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    <title>A VC in Vacationland</title>
    
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    <id>tag:typepad.com,2003:weblog-309314</id>
    <updated>2009-12-05T17:34:00-05:00</updated>
    
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    <link rel="self" href="http://feeds.feedburner.com/AVcInVacationland" type="application/atom+xml" /><atom10:link xmlns:atom10="http://www.w3.org/2005/Atom" rel="hub" href="http://pubsubhubbub.appspot.com" /><entry>
        <title>Supply Chain Innovators: Delphi Trade</title>
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        <id>tag:typepad.com,2003:post-6a00d8341e5e5953ef0120a6543b56970b</id>
        <published>2009-12-05T17:34:00-05:00</published>
        <updated>2009-11-04T17:43:04-05:00</updated>
        <summary>A new investment fund has been launched, aimed at helping US exporters with weak credit (read: auto companies) export products to lucrative markets. Delphi Trade, founded by Craig Allen and other export finance veterans, opened for business in late September....</summary>
        <author>
            <name>dla911</name>
        </author>
        <category scheme="http://www.sixapart.com/ns/types#category" term="Supply Chain Innovators" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Supply Chain Strategy" />
        
        
<content type="xhtml" xml:lang="en-US" xml:base="http://supplychainventures.typepad.com/my_weblog/">
<div xmlns="http://www.w3.org/1999/xhtml"><p>A new investment fund has been launched, aimed at helping US exporters with weak credit (read: auto companies) export products to lucrative markets.  <a href="http://www.reuters.com/article/BANKSL/idUSN216663820090921">Delphi Trade</a>, founded by Craig Allen and other export finance veterans, opened for business in late September. In the longer term, the fund will finance exports in developing markets, but in the shorter term has numerous opportunities in the US.</p><p>Supply chain finance companies help exporters with weak credit ratings sell products to buyers concerned about payment risk.  Delphi helps companies capture new markets as well as serve existing customers by forwarding money to buy pre-sold goods and then passing them on to the end buyer, collecting a trade margin as its payment.</p><p>Manufacturers benefit because Delphi begins delivering payment immediately after a deal is signed, as opposed to months down the road when a product is delivered. The accelerated cash flow then can be used to purchase materials for production.</p><p>Although auto companies will be their initial focus, energy markets are also under evaluation as are other commodity markets, such as mining.</p><p>Check them out at <a href="http://www.delphitrade.com/">Delphi Trade Inc</a>.</p><p /><p /></div>
</content>


    </entry>
    <entry>
        <title>Book Review: Our Iceberg is Melting</title>
        <link rel="alternate" type="text/html" href="http://supplychainventures.typepad.com/my_weblog/2009/11/book-review-our-iceberg-is-melting.html" />
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        <id>tag:typepad.com,2003:post-6a00d8341e5e5953ef0120a6a8a6b6970c</id>
        <published>2009-11-28T12:05:00-05:00</published>
        <updated>2009-11-28T12:05:00-05:00</updated>
        <summary>Cover via Amazon I may be the last person in the business world to read John Kotter's Our Iceberg is Melting. I usually avoid parables and fables couched as business books. But I was asked to read the book as...</summary>
        <author>
            <name>dla911</name>
        </author>
        <category scheme="http://www.sixapart.com/ns/types#category" term="Book Reviews" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Managing start-ups" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Venture Capital" />
        
        
<content type="xhtml" xml:lang="en-US" xml:base="http://supplychainventures.typepad.com/my_weblog/">
<div xmlns="http://www.w3.org/1999/xhtml"><p class="zemanta-img" style="margin: 1em; float: right; display: block; width: 210px;"><a href="http://www.amazon.com/Our-Iceberg-Melting-Succeeding-Conditions/dp/031236198X%3FSubscriptionId%3D0G81C5DAZ03ZR9WH9X82%26tag%3Dzemanta-20%26linkCode%3Dxm2%26camp%3D2025%26creative%3D165953%26creativeASIN%3D031236198X"><img alt="Cover of &quot;Our Iceberg Is Melting: Changin..." height="300" src="http://ecx.images-amazon.com/images/I/511D1WGAV9L._SL300_.jpg" style="border: medium none ; display: block;" width="200" /></a><span class="zemanta-img-attribution"><a href="http://www.amazon.com/Our-Iceberg-Melting-Succeeding-Conditions/dp/031236198X%3FSubscriptionId%3D0G81C5DAZ03ZR9WH9X82%26tag%3Dzemanta-20%26linkCode%3Dxm2%26camp%3D2025%26creative%3D165953%26creativeASIN%3D031236198X">Cover via Amazon</a></span></p><p>I may be the last person in the business world to read John Kotter's <a href="http://www.amazon.com/Our-Iceberg-Melting-Succeeding-Conditions/dp/031236198X/ref=sr_1_2?ie=UTF8&amp;s=books&amp;qid=1257354386&amp;sr=8-2">Our Iceberg is Melting</a>. I usually avoid parables and fables couched as business books. But I was asked to read the book as part of an ongoing transformation at one of the non-profits we consult with on a regular basis. And I am a convert to how the book can be very useful to start-ups, successful companies, non-profits and even your own life.</p><p>Why did I change my mind?</p><p>First, <strong>it's short and to the point</strong>. My wife read the book to me in a recent drive from our home in Maine to a meeting in Boston, about a one and one-half hour drive.  Yes, my wife reads to me often in the car.  We both enjoy it. We both found the book entertaining and educational at the same time.  We often stopped reading and guessed at how some of the main "characters" (the penguins) would behave in various situations. We ended up having a lively discussion at dinner before the meeting about the messages in the book.  No business book has ever created so much interest and dialogue for us.</p><p>Second,<strong> it's all about involvement and communications, stupid</strong>. One of the major failings I see in companies and relationships is the inability to draw affected people into a decision process and using everyone's input to craft a solution. The book describes in detail both how to do this and what issues one may encounter in the process. No one likes change. Period. And Kotter speaks in detail how best to get people to accept and even embrace change.</p><p>Third, <strong>we all better listen to the lessons</strong>. Our world is constantly changing as is our relationships with our friends and loved ones.  Embracing the ability to change and having a process to adapt is crucial to our survival. Remember that we are all here because our ancestors were the ones that embraced change and survived. We need to keep learning that lesson in our organizations and personal lives.</p><p>Finally, <strong>we have the opportunity to change</strong>. I don't care how rich you are and can avoid change, or how you think you might be isolated from the huge changes that our going on in our world. You aren't. Stupid as it may sound, there is opportunity in crisis. In the world of start-ups, for example, all the old paradigms on building a successful company are obsolete. Take the current opportunity to change as your chance to redefine your business model before it is too late.</p><p>For $12 or so on Amazon, this is the cheapest advice you can get on how to be successful in life and business.</p>

