By Matt Waller, Ph.D.
Where the future of the retail value chain is being built. As a supply chain management professor, consultant, and investor, my mission is to bridge the gap between academia, industry, and investme
... more
5
1313 ratings
The podcast currently has 47 episodes available.
Chris Sultemeier recently sat down for an insightful interview on The Matt Waller Podcast. With nearly 30 years of experience leading supply chain and logistics at retail giant Walmart, Chris has a wealth of wisdom to share. A few key themes around leadership and innovation emerged from the conversation.
Humility and Teamwork
Despite his many high-level roles, including EVP of Logistics, Chris maintains a humble, team-focused approach to leadership. He believes strongly in ‘servant leadership’ – empowering others so they can accomplish more than they thought possible. As Chris puts it, “You are only as good as the team you’re leading.” He took the greatest joy in “seeing a team accomplish more than they ever thought they could.”
Chris stresses that building trust is the foundation of any relationship. Team members must know you truly care about them as individuals, not just cogs in a machine. With trust and care in place, Chris found team members would go to incredible lengths for shared success.
Innovation Through Testing
Chris credits Walmart’s continued innovation, even as a huge company, to relentless testing and trying of new concepts. He reminisces about the constant small tests underway during Sam Walton’s leadership. This experimental approach never ceased even as Walmart grew.
Chris provides several examples where Walmart piloted ideas he was originally skeptical of, including order online pickup in store and automation partnerships, which both proved tremendously successful. He learned not to dismiss ideas out of hand just because the approach was counterintuitive. Walmart’s test-and-learn culture kept them innovating.
Investing in the Future
Since retiring from Walmart, Chris serves on the boards of several tech startups aiming to transform retail and supply chain. He looks for companies with a compelling vision to solve real-world problems, such as inefficient ocean shipping contracts. Chris partners with founders who have the drive and humility to see their ideas through.
He is particularly excited about companies leveraging AI, machine learning and generative AI to structurate unstructured data. Chris believes these emerging technologies will unlock major advancements.
Throughout his long career, Chris Sultemeier has exemplified personal humility, commitment to teams, and the power of an experimental mindset. His wisdom provides lessons for leaders in any industry looking to innovate and build trusted teams for the long-term.
I recently had the pleasure of interviewing Tracy Black, an accomplished technology executive in the logistics industry and partner at NewRoad Capital Partners. Tracy served as Senior Vice President of Information Technology at J.B. Hunt Transport, leading major technology transformations for the company. She now serves on the boards of several early-stage companies and offers advice to founders in the logistics and supply chain technology space.
In our discussion, Tracy shared insights from her impressive career journey and offered advice for developing strong IT talent.
A few of the key takeaways include the following:
Implementing new technologies at large companies requires alignment at the top and a clear focus on expected outcomes. Quick prototyping can help demonstrate possibilities to leadership.
When evaluating startups to partner with, Tracy looks for strong leadership teams and an “unfair advantage” that differentiates the business. She advises founders to surround themselves with smart people and pay close attention to unit economics.
Attracting IT talent, especially in Northwest Arkansas early in her career, required creating a culture of career growth, learning, and empowerment. Tracy invested heavily in training, mentorship, internships, and giving technologists visibility to leadership.
Asking for help and collaborating with others is key for career advancement. Trying to appear like you know everything can hold you back.
Tracy is passionate about leveraging data, AI, and her team of operating partners to provide added value to the startups NewRoad Capital invests in.
It was fascinating to learn from Tracy’s perspectives on navigating major technology changes within large corporations and high growth startups. Her strategic mindset and focus on people clearly contributed to her success as a leader.
Clete Brewer is the founder and managing partner of New Road Capital Partners, a private equity firm focused on investing in and scaling companies in the supply chain logistics and retail technology sectors. He has over 30 years of experience leading and advising high-growth companies, previously serving as CEO of staffing company Staffmark and President of Sport Clips.
In the interview, Brewer provides his perspective on trends in private equity investing and shares insights on how New Road identifies and partners with promising companies to help them scale.
