Mastering the Art of Supply Chain Optimization in Logistics

Ralph Brander brings over three decades of diverse experience in manufacturing management, distribution, and supply chain optimization. His expertise lies in leveraging technology and strategic planning to optimize supply chain efficiency and drive organizational success.

Currently serving as Senior Director of Logistics at Savers, he continues to innovate within the unique challenges of a donation-based supply chain. His strategic approach and commitment to operational excellence make him a valuable asset in driving Savers’ logistics operations forward.

In an interview with CIOReview, Ralph shares his insights on the challenges and emerging trends in the supply chain in logistics and ways to adapt to the upcoming change.

To give readers a glimpse into your background, could you share some defining moments in your career that brought you to your current position?

My journey into supply chain and logistics began with I moved from manufacturing management at Coleco, into the distribution of the iconic Cabbage Patch Kids dolls. During my tenure there, I was involved in some fascinating ventures. I worked on manufacturing the Adam computer, a direct rival to the Commodore 64. I oversaw production of the digital data drive, a significant leap forward from the cassette drive used in the Commodore 64.

Before my time at Coleco, I honed my management skills as a plant manager at an electronics manufacturer specializing in wiring harnesses for mainframe computers. This role provided me with invaluable insights into operational excellence and process optimization and materials forecasting, setting the stage for my transition to food distribution and supply chain management.

My foray into the distribution sector began with overseeing east coast distribution operations for the Cabbage Patch Kids dolls, leveraging my manufacturing expertise to ensure seamless supply chain processes. Transitioning to managing regional distribution for Child World, a leading toy company and a key customer of Coleco’s, presented its own set of challenges. Despite being the second-largest toy retailer in the U.S., Child World faced obstacles that, unfortunately, led to its closure. But those experiences served as a springboard for my career, pushing me to explore new roles and industries.

Venturing into the food industry marked a shift, but I approached it with the belief that, at its core, logistics is about handling boxes with a foundation of common sense. This perspective, influenced by lessons learned at Child World, emphasized the importance of mastering the basics of supply chain, logistics and effective communication.

Moving on, I joined Pro Source, a food distribution company serving casual dining chains, where I managed regional distribution from Chester, New York. A significant milestone in my career came when a customer from Pro Source, responsible for IT at A&P, brought me in to implement a transportation management software solution, which I delivered on time and under budget.  That success allowed me to take on the role of VP of Program Office overseeing a comprehensive ERP overhaul involving 23 projects and over 400 people.

Transitioning to Huddle House as the VP of IT and Logistics, my focus shifted to implementing systems that empowered the organization, overseeing a relocation to a new facility, and optimizing costs while elevating service levels.

My career trajectory then led me to Toys R Us, where I took on the role of Director of Transportation. Here, I had the privilege of overseeing domestic transportation operations while spearheading the implementation of innovative software solutions for the private fleet. Today, I proudly serve as the Senior Director of Logistics at Savers, where I manage and innovate within the unique challenges of a donation-based supply chain.

What unique challenges did Savers face in its supply chain management compared to traditional retail companies?

Unlike my experiences in previous roles at companies such as Toys R Us, A&P, and various food distribution companies, working at Savers presents a unique challenge. 

The fundamental difference lies in the nature of our organization – Savers’ material flow is based on clothing and other item donations made to our charity partners, which Savers purchases, where micro-level details are highly unpredictable. We’re faced with the uncertainty of not knowing whether someone will donate a single bag or a dozen, and the items donated can range widely, from clothing to toys or entirely different goods.

In this context, the conventional approach of forecasting and ordering based on known factors becomes impractical. Instead, our strategy revolves around harnessing the power of large-scale data analytics to make informed decisions. The key challenge lies in aggregating and interpreting diverse and unpredictable donations to achieve an acceptable level of accuracy in our supply chain operations. To address this, we started grouping stores based on proximity, combining geographical areas and even conducting regional analyses. These efforts are geared toward understanding and optimizing the supply chain on a broader scale.