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    </entry>
    <entry>
        <title>MIT Plans New Online Publication About Entrepreneurship</title>
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        <id>tag:typepad.com,2003:post-6a00d8341e5e5953ef0120a62a3c09970c</id>
        <published>2009-11-21T15:20:00-05:00</published>
        <updated>2009-11-04T12:03:00-05:00</updated>
        <summary>Image via Wikipedia According to Xconomy, MIT is planning to launch a student-led online publication focused on entrepreneurship by the end of the year. The fledgling publication will be called the MIT Entrepreneurship Review (MITER) and will aim to serve...</summary>
        <author>
            <name>dla911</name>
        </author>
        <category scheme="http://www.sixapart.com/ns/types#category" term="Managing start-ups" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Venture Capital" />
        
        
<content type="xhtml" xml:lang="en-US" xml:base="http://supplychainventures.typepad.com/my_weblog/">
<div xmlns="http://www.w3.org/1999/xhtml"><p class="zemanta-img" style="margin: 1em; float: right; display: block; width: 105px;"><a href="http://en.wikipedia.org/wiki/Image:MIT-sloan.png"><img alt="MIT Sloan Logo" height="111" src="http://upload.wikimedia.org/wikipedia/en/c/c4/MIT-sloan.png" style="border: medium none ; display: block;" width="95" /></a><span class="zemanta-img-attribution">Image via <a href="http://en.wikipedia.org/wiki/Image:MIT-sloan.png">Wikipedia</a></span></p><h1 class="akst_title"><br /></h1>
		<p class="akst_category"><br /><a href="http://www.xconomy.com/tags/national/national-blog-main/" rel="category tag" title="View all posts in National blog main" /></p>
		<div class="akst_entry"><p>According to <a href="http://www.xconomy.com">Xconomy</a>, MIT
is planning to launch a student-led online publication focused on
entrepreneurship by the end of the year. The fledgling publication will be called the MIT
Entrepreneurship Review (MITER) and will aim to serve as a resource for
entrepreneurs and to raise the already high profile of the prestigious
school in the business world.</p>
<p>The publication is being organized much like a law review, seeking
student editors, based on merit, to provide editorial content, said
Eduard Viladesau, a graduate student at the MIT Sloan School of
Management, who is one of the founders of MITER. The plan is to have
weekly columns that focus on entrepreneurship issues in the energy,
life sciences, and IT sectors. The publication’s editorial review board
currently consists of several MIT faculty members such as Bob Langer
and Michael Cima who have experience in inventing technologies and
founding numerous startups. (Our own Bob has also agreed to serve as an
advisor to MITER.) It’s also expected that other entrepreneurs and
business leaders who are affiliated with MIT will contribute articles
to the publication.</p>
<p>While academic publications such as the Harvard Business Review
cover entrepreneurship as well as other business issues, Viladesau
said, the MIT Entrepreneurship Review plans to have an exclusive focus
on entrepreneurship. The content of the online publication—which will
include case studies, startup profiles, and analyses of major trends or
problems facing entrepreneurs—is expected to be more technical and
analytical than, say, stories in the popular press. But the articles
will not be peer-reviewed or as elaborate as those found in a
traditional academic journal. The Web-based publication will be
available for free on the public Internet.</p>
<p>“We have three main missions,” Viladesau said. “One is to build and
promote the thought-leadership brand of MIT.” The other two goals of
the publication are to serve as a resource to entrepreneurs and to
attract top students to the school.</p>
<p>The concept of a Web-based and student-run entrepreneurship
publication was previously adopted at Stanford University. Stanford’s
Entrepreneurship Corner, or <a href="http://ecorner.stanford.edu/" onclick="javascript:pageTracker._trackPageview('/outgoing/ecorner.stanford.edu/');">ECorner</a>,
is a free online publication that features videos, podcasts, and
written resources for entrepreneurs. Viladesau told me that MITER will
initially have mostly written articles, but future plans include videos
and other multimedia offerings like those found at ECorner.</p>
<p>Viladesau told Xconomy that the idea to found the publication came from <a href="http://www.xconomy.com/boston/2009/08/05/bill-aulet-takes-reins-of-mit-entrepreneurship-center-from-ken-morse/">Bill Aulet, acting director of the MIT Entrepreneurship Center</a>
(and an Xconomist), who recruited Viladesau to help transform the idea
into reality. Aulet is now advising Viladesau and two other Sloan
students who are managing the development of the publication. (MIT
professor Ed Roberts, the chairman and founder of the MIT
Entrepreneurship Center, is on the editorial advisory board of MITER.)
The group is expected to hold a competition to select student editors
for the publication, and each of them will receive a $1,000 cash prize
for winning a slot on the editorial team. The publication could launch
as early as late November.</p><p>Happy Turkey Day...be sure and eat too much and fall asleep on the couch as Dallas &amp; Romo lose to the hapless Raiders....</p>
</div>

