Subscribe for more insights,
straight to your inbox
Every week, Mercado CEO Rob Garrison pens his latest learnings from the supply chain industry as part of an on-going series. Each article aims to share a little insight into what's going on that week, and to help foster discussion amongst industry professionals across levels, geographies, and companies.
Subscribe
You can read the full post here if you are interested.
The post was in some parts complementary, and in others critical. I highlighted their progress as a Forwarder but argued that it was tough for me to envision how Flexport is going to 'change the game' without significant changes in strategy. I suggested that they use technology to transition away from competing head-to-head in the brutally competitive forwarding business, and instead become a supply chain company. My second suggestion was to create a supply chain (vs logistics) offering for their customers, to create an Amazon-like-experience whereby purchasing, logistics, and sales were all integrated, and sat under one roof.
The following day, the Wall Street Journal released an article discussing the recent Flexport layoffs, which featured quotes from their new CEO Dave Clark (who just so happened to have joined them from Amazon).
Speaking on the future of Flexport, Clark went on to say that “we’re moving from being a freight forwarder selling a trip for your shipment from point A to point B to offering solutions for your overall supply-chain challenges”. He then stated that Flexport doesn’t plan to build out those operations itself, but instead to enable customers to work with partners through the Flexport platform.
As a platform, Flexport makes all kinds of sense. This allows them to create entirely new services and strategic partnerships without having to build it themselves. Many technology companies operate this way, and Amazon also does it through Amazon marketplace. In many cases Marketplace customers compete with Amazon directly for sales, however Amazon benefits by growing a shared ecosystem that drives down costs and improves customer satisfaction.
It’s unrealistic that in a space this large (15% of the US GDP), one company should try to solve it all themselves. Cheers to the import supply chain industry coming together and realizing it's 'supply chain' potential in 2023.
The post was in some parts complementary, and in others critical. I highlighted their progress as a Forwarder but argued that it was tough for me to envision how Flexport is going to 'change the game' without significant changes in strategy. I suggested that they use technology to transition away from competing head-to-head in the brutally competitive forwarding business, and instead become a supply chain company. My second suggestion was to create a supply chain (vs logistics) offering for their customers, to create an Amazon-like-experience whereby purchasing, logistics, and sales were all integrated, and sat under one roof.
The following day, the Wall Street Journal released an article discussing the recent Flexport layoffs, which featured quotes from their new CEO Dave Clark (who just so happened to have joined them from Amazon).
Speaking on the future of Flexport, Clark went on to say that “we’re moving from being a freight forwarder selling a trip for your shipment from point A to point B to offering solutions for your overall supply-chain challenges”. He then stated that Flexport doesn’t plan to build out those operations itself, but instead to enable customers to work with partners through the Flexport platform.
As a platform, Flexport makes all kinds of sense. This allows them to create entirely new services and strategic partnerships without having to build it themselves. Many technology companies operate this way, and Amazon also does it through Amazon marketplace. In many cases Marketplace customers compete with Amazon directly for sales, however Amazon benefits by growing a shared ecosystem that drives down costs and improves customer satisfaction.
It’s unrealistic that in a space this large (15% of the US GDP), one company should try to solve it all themselves. Cheers to the import supply chain industry coming together and realizing it's 'supply chain' potential in 2023.
About the author

A highly accomplished Global Supply Chain executive with 25 years of experience, Rob Garrison has provided strategic vision and leadership to Fortune 500 companies. Rob has an impressive history of building agile, technology-enabled supply chains, and he has an established track record of forging high-growth partnerships, positioning organizations for success and launching innovative technology solutions that significantly improve end-to-end supply chain efficiencies.
Rob is currently CEO and founder of Mercado Labs.
Rob is currently CEO and founder of Mercado Labs.