DTC POD #328 - The Mastermind Behind Seed’s Supply Chain & How to Design DTC Ops for Hypergrowth

DTC Pod Linkedin
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@John Morgan, with his rich background from @SpaceX to @Seed Health, brings a treasure trove of insights to @DTC POD. John sits down with @blane and unpacks the ever-evolving world of supply chains, stressing the need for agility and smart financial decision-making, especially in subscription businesses. From saving a client 50% on initial costs through savvy negotiation to tackling global supply chain strains amid Covid-19, John shares his wisdom on navigating operational challenges with a focus on profitability and sustainability. Learn the critical steps for e-commerce founders on setting up a solid supply chain framework and why relationships with manufacturers can make or break your business. John also gives a sneak peek into the future of operations with anticipated AI advances, as well as his personal experience transitioning from rockets to probiotics. Tune in to hear John's expert advice on scaling your brand's operations efficiently. Full episode here: [Spotify Link] #dtcpod #supplychainmanagement #ecommerce #scaleup #operations #cogs #sustainability #techadvancements #AI

1️⃣ One Sentence Summary
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Supply chain insights for founders with John Morgan on DTC POD.

💼 LinkedIN - 6 Reasons Post
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Overengineering your startup's supply chain can sink your business before it sets sail. Here are the top six reasons why simplifying your supply chain is a must: 1. Complexity kills speed. In the startup world, speed is everything. An overly complex supply chain can slow you down, making it harder to respond to market changes and customer demands. Keeping it simple means you can move quickly and stay nimble. 2. Costs will spiral. Complex supply chains come with hidden costs at every turn—from increased management overhead to more expensive logistics. Simplification helps keep your costs transparent and under control, preserving your crucial margins. 3. It hampers scalability. Scalability should be a built-in feature of your operations, not an afterthought. A convoluted supply chain can become a choke point as you grow, creating more problems than it solves. Simplify to ensure your supply chain can grow as fast as your business. 4. It distracts from your core business. Your energy and resources should be focused on developing your product and market, not managing a labyrinth of suppliers and logistics. A straightforward supply chain frees you to focus on what really matters—your customers and your product. 5. It weakens relationships. Strong relationships are the backbone of any effective supplyhip chain. When things are too complex, it's harder to develop these relationships as you're constantly bogged down in details instead of fostering partnerships. 6. Data becomes daunting. Data-driven decisions are key to startup success. An overly complex supply chain generates too much data noise, making it difficult to extract actionable insights. Simplification helps keep your data manageable and useful. TAKEAWAY: Keep your supply chain straightforward to maintain speed and agility. Monitor costs more effectively with a simplified system. Ensure your supply chain is designed to scale from the start. Concentrate on your core business, not on supply chain complexities. Build stronger supplier relationships with a streamlined supply chain. Make smarter, data-driven decisions with a supply chain you can actually understand. In sum, simplifying is just smart supply chain management—keep it lean and flexible to support your startup's growth and success.

Interview Breakdown
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In this episode of DTC POD, John Morgan, founder of Pelagic, lays out the playbook for navigating the turbulent waters of supply chain management. He draws from his deep expertise, from revolutionizing operations at SpaceX to overcoming challenges at Seed Health, to give listeners an insider's guide to scaling their brands. Today, we'll cover: - The significance of reassessing supply chains amidst market fluctuations and how to adapt for growth. - Deciding when to partner with various types of 3PLs based on your business’s revenue and potential. - Morgan's offerings from advisory roles to full operations for brands on the fast track. - Emphasizing cost optimization and the integral role of cogs in shaping profitability and expansion. - Strategies for e-commerce founders to balance margins with long-term customer value and operational efficiency.

🔑 7 Key Themes
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1. Importance of iterative supply chain management. 2. Engaging with third-party logistics strategically. 3. Utilizing fractional operations and technology tools. 4. Prioritizing profitability and cost optimization. 5. Emphasizing founders' sustainability considerations. 6. Scrutiny of margins at seed stage. 7. Building fundamental supply chain frameworks.

💬 Keywords
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supply chain management, iterative supply chains, third-party logistics, 3PL partners, revenue category, growth potential, advisory services, project-based engagements, turnkey operations, scaling brands, fractional operations, technology tools, profit optimization, cost of goods sold, sustainability in supply chains, data-driven decisions, e-commerce margins, seed stage startups, contact John Morgan, Pelagic company, Blaine Bolus, D2C pod community, HubSpot sales hub, founder community, SpaceX, Seed Health, import delays, operational dashboards, supply and demand, Covid-19 impact on supply chains.

🎞️ Clipfinder: Quotes, Hooks, & Timestamps
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John Morgan 00:03:48 00:04:20

Advancements in Space Technology: "I found this niche skillset of working with engineers to outsource carbon fiber assemblies or sub components of the actual structure of the rocket across Falcon nine and dragon. So imagine just very complicated designs and some of the most brilliant engineers in the world constantly iterating on and trying to get Falcon nine fully reusable as a product or just like, to work and, like, fly."

John Morgan 00:08:25 00:08:48

Challenges of Growing a Probiotic Brand: "For those of you who run supply chain, and especially for being in charge of 24 unique, clinically kind of studied strains from around the world, keeping those bugs away from heat and humidity and from activating before they actually got to the right part of the customer's digestive system was like my entire challenge."

John Morgan 00:11:30 00:11:46

Challenges of Supply Continuity During Covid-19: "Getting through Covid and keeping all of our customers supplied and happy and continuing to grow very fast as a business is something I'm very proud of today, but also something I saw as that something incredibly difficult to navigate."

John Morgan 00:15:35 00:16:19

Building Relationships in Supply Chain Management: "And so another really, like, fundamental lesson I would tell everyone is like, go see them in person. Like, if those manufacturers or people are going to be, like, relevant or important to your business, go treat them like humans. Go actually ask about their lives. Get to know who they are, because things are going to go wrong or break, and you're going to need their help to unbreak it. And honestly, one of the most full circle moments is my most trusted co packer, the team or business that put the capsules into our very weird, long, narrow necked pouches that are the refill pouches of seed."