We’re constantly fine-tuning our accuracy levels at Savers, particularly given the unique challenges presented by the donation-based model. Unlike manufacturing plants, where production remains relatively unaffected by external factors like weather, our supply cycle follows a more erratic pattern, akin to a bell curve, influenced by donor behavior. This variability means there are periods of surplus supply and times of scarcity, necessitating a flexible approach to meet demand effectively. To navigate this, we've developed a sophisticated forecasting tool that analyzes donation patterns and distribution logistics. We're refining this tool further, focusing not only on predicting what items will be donated but also on their destination – whether they go directly to our stores or come through other channels.

“I firmly believe in the power of clear expectations and regular feedback to motivate individuals to perform at their best. By fostering an environment where employees feel supported and informed, I’ve seen first-hand how they can drive success within the organization.”

The importance of accuracy in our forecasting cannot be overstated. Not only does it enable us to manage costs efficiently, but it aligns with our mission to divert used goods from landfills, championing reuse and supporting charitable organizations financially. Our goal is to ensure that every donation translates into meaningful contributions to our mission, highlighting the critical need for precision in our forecasting efforts.

How does Savers prioritize supply chain management and technology adoption to drive success, and what strategies do you employ to empower employees within the organization?

Throughout my career, I’ve found success by leveraging technology to enhance the fundamental aspects of supply chain operations. This involves providing the necessary tools and feedback loops to empower employees to excel in their roles. I firmly believe in the power of clear expectations and regular feedback to motivate individuals to perform at their best. By fostering an environment where employees feel supported and informed, I've seen first-hand how they can drive success within the organization.

Savers brought me on board to oversee and manage their newly acquired private fleets and warehouses, a move indicative of their recognition of the importance of supply chain management. It’s a trend I’ve observed in American companies, where supply chain and IT are increasingly viewed as critical functions. Walmart notably spearheaded this shift, recognizing supply chain management as a core competency, a philosophy echoed here at Savers.

What key steps have you taken at Savers to enhance your supply chain operations, particularly in terms of data-driven decision-making?

We’re currently undergoing several upgrades within our infrastructure, particularly in our supply chain operations. One significant upgrade involves implementing a new transportation management system (TMS). Unlike traditional TMS solutions that focus on rate shopping and carrier selection for specific lanes, our needs are unique due to the hyper-local nature of our supply chain.

Our supply chain involves moving goods from trailers held in yards to our stores, or vice versa, depending on demand and inventory levels. This requires a different approach from a typical TMS, more akin to dedicated freight management. Despite this difference, data remains crucial for making informed decisions. Additionally, we recognize the need for a robust yard management system (YMS) that not only tracks the location of trailers but also their contents.

To address these needs, we're working with Envision, a leading technology provider specializing in supply chain solutions. Envision is developing a tailored solution that provides us with comprehensive data on trailer contents. While we already have a proprietary system in place, this upgrade will enhance our capabilities and provide us with additional insights. Ultimately, our focus is on leveraging data, both historical and real-time, to inform future activities and continuously improve our operations based on past trends and performance.

What industry trends do you expect to emerge in the next 18 to 24 months, and how might these impact the trajectory of the industry?

Looking ahead, I anticipate continued integration of new IT tools to align goods flow with customer demand. Despite our unique donation-based model, companies are recognizing the need to re-evaluate traditional supply chain strategies.

The logistics industry faced significant challenges during COVID-19, particularly with halted trailer and truck chip manufacturing, disrupting supply chains. The pandemic highlighted the risks of relying on distant supply chains, leading to a trend toward holding more inventory closer to end-users. The oil industry’s shift toward electric vehicles is also impacting transportation, necessitating infrastructure development. As we move forward, the direction of clean technologies, such as solid-state batteries and hydrogen, will heavily influence the industry’s evolution.

What advice would you offer to emerging professionals in this field, drawing from your wealth of experience and insights?

It’s essential to stay current with evolving technologies that drive progress. For those implementing package-enabled change within their organizations, my key advice is to establish a robust change management practice. This involves assessing your current practices, defining the future state, identifying gaps, and implementing necessary training and support. Such measures facilitate a smooth shift toward updated processes augmented by cutting-edge technology, mitigating the risk of disruptions along the way.