Welcome to Supply chain now, the voice of global supply chain.
Shannon ValencourtSupply 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 opportunities.
Shannon ValencourtStay tuned to hear from those making global business happen right here on supply chain now.
Scott LudenHey, good morning, good afternoon, good evening, wherever you may be.
Scott LudenScott Luden here with you on supply chain now.
Scott LudenGot an excellent show here today, folks.
Scott LudenWe're diving into proven ways to take your multi division shipping operations to entirely new levels.
Scott LudenHey, got some questions for you.
Scott LudenWould you like to gain more efficiencies and take out friction in your shipping operations?
Scott LudenHow about leveraging automation to make it easier to both delight your customers as well as make your team members days easier and more successful?
Scott LudenYes, please.
Scott LudenHey, are you interested in innovative, unified technology platforms that offer optimization opportunities for the entire transportation lifecycle?
Scott LudenWell, hey, if any of those questions speak to you, then you're in the right place.
Scott LudenWe're going to be tackling all this and a whole bunch more as I'm joined by a couple of business leaders making things happen in their organizations and out in industry today.
Scott LudenSo stay tuned for a great show.
Scott LudenHey, two quick things before we bring in our esteemed panelists.
Scott LudenNumber one, hey, let us know what you think.
Scott LudenAnd secondly, if you enjoyed today's show, be sure to share it with a friend or your network.
Scott LudenThey'll be glad you did.
Scott LudenSharing is indeed caring.
Scott LudenAll right, want to welcome in our outstanding panel here today, starting with Reza, Tommy Gesmerati, a director of supply chain from a leading company in the outdoor sporting goods industry.
Scott LudenAnd backed by proper demand, our friend Shannon Valencourt, CEO with rate links.
Shannon ValencourtHey.
Scott LudenHey, Reza, Tommy, how you doing?
Reza TommyVery well.
Reza TommyIt's a rainy day here in central Illinois, but it's still beautiful, right?
Scott LudenHey, we're with you.
Scott LudenWe got some rain out here in Georgia and we got more on the way, so.
Scott LudenBut great to see you here today.
Scott LudenAnd Shannon, welcome back.
Scott LudenHow you doing?
Shannon ValencourtI'm doing good.
Shannon ValencourtHow about you?
Scott LudenWonderful, wonderful man.
Scott LudenWe're, we're watching our Falcons fight valiantly.
Scott LudenWe may touch on NFL another in a second or two here, but it's better than last year and that's kind of where I want to start.
Scott LudenSo before we get into, we got a full show here today.
Scott LudenGonna offer up some brilliant nuggets and actual insights with our global audience.
Scott LudenBut I want to start with a fun warm up question because in our pre show conversation, Rezutami, we learned that you've been running triathlons and marathons for some 20 years.
Scott LudenI believe it's taken you, like, eleven different states in your competitions.
Scott LudenRight.
Scott LudenAnd you've just run your third half, Ironman.
Scott LudenSo tell us about that, if you.
Reza TommyYeah, so I did Madison 70.3 Ironman event.
Reza TommyPhenomenal course.
Reza TommyOut of all the courses I've done, Madison is one of the best ones.
Reza TommyRight.
Reza TommyShannon's from.
Reza TommyUsed to live in Madison.
Reza TommyHe can speak, but.
Scott LudenRight.
Reza TommyYou swim in Lake Manoma.
Reza TommyRight.
Reza TommyYou have your transition at the manoma center.
Reza TommyRight.
Reza TommyAndrew Lord Wright building.
Reza TommyBeautiful.
Shannon ValencourtRight.
Reza TommyAnd then you ride through Madison, go through the hills just outside of, you know, in central Wisconsin.
Reza TommyBeautiful course.
Reza TommyAnd you can.
Reza TommyIt smell.
Reza TommyEven smells like Wisconsin.
Reza TommyYou ride past all the dairies.
Reza TommyRight, right.
Reza TommySo, and then, and then, and then the run course is along the lake.
Reza TommyAbsolutely beautiful.
Reza TommyAnd there's all the spectators.
Reza TommyAnd it happened to be game day.
Reza TommyRight.
Reza TommyWisconsin was hosting a game day.
Reza TommySo everyone is dressed out, you know, in Badger red along the thing.
Reza TommyCheering.
Reza TommyI mean, it was just.
Reza TommyIt was just a phenomenal event.
Reza TommyThe weather was great.
Reza TommyIt was in the low seventies, so it was one of the best 70.3s I've run and probably top three triathlons I participated in, like I said.
Reza TommyYou said eleven states, so.
Scott LudenAnd you.
Scott LudenYou met your goals, you surpassed your goals.
Scott LudenYes.
Scott LudenAnd it sounds like a beautiful experience.
Scott LudenHey, I'm moving to Wisconsin.
Scott LudenAfter that you just shared.
Scott LudenI'm Wisconsin tomorrow.
Scott LudenExcellent resident, Tommy.
Scott LudenI can't wait to dive more.
Scott LudenI gotta get some tips from you so I can get in.
Scott LudenFight.
Scott LudenYeah, fight and shape.
Scott LudenBut Shannon, Valley court, on a different note, you know, we've enjoyed a lot of different conversations over the years.
Scott LudenWe've certainly talked plenty of football.
Scott LudenAnd of course, you're one of the biggest, uh, Chicago Bears fans in our network here, in our community here.
Scott LudenAnd I gotta say, they have been competitive as the NFL seasons in full swing.
Scott LudenReza, Tommy just mentioned football and the mighty Badgers there in Wisconsin.
Scott LudenBut the Bears have been fighting.
Scott LudenThey're one and two, but they've been in every single game.
Scott LudenWhat are we going to see from the Bears the rest of the year, you think?
Shannon ValencourtBoy, I don't know.
Shannon ValencourtI mean, they've been in every game because they have a top defense.
Shannon ValencourtI think they have a championship caliber defense.
Shannon ValencourtNow, the question is, will the offense become at least mediocre?
Shannon ValencourtAnd I think it just starts with the line.
Shannon ValencourtIf they can just get that line fixed.
Shannon ValencourtSo I read something the other day, you know, overreactions from week three right.
Shannon ValencourtAnd, you know, should they have kept Justin Fields and.
Shannon ValencourtNo, that's.
Shannon ValencourtThat's an overreaction.
Scott LudenThat's no reaction.
