DC Velocity - July 2013

thoughtleaders

verting machines at no cost, as long as the customer buys its corrugate from Packsize. How did that model come about? A Well, it was born out of several years of no success. While I was in Europe trying to sell the packaging machines, it was not working. It was just too much for companies to make the initial investment. As I was driving on the autobahn one day, I had an epiphany, and this model was born. I concluded the machines were not yet saleable, but I believed in the product. So, we would have to give away the machines. I called the office and told them this, and they laughed at me. Then, when we opened the office in the United States, we tried this model and it worked.

cantly since that customer receives a right-sized package.

QWhat are the biggest challenges you and the supply chain profession face today? A For us, the biggest challenge is that not everyone adopts a technology at the same time. Usually, to get mass adoption, you need 15 percent or so of early adopters. We need to be patient to work through the early adoption phase.

On a grander scale, energy is the biggest challenge. Moving products will always require energy, but we need to be able to switch to new forms of energy.

QWhat are the advantages of this model?

A The benefit of this model is that it makes it easy to become a customer of on-demand packaging.

Customers get the benefit of the machines without having to justify the upfront capital investment. It also provides ongoing savings on corrugated and fill materials, since less volume is used. Other benefits are reduced product damage and some labor savings. It also reduces shipping volumes by up to 40 percent, which translates into transportation savings. And the end customer’s experience improves signifi-

QWhat has been the most satisfying part of your career? A The single most satisfying piece is that we have a product that meets sustainability objectives. Staples, for instance, is saving some 122,000 trees a year with on-demand packaging. That is less pollution, less bio-mass— basically, we are able to keep a small forest intact. We have also helped companies cut costs, such as in manufacturing, which has helped to save jobs here in the U.S. And lastly, we have a team at Packsize that is passionate about what we do and the impact we can make. It is exciting to build a business that can make money while doing the right thing.

Robert Nathan

At 31, Robert Nathan is a supply chain “tweener.” He is old enough to have paid his dues and in the process gain respect for the pioneering efforts of the “ post-deregula-tion” generation. Yet he is young enough to grasp what today’s logistics marketplace wants and needs, and how those demands will evolve over the next five to 10 years.

As those who cut their teeth in the 1980s begin to retire, the leadership baton will be passed to people like Nathan, founder and CEO of Chicago-based third-party logistics service provider Load Delivered Logistics LLC. He says the industry is only just starting to recognize the power of the IT tools available to it and predicts that as use of these tools becomes more widespread, the industry will change faster than ever before.

QHow did you get into the business?

A I began delivering fasteners and bolts at 16. I also pro- vided logistical support during Hurricane Katrina in 2005. Doing both, I observed many supply chain inefficiencies and a lack of technological innovation. It was the early experience of being on the front lines that led me to believe there was an opportunity to make a significant impact on the global logistics community. That was behind our launch

QThere’s been much talk of a “genera- tion drain” where there aren’t enough people your age capable of stepping into leadership roles currently filled by those nearing retirement. How does the industry generate interest among folks your age?

A I have great respect for the contributions that previous generations have made in our space. That said, I think my generation, Gen Y, is excited to step into leadership roles. Technology and education are providing the next generation of logisticians with the skills necessary to support the way business is conducted today.

I believe the leaders of tomorrow exist in many organizations; however, they need to be cultivated and given the freedom to innovate, grow, and achieve upward mobility. I am a firm believer in organic growth and place a strong emphasis on “intrapreneurship”—giving young leaders the opportunity and support to develop an idea that improves overall service or increases operational leverage for our organization. This has allowed several of our people to grow into upper management roles before the age of 30.