Chain Reaction is Sourcing Journal’s discussion series with industry executives to get their take on today’s logistics challenges and learn about ways their company is working to keep the flow of goods moving. Here, Joe Barth, chief logistics officer at Cart.com, discusses how the provider of e-commerce and logistics solutions is using advanced technology, like artificial intelligence (AI), to streamline supply chain processes while reducing costs.
Name: Joe Barth
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Title: Chief Logistics Officer
Company: Cart.com
What industries do you primarily serve?
Cart.com is a unified commerce technology and logistics provider that supports more than 6,000 B2C, D2C and B2B companies through our proprietary channel and order management software, nationwide omnichannel fulfillment network and more.
We support multiple apparel, footwear and health and beauty brands in the retail sector. We also have a sizable B2B and public sector business, primarily concentrated in the medical device and healthcare space.
What are the main things brands and retailers could do right now that would immediately improve logistics?
Inventory and order management is a critical piece of the supply chain. At Cart.com, we’ve seen that connecting marketing and order data can significantly improve traditional forecasting [the process of estimating future demand for products or services within the logistics sector]. Our model takes a look at online and offline campaign metrics, social media trends and ad spend to calculate the direct impact of marketing efforts on demand spikes and customer purchasing patterns—down to the SKU level. We then combine that with historical order data to forecast future demand, which can better predict where you might have excess inventory or a stock-out issue.
Overall, this helps retailers increase advertising efficiency while also assisting 3PLs have better insights for labor demand planning. This can help drive cost savings on both the pre-purchase and post-purchase sides of the business.
What is the one thing brands and retailers could be doing to make better use of technology to improve logistics?
Inventory and channel orchestration challenges have cost enterprises billions and slowed growth rates in recent years. A unified order management system is key to winning in the omnichannel world, and AI is the most powerful tool for navigating the current environment successfully—as long as it’s connected across every touchpoint in a retailer’s commerce value chain.
For our partners who are leveraging our end-to-end solution, we are driving forecasting improvements of up to 55 percent, and that, in turn, is ensuring we have the right inventory and staffing to deliver flawless fulfillment through the last mile.
When it comes to supply chain logistics challenges, there are things companies can fix, and things that are beyond their control. How can the former help the latter?
By connecting upstream and downstream data that is typically outside the purview of the average 3PL or logistics provider, we can better forecast expected impacts to operations, regardless of whether they are in our immediate control.
What areas of logistics aren’t receiving the industry attention they deserve?
Inventory management and returns continue to be areas of opportunity for 3PLs and logistics providers to deliver significant productivity improvements and drive cost efficiencies.
When it comes to creating efficiencies, there are quick wins and longer plays. What are a few things your company is doing to help its partners succeed on both fronts?
The answer to this depends on the partner and where they are in terms of their technology and logistics maturity.
In the shorter to medium term, making sure you are working with a partner whose offering can not only meet your needs today, but also grow and evolve as your business grows is important. In terms of cost efficiency, some of the lower-hanging fruit tend to be around scale and your 3PL’s ability to monetize that on your behalf. But it’s also important for the retailer to understand what they actually need to achieve their customer promise. For example, how important is speed? How important is automation? What value-added services are needed?
Are you optimistic about the state of supply chains in the next few years?
Supply chain challenges, predicted or not, will always be a factor across industries. But, I think what we saw during Covid was how important logistics is—not only for the end customer, but the overall economy. Whether or not a customer is buying online or in-store, logistics is a critical component of getting the goods a customer wants from the manufacturing floor to the point of delivery.
Overall, I’m excited about the continued growth and investment in the space and look forward to how technology—whether robotics or software—will help us improve the quality of service and ultimately deliver new innovative solutions.