Shannon ValencourtWilliams threw for what, 360 some yards this weekend.
Shannon ValencourtAnd that's more than fields ever threw for any game.
Shannon ValencourtAnd it's only his third game in the NFL.
Scott LudenRight.
Shannon ValencourtAlready did it.
Shannon ValencourtSo it's like he's the right fit now.
Shannon ValencourtIt just comes down to that line and everything, I think, points to the coaches.
Shannon ValencourtI think they're the men.
Shannon ValencourtYou look at that division, everyone is.
Shannon ValencourtEverybody's working.
Shannon ValencourtI mean, it's like they got great coaches.
Shannon ValencourtExcept for in Chicago, I feel like.
Shannon ValencourtSo either, you know, they're going to fix it.
Shannon ValencourtEither they'll figure it out and get it fixed, right, or maybe they'll actually get a new coach.
Scott LudenBut, hey, I told y'all, I told y'all.
Scott LudenShannon Valley court, he doesn't fake the funk on a nasty dunk.
Scott LudenHe is a big time Bears fan.
Shannon ValencourtThey gotta be better, man.
Scott LudenYeah, well, you know, I like your comment there because, of course, football, you got a good offensive line, good defensive line, man.
Scott LudenYou can, you can make special runs.
Scott LudenSo we'll see.
Scott LudenAnd that Caleb Williams, in his third NFL game, just three, three games in, he looks like to be a special talent.
Scott LudenSo we shall see.
Scott LudenAll right, so, Shannon and Rezatami, I'm looking forward to a great conversation here today.
Scott LudenOkay.
Scott LudenWe got a lot to get into here today.
Scott LudenRezutami and Shannon, I want to start with one of my favorite starting points.
Scott LudenThat's offering context as we get into the conversation.
Scott LudenSo, Reza, Tommy, if you would, to share that context, not level setting with our audience, tell us a little bit more about yourself and a little bit more about your company.
Reza TommyYeah, so I'll just start with myself.
Reza TommyI've been doing transportation for over 20 years.
Reza TommyMy first transportation job was actually in the 2002 Winter Olympics, dispatching buses.
Reza TommyI was a transportation supervisor.
Reza TommyRight.
Reza TommySo I like to joke I've done transportation at the Olympic level in Salt Lake City.
Reza TommySo that's fabulous.
Reza TommyAnd I'm actually looking forward to maybe they'll let me go back and do transportation in 2020, 2036 when the Olympics go back there.
Scott LudenThat's right.
Scott LudenLove it.
Reza TommyRight, right.
Reza TommySo I've worked at an ocean carrier company doing customer service, import customer service, export customer service at steamship line level.
Reza TommyI also worked at a freight forwarder for four years, doing distribution and doing air freight and ocean freight forwarding.
Reza TommySo I really cut my teeth in ocean and freight forwarding experience, and I took that to a large consumer goods company, and it's changed names over the years.
Reza TommyBut, you know, we were talking about football.
Reza TommySo one of the first things that I did and actually how I first got involved with railings was with Riddell, the football helmets.
Scott LudenOkay, right, right.
Reza TommySo, so that was railing, one of railings first customers back in the day.
Reza TommyAnd we used to make the football helmets in our plant.
Reza TommyAnd, you know, a lot of people think, oh, it'd be great to do all the NFL helmets.
Reza TommyAnd that was.
Reza TommyBut if you think about it, there aren't a lot of NFL players compared to high school and college.
Scott LudenRight.
Reza TommyBut the biggest customers were high schools and in colleges across the country.
Reza TommySo one of the other customers we had, we talked sports was, it was the Easton baseball bats.
Reza TommySo we used to do east, we used to do Easton.
Reza TommySo, and over M and a my company's morphs, and let's just say that, that I'm in a very wide range of consumer sporting goods.
Reza TommyIf you were to go to like a dick sporting goods, a lot of our products are like an index sporting goods or REI.
Reza TommySo, and I like to say what I handle, I'm responsible for global deliver.
Reza TommySo I'm responsible for everything from the factory to the customer consumer, whether the customer is as a big box retail or it's someone ordering something to show up on their door.
Shannon ValencourtYep.
Reza TommyAnd everything in between, whether it's on a truck, plane or boat.
Scott LudenWow, that's a big old plate.
Scott LudenI have used your products, as we talked about pre show, from spotting birds to surviving out in the desert, getting my water and my hydration.
Scott LudenAnd it's a fascinating company.
Scott LudenAnd I love also that you mentioned, Shannon.
Scott LudenIt was cool that he mentioned two big brands in his previous, his career that everybody knows, and Rydell, the helmet company, and of course, Easton the bat.
Scott LudenI've had, I've missed at more baseballs and softballs using Easton bats.
Scott LudenAny other bat in my background, sure.
Scott LudenBut Reza, Tommy, thank you for sharing more context about your journey and what you're doing now, especially as you're in that global supply chain leadership role.
Scott LudenShannon, switching gears.
Scott LudenYou know, as I mentioned a minute ago, we've had the good fortune of having all sorts of conversations with you going back several years, but some of our newer audience members that may be here, let's make sure they are familiar with a little bit of your background.
Scott LudenSo tell us a little bit more, Shannon.
Shannon ValencourtWell, let's see.
Shannon ValencourtI've been, I've been in the industry for a little over 30 years now.
Shannon ValencourtWow.
Shannon ValencourtYeah.
Shannon ValencourtI'm getting a lot older.
Shannon ValencourtYou know.
Shannon ValencourtStarted back in the day before you could track packages.
Shannon ValencourtYou know, back then, you know, the old thing, you had to walk uphill.
Shannon ValencourtWell, on the shipping side, you ship stuff and you couldn't track it.
Shannon ValencourtYou just kind of hoped open a prayer there is how it used to work back in the day.
Shannon ValencourtAlso spent some time working on WMS.
Shannon ValencourtSo I've always been on the implementation side, more technical side of things before I started rate lengths back in zero two and.
Shannon ValencourtYeah, and that's where I met Reza.
Shannon ValencourtWe had, Riddell was one of the early customers in Illyria, Ohio.
Shannon ValencourtSo I do have a Redell helmet at home with the bears.
Scott LudenOkay.
Shannon ValencourtSitting up on my shelf and we sit there and we have the little mantle that we pray to every Sunday before the game.
