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first 911 but then especially covet as

supply chains have tightened and

integrated across the globe

the

impact of even a slight uh break in

those supply chains become very obvious

to uh

to uh to those who

handle supply chains

so in this uh you know short discussion

we'll be talking a little bit about uh

about supply chains we won't get so much

into historical side of it there's

another webinar that covers that but

we'll be talking largely about

resilience uh and

what covert has shown us

and uh what solutions there are that

exist right now

so with that said and done let me share

my screen

and uh

if if you can't please uh please do

indicate uh on the chat

and uh and i'll be alerted to the fact

that we that we may not actually

you may not be able to see the screen we

can see the screen it's fine thank you

perfect thank you

um so

let's see what we're gonna

talk through uh

specifically first is uh

talking about old versus new supply

chain concepts

and then talk specifically about

something called last mile manufacturing

and how

manufacturing

and logistics are actually integrating

it's not a surprise given the way the

supply chains are we'll get a little bit

into that

and then uh

talk about the this new supply chain

model that we're seeing emerge uh and

which we believe is going to take over

the way things are

so and then finally to q a

so let's talk about

what we called the old supply chain the

old supply chain is what began involving

as i mentioned earlier

in the

in the 1980s

but when we really began to see

transformation of this

was post 2010

and especially in the last five years

the late obama years and certainly all

through the trump years

we began to see the emergence

of

china as a geopolitical

rival

and that's when i think a lot of big

megaphones specifically that of the

executive branch of the us government

got involved but even prior to that when

there'd been well-documented cases of ip

theft

when there'd been a lot of cases of

interruption many of you may remember

the floods in east asia

you'd remember

the shipping crisis there's been many

different

opportunities for transformation for

interruption of supply chains

but never really did they get the amount

of press that we saw

in covet and i won't get into the covid

press because we all know about that

that's partly why many of us are here

um

so

historically early stage

operations were sent offshore

to many different offshore vendors

and

the focus of the supply chain was not in

east asia it is today

however this shifted in the 90s 2000s

and even into the early 2010s

into a dependence on a very dedicated

asia or china-based model the

governments in these countries were

totally behind it they saw this as a way

to

create wealth and wages for their uh

population lift them out of poverty and

they were wildly successful it was a

good bet they simply followed japan's

lead in that regard back from back in

the 1940s and 50s

however

a lot of issues came up uh i mentioned

geopolitics and we all saw

tariffs um we saw the emergence of china

as a as a as a power

and indeed a power that had been given

right it had been given birth to birth

by u.s

outsourcing

risk of interruption we talked about

floods and obviously now we've seen

covet

i.p concerns sensitive information

there's well-documented

case studies of

for example high-speed rail

technology being transferred from

siemens

uh cisco's networking technology giving

birth to huawei and so on

but there were already even early on

issues related to responsiveness in the

supply chain

and many hidden costs associated with

travel

transportation i do remember in the

early 2000s having a conversation

with a supply chain manager from a

now defunct company called palm and i

said don't you think about the

transportation cost of all these goods

that you're now quickly moving offshore

to asia

and the famous last words were

i don't think about transportation it's

just cost of doing business and

that comment just struck me some of the

arrogance of

people in those days

who just ignored the idea of landed cost

and some of the other ills that we're

talking about

so

needless to say the current supply chain

model the old supply chain model is

broken

and

this has been publicized

both

politically and also at the consumer

level with availability of goods

so now let's switch to why this becomes

important and why specifically this

becomes important to our silicon valley

community right why do high growth

companies care about this well

high growth companies care about supply

chain in general and resilience

especially

uh because high-dose companies

notoriously and most companies are

notoriously uh low on capital so capital

efficiency is really important

specifically

um making sure that they've got the

right product at the right time and

don't invest too much of their

limited capital resources in inventory

so if you're a hardware company you want

to be very careful to preserve capital

second thing is high growth companies

by definition can't grow if they can't

scale they don't become high growth

companies then

um

and so uh

scalability of these companies is is

really important

uh their flexibility

uh the responsiveness the ability to

seize uh

short-term opportunities

the ability to expand globally

and again high-growth companies also

need speed

and you know as we put over here reduce

friction

and then finally if you have a supply

chain

