Industrial Talk is speaking with to Alberto Villarreal, Managing Director with Nepanoa about “Latin America Reshoring or Nearshoring Solutions”. Get the answers to your “Reshoring” questions along with Alberto's  unique insight on the “How” on this Industrial Talk interview!

Finally, get your exclusive free access to the Industrial Academy and a series on “Why You Need To Podcast” for Greater Success in 2023. All links designed for keeping you current in this rapidly changing Industrial Market. Learn! Grow! Enjoy!

ALBERTO VILLARREAL'S CONTACT INFORMATION:

Personal LinkedIn: https://www.linkedin.com/in/betovillarrealgarza/

Company LinkedIn: https://www.linkedin.com/company/nepanoa/

Company Website: https://www.nepanoa.com/

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PODCAST TRANSCRIPT:

SUMMARY KEYWORDS

mexico, alberto, companies, scott, people, latin america, nepanoa, industrial, business, conversation, manufacturing, client, countries, supply chain, talk, sourcing, financial, state, wrap, operating

00:04

Welcome to the industrial talk podcast with Scott Mackenzie. Scott is a passionate industry professional dedicated to transferring cutting edge industry focused innovations and trends while highlighting the men and women who keep the world moving. So put on your hard hat, grab your work boots, and let's go

00:21

Alright, once again, thank you very much for joining industrial talk a platform that is dedicated to you industrial professionals all around the world. You are bold, brave, you dare greatly you collaborate, you're solving problems. You're making the world a better place. That's why industrial talk is your cheerleader. In all things industrial. All right in the hot seat. Alberto Villarreal Nepanoa is the company we're talking about nearshoring, we're talking about seeing what we can do, what are the strategies? What, what avenues can be taken to try to sort of bring back maybe some manufacturing? And and make it a little bit more efficient? Maybe south of the border type of solutions? Napa? No, it is your team? Let's get cracking. Yeah, it's gonna be a great conversation, you'll like this conversation. It's an interesting conversation, because I know that from my perspective, that I've had a number of conversations sort of wrapped around supply chain, what are those strategies? What do we do? How do we become more efficient? How do we create a supply chain that is a little bit more durable than what we are expected? That what we experienced? So anyway, great conversation, great solution, Nepanoa. All right, once again, before we get into the conversation, we're going to be doing a 2020 to wrap up. And not to not to sort of explain to you what, what's going on. But I've been very fortunate to be attending conferences, meeting with companies and professionals, talking to them about some of the challenges that are taking place within manufacturing, digital transformation, you name it, it's all out there. And there's a lot of great, great thinking, and solutions that exist out there. So I'm going to be wrapping it up. But sort of a precursor, there are a couple of things that sort of fall into the category one is, and this is this is a constant theme. There's a trust, who do I trust? I'm out there on the World Wide Web, I'm looking around, I'm trying to figure out how to create a business that's more resilient. What do I do? Where do I go? What are those avenues? Who do I trust? Because there's a lot of people hanging shingles out there saying, I trust us do this, trust us do that. But who do I really trust because I know I need to do something. So trust is a big deal. The second sort of theme that exists out there today is one there's a speed there's a there's a sort of a there's a rapid expansion, the solute, there's just so much speed and velocity that exist out there and industry. The challenges, again, I just trust, but where do I start? What what do I do? And and, and I think that that's really important. And I think that there are a lot of great companies out there that can definitely help you navigate those waters and to be able to deal with velocity that exist today in industry. So those are coming to the sort of the themes that are going to be communicated in the 2020 to wrap up. The other thing that we're doing is in light of the same thing is that you have these verticals. And I'll say it's manufacturing, okay, manufacturing, and there are so many solutions that are hammering, manufacturing, is how do you sort of pull that and to create a great sort of a cogent picture behind it? And and that, you know, that could be digital transformation? What do we do? Where do we go? Is that really necessary to, let's say, cybersecurity, if you're going to, if you're going to be digitizing your business, you need to make sure that you're upfront with your conversation around cybersecurity, that's to, again, who do I trust? Where do I go? All of these things? And how do you pull all of these solutions? What What technology do I put in place? What what does that mean? How do I compress those times? So these are just conversations that had happened over the past year, attending conferences, meeting up with people all fantastic stuff. So be on the lookout for one the year wrap up and then to the series that I'm going to would love to be able to pull together that maybe its manufacturing oil and gas, pipeline, utilities big, big need to sort of pull all that together and what does that picture look like? So all of these things are just really absolutely spectacular. So that's that's your that's where I'm at. That's where I'm going. That's what I'm pushing. So be on the lookout for that and go out to industrial talk and you know No click and be a part of that. So, all right, Napa Nova. So the reality is, is that we had this this COVID, it had its supply chain went for galley. And we needed to come up with some solutions and strategies that maybe address nearshoring reshoring, bringing some of the critical manufacturing components in North America, and Nepanoa is are the leaders in opening up, Mexico and South America and areas in there to be able to begin sourcing from those locations. And so anyway, it's a great conversation. Really enjoyed it. It's timely. So enjoy Alberto Alberto, welcome to industrial talk. Thank you very much for finding time in your busy schedule to talk to our listeners, which happen to be the best in the world. How about that?

05:54

I believe you. How are you doing? Very good. Scott, thank you so much for the opportunity. It's a pleasure. Yeah, talk to you and share perspectives with you.

06:03

I'm all into it. I'm telling you right now, listeners, we're gonna be talking a little bit about nearshoring is a great topic. Primarily Mexico, Latin America. And Nepanoa No, I got it. Nepanoa, the hey got leaders in in being able to make that happen. And I think that that's an important conversation to have specially with challenges with supply chain and, and the importance of manufacturing. Before we get into that conversation. Alberto, give us a little background on who you are. Sure.

06:37

Scott, thank you very much for the opportunity to connect. I am indebted to ERL. I was born and raised in Monterrey, Mexico. And I noticed that sentence was in Spanglish. There was a lot of our rolling there. In English. It's I'm Alberto Villarreal. And I was born and raised in Monterrey, Mexico. It works. Either one works. I've been in the United States since 2003. I went to school at Georgia State University. very stereotypical story. Scott, Mexican kid played soccer, I ended up getting a full ride at Georgia State and playing there. For four years. I had a long career in consulting, one of the one of the big consulting firms. And three years ago, I decided to start my own firm, which is net Bonilla and net Biloela. Yeah, net. benowa is the verb. It means a company, it means to be a companion, right? And the language has Now what'll now what tool was spoken by the Aztecs, who are the fastest the Aztecs lived in Mexico City. And there were the most important civilization in the pre Columbian era. And the name of our company, I love it, because it really describes what we do, we are a companion, right to businesses that want to establish operations, grow their operations, or transform their operations between the US Mexico and Latin America. I've been a resident of Chicago, and for the last 12 years, I moved to Chicago in 2010. And the Chicago Booth grad, for any, you know, MBAs out there, and, you know, very proud of what we're doing in trying to unite us and Mexico, US Latin America, particularly if we're what you're saying nearshoring ally shoring, right there is

08:11

Whoa, hey, I got all the government I didn't get that ally short.

08:19

I mean, well, we need to think about it that way. Right? It's not only a supply chain issue, but with the complexities that are happening around the world. Europe, Asia, I mean, just yesterday, right? We were looking at some missile tests in Asia, we not only need to think of our supply chain, we need to think of as Okay, which countries which markets, which regions are our allies. Alright, so that's a way to take a look at every risk counts when we're thinking of moving operations.

08:45

So one of the questions I have is, is, let's say I approach I'm a business I'm interested in, at least beginning i, i source my products here, I manufacture my products here. I do that over here, wherever here is let's say it's a wherever it is, right? And I see the value, I see the importance of sort of bringing critical items nearer to me, right? And how does that sort of journey begin with you? Like, how do I just approach it? What's that journey look like?