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</content>


    </entry>
    <entry>
        <title>The 7 Principles of Supply Chain Management: Redux</title>
        <link rel="alternate" type="text/html" href="http://supplychainventures.typepad.com/my_weblog/2009/11/the-7-principles-of-supply-chain-management-redux.html" />
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        <id>tag:typepad.com,2003:post-6a00d8341e5e5953ef0120a5dcd819970b</id>
        <published>2009-11-14T12:07:00-05:00</published>
        <updated>2009-10-12T12:08:53-04:00</updated>
        <summary>Over ten years ago, Frank Britt, Donovan Favre and myself first published The 7 Principles of Supply Chain Management. The article has remained popular over the years, mostly because many companies still have problems adjusting their supply chains to changing...</summary>
        <author>
            <name>dla911</name>
        </author>
        <category scheme="http://www.sixapart.com/ns/types#category" term="Supply Chain Innovators" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Supply Chain Strategy" />
        
        
<content type="xhtml" xml:lang="en-US" xml:base="http://supplychainventures.typepad.com/my_weblog/">
<div xmlns="http://www.w3.org/1999/xhtml"><p>Over ten years ago, Frank Britt, Donovan Favre and myself first published <a href="http://www.scmr.com/article/CA6432096.html">The 7 Principles of Supply Chain Management</a>.  The article has remained popular over the years, mostly because many companies still have problems adjusting their supply chains to changing market conditions.</p><p>Steve Banker, supply chain analyst at the ARC Advisory Group, recently published an expanded commentary on one of the principles, <a href="http://">Customizing Your Logistics Network to Meet Customer Needs</a>, which has some interesting "updates" on our ideas that are worth reading.</p><p>Enjoy!</p></div>
</content>


    </entry>
    <entry>
        <title>Buffett's Big Bet and the Ghost Fleets in Malaysia</title>
        <link rel="alternate" type="text/html" href="http://supplychainventures.typepad.com/my_weblog/2009/11/ghost-fleets-in-malaysia.html" />
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        <id>tag:typepad.com,2003:post-6a00d8341e5e5953ef0120a6216a6f970b</id>
        <published>2009-11-07T16:20:00-05:00</published>
        <updated>2009-11-04T11:55:53-05:00</updated>
        <summary>Warren Buffett has made a huge bet on global economic growth by purchasing the remaining stock he does not own in the Burlington Northern Santa Fe (BNSF) for $26 billion. BNSF, the nation's second-largest railroad, is the biggest hauler of...</summary>
        <author>
            <name>dla911</name>
        </author>
        <category scheme="http://www.sixapart.com/ns/types#category" term="Green Logistics" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Supply Chain Strategy" />
        
        
<content type="xhtml" xml:lang="en-US" xml:base="http://supplychainventures.typepad.com/my_weblog/">
<div xmlns="http://www.w3.org/1999/xhtml"><p><a href="http://www.msnbc.msn.com/id/33599744/ns/business-us_business/">Warren Buffett </a>has made a huge bet on global economic growth by purchasing the remaining stock he does not own in the Burlington Northern Santa Fe (BNSF) for $26 billion. BNSF, the nation's second-largest railroad, is the biggest hauler 
of food products for export such as corn, and coal for electricity, making it a key indicator of 
the country's economic health.  The railroad 
also ships a large amount of consumer goods — including items imported from Asia 
— from big Western ports like Los Angeles and Seattle. Buffett says in interviews that this is a long term bet on the strength of the US economy, as well as a play on energy prices, as railroads move freight at a much lower energy cost per ton-mile than trucks.</p><p>But just how long term is the bet? One can gain some insights from a fascinating article on the <a href="http://www.dailymail.co.uk/home/moslive/article-1212013/Revealed-The-ghost-fleet-recession-anchored-just-east-Singapore.html">ghost fleets of Malaysia</a>, recently published in the UK's Daily Mail.  Hundreds of ships from every nation-tankers, container ships, dry bulk and specialty carriers sit idle just east of Singapore.  It will be years before global trade returns to the pre-crash levels.  With over 12% of the world's container fleet idle, it will take some mighty fast growth in Europe and the US to return many of these behemoths to the trades.  And many may never return to service.  If consumption growth picks up in Asia and India, which governments are encouraging, the ships will never be needed to move goods within domestic markets.  You can also bet those consumers will not be buying a lot of US and European products any time soon, based on iPhones pitiful recent sales in China, among other indicators.</p><p>So Warren better plan on living another decade or so to see this investment pay off. Even our grain and coal exports--major traffic flows on the BNSF--are seeing major competition from Australia and South America, putting further pressure on potential commodity trade growth out of the US. All in all, Warren may have made a savvy buy for the long term, but owners of A&amp;B shares in Berkshire Hathaway should not expect a lot of near term returns from this investment. Let's hope it is not another ill-timed foray by Warren into the transportation sector, like the US Airways bet. If it does turn out to be a poor investment, then we may be all in for an extended period of poor growth....not a fun thought.</p><p /></div>
</content>