Key Takeaways:
- New Road looks for companies at the "tipping point" stage, where they have an established product and early traction but need help accelerating growth. The firm leverages its operating expertise and networks to provide strategic guidance and operational support. (Listen to the podcast to gain a full understanding of this idea.)
- When evaluating management teams, New Road looks for humble leaders who surround themselves with strong talent and have a focused solution that solves a real pain point for enterprise customers.
- The COVID-19 pandemic accelerated adoption of supply chain technologies like track and trace, final mile delivery, and reverse logistics. New Road sees continued opportunities in modernizing legacy systems through cloud-based, specialized solutions.
- Strategic corporate venture investing is on the rise, allowing large companies to support innovation and gain insights into emerging technologies in their sector. New Road partners with corporations looking to invest alongside their fund.
Brewer emphasizes the importance of focus, and chemistry in building the New Road team. His passion for unleashing entrepreneurial spirit shines through. For supply chain and retail tech companies looking to scale, partnering with an operationally-focused firm like New Road can provide invaluable guidance on growth.
The balance between supply and demand has a significant impact on pricing and behavior in the trucking industry. During periods of excess capacity, known as soft markets, prices tend to fall as carriers are willing to honor existing contracts, as evidenced by high acceptance rates. However, in tight markets where demand outweighs supply, prices rise and carriers may prioritize more lucrative spot freight opportunities over contracted loads.
These market dynamics and the incentives that drive carrier and shipper actions were the focus of recent research conducted through a partnership between academia and industry. Angi Acocella, who has studied trucking procurement through her research at MIT, explored how carriers respond to shippers under different conditions. Her findings indicate that while maintaining relationships is important, carriers are primarily motivated by current market conditions when deciding which loads to prioritize.
While optimization models have proven useful in procurement, the assumptions made in early approaches underestimated the dynamics of real-world transportation. Deterministic frameworks that ignore variability did not translate effectively to practical applications. Newer techniques have emerged to instead impose constraints that reflect industry complexities. This enhances the strategic value of optimization beyond traditional deterministic, cost-focused objectives.
Network segmentation also deserves further study, as not all freight lanes are uniform. Factors like volume consistency, carrier types, and opportunity costs must be considered to tailor solutions. Dynamic contracts that fluctuate with market conditions could provide more flexibility than annual fixed-rate agreements.
To address the trucking industry’s many complexities, practitioners and academics should continue close collaboration. Analytics from such collaborations can provide insights for industry players ready to adapt to the constant changes they face. Maintaining perspective across networks while focusing on execution, not just planning, will be key to future success.
I interviewed Gordon Downes, the founder and CEO of NYSHEX, an innovative company providing technology solutions to address major challenges in the ocean container shipping industry. With 80% of the top 10 ocean container carriers and many shippers already using the NYSHEX platform, it has significant implications for reducing expected lead times, lead time variance, safety stock, and out-of-stocks for shippers, while also enabling carriers to utilize their equipment more efficiently.
What impressed me about Gordon is how his 12 years of experience at Maersk, the world's largest ocean container carrier, combined with his time at SABMiller/AB InBev, the world's largest beer shipper, gave him unique insight into the problems facing both carriers and shippers. From the carrier side, he saw how no-show bookings and overbooking led to vessels sailing underutilized. From the shipper perspective, he witnessed the costly consequences of containers arriving late.
Eight years ago, recognizing that other industries had solved similar problems using technology, Gordon founded NYSHEX to collect, cleanse and harmonize data from various supply chain partners to provide a shared system of record. This enables carriers, shippers, NVOCCs and 3PLs to all have the same set of facts to identify the root causes of problems, rather than relying on incomplete information and engaging in blame games that strain relationships.
Some of the key problems NYSHEX addresses include determining what went wrong when a container doesn't show up as planned - was the container not loaded, picked up late, or documentation not produced on time? The platform captures data on all the steps prior to container movement, not just basic visibility, to provide a complete picture. It then generates alerts and workflows to flag at-risk containers while there is still time to take corrective action.
