May 27, 2025 • 33 mins
Your brand isn’t just your logo or your tagline. It’s your supply chain.
In this solo episode, Blythe breaks down her recent BBC appearance and expands on a bold new thesis: your supply chain isn’t just a backend function.
It’s the product. From viral TikToks to luxury handbag knockoffs, this episode explores why today’s buyers are more concerned than ever with the “how” behind their favorite stuff. And why that curiosity is your best marketing tool.
Key takeaways:
- Transparency isn’t just ethical. It’s profitable.
- Gen Z and Millennials are fueling resale and sustainability trends.
- The rise of TikTok creators is exposing global supply chain truths.
- Brands that share sourcing stories earn long-term loyalty.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Blythe Brumleve (00:00):
Welcome into another episode of Everything is
(00:03):
Logistics, a podcast for thethinkers and afraid. I am your
host, void Milligan, and we areproudly presented by SPI
logistics. And in this episode,I want to talk about a recent
appearance that I had on the BBCcalled a show called What in the
World? Now, this is an audiobased podcast that they
sometimes turn into videoformat, but it's available over
(00:26):
on YouTube. I will list it inthe show notes, in case you want
to check out the full episode.
But it was about 30 minutediscussion, discussion centered
around how the global supplychain kind of works. I think for
a lot of folks, obviously not inour industry, but for a lot of
outsiders, there are a fewmoments over the last, say,
(00:47):
handful of years, that thesupply chain becomes top of news
for them, the ever given gettingstuck in the Suez Canal was One
of the bigger pivotal momentsthis whole tariff conversation
was another pivotal moment. Andthen there was also, whenever
the tariff conversationhappened, there were a lot of
(01:07):
Chinese manufacturers and a lotof Chinese sellers that were
taking it directly to Tiktok togo direct to consumer and to
basically tell and inform theAmerican people and really the
world on where the overwhelmingmajority of stuff is
manufactured. How much is thecost for each of these things?
And then it trying toessentially get you to buy
(01:30):
direct from these Chinesemanufacturers, or to take it a
step further, and just from whatI understand and from some of
the videos that I that I watchedand that I gathered, is that
they no longer wanted to be seenas a country that manufactures
the the cheapest goods. Theywanted their their manufacturers
(01:51):
and their artisans to be knownas people who do very quality
work. And that, I think there's,there's definitely a hint of
truth on that end. And thenthere's definitely a hint of
truth on just, you know, a bunchof, frankly, you know, plastic
junk that's, you know, beenmanufactured because China is
(02:11):
the center of the world when itcomes to manufacturing
processes. So they manufacture avariety of different goods from
the lower end, sort of the cheapcrap that you know is maybe
they're trying to get aroundthat image and get around that
perception and shine a light onwhere they're really their
(02:31):
craftsmanship is really taking afoothold, and that's in the
designer bag market. So a lot ofthese videos went viral. They
started out on Tiktok, showingexactly how the processes is
made from all kinds of differentproducts, but I was mainly
talking about the videos thatwere on designer handba handbags
(02:52):
for this particular episode, itbasically it formed a new thesis
for myself, that the supplychain is really the product.
Because for the first time inhuman civilization, we are
seeing the global trade re bereorganized right in front of
our eyes. You know the overhundreds, sometimes 1000s of
(03:12):
years. You know global trade andports and shipping, and you know
where those goods are shippedand who buys them, and why, you
know, has all been decided by avery small amount of people in
all over the world. And in thisparticular case, in 2025 we are
able to see these discussionstake place in a public format,
(03:33):
which I think is just like as aside note, is so fascinating.
But then on the flip side, weare now able to see the hows and
the whys of these discussionsbeing made. And I want to bring
it back to a quote that I heardyears ago where Elon Musk talks
about how the factory is theproduct and that you can't have.
(03:54):
And basically what he was sayingis that you can't have a good
product that's affordable andtrustworthy and dependable, and
you know, all the things thatyou want out of a product that's
being made, you can't have thatunless you have the factory. I
would take it a step further andsay the supply chain is the
(04:15):
factory. Because the the thesisof of what, and the the point I
wanted to really hammer homeduring this BBC appearance is
that you have to think aboutit's not just, let's use the
designer handbag example for asecond, because you can't just
think about where the leatheris. Maybe the leather is brought
(04:35):
in, or the threads that issewing the leather together, the
metal that's on the bag. Whereis that metal sourced? It's not
necessarily the factory thatputs it all together. It's the
source of the source of theproducts, of where you're
getting all over the world, andthen how you're bringing those.
(04:55):
All under in house, or whetheryou're using different
manufacturing partners orassembly partners or packaging
partners. There's lots ofdifferent structures for many
different kinds of businessesall over the globe. But my
thesis is that the supply chainis the product, and so it's
basically talking about, youknow, the machinery that also is
(05:18):
involved, and not just the humancraftsmanship, but the
machinery. And so thisdiscussion really led to sort of
a larger these viral videos,rather, led to a larger
discussion around where ourstuff comes from, how we, you
know, think about nationalsecurity and also realizing, I
think, some larger trends thatare going on in the world. And I
(05:42):
think, you know, the point of alot of those viral videos that
we saw, which have since beendeleted. You know, a lot of
those videos have been deletedfor what reasons? I do not know.
I can only assume, but there isa message behind some of those
videos, and that is, you know,there's, there's only really one
(06:02):
country in the world that knowsthe buying habits of, you know,
American consumers, and that'sthe Chinese. They want you to
buy more from them. A contentcreator, James Lee over on
YouTube. He's done somefantastic investigative
journalism, and one of thetopics that he covered was this
exact point was being thesevideos are having the goal of,
(06:26):
even though there's this momentof time where everybody is
talking about, you know,switching their manufacturing.
