Supply Chain Therapy with Flexport and Caraway

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Mark Riskowitz
We're obsessed with automation. I think my team probably goes a bit stir crazy when I mention it every single day every week, just in the sense of trying to get into an operating mode where you're in that exception management posture as much as possible and really just free up a lot of time for critical thinking and more fun and exciting types of work. And so we leverage automation tools, AI, data, you name it in really as many places in our supply chain and overall operation as we can. And every, I would say at this point every month, we're learning something new. We're testing a lot. We're trying to just get incrementally better over and over again. And it's a fun time to be doing it.

Claire Sullivan
hi, I'm Claire Sullivan, branch manager of the New York City office with Flexport. And with me here today is Mark Riskowitz, from Caraway.

Mark Riskowitz
Hi, Claire. Thanks for having me today. Thank you. Excited to be here.

Claire Sullivan
Thanks so much for joining us. Of course, I know we've worked together for many years, so just wanted to take the time today to dive into Caraway and learn a bit about your business, what makes it work so well and the partnership with Flexport over the years. So to start, why don't you take the time to introduce yourself and your role at Caraway? And we'll take it from there?

Mark Riskowitz
Fantastic. Yes. So, I am mark the VP of operations at Caraway to us. That means supply chain systems, customer experience, a few of the other things like compliance and biz ops here. And there, I've been with the company for about six and a half years and it's been a fun journey, an exhausting but exciting journey at the same time. And we are a modern kitchenware brand that attempts to sell more sustainable and safer alternatives to what's on the market today for kitchen products, like cookware, bakeware, food storage, all designed with the idea of beautiful aesthetic, high utility and just a safer choice for consumers.

Claire Sullivan
Definitely. So, I know a hot topic right now in our industry and it feels like every industry is AI and automation. So, can you talk a little bit about how Caraway is using automation in your supply chain today?

Mark Riskowitz
Absolutely. So we're obsessed with automation. I think my team probably goes a bit stir crazy when I mention it every single day every week, just in the sense of trying to get into a operating mode where you're in that exception management posture as much as possible and really just free up a lot of time for critical thinking and more fun and exciting types of work. And so we leverage automation tools, AI, data, you name it in really as many places in our supply chain and overall operation as we can. And every, I would say at this point every month, we're learning something new. We're testing a lot. We're trying to just get incrementally better over and over again. And it's a fun time to be doing it.

Claire Sullivan
Yeah. And I know that when we're working with your team, they're constantly challenging us in terms of automation and AI and other providers that you're using and how Flexport can work with them and support you to support the overall business need, which just makes it equally as fun and exciting for us.

Mark Riskowitz
Yeah, they can be pretty persistent.

Claire Sullivan
They're the best. So with that Flexport had our tech release this morning, which a lot of our new products are backed by AI and automation. Are there any in particular that stood out to you that you're excited about to expand on with the Flexport partnership?

Mark Riskowitz
Yeah. I think it was a really exciting release. Definitely brought a lot of hype and energy into the room. And I think the thing that stood out which is interesting for us is that we're pretty sophisticated in our tech stack in the sort of bi engine that we have going and the capabilities that it all brings. But you still have to build, you still have to maintain monitor. And I think what's really exciting about the new tech release is that you can do a lot of the things you would otherwise need bi tools or workflow automation tools to help configure and set up and then maintain. You can just do it all within the Flexport platform now. So I think the conversational analytics is something that I am a massive fan of. You know, I connect Claude up to our different tools. I use chatgpt all the time and I like that idea of trying to communicate, you know, with something that's going to deliver a graph and analysis or something like that in, you know, minutes as opposed to trying to figure out the best format, the best sources and everything. So really excited to dive in.

Claire Sullivan
Yeah. And I know that Caraway has been such a wonderful partner the past couple of months as we've been going through beta releases for a lot of these tech stacks. The one being the insights builder and your team has provided such valuable feedback on the insights builder, what questions they've been asking to almost trick it. And that helps us just make it better and better especially for releases like these. We're always looking to improve. So we always appreciate, when they come to us.