By improving planning, execution and communication across the supply chain, NYSHEX reduces waste that negatively impacts both carriers and shippers, such as vessels sailing light and shippers facing production delays. Carriers benefit from better vessel utilization, reduced workload dealing with exceptions, and strengthened customer relationships. Shippers gain the ability to provide carriers with more reliable volume forecasts to secure space and equipment allocations.
I see huge potential for shippers to leverage the rich data and analytics from NYSHEX to optimize inventory, similar to what happened in the quality management era when businesses redesigned processes to eliminate sources of defects. With granular data on transit time distributions and delay patterns that were never available before, shippers can reduce safety stock while improving service levels. This can free up significant amounts of capital, especially important in the current high interest rate environment.
While change is hard in an industry that operates on processes largely unchanged for decades, Gordon emphasized how the value NYSHEX delivers is a true win-win. By focusing first on tactical, tangible problems to demonstrate results, then expanding to more strategic issues over time, the company has steadily grown to processing 2% of global container volume, with ample room for further growth.
I'm excited by the potential of neutral, third-party platforms like NYSHEX to foster trust, transparency and collaboration that lifts performance for all supply chain participants. With the industry's structural challenges not going away, I believe we will see accelerating adoption of such solutions to enable the responsive, resilient and efficient supply chains required for success in today's turbulent business environment.
The venture capital industry in the United States is a crucial driver of innovation and economic growth, providing early-stage funding and guidance to transform ideas into groundbreaking technologies and companies. Recent years have seen record levels of investment and dealmaking, fueling a wave of innovation across the country. However, the industry faces challenges from a complex policy environment and uncertainties arising from shifts in regulations and economic conditions.
Bobby Franklin of the National Venture Capital Association (NVCA) highlighted the historical growth of venture capital, emphasizing key policy shifts in the 1970s that spurred its significant expansion. Venture-backed companies have demonstrated outsized economic impact, with over 50% of public companies since the 1970s having venture capital backing. Despite this, there remains a disconnect between policymakers and the unique needs of venture-backed companies, particularly regarding regulatory challenges such as mergers and acquisitions and antitrust regulations.
The NVCA's mission is to foster rational policy discussions to preserve and enhance the nation's innovative capacity. Franklin emphasized the importance of engagement with venture-backed companies and highlighted the significance of seed and pre-seed investments as indicators of the entrepreneurial ecosystem's health. Despite short-term fluctuations in investment stages and sectors, long-term indicators remain positive, indicating continued confidence in high-potential ventures. Rational public policy, including targeted programs like startup visas, will be crucial in maintaining U.S. leadership in innovation and ensuring the growth of the venture capital industry well into the future.
Today, I spoke with Jared Smith, CEO of Kitestring Technical Services in Bentonville, Arkansas. Jared, who has a PhD in physical chemistry from UC Berkeley, has led Kitestring, a 150-person firm specializing in retail technology, for the past 12 years. Our discussion ranged from the evolution of point-of-sale (POS) systems and the potential of AI in retail to the importance of self-care for entrepreneurs.
Evolution of POS Technology
We started by discussing the evolution of POS systems, which handle transactions, inventory management, and customer engagement. Jared’s company has a strong history in POS development. We reminisced about early Scan and Go technology at Walmart and its improvements. Jared believes the future of in-store checkout will involve both self-checkout kiosks and traditional cashier lanes, providing a seamless customer experience. He highlighted technologies like RFID and computer vision that could revolutionize checkout processes, allowing customers to walk through a checkout area while the system automatically identifies and rings up each item.
Challenges remain, such as RFID signals being disrupted by liquids and metals and computer vision struggling with obscured items in a cart. Jared suggested a hybrid approach, combining these technologies with sophisticated algorithms, could overcome these issues.
Omnichannel Retail and Blurring Lines of Commerce
Our conversation then shifted to omnichannel retail, merging online and offline shopping experiences, such as buying online and picking up in-store (BOPUS). Jared mentioned Walmart’s early BOPUS experiments, like the Alaskan Bush Pilot Project in the 90s, which predated widespread internet use.
Integrating online and offline channels poses unique challenges in inventory management. Questions arise about when an online sale becomes a store sale and how such transactions impact inventory tracking and sales figures. Retailers must navigate these complexities as they adapt to the evolving landscape.