that

gives you everything you want but if

there's risk of interruption at any time

and as a high-growth company you

probably not have invested a lot in

redundancy as say somebody like apple

might have

um the resilience becomes pretty

important because if

you're not resilient and your

competitors are they will leapfrog you

and in the high

you know especially in the technology

sector

being high growth means establishing

yourself very early on

um clearly you also want to protect your

ip

that's sort of a

sub

and i think you'll hear about uh

transportation costs you'll hear about

ip as sort of a secondary theme in

addition to resilience throughout this

discussion

so

so

what's the solution to this so over the

last 10 years

we've seen the emergence and indeed

coined this term

called last mile manufacturing

and last mile manufacturing is

our first attempt and it's not it's our

first attempt in the technology business

but it has happened in other industries

specifically in automobile manufacturing

is the ability to kind of change the

conversation around

around operations to make them less

asia-centric

so let's talk about

why why this is right so

i want to be very clear

in no way is this discussion

going gonna focus on

um

onshoring for the sake of onshoring

nowhere does the discussion say 100

offshoring onshoring and no offshoring

this is a discussion about intelligent

use

of offshore

components

and offshore manufacturing but removing

the pure reliance on it

so eliminating the single point of uh

failure

and silo and protect ib analyze

transportation costs all those other

benefits come along with this

so we we all know being in technology

that most technology products are

incredibly configurable

we also know that they're highly modular

and

you know one just needs to look at most

tech products and realize that nowadays

it's a question of where do you get your

drive from where do you get your memory

from where do you get your processor

from are you going to use raspberry pi

are you going to be using

what are what standard components you're

going to be using

and then you limit the number of

specific

custom hardware components and then you

integrate everything with some software

so

if this is indeed the way technology

supply chains proceed which which i

think this group will largely agree that

is the case that

there is

very little need

to

completely tie ourselves to a

single

source that we then become reliant on

a single source that has the ability to

divulge our ip

a single source on which we can see

interruptions

transportation cost discontinuity

uh so on so forth right geopolitical

concerns

the list goes on

so

um

if you look at this little

uh chart uh the our theory behind this

our model behind this is that

there's two

key points on this cost chart

one is if you have hundred percent of

your supply chain chain on shore

um you're going to get a lower cost than

if you have it 100 onshore that's the

model with which the entire

tech community is operated

so the tech community was very sure

about

the intercept on the 100 line

and very secure

and sure about the intercept on the zero

on the uh on the other line which is

zero percent uh

uh offshore a hundred percent onshore

and

people incorrectly made the assumption

that those two are straight line

in our experience what we've seen is

that

the more you offshore

the more you will reduce your costs but

up to a point there is an asymptotic

point touch point somewhere between 80

and 90

at which

some portion of your

manufacturing should be onshore and

should be quote unquote last mile

because this gives you ip protection

this gives you

rapid response to your customers and

other reasons that we'll get into a

little bit later let's let's put this in

a graphic right so if you think of this

being your supply chain

and

look at your front-end piece

being your component suppliers your

contract manufacturer your final

configuration typically at your contract

manufacturer the products are then

transported by air

to your market

which is your last mile and really all

you do in your market is you distribute

your products

you

handle warranties you handle advance

replacement returns a few other things

and

oems typically struggle to figure out

who's going to be doing all these pieces

and they generally find

three or four companies to do it

well our model is different our model

says

the final configuration should be done

on shore

and indeed certain key components can be

pulled in from offshore or domestically

and they should be integrated onshore

also

and this constitutes everything to the

right side of the dotted line

constitutes what we call the last mile

supply chain

which is adding key components

could be software hardware all of the

above

doing final configuration customizing

your product

and doing all the distribution returns

everything in one operation

indeed

we've chosen to actually integrate

logistics also into our last mile supply

chain model

what it then does is it allows the front

end of the supply chain on the left hand

side the command the components of the

contract manufacturing to be largely

commoditized

and can be moved around across multiple

geographies until you find that optimal

fit between risk resilience and cost

so

we have some examples of the companies

we've worked with that started off

manufacturing once contract manufacturer

moved to different ones

cut their volumes to each one but moved