09:17

Sure. So Scott, it's not usually about moving all of your production or source everything from one country. But if anything, the last three years proved to us that, you know, diversification having 123 suppliers of the same part is really beneficial, especially in a state like the one that we're living today that it's really unstable. Um, how it works with us is we have a methodology, which we call the EPA, NOAA lifecycle. And our conversations usually begin with a question. And it's usually the CEO or the CFO, right or just the owner of a manufacturing shop. And the question is, Hey, can I take my facility to Mexico? Can I expand my facility to Mexico, can I find X or Y product in blue? I've heard that Brazil is fantastic for this type of part. That's usually the question. And that's how we begin conversations. From there, we focus on making an analysis. Okay. Let's talk about financials. How would your company look? If you started working in Mexico? Right? How would it work if you sourced this product? From Colombia? Right, let's talk about the people. Okay, if you're going to be manufacturing elsewhere, what type of people do you need? What capabilities are you looking for? Right? What are the biggest issues that you're facing today? Operating elsewhere? Right? How can that play a role? Because Scott, many times when we have these conversations, we think of Mexico as a whole, we forget that Mexico has more than 130 million people in it. Right? We think of Latin America as a whole. But operating in Brazil, Colombia, Chile, Peru, is completely different, different regulations, different, different people, different cultures, and it's important to be able to navigate them. Once we make that analysis, we encourage our clients to make a decision. And you'd be surprised because sometimes the decision is no, guess what? Continue working with a company you're working with or maintain your operations where they are. At this point, it truly doesn't make sense for you to expand. But of course, in a patient's

11:26

so you don't have you can if I came to you and I just said I'm interested, I don't know where to go. I don't know where to start. I don't even I just think it might work out well. The Napa NOAA team net Bonilla will say okay, let's look at let's look at it. And yeah, this is fine. This could be improved this whatever. You give us that roadmap, right?

11:52

I'll give you that, that roadmap, and it will always be backed by data. Right? And it will always be backed by how does this? How is this coherent with the strategy of your business going forward? I'll give you an example. Just today, I had a call with a client that it was going to Mexico, but guess what, the facility that they were looking to, it was 30,000 square feet. They wanted to start with something small, maintain all their operation that us, but they were just looking at Mexico for that specific piece. Well, guess what, we weren't able to find a facility at the price point that they needed it so that it made sense for them. We're gonna revisit this in six months, because today, it doesn't make sense, right? And that's okay. Now, that's one story. The other side of the story is it makes sense. And then our team will accompany through the expansion or through the engagement of sourcing product from Mexico and Latin America. And that is a whole different ballgame. Scott, we're talking government relations, we're talking negotiations, we're talking understanding customs and our border, understanding logistics in general, very well. So we become an extension of the companies that are coming into Mexico and Latin America. And we take care of that project for them. So that way, they can focus on operating do what they do best. And we become their Mexico slash flat tam team to get things done them

13:08

here. What is the value proposition of why I would consider moving operations down to Mexico or even you know, Latin America? What what? What's that driver? Why, why? Why is that important?

13:22

There are several drivers, but there's two that are very important. The first one is people. When you look at the demographic of Mexico, when you look at the demographic of Latin America, you're gonna see young people, the average age in Latin America is between 25 and 30 years old Scott. So when we have young people, young professionals that need jobs that want to innovate, that really gives an opportunity, more importantly, in specific countries, because when we say Latin America, in this conversation, we're ignoring your why we're ignoring Bolivia, Venezuela, right? I mean, we're truly focusing from Brazil, Chile, Colombia, Peru, a little bit of Argentina, and of course, Mexico, but in my world, Mexico counts as North America, Mexicans just happen to speak Spanish. But when you look at dedication level, would you be surprised if I told you that in Mexico, more than 300,000 engineers graduate every year? industrial chemical Central, mechanical?

14:17

That's it's another I would imagine, yeah, that's the case. But you know, it. It's never been a source of topic. But it's important, and especially when we're struggling with finding people here.

14:28

That's exactly the point. So that's why people plays a very important role. The first conversation, the first question that companies have is, hey, what type of people will I find? And the response is, well, what type of people do you need? Right? Now? What if I told you that turnover for companies in Mexico is 60% less than it is in the United States? No way. 60 60% Think about all the training that goes in when you hire somebody, think about the years of experience that they You may have operating a machine managing a team, just knowing the culture of your company. And then having to do that all that investment again and again and again. And again. That's a big number. Right? So that one is the main point. The second point is the financial one. But I want to be very specific here. When I talk financial, I don't mean oh, it's cheap labor, because guess what it is, when you compare Latin America with Asia, very difficult and very, very, very, very few cases, you will find that it is less expensive than it is to operate in Asia. But when I say by financial, it's the whole supply chain, you will need to make sure that everything flows, right via Latin America until you know it reaches your final client. And of course, there's a labor component then, right? It's not as expensive as it is, you know, in Canada or the United States. But it's logistics, it's where are my suppliers? What are they providing? And definitely the people and of course, acknowledge, right? Is there availability for automation? Or even for management systems? Right? What's the cost of that? So all that added up? It gives you a financial picture. So truly, the play here is people and financial. Does it make sense?

16:13

Yeah, it does. Do you find their struggles within sort of the government area?

16:22

No, definitely. Scott, thank you very much for, for asking that. I always say that. Mexico and Latin America need the infrastructure to attract more foreign direct investment. And when I say infrastructure, people think, oh, it's roads and bridges. Yes, that's one piece. But I'm talking business infrastructure. I'm talking making it easy for people to go down there and establish a corporation. Yeah, get rid of bureaucracy, making it easy to hire and let go of people. That is very important. And that's what I mean, the business infrastructure, right, when you show up to a specific state, and they welcome you and say, Hey, we have all this land available. Hey, we have all this people available. Hey, here are the companies that could help you. While there are other states that you call them and let them know, Hey, we're bringing some investors or we're bringing this business to your state. All right, thank you very much. Appreciate it. No need to attract. Right. So definitely the government should be helping more right to, I would call it unite. Right this side of the world. Scott,

17:24

do you see any changes taking place there? I mean, do you see some sort of shift in that?

17:31

I've seen local efforts, once again, each one of these countries is large. Right? So let's talk about Africa, when you show up early on, which is the state of Monterrey right there in the north part of Mexico, very industrial. Right, many, many, many American companies operate there, you can see that there's a business infrastructure, right, you show up? Right? There's particularly investment. Right, which is, you know, it's an organization that is devoted to attract investment. Right. There's attorneys there, there's tax consultants, immediately, industrial developers, you know, show up, but then you go into another state, right? I may not mention any names, I will not mention names, but you go into another state. And you see that it's not seeing treatment. Right. So then you start wondering, okay, why does mobile noon receive a lot of this foreign direct investment? Well, that's the reason. I wish, I wish that countries would take more of united approach and say, Hey, come to our country, and get it done. You know, instead of just being the local governments of each state, because what will happen there is, you know, that gap between the rich states and the poor States will continue to widen. And that's not what he wants, specially in such large, large countries, like the ones that we operate in. The same thing happens in Brazil. The same thing happens in Colombia.

18:50

The so again, back with my company head on. I have a specific need. Nepanoa, Team Napa, Noah says, yeah, here we go, we're gonna do this. A part of that is determining where maybe Mexico is not the place, maybe it is another portion of Latin America. And because their strengths and weaknesses, and whatever, do you guys help with that journey to as well?

19:17

Definitely. Scott. So that's part of the analysis that we make, right? So we had a client, for example, Scott, and they had to do beanies, right, winter beanies, right for our heads. And, of course, you know, for cotton perspective, they'd always huge right, the industry with areas testing, but they initially wanted to go to Mexico. Well, what happened was, well, guess what? Yes, we can go to Mexico, but it's going to be more expensive. Perhaps there's not the necessary you know, volume that you need. And we ended up going to Peru with them. We walked them through what did we do? We got to prove and we analyze how many companies can actually make this product. In particular for them, their beanies are quite special, they have something that is that that is unique to them. So we do require a little bit of product development by The companies that we were talking with over there, but we took them through the whole process. Hey, first, give me an NDA. By the moment, you know, when someone Latin America signs NDA immediately, they're telling you okay, I'm serious about this right? Then second of all, hey, can never talk to some of your customers. Perfect. We do some due diligence there. And then we jump into, okay, here's our client, here's exactly what we're going to be doing. Can you do it? What's, you know, volume cost, you know, the usual. But we can do that, not only in Mexico, but you know, across la time, our network is truly expensive in the region.