John Morgan 00:19:05 00:19:38

Strategic Supply Chain Adaptation: "Something that's been really cool to witness at Pelagic, you go from I'm embedded in the high complexity level of the seed operation to now getting to see tens to a couple hundred different operations and how they're built is that you can actually start to map almost these like very distinctive volume or complexity or growth moments and be very honest with your supply chain and your, and the rest of the brand builders on like when it's time to shift or when it's time to add redundancy and another like piece of your supply chain into your system."

John Morgan 00:24:19 00:25:13

Evolving Workforce Dynamics in Tech: "And so what I tell founders is like, at least let us audit and tell you very transparently, like you, what level of hire you need to run these operations. So we could save you from hiring a COO and you just kind with a great ops manager who can cover a lot of the basics with really fantastic tooling and a starting operational infrastructure on top of that, I am blown away by the AI age that we are now living in and its implications and the power of some of those tools in the math. Fundamentally that is supply chain. And so our fractional operators are starting to be, on a cost basis level, actually more competitive than you would pay in terms of, let's say a small amount of equity and a salary range for that full time operator, which is what I overall, I see the most capable talent in the venture ecosystem moving into this fractional model more and more because there's so many tools out there to like market yourself and become accessible. It's a different lifestyle."

John Morgan 00:28:46 00:29:19

Efficiency in Business Scaling Strategy: "And people, I think, make the mistake of sometimes saying like, oh, cogs will get better as we scale with climbing volume of orders, we're going to get all the cost savings we need. And I would just argue that you're leaving so much opportunity on the table there, like actually leveraging and negotiating those volumes and shopping them out to many other very capable, high trust, super experienced manufacturing partners, is what you should be doing at many different steps along that build and scale journey."

John Morgan 00:31:53 00:32:12

Effective Strategies in Supply Chain Management: "I think you should always lean on experts who understand exactly what import of codes you should be using or how to keep optimizing those solutions. I would maybe then, like, the best kind of guidance I can give is like, it's not worth it to do it yourself and it'll always go slower than you expect."

John Morgan 00:34:12 00:34:42

Evaluating Outsourcing Partners for Business Growth: "I think one of the highest friction, or most fear causing changes to make, if not your manufacturer, is your three pl or your outsourced manufacturing partner. There are so, so many options out in the market, and they are all, I don't know why, but they're very complicated. They're priced very differently. They have all different competencies, or ways they were created, or ways they run, or advantages or disadvantages. And so we find ourselves helping a lot of people just feel like they can actually switch to a new distribution warehouse and partner, and it's usually only once they're creating acutely awful problems for their customers that they consider making that switch."

John Morgan 00:35:03 00:35:36

The Power of Operational Dashboards in Business: "The other one is that was hugely powerful, like, impactful at seed, was this idea of building a really powerful dashboard that works for you, that consolidates all of your purchasing, your cogs, your inventory, and your supply data, and really taking the time to define those inputs and trust the supply side of your organization just as much as you do your demand... That is a very, very powerful tool that we call Ops hub, that we encourage and build for clients very frequently, that I would encourage people to do sooner rather than later, before you start having to untangle a lot of historical spend and a giant mess that your future acquisition partners don't love seeing and has to get cleaned up eventually."

📚 Timestamped overview
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00:00 Learned from one-unit classes, got MBA.

03:40 Company rapidly grew, taking on major responsibilities.

07:45 Changed supply chain, maintained brand, innovative technology.

13:15 Unique supply chains need detailed framework assessment.

17:10 Importance of supply chain planning for scalability.

18:56 Adapt supply chains to growth and change.

23:41 Advocates for outsourcing supply chain operations & technology.

27:41 Focus on quality, timeliness, and financial strategy.

31:24 Import compliance advice: rely on expert help.

35:03 Create powerful, efficient Ops hub for organization.

37:18 Multiple partnerships, operations central, AI-enabled workflow future.

❇️ Key topics and bullets
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Episode #328 - John Morgan on DTC POD I. Introduction of Guest and Topics - Blaine Bolus introduces John Morgan, founder of Pelagic. - Overview of John Morgan's professional background, including tenure at SpaceX and Seed Health. - Announcement of John Morgan's appearance to discuss supply chain management, cost optimization, and leveraging technology. II. Importance of Iterative Supply Chains - John Morgan emphasizes the need for ongoing assessment and adjustment of supply chains. - Discussion on complexity, volume, and identifying growth opportunities in the supply chain. III. Engagement with 3PL Partners - Advice on when to engage with different third-party logistics based on revenue and potential for growth. - Consideration of factors like financials in relation to product quality and LTV. IV. Support for Early-Stage Founders - Morgan offers options such as advisory services and project-based engagements. - Introduction of turnkey operations tailored for rapidly scaling brands. V. Emphasis on Profitability and COGs - The discussion focuses on cost optimization and the significance of cost of goods sold. - Strategies for leveraging and negotiating volumes to reduce customer experience costs. VI. Founders' Considerations and Data-Driven Decisions - Sustainability considerations in managing supply chains. - The use of a data-driven approach for strategic supply chain management. VII. Scrutiny of Margins in the E-commerce World - The intensive focus on margins by founders, especially in seed-stage ventures. - The importance of maintaining margins while managing customer acquisition costs. VIII. Methods to Connect with John Morgan - John Morgan is reachable through LinkedIn, Pelagic, and email. IX. Call to Action by Blaine Bolus - Encouragement to rate and review the DTC POD. - Instructions to follow, subscribe, and use resources from dtcpod.com. X. Launch of Slack Community - Promoting the new Slack community for founders and operators. - Announcement about the waitlist and application process for community membership. XI. Promotion of HubSpot’s "All New Sales Hub" - Benefits of using HubSpot for increasing revenue and fostering growth. XII. John Morgan's Experience with Supply Chains and Operations - Retrospective on Morgan's work on the Falcon nine rocket at SpaceX. - Challenges faced while managing the supply chain at Seed Health, including manufacturing obstacles. XIII. Challenge of Financial Decisions in Supply Chain Management - Advice on negotiating volumes to decrease costs. - Potential pitfalls in importing products into the U.S. due to tariffs and political issues. XIV. Founders' Common Mistakes in Setting Up Supply Chains - Reluctance to explore different supply solutions. - Neglect of establishing a comprehensive dashboard to track purchasing and inventory data. XV. Recommendation for Supply Chain Tools and Technologies - Adoption of tools like Ops hub and SNOP for data organization. - Prospects of using AI-enabled workflows for operational inefficiencies. XVI. The Pandemic's Impact on Global Supply Chains - Morgan shares experiences of supply chain navigation during Covid-19. - Addressing the high demand and import challenges for medical equipment and health products. XVII. Introduction of Pelagic - Launch of a service focused on assisting founders and early stage employees with supply chain woes. XVIII. Core Fundamentals for Brand Launches - Blaine Bolus inquires about essential elements for founders setting up supply chains. - John Morgan outlines a basic framework for supply chain operations and the value of solid supplier relationships. XIX. Concluding Insights - Emphasis on the iterative process in building and scaling a supply chain. - Overarching theme of maintaining product marketability amidst operational challenges.