to second tier contract manufacturers

and did not miss a beat

because their supply chain had already

transitioned to a last mile model

now

i want to emphasize one thing eighty

percent or more of the value add is

still being done offshore

so eighty percent of the cost structure

of offshore is still being preserved

only 10 or 20 percent is being moved

onshore

and many of those 10 or 20 percent if

there's one activity one point i really

want you to take away from this

discussion

it's a lot of these activities being

moved onshore actually results in cost

savings

right and we're going to talk about that

a little bit

now

in addition to resilience

and concentration risk

and so on

what you actually do is you get reduced

inventory and reduced transportation

costs and you protect your ip the three

lower bullets from section one of this

slide over here

so you get concentration risk reduce

concentration risk you do leverage

global sourcing as i mentioned

eighty percent of your cost to ninety

percent of your costs are still offshore

you just may get more control

you protect your ip a little bit more

because you're now using more sources as

opposed to one key integrator

typically in china

and you get to leverage lower

transportation costs that's that's a

topic for another day but um

very often just the reduction in

transportation costs

justifies

the change of the supply chain to this

to this model that we're looking at

just the reduced transportation costs

okay

i'll just let you absorb that for a

minute

that by moving onshore you do not

automatically increase your costs you

actually reduce certain costs

transportation

inventory

ip loss

obviously costs of travel and

other things like that

and

what you do then is

structurally create a far more

responsive supply chain because you're

at that point pulling product based on

supplied based on customer demand and

you're not using air freight or air

transportation

to fulfill to your customers you're

doing it right here onshore

and you've also reduced your

concentration risk with your large

contract manufacturer typically based in

china so

um

so

this does require

a far more involved formal involvement

by oems and their supply chain so this

is kind of some key differences right

there's a difference in focus

it's a configuration focus returns

management focus

controls

and ability to control cost logistics

costs

but i do want to say

that oems

if they migrate from the old offshore

based to a hybrid offshore

and last mile solution

need to be thinking more about the

supply chain very early on in the cycle

so

what what what should one look for

you know when looking at a last mile

solution um

and i'm going to use the term

last mile and 3pl interchangeably over

here

that's not technically correct most vpls

do pure distribution but for the

purposes of this webinar let's just

think of last mile as encompassing the

word uh 3pl also

because that's the way we've chosen to

implement it so for oem companies what

they'll need to look for is last mile

solutions

that can manage the material that comes

from offshore

that can configure their product

that can distribute it handle the

logistics

and the fulfillment activities that can

handle returns and repair

and then for some people we throw in

this additional

important

segment of the supply chain also called

demo and pocs so

for those of you that do it you know

that this is a pain

most people have no idea about the

supply chain if you're not in the

capital goods

space

but large capital goods oems

and we're talking about oems over here

large capital goods oems need to send

demos out to their customers

and this is an important part of the

supply chain that

doesn't get much attention but for most

of you the first four blocks are really

important again i'll repeat

bring product in from asia

uh wherever that may be sometimes could

be in europe it could be in different

countries in asia it could be

from mexico

and have the ability to track this

material

plan it procure it

whether you do it or whether your last

mile opera operations partner does it is

a different story

that can be figured out

have the ability to do

uh last minute

last mile technology configuration

software configs final assembly and test

um and basically implement a term that

we hear a lot used in the in the

business is postponement for those of

you that are familiar with that this is

postponement at a higher level

and then important from the same

facility you're doing your building

do all your distribution fulfillment and

even logistics activities in some cases

that's the way we've chosen to do it at

export

because there's additional cost

reductions based on that

and then obviously if you're building

the product you should be able to handle

the returns

many people won't want to do that

contract manufacturers are notorious of

not wanting to do reverse logistics but

we think that's an important piece of

the whole puzzle

for a last mile solution

so i'm in the interest of time i'm just

going to skip a couple of slides right

now it's about 12 30. um

walt um

do do we how much time more time do we

have

we'll we'll use what it takes um

you know we're officially ending

at one but we'll we'll run well beyond

that

i definitely want to leave some time for

q a so yeah um

so

important to obviously find a partner

that is responsive

has

integration all the way from the factory

in asia all the way to delivery to the

customer

important really important to have great