Is it near shoring is itoffshoring? Is it trying to
build it in America? Is ittrying to build it in a friendly
country? Maybe a friendly rightnow country, but the Chinese are
trying to get you to still buyfrom them over the long haul. So
(06:50):
I think it's important for and Iwant to read off some of these
numbers that I put together forthis BBC appearance, and it's
essentially China's dominanceand control over a very large
portion of a lot of things thatare made in the world. Listen to
this, that 30 to 40% of globalelectronics come from China. 40
(07:11):
to 50% of pharmaceuticals. Sidenote that's not included in my
notes, but a side note is frommap human intent over on x. He
essentially said, he says thatfor the overwhelming majority of
our livestock in the UnitedStates, they depend on a vital
supplement that comes fromChina. And I think over 90% of
(07:31):
our livestock in the UnitedStates is so is reliant on this
one supplement, that if these,if this livestock, does not have
access to that supplement, thenthey will die. And it's
something like they have to haveit every, every single day. But
then if they go for a few dayswithout it, then they are at
(07:52):
risk of of not living, of notsurviving. So that's a very
scary statistic to know thatindividually, 40% 40 to 50% of
pharmaceuticals are controlledby China. But the fact that the
our in, you know, entirelivestock population, damn near
an entire livestock population,is dependent on a supplement
(08:12):
that comes from China as well.
Over 40% of textiles come fromChina. 50% of robotics, the
refining of rare earths,machinery to make the machine,
etc. All of these things arepart of the supply chain
process, and they're mostlybeing done in China. So another
larger trend that I wanted tobring up, so that's that's one
(08:36):
sort of larger, large trend thathas been trending, frankly, for
the the last couple of decades.
Another trend that I think thatthese videos are really, that
have really hinted at, is themorality dilemma, and that for
many of us this, this tariffconversation, these global trade
conversations, this could be amuch needed wake up call on our
(08:56):
own consumerism habits. Few morestats that that James Lee had in
his video, and he said us,household debt has tripled over
the last three over the years,per Forbes, less than 1% of
urban Chinese citizens useconsumer loans to purchase
consumer goods, while 47% of allUS families have installment
(09:17):
loans and 46% carry a creditcard balance. Remember what my
point about? Nobody knows theconsumer. Nobody knows the US
consumer, like China does, andthey know that we are big
spenders. They know that we arewilling to go into debt over
some of these consumerismpractices. And so the morality
dilemma comes into play wheneveryou think about, you know, some
(09:41):
of the, I guess, over the lasthandful of years, the. Lack of
trust in institutions,especially elite high fashion
ones. There's a lot of, youknow, a growing concern about
where products are made, where,you know, fabrics are sourced.
It's sort of a, I think, alifting of the veil moment for
some viewers over on Tiktok,whenever these videos were
(10:05):
released. And I mean, I hadknown that, you know, China has
manufactured, you know, a goodmajority of our products, but I
didn't know it was to thatextent. And I think it's, I even
work in this industry, and Ididn't know it was that many
industries to that level ofextent. And I think that this is
sort of lifting of the veil andof our morality of like, what we
(10:29):
should be doing, what we shouldbe buying, maybe what we should
not be buying. It really isshocking how much of the world
China controls throughcontrolling the their supply
chain and treating the supplychain as a product. Now, on the
flip side, I do think that for alot of these designer bags, you
(10:49):
know, a good move or a good, Iwould say, not, not a good
response, but it was a responsefor many folks, is that they're
just going to go buy directinstead of, you know, going into
a Hermes store and hoping thatyou can get put on a waiting
list to be able to have thehonor, I guess, of spending
(11:09):
1000s of dollars for a designerpurse. You know, maybe you would
be able to do something elsewith that money, and be able to,
you know, buy direct from aChinese manufacturer, instead of
going directly into the theHermes shop. I do think, though,
that there is a certain level ofpeople that for the rest of
(11:30):
their lives, they're always infor really future generations,
they're always going to look fora way to signal wealth, and I
think designer handbags anddesigner clothes and things like
that. Some of the quality canstill be questioned. The
quality, plus the price couldabsolutely be questioned. And
(11:50):
then some of the standardsaround what some of these
companies, they're, I guess,their own morality as well, is
that something that you wouldwant to support with your own
money. And I think what we'reseeing is a greater rise in in
different consumerism paths, andthere's a few trends that I kind
of want to pull on here. So ifyou're not part of that wealth
(12:14):
group that wants to signal thatyou're wealthy, and a designer
handbag is a perfect way to dothat. There are lots of in many
other ways. Cars are one ofthem. Houses are one of them.
There is a few different trendsthat are happening in the United
States in particular. And Ithink that this will will help
(12:35):
resonate, or maybe it might, youmight resonate with some of
these different stats. And theone of the points is that rise
in vintage shops, in fleamarkets. And one of the stats
was, consumer behavior is a keydriver. 70% of global consumers
are planning to buy used goodsthis year, and 86% having bought
(12:55):
or sold pre loved items in thelast 12 months. This trend is
particularly strong amongmillennials and Gen Z, who value
sustainability, with over 1million Instagram posts tagged
sustainable fashion in 2023 nowthere's another aspect to this
trend, and that is the thrill ofthe hunt. So think about it,
(13:16):
from the vintage flea market. Orvintage vintage flea market is
kind of an oxymoron, but thevintage markets a flea market,
these are place and even to thepoint of like home goods or TJ
Maxx, these are side noteretailers that are surviving and
thriving in an era where, youknow, online shopping has, you
(13:37):
know, sort of dominated thelandscape over the last, say,
five years. But then you thinkabout it from the in person
people searching for communitytype angle, and that's where
thrift stores come into play,and that's where, you know,
being able to find somethingthat noone else has is very key.
It's very pivotal. And sometimespeople use this as a
(14:01):
communication method. You know,fashion is very much a
communication style of who youcan communicate to and why of
your own personal interests. Andso it just kind of naturally
makes sense that in a worldwhere things are so especially
clothing, especially fastfashion, so copy paste that
people are looking to stand outa little bit more, and finding
(14:24):
something that is a little bitolder, it's probably made
better. It's better quality. Youcan get it for much cheaper. And
then you can also have that sortof feel good vibe that you're
going to wear, something thatprobably no one else has, none
of your friend group, or, youknow, people out are going to be
(14:44):
wearing. And then you can alsohave the, I guess, the moral
compass of you know, your.
