Chain Reaction: Dispatch Science CEO Arthur Axelrad on Turning Logistics into a ‘Customer Experience Engine'
Chain Reaction is Sourcing Journal's discussion series with industry executives to get their take on today's logistics challenges and learn about ways their company is working to keep the flow of goods moving. Here, Arthur Axelrad, co-founder & CEO of Dispatch Science, discusses how the transportation management company is leveraging artificial intelligence (AI)-powered solutions to streamline operations and provide real-time visibility for customers.
Name: Arthur Axelrad
More from Sourcing Journal
US, Allies Warn of Russian Cyber Campaign Targeting Western Logistics Firms
Logistics M&As: E2Open Taken Private in $2.1B Deal, UPS Sells Ware2Go to Stord
US-Based Chinese Logistics Firms Caught Using Counterfeit USPS Labels
Title: Co-founder & CEO
Company: Dispatch Science
What is Dispatch Science?
Dispatch Science is a cloud-first logistics and delivery software platform and a leader in next-generation transportation management software for last-mile couriers and delivery businesses.
We use the power of AI, algorithms and integrated route optimization to simplify and streamline all aspects of dispatching and delivery operations for on-demand and last-mile shippers, carriers and couriers.
What industries do you primarily serve?
We primarily serve courier and parcel delivery, medical and pharmaceutical logistics, retail and e-commerce and third-party logistics (3PLs) companies.
Which industry do you think has the most to teach fashion about improving their supply chain logistics?
I'd say that medical logistics is a good one to look to. When you're handling life-saving medications or organ transplants, you need to develop and uphold incredible precision surrounding the chain of custody—every item tracked from source to patient with complete auditable logs. Fashion brands, especially luxury and sustainability-focused ones, could learn so much from this. Imagine being able to prove the authentic journey of a limited-edition handbag or verify those sustainability claims everyone's making.
The exception management protocols in medical are also fascinating—they have sophisticated workflows for when things go wrong, rather than scrambling to figure it out in the moment. For example, if a temperature-controlled pharmaceutical shipment goes outside the required range, there are predefined protocols: immediate alerts to all stakeholders, automatic rerouting to the nearest compliant facility, documentation requirements for regulatory compliance and clear escalation paths depending on the severity.
Compare that to fashion, where a delayed shipment of limited-edition sneakers might trigger a flurry of panicked phone calls and improvised solutions. Medical logistics teaches you to plan for failure scenarios upfront, so when they happen—and they will—you have tested procedures that minimize impact and maintain service levels.
What are the main things brands and retailers could do (or stop doing) right now that would immediately improve logistics?
Replacing legacy electronic data interchange (EDI) systems with modern advanced passenger information (API) systems. I can't tell you how many companies I see still operating on batch processing that updates once or twice a day while their customers expect real-time everything. It's like trying to compete in Formula 1 with a horse and buggy! Even streamlining packaging can give immediate returns. We've seen clients substantially cut shipping costs by rightsizing boxes and ditching unnecessary materials. Above all, though, I'd encourage leaders to stop thinking of logistics as this necessary evil and start treating it as a customer experience engine instead. A delivery experience is often the last touchpoint a customer has with a brand, so they need to make it memorable for the right reasons.
When it comes to creating efficiencies, there are quick wins and longer plays. What are a few things your company is doing to help its partners succeed on both fronts?
For immediate impact, we insist on carriers using tech-enabled solutions with AI-based route optimization. This isn't just about transparency (though that's important), it's about real cost reduction through better routing. Automating customer notifications is another quick win that dramatically reduces support calls.
Long-term, we're focused on building predictive analytics capabilities for demand and capacity planning. This helps get ahead of seasonal fluctuations rather than constantly reacting. The holy grail is of course end-to-end visibility with both upstream and downstream partners. When suppliers, carriers and customers are all connected through shared data, companies can best optimize the entire network rather than just their piece of it. Our platform is modular, too, so it scales with clients from startups to enterprise fleets.
What is the one thing brands and retailers could be doing to make better use of technology to improve logistics?
Integration, integration, integration! Most companies have these islands of technology: Their transportation management system (TMS) talks to their warehouse system, their inventory system talks to their point of sale (POS), but nothing talks to everything else. When you create a unified view of operations, however, you unlock optimization opportunities that weren't visible before.
This integration enables AI-powered demand forecasting, dynamic pricing and real-time visibility platforms that actually improve customer communication and reduce failed deliveries. The technology exists, it's just a matter of connecting the dots.