enterprise class i.t

and to have

the ability to analyze the supply chain

with you

uh so what i call cutting edge supply

chain

analysis

to help you improve inventory terms

reduce freight costs a lot of these

kinds of things so so let's talk about

some advantages of this model and then

uh

some of the work uh what some might call

disadvantages uh of this um at the same

time

so

overall this last mile

solution last mile supply chain

centered around last mile manufacturing

means you get much faster performance

you get all the advantages of having an

operations factory right next to your

customer

you get to integrate manufacturing and

logistics a lot of this is done through

analysis

and very important the flexibility in

the responsiveness and the speed to

market tie

the very quick tie back between customer

feedback and your last mile operations

is critical it's very much more

difficult to do that if your product is

made

in

asia ship by boat and gets to customers

you know approximately two to three

months later

uh there's clearly reduced risk and i

mentioned there was going to be

an element of intellectual property and

transportation costs and here you are

again

reduced uh concerns of intellectual

property theft because

as i always like to say

if you're gonna teach

someone how to

if you're gonna

teach someone about your product and

give away all the ip

teach them how to manufacture it and

they'll see all the different

permutations and combinations

and they'll understand the ip better

than the company that just just does the

design

so manufacturing is the greatest form of

technology transfer

and then this supply chain resilience uh

the reason we're all here today

if you're sourcing from multiple

offshore locations if you're sourcing

from mexico if you're sourcing from

smaller contract manufacturers

who are grateful to have the business um

at half the level that they used to give

to your larger cm

you're going to get multiple points of

failure

uh therefore you should see far more

resilience in your supply chain and

there are live examples of this today

right we've seen seen these

you get some reduced cost inventory and

transportation as i mentioned

and then clearly the whole of

outsourcing discussion has this focus on

focusing on core competencies

so so the three kinds of considerations

we made first is

designing your forward supply chain

and you think about

when you as you design your supply chain

you think through the design of your

product how do you want your bombs to go

together which products do you want to

be flown which products you want to be

shipped by ocean

which ones do you want sourced in mexico

which ones do you want sourced in asia

so you think about many different things

here transportation costs

something we call the expansion factor

of the product

let's a analysis analytical term that

extraon uses a value density of the

product also in other words the measure

of the carrying cost

but

uh

looking at how

dense the value of that product is and

does it

support itself to be

sourced globally i'm getting into the

weeds over here but i just want to give

you a sense of what companies should be

thinking about and what we help people

think through

duties tariffs

geopolitical concerns

looking at inventory carrying costs

be to warehousing or be it

the cost reduction of parts mckinsey did

a fascinating study in i believe the

early 2000s saying that for some

technology product the depreciation

curves are 10 per month so as you carry

certain technology products this is

largely in the memory and storage space

but it applies across technology your

inventory depreciates over time the more

inventory you have the worse off you are

and so

that applies to tech it may not apply to

some big bulky parts like sheet metal

say and so we help with that kind of

analysis

clearly ip protection analysis and then

thinking through uh packaging materials

because packaging materials actually end

up being an important part of this you

can actually use for example protective

packaging that comes in from asia

to house your product it can be you can

design your product and your supply

chain that way

similarly there's rma and demo doing a

deep dive analysis of rmas how the

product is designed to be fixed

uh turning those assets and of course

improving the feli analysis loop

uh

very clearly there's scalability

advantages

and

creating different builds of material

structure

so that your product can scale your

product volumes can scale

and

contingency planning for that reason rma

contingency planning obviously very

important if there is some defect and i

cannot tell you the number of times

i have personally seen this happen again

and again where product is

designed for supply chain is designed

and nobody thinks about returns

management piece of this or returns

management is just assumed to go back to

asia very costly by the way

so

um

a lot of other things to think about

the output over here is

customizing your own and offshore hybrid

models right is it 70 80 90 offshore

um or is it potentially 100 offshore i

mean there are some supply chains where

it makes a lot of sense to do everything

offshore

not in technology these are largely

cheap plastic i think your barbie doll

is not well suited to being touched in

the u.s it's going to go into a box in

the factory in a low-cost region of the

world and it's going to go as quickly as

possible to that retail shelf

via distribution center