    </entry>
    <entry>
        <title>Green Logistics: ReCORK and SOLE Footwear Alliance</title>
        <link rel="alternate" type="text/html" href="http://supplychainventures.typepad.com/my_weblog/2009/10/green-logistics-recork-and-sole-footwear-alliance.html" />
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        <id>tag:typepad.com,2003:post-6a00d8341e5e5953ef0120a6159c0a970c</id>
        <published>2009-10-31T14:04:00-04:00</published>
        <updated>2009-10-31T14:04:00-04:00</updated>
        <summary>Image by H Robertson Photography via Flickr About a year ago, I posted on the ReCORK/Whole Foods partnership to recycle used corks from wine bottles. Now we know what is going to happen to some of these corks. ReCORK announced...</summary>
        <author>
            <name>dla911</name>
        </author>
        <category scheme="http://www.sixapart.com/ns/types#category" term="Green Logistics" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Supply Chain Innovators" />
        
        
<content type="xhtml" xml:lang="en-US" xml:base="http://supplychainventures.typepad.com/my_weblog/">
<div xmlns="http://www.w3.org/1999/xhtml"><p class="zemanta-img" style="margin: 1em; float: right; display: block; width: 170px;"><a href="http://www.flickr.com/photos/10435781@N04/3126297105"><img alt="Re use wine corks" src="http://farm4.static.flickr.com/3259/3126297105_3f0d5954d8_m.jpg" style="border: medium none ; display: block;" /></a><span class="zemanta-img-attribution">Image by <a href="http://www.flickr.com/photos/10435781@N04/3126297105">H Robertson Photography</a> via Flickr</span></p><p>About a year ago, I posted on the<a href="http://supplychainventures.typepad.com/my_weblog/2008/12/green-logistics-wine-cork-recycling.html"> ReCORK/Whole Foods partnership</a> to recycle used corks from wine bottles. Now we know what is going to happen to some of these corks. ReCORK announced on 5 October that they are partnering with SOLE Footwear of Canada to reclaim and "up-cycle" a portion of the billions of natural cork wine closures (trade-speak) currently discarded by US and Canadian consumers.</p><p>According to the press release, SOLE is a leading manufacturer of footwear products with distribution throughout North America.  The used corks are re-manufactured into a cork blend for their footwear products, which both enhances the "material properties" (whatever they are) of the footwear products while extending the useful life of the cork for years to come.<br /><br />ReCORK's recycling partners include American Airlines/Sodexo, The Wine Tasting Network, Diageo Chateau &amp; Estate Wines, Rodney Strong Wine Estates, Cakebread Cellars, Rutherford Wine Company and Plumpjack, among many others. So far, over 4 million corks have been collected, with minimal promotion.  The alliance with SOLE will allow ReCORK to substantially expand their collection efforts.</p><p>I wonder if the new footwear products will be cork specific--the Cabernet loafers or the Chardonnay slippers come to mind. And can we smell the fruity nose of each wine as we walk in the new footwear? Will the soft cork innersoles invoke a pleasant, summer's day walk in the vineyards?  Doubtful, although the fact that the corks do not end up in a landfill or furnace should make wine lovers feel good.  Now if we can do something about those bottles....</p>

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    </entry>
    <entry>
        <title>You See Your Ideas....</title>
        <link rel="alternate" type="text/html" href="http://supplychainventures.typepad.com/my_weblog/2009/10/you-see-your-ideas.html" />
        <link rel="replies" type="text/html" href="http://supplychainventures.typepad.com/my_weblog/2009/10/you-see-your-ideas.html" thr:count="0" />
        <id>tag:typepad.com,2003:post-6a00d8341e5e5953ef0120a614e7cf970c</id>
        <published>2009-10-24T10:41:00-04:00</published>
        <updated>2009-10-24T10:41:00-04:00</updated>
        <summary>Image via Wikipedia I know..this is a weird title. But it has deep meaning. One of the interesting aspects of life is that "you see your ideas", that is if you are planning on buying a VW Touareg, you now...</summary>
        <author>
            <name>dla911</name>
        </author>
        <category scheme="http://www.sixapart.com/ns/types#category" term="Venture Capital" />
        
