565: Beyond Visibility: Turning Logistics Data Into Landed Cost Savings, with Gnosis Freight

Michael Rentz of Gnosis Freight talks about where organizations are quietly losing money & moving beyond visibility to turn logistics data into cost savings.  IN THIS EPISODE WE DISCUSS: [02.50] Why logistics technology is still treated as a cost center, rather than something that can directly improve margin, and how to make that shift. "If you have the right teams, mindsets and technology partner, you can get to a point where it's not a cost center, it's a growth center." [07.49] What changes when a supply chain leader starts looking at logistics data through a P&L lens rather than an operational one. "During the pandemic, for the first time probably ever, we had CFO's asking: "What the hell is demurrage and detention?!" [11.27] Where companies are typically losing money in their logistics operations. "A lot of enterprises have had to make up a for a lack of reliability, and that translates into carrying more inventory… How much it costs to move goods is also at a premium." [15.07] How you connect operational events – like a delayed container, missed free time or an inefficient dray move – to their actual impact on landed cost, the value of data, and the problem with the 'flaw of averages.' [17.58] How, from documentation to communication, small operational issues can easily multiply to become significant margin problems. "A best in class standard for an international logistics team is 'Did we hit budget?' I'm not familiar with people asking 'Did we beat budget?' "Your most valuable assets – your people – are being asked to do the exact same task in a slightly different way 50 times a day. How much better could the system be running if you freed up that headspace for them to think critically on behalf of the business?" [19.51] Why we need to think differently about KPIs and budgets if we're going to see supply chain as a value driver not a cost center, and where team priorities fit in. "You have to get teams off the back foot, from a defensive to offensive posture; get them back into doing the work that's actually in their job description." [27.46] How better data can help resolve invoice errors and help companies identify and recover money they're currently leaving on the table. "Invoice discrepancies shouldn't be a driver for profitability or growth, you should always get what your bargained for… AI has unlocked a huge amount of capability when it comes to reconciling matching invoices. The key unlock for us is having the underlying data." [30.41] The key metrics you should put in front of a CFO to prove that better logistics data is delivering a real financial return, and how Gnosis helps customers, through data science, tooling and service, with an outcome-first approach. [40.26] Finding the balance between AI and tribal knowledge, why it's important to think about how dynamic your data really is, and why context is critical. RESOURCES AND LINKS MENTIONED: Head over to Gnosis Freight's website now to find out more and discover how they could help you too. You can also connect with Gnosis and keep up to date with the latest over on LinkedIn, Instagram, Facebook and X (Twitter), or you can connect with Michael on LinkedIn. If you enjoyed this episode and want to hear more from Gnosis Freight, check out 559: From AI Hype to Business Value: The Future of Supply Chain Intelligence, with Gnosis Freight. Check out our other podcasts HERE.