Shannon ValencourtSo hopefully it's gonna start working here soon.
Scott LudenI bet it's tough to be making a product that big old 300 pound bodies meet each other and they're cracking all the time.
Scott LudenExtra quality in those, those helmets, huh?
Scott LudenRosatomi.
Reza TommyYeah.
Reza TommyYou know, one thing is we used to work at the plant that would make them.
Reza TommyWhat was interesting is that the off the field helmets had a higher, slightly higher standard than on the field.
Reza TommyInteresting because if you're spending like $300 on a replica helmet and, for example, you were going to get it signed.
Reza TommyLike, if you were going to get it signed by Jim McMahon and you were going to spend a $1,000 on it, you'd really want that to look pristine.
Shannon ValencourtYeah.
Reza TommyWhereas if it's on the field, it's going to get dinged up.
Reza TommyRight.
Reza TommyYou're more concerned about the safety versus how clean it look.
Reza TommyPristine.
Scott LudenIt looks interesting.
Scott LudenJim McMahon, that's a throwback.
Reza TommyYeah.
Scott LudenThe headbands and all.
Scott LudenBack in the eighties.
Scott LudenShannon Valen court some special teams there.
Shannon ValencourtYeah, he lives out here.
Scott LudenOh, really?
Scott LudenOkay.
Shannon ValencourtYeah.
Shannon ValencourtSo before we moved out here, my wife and I were out here on vacation.
Shannon ValencourtAnd we're going for a walk and there's an open house down the street.
Shannon ValencourtShe's like, hey, let's just go check it out.
Shannon ValencourtSo we go down to the house and they're walking us through.
Shannon ValencourtWe get to the backyard and they're like, hey, I don't know if you're a football fan or not, but the neighbor next door happens to be Jim McMahon.
Shannon ValencourtAnd my wife was all freaked out.
Shannon ValencourtShe's like, oh, shit.
Shannon ValencourtOr, oh, shoot, we're gonna.
Shannon ValencourtHe might buy this house just because of the neighbors.
Shannon ValencourtSo it's like, so I literally know exactly where Jim McMahon lives?
Scott LudenOh, the one and only.
Shannon ValencourtFar away.
Shannon ValencourtBut I've never seen him okay around, but he's a.
Shannon ValencourtHis house is just in Scottsdale, down the street.
Scott LudenWell, hey, when I'm out there for that event in October, we're gonna have to go scouting to see if he's hosting any beers get togethers from.
Scott LudenFrom back in the day.
Shannon ValencourtNo kidding.
Scott LudenBut regardless, Shannon, folks, if y'all can't tell, we like football a little bit around here between Shannon, whereas Tommy and I.
Scott LudenBut we got a lot to get into specifically on three ways to unlock efficiency.
Scott LudenAutomate, how to best automate your multi division shipping operations.
Scott LudenSo, with that said, as we kind of get more into the topic, Reza, Tommy, with your scale or with the scale of your supply chain operations across multiple business brands, which you were talking about earlier, I'm sure there's a ton of challenges that you ran into when you first joined the company, right?
Scott LudenA little whiles back.
Scott LudenSo if you could share a few examples of what wasn't working as well as you would have liked to have them working back then.
Reza TommyYeah.
Reza TommySo going back to the.
Reza TommyStaying with the football analogy, right?
Scott LudenYeah.
Reza TommyWhen we first implemented, we went live with Riddell in our facility in Illinois.
Reza TommyThere was some automation and there was something.
Reza TommyWe're shipping shoulder pads and the algorithms that these packing estimates based on the cube of a shoulder pad.
Reza TommyRight.
Reza TommyAnd the shoulder pad is mostly empty because it's just like a shell.
Shannon ValencourtRight, right.
Reza TommySo let's say someone ordered six shoulder pads.
Reza TommyWell, it would plan massive boxes because the system didn't know that you could stack or nest shoulder pads.
Reza TommyRight.
Reza TommyAnd the same kind of goes if you do like cups or baseball caps, anything that can nest.
Reza TommyRight.
Reza TommySo one of the challenges that the system was saying that you're going to need all these big boxes and your shipping cost is going to be, you know why, when really you can nest them and it could fit in a smaller box and your shipping cost would be a lot less.
Reza TommyRight.
Reza TommySo one of the things that rate links did for us was helping do custom code to know that if it saw certain items that could be nested, like shoulder pads, you could plan for the smaller box, which would also save on shipping cost.
Scott LudenAh.
Scott LudenSo, you know, I wonder how many folks out there we've all worn a.
Scott LudenLots of us have worn shoulder pads, but how many of us have stopped to think about what it's like shipping shoulder pads?
Scott LudenI love that analogy.
Scott LudenAnd I bet my hunch there, Rezatami, is based on what you'll learn together is that you were able to take that information, that new, better, more efficient way of shipping it and use that to better rate shop is my hunch.
Reza TommyFor sure.
Reza TommyFor sure.
Reza TommyAnd I'm going to jump ahead a little bit, too.
Reza TommyYeah.
Reza TommySo.
Reza TommyRight, because you want the smaller box.
Reza TommyRight.
Reza TommyTo optimize shipping cost.
Reza TommyRight.
Reza TommyBut if you also think about the different types of customers that could receive these things, right.
Reza TommyI mean, for example, you can buy, should deposit exporting goods.
Reza TommyThey're going to have a, they're going to have a different kind of reception process to, you know, Joe's football shop on Main street.
Reza TommyRight.
Reza TommySo we want to optimize shipping costs by shipping smaller boxes, for sure.
Reza TommyBut we also want to make sure there's a good customer experience.
Scott LudenRight.
Reza TommyWe want to make sure that the TMS and the business rules shipping to like a retail store who can accept pallets of goods is different than, you know, the sporting goods shore on Main Street.
Reza TommyMain street may not have a receiving dock or maybe in an old part of town in Pennsylvania or Ohio, and they have no way of getting an LTL truck with the liftgate to there.
Reza TommySo we want to make sure that we're delivering parcel to them.
Reza TommyRight.
Reza TommySo the one thing that their railings can do is set business rules for specific customers and ship to locations that we don't.
Reza TommyWe take the person out of it that it's programmed, you know, that Jack's sporting goods on Main street can't get a lift gate with a pallet that we have to ship them parcel.
Reza TommyAnd you know what parcel carrier x does better than y.