but in technology products you actually

will do deep analysis as we just

outlined in the last three slides

to think through

how you want to design your supply chain

so they're clearly control and

visibility advantages we talked a little

bit about i.t and having visibility

this is a key advantage to the this is a

key reason why these supply chains are

more resilient because you're stocking

inventory at the peace part level

from

global low-cost regions

and you know exactly what you can build

what products you should market more of

because you have more inventory

and so there is that aspect of it also

but since you actually have this stuff

in your physical possession you're not

relying on a contract manufacturer who

could be interrupted by a competitor or

by the government

by

disruption due to covet or whatever

these are products you physically have

one of the interesting results of covet

we've seen

is that our customers have gone to

higher domestic inventory posture

they've decided to bring in more

inventory at a broken down level

domestically

and

uh will

are

preparing to now stock more

inventory this is part of the reason

behind the massive warehouse capacity

shortage we have across the u.s right

now

for those of you that don't know

warehouse capacity in the us is hovering

at historically low levels

uh right now

west vacancies hovering at historically

low levels right now very hard to get

warehouse space and this is the reason

why companies have just chosen to flood

the channel with inventory because

they're gun shy after covert

um

so with that i'll just kind of go a

little bit about uh tell you a little

bit about

us at extra on what we do and

um sort of a

sense of

how we started down this journey and

why we've got here

um

we're pioneer in last mile manufacturing

we invented the term in fact we

trademarked it we liked it so much

so last mile manufacturing is the term

that we have coined for the technology

industry

to do exactly what we talked about

and that's what we do we do last mile

manufacturing order fulfillment returns

and

logistics then demo and then we also

help companies globalize

we ship over 2 billion a year worth of

product been around for over 30 years

multi-site company

with either our own facilities or

partners uh

you know across the world where fda and

ul registered

we build medical devices that's a pretty

important part of what we do especially

since medical supply chains are required

to have a certain element many of them

not all of them

are

find it

at least required by the customer if not

through regulatory structures having

some element of the supply chain onshore

so the fda registration the ul

registration the iso 9001 and 1345

registration is all pretty important to

us

so

a little bit on those registration on

that registration data

um

so with that i mean if you're in a

startup

you're in the position where you are

concerned about resilience

cost flexibility ability to scale

um you know i invite you to have a

conversation with either paul or i

and we'll help you figure out if this is

something that your supply chain

would benefit from

as i mentioned not every supply chain

does

if you think of a supply chain in a two

by two matrix and

configurability and cost

being the two

elements on off the two by two if your

product is high cost and highly

configurable in that right-hand corner

it is almost certain that you will

benefit from some measurement of some

aspect some level of last mile

manufacturing if your product is low

cost and low configurability like a

barbie doll you know to use that example

that's going to be in the lower

left-hand corner and there's not much

value in that so having that kind of

analysis done for you

experientially based may be of value and

would be happy to share experience and

give some level of

guidance and insight

and uh

help

especially

high-growth companies have improved

outcomes

uh i could give you case studies after

case studies

of companies that have done this and

it's it's actually very uh

it's very illuminating to see

the benefits of not having a really long

supply chain that stretches back two or

three months into asia

so with that i'll sort of end thanks

very much um

spent about 45 minutes doing that

hopefully that leaves enough time for uh

further discussion

yeah well thank you sandeep this has

been very interesting

uh i'd like to let people know that

after we're done with the questions

there'll be time for networking we want

to give people an opportunity to meet

each other since we're not doing this in

person

but we can do it almost as well as if it

were in person

uh

i send your questions you'll have a

chance to either send them

with uh

the

chat or you can unmute yourself and ask

them

and

sandeep i'd like you to to ask you to

show there's an early screen where you

had a chart

and it was too small to see if you could

switch to

full screen mode

where then we could see that chart do

you know which one i'm referring to

to change to the audience view versus

the presenter view and then the chart uh

walt that you're requesting it was it

was in one of the early slides with the

chart in the upper left upper right

corner oh okay i think you mean this one

over here then walt um

let me share that

is this the one

yes that's it okay thank you um yeah i

did not spend much time on that i hope

you can see this

you would show it in

presenter view

uh

audience view that's right okay

finally tell me how i would do that

uh