Cycling something instead ofgoing and buying a t shirt from
Shein, that's going to last, youknow, five seconds, and you're
you're going to wash it, andit's going to fall apart. So
(15:05):
there's a little bit of thatmorality at play, too. Now, if
we switch gears a little bit,wait, first, I did want to
mention this stat, becausethere's also the popularity of
online resale platforms, andthat's where I kind of wanted to
switch gears a little bit, is togo into the online aspect of
(15:25):
some of these different, youknow, vintage style or resale
type markets. But the popularityof online resale platforms,
while not directly vintage shopsor flea markets, they also
support the broader market witheBay's pre loved apparel sales
growing over 400% globally fromMarch 2023 to march 2024 That's
(15:45):
an insane stat, 400% globallyfrom March 2023, to march 2024
now what does that look likeonline? It's what you know, kind
of the going back to the theviral videos, it's also a level
of information war, where if youcan win the PR and the
information battle, then you youhave a chance to sort of change
(16:06):
the trajectory of how some ofthese policies are being made,
what the conversation stemsfrom, who's having the
conversations. And so I thinkthat that is the information war
is, is a very key part of thistrade war as well, or hopefully
the trade war is ending. Wedon't know it's depending on
when you're listening to this.
Who knows? I'm recording this onMay 14. We do tentatively have a
(16:30):
trade deal with China right now,so it's not essentially a trade
war anymore. Will that change inthe future? Nobody knows. I'm
recording this at night on May14, just in case it changes
within the next hour or so,which is sometimes has happened
when I've been recording overthe last few weeks during all of
(16:51):
this T word drama, and that is atariff drama. Okay, so what does
that look like online? Now? Whatthis looks like online, and
where we've covered in someprevious episodes, is how
companies are starting to bemore forward with how they talk
about their supply chain online.
(17:11):
There are some websites thatcan't that give out that list
out their entire supply chain,where your supply chain can
become your competitiveadvantage. And so one, okay, one
of the stats that this onecompany, and I'll mention the
company here in just a minute,but they talk about one of those
competitive advantages in thatone dump truck of clothing is
(17:35):
burned every minute of everyday, and the average person buys
a new piece of clothing everyfive days. Now these are all the
all of these numbers are before,sort of the the tariff drama,
which we've seen purchasing falloff of a cliff for sites like
temu and Shein, because that youknow, you're only really buying
(17:56):
these products because you canget them quick and you can get
them cheap. You don't reallycare about sort of the quality,
because you're kind of rollingthe dice anyways. And so that
that's kind of stems back to themorality dilemma that I think
for a lot of folks, we are kindof starting to alter how we
(18:17):
spend money. I mean, at least Iknow for myself, like I had zero
problem ordering, you know, 100bucks worth of Shein clothing,
getting 30 outfits and sending20 of them back.
And I would do this probablyonce or twice a year, just in
order to have maybe, like asummer hall or like a winter
haul of outfits. I'm aFloridian. I don't really have,
(18:39):
you know, a lot of, like, winterclothes. So I bought a ton of
winter clothes. Wasn't surewhich ones I was going to wear,
but then I just ended upshipping and returning back the
rest of them. Now, not so much.
I'm not going to do that now,and that is a morality thing
that I should have recognizedbefore. But it took all of this
sort of global trade drama toreally break myself of just
(19:01):
instantly, like buying thingsand just because it's on my
phone. You know, social mediaads have got me pretty good,
especially on Tiktok. Those atthe way that they can target
content and ads is unlike noother Instagram is also very
good when it comes to targetingas well. But Tiktok will get me
so much more than any otherplatform and but since all of
(19:23):
this drama has started, it hasreally, I would say, cut my
spending on social media, Ithink, has been cut by 80% and
that is a dramatic amount ofsavings. So I don't know if
that's happening for a lot ofother people, but based on the
sales that she in and Timu, Iwould be confident in saying
(19:44):
that that definitely has beenhappening. And we're, you know,
we, before all of this tariffdrama, we were living in a world
where we were just buying moreand more and more and not really
caring about the environment.
But an average person buys a newpiece of clothing or. Five days
in one dump truck of clothing isburned every minute of every
day. That is insane with howmuch we're purchasing. Remember,
(20:08):
a lot of this stuff, it doesn'tlast. And so that's where you
see the trends, and sort of therising of the vintage marts and
the flea markets and things likeand the online resellers and
things like that. So my mythesis around the supply chain
being the product evolves intobrands need to really own their
supply chain and really use itas a marketing competitive
(20:32):
advantage, because people arebecoming more aware also of
greenwashing. Creators have alsomade this their marketing
strategy. If you've checked outthe tanner leather Stein, he
tests leather goods andhighlights the small brands
doing it right. He is a creatorover on Tiktok, and you might
have seen him taking like thesedesigner bags and destroying
(20:55):
them and testing them. He'll cutthem up. He'll, he'll, you know,
rub the leather. He'll do allthese different quality tests to
see if it's actually worth it topurchase these high, expensive
brands. He was doing all of thestorytelling as a hobby, and
then when all of the tariffdrama and global supply chain
(21:16):
drama starts dropping, it waskind of a cool moment to watch
him know exactly where all ofthese materials come from. He's
he's been shining a light on thebrands that have been doing it
right, even smaller brands thatare less famous and also less
expensive, but have betterquality and better artisans that
are putting together thesedifferent bags. He's been
(21:37):
shining a light on them now,because of all this drama, he
has now been able to take hisstorytelling to another level,
where he's building his ownproducts. He's building his own
quality, designer looking bags,and he's doing it all himself.
His name is Tanner leathersteinover on Tiktok. So if you have a
chance to follow him, highly,highly recommend it, because he
(21:58):
he's he's one of those creatorsthat I felt, that I feel, has
been doing things the right wayand building an audience and
building great storytelling inorder to help his audience
become more educated, and then,in the process, now he has a,
you know, he's able to develop aproduct of his own. So I just
think that's super cool, andit's, it's super interesting.
(22:19):
And really, you want to, I wantto support people like that, so
check them out. I'll list themin the show notes. Let me make a
note to myself. Now, there'sanother aspect of this, where
consumers are also becoming moreknowledgeable about the fibers
in the products that they'rebuying. And so for a lot of
folks, I never knew to look atlike thread counts. I never knew
(22:40):
to look at the differentmaterials of what house stuff is
made. I would look at it too. Iwould see like, you know,
polyester, for example. Ifrankly like the way polyester
feels. It's soft, it'scomfortable. It's in a lot of my
workout clothes, but it's alsotrying to kill me as well. And
so knowing that fact, I adjustmy purchasing habits
(23:03):
accordingly, and then alsoknowing that fact, I can better
investigate things that maybe Iwant to spend a little bit extra
money on, but I also don't wantto spend a little bit of extra
money just for the sake of aname, so being able to look at,
you know, really, I weddingseason is upon us. And so
(23:24):
looking for dresses online. If adress is $200 and it's made out
of polyester, I don't think so.