Reza TommyAnd they're going to request that they ship with, with xdem.
Reza TommyAnd having systems that take, again, the human error element out of it and program takes, makes my life easier.
Reza TommyRight.
Scott LudenAnd the customer makes your team's life easier, delights your customers because they're getting the product and the way they need to get it.
Scott LudenTwo of the things that you spoke to there, Reza, Tommy and Shannon bring you in here is we heard, taking a lot of the manual operation out of the process.
Scott LudenRight.
Scott LudenStudy after study.
Scott LudenShannon, we talked about this a lot because I think we picked a Stanford study that looked at like, I think nine could have been 19 errors per hundred opportunities.
Scott LudenI can't remember that.
Scott LudenBut anyway, you'd be surprised.
Scott LudenEveryone out there, how many manual errors would that rate?
Scott LudenThat what those rates look like.
Scott LudenAnd then the second thing that Reza, Tommy touched on and applied is having all these systems that are talking with each other effectively.
Scott LudenRight.
Scott LudenAnd so, Shannon Valancourt, when you hear Reza Tommy talk about shipping shoulder pads, those specific examples, but also some of those greater themes that apply to any, no matter what you're shipping, you've been in the game for quite some time, as you put it.
Scott LudenYou broke our 30 year rule earlier in your introduction.
Scott LudenBut how common are these issues that Rezatami is bringing up here today?
Shannon ValencourtWe run into it all the time.
Shannon ValencourtAnd what Reza was talking about with the nesting of the shoulder pads, all that stuff, that's typically not a TMS function, but that's where we made it, a TMS function to essentially carbonize and know that here's how you're going to pack those items together and then based on where it's going to, where there's specific rules, things like that, because we have other customers that have similar type of products where they're just hard to cartoonize.
Shannon ValencourtShoulder pads are one thing.
Shannon ValencourtBecause of the nesting, you've got other types of objects out there that are just hard to cart.
Shannon ValencourtNice.
Shannon ValencourtEven, even back in the east and bell sports days when you had baseball bats, hockey sticks, things like that, those are always the hard things to figure out how they're going to be packed.
Shannon ValencourtThey're not nice little cubes.
Shannon ValencourtKnowing where you're shipping to, for example, Dick's.
Shannon ValencourtWe have another customer that ships to Dick's, and the maximum box size is 48 inches long.
Shannon ValencourtThat's it.
Shannon ValencourtThey will not accept anything longer than 48 inches.
Shannon ValencourtSo you have to take that into account as you're running through these rules and optimizing everything.
Shannon ValencourtSo that's where, just like Reza said, whether you're shipping to a big box retail, they're going to have one set of rules compared to just some regular sporting goods store on Main street in Randoul, Illinois.
Shannon ValencourtIt's different.
Shannon ValencourtAnd that's where we have to be able to handle all that stuff because our customers are shipping everywhere.
Scott LudenGoing back to your earlier part of your response there, Shannon, I love something you said.
Scott LudenYou said that it wasn't typically a TMS problem, but you made it one, which gave you all your collective efforts the opportunity to solve a pressing business issue.
Scott LudenSo I love that.
Scott LudenAn operational issue.
Scott LudenOkay, so, rezatomic, now, we talked about automating rate shopping.
Scott LudenWe talked about taking a lot of the manual efforts out, make, you know, really help to equip our team by focus on more fulfilling tasks.
Scott LudenRight.
Scott LudenAutomate a lot of blocking and tackling.
Scott LudenRight.
Scott LudenAnd make their days more fulfilling and rewarding and more successful.
Scott LudenWhat other manual processes have you wanted to automate since you first joined the organization.
Reza TommyYeah.
Reza TommySo we have lots of, like, we were talking about unique customers, right.
Reza TommyFrom a big sock retail to a store on mainstream.
Reza TommyYou know, we sell, we hear the term omnichannel thrown around a lot.
Reza TommyShipping.
Reza TommyOmnichannel.
Reza TommyRight.
Reza TommyShipping to someone's house, you know, third party drop shipping, big box retail, you know, small, small, regional chains all have different needs.
Reza TommyAnd when you have so many customers spread around all North America and globally.
Reza TommyBut it's really hard.
Reza TommyAnd every customer has a different route guide and shipping requirements.
Reza TommyRight.
Reza TommyAnd to be able to program that and have it be, have a platform like rate links that's robust, that you can either do it by a customer code versus shipped to.
Reza TommyRight.
Reza TommyBecause you could have a small chain with eight stores that has a rule, and you want to apply it to all eight, but maybe one of them is in a mall and that may be something different.
Reza TommySo you do it by ship to.
Reza TommySo again, the world is a complex place, and shipping that is also complex.
Reza TommySo, again, being able to program all those small, intricate things that customers needs, again, is super helpful.
Reza TommyAnd it still doesn't cover everything, but it covers a lot of it.
Scott LudenYeah, that's right.
Scott LudenThere's no magic wand out there.
Scott LudenShannon and Reza, Tommy, if y'all have one, let me know.
Scott LudenI'd like to invest in it, and we'll sell it to the world together.
Scott LudenBut Shannon, he touched on a lot of things there, of course, all the different requirements that different customers have taken, a lot of manual things, customizing when you've got to customize in this ever challenging world.
Scott LudenBut what he started to imply on there, and what he and he spoke about in a previous response was having the TMS and the freight, audit and payment all integrated in one app, which keeps all your data in sync as it's connected to other platforms that are involved in day to day operations, WMS, ERP, and other things.
Scott LudenMy hunch is it's a pretty common request to have all of those platforms I mentioned integrated, working in harmony in a perfect symphony out there across the organization.
Scott LudenYour thoughts there, Shannon?
Shannon ValencourtWell, yeah, I think everyone wants to integrate it.
Shannon ValencourtI think the challenge everybody runs into is it's hard to integrate until you find a platform like ours that actually has it all integrated.
Shannon ValencourtThere's a lot of connecting that I think occurs out there, but there's not a lot of integrating that we see.
Shannon ValencourtAnd by getting it all integrated together, what you're gonna be able to do is really unlock a lot of value.
Shannon ValencourtSo you're gonna get the pieces of information that you are missing on that freight invoice side that's gonna allow you to make better decisions more long term.
Shannon ValencourtSo, you know, if you're going out and trying to make carrier changes or understand why a shipment was done a certain way without having that TMS data, you're not gonna know.
