Food Logistics serves the entire Printing Industry with targeted content for the large commercial print segment.
Issue link: https://foodlogistics.epubxp.com/i/295107
E very now and then, a company makes their mark with a truly standout solu- tion to an industry challenge. Such is the case with ArrowStream, which is taking the headaches associated with complex freight networks and transforming them into a company's greatest strengths. Recently, Food Logistics sat down with ArrowStream Chairman and CEO Steven LaVoie to get his perspective on the most pressing issues facing the company's customers and how ArrowStream is responding… FL: The software segment is crowded with many capable players and solutions. In the most fundamental way, what makes ArrowStream dif- ferent from competitors? LaVoie: From the company's conception, we asked ourselves, 'Who is ArrowStream culturally? What is our Gestalt?' We knew that ArrowStream had to be provocative in our thinking and chal- lenge the status quo, pushing ourselves to question the underlying assumptions in supply chain strategy. Secondly, it's my belief that life is about relationships and relationships are about commitment. ArrowStream's interaction with customers follows these same principles. We're committed to relationships and delivering the results we've identified to our customers. FL: That's a noble starting point, but how do you embark on this relationship-building venture? LaVoie: Alignment is the key to success. The first alignment involves the customer's sup- ply chain leaders and team—they need to be convinced that there is a significant opportunity for them to tangibly and clearly align with us— and then be willing to take a calculated risk. Next, a second alignment must occur between ArrowStream and the customer. This needs to happen at the very highest executive level, not the detail level. For example, we need to understand how our customer is going to be measured—is it on performance standards? What is our customer telling their CFO or CEO and what are the expec- tations? If there is an alignment on these key areas, it becomes much easier for everyone to operate from the same page so that we can col- lectively meet the overarching objectives. FL: How does ArrowStream's SaaS platform support this goal? LaVoie: Software-as-a-Service (SaaS) allows us to have one release of a software solution, so that the ongoing structure for managing that solution is much more reasonable for our cus- tomers in terms of time, cost and resources. Not surprisingly, customers are hyper focused not only on lowering costs, but on getting a much quicker return on invest- ment, and that's where ArrowStream excels. We understand that if customers can demonstrate a four-month or six-month ROI to their CEOs, it's not going to be ter- ribly difficult to sell them on our software solution. On the contrary, if you're spending $3 million and the best you can do is show an ROI in five years, or even two years, it's much tougher if you're required to make a $3 million capital expenditure up front to get there. FL: Ultimately, the proof is in the pudding. What kind of results can ArrowStream deliver to its customers? LaVoie: We're lowering our customers' Total Cost of Transportation. For one Fortune 500 company, we lowered the Total Cost of Transportation by 7 percent. However, it's not unusual to see results in the 15 to 25 percent range. Just think about the savings if you could lower your company's Total Cost of Transportation by 7 percent. It's worth noting that we're also taking 7 percent of a customers' trucks of the road, which reduces greenhouse gas emissions and fuel costs. Finally, while technology is about lowering the cost of doing business, the other component is service—it's about technology plus service combined. Admittedly, it may take time for some people to adapt to the new paradigm championed by ArrowStream—it's like moving from Newtonian Mechanics to the Theory of Relativity—and we aim to fundamentally disrupt the marketplace in a similar way. ◆ W W W . F O O D L O G I S T I C S . C O M FO O D LO G I S T I C S ❮❮ A P R I L 2014 31 A D V E R T O R I A L ArrowStream Hits The Bullseye 231 South LaSalle Street, Suite 1700, Chicago, IL 60604 Tel: 312-267-4400 www.arrowstream.com FLOG_31_0414 ArrowStream.indd 31 4/4/14 8:29 AM