But if it's a workout shirt andit's $20 and it's polyester, I
might think so. And so just nothaving that different
educational awareness that isreally sort of stirred up over
the last couple of years, Iwould say now it's in really in
(23:44):
the mainstream of where yourstuff comes from and the types
of products that are being used.
That's an educational gap thatwe are filling. Now, there's
another company that I did wantto mention that, I think, and
I've mentioned on a previousshow with Grace Sharky freight
Friends episode, but fibers likecotton and wool having the
longest shelf life. Like, Imean, I knew about like cotton
(24:07):
and I knew like wool. Like, I'ma Floridian, so I don't have
much wool stuff. I don'tnecessarily need it all that
much, but there was one companycalled sheep Inc, where they
have transparency andtraceability on all of their
clothing that they sell. And theway that they do this is that
(24:27):
with their they talk about sheepink DNA, and the transparency
and traceability are the piecesof that DNA, and they complete
the picture of a responsiblelabel. Now, how do they do this?
Every piece of of clothing, ormaybe a coat or something that
you buy from sheep ink, it comeswith a tag that's on the code
(24:49):
itself, and you can scan that.
That tag has a QR code on it.
You can scan it, and then youcan go to their site and you can
see the exact. Sheep that itcame from that's still alive.
It's still alive sheep, but youcan see where the wool was taken
from that sheep to make yourproduct. And I think that that
(25:12):
is so cool. It's obviouslysustainability and being an
environmentally friendly brand,and all of those good things,
you can say all of those things,and a lot of companies try to
say those things, but thissheep, Inc, takes it a step
further, where you can actuallysee the sheep that your product
was coming from, and you can doit, and it's built right into
(25:33):
the label, and it's built rightinto the ethos of the company.
So they not only are practicingwhat they preach, but they're
teaching their consumers in theprocess of where their product
is coming from, the supply chainis the product. And that's the
point I really want to hammerhome, is that this can be a
competitive advantage. I don'tthink that sheep Inc is going to
(25:54):
be the last company that everdoes this. I think that the
companies who are moreforthcoming with their supply
chain and how their products getto you, how they they charge
money, and each step of thatprocess, I think that
transparency is what people arecraving, because they want to
(26:15):
know how stuff works. They wantto know where their stuff is
coming from, and they also wantto know that you're not scamming
them, and that's another side ofthe coin where you have a lot of
brands who are a little fakeabout their environmentalism.
They're a little fake abouttheir sustainability goals. They
(26:36):
talk a good game, but they don'texactly live up to it. And so if
you are curious about, you know,any company, there are a couple
different sites that can orthere's one site in particular,
it's called Good on you dot eco.
So good on you dot eco, whereyou can see companies that are
true or kind of fibbing abouttheir supply chain and how
(26:58):
environmentally friendly theyare. So you can use use that
site is kind of like a crossreference in order to make sure
that you know you or not to makesure, but to maybe support a
brand with your money that aredoing things the right way. So
check out that site. Thenthere's another site called
trashy.io where, if you're goingthrough, you know, this sort of
(27:21):
springtime right now, you I dothis in the fall as well, but
you're cleaning out your entirecloset, and you're making room
for new stuff to go buy, ormaybe, you know, not buy as
much. Yeah, it's neither herenor there. But if you're looking
to get rid of some items,there's a company called
trashy.io where you pay for abag. So you pay for, like a
(27:41):
giant bag, a shipping bag.
Essentially, they send it toyou. You're typically are paying
like 10 bucks for a fewdifferent bags. They do this for
electronics as well. And so theysend it back to you. You fill it
up, you send it back. And thenthey tell they give you a
certain amount of money inpartner money that you could
(28:01):
spend on their partner sites. Solet's use different retailers.
For example, we'll partner withtrashy to say that, hey, if
you're going to clean out roomin your closet by donating a
bunch of goods, then you'regoing to get a little bit of
cash back, and then you can useit to spend at our different
retail partners. I love thatthey do it with consumer
(28:23):
electronics as well. I can'ttell you how many damn USB cords
I have just everywhere. The factthat a USB cord is shipped with
every single product when we allhave more than enough of what we
need. As far as USB cords areconcerned, I sustainability idea
is give people the option toship with or without the USB
cord so we don't have to keepgoing through this constantly. I
(28:44):
cannot imagine how much waste isbeing created every single day
based on USB cords that noone isgoing to use. So trashy does
that as well, where they have anelectronics component bag that
you can send in all of yourspare electronic components, so
you don't have to, you know,throw them in the nearest
landfill or littered orwhatever, or maybe they just sit
(29:06):
in a drawer somewhere. So putthem to good use. So I'll put
both of those links in the shownotes, just to make it easy. But
just the last few points I wantto wrap up here based on that
BBC appearance, is that thesupply chain is now the product.
You can use this as yourmarketing advantage, and then
you can also just use it as amorality advantage. So
(29:27):
transparency, open, I think thatthat will lead to greater gains
in the future for both brandsand just the planet in general.
So the supply chain is now theproduct. Every business owner
should be aware of it, but youcan only focus on what you can
control. So prioritizingdiversity of sources income and
maintaining optionality is keyto a lot of phases in life, but
(29:49):
especially your supply chain. SoI will also link to that BBC.
Interview. In case you wanted totake a listen, we'll put all of
those links in the show notes,just to make things easy. But I
just kind of wanted to spreadthis thesis far and wide, that
your supply chain is now theproduct, and you could benefit
massively by showcasing ifyou're doing things the right
(30:10):
way, and if you're not doingthings the right way, or you
want to support companies thatare doing things the right way.
There are also additionalresources as well. So hope you
guys enjoyed this episode.