        
<content type="xhtml" xml:lang="en-US" xml:base="http://supplychainventures.typepad.com/my_weblog/">
<div xmlns="http://www.w3.org/1999/xhtml"><p class="zemanta-img" style="margin: 1em; float: right; display: block; width: 310px;"><a href="http://commons.wikipedia.org/wiki/Image:Porsche_typ12.jpg"><img alt="Porsche Type 12, Model 1:5 at Nuremberg Museum..." height="141" src="http://upload.wikimedia.org/wikipedia/commons/thumb/7/7d/Porsche_typ12.jpg/300px-Porsche_typ12.jpg" style="border: medium none ; display: block;" width="300" /></a><span class="zemanta-img-attribution">Image via <a href="http://commons.wikipedia.org/wiki/Image:Porsche_typ12.jpg">Wikipedia</a></span></p><p>I know..this is a weird title.  But it has deep meaning.  One of the interesting aspects of life is that "you see your ideas", that is if you are planning on buying a VW Touareg, you now see them all over the place where you never noticed one before.  There must be a special place in the brain that stores these ideas and creates awareness when that idea surfaces in your vision.</p><p>This is very much how a VC's mind works.  I have a set of ideas about where the world of technology is headed and when reality makes those "ideas" pop up in front of me, my brain becomes interested.  This can happen anywhere--on the web, at a conference, visiting a university and meeting researchers, etc.  I never know where I might find something that will relate to that idea in my brain.</p><p>This does not mean I immediately "do something" about that reality that relates to one of my ideas.  Often, I let it "marinate" in the brain for days or weeks before knowing if I might pursue it.  If the new reality is someone with an entrepreneurial idea, I generally wait to see if the person can develop the concept into a viable business plan.  The world is full of good ideas.  I do not have time to develop them, only encourage entrepreneurs to move forward.<br /><br />Often, the person with the new concept is taken aback.  "I thought you were a VC and funded new businesses" is invariably the retort after I tell them to go off and develop the concept into a business plan.  I am, but it is not my job to bring it to market, only to provide advice and funding.</p><p>My basic advice to new entrepreneurs is to "see you ideas" as well.  You must be aware of the marketplace where your ideas will land and how customers will perceive your idea among all the great and competitive ideas that exist in this marketplace.</p><p>What's the picture above all about?  It's a prototype for the first VW bug, designed by Doctor Porsche. I wonder how many people looked at it and thought that a "people's car" was a joke.  Nope.  It was one of the biggest automobile ideas of the 20th century.  But it was not the design, it was how it was marketed, manufactured and sold that made the difference.  All successful entrepreneurs have a broad "world view" of their marketplace and how their idea will succeed. They see their ideas....</p>

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</content>


    </entry>
    <entry>
        <title>Marketing &amp; Sales Innovators: Yext</title>
        <link rel="alternate" type="text/html" href="http://supplychainventures.typepad.com/my_weblog/2009/10/marketing-sales-innovatorsyext.html" />
        <link rel="replies" type="text/html" href="http://supplychainventures.typepad.com/my_weblog/2009/10/marketing-sales-innovatorsyext.html" thr:count="0" />
        <id>tag:typepad.com,2003:post-6a00d8341e5e5953ef0120a5b91510970b</id>
        <published>2009-10-17T00:32:00-04:00</published>
        <updated>2009-10-17T00:32:00-04:00</updated>
        <summary>Image via Wikipedia OK, I know a lot people think that Howard Lerman, founder of Yext is a jerk, did not invent anything, will fail, or, if you prefer add your criticism in Comments below. But hey, the guy just...</summary>
        <author>
            <name>dla911</name>
        </author>
        <category scheme="http://www.sixapart.com/ns/types#category" term="Marketing &amp; Sales Innovators" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Marketing &amp; Sales Strategy" />
        