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Hey, I'm Blaine Bolus, your host at DTC POD, where today we've dived deep into the world of supply chains with the incredible John Morgan. John's insights from SpaceX to Seed Health show us how supply chains are ever-evolving organisms that need constant tuning—be it for coping with complexity, driving growth, or optimizing costs. He shared golden nuggets on when to leverage 3PL partners and the power of tech to keep costs down without sacrificing quality. For fresh founders, John emphasized the value of plotting your own financial course and the importance of a solid dashboard to steer your operations. Don't miss out on our full conversation for tactics on scaling operations while keeping a sharp eye on margins. Tune into episode #328 of DTC POD, and remember to push your limits every day in the fast-paced e-commerce world. Join our conversation, hop onto dtcpod.com, and connect with fellow founders. Catch the full story—we've got your back on the journey to scale and success!

👩‍💻 LinkedIn post
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🚀 **New Episode Alert** 🎙️ - DTC POD #328 - *Special Guest: John Morgan* In this thrilling podcast episode, John Morgan, a titan in the world of operations and supply chains, offers a treasure trove of wisdom and actionable insights. Dive deep with us as we discuss the volatile nature of supply chains and why constant agility is your key to unlocking growth. 🔑 **Highlights from the episode:** - *Iterative Excellence*: John sheds light on the need to regularly evaluate and adjust your supply chain to stay ahead of the game. - *Strategic Partnership Timing*: Learn when to engage with 3PL partners to optimize your growth and manage scales of operation efficiently. - *Tech Empowerment*: Embrace technology tools and fractional supply chain operations to stay nimble and competitive in today's marketplace. ⚡ **3 Key Takeaways:** - **Constant Calibration**: Stick to a dynamic supply chain strategy that flexes with market changes and complexity levels. - **Profitability Focus**: Keep a watchful eye on COGS to ensure your margins are fueling your growth journey. - **Data-Driven Decisions**: Leverage data analytics for sustainable practices and informed scaling strategies. John's background, from spearheading projects on the Falcon nine at SpaceX to innovating at Seed Health, primes listeners for an epic narrative of navigating through some of the most intense operational challenges out there. 🎧 Listen to the full conversation now for a masterclass in supply chain resilience and strategy tailored for founders and D2C enthusiasts. 🔗 Don't forget to subscribe and check out the show notes for more resources! #DTCPOD #SupplyChainManagement #EcommerceSuccess #JohnMorgan #GrowthStrategy #OperationalExcellence #DTCCommunity

✏️ Custom Newsletter
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Subject: Unpack the Secrets of Supply Chain Mastery with John Morgan on DTC POD 🚀 Hey there! If you've ever wondered what rocket science and probiotics have in common with the world of direct-to-consumer businesses, you're in for a treat with our latest DTC POD episode! **Episode #328 - John Morgan: A Guided Journey Through Supply Chain Optimization** In this episode, Blaine Bolus sits down with supply chain sage, John Morgan, who brings his interstellar experience from SpaceX to the ever-evolving landscape of DTC business operations. John dives deep into the nuts and bolts of supply chains and how to keep them running like a well-oiled machine. **Here are 5 key takeaways you'll glean from tuning in:** 1. **Iterative Magic**: Learn why constantly reassessing your supply chain is essential for handling complexity and seizing growth opportunities. 2. **Smart Partnerships**: Discover when to engage with various 3PL partners to maximize your revenue and growth potential. 3. **The Cost-Optimizing Lens**: John reveals how focusing on COGS can significantly amplify your margins and pave the way for lasting growth. 4. **Tech to the Rescue**: Get the lowdown on how fractional supply chain operations and the latest technology can be game changers for your brand. 5. **Foundational Fundamentals**: Grasp the core principles to set up a robust supply chain, from understanding details to nurturing supplier relationships. **Fun Fact Alert 🎉**: Did you know John Morgan once tackled the chaos of the cosmos while working on the Falcon nine rocket? Talk about stellar problem-solving skills! **Wrap-Up & Gratitude** Before we sign off, don't forget that seeking a supply chain sherpa could be just what your brand needs—and John's insights are pure gold. Plus, if you're jazzed about connecting with other founders and operators, check out the DTC Slack community! **Call to Action** - 🤝 Join the DTC Slack community: [Insert Link] - 🎧 Listen to the full episode: [Insert Link] - 🌟 Leave us a review on [Platform Name]: [Insert Link] - 💌 Stay in the loop: Subscribe to the newsletter & follow us on socials! Thanks for supporting the DTC community and happy listening! Let's continue to crush it in the commerce world, one episode at a time! Cheers, The DTC POD Team 🚀

