The Digital Supply Chain podcast

Supply chain security - a chat with CakeBoxx Technologies' Michael Stolarczyk

July 30, 2020 Tom Raftery Michael Stolarczyk Season 1 Episode 58
The Digital Supply Chain podcast
Supply chain security - a chat with CakeBoxx Technologies' Michael Stolarczyk
Chapters
The Digital Supply Chain podcast
Supply chain security - a chat with CakeBoxx Technologies' Michael Stolarczyk
Jul 30, 2020 Season 1 Episode 58
Tom Raftery Michael Stolarczyk

I realised recently that I haven't had any episodes of this podcast (58 so far including this one!) dedicated to talking about security - my bad!

So then when I recently came across Michael Stolarczyk, SVP at Cakeboxx Technologies, and author of the book Logical Logistics – A Common Sense Primer for your Supply Chain I asked if he'd be interested in coming on the podcast to talk Cakeboxx' security solutions.

Michael agreed to join me on the podcast and we had a fascinating look into the world of supply chain security. I learned loads (including that you can non-destructively open the seal on a 40 foot container with a wet towel amongst other fascinating tidbits!). 

I really enjoyed putting this podcast together, I hope you enjoy listening to it. If you have any comments/suggestions or questions for the podcast - feel free to leave me a voice message over on my SpeakPipe page or just send it to me as a direct message on Twitter/LinkedIn. Audio messages will get played (unless you specifically ask me not to).

To learn more about how supply chain leaders improve end-to-end supply chain visibility, download the research study of 1,000 COO’s and Chief Supply Chain Officers – “Surviving and Thriving How Supply Chain Leaders minimize risk and maximize opportunities

And if you want to know more about any of SAP's Digital Supply Chain solutions, head on over to www.sap.com/digitalsupplychain and if you liked this show, please don't forget to rate and/or review it. It makes a big difference to help new people discover it. Thanks.

And remember, stay healthy, stay safe, stay sane!



Show Notes Transcript

I realised recently that I haven't had any episodes of this podcast (58 so far including this one!) dedicated to talking about security - my bad!

So then when I recently came across Michael Stolarczyk, SVP at Cakeboxx Technologies, and author of the book Logical Logistics – A Common Sense Primer for your Supply Chain I asked if he'd be interested in coming on the podcast to talk Cakeboxx' security solutions.

Michael agreed to join me on the podcast and we had a fascinating look into the world of supply chain security. I learned loads (including that you can non-destructively open the seal on a 40 foot container with a wet towel amongst other fascinating tidbits!). 

I really enjoyed putting this podcast together, I hope you enjoy listening to it. If you have any comments/suggestions or questions for the podcast - feel free to leave me a voice message over on my SpeakPipe page or just send it to me as a direct message on Twitter/LinkedIn. Audio messages will get played (unless you specifically ask me not to).

To learn more about how supply chain leaders improve end-to-end supply chain visibility, download the research study of 1,000 COO’s and Chief Supply Chain Officers – “Surviving and Thriving How Supply Chain Leaders minimize risk and maximize opportunities

And if you want to know more about any of SAP's Digital Supply Chain solutions, head on over to www.sap.com/digitalsupplychain and if you liked this show, please don't forget to rate and/or review it. It makes a big difference to help new people discover it. Thanks.

And remember, stay healthy, stay safe, stay sane!



Michael Stolarczyk: [00:00:05] So you're reducing costs as it relates to loading and unloading the container. You're reducing risk. You're not putting your your staff in harm's way. It's quicker to load. It's quicker to unload. And then you're not going to have shrinkage. And I think that's that's a big issue, too. So on down the line, you're going to be able to go to your underwriter and say, hey, we have a ship install over the last 12 months because we switched to this equipment. And, you know, that's going to that's going to reduce your fiscal responsibility to insurance and the like. [00:00:38][33.5]

Tom Raftery: [00:00:40] Good morning. Good afternoon or good evening wherever you are in the world. This is the Digital Supply Chain podcast. The number one podcast focussing on the digitisation of supply chain. And I'm your host. Global vice president of SAP, Tom Raftery. Welcome to the Digital Supply Chain podcast. My name is Tom Raftery with SAP and with me on the show today, my esteemed guest is Michael. Michael, would you like to introduce yourself? [00:01:06][26.2]

Michael Stolarczyk: [00:01:08] Tom, thank you very, very much. Good afternoon. It's Michael Stolarczyk senior vice president of Cakeboxx Technologies in McLean, Virginia. It's great to join the show. I'm pretty excited because I think I may be one of your last conversations before you go on holiday this this summer. [00:01:26][18.9]

Tom Raftery: [00:01:27] That's true. Yeah, yeah, yeah. Thanks for bringing that up, Michael. I am looking forward to it. I will be taking most of August off. I may get a couple of podcasts lined up to auto published during August. Hopefully they won't go to zero podcasts for August. I've been maintaining a rhythm for the last six months or so of about two podcasts a week. So listeners to the podcast are going to notice a significant drop off for the month of August. But again, it'll pick up. End of August started September and back into the old rhythm again. But yes, I am looking forward to that break. It's been a it's been a long and, you know, stressful few months given there's been a kind of a pandemic. [00:02:07][39.5]