        
<content type="xhtml" xml:lang="en-US" xml:base="http://supplychainventures.typepad.com/my_weblog/">
<div xmlns="http://www.w3.org/1999/xhtml"><p class="zemanta-img" style="margin: 1em; float: right; display: block; width: 310px;"><a href="http://commons.wikipedia.org/wiki/Image:Auckland_Yellow_pages.jpg"><img alt="Auckland 2004 Yellow Pages books" height="161" src="http://upload.wikimedia.org/wikipedia/commons/thumb/9/90/Auckland_Yellow_pages.jpg/300px-Auckland_Yellow_pages.jpg" style="border: medium none ; display: block;" width="300" /></a><span class="zemanta-img-attribution">Image via <a href="http://commons.wikipedia.org/wiki/Image:Auckland_Yellow_pages.jpg">Wikipedia</a></span></p><p>OK, I know a lot people think that Howard Lerman, founder of <a href="http://www.yext.com">Yext</a> is a jerk, did not invent anything, will fail, or, if you prefer add your criticism in Comments below. But hey, the guy just raised $25 million from some pretty smart VCs, including <a href="http://www.ivp.com">IVP</a> (a Twitter investor--but please save the rants on that one as well for the moment). According to TechCrunch50 attendees, his <a href="http://The%20$25%20Million%20Demo.%20Yext%20Scores%20A%20Big%20Round%20From%20IVP%20After%20TechCrunch50%20Debut.%20106%20Comments%20%20by%20Erick%20Schonfeld%20on%20October%201,%202009%20%20%20Howard%20Lerman%20can%20be%20a%20little%20intense.%20After%20the%20CEO%20of%20Yext%20finished%20his%20demo%20at%20this%20year%E2%80%99s%20Techcrunch50%20%28embedded%20below%29%20he%20left%20one%20judge%20%E2%80%9Cspeechless,%E2%80%9D%20and%20during%20rehearsals%20Michael%20took%20him%20aside%20and%20asked%20him,%20%E2%80%9CAre%20you%20on%20drugs?%E2%80%9D%20He%20wasn%E2%80%99t.%20Lerman%20just%20has%20the%20heightened%20dopamine%20levels%20of%20an%20entrepreneur.%20And%20he%20hadn%E2%80%99t%20slept%20for%2045%20days%20because%20he%20was%20pushing%20his%20New%20York%20City%20startup%20to%20relaunch%20on%20an%20entirely%20new%20technology%20platform%20for%20TechCrunch50%20%20Over%20the%20past%20three%20years,%20Lerman%20and%20his%20co-founders%20%28who%20all%20went%20to%20the%20same%20high%20school%20together%20in%20Virginia%29,%20have%20built%20a%20local%20advertising%20business%20under%20everyone%E2%80%99s%20nose%20that%20is%20on%20track%20to%20generate%20$20%20million%20in%20revenues%20this%20year.Yext%20is%20going%20after%20the%20huge,%20entrenched%20Yellow%20Pages%20business%20with%20online%20ads%20for%20local%20businesses%20that%20result%20in%20phone%20calls%20instead%20of%20clicks.%20%20%20At%20TechCrunch50,%20which%20was%20the%20company%E2%80%99s%20public%20debut,%20Yext%20relaunched%20with%20a%20whole%20new%20product,%20going%20from%20plain%20vanilla%20pay-per-call%20ads%20to%20pay-per-action%20ads%20where%20the%20action%20is%20a%20relevant%20call%20that%20actually%20drives%20new%20business.%20Each%20ad%20has%20a%20unique%20trackable%20number%20that%20goes%20through%20Yext%E2%80%99s%20system,%20where%20it%20is%20recorded,%20transcribed,%20and%20analyzed.%20Yext%20customers%20get%20their%20own%20inbox%20for%20calls%20which%20is%20like%20a%20Google%20Voice%20for%20businesses.%20There%20is%20a%20transcript%20for%20each%20call,%20the%20phone%20number%20of%20the%20person%20who%20called,%20and%20a%20full%20audio%20file%20that%20can%20be%20played%20back.%20When%20a%20business%20signs%20up,%20Yext%20places%20ads%20for%20them%20across%20the%20Web%20in%20local%20directories%20such%20as%20Yellowpages.com,%20SuperPages.com,%20Local.com,%201-800-Free-411,%204Info,%20Topix,%20and%20more.%20It%20turns%20those%20ads%20into%20phone%20calls.%20%20Yext%20uses%20speech-to-text%20recognition%20licensed%20from%20IBM%20and%20fine-tuned%20with%20its%20own%20algorithms%20for%20each%20business%20category%20it%20targets.%20Co-founder%20Brent%20Metz%20used%20to%20be%20an%20engineer%20in%20IBM%E2%80%99s%20speech%20science%20labs,%20and%20his%20name%20appears%20on%20many%20IBM%20patents.%20Only%20when%20certain%20key%20words%20related%20to%20the%20actual%20services%20offered%20by%20the%20business%20are%20mentioned%20in%20a%20call%20%28%E2%80%9Dspinal%20decompression,%E2%80%9D%20%E2%80%9Coil%20change,%E2%80%9D%20%E2%80%9Cinstall%20countertops%E2%80%9D%29%20does%20Yext%20charge%20for%20it.%20Wrong%20numbers,%20marketing%20calls,%20or%20calls%20from%20beyond%20a%20pre-determined%20geographic%20area%20are%20put%20in%20a%20junk%20folder%20and%20Yext%20doesn%E2%80%99t%20charge%20for%20those.%20%20%20This%20means%20Yext%20needs%20to%20be%20really%20good%20at%20both%20driving%20relevant%20calls%20to%20local%20businesses%20and%20identifying%20them.%20%E2%80%9CYou%E2%80%99ve%20got%20to%20be%20transparent,%E2%80%9D%20says%20Lerman.%20%E2%80%9CWe%20take%20all%20the%20risk,%20then%20we%20pull%20our%20pants%20down%20and%20show%20them%20what%20they%20get.%E2%80%9D%20Lerman%20is%20so%20confident%20of%20his%20technology%20that%20at%20TechCrunch50,%20he%20switched%20all%2020,000%20local%20businesses%20already%20using%20Yext%20over%20to%20the%20pay-per-action%20system.%20It%20is%20a%20big,%20gutsy%20bet.%20%20%20The%20minute%20he%20stepped%20off%20the%20stage,%20Lerman%20was%20inundated%20with%20emails%20and%20business%20cards%20from%20seemingly%20every%20venture%20capitalist%20and%20M&amp;A%20officer%20in%20the%20room.%20He%20tried%20to%20ignore%20them%20and%20soak%20in%20the%20rest%20of%20the%20conference,%20but%20some%20of%20them%20were%20from%20people%20any%20startup%20CEO%20would%20be%20foolish%20to%20ignore.%20He%20took%20a%20few%20meetings%20with%20the%20most%20serious%20VCs,%20and%20ended%20up%20closing%20a%20$25%20million%20B%20round,%20led%20by%20Institutional%20Venture%20Partners%20%28which%20is%20also%20an%20investor%20in%20Twitter%29.%20The%20money%20just%20hit%20Yext%E2%80%99s%20bank%20account%20a%20few%20hours%20ago.%20%E2%80%9CAnyone%20who%20doesn%E2%80%99t%20launch%20at%20TechCrunch50%20is%20crazy,%E2%80%9D%20says%20Lerman.%20%20IVP%20partner%20Dennis%20Phelps%20will%20be%20joining%20Yext%E2%80%99s%20board.%20Sutter%20Hill%20Ventures,%20which%20had%20put%20in%20$3.5%20million%20in%20an%20A%20round%20in%20June,%202008,%20also%20participated%20in%20this%20latest%20funding.%20%20%20Yext%20is%20currently%20only%20in%2012%20local%20categories,%20including%20auto%20repair,%20chiropractors,%20gyms,%20vets,%20and%20yoga.%20There%20are%202,300%20Yellow%20Pages%20categories.%20Lerman%20is%20going%20to%20take%20the%20$25%20million%20and%20aggressively%20expand%20into%20those%20categories,%20hiring%20sales%20people%20to%20go%20after%20each%20one.%20He%20already%20has%2075%20employees.%20%20Lerman%20is%20also%20extremely%20excited%20about%20getting%20Yext%20numbers%20into%20mobile%20apps.%20He%20thinks%20he%20can%20build%20an%20AdSense%20for%20mobile%20phones.%20%E2%80%9CWhat%20do%20you%20think%20is%20the%20perfect%20action%20for%20mobile?%E2%80%9Dhe%20asks.%20%E2%80%9CIt%20is%20a%20phone%20call,%20not%20a%20click.%E2%80%9D%20App%20developers%20who%20sign%20up%20here%20can%20freely%20import%20Yext%20numbers%20into%20their%20apps%20by%20business%20type%20and%20category.%20So%20a%20travel%20app%20could%20bring%20up%20nearby%20auto%20garages%20or%20window%20repair%20shops%20for%20stranded%20travelers%20and%20get%20a%20cut%20of%20any%20call%20revenue%20they%20generate.%20Lerman%20has%20a%20lot%20of%20ideas%20like%20that.">demo</a> left a judge "speechless" and resulted in a traffic jam at the podium of VCs trying to give him their business card. </p><p>So why does Dave think he is not a jerk?  Yext is already making $20 Million a year going after the Yellow Pages (YP).  There is not a more miserable example of old media trying to hang onto their water-soaked remnants of the past (has anyone out there ever received a dry YP on their doorstep?) than the YP.  Ever try using their website and get sent to the Australia YP instead of New York?  Real easy to happen, that one is. Yext is going after the YP's business with on-line ads for local businesses which generate real phone calls from people looking to use their services. Not such a great idea you say?  lots of competitors, right?</p><p>But do the competitors have the right business model? Perhaps not. At TechCrunch50, Yext previewed a <strong>pay-per-action</strong>, not a pay-per-click, business model, were the action is a relevant call that actually drives new business. I will spare you the technical details, but the platform sits behind the old-media sites like a mailbox and collects details on inbound calls for the business When a business signs up, Yext places ads in local YP websites--YellowPages.com, SuperPages.com, Local.com, etc. Responses to these ads flow through the Yext platform and are instantly available to the business for action. Wrong numbers, junk calls and (oops!) marketing calls are placed in a junk folder for the business to later sort through, just like Outlook.</p><p>Lerman is so confident that the pay-per-action model is the future for his business that he has switched all of his 20,000 customers over to the model.  That takes big you-know what's.</p><p>What's the downside?  First, Yext is only active in 12 local categories--like auto repair, chiropractors(that's a weird one), gyms, vets, and yoga, or .005 percent of YP categories. He plans to use the new venture money to expand categories, hiring sales people to go after key verticals. He also plans to be big in the mobile space and allow all sorts of apps developers to tag on new goodies.  The big challenge will come from the well funded, legacy players in this space, who will probably buy the guy out for $250 or more million and then sit on/not use/screw up the technology (think MySpace).  We'll see real soon on this one. Rupert, where are you?  This is a perfect space for you.</p>