🐦 Business Lesson Tweet Thread
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1/ John Morgan's story is a testament to the relentless nature of supply chain management. From SpaceX's rockets to the delicate world of probiotics at Seed Health, mastering the depths of operations is an art. 2/ In this high-stakes game, Morgan reveals that constant adaptation is key. The volume, complexity, and growth opportunities keep the supply chain dance ever evolving. 3/ For founders, understanding when to call in 3PL partners shapes the trajectory of growth. Morgan's insight: revenue isn't just a number; it's a guide to scaling your operations intelligently. 4/ Early decisions spell the future of your brand. Morgan spotlights the special stew of advising, tackling projects, or turning keys on operations—each a lifeline for businesses at different growth stages. 5/ Tools and tech are allies in the mission for efficiency. Morgan vouches for tech-enhanced operations, paving the way for strategy over slog, foresight over firefighting. 6/ Margins are more than figures in a ledger; they're the pillars of your business temple. Morgan stresses this, especially for e-commerce warriors at the seed stage where every penny counts. 7/ Challenge is the crucible for innovation. SpaceX's supply chain hurdles and Seed's manufacturing maze gave rise to breakthroughs—rigor meets revolution. 8/ What's a plan without a pitfall? Founders often stick too close to their comfort zone, but Morgan urges the bold step of weaving a dashboard that captures the full spread of supply metrics. 9/ At Pelagic, Morgan harnesses these lessons to steer founders through the stormy seas of supply chain management—proving that even in crisis, clarity in operations is within reach. 10/ The core pillar? Know your terrain before you invite others to tread it for you. Founders must grasp the guts of their supply chain to scale with certainty. John Morgan's journey distills into one clear message: In the world of supply chains, vigilance, versatility, and vision are the virtues that vault your venture to victory.

🎓 Lessons Learned
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1. Supply Chain Dynamics Assess, adjust supply chains continually for growth, complexity control. 2. Partner Timing Choose 3PL partners strategically based on revenue, growth. 3. Flexible Services Tailored services for various stages: advisory, project-based, turnkey. 4. Tech & Operations Use technology, fractional operations to optimize supply chains. 5. Profitability Focus Prioritize cost of goods sold for improved margins. 6. Sustainable Decisions Founders must consider sustainability, data in supply chains. 7. Margin Scrutiny Seed-stage, e-commerce founders intensely review product margins. 8. Negotiating Costs Leverage volume for cost reduction throughout customer journey. 9. Avoiding Mistakes Don’t fear alternatives; crucial to use powerful dashboards. 10. Core Fundamentals Founders must understand, relate to supply chain basics.

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Certainly! Here are some maxims distilled from the themes and advice expressed by John Morgan on Episode #328 of the DTC POD hosted by Blaine Bolus: 1. Always be ready to adapt: Supply chains are ever-evolving; stay agile to keep up with complexity, volume, and growth opportunities. 2. Knowledge is power: Engage with 3PL partners strategically based on revenue and growth potential. 3. Scale wisely: Embrace services like advisory, project-based engagements, or turnkey operations to match the stage of your business. 4. Embrace technology: Leverage fractional operations and modern tools to streamline your supply chain. 5. Margins matter: Keep a sharp eye on the costs of goods sold and overall profitability for sustainable business growth. 6. Measure to manage: Make decisions based on data-driven insights, and consider sustainability as part of your strategy. 7. Margins under the microscope: Remember that in early stages and e-commerce, margins will be scrutinized heavily. 8. The customer's perception is your reality: Focus on financial decisions that enhance quality and ensure timely delivery, as customer lifetime value hinges on satisfaction over initial margins. 9. Negotiate with volume: Use your scale to negotiate better costs at all stages of customer experience to enhance savings. 10. Prepare for the unexpected: Anticipate import delays and seek expert advice, considering the volatility of tariffs and political tensions. 11. Avoid tunnel vision: Don't hesitate to explore new supply chain options and invest in powerful analytics dashboards. 12. Organize and anticipate: Build an operations hub and a sales and operations planning (SNOP) process, but avoid overcomplicating solutions. 13. Evolve with AI: Look forward to integrating AI-enabled workflows to optimize time-consuming tasks and focus on strategic growth. 14. Relationships are the backbone: Build and maintain strong relationships with suppliers and manufacturers—they can make or break your supply chain. 15. Start with a framework: Each supply chain is unique, but having a simplified approach can guide operations from inception. 16. Own the process: Understand the nitty-gritty of your supply chain before outsourcing to stay in control. 17. Iterate, don't stagnate: View your supply chain as a work in progress that requires constant refinement to be effective, especially in times of crisis.

📧 Podcast Thank You Email
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Subject: Huge Thanks, John - Your DTC POD Episode is Live! Hey John, Just wanted to shoot over a quick thank you for joining us on the DTC POD. It was incredible catching up and getting to dive into the nitty-gritty of supply chains with you. Your insights from SpaceX to Seed Health – pure gold! Good news: Episode #328 is now live for the world to hear! 🎉 Your expertise is officially out there shaking things up in the best way possible. If you could take a moment to share the episode on your channels, it would mean the world to us. Engaging with the content – likes, comments, retweets, you name it – seriously helps spread the word. Thanks again for dropping some serious knowledge and making our community that much smarter. Can't wait to see the ripples from this one! Cheers, Blaine P.S. If you ever feel like diving back in for another round, you know where to find us!

🌟 3 Fun Facts
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1. John Morgan shared his impressive experience working on the Falcon nine rocket when he was at SpaceX before transitioning his focus to operations and supply chains at Seed Health. 2. While at Seed Health, John Morgan developed innovative technology called Viacat for probiotic products amidst tackling chaotic supply chain and financial situations. 3. In a practical example of cost reduction, John Morgan recounts how through leveraging and negotiating volumes, he assisted a client in slashing their initial costs by a notable 50%.