The Promise and Peril of AI in Retail
We discussed AI’s potential to transform retail, offering personalized shopping experiences and optimized supply chains. However, AI is also surrounded by hype and uncertainty. Jared stressed the importance of caution when implementing AI, especially in mission-critical systems like POS. Retailers should avoid jumping on AI trends without thorough evaluation, as untested technologies can be disruptive and costly.
Nonetheless, AI can enhance operational efficiency. Jared shared a study where consultants using AI tools saw increased productivity and quality. While general-purpose AI tools like ChatGPT are popular, Jared sees more value in specialized AI models trained on specific industry datasets. For instance, an AI assistant trained on a retailer’s historical sales data could provide valuable insights for demand forecasting, pricing optimization, and personalized marketing.
Importance of Self-Care for Leaders
As our conversation neared its end, we discussed the importance of self-care for entrepreneurs. Running a business with 150 employees can be incredibly stressful. Jared and I bonded over our commitment to physical and mental well-being, frequenting Blake Street House, a gym where we engage in cardio, strength training, heat therapy, and cold plunges.
These practices profoundly impact mental clarity, energy levels, and overall well-being. Jared emphasized the need to prioritize sleep, exercise, and a healthy diet to manage stress and make sound decisions. He believes that taking care of himself makes him a better leader, enhancing his ability to navigate the complexities of running a successful business.
See more about my discussion with Jared Smith over on our website
In a rapidly changing global landscape, managing supply chain risk is crucial. This article explores risk mitigation strategies such as diversification, reshoring, and nearshoring, and examines the impact of legislation and technology on supply chain management.
Diversification: The COVID-19 pandemic underscored the vulnerabilities associated with concentrated supply chains. Companies heavily reliant on Chinese manufacturing faced severe disruptions when China imposed strict lockdown measures. Samsung’s strategy of diversifying its smartphone production beyond China allowed it to manage these disruptions better than competitors like Apple, which depended more heavily on Chinese manufacturing. This case highlights the strategic advantage of a diversified supply chain in reducing risk and maintaining supply continuity during unexpected crises.
Reshoring and Nearshoring: Diversifying production across multiple countries helps mitigate risk but introduces complexities such as expertise, raw material availability, infrastructure, and distribution costs. Reshoring, bringing production back to the U.S., offers benefits like reduced transportation costs and quicker market response but can increase production expenses. Nearshoring, relocating production to nearby countries like Mexico or Canada, balances risk and cost.
The best approach often involves a portfolio strategy, strategically spreading production across various countries to reduce exposure to volatility and risk, similar to diversifying an investment portfolio.
Legislative Landscape: The U.S. government is increasingly focused on strengthening domestic manufacturing and enhancing supply chain resilience. Numerous bills are being proposed to incentivize reshoring and nearshoring. Some legislation aims to identify critical supply chain vulnerabilities, while others offer financial incentives such as tax breaks and funding for relocation and workforce development. However, the evolving nature of these regulations can be challenging for businesses to navigate. The effectiveness of some measures remains uncertain, and the volume of legislation can make it difficult to stay informed and compliant.
Holistic Approach: Managing supply chain risk effectively requires a comprehensive approach that goes beyond merely relocating production or distribution facilities. Key considerations include:
Neglecting these factors can undermine the benefits of diversification, reshoring, or nearshoring efforts.
Technology’s Role: Emerging technologies are increasingly crucial in managing supply chain risk. Automation, robotics, artificial intelligence, computer vision, and RFID technology are being integrated into production and distribution systems. These advancements can significantly enhance efficiency, reduce errors, and provide greater visibility and control over complex global supply chains.
Conclusion: In today’s interconnected world, managing supply chain risk demands a strategic and adaptable approach. Diversification, reshoring, and nearshoring offer valuable solutions but come with their own complexities and costs. Staying informed about legislative developments and leveraging technological advancements are vital for businesses aiming to build resilient and responsive supply chains capable of navigating future disruptions effectively.