let's see if you're using

a

powerpoint there should be a button down

in the at the bottom oh yeah yeah i'm

definitely doing that this is already in

a presentation uh we're seeing the

preview slide as well as your slide

ah okay

excuse me for that let me try that again

and if you've got no there you go is

that better okay yeah yeah um

so that in that case you probably saw

that the entire way so apologies for

that um

yeah this slide i

i didn't realize i was showing you the

preview version the entire way but this

is a slide that we talked through

um

thinking about the architectures of your

supply chain especially for

uh

emerging companies for rapidly growing

companies

a way of looking at supply chains how

much do i have onshore how much do i

have offshore

and

this chart in the top right hand

basically quantifies

how much

what your costs are relatively speaking

if you go offshore 100

or if you go onshore 100

so if you the

the x-axis is the percentage of the

offshore supply chain

so

on the right-hand

axis

on the on the right hand uh

uh you'll see zero percent offshore

which means domestically

your relative cost is one

and as you begin to

offshore your costs come down

well everybody always expected that the

costs

generally speaking are around 50

landed when they're 100 percent

offshored of when they were 100

unsure

but people incorrectly assumed that this

was a

straight line connecting those two

points

what our studies have uncovered is that

there is extremely imperfect

uh cost structure

in that last 20 percent

covers intellectual property

transfer which largely in software which

is a final uh

last mile manufacturing element

transportation

because as your products get bigger they

become more expensive to transport

um as you build more products you

increase your inventory costs

uh if you do 100 offshore

so the idea is that if you transition

some element of your

modules offshore and do say 80 of your

product you will have an asymptotically

low value

at somewhere between 80 and 90 percent

offshoring

so in other words you keep a small

amount of product onshore

of configuration activity onshore of

manufacturing activity onshore and you

get a very high leverage for that

thank you cindy

that's it and so this slide basically

speaks to that right eliminating single

points of failure reducing cost

protecting ip

and doing only this final configuration

work

on configuration high value density

elements

onshore

and you can actually look at this as

companies grow

thinking of the early mid and mature

enterprise

and how this impacts them at their at

the different stages

so i've got a question for you that you

may or may not be able to answer you've

dealt with

part of our supply chain problem that's

the transportation

another problem that we have is some

parts are just not available worldwide

is there anything that can be done

to ease that problem

um i think that is actually

a result unfortunately of such a highly

offshored supply chain yeah

there are some things that can be done

but if you're talking about

semiconductors that's a far longer

conversation right a lot of these

shortages are semiconductors today and

so that's a far longer and long short of

it is that that's much harder to work on

however

the reason why companies are bringing so

much

semi-finished inventory back on shore

the warehouse shortage that i was

talking about earlier

is exactly that reason

that they're now realizing that

until supply chains

rejigger themselves redefine themselves

and until that sixty percent of

semiconductors that are done in taiwan

and uh

packaging and korea and the packaging

that is done in

thailand and malaysia until that sort of

gets globalized and more of it moved

onshore

um

probably through government action but

we shall see

that until that time

happens

people are going to have to fill up fill

in the gaps through inventory

and

uh

some element of domestic uh integration

which is basically what what we're doing

with many of our customers right now

okay

um there's another question

when is the right time to

either at this the right time or the

right size of the company

to start thinking about the supply chain

you know if i'm

just doing my early research i don't

even know what my product is yet it

might be too soon but

if i wait until i'm in

volume production that's probably too

late when is the right time

uh it's it's never it's never too early

if you're a hardware company

you need to think of your supply chain

design when you're designing your

product

so at the time you're designing your

product you should be thinking of your

supply chain characteristics

how your product's going to be

configured

and

thinking through the design of the

supply chain and thinking through who

you want your partners to be certainly

their characteristics maybe not the name

of the partners but the characteristics

of all those partners

second tier third tier contract

manufacturer in asia what you want to do

in mexico

so on and so forth

okay

um

so

how come companies haven't figured all

this out

you know there are a lot of companies

that aren't doing what you just

described

uh why is that

i think uh walt

can be answered just in one word it's

inertia

companies

basically

people are linear thinkers companies

are made up of people so companies

become linear thinkers

this was the way of doing business

offshore to asia to china

eventually have everything done over

there it's easy right you get a you