📓 Blog Post
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Title: Mastering Supply Chain Efficiency with John Morgan on DTC POD Introduction to Supply Chain Mastery In episode #328 of DTC POD, host Blaine Bolus leads an in-depth conversation with John Morgan, an industry expert whose experience spans from SpaceX to Seed Health, and currently at the helm of Pelagal. Morgan's approach to supply chains is dynamic, advocating for a continuous assessment and evolving strategies to cope with the complexities and rapid changes in the industry. Optimizing for Growth and Profitability Morgan's insights into supply chain management stress the importance of profitability and cost optimization. Understanding the intricacies of cost of goods sold is crucial for defining margins that facilitate robust growth. The road to scaling a business involves strategic decisions on when to engage with different types of third-party logistics partners, a factor Morgan ties to a company's revenue and expansion ambitions. Flexible Supply Chain Solutions Morgan's wide-ranging expertise has led to the development of flexible options for supply chain management. Early-stage founders can access advisory services tailored to their evolving needs, while more established businesses can benefit from project-based engagements or holistic turnkey operations. This scalability ensures that brands at any stage can streamline their operations for maximum efficiency. The Power of Fractional Operations and Tech Tools The application of fractional operations and the use of advanced technology tools stand at the forefront of current market strategies. By leveraging these methodologies, businesses can ensure they remain agile and adapt quickly to ever-shifting market demands and consumer expectations. Moreover, Morgan anticipates the integration of AI-enabled workflows that will revolutionize traditionally labor-intensive tasks, emphasizing the strategic and negotiation aspects of supply chain management. Sustainability and Data-Driven Decisions Founders cannot ignore the increasing demand for sustainability. Morgan underscores the need for a data-driven mindset when navigating the supply chain. Decisions must reflect an understanding of long-term impacts and the footprint of the supply chain not just on the bottom line, but also on the environment. This introduces an additional layer to the complexity of supply chain management, one that presents both a challenge and an opportunity for forward-thinking companies. Covid-19 and Supply Chain Strains John Morgan candidly discusses the tumultuous period of navigating supply chain disruptions during the Covid-19 pandemic. This conversation provides invaluable insights into the rapid adjustments required to import essential items under strained conditions, highlighting the critical nature of resilience and adaptability in supply chain planning and management. Setting the Foundation for Supply Chain Strategy For founders at the inception of their brand journey, John Morgan defines core principles for launching a self-sufficient supply chain. He advocates for a detailed understanding of the supply chain processes before considering any form of outsourcing. Engaging directly with suppliers and manufacturers builds foundational relationships that are key for long-term collaboration and success. Building a Robust Support Community Significant to this episode is Bolus' announcement of the D2C pod Slack community. This community is designed to be a vibrant hub where founders and industry operators can exchange knowledge, experiences, and support one challenge another through shared experiences. Currently on a waitlist, the community aims to boost connectivity and collaborative problem-solving once it launches. Harnessing Advanced Sales Solutions Lastly, the episode includes a nod to the modern solutions offered by the "all-new sales hub" from HubSpot, which promises to amplify revenue and bolster growth for businesses looking to maximize their sales processes. Closing Notes Throughout the episode, themes of proactivity, innovation, and collaboration emerge, painting a picture of a landscape that is both demanding and rewarding. For more insights and resources, listeners are invited to leave a review for DTC POD, follow the newsletter, and visit dtcpod.com. Engage with John Morgan through his LinkedIn, at Pelagic, or via john@pelagic.com. Leveraging the nuanced advice from an esteemed expert such as John Morgan, companies can navigate the tumultuous seas of supply chain management with greater confidence and strategy. Episode #328 of DTC POD offers a treasure trove of insights for anyone eager to fine-tune their operational efficiencies and drive impactful growth.

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Navigating the complex journey of supply chain management can seem daunting for any founder. That's precisely what we dive into with John Morgan in today's insightful episode of DTC POD. You'll glean wisdom from John's stint at SpaceX and Seed Health, learning about: - The iterative approach to fine-tune supply chains as your business scales. - Strategies behind engaging with 3PL partners to fuel growth while keeping an eye on costs. - The critical role of data and technology in crafting an efficient supply chain operation. Join us to unlock the secrets of building resilient, cost-optimized supply chains that stand the test of market demands and global challenges.

🔘 Best Practices Guide
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**Supply Chain Best Practices - Top 20 Tips** 1. Regularly review and refine your supply chain. 2. Choose 3PL partners that align with your current revenue and expansion goals. 3. Adopt scalable options like advisory services and turnkey operations. 4. Implement technology for efficiency and competitive advantage. 5. Focus on cogs to drive profitability and sustainable growth. 6. Embrace data-driven strategies to make informed choices emphasizing sustainability. 7. Scrutinize margins closely, especially in early stages and e-commerce spaces. 8. Establish direct communication channels with suppliers and manufacturers. 9. Take a step-by-step approach to scale your supply chain. 10. Foster relationships with partners to understand supply chain complexities. 11. Anticipate political and economic influences on imports. 12. Address challenges proactively and avoid reluctance to change suppliers. 13. Consolidate key data through an Ops hub or SNOP. 14. Limit overengineering; prioritize practical, organized solutions. 15. Prepare for unforeseen global logistics disruptions like the Covid-19 pandemic. 16. Prioritize product quality and timeliness in subscription models. 17. Engage expert guidance to navigate import regulations. 18. Leverage negotiation for volume discounts to lower initial costs. 19. Anticipate technological advancements to further streamline operations. 20. Always work on improving your product's journey to market. *Understanding these fundamentals will lay the groundwork for a supply chain that is resilient, strategic, and capable of supporting your company's growth.*

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**Cover Slide** "10 Key Supply Chain Strategies" **Slide 1** "Reactive Planning" - Adopt proactive strategies using tools like an Ops hub and SNOP to organize data effectively. **Slide 2** "Ignore COGs" - Prioritize cost optimization to improve margins. Detailed cogs analysis is crucial for scaling. **Slide 3** "Solo Sourcing" - Build relationships with multiple suppliers to ensure flexibility and mitigate risk. **Slide 4** "Neglect Tech" - Implement technology tools and anticipate AI to streamline operations and enhance strategy. **Slide 5** "Undervalue LTV" - Focus on long-term value over initial margins, especially in subscription-based models. **Slide 6** "Settle on Costs" - Negotiate volumes and innovate to slash initial costs, aiming for substantial savings like 50%. **Slide 7** "Overlook Delays" - Allow for extra time and seek expert advice when importing, considering tariffs and political climates. **Slide 8** "Avoid Dashboards" - Establish powerful dashboards to consolidate key metrics, from purchasing to inventory. **Slide 9** "Rigid Methods" - Embrace flexibility and the iterative nature of supply chains. Be ready to assess and adjust. **Slide 10** "Outsource Blindly" - Obtain a deep understanding before outsourcing and keep track of scalability and market reach.