Thanks for tuning in, and we'llsee in the next one. Thanks for
tuning in to another episode ofeverything is logistics, where
(30:32):
we talk all things supply chainfor the thinkers in freight, if
you liked this episode, there'splenty more where that came
from. Be sure to follow orsubscribe on your favorite
podcast app so you never miss aconversation. The show is also
available in video format overon YouTube, just by searching
everything is logistics, and ifyou're working in freight
(30:53):
logistics or supply chainmarketing, check out my company,
digital dispatch, we help youbuild smarter websites and
marketing systems that actuallydrive results, not just vanity
metrics. Additionally, if you'retrying to find the right freight
tech tools or partners withoutgetting buried in buzzwords,
head on over to cargorex.iowhere we're building the largest
(31:14):
database of logistics servicesand solutions. All the links you
need are in the show notes. I'llcatch you in the Next episode in
Go Jags
Welcome into another episode of Everything is
(00:03):
Logistics, a podcast for thethinkers and afraid. I am your
host, void Milligan, and we areproudly presented by SPI
logistics. And in this episode,I want to talk about a recent
appearance that I had on the BBCcalled a show called What in the
World? Now, this is an audiobased podcast that they
sometimes turn into videoformat, but it's available over
(00:26):
on YouTube. I will list it inthe show notes, in case you want
to check out the full episode.
But it was about 30 minutediscussion, discussion centered
around how the global supplychain kind of works. I think for
a lot of folks, obviously not inour industry, but for a lot of
outsiders, there are a fewmoments over the last, say,
(00:47):
handful of years, that thesupply chain becomes top of news
for them, the ever given gettingstuck in the Suez Canal was One
of the bigger pivotal momentsthis whole tariff conversation
was another pivotal moment. Andthen there was also, whenever
the tariff conversationhappened, there were a lot of
(01:07):
Chinese manufacturers and a lotof Chinese sellers that were
taking it directly to Tiktok togo direct to consumer and to
basically tell and inform theAmerican people and really the
world on where the overwhelmingmajority of stuff is
manufactured. How much is thecost for each of these things?
And then it trying toessentially get you to buy
(01:30):
direct from these Chinesemanufacturers, or to take it a
step further, and just from whatI understand and from some of
the videos that I that I watchedand that I gathered, is that
they no longer wanted to be seenas a country that manufactures
the the cheapest goods. Theywanted their their manufacturers
(01:51):
and their artisans to be knownas people who do very quality
work. And that, I think there's,there's definitely a hint of
truth on that end. And thenthere's definitely a hint of
truth on just, you know, a bunchof, frankly, you know, plastic
junk that's, you know, beenmanufactured because China is
(02:11):
the center of the world when itcomes to manufacturing
processes. So they manufacture avariety of different goods from
the lower end, sort of the cheapcrap that you know is maybe
they're trying to get aroundthat image and get around that
perception and shine a light onwhere they're really their
(02:31):
craftsmanship is really taking afoothold, and that's in the
designer bag market. So a lot ofthese videos went viral. They
started out on Tiktok, showingexactly how the processes is
made from all kinds of differentproducts, but I was mainly
talking about the videos thatwere on designer handba handbags
(02:52):
for this particular episode, itbasically it formed a new thesis
for myself, that the supplychain is really the product.
Because for the first time inhuman civilization, we are
seeing the global trade re bereorganized right in front of
our eyes. You know the overhundreds, sometimes 1000s of
(03:12):
years. You know global trade andports and shipping, and you know
where those goods are shippedand who buys them, and why, you
know, has all been decided by avery small amount of people in
all over the world. And in thisparticular case, in 2025 we are
able to see these discussionstake place in a public format,
(03:33):
which I think is just like as aside note, is so fascinating.
But then on the flip side, weare now able to see the hows and
the whys of these discussionsbeing made. And I want to bring
it back to a quote that I heardyears ago where Elon Musk talks
about how the factory is theproduct and that you can't have.
(03:54):
And basically what he was sayingis that you can't have a good
product that's affordable andtrustworthy and dependable, and
you know, all the things thatyou want out of a product that's
being made, you can't have thatunless you have the factory. I
would take it a step further andsay the supply chain is the
(04:15):
factory. Because the the thesisof of what, and the the point I
wanted to really hammer homeduring this BBC appearance is
that you have to think aboutit's not just, let's use the
designer handbag example for asecond, because you can't just
think about where the leatheris. Maybe the leather is brought
(04:35):
in, or the threads that issewing the leather together, the
metal that's on the bag. Whereis that metal sourced? It's not
necessarily the factory thatputs it all together. It's the
source of the source of theproducts, of where you're
getting all over the world, andthen how you're bringing those.
(04:55):
All under in house, or whetheryou're using different
manufacturing partners orassembly partners or packaging
partners. There's lots ofdifferent structures for many
different kinds of businessesall over the globe. But my
thesis is that the supply chainis the product, and so it's
basically talking about, youknow, the machinery that also is
(05:18):
involved, and not just the humancraftsmanship, but the
machinery. And so thisdiscussion really led to sort of
a larger these viral videos,rather, led to a larger
discussion around where ourstuff comes from, how we, you
know, think about nationalsecurity and also realizing, I
think, some larger trends thatare going on in the world. And I
(05:42):
think, you know, the point of alot of those viral videos that
we saw, which have since beendeleted. You know, a lot of
those videos have been deletedfor what reasons? I do not know.
I can only assume, but there isa message behind some of those
videos, and that is, you know,there's, there's only really one
(06:02):
country in the world that knowsthe buying habits of, you know,
American consumers, and that'sthe Chinese. They want you to
buy more from them. A contentcreator, James Lee over on
YouTube. He's done somefantastic investigative
journalism, and one of thetopics that he covered was this
exact point was being thesevideos are having the goal of,
(06:26):
even though there's this momentof time where everybody is
talking about, you know,switching their manufacturing.
Is it near shoring is itoffshoring? Is it trying to
build it in America? Is ittrying to build it in a friendly
country? Maybe a friendly rightnow country, but the Chinese are
trying to get you to still buyfrom them over the long haul. So
(06:50):
I think it's important for and Iwant to read off some of these
numbers that I put together forthis BBC appearance, and it's
essentially China's dominanceand control over a very large
portion of a lot of things thatare made in the world. Listen to
this, that 30 to 40% of globalelectronics come from China. 40
(07:11):
to 50% of pharmaceuticals. Sidenote that's not included in my
notes, but a side note is frommap human intent over on x. He
essentially said, he says thatfor the overwhelming majority of
our livestock in the UnitedStates, they depend on a vital
supplement that comes fromChina. And I think over 90% of
(07:31):
our livestock in the UnitedStates is so is reliant on this
one supplement, that if these,if this livestock, does not have
access to that supplement, thenthey will die. And it's
something like they have to haveit every, every single day. But
then if they go for a few dayswithout it, then they are at
(07:52):
risk of of not living, of notsurviving. So that's a very
scary statistic to know thatindividually, 40% 40 to 50% of
pharmaceuticals are controlledby China. But the fact that the
our in, you know, entirelivestock population, damn near
an entire livestock population,is dependent on a supplement
(08:12):
that comes from China as well.