Shannon ValencourtYou're just going to be looking at a shipment and question, well, why didn't they ship it a different way?
Shannon ValencourtAnd it's, well, it couldn't because of the rules that you have.
Shannon ValencourtThe customer said, here's your options to ship to us.
Shannon ValencourtSo did you follow those rules, yes or no?
Shannon ValencourtAnd that way you're not chasing down a potential savings of some kind that you can never get.
Shannon ValencourtAnd I think that's a, that's the nice value of having it truly integrated, is you're finally going to see what really went into the decision making of that shipment.
Shannon ValencourtAnd that way there's no more questions around it.
Shannon ValencourtAnd now you can confidently move forward with your decisions that you're making on any carrier.
Shannon ValencourtChoices, rate changes that are happening, things like that.
Scott LudenSo it's a nice, everyone has it on their wish list, but few platforms actually enable it to bring it to fruition, is what I heard you say there, Shannon.
Scott LudenI think the other thing, as you were describing, when you don't have that, you're just kind of searching in the dark.
Scott LudenYou don't have all the information you need to manage effectively day in and day out.
Scott LudenAnd I think in talking with Reza Tommy earlier, you know, in the previous state, it was manual to connect order to shipping costs, shipping costs of freight invoices, and even verifying contracted rates to invoices to make sure it's all accurate.
Scott LudenRight.
Scott LudenAnd this provided an outstanding opportunity, if I understand it correctly, at Rezatomi, to automate much of that.
Scott LudenRight, to manage better.
Scott LudenRight?
Scott LudenYeah.
Reza TommyAnd this is gonna get kind of into the weeds.
Reza TommyBut one of the things that, when you have it all together is, for example, if you have two different product types with two different cost centers and gl codes in the same box, if you want to split the shipping costs and how you allocate to the different businesses or cost centers, having that all integrated helps because it can say, product a was 70% of the volume, product b was 30%, allocate the freight cost 70 30, or whatever that is.
Reza TommyRight.
Reza TommyIn businesses that are, in companies that are doing stuff like this, you want to integrate, because again, it takes all the works done on the front end not after you get the bill.
Scott LudenExcellent point.
Scott LudenShannon.
Scott LudenQuick comment on that because I want to, that kind of sounds like a bit of a special request, and I'm going to ask Reza, Tommy MOre about that in just a second.
Scott LudenBut Shannon, any comment on what he just shared there?
Shannon ValencourtNo, I think that's, that's really the, the holy grail that a lot of people try to find is it's the cost allocation.
Shannon ValencourtThat way they can finally allocate freight cost to an item so they can get freight as a percentage of sales, you know, because with the different products that they're shipping, shoulder pads, helmets, you know, when they had baseball bats, things like that, they all cost, you know, very different to ship out there.
Shannon ValencourtSo how can you allocate that for cost correctly to that product?
Shannon ValencourtAnd that's where on the TMS side, what we're doing is we're actually capturing the general ledger code for that particular item.
Shannon ValencourtThat way when the invoice comes in, it matches up and then we can allocate that freight cost to the correct GL code at the correct amount.
Shannon ValencourtThat way from a reporting and a financial perspective, they now have just a different level of reporting that they're able to do to really understand how items are costing them for freight cost.
Shannon ValencourtAnd I think that's, I mean, we see that a lot across our customers and that's the best way to do.
Scott LudenIt, being able to better manage profitability and just know it's good business versus not so good business.
Scott LudenYou know, if we don't have accurate data and make all these connections that both of you are speaking to, we just can't manage as effectively and as in the know as, as really 2024 demands from our organization.
Scott LudenSo a minute ago, Reza Tommy, actually, a couple times so far in our conversation, you've talked about very specific examples that may have included some special requests from clients on how to ship the products back to the shoulder pads.
Scott LudenI can tell you we've done probably 3000 plus podcast live streams and webinars here at supply chain.
Scott LudenNow we have yet to ever talk about shipping shoulder pads.
Scott LudenSo runs the time that you new horizons here, I'm just dialing in on that.
Scott LudenSo in any business, any sector, in any industry, there's always special requests from clients out there of how they want you to ship their products.
Scott LudenSo how were you previous state?
Scott LudenHow were you handling those special requests in the past compared to now?
Reza TommyReza Tom well, it was all manual, right?
Reza TommyIt was all manual and it was left up to the operators to figure it out and then once everything was packed, then they would go to, like a shipping manifest, and they would enter the details and it would tell you how to ship it.
Reza TommyWhere when you have a tool integrated, one of the big things that the railings has this plan based on it, as soon as the order, before it's even sent to the wagon at the same time, but simultaneously, when the order sent to the warehouse we're picking, it's also sent to rate links, and they estimate the volume, the number of boxes that it's going to take.
Reza TommySo you can estimate and predict the best way to ship it.
Reza TommyRight.
Reza TommyAnd then it also tell, you know, estimates how many boxes.
Reza TommyAnd if you need to go back and check and audit, the warehouse should have done it in three boxes.
Reza TommyWell, why did they ship six?
Reza TommyAnd you can go to the warehouse, say, hey, right.
Reza TommySo it pushes that upstream to help manage and process, right.
Scott LudenIt lets the system do it instead of what I'm hearing, and y'all correct me if I'm wrong because of Tommy and Shannon, but rather than leaning into a culture where we reward the superheroes that put their cape on and make something happen manually, rather than enable that, which is, which adds so much more friction and stress and inconsistency oftentimes operations.
Scott LudenRight.
Scott LudenTo a team that really wants to do the best, and if they've got to do it manually, they're going to do it.
Scott LudenBut let's let the system and let, let technology do what they do best.
Scott LudenYou let the humans focus on higher tasks that don't take their personal time and attention.
Scott LudenShannon Valancourt, your quick comment there, before I move on to the next question.
Shannon ValencourtYeah, I mean, the challenge that we had with, with Resa and their requirements is a little non traditional in terms of what they were looking at most of the time we put in these rules, it's pure rate shopping, where it's like, if this carrier is a penny cheaper, pick that carrier.
Shannon ValencourtAnd with them, we also had to take into account handling.
Shannon ValencourtSo within their warehouse, because of the automation that they have in there with all the conveyors and the way they're set up, they're actually more efficient to handle parcel than they are LTl.