Are you optimistic about the state of supply chains in the next few years?
I'm cautiously optimistic. Yes, we're dealing with unprecedented challenges like labor shortages, geopolitical instability and evolving consumer expectations. However, the rapid adoption of AI, automation and data-driven decision-making is creating much more resilient and adaptive supply chains.
What gives me the most hope is seeing technology democratization happen in real-time. Smaller operators are gaining access to capabilities that were previously only available to enterprise companies. When a 50-truck carrier can compete on technology with a 5,000-truck fleet, it levels the playing field and drives innovation across the entire industry.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNBC
40 minutes ago
- CNBC
CNBC Daily Open: The S&P 500 hits a high — but as Trump gives, so can he take
Something I rarely, if ever, say: What a wonderful Monday morning! On Friday stateside, the S&P 500 broke its previous record. Celebrations were shared with the Nasdaq Composite, which also hit a new high. The tech-heavy index enjoyed a liftoff from Nvidia and Microsoft, both of which reached all-time highs (and probably made some insiders at Nvidia multi-millionaires over the past month). Tariff relief buoyed sentiment in markets. China announced it had finalized details of its deal with the United States. And even though U.S. President Donald Trump's "reciprocal" tariffs are due to kick in (again) one week later, he suggested that his administration "can do whatever we want" regarding the 90-day pause. Postponing the return of those tariffs would give investors further cheer and put another feather, perhaps of the chicken variety, in their caps. That said, as Trump giveth, so does he taketh away. The S&P 500 was up as much as 0.76% at one point during Friday's trading session, but stumbled after the U.S. president slammed the door shut on trade talks with Canada over its digital services tax. Investors took the news in their stride. The index only dipped slightly, but that nonetheless shaved off some gains. U.S. markets open just before Asia heads to bed. May it be in Trump's nature to be a giver, to borrow Chappell Roan's words — so Monday can end as well as it began. New record for S&P 500. The broad-based index rose 0.52% to close at 6,173.07 Friday, surpassing its previous high of 6,147.43. U.S. futures ticked up Sunday evening stateside. The Stoxx Europe 600 popped 1.14% Friday as shares of Barclays and Deutsche Bank rallied to decade highs. China confirms trade deal details with America. The framework covers the export of rare earth metals from China, and the easing of tech restrictions imposed by the U.S., according to a statement released by Beijing on Friday. Trump said the same day he can do "whatever" he wants with tariffs. Talks with Canada 'terminated.' Trump on Friday abruptly announced that the U.S. is ending trade discussions over Ottawa's decision to impose a digital services tax on American tech firms, which will affect titans such as Amazon, Google and Meta. U.S. consumers paid more for goods and services in May. The core personal consumption expenditures price index rose a seasonally adjusted 0.2% for the month, putting annual inflation at 2.7%. Both figures were 10 basis points higher than expected. [PRO] Eyes on U.S. jobs numbers. June's nonfarm payrolls report comes out Thursday and could determine if the rally in U.S. markets continues. Investors will only have half a day to react: U.S. markets close early Thursday and are dark Friday. China's biggest public AI drop since DeepSeek is about to hit the market On Monday, Chinese technology giant Baidu plans to make its Ernie generative AI large language model open source, a move by China's tech sector that could be its biggest in the AI race since the emergence of DeepSeek. "Baidu just threw a Molotov into the AI world," said Alec Strasmore, founder of AI advisory Epic Loot. "OpenAI, Anthropic, DeepSeek, all these guys who thought they were selling top-notch champagne are about to realize that Baidu will be giving away something just as powerful," Strasmore said, comparing Baidu's move to Costco creating Kirkland.