Over 40% of textiles come fromChina. 50% of robotics, the
refining of rare earths,machinery to make the machine,
etc. All of these things arepart of the supply chain
process, and they're mostlybeing done in China. So another
larger trend that I wanted tobring up, so that's that's one
(08:36):
sort of larger, large trend thathas been trending, frankly, for
the the last couple of decades.
Another trend that I think thatthese videos are really, that
have really hinted at, is themorality dilemma, and that for
many of us this, this tariffconversation, these global trade
conversations, this could be amuch needed wake up call on our
(08:56):
own consumerism habits. Few morestats that that James Lee had in
his video, and he said us,household debt has tripled over
the last three over the years,per Forbes, less than 1% of
urban Chinese citizens useconsumer loans to purchase
consumer goods, while 47% of allUS families have installment
(09:17):
loans and 46% carry a creditcard balance. Remember what my
point about? Nobody knows theconsumer. Nobody knows the US
consumer, like China does, andthey know that we are big
spenders. They know that we arewilling to go into debt over
some of these consumerismpractices. And so the morality
dilemma comes into play wheneveryou think about, you know, some
(09:41):
of the, I guess, over the lasthandful of years, the. Lack of
trust in institutions,especially elite high fashion
ones. There's a lot of, youknow, a growing concern about
where products are made, where,you know, fabrics are sourced.
It's sort of a, I think, alifting of the veil moment for
some viewers over on Tiktok,whenever these videos were
(10:05):
released. And I mean, I hadknown that, you know, China has
manufactured, you know, a goodmajority of our products, but I
didn't know it was to thatextent. And I think it's, I even
work in this industry, and Ididn't know it was that many
industries to that level ofextent. And I think that this is
sort of lifting of the veil andof our morality of like, what we
(10:29):
should be doing, what we shouldbe buying, maybe what we should
not be buying. It really isshocking how much of the world
China controls throughcontrolling the their supply
chain and treating the supplychain as a product. Now, on the
flip side, I do think that for alot of these designer bags, you
(10:49):
know, a good move or a good, Iwould say, not, not a good
response, but it was a responsefor many folks, is that they're
just going to go buy directinstead of, you know, going into
a Hermes store and hoping thatyou can get put on a waiting
list to be able to have thehonor, I guess, of spending
(11:09):
1000s of dollars for a designerpurse. You know, maybe you would
be able to do something elsewith that money, and be able to,
you know, buy direct from aChinese manufacturer, instead of
going directly into the theHermes shop. I do think, though,
that there is a certain level ofpeople that for the rest of
(11:30):
their lives, they're always infor really future generations,
they're always going to look fora way to signal wealth, and I
think designer handbags anddesigner clothes and things like
that. Some of the quality canstill be questioned. The
quality, plus the price couldabsolutely be questioned. And
(11:50):
then some of the standardsaround what some of these
companies, they're, I guess,their own morality as well, is
that something that you wouldwant to support with your own
money. And I think what we'reseeing is a greater rise in in
different consumerism paths, andthere's a few trends that I kind
of want to pull on here. So ifyou're not part of that wealth
(12:14):
group that wants to signal thatyou're wealthy, and a designer
handbag is a perfect way to dothat. There are lots of in many
other ways. Cars are one ofthem. Houses are one of them.
There is a few different trendsthat are happening in the United
States in particular. And Ithink that this will will help
(12:35):
resonate, or maybe it might, youmight resonate with some of
these different stats. And theone of the points is that rise
in vintage shops, in fleamarkets. And one of the stats
was, consumer behavior is a keydriver. 70% of global consumers
are planning to buy used goodsthis year, and 86% having bought
(12:55):
or sold pre loved items in thelast 12 months. This trend is
particularly strong amongmillennials and Gen Z, who value
sustainability, with over 1million Instagram posts tagged
sustainable fashion in 2023 nowthere's another aspect to this
trend, and that is the thrill ofthe hunt. So think about it,
(13:16):
from the vintage flea market. Orvintage vintage flea market is
kind of an oxymoron, but thevintage markets a flea market,
these are place and even to thepoint of like home goods or TJ
Maxx, these are side noteretailers that are surviving and
thriving in an era where, youknow, online shopping has, you
(13:37):
know, sort of dominated thelandscape over the last, say,
five years. But then you thinkabout it from the in person
people searching for communitytype angle, and that's where
thrift stores come into play,and that's where, you know,
being able to find somethingthat noone else has is very key.
It's very pivotal. And sometimespeople use this as a
(14:01):
communication method. You know,fashion is very much a
communication style of who youcan communicate to and why of
your own personal interests. Andso it just kind of naturally
makes sense that in a worldwhere things are so especially
clothing, especially fastfashion, so copy paste that
people are looking to stand outa little bit more, and finding
(14:24):
something that is a little bitolder, it's probably made
better. It's better quality. Youcan get it for much cheaper. And
then you can also have that sortof feel good vibe that you're
going to wear, something thatprobably no one else has, none
of your friend group, or, youknow, people out are going to be
(14:44):
wearing. And then you can alsohave the, I guess, the moral
compass of you know, your.
Cycling something instead ofgoing and buying a t shirt from
Shein, that's going to last, youknow, five seconds, and you're
you're going to wash it, andit's going to fall apart. So
(15:05):
there's a little bit of thatmorality at play, too. Now, if
we switch gears a little bit,wait, first, I did want to
mention this stat, becausethere's also the popularity of
online resale platforms, andthat's where I kind of wanted to
switch gears a little bit, is togo into the online aspect of
(15:25):
some of these different, youknow, vintage style or resale
type markets. But the popularityof online resale platforms,
while not directly vintage shopsor flea markets, they also
support the broader market witheBay's pre loved apparel sales
growing over 400% globally fromMarch 2023 to march 2024 That's
(15:45):
an insane stat, 400% globallyfrom March 2023, to march 2024
now what does that look likeonline? It's what you know, kind
of the going back to the theviral videos, it's also a level
of information war, where if youcan win the PR and the
information battle, then you youhave a chance to sort of change
(16:06):
the trajectory of how some ofthese policies are being made,
what the conversation stemsfrom, who's having the
conversations. And so I thinkthat that is the information war
is, is a very key part of thistrade war as well, or hopefully
the trade war is ending. Wedon't know it's depending on
when you're listening to this.
