474: Leverage Data-Driven Optimization to Mitigate Tariffs, with Reveel

Let's Talk Supply Chain

Michael Falls of Reveel & Jennifer Mitchell of GOAT Group talk about tariffs, network design, SKU analysis, carrier negotiation and decision intelligence.

IN THIS EPISODE WE DISCUSS:

[02.22] An introduction to Michael, his background, and what excites him about supply chain.

“Work smarter, not harder – that’s what I’m passionate about. There’s great technology out there that shippers can leverage, but so many people are still working out of spreadsheets. That hasn’t changed as rapidly in our industry as it has in others.”

[03.49] An overview of Reveel, who they are, and what they do.

“Our CEO always says that modeling is the hill we’re going to die on. We have a lot of tools in our repertoire that are different to a lot of the other analytics tools on the market.”

[04.36] An introduction to Jennifer, her background, and her company GOAT Group.

[05.58] An overview of the current tariff landscape, and how businesses are approaching adaptability and cost impacts.

“We’re now in a period where shippers have a new normal, which is: we don’t know what the future will hold, but we know we’re going to have to adapt to change.”

“Now there’s a very public conversation around who absorbs the cost of tariffs. Tariffs are here to stay. The question is: are consumers going to pay for them, or are companies going to absorb the cost and use that as a competitive advantage?”

[07.55] How tariffs have impacted GOAT Group, and why increased tariffs for China are driving up apparel costs and forcing companies to rethink their manufacturing locations.

[09.07] From cost volatility to the impact of the unknown, the biggest negative impacts, driven by the current tariff landscape, for shippers.

“It’s ever-changing. The minute you make a decision to do something, it changes and you’re back to square one.”

[11.34] Network design and optimization, and why shippers need intelligence, agility, and a strategic command of their shipping network to manage current volatility.

[14.28] How network design and optimization can help companies to design more efficient distribution strategies, what those strategies might look like, and the positive impact they can have for shippers.

[15.16] How SKU profitability analysis can help businesses identify problem products and make more informed decisions on their portfolio.

“There’s much more that you can do with SKU level insights than just explore profitability.”

[17.13] Why contract negotiations have changed, and how Reveel can help to simulate ‘what-if’ scenarios and compare carrier performance so shippers can push for reductions or pivot.

“You can’t manage what you don’t measure. So we empower our customers to measure all the KPIs that are going to impact their transportation spend.”

“The duopoly is over!.. Carrier contract negotiation is becoming an ongoing activity.”

[20.07] The importance of flexibility and expanding carrier options to reduce dependency, lower cost, and improve customer experience.

“Flexibility is crucial… Customers expect more from delivery, they expect it faster, more personalized. The bigger carriers are very rigid in what they do and a lot of these emerging carriers have more flexibility, they’re more customizable to your company.”

[21.23] Why, when tariffs are out of our control, intelligence is the best defence, how companies can use intelligence to stay competitive, and why parcel spend management can be an organizations competitive advantage in an unpredictable global market.

“There’s so much noise. Carrier billing data has hundreds of elements, it’s not normalized… Having a shipping intelligence platform helps arm you with the most important insights at a glance.”

“A lot of shippers are just resigned to this belief that the carriers are going to do what the carriers are going to do, and we have to sit back and take it… But I would say that any shipper has between 5-30% of spend that’s available to be eliminated.”

[23.47] The ideal client for Reveel, and the types of clients they’re currently onboarding most.

[24.41] GOAT group’s experience with onboarding and implementation with Reveel.

[25.52] The biggest challenges GOAT Group were experiencing, why they chose to work with Reveel, and the benefits they see from their ongoing partnership.

[27.38] In a constantly evolving market, what shippers might expect over the next few months.

“The only thing we know for sure is that more change is coming!.. But the shippers that have the best data, the best data-driven insights, and the best technology are ultimately the ones that are going to come out ahead.”

RESOURCES AND LINKS MENTIONED:

Head over to Reveel’s website now to find out more and discover how they could help you too. You can also connect with Reveel and keep up to date with the latest over on LinkedIn, Facebook or Twitter, or you can connect with Michael or Jennifer on LinkedIn.

If you enjoyed this episode and want to hear more from Reveel, check out 453: Driving Supply Chain Innovation with Reveel and Deposco or 357: Leverage the Power of Shipping Intelligence, with Reveel.