enough just to have daughters and want to change things. And you want to, you know, you wanna change things for the sake of changing things. So you create opportunities for all. Yes. So that everyone can benefit, including the daughter the you happen to have. But, you know, I don’t want anyone, I want them to blow through any obstacle, walls, barriers, and, and, uh, and know that they can. Yes. Right. And, and I really appreciate what folks like you are doing because they need those presences and CEOs or senior leaders that are doing big things yes. To help them aspire to do big things. Right. That’s an important thing, is that right?
Claudia Freed (24:50):
Absolutely. And I believe that the issue of gender is it’s a topic that really deserves a wider conversation. Um, yes, we have to be very inclusive. Right. And so I have daughters, other people have sons, other people have son or daughters, people that don’t identify or declare our agenda. So for me, uh, being progressive in that sense, it’s super important. Yeah. Um, the one thing I would say to anyone in terms of developing a culture of support, uh, the children do look up to the parents, uh, spending time with each of them individual, rather than as a bunch of people, the same thing with the team. It may not be possible for everybody. The, the larger you grow to spend time with every member of your team, but it’s very important to try to be ACC, to have access to them. And for them to see you as a role model, living, living the passion that you have for what you do.
Scott Luton (25:48):
I love it. Well, you’re living embodiment of that passion. Uh, and I’m looking forward to you set a high bar with your, with 2021. So
Claudia Freed (25:58):
I agree. I agree. You are absolutely right. And I, that is exactly a very valid point and why understanding the dynamics of the time that we live in, right. Uh, we used to have the ability to do three year strategic plan. Now it’s three months now you are touching and going and base measuring. And every measure that you can put in place, right. Go ahead and put it in place because it will never be enough. Yes. Never because in four months time, the work can change and your company, your grow, your group better, be ready to change, and you can’t afford to say we’ll do that next year. Agreed.
Scott Luton (26:37):
Agreed. Well, I’m excited to see what y’all do accomplish in your 41st year. Congratulations on your 40 year anniversary, which was February 2nd,
Claudia Freed (26:46):
Correct? Right. Yes, February 2nd.
Scott Luton (26:49):
And, uh, we’re gonna have to, uh, reconnect as we work through your 41st year, have you back on maybe have you on live stream and that way you can take some questions from our global ecosystem here at supply chain now
Claudia Freed (27:01):
Would love to do that. And again, and thank you so much for all the support that you lend to the community and for your success as well. Well, I know, I know that if you are not successful, we are not successful. Well,
Scott Luton (27:12):
I appreciate that. You know, it takes a village, right. And then some, but love what, so, so let’s make sure folks know how to connect with you and EAL green. There might be some listeners out there that want to, you know, get behind your effort and help support it. So how can folks connect with you?
Claudia Freed (27:28):
They first need to listen to supply chain. Now
Scott Luton (27:31):
I love that. That
Claudia Freed (27:32):
Is where we are all the time. Uh, they can connect with me on LinkedIn, Claudia fried E L green, or they can visit us@elgreen.org.
Scott Luton (27:43):
Wonderful, wonderful, well, Claudia, I am so glad that we could reconnect here after absolutely. The last couple years that goes without saying so much has changed since the last time you and I sat down with Greg white. Yes. Who missed you here today, but, but we’ll,
Claudia Freed (27:56):
We’ll reconnect. Send my regards another fellow AIAN. Yes,
Scott Luton (28:00):
That’s right.
Claudia Freed (28:01):
Yes. Yes.
Scott Luton (28:02):
But we will. Absolutely. We’ll talk soon folks, make sure you connect with Claudia free and E L green. And, and if you can, what a great story to get behind and support. Uh, so thank you so much, Claudia, for all that you do.
Claudia Freed (28:14):
Thank you so much.
Scott Luton (28:15):
You bet. All right, folks, uh, that just about wraps up our coverage here from the 18th annual reverse logistics association conference expo, stay tuned to all of the episodes we’ll be publishing in the weeks ahead. Be sure to connect with Claudia. Most importantly, you know, on behalf of our entire team here at supply chain now, uh, be like Claudia, do good gift forward. Be the change that’s needed. And on that note, we see next time, right back here at supply chain now. Thanks everybody.
Intro/Outro (28:46):
Thanks for being a part of our supply chain. Now, community check out all of our programming@supplychainnow.com and make sure you subscribe to supply chain. Now anywhere you listen to podcasts and follow us on Facebook, LinkedIn, Twitter, and Instagram. See you next time on supply chain. Now.
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Featured Guests
Claudia Freed is a business leader with a strong record of managing challenging situations and creating value for all involved. She became part of EALgreen in 1982 when she was chosen to become the first low-income scholarship recipient to receive the gift of a college education. With the EAL scholarship, Claudia earned a degree in Economics and worked in the financial sector, commodities trading, and credit risk management, moving on to management consulting under a selective program designed to lend private sector expertise to the City of Chicago government. EAL was founded on the principle of “paying it forward” and was engineered as a proof-of-concept on the importance of social and environmental impact in the business world. It’s mission is education. EAL exchanges excess inventory for scholarships using supply chain as the solution for reallocating resources between two sectors: businesses and higher education.
Twenty-five years ago, Claudia was recruited to return to EAL as Executive Director and in 2016, she was named CEO. This full-circle story has been professionally rewarding as she has served on more than 10 boards of directors, including Chicago NPR affiliate WBEZ, traveled the world, and now she is on Supply Chain Now Radio. Together with an amazing team, EAL has grown to be a national organization that has impacted the lives of nearly 19,000 students empowering them through education while helping the environment.
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