Marc Iampieri: A Conduit of Change in Global Logistics

Consider your morning cup of coffee.

It begins with farmers cultivating coffee beans. Once the beans are harvested, they're processed and packaged for transportation.

The beans are then transported, often by truck, to a local port. From there, they're loaded onto a cargo ship that sails across oceans to arrive at the importing country. This part of the process involves a mix of logistics providers, customs brokers, and freight forwarders.

Once the beans arrive, they're transported to a roasting facility. The beans are then roasted according to specifications, ground (if necessary), and packaged.

The packaged coffee is then sent to various retailers using a network of distributors and logistics providers. This can involve air, rail, or road transport.

Finally, after all that, the coffee lands on the shelf of your local supermarket or the menu of your favorite coffee shop, ready for you to purchase and enjoy.

Every step of this process is part of the supply chain. If there's a hiccup anywhere - for example, a transport strike, a crop disease, or a new trade tariff, it can affect the price, availability, and quality of your coffee. It's a great example of how intertwined our everyday lives are with the global supply chain.

And that’s how vital Marc Iampieri’s work is.

Marc’s story is a testament to how far curiosity and hard work can take one. Born in Baltimore, MD, and currently residing in the leafy suburbs of Philadelphia, Marc’s journey is steeped in the nostalgia of Americana: "I had summer jobs in high school, starting at the age of 15 with a workers permit, in warehousing and as a delivery driver." This wasn't just any summer job for a teenager, but rather the early stages of a dedicated career in logistics and supply chain management.

His career path may sound complex, even alien, to the uninitiated. And yet logistics and supply chain management are the backbone of our civilizational infrastructure. Imagine it as a game of chess, with Marc strategically moving pieces - goods, vehicles, services - around the board, which is, in reality, a global map. His aim? To optimize routes, reduce costs, and ensure efficiency. It's like solving a different puzzle every day.

Over the years, his summer job experiences blossomed into a remarkable career, one that led him to his current role as a Partner & Managing Director at AlixPartners, where he's also a Co-lead of the global Transportation, Shipping, and Infrastructure practice. Through this journey, Marc has honed a broad spectrum of skills—and a sense of humor, stating, "I am currently 45 years of age, but frequently pass for 44."

Marc Iampieri's expertise in navigating the intricacies of logistics and supply chain management is best exemplified by the real-world impact he's made for his clients. Imagine a bustling highway, with trucks whizzing by carrying goods from one end of the country to the other. Now envision someone with the ability to optimize that highway, making it more efficient, faster, and cost-effective. That person is Marc.

One instance had Marc assist a client who had been shipping orders via third-party consolidation service. Picture this as entrusting all your mail to a friend who promises to post them for you. It's an excellent service when you're starting, but as you grow, it might become inefficient. Marc noted this for the client and identified lanes that could be managed directly with contracted carriers, leading to substantial savings and improved services—it's as if they graduated from mailing letters one by one to utilizing the full power of the postal system.

In another example, he led a team to consolidate the distribution footprint of a food manufacturer and distributor. As a result, freight costs were slashed by over 20%, and customer shipping became more regular and efficient, further freeing up working capital.

Another time, he helped an international ocean shipping client, who had limited visibility between its regional units, as if they were ships lost in a dense fog. This lack of visibility resulted in hefty Demurrage and Detention fees, equivalent to paying unnecessary parking tickets for their ships. Marc and his team shone a light on the root causes, guiding the client to reduce these fees significantly, saving them tens of millions of dollars annually.

According to Marc, the cornerstone of these successful strategies was getting "all stakeholders to agree on the magnitude of the current situation.”

As far as challenges to supply chains, Marc notes that scale often poses a hurdle, especially for distributors. Smaller facilities can struggle to achieve an attractive ROI for automation and technology upgrades, leaving them behind on the technology curve.

Marc has seen companies continue to use systems born in the 90's, shackling them with limitations on cost and inventory visibility. But, as Marc puts it, "the good news is that there are options for distributors that are still using older technology or paper-based inventory control systems." These companies can deploy mid-market technology solutions.

Another challenge is the often decentralized structure of these companies, designed to maximize service to local markets but unintentionally creating barriers to efficiency.

In Marc's words, a key factor in overcoming these challenges is "developing buy-in at the local level," giving senior management the confidence to invest in the necessary changes. By securing this buy-in, Marc helps to smooth the road ahead, guiding these companies towards operational transformation.