Who knows? I'm recording this onMay 14. We do tentatively have a
(16:30):
trade deal with China right now,so it's not essentially a trade
war anymore. Will that change inthe future? Nobody knows. I'm
recording this at night on May14, just in case it changes
within the next hour or so,which is sometimes has happened
when I've been recording overthe last few weeks during all of
(16:51):
this T word drama, and that is atariff drama. Okay, so what does
that look like online? Now? Whatthis looks like online, and
where we've covered in someprevious episodes, is how
companies are starting to bemore forward with how they talk
about their supply chain online.
(17:11):
There are some websites thatcan't that give out that list
out their entire supply chain,where your supply chain can
become your competitiveadvantage. And so one, okay, one
of the stats that this onecompany, and I'll mention the
company here in just a minute,but they talk about one of those
competitive advantages in thatone dump truck of clothing is
(17:35):
burned every minute of everyday, and the average person buys
a new piece of clothing everyfive days. Now these are all the
all of these numbers are before,sort of the the tariff drama,
which we've seen purchasing falloff of a cliff for sites like
temu and Shein, because that youknow, you're only really buying
(17:56):
these products because you canget them quick and you can get
them cheap. You don't reallycare about sort of the quality,
because you're kind of rollingthe dice anyways. And so that
that's kind of stems back to themorality dilemma that I think
for a lot of folks, we are kindof starting to alter how we
(18:17):
spend money. I mean, at least Iknow for myself, like I had zero
problem ordering, you know, 100bucks worth of Shein clothing,
getting 30 outfits and sending20 of them back.
And I would do this probablyonce or twice a year, just in
order to have maybe, like asummer hall or like a winter
haul of outfits. I'm aFloridian. I don't really have,
(18:39):
you know, a lot of, like, winterclothes. So I bought a ton of
winter clothes. Wasn't surewhich ones I was going to wear,
but then I just ended upshipping and returning back the
rest of them. Now, not so much.
I'm not going to do that now,and that is a morality thing
that I should have recognizedbefore. But it took all of this
sort of global trade drama toreally break myself of just
(19:01):
instantly, like buying thingsand just because it's on my
phone. You know, social mediaads have got me pretty good,
especially on Tiktok. Those atthe way that they can target
content and ads is unlike noother Instagram is also very
good when it comes to targetingas well. But Tiktok will get me
so much more than any otherplatform and but since all of
(19:23):
this drama has started, it hasreally, I would say, cut my
spending on social media, Ithink, has been cut by 80% and
that is a dramatic amount ofsavings. So I don't know if
that's happening for a lot ofother people, but based on the
sales that she in and Timu, Iwould be confident in saying
(19:44):
that that definitely has beenhappening. And we're, you know,
we, before all of this tariffdrama, we were living in a world
where we were just buying moreand more and more and not really
caring about the environment.
But an average person buys a newpiece of clothing or. Five days
in one dump truck of clothing isburned every minute of every
day. That is insane with howmuch we're purchasing. Remember,
(20:08):
a lot of this stuff, it doesn'tlast. And so that's where you
see the trends, and sort of therising of the vintage marts and
the flea markets and things likeand the online resellers and
things like that. So my mythesis around the supply chain
being the product evolves intobrands need to really own their
supply chain and really use itas a marketing competitive
(20:32):
advantage, because people arebecoming more aware also of
greenwashing. Creators have alsomade this their marketing
strategy. If you've checked outthe tanner leather Stein, he
tests leather goods andhighlights the small brands
doing it right. He is a creatorover on Tiktok, and you might
have seen him taking like thesedesigner bags and destroying
(20:55):
them and testing them. He'll cutthem up. He'll, he'll, you know,
rub the leather. He'll do allthese different quality tests to
see if it's actually worth it topurchase these high, expensive
brands. He was doing all of thestorytelling as a hobby, and
then when all of the tariffdrama and global supply chain
(21:16):
drama starts dropping, it waskind of a cool moment to watch
him know exactly where all ofthese materials come from. He's
he's been shining a light on thebrands that have been doing it
right, even smaller brands thatare less famous and also less
expensive, but have betterquality and better artisans that
are putting together thesedifferent bags. He's been
(21:37):
shining a light on them now,because of all this drama, he
has now been able to take hisstorytelling to another level,
where he's building his ownproducts. He's building his own
quality, designer looking bags,and he's doing it all himself.
His name is Tanner leathersteinover on Tiktok. So if you have a
chance to follow him, highly,highly recommend it, because he
(21:58):
he's he's one of those creatorsthat I felt, that I feel, has
been doing things the right wayand building an audience and
building great storytelling inorder to help his audience
become more educated, and then,in the process, now he has a,
you know, he's able to develop aproduct of his own. So I just
think that's super cool, andit's, it's super interesting.
(22:19):
And really, you want to, I wantto support people like that, so
check them out. I'll list themin the show notes. Let me make a
note to myself. Now, there'sanother aspect of this, where
consumers are also becoming moreknowledgeable about the fibers
in the products that they'rebuying. And so for a lot of
folks, I never knew to look atlike thread counts. I never knew
(22:40):
to look at the differentmaterials of what house stuff is
made. I would look at it too. Iwould see like, you know,
polyester, for example. Ifrankly like the way polyester
feels. It's soft, it'scomfortable. It's in a lot of my
workout clothes, but it's alsotrying to kill me as well. And
so knowing that fact, I adjustmy purchasing habits
(23:03):
accordingly, and then alsoknowing that fact, I can better
investigate things that maybe Iwant to spend a little bit extra
money on, but I also don't wantto spend a little bit of extra
money just for the sake of aname, so being able to look at,
you know, really, I weddingseason is upon us. And so
(23:24):
looking for dresses online. If adress is $200 and it's made out
of polyester, I don't think so.
But if it's a workout shirt andit's $20 and it's polyester, I
might think so. And so just nothaving that different
educational awareness that isreally sort of stirred up over
the last couple of years, Iwould say now it's in really in
(23:44):
the mainstream of where yourstuff comes from and the types
of products that are being used.