20:33

Soon. Good point. I mean, I, I wouldn't know where to start. And and the reality is, is I see the necessity to find trusted individuals to help along this journey. The last thing I want is this saying, Yeah, we're all thumbs up, I'm, I'm heading down to Mexico got an extension of my manufacturing, whatever it might be, and then all of a sudden, something happens, right? And I can't do anything about it. That's not within my wheelhouse of, of capabilities. So it's I, I see that men, but that's with anything, you know, if I'm going to be manufacturing in Asia, it's the same thing. I'm not gonna, I can't do that. You know, so you hit,

21:21

you touch a very important point, because our clients are the companies expanding or working with within this countries. And we'd like to say that we have a lot of relationships, but no commitments locally, our commitment is to our client, we maintain that independence. And I'll give you an example. Somebody may come to you and say, Hey, I heard that you're expanding. And let's choose Mexico, that you're expanding in the state of Durango. Well, guess what, I'll get you the location, you need 100,000 square feet facility. Fantastic. But then that person will take a commission on whoever they bring into Mexico, and then they'll charge you for the service over here. That's not what we do. Right? We're a professional services firm, what do we do is we maintain their independence. And we're able to work with all realtors, with all industrial developers, with all attorneys, we all tax advisors, because we represent your company, right. And that's the only obligation. And that's something very important when you're doing business internationally be able to maintain that independence, but work with someone that knows the rules of the road and is able to navigate

22:24

set our expectations on a typical timeline, I understand generally speaking, right? And it also depends on the product, whatever it might be, but but how quickly can something like this take place?

22:38

So if it's a full expansion, Scott, and let's take the example of one of our clients that built a 125,000 square foot facility in Mexico as their third facility, that project took 16 months, okay? Why? Because there were a solid 10 months in there of just the build out of the facility. Right? Before that, we had to do all the legality of work, right, we had to find the people bring the machines in. So now, that's one of our longer projects, something that is smaller is, hey, we need rubber hoses, literally, in three weeks facility here in Illinois, can you connect someone, right? That's something that that's something that would be pretty short. Now, from a sourcing perspective, usually those projects take from four to six months, because very rarely do we work with companies, Scott, that have a specific need, hey, I need a pen. Right? Or it's usually this is proprietary from my product, and we needed to sign in, and I'm doing it in China or Vietnam. So the companies, you know, when that time we to understand what needs to be done, and there's some tweaking the process. So usually four to six months to vet them, find the right partner, negotiate and then actually start testing exactly,

23:54

that's relatively fast. FYI, I was expecting a little longer. And in that, in the case of your longer project, what 14 1618 months, I still think that that's a that's reasonable time expectations for a long term solution to whatever the pain is, or whatever it might be. And you're along the year along with them in the journey. And that, to me is a very valuable thing. roadblocks. Let's talk about that. So all of this sounds great. It does. I like it. Yeah, don't get me wrong. I think that, that given the way things are, are shaping up out there. I'm all I know, people are always looking for people. They're trying to figure that out. And they're trying to look for capable individuals, and they're also dealing with just churn. Gosh, it is just I'm glad I don't have a business like that because it's hard. I've been there done that hard. So I get the value but but what are some of the pushback what, what would prevent somebody from Xena, I can't spell just deal with my headache over here.

25:03

Yeah, no, Scott. So the main pushback that we have when we deal with clients is I don't know, just as people, we are always afraid of what's unknown, right? We are afraid of going and literally stepping into another country. Right? There's always doubt in there. Is this person going to run away? For starters, will they ever take my call? Right? It happens a lot in technology companies, for example, when you know, they hire someone outside of the United States, and, you know, suddenly that person never connects, right? It's like, yeah, they showed up the first day took a first paycheck paycheck, and then they just laughed. They just, you know, left the company, we we avoid that we help you know, companies avoid it. So that's the first one. The first one is, hey, this is unknown. I have never done this before. I've seen a lot of success and success cases. But hey, I also read the news. Right? And I've seen that it's insecure in some areas, for example. Right. So that one is always the first roadblock. And the second World walk, Scott is the financial one. And let me tell you why. Particularly for medium to large projects, we're talking about an investment, right to actually set up operations abroad. And that's usually is gonna be depending on project, right, it can be as low as $10 million. You know, we had a client that invested $120 million. Well, where does that money coming from? Very rarely, a US financial institution, or any financial institution, different country, you will lend you money for you to place your assets in another country. Yeah. It's just rest, right? We're not going to do that they're not going to do it. Right. But then, okay, let's assume that this company is setting up in Brazil. Well, do you think that our Brazil, you know, financial institution will be like, Hey, Scott, good to meet you. You just made it into Brazil, here you go. $20 million. So there's a gap there. But it's also an opportunity, right? For financial lenders and companies to be able to say, Okay, guess what, particularly in Mexico, and Mexico works out very well, because we have us MCA Yeah. Right, that gives regulations for the region. Yeah, be like, alright, I'll lend you the money. So you can actually, you know, expand your business into Mexico, and your IP is going to be taken care of, and there's a rule of law right there. But those are the two main things that that we face. You know, the first one is, I just don't know what I don't know. And the second one is, Okay, this looks fantastic. I need to invest in it. Where am I going to get the money from right and have the slide.

27:23

And again, it would make me feel warm and fuzzy. If we go through the process and saying, yeah, it's the right decision from a business perspective to be able to expand in Latin America or Mexico, and then be able to sort of wrap it with the right financial and insurance and all of the stuff that is necessary to make sure that it succeeds the way you're supposed to, you know, there's always businesses business. So, yeah, I kind of like that. I kind of like that. All right, we got to wrap up. Tell us how does somebody get a hold of Alberto?

28:02

I'm very available, Scott, you can find me first in my email, which is Alberto. That's Albert. Just I don't know what the end at Napa nola.com. Pretty simple Alberto at Napa nola.com. On Twitter, I am my Twitter handle is at BethelVRL. So that's a little bit more complicated, but it's Beto is the short of Alberto. So it's B eto. And my last name, V as in Victor, I double L. A, WR? e al. Same handle on Instagram. And of course, you can always send us a note to connect at Napa nola.com.

28:42

I really enjoyed this conversation. I wish I'd like to do more. Absolutely. Just because I think it's a topic that I mean, we just sort of skirted on it. I think that you know, when you start talking or start rolling in the say, supply chain, when you start and even even the conversation that wrapped around the financials. I think that that is an interesting conversation as well. Wonderful job, Alberto. All right, let's, we're gonna wrap it up on the inside. We're gonna have all the contact information for Alberto and team Nepanoa, so don't go away. We will be right back.

29:17

You're listening to the industrial talk Podcast Network.

29:23

All right. Thank you again for joining industrial talk and as well, thank you very much for your support. 2023 is going to be a great year. Also. How about that conversation? Alberto Ville rial? Nepanoa is the company you're gonna have all the contact information for Alberto and the company out on industrial talk. So fear not, you'll be able to connect with this fine gent and team Napa Noa. You know, get it, have that conversation, figure it out, look at look at your supply chain, see if there's some ways that you can sort of leverage some other countries to be able to satisfy your procurement your sourcing needs to Napa No, all right, we're gonna be doing also we're gonna be doing is I figure I put my money where my mouth is, you know money rarely, but it is. There are a lot of great books out there. We're going to be doing some real book reports. And be on the lookout for that. And I'm going to summarize them. I'm going to do the reading. I'm going to summarize them. But nonetheless, check it out. We're going to be doing that too, as well. So anyway, thank you very much again for joining industrial talk. Be bold, be brave. They're greatly as I always say, hang out with people like Alberto boom, you're going to change the world. We're gonna have another great conversation shortly. So stay tuned.

The post Alberto Villarreal with Nepanoa appeared first on Industrial Talk.

On this week's Industrial Talk we're talking to Jerry Good, Regional Manager at Amazon about “Leading the way through innovation and technology”.  Get the answers to your “Supply Chain Innovation” questions along with Jerry's unique insight on the “How” on this Industrial Talk interview!

Finally, get your exclusive free access to the Industrial Academy and a series on “Why You Need To Podcast” for Greater Success in 2022. All links designed for keeping you current in this rapidly changing Industrial Market. Learn! Grow! Enjoy!