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</content>


    </entry>
    <entry>
        <title>Ecovadis--How Green is Your Supply Chain?</title>
        <link rel="alternate" type="text/html" href="http://supplychainventures.typepad.com/my_weblog/2009/10/ecovadishow-green-is-your-supply-chain.html" />
        <link rel="replies" type="text/html" href="http://supplychainventures.typepad.com/my_weblog/2009/10/ecovadishow-green-is-your-supply-chain.html" thr:count="0" />
        <id>tag:typepad.com,2003:post-6a00d8341e5e5953ef011571156a00970c</id>
        <published>2009-10-10T15:27:00-04:00</published>
        <updated>2009-08-30T12:12:02-04:00</updated>
        <summary>Image by Getty Images via Daylife With thanks to VentureBeat for finding them and writing an excellent article on them.... Start up Ecovadis provides companies with a software platform that lets them weigh the environmental and humanitarian impacts of their...</summary>
        <author>
            <name>dla911</name>
        </author>
        <category scheme="http://www.sixapart.com/ns/types#category" term="Green Logistics" />
        
        
<content type="xhtml" xml:lang="en-US" xml:base="http://supplychainventures.typepad.com/my_weblog/">
<div xmlns="http://www.w3.org/1999/xhtml"><p class="zemanta-img" style="margin: 1em; float: right; display: block; width: 160px;"><a href="http://www.daylife.com/image/0b7Ae2Re6a3L4?utm_source=zemanta&amp;utm_medium=p&amp;utm_content=0b7Ae2Re6a3L4&amp;utm_campaign=z1"><img alt="DHAKA, BANGLADESH - JULY 19: Women work for a..." height="100" src="http://cache.daylife.com/imageserve/0b7Ae2Re6a3L4/150x100.jpg" style="border: medium none ; display: block;" width="150" /></a><span class="zemanta-img-attribution">Image by <a href="http://www.daylife.com/source/Getty_Images">Getty Images</a> via <a href="http://www.daylife.com">Daylife</a></span></p><p>With thanks to VentureBeat for finding them and writing an excellent article on them....</p><p>Start up <a href="http://www.ecovadis.com/" id="xpuy" title="Ecovadis">Ecovadis</a> provides companies with a software 
platform that lets them weigh the environmental and humanitarian impacts of 
their supply chains — even those that circle the globe. Essentially, it scores 
suppliers based on sustainability and social responsibility criteria, helping 
their clients make more informed decisions, the company says.</p>
<p>What makes Ecovadis’ platform unique is its collaborative features. When 
companies are determining how to best create reliable and efficient supply 
chains, they gather input from their procurement departments (obviously), but 
also their engineering and design divisions to better understand what is 
necessary and why. Ecovadis takes this team approach into account, allowing for 
direct and continuous communication between engineering and procurement 
personnel so that the overarching company can optimize its transactions while 
still acting sustainably. This collaboration also includes the suppliers 
themselves, so that they can hold open dialogue with customer companies on how 
they can make their processes more sustainable. For example, a company could 
suggest that a particular vendor use less packaging, or more recycled 
material.</p>
<p>Ecovadis specializes in suppliers in four categories: retail, automotive, IT 
and pharmaceuticals. Each of these areas comes with its own set of environmental 
and humanitarian concerns. The company says its platform is intended to 
highlight labor issues, as well as environmental or conservation problems. So, 
for example, in the retail sector, supplier scorecards take a hard look at child 
labor risks. For IT, they examine energy efficiency and recycling capabilities, 
etc.</p>
<p>By highlighting these problems early on, ideally before a company’s supply 
chain has been finalized, Ecovadis spares its customers risks, in terms of 
finances and reputation. Just think of the number of companies that have taken a 
public hit due to poor overseas labor practices. Also, with the federal 
government looking to institute more stringent energy and carbon reporting 
standards, more companies are scrambling for services like Ecovadis’ so that 
they can answer for their suppliers’ emissions and activities. The start up even 
suggests that its platform could lure the growing number of investors looking 
for sustainable portfolio companies.</p>
<p>Ecovadis rates suppliers across 150 categories, including batteries, plastic 
packaging, labels, freight transfer, waste management, temporary labor, office 
furniture — and the list goes on. For each of these service providers, it looks 
at labor relations, health and safety compliance, potential discrimination, 
corruption, anti-competitive practices and truth in marketing — in addition to 
its environmental analysis.</p>

