DTC Podcast
Bonus: How Cavela Uses AI to Cut Sourcing Costs by 40%—Even Amid Rising Tariffs
Apr 9, 2025
Anthony Sardain, Founder of Cavela, harnesses AI to revolutionize sourcing for DTC brands, aiming to cut costs dramatically. He discusses how Cavela's AI agents streamline supplier discovery and can save brands up to 40% even amid rising tariffs. Sardain highlights the importance of diversifying supply chains and how AI is poised to democratize product creation. The conversation touches on the future of sourcing, from automation to the challenges of e-commerce, showcasing the transformative potential of AI in the industry.
35:09
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Quick takeaways
- Cavela's AI agents streamline the sourcing process, enabling brands to save up to 95% of traditional procurement workload and reduce costs significantly.
- Diverse supply chain strategies are essential for brands to navigate rising tariffs and optimize production costs effectively in an unpredictable market.
Deep dives
Diversification of Supply Chains
Brands are encouraged to diversify their supply chains as a strategy to combat rising production costs. For example, a workwear brand that had relied on Chinese suppliers for years found a new supplier able to produce the same high-quality products at a significantly lower cost. Utilizing AI agents, the brand received competitive quotes from a wide array of suppliers, leading to decreased costs amidst increasing tariffs. The result was that the brand’s production costs became more favorable compared to six months prior, showcasing the financial benefits of exploring diverse sourcing options.
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