JERRY GOOD'S CONTACT INFORMATION:

Personal LinkedIn: https://www.linkedin.com/in/jerry-good-2a38bab/

Company LinkedIn: https://www.linkedin.com/company/amazon/

Company Website: https://www.aboutamazon.com/

SPONSORS:

Accruent:  https://www.accruent.com/

Fluke Reliability:  https://www.fluke.com/en-us/products/connected-reliability

PODCAST VIDEO:

THE STRATEGIC REASON “WHY YOU NEED TO PODCAST”:

OTHER GREAT INDUSTRIAL RESOURCES:

NEOM:  https://www.neom.com/en-us

Hitachi Vantara: https://www.hitachivantara.com/en-us/home.html

Industrial Marketing Solutions:  https://industrialtalk.com/industrial-marketing/

Industrial Academy: https://industrialtalk.com/industrial-academy/

Industrial Dojo: https://industrialtalk.com/industrial_dojo/

We the 15: https://www.wethe15.org/

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PODCAST TRANSCRIPT:

SUMMARY KEYWORDS

amazon, package, equipment, 29th annual, product, site, fluke, industrial, magnets, basics, redundancy, conference, fulfillment center, maintenance, understand, technology, talk, data, facilities, performs

00:00

On this episode of industrial talk, we were on site at the 29th annual s MRP conference. And if you weren't there, you missed a lot. So put it on your calendar for the 30th annual SMRP conference. Well already be this year. And you know, we were talking about in this interview, we're talking about innovation, we're talking about the deployment of technology, when it impacts supply chain from one of the leading companies in the world. Let's get cracking.

00:33

Welcome to the industrial talk podcast with Scott Mackenzie. Scott is a passionate industry professional dedicated to transferring cutting edge industry focused innovations and trends while highlighting the men and women who keep the world moving. So put on your hardhat, grab your work boots, and let's go

00:51

right welcome to industrial talk. Thank you very much for joining the number one industrial related podcasts in the universe. And I don't think I'm overselling that one bit. We are once again broadcasting from the 29th annual SMRP conference. We're trying to get our, I guess world back in order. And this is sort of a collection of the best maintenance and reliability professionals around the world. It is that important. And it's a great venue here in St. Louis. And we get to talk to some of the best that I mean, I'm just it's, it's, I'm all giddy because of it. That's what it's all about. And, and we couldn't make this happen. If it wasn't for Accruent. And Fluke Reliability. You got to go out to Accruent. I'm looking at their website right now. And it says solutions, real estate facilities and asset management. It's right there. I'm looking at it right now, gaining insights to transform how your organization manages its physical resources. You can't argue with that. And then of course, I go out to fluke, and you know, the color Fluke has got the big app there. And it's got that classic, gold yellow fluke, and this is what's interesting. You go out there, they break down the barriers between data systems, data systems, and teams by aggregating everything into one place. Yeah, that's dead sexy. I'm all into it. Absolutely. Wonderful. Okay, we're gonna be talking to Amazon. We're gonna be talking with a gentleman by the name of Jeremy. Good, and he is good. But you never heard that before. No,

02:19

never great. Only good.

02:23

Jeremy spectacular. All right, Jeremy. Welcome. How you doing, man?

02:29

Good, good.

02:31

Well, I like that. I like that. Good. Good. All right, double. So anyway, you're here, in at the conference, give us a little background on who you are, and why you're such an incredible professional. And then we're going to venture into what you talked about here at this conference. All right.

02:45

Well, I've got a lot of years of experience. I started off with Chrysler. Actually Chrysler back then,

02:55

I was gonna say in the new saw the acquisition of Fiat, right.

02:59

I saw lots of acquisitions, the merger of equals with Daimler. Oh, yeah. And then then we went to Chrysler Group and then a private equity had us for a little bit we almost went bankrupt. I remember that merger with fiyat. And now the merger with KSA with Atlantis. A lot of and I know after a while we were doing the merger was still Lanta so

03:21

it was funny, because there's just a lot of drama there. Remember that? It was just like, oh, another thing? Oh, another challenge? Oh, yes. Yeah,

03:28

Yeah. Look it. And we had good products. I mean, Jeep Dodge.

03:33

Oh, yeah. No, nobody's gonna debate that. I mean, it was just a lot of drama going on over there was, but look at you. You got a smile on your face. You. You survived. That's right now you're with Amazon.

03:42

Now I am. What do you do? So I am a maintenance Summit, regional manager for maintenance and reliability. So I have a the southwest region right now. And this week, it's gonna be announced that I get a little bit broader responsibility. When I'll have a third of North America for the large fulfillment, the ARS the Yeah, Amazon robotics centers near the large fulfillment.

04:11

Yeah, he's doing robotics. And of course, that's, that's cool, right?

04:16

Well imagine a site with eight to 10,000 robots. And really, yeah, that moves anywhere from 600,000 up to a little over a million packages per day.

04:28

And all the facilities are one facet. What and each one of those is that the type of commerce that is taking place? It's amazing. It's a hell of a stat.

04:37

Yes, it is. And so you think of cell towers is very similar to that. So you as a customer, so their goal is to give you a package in two hours or less. That's where we want to be okay. And in order to do that, you have multiple fulfillment centers strategically located To where if one site is down, another one can then do the fulfillment for that package, roughly.

05:06

And again, you're throwing out a lot of stuff here. But you're saying two hours, two hours or less that I'm on, I'm on your side, I order a home, you know, whatever widget, right? Whatever it might be. When that that process starts, you're trying to fulfill it in, in and in two hours.

05:27

Correct. So if you when you push that button, within the first 12 hours, say within the first five minutes, Amazon already knows what fulfillment center is the least expensive for them to bring that package to you. within that time frame that you have, if you have Amazon Prime, if you're on the coast right now, there, I think there are six sites that can guarantee within six hours of when you order, the little trivia see is the fastest is 12 minutes. From the time somebody pushed the button and was delivered,

06:05

you know, you understand the problem here. You guys are establishing a an expectation. And you're constantly pushing that from, from a consumer perspective, I have an expectation that I'm going to get that product. And I'm going to get that product relatively quick. And I'm not going to wait. And and that is a heck of an expectation. And I think you're disrupting logistics as a whole.

06:35

It's not a bad thing that's meeting the customers.

06:39

And I'm telling you, I love it. Don't get me wrong, man. I'm I'm all big into. Yeah, I need that. I need that. And you make it easy. That's right, you make it easy to get that widget, I don't have to sit there and struggle to find a widget that's there I go there Heck of a business model.

06:57

And that's because we're focused on the customer.

07:02

Yeah, no, no, note that because that is a very important component associated with any business, right? It is, you got it, you gotta focus on the customer, don't focus on yourself, provide what the customer needs solution, right? Solve that problem. Right? Now, all of a sudden, you're just screwing up everything just because my expectations are off through the roof. Now, let's talk a little bit about why you're here the SMRP. Tell us a little bit about the topic that you were discussing, so that you can share with the individuals.

07:29

Yeah, so we talked about challenging the norms. So we have so much technology now that we're losing sight of some of the basics. And without the basics to build upon. The technology starts to unravel.

07:48

Okay, you're gonna have to expand, what are the basics,

07:51

so the basics being knowing and understanding your equipment, seeing how it's the essentials, what we call within Amazon, essential skills, crafts. So knowing that how a bearing performs, knowing what the wear characteristics of different components of, of the equipment, how a motor runs, how, how the equipment at a, at a basic level, whether it's rollers, whether it's pulley shafts, gear ratios, whether it's a gearbox, how those things all work together, and no, no, that not have data just being fed to you saying, hey, the problems over here, and you need to go fix it. If you don't understand the why behind it, then when things change, you end up getting into more more problems. And we're talking about letting, letting software now software and technology have its place, there are tools, but there are tools that need to be grown upon, off of the basics and off of knowing and understanding those basics

09:03

is a part of the basics. The the human element. I mean,

09:10

I mean it is it is and it's it's so probably one of the best tools that break things down to the basic is a filmmaker failure mode with the criticality on how you how you do the maintenance to maintain that the empowerment, so but it is it there there the skills of of what the individual has, when you walk by a motor and you it's using your senses, smell, hearing, even taste is one of the senses. So how is that piece of equipment performing? And I'll tell you one of the examples when you look at a good site to a great site, so you want to go to something where you're running 99% 99.9999% uptime yeah The sites that are different, and that differentiate them are the ones that have those skill sets and do things like critical walks, where they're walking through the critical piece of equipment and seeing the different components and where they're at. And from a health standpoint, and then doing things proactively before they fail.