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    </entry>
    <entry>
        <title>Redefining Fashion Sales &amp; Supply Chains: Gilt Groupe, Quiet Logistics &amp; Kiva Systems</title>
        <link rel="alternate" type="text/html" href="http://supplychainventures.typepad.com/my_weblog/2009/10/gilt-groupe.html" />
        <link rel="replies" type="text/html" href="http://supplychainventures.typepad.com/my_weblog/2009/10/gilt-groupe.html" thr:count="0" />
        <id>tag:typepad.com,2003:post-6a00d8341e5e5953ef011571472f58970c</id>
        <published>2009-10-03T09:01:00-04:00</published>
        <updated>2009-08-30T12:03:34-04:00</updated>
        <summary>Image via CrunchBase Designer clothing and accessories move through some of the most complex and expensive (read: not so green, either) sales and supply chain channels in the world. Made in Asia or other third-world countries, shipped to European, Asian...</summary>
        <author>
            <name>dla911</name>
        </author>
        <category scheme="http://www.sixapart.com/ns/types#category" term="Green Logistics" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Marketing &amp; Sales Innovators" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Marketing &amp; Sales Strategy" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Supply Chain Innovators" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Supply Chain Strategy" />
        
        
<content type="xhtml" xml:lang="en-US" xml:base="http://supplychainventures.typepad.com/my_weblog/">
<div xmlns="http://www.w3.org/1999/xhtml"><p class="zemanta-img" style="margin: 1em; float: right; display: block; width: 143px;"><a href="http://www.crunchbase.com/company/kiva-systems"><img alt="Image representing Kiva Systems as depicted in..." height="64" src="http://www.crunchbase.com/assets/images/resized/0002/6413/26413v2-max-450x450.png" style="border: medium none ; display: block;" width="133" /></a><span class="zemanta-img-attribution">Image via <a href="http://www.crunchbase.com">CrunchBase</a></span></p><p>Designer clothing and accessories move through some of the most complex and expensive (read: not so green, either) sales and supply chain channels in the world.  Made in Asia or other third-world countries, shipped to European, Asian or North American distribution facilities and then sold through in-store or stand-alone boutiques, fashion products consume inordinate amounts of supply chain, sales and retail resources and costs.</p><p>With the global slump in high end fashion sales, major designers are increasing shedding "excess" merchandise to emerging online retail start ups, which specialize in "private sales" of discount designer clothing and accessories.  The Wall Street Journal recently had an interesting article on the space, entitled, <a href="http://online.wsj.com/article/SB124718984581620923.html?mod=googlenews_wsj">Designer Bargains, for the Invited</a>. These new companies strip away at least part of the super expensive distribution channels, generally taking excess goods from designer warehouses into their own facilities and selling the products in day-long sales at discount prices until the product runs out. The WSJ article cites discounts of as much as 50% on handbags, shoes and clothing.</p><p>The idea is that discreet sales online on members-only web sites is preferable to the designer than to have the stuff ending up at Marshall's.  For the start ups, margins are higher that retail, inventory risk is minimal and you can outsource your logistics operations to outside providers. The good news is that the online channels can reduce outbound supply chain and retail resource use, and lower operating costs, making fashion a lot more green, but a lot less profitable for designers.</p><p>That's what <a href="http://www.gilt.com/">Gilt Groupe</a>, one of the major players in the online retail fashion start ups, has done.  They struck a deal with <a href="http://www.quietlogistics.com/">Quiet Logistics</a>, another start up that uses robotic technology from one of my portfolio companies,<a href="http://www.kivasystems.com/"> Kiva Systems</a>.  Genius move.  Gilt can experience even higher margins because Quiet Logistics operating costs are much lower than traditional 3PL providers, due to the efficiencies inherent in the robotic technology.</p><p>As we look to green up our supply chains, companies like Gilt Groupe, Quiet Logistics and Kiva Systems are excellent examples of how significant reductions in supply chain resource consumption are not only possible but happening today.</p><br /><p /><p><a href="http://online.wsj.com/article/SB124718984581620923.html?mod=googlenews_wsj"><br /></a></p>

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