FOSC chat: Convoy CEO on creating flexibility in the model

This summary is a chat by the fireplace from the first day of the live event FreightWaves The Future of Supply Chain, which takes place in Rogers, Arkansas. For more information and event content, Click here.

FIRESIDE CHAT TOPIC: Navigating volatility in freight markets.

DETAILS: Dan Lewis of Convoy talks about managing ups and downs in the trucking markets.

SPEAKER: Lewis is the CEO and co-founder of Convoy.

BIO: Prior to Convoy, Lewis served as general manager of new sales at Amazon, after working on products and data at Microsoft, Google and various startups. Lewis began his career in supply chain consulting and strategy for Oliver Weiman, working in operations in Europe, Latin America and the United States

LEWIS KEY QUOTES:

On navigation volatility: “It’s like almost trying to predict the stock market. It’s really hard to predict what will happen. I am less inclined to try to be sure to control volatility and find ways to hedge against volatility. Or build a business model and a power model that is designed to adapt to different market conditions and that is why it optimizes. ”

About creating flexibility in the model: “I remember when I was just starting Convoy, thinking, ‘We can predict the market.’ And then at some point I stopped thinking about it. Instead of trying to do that, I want to focus on making our whole business responsive and flexible to what’s going on in the marketplace, in the short term, whether it’s weeks or months … and supporting our customers in that. “.

On the rigidity of some supply chain budgets: “Shippers are required to allocate a really tight and fixed budget. It’s just a way of procurement and the way their CFO expects things to turn out. I think part of that is education in this field, maybe a little bit different. ”

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The FREIGHTWAVES TOP 500 In the list of carriers for rent Universal logistics (No. 23) and Forward air (No. 37).