10:22

Yeah, because yeah, it does. Because your obligation, your fundamental driver is fulfilling that order in two hours or less. That's it correct. And that does not leave room for any, you know, reactive situation where something was breaking broke down, right?

10:38

Correct. On critical equipment there is there are redundancies built in sites.

10:43

If you notice my note down here, I get a little word that says redundancy and might not spell it right. But it does say redundancy, I was gonna ask that question. So when you start talking about critical critical equipment, do you from a criticality perspective? Do you create a redundancy? inventory that looks like you're here? No.

11:02

So Amazon does not build whip in different areas work in process or inventory, right? To help cushion that that those are ways? So right,

11:14

right? Because they are, don't get me wrong. I

11:16

mean, and when you're moving that much product, you've got to look at the equipment and say, okay, the things that are critical to our operation, need to be well known and understood. And the maintenance plan for that, including a lot of machine learning. And a lot of data points are average, I mean, we're five to 10,000 data points in one site coming in feeding information to us on the health of that piece of equipment and how it's performing. And are there other things that we need to be looking at from it, whether it's heat vibration,

11:52

so that's a that's a Iot, right? That's an IoT solution, data collection going someplace. And then there's this the analytics behind that that says, hey, this is just garbage. This is noisy data and noisy data, whatever data you don't worry about that data. But here in this little swim lane here, these this is the these are the data's that that data's is can I say data's there's a gentleman out there that I know real well, and he's a good guy. And I'm sorry, because we're alive. I see how No, don't even don't point way does take time. Anyway. So yeah, and then if you're saying, hey, something's out of parameter or whatever, in this, whatever, analytics, this algorithm, then it notifies

12:40

and notifies and let you know that there's something wrong. Yeah. The thing is, you have to go back and look at the why behind it. Because if you do act on that, and you don't see a result, or you don't see an effect of that, and you need to understand the why behind it.

12:57

But why have the failure? The why of the problem? Why? What would like what, what's that? Why?

13:01

Yes, it is, it's, it's all inclusive, right? You want to know why it failed. So so because

13:09

you don't use for example, with just pencil whipping and then and then just sort of sit there and, and, okay, it's fixed now, but you never understood the why. And it could happen again,

13:17

well, we understand we know enough of the equipment, and how it performs. That it's not the exception, it's not the normal things for the equipment that that catches us off guard. It's the human intervention beforehand, bringing product in that, for example, a bunch of magnets, and they break loose, because they're not box properly. And I got magnets on a conveyor that's going 400 feet per minute, or feet per second. And with diverters, and all kinds of stuff on it, and it just doesn't perform because it's got magnets stuck everywhere. So it's those things like that, that create the, the event that you need to understand. Okay, so now, we need to package this differently. We need to do this differently to make sure that it doesn't happen again.

14:09

Walk us through that process. So you sit there and you clearly you're you're trying to understand the why. Fantastic, that's really important. Where does that go? I mean, that's, that's a human conversation. So

14:22

that goes back into the systems on the inputs. So and we have, there's a term that they use on a product description that shows this product can be packaged only this way, this way or this way. And it needs to be have this much density around it or whatever to protect, really, and then it goes through. So you may not realize there's a lot of those things from the lessons learned. So, we know we have this failure. So now the product cannot be packaged this way the way it was that it failed. Now it can only be package this way and this way.

15:02

So let's say let's say on packaging, I'm the packaging person I'm trying to fulfill this order, then it comes, it comes in on a screen, right? And and I look at and it's magnets will just keep on running with that analogy. So it's magnets. And then I get from from, from whatever interface direction on

15:23

only package in this box, but this material packing material with this tape, and I mean, it lights up for them. So that tells you intuitively exactly what you do and what sequence and

15:37

so so what if it's a new product, whether it's like, okay, Amazon, your process a lot, don't get me wrong, I don't know, if you've, it's like trying to find a domain name. Does it even exist out there? Like all domain names? It? What if it's a new product? So then

15:54

it's tested? In different variations on Bob, really everything else? Yeah, there are some standards that it'll come in at just because of package, right. And there's less expensive packaging, to more expensive packaging as well. So you start with the less expensive, try to make it as reliable as you can, and you work your way up to the more expensive if you need it. So there is a there is a method and a science to everything.

16:22

Yeah, a guy that likes process. Me, I love that I always I was always process something out. This is exciting and giddy. For me. I just think it's, it's the coolest thing since sliced bread. Eventually, I would imagine that Amazon's gonna have put a some sort of monitor in my head. And I don't even have to go to the website. I could just sort of say, I need potato chips. And there it is. And it's like, Oh, it's right there.

16:50

Yeah, we look at your buying habits. So we can have it show up exactly when you do it. But he chips every Sunday afternoon.

16:59

But you do. Yeah. Yeah. Because I do. Yes. And it's it's very effective. Very, very effective. I didn't know I needed those things. But at that particular time, I did. And thank goodness that was right there for me to Yeah. Hey, consider these. Yes. All right. The the last final question I have is where do you see all this going? I mean, that's pretty doggone you're, you're constantly. I mean, every day, every day, every day, you're you're making it more efficient. You're always trying to figure out more better, faster, the Steve Austin approach, right? Where do you see it going? I mean, is there a point of diminishing returns? Or is just sort of That's it. That's life. Well, Amazon's

17:47

extremely innovative. So you will see new markets being developed. So right now we're delivering packages. Pretty soon it's going to be delivering food, fresh food. It could be technology in the home. I mean, it's gonna go go go.

18:14

For somebody that's just founded on impatience. That's me. I am impatient. Amazon is absolutely. Yeah, it's for me. Oh, my gosh, I'm so glad that you. I mean, this is a this is a great conversation. It's pretty cool. Yeah, I didn't mean it. I just I had there's so much more I, I want on my bucket list. I want to just tour one of those facilities just to say it. Absolutely. Look at I know somebody. That's right. And as I stare at you, creepy, but stare at you, nonetheless. How do people get a hold of you? They're saying, Hey, I like what he's talking about. Jeremy is a great guy. He's good. But he's really fantastic. How do I get ahold of

18:54

my email is probably the best good jr@amazon.com All right.

18:59

Once again, I just want to say thank you very much for being on the industrial talk podcast because you were absolutely wonderful. All right, listeners. We're broadcasting from the 29th annual SMRP conference here in St. Louis. It's fantastic. It's got a collection of the best maintenance reliability professionals known to man or woman or people, whatever. And we're brought to you by Accruent and Fluke Reliability, you got to go out to their website because their specialty, they've got great people, great solutions, great company, so don't hesitate. And then finally, just finally, you're saying I gotta get a hold Jeremy. Fear not. We're gonna wrap it up on the OSI, all the contact information that you need to be aware of. So stay tuned. And thank you very much for joining industrial talk.

19:44

You're listening to the industrial talk Podcast Network.

19:54

All right. That is Jeremy. Good. He goes by Jerry. I didn't mention it in the interview. Why? We're at the 29th annual SMRP conference. But you could call him Jerry. I have his email address out and industrial talk.com. They're doing fantastic things as you could tell by the interview, that they're doing incredible things at Amazon big time. It's an exciting time. Now. As we wrap up, I'm reminded of a quote that I just recently heard again, confused minds say, No, don't be confused. We've got to in this in this industrial age, this this innovation industry for Dotto, we've got to educate. That means we've got to do everything we can to consume that content. Because we depend on you each and every day. Because you're bold, brave you dare greatly Jerry is and many of the great people who have been on industrial talk are all bold, brave and daring greatly. Let's change the world industries changing the world because you guys are our people. So another great interview right around the corner so stay tuned.

The post Jerry Good with Amazon appeared first on Industrial Talk.

In this week's Industrial Talk Podcast we're talking to Rebecca Kersting, President of CAP Logistics and Uptime Logistics about “The Impact of COVID19 on Logistics and Supply Chain and solutions for Success”.  Get the answers to your “Logistics and Supply Chain” questions along with Rebecca's unique insight on the “How” on this Industrial Talk interview!