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Cover Slide: "10 Supply Chain Commandments Every Founder Needs to Know" Slide 1 - Iterative Approach Constantly adjust your supply chain to stay ahead of changes in market demand. Slide 2 - Timing 3PLs Match engagement with third-party logistics to your revenue and growth stages. Slide 3 - Flexible Options Utilize advisory, project-based engagements, or full operations based on brand scaling needs. Slide 4 - Tech Leverage Implement technology tools to streamline and enhance your supply chain efficiency. Slide 5 - Cost Focus Keep a keen eye on COGs to optimize profitability and sustain growth. Slide 6 - Sustainability Matters Factor sustainability into your supply chain for long-term brand credibility and impact. Slide 7 - Margin Scrutiny Especially at the seed stage, margins are critical. Analyse them intensely to ensure viability. Slide 8 - Quality vs. Timeliness Prioritize the trade-off between product quality and timely delivery based on LTV goals. Slide 9 - Avoid Pitfalls Don’t get comfortable; continuously seek improvements and use data to consolidate operations. Slide 10 - Relationship Building Understand details and foster strong connections with suppliers to create a resilient supply chain. CTA Slide: Got Supply Chain Questions? Join our growing Slack community to connect with experts and peers. Apply now and get exclusive insights and support! [Apply Link in Description]

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1. Iteration is the heartbeat of successful supply chains. Adjusting to complexity and volume is not just a one-off; it's a continuous journey toward growth. 2. Knowing when to partner with 3PL providers is a dance with revenue and opportunity. Engage at the right time to elevate your supply chain strategy. 3. Are you an early-stage founder? Don't overlook advisory services that can scale with you. Flexibility in support can propel rapid brand growth. 4. Embrace fractional supply chain operations and tech tools. It's like giving your business superpowers in efficiency and strategy. 5. The pulse of profitability lies in the control of cogs. Tighten your grip on margins to fuel your company’s ascent. 6. Sustainability isn't just a buzzword; it's a founder's strategic choice driven by data and customer expectations. 7. Scrutinizing every margin is the founder's rite of passage in e-commerce. Eye the bottom line with the precision of a hawk. 8. Spaceships to supplements, my journey shows the universality of supply chain challenges. Learn from my voyage at SpaceX to Seed Health. 9. In the labyrinth of importing, the cautious win the race. Expert guidance and timing are your allies against tariffs and political winds. 10. Build a fortress of data with powerful dashboards. Overlook this, and you're sailing without a map in the vast sea of supply chains.

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This SpaceX marvel helped save precious time and resources. Falcon 9 Rocket Using the same rocket multiple times cut costs and revolutionized space tech.

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If you're looking to master the art of supply chain management and position your brand for growth, there are some crucial mindset shifts that you need to consider: 💭 Shift from static planning to embracing the flow of change. The supply chain landscape is continually evolving, and your strategies should too. Recognize the importance of regularly assessing your operations, as John Morgan underlines. This allows you to stay nimble and seize opportunities for efficiency and growth. 💭 Embrace technology as an ally, not a crutch. In today's market, tools and software can offer incredible insights and streamline processes, but they should enhance, not replace, strategic thinking. As John points out, the future of operations includes AI-enabled workflows, which will free up time for strategy and relationships – the core of any successful business. 💭 View challenges as catalysts for innovation. Navigating supply chain hurdles, especially during unprecedented events like the Covid-19 pandemic, requires resilience and creativity. Rather than being roadblocks, let these difficulties inspire you to innovate and improve your processes, just as John Morgan did with the development of Seed Health's Viacap technology. The insights from today's episode with John Morgan are indispensable, and if you're a founder or operator in the direct-to-consumer space, remember to rate and review DTC Pod, follow and subscribe, and check dtcpod.com for more valuable resources. Joining our Slack community will put you at the heart of a network where ideas, strategies, and support are shared fervently. Don't miss out on applying via the link in the description – we're launching once we hit 150 members! #DTCPOD #SupplyChainManagement #GrowthMindset #FoundersJourney #InnovateAndScale #EmbraceChange

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For businesses looking to retool their supply chain strategy in challenging times, implementing fine-tuned measures is crucial. Here are five nuanced tactics and strategies, inspired by insights from John Morgan on Episode #328 of DTC POD, that you could apply to enhance your business operations: 💭 Embrace the concept of fractional supply chain management to augment capabilities without full-time hires. This means utilizing part-time or temporary specialists to analyze and adjust your supply chain strategies as demand and market conditions fluctuate. It’s a flexible, cost-effective approach that gives you access to expertise precisely when you need it. 💭 Leverage data through an integrated dashboard that consolidates purchasing, COGs, inventory, and supply information. By having key metrics at your fingertips, you can make informed decisions rapidly and stay ahead of potential disruptions. Prioritize simplicity in these tools to avoid overcomplication that can hinder, rather than help, your operations. 💭 Foster deep relationships with suppliers and 3PL partners by understanding their challenges and constraints. Go beyond transactional interactions; invest in trust-building and open communication. This can lead to better terms, improved cooperation during demand spikes, and a more resilient supply chain. 💭 Use strategic volume negotiations to drive down costs across the entirety of the customer experience, from ordering materials to final delivery. This doesn't mean simply reducing costs at every corner, but rather smartly investing where it counts to ultimately lower expenses without compromising on quality or timeliness. 💭 Integrate AI-enabled workflows to streamline operations and free up time for strategic work. Evaluate repetitive, time-intensive tasks within your supply chain and identify technology solutions that can automate these processes. This forward-thinking step can considerably reduce human error and increase overall efficiency. In applying these tactics, businesses can create a robust and responsive supply chain that not only withstands disruptions but also captures growth opportunities in today's dynamic market.