Mark Riskowitz
Yeah. And it's the first thing they ask when they get access to any beta tool, is I see it all the time. The question is, are we allowed to leave feedback if so, where can we do so almost immediately? And it's I think it's really enjoyable to work with a partner where that feedback is turned into output and there are iterations or changes and improvements made based on that direct feedback. And it was, you know, a great theme covered this morning that what customers are asking for is what essentially is built and I think it's you know, it sounds straightforward and simple, but a lot of companies struggle to do it. We're just excited to be a part of that journey definitely.

Claire Sullivan
So, Caraway has been working with Flexport for over six years now. And one of the initial products we scoped and partnered on was Flexport Capital. So can you talk a little bit of the initial interest in Flexport capital? What value it brought to Caraway? And then we can take it from.

Mark Riskowitz
there, absolutely. So we're pretty seasonal in terms of our business, a large chunk, of revenue. And therefore our inventory purchases are tied to specific months in the year. We kind of back into that through being heavy into Q4. So, you know, a lot of, those initial deposits and balance payments, are due all together at certain times of the year. And so, as a young company, it's difficult to get access to vast amounts of capital when you don't have a lot of data to prove that you're a safe option. And I think that's where the sort of idea or concept of flexible capital was very interesting and beneficial to us because we could essentially tie some of the collateral in the form of the inventory that we're moving kind of, as, a guard rail for any concerns or risks on Flexport's part. So we looked at that as a really easy to access tool. I think setting it up was straightforward. I think actually deploying it, was even easier and it was just a really great way for us to get off the ground and, you know, start building our working capital cycle and process to a point where we actually no longer needed to leverage it since we were in a good space.

Claire Sullivan
Yeah. So you mentioned that you no longer needed Flexport capital, which is really the whole idea of the product is you become so big that you no longer need this financing arm. So what ultimately led to the decision of, hey, we've outgrown this? And what milestone did that mean for you at Caraway as really the front runner of this conversation almost six years ago?

Mark Riskowitz
Yeah. It's a great question. Part of the answer to that is that we essentially didn't look to an alternative. We didn't need the financing, which I think is a very different conversation. I think some might assume that we found alternatives that were cheaper or we had access to a deeper pool of capital. In our case, we didn't replace flexible capital with something else. We got to a point where we got really just big enough in our operation to negate the need for anything like that or at least at that scale and that sort of immediacy. And so when that moment happened, it was kind of a big wake up call and it was a fun one where we realized, okay, we're pretty big. This is working. I think as we started moving our working capital structure around a bit and found a groove that really worked for us. We then recognized that, okay, we're actually a business now. So it's exciting to sort of start this new chapter.

Claire Sullivan
What advice would you give to young E commerce brands that are looking to leverage a financing arm based on your experience?

Mark Riskowitz
I would say try to do all the homework you can. They are, there are copious amounts of options out there and I think some have very suspicious fine print. Some are not necessarily the ones that are easier or sound too good to be true, generally are, yeah. But I think really trying to find a solution that comes off the base of a strong partnership is in my mind, one of the most fruitful you could find. And so, I think it's a lot of work up front. But once you identify that ideal partner or that solution, maintain it, be good to it. And I think the rest will work itself out. Yeah.

Claire Sullivan
Switching gears a little bit. Caraway is a wonderful brand in the marketing space. Me myself working with Caraway day in and day out, I'm constantly getting ads and I love the.

Mark Riskowitz
Product. As long as you don't click on them, we're happy I.

Claire Sullivan
don't so tell us a little bit about how you collaborate with your growth and marketing teams from a supply chain perspective.

Mark Riskowitz
So with us, it's really about democratizing access to inventory information, order information. Anything that can arm those teams with just a lot more layers to what decisions they have to make or what campaigns they're exploring. And that, so I think it all centers on what information do we have across our network? How can we really just pipe that information into a mechanism that allows us to then surface it in a very easy to articulate and understand way for everyone in the organization? So, we've made some really exciting strides with that. Where today, I'd probably say we feel that most of the companies and the best state they've been in terms of understanding what exists, where it is, how much inventory we have by warehouse, when those next inbound dates are coming in and that's all just connected through this magical ecosystem of tech and integrations. And what have you? Yeah.