Business of Fashion
an hour ago
- Business of Fashion
Salomon and Arc'teryx Help Amer Sports Defy Downturn With Athleisure Bet
In 2020, Carlo Aragon started the 'Salomonology' Instagram page as a fashion moodboard to help him decide whether to invest $150 in a pair of Salomon XT-6s. He bought it, liking how the shoes looked 'unorthodox.' Others did too — the account now has almost 150,000 followers, intrigued by how trail shoes can pair with streetwear. Aragon's Instagram fame mirrors the ascent of Amer Sports Inc., the company behind Salomon. Since its New York Stock Exchange debut in February 2024, the Helsinki-based group, which also owns outerwear brand Arc'teryx and sports equipment maker Wilson, has nearly tripled its market value to $21 billion. It has outpaced peers like On Holding AG, Hoka parent company Deckers Outdoor Corp. and Anta Sports Products Ltd., the Chinese sporting goods giant that owns a 42% stake in Amer Sports. Amer Sports' growth has beaten the consumer downturn by riding the outdoor activity wave. It's among the mid-tier luxury brands offering shoppers high-quality goods that don't break the bank. The bulk of this rally occurred recently, following first-quarter results that defied a rocky global economy. Sales topped expectations, and the company raised its outlook while others cut theirs. Growth of its Technical Apparel and Outdoor Performance divisions — which respectively house Arc'teryx and Salomon — boosted results, Chief Executive Officer James Zheng said in the most recent earnings call, highlighting the brands' potential. While Salomon sneakers surpassed $1 billion in sales in 2024, it's a fraction of the $180 billion global sneaker market, and Arc'teryx is 'very under-penetrated globally,' he said in the call. Amer Sports declined a request for an interview with an executive. Reversal of fortunes Amer Sports wasn't always this successful. Shares remained subdued after the IPO due to high debt, low trading volume, and significant exposure to a lagging Chinese economy, said Laurent Vasilescu, an analyst at BNP Paribas Exane, who rates the stock outperform. Then in December, Amer Sports issued shares to pay down most of its debt. This move reduced leverage and boosted trading volume, alleviating two of the three primary investor concerns, Vasilescu said in an interview. China, which accounts for about 30% of the company's revenue, remains a concern, though sales in the market have bested expectations every quarter since the IPO. Premium sportswear and outdoor market gear is one of the fastest-growing consumer segments in China, attracting younger and female consumers, as well as luxury shoppers, Chief Financial Officer Andrew Page said on the earnings call. Glamping — short for glamorous camping — and gorpcore – wearing outdoor clothes as everyday wear – are currently trending in China, Vasilescu said. Amer Sports is also attracting middle- and upper-income customers who like the 'quiet luxury' aesthetic and the upscale in-store shopping experience of its brands, he added. That's happening in the US too, where celebrities like Timothée Chalamet and Bella Hadid have been spotted wearing Salomon shoes. Sales in its Americas division have grown every year since 2020 – the earliest publicly available results – though at a slower pace than Greater China's, which is estimated to overtake Europe, the Middle East and Africa as Amer Sports' second-largest market by revenue this year. One fan is Gabriella Gonzalez, a 29-year-old stylist who popped by a Salomon store in New York City's SoHo shopping district on a Friday afternoon. She praised the breathability, waterproofing and style of her pink-and-black XT-6 shoes. 'They make my outfits pop,' she said. About half a mile away is Arc'teryx's largest US store. Customer Chris Rojes said he doesn't mind paying more for Arc'teryx's gear over other brands. 'You feel more special in them.' Arc'teryx distinguishes itself from other outdoor apparel brands like Patagonia Inc. and VF Corp's The North Face through a 'much higher level of premiumization,' said TD Cowen analyst John Kernan, who has a buy rating on Amer Sports. Despite higher prices, consumers are willing to pay for Arc'teryx's 'leading innovation.' Declining consumer brand loyalty and a growing desire for variety also creates an opportunity for Salomon and Arc'teryx to gain market share from industry leaders like Nike Inc. and Adidas AG, Vasilescu said. To keep flying high, Amer Sports needs to go global, analysts said, warning that it's an uphill battle. 'We believe that the global brand rollout will not be easy' due to Arc'teryx's high price points and intense competition in Western outerwear markets, said HSBC analyst Akshay Gupta, who has a hold rating on the company. Morningstar analyst Ivan Su, who has a sell rating, believes Amer Sports' would need a compound annual growth rate of 20% over the next five years to support its currently high valuation, which would require 'near flawless execution' globally. By Rachel Phua and Rachel Yeo Learn more: Amer Sports Raises 2025 Guidance on Strong Demand for Arc'teryx and Salomon Footwear Shares of the athletic apparel and equipment maker hit an all-time high on Tuesday.
Bloomberg
an hour ago
- Bloomberg
China's Envoy Urges Australia to Resist US Pressure on Military Spending
China's envoy to Canberra urged Australia not to be 'incited' by NATO's support for US demands to sharply raise defense spending and instead cooperate with Beijing to resolve regional disputes. Ambassador Xiao Qian, in an opinion article published in The Australian newspaper Monday, wrote that both Australia and China rely on the same trade routes and have a major stake in safeguarding maritime security. He emphasized their roles as key trade partners with 'highly complementary' economies.