You can find out more about Rebecca and the wonderful team at CAP Logistics by the links below. Finally, get your exclusive free access to the Industrial Academy and a series on “Why You Need To Podcast” for Greater Success in 2020. All links designed for keeping you current in this rapidly changing Industrial Market. Learn! Grow! Enjoy!

REBECCA'S CONTACT INFORMATION:

Personal LinkedIn: https://www.linkedin.com/in/rebeccakersting/

Company LinkedIn: https://www.linkedin.com/company/cap-logistics/

Company Website: https://www.caplogistics.com/

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THE STRATEGIC REASON “WHY YOU NEED TO PODCAST”:

OTHER GREAT INDUSTRIAL RESOURCES:

CAP Logistics:  https://www.caplogistics.com/

Hitachi Vantara: https://www.hitachivantara.com/en-us/home.html

Industrial Marketing Solutions:  https://industrialtalk.com/industrial-marketing/

Industrial Academy: https://industrialtalk.com/industrial-academy/

Industrial Dojo: https://industrialtalk.com/industrial_dojo/

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Business Beatitude the Book

Do you desire a more joy-filled, deeply-enduring sense of accomplishment and success? Live your business the way you want to live with the BUSINESS BEATITUDES…The Bridge connecting sacrifice to success. YOU NEED THE BUSINESS BEATITUDES!

TAP INTO YOUR INDUSTRIAL SOUL, RESERVE YOUR COPY NOW! BE BOLD. BE BRAVE. DARE GREATLY AND CHANGE THE WORLD. GET THE BUSINESS BEATITUDES!

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PODCAST TRANSCRIPT:

SUMMARY KEYWORDS

logistics, industry, solutions, business, people, supply chain, uptime, manufacturing, strategy, sourcing, products, part, customers, industrial, day, transportation, important, agile

SPEAKERS

Rebecca Kersting, Scott MacKenzie

00:04

Welcome to the industrial talk podcast with Scott MacKenzie. Scott is a passionate industry professional dedicated to transferring cutting edge industry focused innovations and trends while highlighting the men and women who keep the world moving. So put on your hard hat, grab your work boots, and let's go

Rebecca Kersting  00:22

Hey, welcome to the industrial talk podcast, absolute honor that you have joined the number one industrial and manufacturing related podcast in the universe. I'm not I'm not over selling that, am I over selling that? But it does, however, celebrate the women and men of manufacturing and industry. We celebrate you because you are bold, you are brave, you dare greatly. You're changing lives and you're changing the world. Why not celebrate you each and every day on this particular podcast? And I'm gonna tell you, again, you're gonna say, Scott, you always have great interviews. Damn right. I have good interviews. This one is no. I mean, she's amazing. Let's just put it this way. She brings definite logistik street cred. Her name is Rebecca Kersting. That's ke r s t. i n g, CAP logistics, and uptime logistics are the companies and she just happens to be the president. Let's get cracking with the interview. All right. Another great interview? Again, I'm not I'm not tired of having great interviews. That's exactly correct. Yeah. Take that one to the bank. All right. Now, you know, I've been talking a lot about collaboration, innovation, and education, with a sense of speed, purpose, focus each and every day. And I think you're going to have to get through this next normal with those components in mind. Okay, you can sit there and say, well, Scott, what about this? What about this? You know, I'm not the sharpest tool in the shed. So I tried to say, collaboration, innovation and education are keys. And they are, and you got to do it with a sense of speed. Now here is, you know, from, from my perspective, one of the biggest industries that got impacted, hammered, if, you know, drop kicked, was the logistics supply chain, sourcing, you know, industry as a whole. And they just got hammered. And with all of the changes that are taking place within this country on how to effectively and efficiently bring in products from outside sources, move it efficiently, and with a great competence, and has just been a real absolute challenge. And so, on the industrial talk podcast, I've been really focused in on solutions, strategies, specifically to the supply chain logistics, and sourcing, you know, opportunities now, because I not a professional, all I know is that this is important stuff. And you know, how I know it's important stuff. Well, outside of the fact that I've been in business for a lot of time, many years, is when I went to the Walmart, to pick up some groceries and realize that that product wasn't there, I realized how important the supply chain world is some to me to make my life better to make my life easy. And you know what? It just happened? pre virus, it just happened, didn't know anything about it, go to the store. There it is. I don't have to think through it. That's what it was all about. Now, with this next normal, what does that mean? Where are we going? What are the challenges? And And honestly, I don't have the answers. That's why collaboration is so important. That's why innovation is so important. Because people like Rebecca, her team at CAP logistics, that's what they they just, they excel at, they excel at solving problems. They excel at the opportunity to collaborate with companies who have really problems on solving important supply chain issues. And then they're always innovative, because it's because it's so fluid, because it has just, it's just constantly changes. You need a company, you need solutions that are innovative, and they never stop educating to see how it rolled out all in collaboration, innovation and education. And you know what? Yes, they do. They do it with a sense of frickin speed. And they're there to help you because they understand that their service is needed. So that you can maintain your uptime, you know, business, whatever that looks like manufacturing with uptime, and they're going to also also make sure that they do it as efficiently and as rapidly as possible. Yep. They embody CAP logistics Rebecca's team at CAP logistics. They embody that collaboration spirit of class. The spirit of innovation and definitely the spirit of education because I'm telling you right now, I can't keep up with it. All right, about that. All right, let's get on with the interview. Once again, Rebecca Kersting KRSTING, President of CAP Logistics, as well as Uptime, and she talks about a little bit of the Uptime Logistics and why that's important to different business models to different focus, all geared toward success. Oh, that. Alright. Here's the interview. Enjoy. Rebecca, welcome to the industrial talk podcast. absolute honor, it is an honor. I'm telling you right now, it's an honor that you in your busy schedule, found time to get on the industrial talk podcast. How are you doing? I am doing great. You're so fun. This is gonna be a good time.

Scott MacKenzie  05:48

And I'm ugly. And on bald? Yes, I'm a complete package Most definitely. Hey, listeners, we I've been very fortunate to be able to work with CAP logistics on a number of initiatives. And and Rebecca is the president of CAP logistics. And we're going to be talking a little bit about COVID, we're going to be talking about the impact of the logistics, supply chain sourcing, and everything in between. and Rebecca, Rebecca brings a tremendous amount of well, street cred to this particular conversation. Before we get into that now, Rebecca, give us a little 411 on who you are, and why you're such an incredible professional

Rebecca Kersting  06:27

in the logistics world. Well, I am humbled by you saying that I have grown up in logistics. My father started our company when I was a year old. I've been in trucks, picking up freight moving it all over the country, I still remember going to the Denver International Airport. With him when I was little to pick up freights been out to mind sites in Wyoming. And so the business was started in our basement. The story goes that my mom would help answer the phones with me on my lap, and she would hang up and we would both cry. I've officially been with the company for 17 years and had a number of different roles. But I love what we do. It's exciting. And it's great to help companies be able to keep their operations running every day.

Scott MacKenzie  07:30

Yeah, I gotta tell you, man, especially now, one of the biggest topics and I mean, I've interviewed a ton of people. And one of the biggest topics is that happened, pre virus, everything, all the supply chain, everything was just happening and just rolling and going and having a fantastic time. pandemic hits, two finger death punch COVID pops you in the head. Now all of a sudden that that supply chain gets disrupted, yet companies are still dependent on it. sort of give us a little background on, you know, the positives and negatives. Of course, we want the positives. But we got to touch on the negatives on where you know, the impact of COVID to your business happen going forward?

Rebecca Kersting  08:11

Well, I think initially, the impact was just a slowdown of the economy. And and these key industries in the country. No one knew what a single day looked like. And so initially, I think the strategy for companies was to address their slowing of business while trying to protect their workers. There was already some tension with us trade. There was some things happening in oil and gas and mining. So there there was a culmination of complicating factors, where we saw a dive in our customers’ business and therefore our business. A lot of companies took the approach of of shutting things down or slowing them down. They looked for opportunities to save costs. So they stopped purchasing inventory. They stopped doing a lot of things that they would normally do to try to save costs, and things just slow down.

Scott MacKenzie  09:23

Yeah, it was overnight. It was it was a flip of a switch, man. It's like, yeah, we're rocking What the hell? I know. I know.