Shannon ValencourtSo that's where it would favor parcel, even if it was a little bit more expensive because of the handling, it just, they were that much more efficient in terms of the personal, you know, the personnel and how they have to manage the putting it on a pallet and the time it takes and all that stuff.
Shannon ValencourtSo our rate shop actually had to take all of that into account as well.
Shannon ValencourtSo it wasn't quite as cut and dry as just, hey, it's going to Dick's sporting goods.
Shannon ValencourtHere's the list of carriers that you could use.
Shannon ValencourtJust pick the least costly one.
Shannon ValencourtWe also did take into account package counts.
Shannon ValencourtAnd, you know, once it hits a certain number of packages, it's like, well, that's much more efficient, you know, going LTL or it's much more efficient going parcel.
Shannon ValencourtSo we can handle it being a little bit more expensive, right.
Shannon ValencourtWith a parcel carrier versus LTl, et cetera, et cetera.
Shannon ValencourtSo it's like that was very different type of rules that we had to put in place for them.
Shannon ValencourtAnd it really helped drive, I think, their processes internally.
Shannon ValencourtCause their whole warehouse was built from the ground up for this.
Shannon ValencourtI mean, they were a customer before they created that Warehouse.
Shannon ValencourtThey used to be very manual picks everywhere, and then all of a sudden they created that state of the art warehouse and we had to change some rules and that's what we were able to do for them.
Scott LudenSo I appreciate you sharing that, Shannon.
Scott LudenIt begs the question.
Scott LudenRight.
Scott LudenCause you're talking automating business rules, common and unique, that will help make warehouse warehousing, shipping, freight auditing processes so much more efficient and accurately and accurate and enable management to manage better.
Scott LudenSo from our past discussions, though, I know one of the first questions that you always get from shippers is how long does it take to integrate all of my systems and set up our unique business rules?
Scott LudenHow long?
Scott LudenHow long?
Scott LudenTell me, how long is that?
Scott LudenIs that the first question you get?
Scott LudenAnd can you speak to that a little bit here?
Shannon ValencourtWe get more than just how long.
Shannon ValencourtIt's, can you really do it?
Shannon ValencourtBut it's, the actual connecting of systems is nothing that difficult anymore to do.
Shannon ValencourtReally what it comes down to is just layering all the rules and doing all the testing.
Shannon ValencourtSo how long always depends on the scope.
Shannon ValencourtSo that's where we have to understand that first before we can give an answer to that.
Shannon ValencourtBut it can be done faster than you think.
Shannon ValencourtAs long as you guys are prepared to do the testing and have the right amount of intensity, it can be done pretty quickly.
Shannon ValencourtYou know, six to eight weeks is not uncommon.
Shannon ValencourtSometimes it can go to twelve weeks.
Shannon ValencourtAgain, depending on the complexity of what we're doing, that's going to really dictate how long it takes.
Scott LudenI was writing down six to eight, Shannon.
Scott LudenSo we're going to lock that one in.
Shannon ValencourtI mean, it certainly we've done it.
Shannon ValencourtWe've done it plenty of times in that amount of time.
Shannon ValencourtAnd you know, what I always try to tell the customer is, let's, you know, give me all your rules that you can think of, because that's usually the limiting factor, is there's a lot of manual stuff they do that they just do.
Shannon ValencourtNobody remembers.
Shannon ValencourtThey can't really think of.
Shannon ValencourtAnd we put it in the system, they start their testing, and then that usually jogs their memory on a few more things, and then we'll add it.
Shannon ValencourtBecause the way that we're built and the way that we deploy everything is, it always comes down to an iterative process.
Shannon ValencourtWe're going to start with what you give us.
Shannon ValencourtIt's better than what you had, and then we're going to continually iterate and make those additions to it because business changes, too.
Shannon ValencourtYou're going to have a rule that comes up in three months, six months, a year that didn't exist when we implement it.
Shannon ValencourtSo not just about that first implementation.
Shannon ValencourtWe have to make sure that they can continually work with this system and evolve as they evolve, because they're also going to come up with better ideas.
Shannon ValencourtI mean, Reza has come up with changes that we've made because he's come up with better ideas on how to move the freight.
Shannon ValencourtAnd it's like, we have to be able to do that.
Scott LudenI mean, going back to one of the examples we've used here today, Reza, Tommy and Shannon, is helmets.
Scott LudenHelmets.
Scott LudenIn the last few years, they've gone through new regulations at all levels.
Scott LudenIf I'm not mistaken, bats, bat sizes.
Reza TommyOh, the certifications.
Scott LudenYes.
Scott LudenResettam.
Scott LudenHow fast the ball comes off.
Scott LudenBats have changed, right?
Reza TommyYeah.
Reza TommySo at Easton, quick side tangent, because I think people find this interesting.
Reza TommySo they have a.
Reza TommyWe had a cannon that shoot launched a baseball at the bat to see how fast the ball came off the bat, right.
Reza TommyAnd there was regulations, right.
Reza TommyAnd every time there was a new regulation change with little League, and I know this, having three boys and having to buy new bats, anytime those regulation changes, like Easton sales went up, we were air freight.
Reza TommyYep, yep, yep.
Reza TommyWe were air freighting all the bats because, right.
Reza TommyThey had to be in the store in time for size.
Reza TommyRight.
Reza TommyIt comes down to player safety, right.
Reza TommyAt one point with the composites, they were coming off faster off the bath, and they were being launched.
Scott LudenYes.
Scott LudenWell, I gotta add, as your lifelong mediocre church league softball third baseman and shortstop, I am appreciative.
Scott LudenAppreciative of the slower speeds coming off bats at a hard enough time when it's moving 20 miles an hour off the bat.
Scott LudenSo, but I love that example.
Scott LudenI love these universal examples.
Scott LudenI think a lot of folks, whether they played sports or the kids play sports, can relate to and thinking about the shipping and just, just all the supply chain activities behind.
Scott LudenSo, rezatomy, we've covered a lot of ground here.
Scott LudenWe've talked about more than three ways, probably about how you've made your supply chain more efficient.
Scott LudenWe've talked about automating rate shopping successfully and accurately.
Scott LudenRight.
Scott LudenWe've talked about automating and customizing the special requests, the regular workflows and the business rules which touch on a second ago.
Scott LudenAll that more and then all of that kind of rolls up into the wish list that everybody has that Shannon talked about.