Claire Sullivan
And with the collaboration between your team and the marketing team, what does the cadence of that look like? I would assume they're talking daily to a degree, but do you have formal cadences with these teams to review all the data, the automation, the AI insights that you're getting from your various vendors? Yeah.

Mark Riskowitz
That's a great question. We essentially don't have a standing session for the general teams. We like to run our meetings or calendars with intent and efficiency as much as possible. And because we're a fully remote company, we're always on slack. We're always communicating with each other. And so there's no barrier to communication. So often it just happens in slack, we huddle a lot, we exchange voice notes. And then of course, the sort of project or campaign based meetings do get thrown onto the calendars at times that make the most sense. If you can find a time with all those stakeholders that's a pretty big achievement for the organization. And so we try and understand that with that pattern giving more and more access for folks to self serve and find on their own. Just seems to be the best approach to keeping up speed, keeping up recency, really floating those trends or that information to the points of the business. It needs to be as often as.

Claire Sullivan
possible. Yeah, I'm very familiar myself with no meeting Mondays at Caraway. Yes, I'm on a campaign to bring it here. I'm.

Mark Riskowitz
sure. You've had a few meetings rejected over.

Claire Sullivan
the past couple of years. Yeah, I have, and that's why I'm familiar if.

Mark Riskowitz
Anything I'm the worst culprit, I try and advocate as much as possible to avoid those meetings but I'm the same one that then is like, well, you know, if we just grab a 20 minute slot here, I'm sure everyone's.

Claire Sullivan
going to be understanding everyone's founders open. Yeah. So with marketing, Caraway has expanded a lot over the years into different products for your business. Most recently, we supported from Flexport's side, the wood cutting boards, the wood utensils, you've done food containers, talk to me a little bit about the strategy behind those expansions and some of your biggest learnings over the years.

Mark Riskowitz
For us, it's really about how can we take over the kitchen? I would say within reason, I think we're not going to start competing against Ge anytime soon or something like that. But for us, we really look at cookware as the anchor or the invitation into the home as the most intimate part of the kitchen. From that point on, we try as much as possible to expand into what makes the most sense beyond that moment. So when you're cooking or when you're preparing your food, what are the items and materials that you're using to do so? And then at the same time on the other end, once you've finished with your food and you're storing it, what products could we expand into that cover that sort of cycle? Right? And so, I think what we've learned is our customers are really enthused at safer beautiful looking and high utility products. And with that mentality and those kind of three core pillars, we try to launch into new areas of the kitchen to just replicate that same pattern.

Claire Sullivan
Yeah. It resonates a lot coming from a family who loves to eat. All of our gatherings are in the kitchen. As much as my mom tries to push us to the dining room.

Mark Riskowitz
Fantastic. What's your favorite meal to make?

Claire Sullivan
I would say my favorite meal to make is tacos, and I love to use the grill in like all areas. Fantastic. What about you?

Mark Riskowitz
So I probably shouldn't be saying this, but grilling outside, you know, on a beautiful summer day is my thing to do. So steaks, chicken thighs, a little bit of corn, something like that.

Claire Sullivan
Now that you're out in the suburbs.

Mark Riskowitz
Now that I'm out in the suburbs, exactly, I have the space to do it this time, so, absolutely.

Claire Sullivan
So what is your favorite Caraway product?

Mark Riskowitz
That is a great question but a very obvious answer. Definitely the food storage. Yeah, it's great. I don't know what it is because I have always just been one of those people that have grabbed whatever box tupperware I have and, you know, thrown my food in, but I now am finding myself wanting to cook extra just so that I can store a food into those containers. Interesting and it's pretty weird but it's more economical that way in any case. And I think the coolest thing that I've ever done is which I recommend everyone to try is I always had this issue with avocados going off after a day in the fridge. You know, you try aluminum foil, you try wrap, you try anything. But in the Caraway food storage containers, this is not a plug. They can last three, four days at times get out, yeah, and maybe a little bit of browning if it's not fully sealed. But it is probably the coolest hack that I found. And now my fridge is full of food storage containers with avocados in them.

