DTC POD: How The Best Brands Are Built
#328 - The Mastermind Behind Seed’s Supply Chain & How to Design DTC Ops for Hypergrowth
Episode guests
Podcast summary created with Snipd AI
Quick takeaways
- Iterative supply chain management is crucial for startups to adapt and refine processes.
- Building strong relationships with suppliers and leveraging technology are vital for operational efficiency.
- Balancing cost optimization and product quality is key for sustainable growth in supply chains.
- Engaging experts to navigate importing challenges and planning buffer time is essential.
- Utilizing advanced tools for operational efficiency while maintaining human-centered strategic decision-making is recommended.
Deep dives
Launching D2C Pod Community Slack
A community Slack exclusively for D2C founders and operators has been launched to connect, share ideas, and support one another. With the aim to engage the best minds in consumer, the community is open to applications once it reaches 150 members.
Introduction to Indispensable Sales Tools
The importance of utilizing effective selling tools, exemplified by the newly launched Sales Hub from HubSpot, is highlighted for boosting revenue, speeding up growth, and improving pipeline management. The Sales Hub features intuitive, customizable reporting powered by AI to streamline processes and enhance team productivity.
John Morgan's Career Journey
John Morgan, founder of pelagic and an experienced operations professional, shares his career evolution from being the VP of ops at Seed Health to working at SpaceX. His journey emphasizes pivotal learning experiences in supply chain management and operations, contributing to his expertise in building successful businesses.
Insights on Supply Chain and Operational Challenges
John Morgan discusses operational challenges faced at Seed Health, emphasizing the iterative nature of supply chain management and the importance of proactive decision-making in scaling operations effectively. The significance of building strong relationships with suppliers, embracing iterative improvements, and leveraging technology for streamlined operational efficiency is highlighted.
Navigating Supply Chain Complexity
Advice is provided for founders on setting up a basic supply chain from manufacturing to customer delivery, emphasizing the intricate nature of managing multiple aspects like packaging, raw materials, manufacturing, quality systems, and distribution channels. The key recommendation is to approach supply chain operations as a customizable process tailored to the unique needs of each business.
Founders' Approach to Financial Optimization
Importance of balancing cost optimization and product quality in supply chain decisions is emphasized to achieve profitability and sustainable growth. The discussion focuses on strategically managing COGS, leveraging data-driven insights, and prioritizing long-term customer value over immediate cost reductions for overall business success.
Navigating Importing Challenges
Insights on importing products, especially from China, underscore the importance of engaging experts to navigate customs regulations and logistics efficiently. The significance of thorough planning, relying on reputable partners, and allowing buffer time for unexpected delays in the importing process is highlighted.
Avoiding Common Supply Chain Mistakes
Common mistakes in supply chain setup are addressed, emphasizing the need to explore diversified options, streamline data management, and adopt technologies like dashboards for operational transparency. Proactive decision-making, adaptive supplier sourcing, and a focus on operational efficiency are recommended to avoid potential challenges.
Embracing Technological Solutions for Operations
The utilization of advanced tools and technologies for operational efficiency is discussed, focusing on optimizing workflows, inventory management, and forecasting through AI-driven solutions. The emphasis is on leveraging streamlined operational software while fostering human-centered strategic decision-making in supply chain operations.
Connect with John Morgan
To engage with John Morgan and pelagic for supply chain and operational expertise, visit the pelagic.co LinkedIn page or reach out via email at john.pelagic.co. The invitation is extended to connect for support and insights on navigating complex supply chain challenges.
John Morgan is the founder of Pelagic, a unique agency of top tier operators that helps brands tackle supply chain, logistics & operations. Prior to starting Pelagic, he served as VP of Ops at Seed Health where he built the infrastructure behind one of the fastest growing modern health brands. Before getting into DTC he worked on the Falcon 9 rocket team at SpaceX. His expertise spans across optimizing supply chains for efficiency, sustainability, and growth, especially for early-stage companies.
In this episode of DTC Pod, John talks about the iterative nature of supply chain management and the need for startups to continuously adapt and refine their processes. He highlights the use of technology to streamline operations, the significance of understanding the complexities of global supply chains, especially under the strain of events like the COVID-19 pandemic, and shares a framework for setting up supply chains with a strong foundation in operational details and supplier partnerships.
Interact with other DTC experts and access our monthly fireside chats with industry leaders on DTC Pod Slack.
On this episode of DTC Pod, we cover:
1. Iterative Supply Chain Management
2. Third-Party Logistics Partnerships
3. Fractional Operations and Technology
4. Profitability and Cost Optimization
6. Impact of COVID-19 on Supply Chain
7. Future Tech in Operations
8. Building and Scaling Supply Chains
Timestamps
02:09 John Morgan’s background and experience working on SpaceX
06:39 Leading the operations at Seed Health
09:37 The effect of COVID on global manufacturing, supply chain, and operations
11:46 Pelagic as a supply chain service provider
13:15 How to get supply chain right from the get-go; mistakes to avoid
18:56 Adapting supply chains to growth and change
23:41 Hiring for supply chain, considerations for early-stage founders
26:35 Optimizing for profits vs quality, financial optimization of supply chains
30:26 What founders need to know before importing
33:55 Common mistakes to avoid in supply chain management
Show notes powered by Castmagic
Past guests & brands on DTC Pod include Gilt, PopSugar, Glossier, MadeIN, Prose, Bala, P.volve, Ritual, Bite, Oura, Levels, General Mills, Mid Day Squares, Prose, Arrae, Olipop, Ghia, Rosaluna, Form, Uncle Studios & many more.
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• #223 Lauren Kleinman: The PR & Affiliate Marketing Playbook
• #243 Kian Golzari - Source & Develop Products Like The World's Best Brands
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Projects the DTC Pod team is working on:
DTCetc - all our favorite brands on the internet
Olivea - the extra virgin olive oil & hydroxytyrosol supplement
Castmagic - AI Workspace for Content
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John Morgan - Founder of Pelagic
Blaine Bolus - Co-Founder of Castmagic
Ramon Berrios - Co-Founder of Castmagic
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