Scott LudenEverybody wishes for it.
Scott LudenNot everybody can deliver.
Scott LudenBut integrating technologies into a single platform to not just optimize here and there, but optimize the entire transportation life cycle.
Scott LudenAnd you know, in this case of multi divisions.
Scott LudenRight?
Scott LudenLike Reza, Tom, your organization, it's not just like ABC company benefits or this business unit benefits, it's the enterprise.
Scott LudenAnd gosh, the economy's a scale.
Scott LudenThere is the gift that keeps on giving for sure.
Scott LudenSo let's talk about returns.
Scott LudenAre there any returns, outcomes, results, anything you can share?
Scott LudenRezatami, on all the work that you've already accomplished.
Reza TommyYeah.
Reza TommyAnd the biggest thing is happy your customers.
Reza TommyRight.
Reza TommyAnd one of the metrics that I like to judge is it's a good thing when our director of customer service and the customer service folks aren't coming to me.
Reza TommyRight.
Reza TommyIt's a good thing when the finance folks are not saying, hey, your costs are out of line with expectations.
Reza TommyRight?
Reza TommySo not having those things are the wins because nothing's going to be perfect.
Reza TommyYou're always going to have expedited shipping, you're always going to have special requests.
Reza TommyNo one really cares about how much things cost if they don't have their stuff.
Reza TommySo that's my not that costs are important.
Reza TommyCosts are really important.
Reza TommyBut the first thing is to make sure that the customer has their stuff and they have a good positive experience.
Reza TommyThen you can drill down on the costs.
Reza TommyAnd to Shannon's point, when you have the integrated system with the GL cost center, with the rate shopping results or exceptions, then you can start managing that better.
Reza TommyAnd that's what drives efficiency down the road.
Scott LudenI love that.
Scott LudenThat's one of the common themes we've talked about here because not only must we enable our teams to do great work in their roles and make that easier, easier for them.
Scott LudenBut we as managers and leaders, have to continuously find new ways of managing and leading more effectively and better.
Scott LudenEspecially, as both of you all point out, the game continues to change, as well as the solutions and technologies and new innovative practices also change, enabling a different way to tell folks why we shouldn't always do it the way we've always done it.
Scott LudenSo if I can, Rezutami, tell me if I'm wrong, but what I heard you say, because we talked about, you know, I'm asking about outcomes.
Scott LudenWhat I'm hearing you say is, since y'all began working, uh, your customers are indeed more delighted.
Scott LudenI bet you'll have a delighted index.
Scott LudenMaybe, uh, your CFO's are tend to be, our CFO tends to be a little bit happier, or CFO's maybe in this case.
Scott LudenAnd then the director of customer service, who probably, uh, has all sorts of conversations with customers, good, bad and indifferent.
Scott LudenRight.
Scott LudenThat's the best nature of their job.
Scott LudenI bet.
Scott LudenThey seem to be having happier and better days.
Scott LudenIs that right, Reza?
Reza TommyTom, happier, yeah.
Reza TommyThere's still issues, right?
Scott LudenBut being able in any business.
Scott LudenRight?
Reza TommyBut another thing that railing substance do is there's a log that explains how it got to the point how it shipped that way.
Reza TommySo being able to internally say, hey, when it says, why did it ship this way versus that way?
Reza TommyTo be able to go with, hey, this is why they're like, oh, it wasn't just an accident, love.
Scott LudenThat's the question, right?
Scott LudenEverybody wants to know why, right?
Scott LudenThat's, that's, uh.
Scott LudenI love how I'm glad you added that.
Scott LudenBeing able to answer that question in a way that, uh, makes sense, number one.
Scott LudenNumber two furthers the relationship with customers, right.
Scott LudenThat's one of the north stars here for sure.
Scott LudenAll right, so, Shannon, and thank you, Reza, Tommy, for sharing that.
Scott LudenWe're looking forward to having you back on.
Scott LudenAnd we'll, we'll give folks an update of the continued journey that you are having.
Scott LudenBut don't go anywhere.
Scott LudenWe got a couple more questions for you, Shannon.
Scott LudenWe're talking outcomes, gains, results.
Scott LudenAre you able to share any other efficiency gains, cost savings, you know, how what you are doing, what it enables your other clients to accomplish new heights, you know, using integrated platforms again for both tms and freight, audit and payment.
Shannon ValencourtYeah, I mean, one of the, probably the biggest efficiencies that people gain is around headcount.
Shannon ValencourtYou know, they don't have to worry about bringing in additional people, maybe during peak seasons, things like that, because of the automation that's in there.
Shannon ValencourtOn the freight audit and payment side, the GL coding that automatically happens.
Shannon ValencourtAgain, it allows you to do more with less.
Shannon ValencourtSo you don't have to have a large amount of people in the department to do the freight payment.
Shannon ValencourtYou don't need a large amount of people in the department to do the shipping.
Shannon ValencourtSo that way you can really focus on putting people where you really need them to move the product through the warehouse to do what people really should be doing, not these repetitive tasks that the system is doing anymore.
Shannon ValencourtYou've got those savings, you've got some hard dollar savings on freight.
Shannon ValencourtSome customers are able to save upwards of 1012 15% just by automating that rate shopping and always picking the right carrier, then by having it all integrated.
Shannon ValencourtYou can also see, like Reza was saying, why something happened.
Shannon ValencourtSo if somebody didn't follow the rule or rule wasn't followed, you can see why what happened.
Shannon ValencourtAnd was it a bad thing or not a bad thing because at the end of the day you got to get product out to your customer.
Scott LudenThat's right.
Shannon ValencourtSo that's the exceptions that occur.
Shannon ValencourtBut at least you now can really monitor it and keep those exceptions down to the real exceptions, not what I think are sometimes the fake exceptions.
Shannon ValencourtSo you start applying these types of savings, you know, 1012 percent on top of your freight spend.
Shannon ValencourtThat's a, that can be a large number for a lot of customers.
Shannon ValencourtAnd, and then the either, you know, prevention of, you know, adding headcount to do certain tasks, you know, that allows this to be a much more scalable operation for a lot of companies.
Shannon ValencourtSo that way they can grow when they need to without having to hire a lot of people.
Shannon ValencourtI think that's, that's really where you can get a lot of opportunities out of a system like this.