Claire Sullivan
Well, we need that in the northeast because from an economical perspective, we're paying an arm and a leg for avocados out there.

Mark Riskowitz
Oh, yeah, exactly.

Claire Sullivan
So you mentioned mark that your favorite product is the food storage. And I'm curious you have recently joined the father club with your, I have indeed thirteenth month old daughter. Has that had any impact on Caraway's products from your perspective and how you use them and how you see them?

Mark Riskowitz
Absolutely. I mean, I was talking about the avocados, most of them are for her. She has a fair share and yeah, we bulk up food. We store it in everything we have. Our food storage containers are always full and it's hard to find a spare one. So I might need to order myself a second set, but absolutely, I think not only the utility is now increasing with those kinds of products, but at the same time, I'm a lot more conscious on what we cook with what we cook on what we store in and it's something to be, it's something very special to be connected to the mission and values of what we try and get out there to our customers. So absolutely, it's definitely been a major turning point and I couldn't be happier about it.

Claire Sullivan
Oh, so sweet. Thank you. So looking ahead what's next for Caraway and I'll leave it at that. What's next?

Mark Riskowitz
I think what's next for us is anything that gets us closer to more customers in the format that they choose. And so whether you like to shop in store, if you like to shop on Amazon, if you like to shop on a particular retailers. Com, our goal is to try be accessible to as many customers as possible not just from a point of sale perspective, but from a sort of brand validation and brand equity standpoint. Yeah. And I think what a lot of folks tend to discount is that there is this sort of intangible and difficult to measure factor that goes into a customer's buying journey. When they have all these points of validation, they see you advertised on the subway, or they see you in a Macy's store, or they see you on Amazon, you know, for prime day that essential, I guess blanketed coverage is one of the best ways to boost conviction. Yeah. And to just remind people that we're here. We're going to be here for a long time. We're around and we've also got your back because you can access us through many different channels. We have a world class CX team that just can flip any experience upside down and we're just proud about that and just want to continue down that path.

Claire Sullivan
And I think going into those various channels is very applicable during this time of year which is your peak season going into the holiday season. How are you balancing… an increase in your demand with the current volatility that we're seeing across the supply chain and logistics with tariffs in particular?

Mark Riskowitz
I think for us, we haven't necessarily seen a disruption to operational performance which has been the biggest relief of the well second to the full tariff wrath not being implemented. So probably bigger problems with that. But I think because of that, with freight rates being favorable to importers and lead times being generally faster than, you know, the past couple years at this time, we haven't seen any disruption in terms of our ability to stock up ahead of the holiday season. I think the hesitation around liberation day onwards in terms of what should we do with product that has not yet left origin, you know, caused a little bit of a hiccup and delay in certain inbounds and certain restocks, but that was pretty short lived for us and we managed to find really great ways to mitigate tariffs to a point where we could just keep going and keep the foot on the gas. So overall, it's been a better than expected second half of the year. And I hope that by the time this is, that is not going to be something I regret saying.

Claire Sullivan
Well, coming to a close mark, I know that over the years, I've had the pleasure of learning so much from you from near and Afar. Any piece of advice that maybe you've gotten throughout your career that you would love to share to anyone who's listening or anything that you've just developed over the years that has helped made you into such a successful partner.

Mark Riskowitz
I think it comes down to an obsession with curiosity and learning as the foundation of everything. And I think the more that the business grows, the bigger our team gets, the more partners we work with, the deeper those relationships become. I'm just really determined to learn more and more in an exponential fashion. And now what I think is really amazing is that you can start doing that with these tools that are coming out with these conversational tools that you have, your ability to learn is exponential. And I think that's to me the most exciting part and it starts with that innate feeling of just wanting to understand, wanting to network, wanting to learn whatever you can about your expertise, business, the industry that you're in. And so I'd say just be curious and drive that forward as much as possible.

Claire Sullivan
I love it. Well, thank you so much for joining us today to many more years of Flexport and Caraway, and we appreciate it.

Mark Riskowitz
Yes, thank you so much for having me and this was a great time. I appreciate it.

Claire Sullivan
Thank you.