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Overrated: Spray and Pray. Hoping to catch a break in supply chain optimization by trying every possible tool and tactic will eat through your operational budget faster than you can say "inventory turnover." Underrated: Tailored Optimization. Here's the exact approach John Morgan used to slash a client's initial costs by 50%: Simplify Your Partners Work with less but more versatile 3PL partners. John suggests partnering based on what stage your business is at: - Early Revenue: Consulting driven 3PLs - Growth Phase: Project-based 3PLs - Scaling Quickly: Full-service turnkey operations If your 3PL can’t scale with you, rethink it. Five Key Focus Areas Your operations can only juggle so much. Concentrate on these: 1. Cost of Goods Sold (COGS) 2. Freight and Logistics Optimization 3. Volume Leveraging 4. Data Consolidation (Ops Hub and SNOP) 5. Tech and AI Integration If these don’t ring a bell, it’s time to hit the drawing board. Market Snapshot Avoid the operational weeds when you first outline your supply chain infrastructure. Here’s what to focus on: - Your immediate logistic needs - Anticipated complexity at the next revenue milestone - Growth potential and market scalability Five quick bullets will suffice. Elevator Pitch This is your supply chain at a glance. Here's Pelagic's own pitch: “We navigate the waters of complex supply chains to deliver seamless scalability for founders.” Craft a sentence that captures your operations. Define Your Narrative Instead of relying on buzzwords, use specific descriptions that set the scene for your supply chain story. Pelagic’s: “Iterative supply chain architecture.” Bezos’: “Our customer service obsession.” Control the conversation with your phrasing. Your Roadmap We do more than consulting. Understand sustainability, tech integration, and lean operations. Tell your partners the steps you’ll walk through together. Service Outline Spell out your service engagement model upfront. Pelagic offers options: - Advisory for early-stage setups - Project-based engagements for growth strategy - Turnkey solutions for brands on the fast track. Clear expectations are key. Visualize Success Charts and graphs can highlight your supply chain’s throughput, cost breakdown, and scalability. Get visual but keep it direct. Use straightforward graphics - consult a pro if you’re unsure. Team Ultimately, supply chain mastery is about people. Showcase those who make logistics look like clockwork. Their expertise is your brand’s strength. If you’re building from scratch... Focus on your adaptability and vision. Show your roadmap for scaling operations, your commitment to slim margins for greater LTV, and your experienced team ready to handle growth. Master the 3 'S's of Supply Chain: • Strategy, Scalability, and Sustainability • Systems, Software, and Savings Detail your S’s as meticulously as you plan your inventory. Remember, no detail is too small when it comes to optimizing your supply chain. It's the backbone of your business.

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Idea #2: Navigating Supply Chain Complexities with Flexibility Approach supply chain management with flexibility and cater to the unique challenges of growth and scalability through: 1. Embracing Iterative Processes: John Morgan underlines the significance of progressively refining supply chains in response to evolving complexities and volumes, which recognizes the non-static nature of global markets and consumer demands. 2. Offering Tailored Solutions: Providing a variety of services—including advisory for newcomers, project-based collaborations, and complete operations for scaling entities—exemplifies a flexible approach that adapts to the distinct needs and developmental stages of different brands. 3. Leveraging Fractional and Technological Strategies: John advocates for the use of fractional supply chain operations and modern tools, showcasing an understanding of the current marketplace's resource constraints and the necessity for cost-effective, technology-driven solutions.

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Tweet 1: In episode #328 of DTC POD, supply chain sage John Morgan from Pelagic imparts wisdom from his time at SpaceX & Seed Health, underscoring the essence of agility in supply chain management. Here’s a sneak peek at the gems he shared: 👇 Tweet 2: 1. The Dynamic Puzzle of Supply Chain Management Supply chains are living entities that need continuous monitoring and refinement. From complexity to growth, staying ahead means adjusting the pieces efficiently and effectively. Tweet 3: 2. Scaling Smart with 3PL Partners Choosing when to engage with logistics partners is crucial. John outlines strategies based on your company's growth trajectory and revenue, ensuring you deploy resources only when it's most beneficial. Tweet 4: 3. The Power of Fractional Operations For early-stage founders, flexibility is key. Pelagic’s approach includes customizable solutions, like on-demand advisory and operable turnkey solutions for scaling companies. Tweet 5: 4. Tech & Tools: The Game Changers Integrating technology is non-negotiable. From fractional operations to software aids, John bets on tech-driven efficiency to handle repetitive tasks, freeing the humans for the big-picture strategies. Tweet ignificance of COGS Tight control of the cost of goods sold is the lever to profitability for D2C brands. John emphasizes the criticality of margins, especially for founders scrutinizing every spending choice in the seed stage. Tweet 7: 6. Sustainability and Data: The New Age Lock & Key Founders must juggle eco-consciousness with solid data to back decisions. John heralds this pairing as central to modern business, balancing responsibility with commerce. Tweet 8: 7. Lessons in Negotiation: Cutting Costs without Compromise How do you halve initial costs? Leverage volumes and negotiate. John shares an anecdote where smart negotiations led to a 50% saving for a client, showcasing the might of calculated talks. Tweet 9: 8. Avoid Set-Up Pitfalls: Strike a Balance A common supply chain set-up failure? Being rigid. John suggests a potent dashboard to compile key operational figures and recommends simplicity over complexity in organizational tools. Tweet 10: 9. Covid-19 and Supply Chains: The Adaptability Test John recounts the pandemic pressures, illustrating the necessity for supply chain resilience amidst crises, and introduces Pelagic's role in aiding founders to overcome such obstacles. Tweet 11: 10. Starting from Scratch: Supply Chain Basics Each supply chain is a unique beast. John advises founders to grasp the fine details before delegating and to cultivate strong supplier relationships as the backbone of effective operations. Tweet 12: Wrap-Up: DTC POD’s community is growing with a new Slack space! 🌟 For all you founders and operators seeking fellowship and knowledge, hit the link to join our waiting list. Don’t forget to check out @HubSpot’s all-new sales hub - a possible key to your revenue climbing. #DTCPOD Tweet 13: A final shout-out to our listener family - if John Morgan’s insights lit a spark, leave us a rating and spread the love with a review. Your support fuels this channel. For more, follow us, subscribe, and dive into our resources at dtcpod.com. 🎧🚀 #supplychain #ecommerce #growth