design something and your box shows up

it's

what could be easier well we've just

found out

that

going out of business might be easier in

some cases

when you run out of product

so

um so people are linear thinkers and

that's what they've done and it's we're

finding out

in historical terms very quickly right

this this level of outsourcing only

happened less than 20 years ago and here

we are

everything's been shaken to its core

20 years is not a long time

that's really

it i'd like to jump in and make a

comment you know to your question about

why do companies not do that

so the other flip side of that is there

are some companies that do right i mean

two three years ago there were companies

uh already moving product out of china

and doing the manufacturing in latin

america and mexico and well ira as an

example

and you're involved with that uh

but also i think

now there's there's a new

the the reason they don't lose a lot of

it is they don't know and what we're

finding out that is that i mean there

are obviously a lot of companies that

are very successful but

there's a lack of education about the

options because they've all drank the

kool-aid that is cheaper offshore but

they don't understand the business risks

accordingly going back to your question

about

is there a way to mitigate the the

shortage of product actually there is we

can help source product in advance if

you're dropping costs down and holding

inventory you can use that to hold

smaller components and bring that in

shipping in a container right now so

costly from china we can help bring the

components in

show up and bring in advanced products

the components you need not the entire

product

bring them in and we can help with the

procurement as well so there's got to be

some creative thinking

to understand that the game has changed

it's not just about finishing the

product bringing it here warehousing and

shipping it out you've got to get

creative about getting multiple sources

of inventory

sourcing multiple

places to bring redundancy and

resilience into your supply chain

inbound

because now we've got the skills with

the fda certification if you've got a

medical device product or iso

certification and things like that

where we can then complete the product

and if we start with you

when you're on the design element and

make that modular you bring a lot more

flexibility i.e resilience to your

supply chain

and we think differently as in we help

with even procurement

at that level

the cost of a container today is like

you know 300 percent of what it was in

19

is very very costly so it's time to

think very very differently about all

the moving pieces and you can never do

that early enough you've got to think

about it the moment you think about a

product that's that's the way we've been

helping our best customers in fact we're

taking it even further

and in some cases somebody might get

upset with me helping with

implementation and install i mean look

at our demo

solution a demo solution is where we can

actually help clients you know because

guess what your sales guys are not on

the road you don't have employees going

to customers customers don't want to

meet the people

so we can actually send a demo unit out

for a costlier product let them test it

out and then send it back or purchase it

we've got the software to manage that

that's a very complicated thing to do

and then we've got the skill to

refurbish the return units and send them

out as your b stock

that's us extending the value chain

helping your value to be resilient for

the changes in the market

that's the kind of thinking and

education that we bring to the table and

we'd like other people that's sort of

the long answer to your question why

we've got to think differently because

the market is bringing a lot of giving

us a lot of challenges

yeah thank you

uh

so

sandeep you said you've got examples of

uh

situations where

what you're doing has helped out can you

give us some examples of case studies

um

plenty i think there's uh case studies

in both the consumer sector

in

uh medical sector and then uh

non-medical technology sector

so

without naming any names i'll tell you

you know large

connected fitness

[Music]

provider

produces a lot of their product in asia

but leaves the final integrative

software

to be done and it's a very quick

activity

it needs that to be done

right here in the u.s why because they

don't want that the key elements of that

software which tied together a number of

complicated systems to be exposed to

their contract manufacturer

consumer

card memory card manufacturer

rather than packaging out all their

product

in asia and flying it in

flies in very small

cards you know about half the size of a

business card a quarter the size of

business card 10 the size of business

card depending what you're using

rather than

doing all that configuration in asia

realize that just the transportation

cost savings alone

meant that those products could be

packaged right here in the us and

packaging is a form of configuration

you've got to think about any processing

that

configures your product

as being a candidate for being done

domestically packaging software edition

of course classic final assembly and

test

all these kinds of examples

all right very good

do we have any other questions feel free

to

unmute yourself and ask the question or

send it in on chat

you must have answered everybody's all

of everybody's questions it was well

done

we're good that way

[Laughter]