That's an educational gap thatwe are filling. Now, there's
another company that I did wantto mention that, I think, and
I've mentioned on a previousshow with Grace Sharky freight
Friends episode, but fibers likecotton and wool having the
longest shelf life. Like, Imean, I knew about like cotton
(24:07):
and I knew like wool. Like, I'ma Floridian, so I don't have
much wool stuff. I don'tnecessarily need it all that
much, but there was one companycalled sheep Inc, where they
have transparency andtraceability on all of their
clothing that they sell. And theway that they do this is that
(24:27):
with their they talk about sheepink DNA, and the transparency
and traceability are the piecesof that DNA, and they complete
the picture of a responsiblelabel. Now, how do they do this?
Every piece of of clothing, ormaybe a coat or something that
you buy from sheep ink, it comeswith a tag that's on the code
(24:49):
itself, and you can scan that.
That tag has a QR code on it.
You can scan it, and then youcan go to their site and you can
see the exact. Sheep that itcame from that's still alive.
It's still alive sheep, but youcan see where the wool was taken
from that sheep to make yourproduct. And I think that that
(25:12):
is so cool. It's obviouslysustainability and being an
environmentally friendly brand,and all of those good things,
you can say all of those things,and a lot of companies try to
say those things, but thissheep, Inc, takes it a step
further, where you can actuallysee the sheep that your product
was coming from, and you can doit, and it's built right into
(25:33):
the label, and it's built rightinto the ethos of the company.
So they not only are practicingwhat they preach, but they're
teaching their consumers in theprocess of where their product
is coming from, the supply chainis the product. And that's the
point I really want to hammerhome, is that this can be a
competitive advantage. I don'tthink that sheep Inc is going to
(25:54):
be the last company that everdoes this. I think that the
companies who are moreforthcoming with their supply
chain and how their products getto you, how they they charge
money, and each step of thatprocess, I think that
transparency is what people arecraving, because they want to
(26:15):
know how stuff works. They wantto know where their stuff is
coming from, and they also wantto know that you're not scamming
them, and that's another side ofthe coin where you have a lot of
brands who are a little fakeabout their environmentalism.
They're a little fake abouttheir sustainability goals. They
(26:36):
talk a good game, but they don'texactly live up to it. And so if
you are curious about, you know,any company, there are a couple
different sites that can orthere's one site in particular,
it's called Good on you dot eco.
So good on you dot eco, whereyou can see companies that are
true or kind of fibbing abouttheir supply chain and how
(26:58):
environmentally friendly theyare. So you can use use that
site is kind of like a crossreference in order to make sure
that you know you or not to makesure, but to maybe support a
brand with your money that aredoing things the right way. So
check out that site. Thenthere's another site called
trashy.io where, if you're goingthrough, you know, this sort of
(27:21):
springtime right now, you I dothis in the fall as well, but
you're cleaning out your entirecloset, and you're making room
for new stuff to go buy, ormaybe, you know, not buy as
much. Yeah, it's neither herenor there. But if you're looking
to get rid of some items,there's a company called
trashy.io where you pay for abag. So you pay for, like a
(27:41):
giant bag, a shipping bag.
Essentially, they send it toyou. You're typically are paying
like 10 bucks for a fewdifferent bags. They do this for
electronics as well. And so theysend it back to you. You fill it
up, you send it back. And thenthey tell they give you a
certain amount of money inpartner money that you could
(28:01):
spend on their partner sites. Solet's use different retailers.
For example, we'll partner withtrashy to say that, hey, if
you're going to clean out roomin your closet by donating a
bunch of goods, then you'regoing to get a little bit of
cash back, and then you can useit to spend at our different
retail partners. I love thatthey do it with consumer
(28:23):
electronics as well. I can'ttell you how many damn USB cords
I have just everywhere. The factthat a USB cord is shipped with
every single product when we allhave more than enough of what we
need. As far as USB cords areconcerned, I sustainability idea
is give people the option toship with or without the USB
cord so we don't have to keepgoing through this constantly. I
(28:44):
cannot imagine how much waste isbeing created every single day
based on USB cords that noone isgoing to use. So trashy does
that as well, where they have anelectronics component bag that
you can send in all of yourspare electronic components, so
you don't have to, you know,throw them in the nearest
landfill or littered orwhatever, or maybe they just sit
(29:06):
in a drawer somewhere. So putthem to good use. So I'll put
both of those links in the shownotes, just to make it easy. But
just the last few points I wantto wrap up here based on that
BBC appearance, is that thesupply chain is now the product.
You can use this as yourmarketing advantage, and then
you can also just use it as amorality advantage. So
(29:27):
transparency, open, I think thatthat will lead to greater gains
in the future for both brandsand just the planet in general.
So the supply chain is now theproduct. Every business owner
should be aware of it, but youcan only focus on what you can
control. So prioritizingdiversity of sources income and
maintaining optionality is keyto a lot of phases in life, but
(29:49):
especially your supply chain. SoI will also link to that BBC.
Interview. In case you wanted totake a listen, we'll put all of
those links in the show notes,just to make things easy. But I
just kind of wanted to spreadthis thesis far and wide, that
your supply chain is now theproduct, and you could benefit
massively by showcasing ifyou're doing things the right
(30:10):
way, and if you're not doingthings the right way, or you
want to support companies thatare doing things the right way.
There are also additionalresources as well. So hope you
guys enjoyed this episode.
Thanks for tuning in, and we'llsee in the next one. Thanks for
tuning in to another episode ofeverything is logistics, where
(30:32):
we talk all things supply chainfor the thinkers in freight, if
you liked this episode, there'splenty more where that came
from. Be sure to follow orsubscribe on your favorite
podcast app so you never miss aconversation. The show is also
available in video format overon YouTube, just by searching
everything is logistics, and ifyou're working in freight
(30:53):
logistics or supply chainmarketing, check out my company,
digital dispatch, we help youbuild smarter websites and
marketing systems that actuallydrive results, not just vanity
metrics. Additionally, if you'retrying to find the right freight
tech tools or partners withoutgetting buried in buzzwords,
head on over to cargorex.iowhere we're building the largest
(31:14):
database of logistics servicesand solutions. All the links you
need are in the show notes. I'llcatch you in the Next episode in
Go Jags
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