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, efficiently and sustainably. Here, Alan Holland, CEO of software company Keelvar, discusses how the company is helping customers optimize their supply chains and how technology can improve logistics.
Name: Alan Holland
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Title: CEO
What industries do you primarily serve?
We primarily serve fashion and apparel, food and beverage, manufacturing, automotive, transportation, chemicals and pharmaceuticals. Some of our customers include Adidas, Caterpillar, Coca-Cola, Microsoft and Primark.
Which industry do you think has the most to teach fashion about improving their supply chain logistics?
The fashion industry can learn a lot from the food and beverage industry. Both industries share common challenges like the need for adaptability, speed and cost management. However, the food and beverage industry has made significant strides in applying advanced sourcing technology to enhance agility and speed.
The food and beverage industry has developed sophisticated techniques for predicting consumer demand, like leveraging data analytics and machine learning algorithms to analyze sales patterns, market trends and consumer preferences. By understanding customer behavior and anticipating their needs, the industry can optimize production and distribution processes, which reduces waste and ensures the right products are available at the right time.
The fashion industry has been under pressure from consumers to reduce their environmental footprint and better service demand—and this model the food and beverage industry has created for demand forecasting and responsiveness to customer trends is a source of inspiration the fashion industry should strive toward.
What is one thing brands and retailers could be doing to make better use of technology to improve logistics?
Simply get started—dive into technology head first. Although implementing modern and innovative sourcing technology can be daunting, it is far easier than most people think. And platforms like Keelvar were created so companies can get started using advanced technology with minimal to no training and see greater logistics efficiency within weeks.
What are the main things brands and retailers could do (or stop doing) right now that would immediately improve logistics?
One of the most impactful steps brands and retailers can take is adapting their sourcing process to gather more comprehensive information from suppliers. By capturing detailed bid data that includes conditional offers, volume discount curves, capacity constraints and other cost-related characteristics, companies can optimize their overall supply chain by combining suppliers more effectively.
In addition to enriching supplier data, it’s crucial to capture an accurate picture of value drivers for internal stakeholders who prioritize non-cost factors in supplier offerings. By aligning with these preferences, brands and retailers can optimize their logistics operations for maximum value.
The best way brands and retailers can immediately implement these steps is by utilizing sourcing optimization. Despite the initial upfront cost, the return on investment in sourcing optimization occurs within days or weeks, leading to quick payoffs. By leveraging technology to analyze and optimize sourcing decisions, brands and retailers can promptly improve their logistics operations.
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?
Companies should always anticipate breakages, however smart sourcing relies on building robustness into your supply chain. By having credible alternatives for materials, components or parts, companies can reduce disruptions should something fail.
While this may increase upfront costs, it helps build a more sustainable, resilient and competitive marketplace for supplies, creating a stronger supply chain.
What is your company doing to make the movement of goods more sustainable?
Keelvar is continuously taking proactive steps to promote sustainable practices in the movement of goods. One of our key initiatives involves assisting our customers in capturing Scope 3 emissions data during sourcing events. By integrating sustainability considerations into their decision-making processes, our customers can optimize trade-offs between cost and emissions, making sustainability objectives attainable.
Are you optimistic about the state of supply chains in the next few years?
Yes. We are witnessing a rapid pace of transformation in supply chains right now, and it’s driven by a growing understanding of risk management, cost-sustainability balance and the importance of building trust with carriers and suppliers. These developments enhance the robustness and resilience of supply chains, so I’m optimistic that the future is bright.