yeah oftentimes this this is just uh you

know and i apologize if it was too much

information at one time but

uh supply chain is an

extremely important area

and

a lot of companies get involved in the

supply chain

very late in the process i think about

supply chain very late in the process

and

could not

could not encourage people enough

to start doing that early rather than

late

well it looks like most companies

don't think about this at all they just

said

all over to china

yeah yeah

so think of supply chain design i think

is critically important

well if there are any other questions

i'd like to give everybody an

opportunity to introduce themselves

uh it's it's good to know who's here and

when you hear somebody introduce

themselves you can follow up afterwards

and meet them in person

we'll we'll make emails available as

much as we can but if if you don't have

emails on meetup you can also contact

people

so

uh

let's see well we've already met paul

and sandeep

uh rio is sitting in the background

everybody gets to know rio

eventually so let me start here and

who i'm seeing on my screen

uh duval

would you like to introduce yourself

sure yeah i'm double shot i'm based in

fremont california this is a wonderful

uh

lecture all the details actually are

good to understand it better

and um

yeah i work in the machine learning ai

space

doing a startup thank you all right

thank you

uh dk i'm not sure who that is with

initials dk would you like to introduce

yourself

if you don't care to we can move on

uh

doug nesbitt uh please introduce

yourself

hi i'm doug uh i work with blue rocket

marketing and i actually work with paul

and sandeep on the x-run as long as as

well as a few other technology companies

doing marketing work

very good

and

michael k

uh would you like to introduce yourself

good afternoon walt

oh this might be here

yes it is

yeah well uh nice presentation and uh

my name is michael kear i run uh i'm out

on a walk so it's a little loud

apologize for the noise but uh yeah i

run a consulting group called product

realization group which uh

is focused on helping companies make the

transition from

uh concept to full scale so we've done a

a number of projects with xron and uh

you know kind of uh have had a very good

experience with

getting them involved early with client

activities to help uh you know better

manage the overall end in supply chain

delivery logistics you know repair etc

so

so uh yeah appreciate the the the talk i

thought it was very good information

yeah

thank you michael

um

let's see we've got uh elec alex

alex l

would you like to introduce yourself

no

uh

alex may not have a

audio ability

and there's also heartwood

would you like to introduce yourself

if you don't want to introduce yourself

by speaking

uh you're welcome to send a chat message

uh

your networking is a really important

thing to do

if you ever lose your job

where do you go for

to find another job the first thing you

go to is everybody you know because most

jobs never even get posted you won't

know about them if you don't go to your

Evlla Supplier Network so i like to help people network

it's

the key to success as i've discovered

after a lot of experience

all right and walt you do it really

really well

networking you and i've had a lot of

conversations

and uh you're easily the one of the best

of the best

thank you for your kindness

you opened a lot of doors

rio will as much as possible uh help

connect people if you can't identify

somebody or reach them rio can help you

out

uh rio would you send your email address

uh and if you can't reach rio you can

reach me

uh my email address was was put out

there i believe

uh

so

i'm happy to to help anybody with their

networking that it's the best thing that

you can do

okay see thank you rio there's your

email address

i'll put yeah

hey well if i if i may if i'm still uh

audible just one suggested i've seen on

other meetups that you may want to think

about is

having people put their linkedin

information on the chat and then they

can connect on on that way as well just

the thought excellent so either linkedin

or email

if you'd like to meet people

just that's a great idea make that

available good idea

and rio's making sure everybody can see

uh some of the well the speaker's email

for example if you want to contact

sandeep

well thank you everyone and thank you

very much sandeep and paul for

the presentation

uh it was a very interesting one

thank you appreciate it thanks for the

opportunity you're welcome

good

okay i'll see you everyone michael good

to have heard from you we'll be in touch

it's been a while thanks for these

meetups

thank you to all everyone stay safe and

we deeply appreciate your attendance uh

this has been recorded and presentation

slides will be shared if you email

directly paul or myself we're happy to

do that and stay connected uh this is a

community effort

and you're you're very important to all

of us

bye for now

thank you bye-bye