Rebecca Kersting  09:34

And everybody thought that it was this temporary thing. And if we all hunker down for three weeks, then we'll we'll all be free and it just didn't pan out in that way.

Scott MacKenzie  09:46

No, and you know, what's interesting too, is in these conversations and it it's amazing how in being a manufacturer and being an industry, how resilient and flex Some of these companies were like, like, it hit. They had this morning time, like, Oh my gosh, what are we gonna do and then all of a sudden you just boom, and they were able to hit hate using the word pivot. I gotta use a pivot word, pivot, and and be able to try to succeed in this sort of this new normal, whatever it might look like. Where do you see how it's impacting your business? Where do you see this sort of new normal impacting your business in a positive way, not in a negative, we already understand the negative so?

Rebecca Kersting  10:31

Well, there's, there were just so many changes that we didn't see coming. So obviously, there's this whole new gamut of product that people are trying to move in pp. So initially, we saw a lot of that, and you just never would have thought like, there was this business of masks and hand sanitizer, and all of these things that we just never thought of as, as key critical items that people were going to be desperate to move. And then as things began to normalize, we we saw some other industries come back online, and a lot of demand on you know, paper products, or in edrick, salutely.

Scott MacKenzie  11:17

forgot about that. You're right. I did forgot about the paper product one. And I remember, just FYI, I'm leaving Walmart, whatever it might be. And I'm seeing people just stacking up on paper products. And, and I'm telling you, I'm sitting there going, what am I missing? What news? Am I missing that I've got? I do I have to run back and get it? There's no paper products, and I never could understand it. I survived. I'm still old and ugly. So

Rebecca Kersting  11:42

we all do. And I'm bet there's a lot of people who have an insane amount of toilet paper, hoard it away somewhere. Know how long it's gonna take for them to get rid of. Yeah,

Scott MacKenzie  11:54

I know, I hear you. And boy, I'll tell you this. It was really an interesting, the other item, or the observation that I I've seen is that the pre virus, we just took things for granted. And I'm when I'd go to the store, boom, it's on the shelf. I know it's on the shelf, and they had it all nailed down. Right? And and this is just me, humble little guy going to the store, and then all of a sudden, the the virus hits and then bam, I'm thinking to myself, why isn't that on the shelf? And then I realized that the the supply chain is disrupted, it might this one right here might work just fine. But then this one broke down. And then this one, can't you it just I didn't realize how sensitive the supply chain is.

Rebecca Kersting  12:42

Yeah, it is. It is.

Scott MacKenzie  12:46

So let's, let's talk a look. Where do you see it going? I mean, come on. Let's let's put on a little future hat here. Where do you see it going? Okay, we've been past the paper push. And we've been past all the other stuff. And I think I think you're better at this. I think industry is starting to come back up. They're starting to just get a little bit more on out there a little bit more understanding the demands of the market understanding it what this next normal, do you see that in your business?

Rebecca Kersting  13:15

So I am very hesitant to try to predict anything, because Could you be wrong, because I will be wrong. But I have my hopes. And I am seeing some trends that I that I think are in a positive direction. So during the initial part of the pandemic, we really saw a lot of customers and a lot of industries start to look at where they could control cost. And inventories were big item that that people began to cut in with that the transportation of these components, key supplies, things that they were able to put off. So if it was a manufacturing line, or a refinery, they the backups for key components. They put those those orders by the wayside. Now that things are picking up, and they don't have those industries, we are seeing an influx in in the critical need of these parts that are necessary to keep these companies up and running.

Scott MacKenzie  14:28

Yeah, I think you bring up a good point. And I think that as these assets were idle, as you mentioned that I'm going to save money. And I think that everybody's sort of in that beginning saving money mode, and now they've got to figure out how to make money. And a key component to making money is being able to get your products, either from where their manufacturing to destination or their feedstock, into their manufacturing process, and wherever that might be. And I think That I see a shift, I think, I'm not gonna, I'm not gonna be. Don't bet on me anybody out there, please don't. But I think that there, it's starting to ease up a little bit. And I think that people are starting to recognize this next normal, but a key component, you will never ever, ever get away from that logistics that supply chain component. And that's where CAP shines just shines, because you're able to do that in a way that that makes sense. Because for me, if I was a company got my company hat on, I have different needs, I have different demands, I have different insights into what my market needs, and what my business needs, and therefore my sourcing requirements. The other company, Acme, whatever, has completely different, it might be somewhat similar, but completely different. And that's what brings us to this point of being able to sort of customize those solutions. That's what you guys do.

Rebecca Kersting  15:59

That is, and I think that's where we've really been able to help our customers through this time is we're very responsive, we're very agile, and the media are made of problem solvers. Our team is hired, trained, retained, evaluated based on their ability to, to solve problems, to be committed to the customers and their solutions to have a positive attitude and show up. Every time our phones ring or we get a request through our portal, or a text message or however our customer chooses to engage with us. We're there with our problem solving hat on ready to help them through their challenges.

Scott MacKenzie  16:54

See, this is interesting, because especially now in this next normal next opportunity, whatever. I think the the need for solutions like that solving problems within your supply chain within your logistics is even more paramount. Because if you're going to survive, and a key component of that is of course, being able to, you know, manufacturer and get into destinies, and so on and so forth. Today, those challenges are even greater, just because pre virus pre pandemic, okay, it's sort of ran, it was all good. all bets are off, especially when we're starting to talk about new regulations that are taking place globally. I mean, you gotta stay on top of that. I can't meet company. I can't I need somebody to help me.

Rebecca Kersting  17:40

Yeah, yeah, it is. There are just so many complexities right now. And I don't know what tomorrow is gonna look like. So being agile is is so paramount. Yeah. In industry right now.

Scott MacKenzie  17:55

No, yeah, I think that that, that that is a great term and being agile. And so I've always just sort of predicted that to to be collaborative, innovative, and then educate as fast as possible, this ability to be agile and innovative and solutions within logistics, supply chain, whatever. Because some of these, I guarantee, I bet I bet. I'm going to be bowling, I'm going to step out on this limb. I bet you're somebody who's come to you and said, Hey, Rebecca, I don't know how to handle this. This is sort of what we're trying to do. But I don't know what to, I guarantee you that you've got new challenges. And you're going to have to take your team and say, All right, here we go, we got to figure this one out, too.

Rebecca Kersting  18:35

That's that's what our team loves. They don't have any prewritten solution that's templated out for them. Yeah, they come up with the solutions. And not just one in most cases, we're able to come up with three price time options, depending on the strategy that our customer has. So if if they have a part that they know, they don't need immediately aligns not down yet, but they wanted in their inventory, they can look at a mode of transportation that is lower in that is is going to be less expensive.

Scott MacKenzie  19:14

Yeah, you need that. You need these options. You just do you can it's like, you know, one site is size does not fit all, especially in the world of logistics. Now. One of the confusions that I have. And I want you to clarify that. You've got CAP logistics, great company been around forever. Little little younger than your dad. And then you have this other initiative called uptime. Can you explain a little bit about uptime, and what does that mean?

Rebecca Kersting  19:39

So, uptime is is a term that is used very frequently in reliability and maintenance. And so that audience really understands the importance of keeping a line up and running. Because that's how you generate profit. That's how you generate revenue. And so our uptime logistics is really focused on those reliability and maintenance professionals who in the past haven't had logistics in their purview. But to have a complete reliability strategy, they need to have a logistics partner in their back pocket for when their reliability fails. And forbid, yeah.

Scott MacKenzie  20:29

fails, you'd brought up the F word definitely. And but in the real world, it does happen on and reliability professionals, no matter how many PMS they do, or whatever the tools that they're trying to diagnostically, ask, evaluate that asset. Sometimes there's those. Damn, I missed that one moment. So

Rebecca Kersting  20:53

yeah, if we see them, we see them every single day, multiple times a day, some situations are more dire than others. But even even in a situation where a reliability manager has has a part a replacement part for when that part fails. We've seen it where that replacement part goes in, and it fails to. And then what do you do? You

Scott MacKenzie  21:23

panic, and then you move forward.

Rebecca Kersting  21:25

Exactly. And you don't want your crews standing by waiting. For Gosh, knows how long for that replacement part comes in. And you don't necessarily want to rely on the supplier to be responsible for getting you that part. You want to take an active role and have visibility and control in getting your line back up and running.