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In the span of a single fiscal quarter, we've begun to elevate the intelligence of supply chain operations, shaving significant percentage points off our COGs, and enhanced our foundational frameworks for scalable growth. As a guest on DTC POD, John Morgan has shed light on a simple truth: the agility of your supply chain is a pivotal driver of company health. Forward-thinking brands now stand before a tantalizing opportunity. By mastering the new era of supply logistics and operations, they're not just surviving; they're setting themselves up to soar. BACKGROUND: It's no secret that before this, many startups experienced the inertia of outdated supply chain strategies—where pivotal moves toward efficiency in operations were hampered by reluctance to innovate or strategize around data. Old Supply Chain: - Static supply chain models - Inefficient response to market dynamics - High COGs bogging down profit margins - Limited engagement with tech and analytics for decision-making New Supply Chain: - Dynamic, fluid supply chain management - Proactive adaptation to changes in market conditions - Streamlined operations reducing COGs and boosting profitability - Data-driven approach augmenting strategic foresight and operations John Morgan's conversation with Blaine Bolus paints a vivid picture of a future where data and relationships drive the core of supply chain management, optimizing both costs and customer experience. The days of essence, this next epoch will bring together human insight and technological precision in an orchestral display of operational brilliance. HERE'S HOW... Yet, to achieve this evolved state, there's work to be done. Morgan proposes a series of actionable tactics to usher in this golden age of logistical operations. Here are my 6 recommendations: 1. Assess and Adjust: Regularly evaluate your supply chain to navigate the ever-evolving complexities of your industry and scale accordingly with agility. 2. Tech and Tools Utilization: Integrate technology tools and AI-driven platforms to automate routine tasks and concentrate on strategic decisions and negotiations. 3. Project-Based Partnerships: Engage with adaptable 3PL partners and advisors attuned to your growth trajectory and revenue streams. 4. Cost and Quality Balance: Prioritize the financial obligations concerning product quality and timely delivery, especially vital in a subscription model where LTV prevails over initial profit margins. 5. Building Robust Dashboards: Develop an operations hub consolidative of purchasing, COGs, inventory, and supply data to avoid common supply chain pitfalls. 6. Sustainable and Data-Driven Focus: Consider the environmental impact of supply chain decisions while maintaining a core foundation of data-driven maneuvers. Entering this echelon of supply chain excellence could secure not just survival in our tumultuous market, but enduring prosperity. P.S. In what ways do you think startups can further innovate their supply chains to prepare for future market demands? How important is the integration of sustainability into the supply chain strategy for you? Share your thoughts and explore further by joining our Slack community!

About the Episode
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In episode #328 of DTC POD, John Morgan dissects the intricate tapestry of supply chain management with a laser-sharp focus on adaptability and continuous improvement. He underscores the significance of constantly reassessing and refining supply chain processes, emphasizing the need for businesses to remain agile as they experience fluctuations in complexity and volume. Throughout his discussion with Blaine Bolus, Morgan zeroes in on the strategic engagement with third-party logistics partners. Matching the scale and growth trajectory of a company with the services of a 3PL partner can be a navigational beacon for businesses wading through revenue categories and pinpointing when to harness external expertise to accelerate their trajectory. Morgan does not shy away from advocating strategies that bolster financial prudence in supply chain operations, positioning cost of goods sold as the linchpin in the architecture of profitability and expansion. By elevating the role of operational tools like Ops hub and SNOP that consolidates vital metrics such as purchasing, inventory, and supply data, Morgan extols the virtues of establishing a nexus of clear, accessible information. This approach beckons founders to move beyond myopic decision-making by harnessing a dashboard that paints a holistic view of their supply chain's health. The episode illuminates the path by highlighting the technological advancements that are reshaping the operational landscape. John Morgan leans into the power of technology, forecasting the innovative integration of AI-enhanced workflows to streamline supply chain operations. By freeing up bandwidth from routine tasks, he argues, businesses can devote more energy to strategic decisions and cultivate a keen edge in human-centric negotiations. It's a vista where insight, powered by technology, carves out efficiency and uncovers opportunities for brands at the vanguard of market growth.

Episode Summary
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John Morgan is the founder of Pelagic, a company that specializes in helping e-commerce brands optimize their supply chain operations for profitability and sustainable growth. With extensive experience at SpaceX and Seed Health, John understands the unique supply chain challenges faced by early-stage and rapidly scaling brands. In this episode of DTC Pod, John shares his insights on designing and managing supply chains for hypergrowth. He discusses the importance of iterative supply chain optimization, the timing of engaging with 3PL partners, and the value of leveraging fractional operations and technology tools. John also emphasizes the crucial role of cost optimization and margin analysis in driving profitability and growth for e-commerce brands.

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Here are 3 strategies for DTC success based on insights from John Morgan: 1. Proactively organize your supply chain data Consolidating key supply chain metrics into a centralized dashboard is crucial for making informed decisions as you scale. Rather than cobbling together data from disparate sources, take a proactive approach to organizing information related to purchasing, COGs, inventory levels, and demand forecasting. By building an "Ops Hub" or SNOP (sales and operations planning) tool early on, you'll have a clear view of your supply chain health and be better equipped to navigate challenges as they arise. Remember, it's not about overengineering a complex solution, but putting in place a practical system to keep your operations running smoothly. 2. Leverage volume to negotiate better terms As your brand grows, don't be afraid to explore new supply chain partners and use your increased volume as a bargaining chip. Morgan cites an example where renegotiating with vendors based on higher quantities helped a client save 50% on their initial costs. Look for opportunities to reduce expenses across your entire supply chain and customer experience by leveraging the economies of scale that come with growth. From raw materials and packaging to shipping and fulfillment, incremental cost savings can add up to a significant impact on your bottom line. 3. Build flexibility into your supply chain In an unpredictable market, the ability to adapt quickly is a major competitive advantage. Morgan recommends incorporating flexibility into your supply chain wherever possible, whether that means having backup suppliers, investing in agile technology, or working with partners that can accommodate fluctuations in demand. Don't get locked into rigid, long-term contracts that limit your options. Instead, prioritize relationships with suppliers and logistics providers that are willing to grow with you and support your evolving needs. By designing your supply chain for flexibility from the start, you'll be better positioned to weather any disruptions that come your way.

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Effective supply chain management is essential for the success and scalability of any DTC brand. John Morgan, Founder of Pelagic and former Head of Supply Chain at Seed Health, joins Blaine Bolus to share his extensive experience in building and optimizing supply chains for high-growth companies. In this episode, we dive into the iterative nature of supply chains, the importance of data-driven decision-making, and how to leverage technology and partnerships to optimize costs and drive profitability. John also shares his insights on navigating global supply chain challenges, particularly in the context of the Covid-19 pandemic, and offers practical advice for founders looking to set up and scale their supply chain operations. Listen to the full episode here: [link] #supplychain #dtc #ecommerce #operations #logistics

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