This podcast episode dissects Walmart's enduring success, drawing on over 30 years of experience with the company. It begins by recommending Sam Walton's autobiography, Made in America, to understand Walmart's origins and principles. Walmart stands out for its agility, adapting to its massive scale with a consistent purpose: "to help people save money and live better."
Walmart's strategy today is a "people-led, tech-powered, omni-channel retailer." Each element of this strategy is explored, highlighting Walmart's investments and initiatives:
The episode concludes by emphasizing the importance of aligning investments with a company’s purpose and strategy. Walmart exemplifies this alignment by investing in people, technology, and omni-channel capabilities, contrasting with companies that lack a clear purpose or fail to invest accordingly.
This analysis offers insights for businesses of all sizes. Embracing a clear purpose, adapting strategies to market demands, and aligning investments with those strategies can drive success in today's dynamic marketplace.
I'd like to share the inspiring story of LockStop, a startup founded by Clayton Woodruff and Mike Burton, who are both alumni of the executive MBA program at the Walton College. Their venture stands as a testament to the power of innovative thinking in solving everyday problems — in this case, enhancing urban mobility by simplifying bike security.
The Problem and the Innovative Solution
Imagine riding your bike to a location without worrying about the security of your bicycle or the hassle of carrying a heavy lock. This vision is what drove Clayton and Mike to create LockStop, a company that integrates locking mechanisms directly into existing urban infrastructure, such as bike racks. This system not only eliminates the need for cyclists to carry locks but also provides enhanced security features through a connected app that alerts users to any tampering.
Their prototype, which is simple yet robust, retrofits to existing bike racks and operates via a QR code scanned by the user’s smartphone. This integration of digital technology into physical security represents a leap forward in making cycling a more appealing option for urban transportation.
Entrepreneurial Journey and Development
The inception of LockStop was during their MBA program, where the duo took a class called New Venture Development. This educational environment provided the fertile ground for their idea to germinate. Mike's personal experience of having his bike stolen as a child, combined with a moment of realization at a farmer’s market where he had forgotten his bike lock, seeded the initial concept.
Their journey from idea to prototype involved multiple iterations — from a rudimentary model built from an electric box to sophisticated designs aided by 3D printing and collaboration with a prototype lab. This iterative development process was crucial, as each stage incorporated feedback from various stakeholders, including potential users and city officials.
Community and Environmental Impact
LockStop isn’t just about preventing bike theft; it’s also about promoting a healthier, more environmentally friendly urban lifestyle. By reducing the barriers to cycling, such as theft and the inconvenience of locks, Clayton and Mike envision a future where more urban trips are made by bike, thus reducing carbon emissions and traffic congestion while promoting physical health.
Their system could serve as a model for cities looking to increase cycling rates among residents, as it promises to make biking a more secure and convenient mode of transportation. The potential for collecting data on cycling routes and habits could also aid urban planners in creating more bike-friendly infrastructures.
Challenges and Future Directions
Despite the clear benefits, introducing a new system like LockStop comes with challenges, particularly around adoption and integration into existing urban infrastructures. Convincing municipalities and other stakeholders to adopt this new system involves demonstrating not only its effectiveness but also its ease of installation and maintenance.
Looking ahead, the potential for scaling up LockStop is vast. The technology could be integrated into smart city projects and could attract interest from larger security or outdoor equipment companies looking for innovative urban solutions.
Conclusion
LockStop exemplifies how a simple yet powerful idea can evolve into a potential market disruptor, influencing urban mobility patterns and contributing to the creation of healthier cities. It also highlights the importance of practical education and entrepreneurial spirit in bringing such ideas to fruition.
For anyone passionate about innovation, urban planning, or cycling, LockStop's journey from a class project to a promising startup underscores the limitless possibilities that can emerge from addressing everyday challenges with innovative solutions.
The podcast currently has 47 episodes available.
3,127 Listeners
204,880 Listeners
960 Listeners
3,366 Listeners
1,275 Listeners
3,066 Listeners
1,466 Listeners
2,300 Listeners
13,773 Listeners
117 Listeners
3,950 Listeners
4,032 Listeners
199 Listeners
2,561 Listeners
7,272 Listeners