Scott MacKenzie  21:49

So what I hear you saying and I'll put my manufacturing hat on, I have a damn I missed that moment in my life. And all I have to do is just call you guys. That's it. Like, by here it is this. This thing failed and I am and it's costing me a million dollar an hour whatever it might be. I need a part. yesterday. That's true. No parts too big for you guys.

Rebecca Kersting  22:15

No, no, no parts too little. It's funny. A little does end up being just as important. That's correct. The box the Boltzmann you think that one could live without a box of bolts but we've we've had to do hand carries a box of bolts across the country before

Scott MacKenzie  22:36

but anyway, you guys can handle international and all the way down to local whatever box a bolted. Yep, We sure can and and be able to do it because i what i hear you saying there Rebecca it's, it's a sense of urgency, especially with uptime, uptime, logistics, you recognize the role you play within the world of reliability. And it's all about urgency, getting that asset back up and running, getting that asset, churning out whatever widgets are supposed to be churning out as quickly as possible, or to become attached to as well.

Rebecca Kersting  23:09

Right, right. Now well in our whole business is set up with with that in mind and to stream like line mat and make it very, very easy for a customer who is in a bad situation to get in touch with the right person.

Scott MacKenzie  23:26

24 seven, whoa, whoa, what do you say? Are you saying the fact that these Oh, damn, I missed this moment happened at 2am. You saying I can get a hold of the right person at the right time at 2am?

Rebecca Kersting  23:37

Yep. You will be directed to the person who can help you that person answers the phone, there is no automated phone system. And the person who answers the phone is a transportation expert, who can work with you on price time options and get you what you need anytime.

Scott MacKenzie  24:00

Roll out a beji as schlepp start answering my questions now. It's panic Time Baby focused?

Rebecca Kersting  24:08

Yeah, that's what we do.

Scott MacKenzie  24:11

I love it. And it's exactly what i what i and I, I'm gonna throw this out too. So you, you've been involved in the manufacturing all the spaces Don't get me wrong. I'm just sort of focusing in on manufacturing. So you, you focus in on the manufacturing, you're providing these uptime, logistics solutions. But I would imagine that, like you said, these manufacturers cut back so, so much to try to figure out what's going to happen, what the market is going to look like all of the all of the components that they got to balance. Now they're trying to start their, you know, their lines up again or they let let things just sort of slide are you seeing a sort of a, an increase in the necessity to be able to provide these uptimes logistics solutions?

Rebecca Kersting  24:57

We are we are in There has been some changes to to the, to transportation in our country and in the world, where we've had even change the way we could move those those critical parts to so we have customers who are coming back online, and they're realizing the maintenance that they put off for their part that they decided not to order they need those. And so we are seeing every week more and more companies come back online, more and more companies needing to get back to that bad output that that they were at.

Scott MacKenzie  25:40

Yeah, yeah. And they're looking at data. They're saying, hey, maybe you know, the economy's turning around, maybe some more or greater demand for the price or whatever they're, they're looking at, they're analyzing it. What if I, what if I, do you guys do some warehousing? Or do you work with companies that I don't want to I don't want to buy this motor? Or I see that's the motor over there. But I don't want to bring it in. I want to just keep it over there. You work with people on solutions like that?

Rebecca Kersting  26:09

We do? Yeah, we we're able to help consults on a variety of supply chain issues, including, including warehousing. And

Scott MacKenzie  26:21

because that's all a part of it. It is I mean, if you're if you're if you're uptime, logistics, solutions, CAP logistics solutions, or strategies that encompass that massive industry, and if you're able to do provide solutions quickly, cost effectively. Other strategies. I mean, there's, it's, it's a portfolio, it's like, when we start talking about onshoring, reshoring, and nearshoring, right, there's a there's a focus on trying to figure out sort of a portfolio of sourcing solutions. And it could be, okay, we're gonna keep some over here in Asia, we're gonna put some down here and in Mexico, and then we're gonna put some over here in the United States, and to be able to sort of do that efficiently. You guys do something like that?

Rebecca Kersting  27:10

Yeah, well, I think having a logistics partner who intimately knows your business and can help you develop that strategy is absolutely paramount. Because you may be looking at purchasing and warehousing materials, that it really just doesn't make sense for you to to have that overhead of that inventory, some components that it does, but

Scott MacKenzie  27:36

you're absolutely spot on. I'm not joking,

Rebecca Kersting  27:39

right. But if you have a partner where you're able to have that dialog, and where you know that, if I don't have this in inventory, how quickly can I get it to me? How can I leave it at my supplier? Where I don't have to buy it from the supplier until it makes sense. But I know that I'll be able to get it in a very quick timeframe. Love it. That's a strategy and not a bad one.

Scott MacKenzie  28:07

No, no, not at all. And especially, especially today, you know, I think that we can't be fat, and inefficient with the way we address our logistics supply chain and sourcing strategy. You've got to be efficient, you got to be nimble, you gotta gotta be agile. And I don't, honestly, I'm trying to figure out and I'm trying to poke holes in why I shouldn't engage CAP logistics I am, but I'm failing miserably.

Rebecca Kersting  28:37

Thank you, we'd love to have the conversation with where we fit in. Different companies have have different strategies. I think a lot of companies look at transportation as an expense. And when they're trying to control that expense, they might be going with a lower cost provider. And that is the strategy but but that that low cost provider does come with with other costs that may be

Scott MacKenzie  29:10

I couldn't do it, I couldn't do it. If I'm over here, and I'm, you know, the big wig at Acme manufacturing, there's no way I would be able to take all of the fluid parts within my you know, supply chain logistics sourcing, and be able to do it myself or within a team that is not engaged in it all the time. Because it is a dynamic environment that requires people who are absolutely engaged each and every day.

Rebecca Kersting  29:39

Yeah, and and also that they're with the right carriers. Yes, the right assets to to move. To move the phrase, you want to be working with a trucking company, an airline who isn't going to damage your product, who isn't going to violate yourself safety procedures, who isn't going to cause you more headache at the end of the day?

Scott MacKenzie  30:05

Absolutely. Yeah. See, I mean it's a no brainer for me by the way, we're gonna have to wrap this up because I can talk about this all day long and I'm looking at your stat card on LinkedIn and and you're not very engaged out there on LinkedIn.

Rebecca Kersting  30:21

No, I, I prefer people relationships. And you are, you are virtual relationships.

Scott MacKenzie  30:31

Well, anyway, hey, how does somebody get a hold of you? Because you might have just said, That's who I want to talk to? What do I get a hold of you?

Rebecca Kersting  30:37

Well, you can get a hold of us 20 473 65 one call solves all at 800-227-2471 or you can visit us at Apple logistics comm or you can also shoot us an email at info at CAP logistics calm.

Scott MacKenzie  31:01

Easy peasy. So So listeners out there if you've if you think what she's talking about is important to you reach out, go to CAP logistics, definitely CAP logistics calm and the 800 I'll be out there on industrial talk.com. So there's no excuse. And there's no excuse to sit there and wallow in your your supply chain pain. There she is. a mega Scott and there's CAP Logistics. They've got your back. So there you go. Alright, listeners. Hey, Rebecca, this was fun. Thank you very much. Super fun. Thank you, Scott. Very cool. And listeners do not. And I mean, do not go away. We will be right back. You're listening to the industrial talk Podcast Network. Alright, what did I tell you? Rebecca Kersting ke RS T. img. Now she has a great stat card out on LinkedIn. But however, she doesn't use it. She only has a few followers. You know, you can get ahold of her. That's right. CAP logistics.com. And that's where you're gonna go. Right. And I'll have all the other contact information out on industrial talk. COMM. Right. So again, I'm going to challenge you. You need to collaborate, innovate and educate each and every day you got to do with a sense of speed. But I challenge you to hang out with people that are pro collaboration, pro innovation, pro education, and I'm telling you right now, your life will be changing. Your outlook on life will be changed. This whole whatever we're going through right now, will look differently. Because you're hanging out with people who want to solve problems. CAP logistics is a great example of that. All right, be bold, be brave, dare greatly change the world. That's what we're all about. So we'll talk later with another incredible interview on the industrial talk podcast.

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