When asked about his key insights shared as a guest speaker at industry conferences, Marc taps into the pulse of a few pivotal movements.

Firstly, he highlights the rise of zero-carbon targets and the ESG (Environmental, Social, Governance) agenda: it's not just about delivering goods, it’s about doing so sustainably. However, Marc warns against 'greenwashing,' the insincere display of environmental friendliness likened to a veneer of paint over rotting wood. He emphasizes that genuine ESG focus can "transform... into a differentiator for businesses, rather than just a cost center or a marketing stunt."

Secondly, he highlights electrification, the process of switching to electric vehicles. While small package “last-mile” operations find going electric beneficial, larger operators face challenges: electric vehicles are simply too heavy. In Marc's words, this can "drive down overall economics of operations quite significantly."

The power dynamics within the logistics industry are like a seesaw, according to Marc. He identifies a current shift favoring customers but warns against the cyclical nature of the market, with costs likely to rebound as rates normalize.

When it comes to M&A transaction support, Marc approaches it like a seasoned chess player considering multiple potential outcomes, or a gardener assessing the quality of the soil before planting a tree. His primary concern is managing downside risk and understanding the alternative strategies if things don't go as planned. This approach helps in quantifying the impact of potential synergies and looking for any possible show stoppers. The heart of Marc's approach remains consistent: pragmatic risk management and a "real world" view on the benefits of the transaction.

When asked about optimising fleet operations and logistics services providers, Marc underscores the importance of smart technology deployment, even in tough times of high interest rates and volume depression.

Imagine your supply chain as a busy city - each technology, whether it's routing, tracking, digital twin, or AI, is akin to an innovative city planning tool that can alleviate traffic, speed up transit, and predict future developments. In Marc's words, these technologies offer "practical use...to better predict future behaviors."

Next, Marc suggests "sweating" your assets—extracting more value from resources you already have in place, rather than investing in new ones. It's akin to carefully tending a garden, making sure you're getting the best out of every patch of soil and every plant. These actions could range from improved fleet deployment to evaluating higher-cost financing structures.

Flexibility is also essential for fleet operations. Marc encourages formulating a fleet asset structure that allows scaling assets up and down to deal with market shocks. It's about setting a base capacity, setting a steady pace, while keeping some stamina in store when the terrain gets rough.

And lastly, "Cash is king," Marc reminds us. Just as you wouldn't skimp on routine health checks to save money, businesses shouldn't get caught in the cycle of deferred maintenance. It's easier to maintain a well-oiled machine than fix a broken one. While this might seem counterintuitive to growth, a long-term view is crucial in asset-intensive businesses.

Marc’s lessons on organisational design in the context of supply chain has lessons for us all. He starts by understanding the existing structure, considering its evolution over time, and identifying its inherent biases. Some companies might be manufacturing-centric or customer-centric, with varying understandings of the cost to serve the customers. Upon understanding the requirements, Marc then designs a lean organization, with the right mix of people, processes, and technology. Like diversity in any ecosystem, different talents are needed across the organization, both in central and operational roles.

Discussing the role of emerging technologies like artificial intelligence and blockchain, Marc sees them as game-changers in transportation and logistics. “Artificial intelligence is already playing a role today in applications such as demand and supply forecasting, fleet route optimization, inventory planning and customer service applications.  Blockchain is a proven technology, but requires multiple parties to agree to the protocol.”

Marc’s guiding principle is applicable to both life and work, and is embodied in the way he communicates his wealth of knowledge: “In my opinion, the best approach is to be very honest and direct. That approach leads to resolving issues in the shortest amount of time.  Time is your most precious resource. It is the most valuable thing you have. It is perishable, it is irreplaceable, and it cannot be saved. So, I don't waste time and get straight to the point.”

The supply chain and logistics industry can seem intimidating from afar—from its technical language to its comprehensive infrastructure across the world. But it is a world that keeps not just our global economy afloat, but our civilization. And in that way, it is one of the most overlooked feats of our civilization. So the next time you receive a package from online shopping, or drink your morning cup of coffee, think of that pinnacle of human achievement, the challenges that were overcome to make that journey happen, and of the professionals, like Marc Iampieri, pushing the boundaries of supply chain and logistics every day.

Watch Marc in our very first episode of GrowthX with Dr. Melissa Sassi here: 

Images courtesy of: Marc Iampieri, WTA Group