Scott LudenExcellent point.
Scott LudenAnd folks, stick around for just a second.
Scott LudenWe're going to share an additional case study from a previous guest at one of these conversations here at supply chain now.
Scott LudenSo stay tuned for that.
Scott LudenReza.
Scott LudenTommy, so I got to ask you, when's your next triathlon or half marathon or what's your.
Reza TommyYeah, I'm doing a six hour endurance mountain bike race Saturday with my son.
Reza TommySo there's local mountain bike park and as many lapses you can do in 6 hours.
Reza TommySo my oldest and I are going to do that this Saturday, assuming the weather goes.
Scott LudenThat is awesome, man.
Scott LudenAnd I've seen pictures of you on social rappelling down the grand tetons.
Scott LudenI think it was, man, you, I'll tell you if it's supply chain by day and conquering the outdoors by night, you, you stay on the road, I tell you.
Reza TommyYeah, yeah.
Shannon ValencourtI love it.
Scott LudenSo let's make sure folks know how to connect with our panelists here today.
Scott LudenWe got it.
Scott LudenWe got some resources from shannon, the rate links team we're going to cover in just a second.
Scott LudenBut, rezutami, how can folks connect with you and, and talk shop with you after today's session?
Shannon ValencourtYeah.
Reza TommySo you can find me on LinkedIn.
Reza TommyReza Tommy.
Reza TommyYou can email me reza tommy at gmail.
Reza TommyReza Tommy on yeah.
Reza TommyReza Tommy on Twitter x.
Reza TommyRight.
Scott LudenSo you're readily available with the challenge, whether they're folks ready to talk shop, talk supply chain, or if they want to.
Scott LudenI'll tell you, I really enjoy your sports product related supply chain background.
Scott LudenFascinating.
Scott LudenWe'll have to have you back and talk more about that.
Scott LudenShannon, great to have you back, as always.
Scott LudenI'm looking forward to the big event we're going to be sharing in just a moment.
Scott LudenBut how can folks track Shannon Valancourt and the rate leaks team down?
Shannon ValencourtAlways get us through LinkedIn or go to ratelinks.com, drop us a line anytime.
Scott LudenIt is just that easy.
Scott LudenIt's just that easy, folks.
Scott LudenYou can also come out if you want to connect with Shannon and the rate links team on the move, come out to join us in Arizona at the Insight conference 2024.
Scott LudenIt's coming up quick, I'll tell you, October 15 and 16th, but I bet a couple folks out there, if they want to join us, I bet Shannon Valancourt and the team will find, find some space.
Scott LudenIt's gonna be a great time.
Scott LudenLots of supply chain conversations, shipping conversations.
Scott LudenBut also, I think we're gonna enjoy some top golf, some camaraderie, some great networking and presentations, and we are gonna be releasing the results and key takeaways from our TM tech survey 2024 that we have been collecting tons of intel from around global supply chain.
Scott LudenSo appreciate everybody that happened to participate there.
Scott LudenAnd then one other thing.
Scott LudenWe talked about results.
Scott LudenIt's so important.
Scott LudenAnd I like what Shannon mentioned earlier, two, two key aspects of what they, how they work with teams like rezatomy and their organization is six to eight weeks.
Scott LudenSo we're not talking a lumbering 18 month.
Scott LudenNo, six, eight weeks.
Scott LudenAnd then the second thing that might get overlooked is the iterative nature of the relationship, because things are constantly evolving.
Scott LudenAnd while I bet this is just my take, Shannon, tell me if I'm wrong, but I bet there's some instant results.
Scott LudenAnd then because of the iterative nature of the partnership and the work together, there's ongoing new opportunities and results found.
Scott LudenIs that right, Shannon?
Shannon ValencourtOh, yeah.
Shannon ValencourtIt's just like wringing out the, you know, the towel.
Shannon ValencourtYou get it lot out right away.
Shannon ValencourtBut if you keep squeezing a little bit more in there, man.
Scott LudenA little bit more.
Scott LudenA little bit more.
Scott LudenWell, um, speaking of a lot more, how about check out this, their work with Pinterest.
Scott LudenWe got, first off, the case study, about 12 million in LTl savings annually.
Scott LudenGoodness gracious.
Scott LudenWe'll learn more about how that was accomplished via the case study and a great interview with Jim Flourish.
Scott LudenJim was a great guest a couple months back.
Scott LudenReza, Tommy was a great guest here today.
Scott LudenBut they both speak to what goes into getting these eye popping results that just empowers the organization to tackle new heights.
Scott LudenSo, resident Tommy, I can only imagine these things you're working on just roll up to power the organization to maybe on the most successful year yet here in 2024, is that right?
Reza TommyYes, sir.
Scott LudenAwesome.
Scott LudenBig thanks to Rezutami Gazbarati, a director of supply chain from a leading company out there in the outdoor sporting goods industry.
Scott LudenThanks so much for being here.
Scott LudenReza Tomi, thank you.
Reza TommyThank you.
Scott LudenYou bet.
Scott LudenAnd Shannon Valencourt, as always, CEO with rate links.
Scott LudenGreat to have you here.
Scott LudenAppreciate you bringing the conversations like this to us.
Shannon ValencourtThank you, guys.
Shannon ValencourtAnd thank you, Reza.
Shannon ValencourtGood talking with you as always.
Scott LudenGreat conversation.
Scott LudenAppreciate y'all both.
Scott LudenWe presented an incredible supply chain leadership use case here, right.
Scott LudenAn example of things that are presented with opportunities that are out there waiting for all of us to change how business is done.
Scott LudenOur teams are ready for all of us to do just that.
Scott LudenSo I encourage you to take one thing that Reza, Tommy and Shannon shared here today and put it into action.
Scott LudenIt's all about deeds and I not words.
Scott LudenBig opportunities are there to be had.
Scott LudenAnd with all of that said on behalf of the entire team here at Supply chain now, hey, be sure to connect with our speakers, check out those resources, but most importantly, on behalf of the team, Scott Lewton, challenging you do good, give forward and be the change that's needed.
Scott LudenAnd we'll see you next time right back here at Supply chainow.
Scott LudenThanks, everybody.
Scott LudenThanks for being a part of our.
Shannon ValencourtSupply chain now community.
Shannon ValencourtCheck out all of our program@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.
Shannon ValencourtSee you next time on supply chain now.