Michael Stolarczyk: [00:02:09] Yeah, absolutely. So I'm very excited for you. Glad to be able to take advantage of that. You know, I think to your point, it's been a very interesting time in our industry. Cakeboxx Technologies has been around for about eight years. It's it's led by a gentleman by the name Dana Isold, who is our CEO and and also holds some patents for some of our equipment. And in what we do is we create a very secure bespoke container solutions for companies like Boeing, General Dynamics. We know we have relationships with Lockheed Martin, Battelle Institute, Google. And what what we try to do is to take advantage of it and focus on the security aspect of the equipment itself to also help in creating a very consistent supply chain for our our clients, where they don't have to worry about the security to loading the unloading of their payloads in. It's not really driven by by any any type of software solution. And a lot of the digital platforms that you focus on. But it is very important to these high tech organisations and it adds to their risk mitigation. It adds to their ability to to smooth out the supply chain. And in these times, it's just amazing that the challenges that that we face. And, you know, I'm I'm very excited about the opportunity to talk with you a little bit about what we do today and also talk about what's happening in the industry and in the type of solutions and the type of challenges that we're facing. [00:04:03][113.6]

Tom Raftery: [00:04:03] Q Thank you. And I was interested to have you on the show, Michael, because, you know, to my shame, I've not had people on the show talking security in supply chain up to now. And I should have had because it's obviously an important topic. And although your solution isn't a digital supply chain solution, it's more of an analogue physical solution. It's still the security and security is important for supply chain. Hence, I decided to decide. It'd be interesting to have you on the show. And just to clarify, the name of your company is KC Box Technologies. And I I'm assuming that the name KC box comes from the fact that the containers that you supply to your customers for shipping are similar to a cake box. You've got a platform on the bottom onto which they load their stuff and then you've got a lid, a secure lid. You you drop down on top. Just walk me through that. And and also, I'm actually let's let's let's start first of all, what's the problem worth solving? The problem you're solving? I mean, how secure do these containers need to be? I mean, I can't imagine anyone, you know, going into a port and putting in a 40 foot container in their back pocket. [00:05:23][79.5]

Michael Stolarczyk: [00:05:24] Well, I mean, that's a that's a great, great question, Tom. And you hit the nail on the head and you really understand kind of what we what we bring to the market right now. So, you know, traditional containers, most of them, you know, 20, 40, 45, 50 3s, ocean-going containers or intermodal containers that go on trucks and trains. You know, they're they're your classic rectangle with a couple of doors at the back. You know, they have pretty substantial closing systems and handling systems to to lock in and seal the equipment. But there are depending on your payload, depending on what you're shipping, there are quite a few people that want to get to your your stocks. They want to get to what you're moving in in your supply chain. And there are I mean, you can go on the it just Google, you know, some of the interesting ways of the way thieves and folks can get into these containers, everything from using a wet towel to wrap around a seal and twist it off, which is not supposed to be able to happen. You know, you're only supposed to be able to break a seal with a big, huge set of bolt cutters. But they have a way, old fashioned way to take this seal off with a wet towel. [00:06:46][81.6]

Tom Raftery: [00:06:47] Yeah, with a wet path. [00:06:47][0.6]

Michael Stolarczyk: [00:06:48] Twist it off and open up the seal. Open up the container. You know, take some take some shoes, take some components, take some electrical goods and that close a container backup, reseal it. And nobody even knows if it's ever been tampered with in transit or you go back to the folks that will jump on a shunting train. You know, these double stack trains and single stack trains, you know, in Europe, in the Far East, in the United States, you know, with the acetylene torch in kind of whole while the trains being shunted or being humped kind of hold the container, pull out a bunch of of, you know, the cargo, drop it off while guys are running next to the to the to the train because it's only going, you know, a couple of clicks an hour and then they jump off the train and then they they stole it that way. So what we do specifically is go in and, you know, we actively listen, we learn about the supply chain, the challenges, the risk mitigation factors associated with particular payloads and then build bespoke equipment and. Exactly. We have a a deck which has a set of twist locks in the set and a set of lashings and D rings. So you have 360 degree access to loading that deck. And, you know, if we're if we're putting something in there like rolling stock, you could drive it right on. Not have to worry about trying to get through the doors. We're trying to push a skid through the container doors. You easily can move your product in there. If we're moving large equipment, sometimes radar arrays, sometimes there there are different, you know, components for compressors, different components for even solutions that work in the I.T. industry, where we'll we'll we'll have the generator that's associated with with backup or something like that. You can drop it right down onto the the lid of the equipment. I'm sorry. The deck of the equipment and then the lid comes down on top of that and sits on these Twist's locks, which you then secure into place. You can put locks on it. You can put seals on it. And a lot of our equipment doesn't have any doors in the back. So there's no way to get into the equipment until you take the top off. And most organisations that that handle containers have RTD cranes, Cal Mar's forklifts that can lift the whole deck and separate that the lid from the deck. So it's it's it's a much more secure platform. In fact, the Department of Homeland Security here in the United States qualified it as QATT, which is a Q8. So it's a qualified anti-terrorism anti theft equipment. And it's the only equipment out there, ISO, CSC certified equipment going over the ocean and over the road and the rail that that has that certification. And that's why organisations like like like Boeing, General Dynamics and Lockheed want to work with us because, you know, they face challenges with putting in some of the high value payloads and people getting in. Necessarily stealing the whole Pallo, but they'll go in and, you know, pull copper wires or, you know, programming OPL, CS or or other other components to this very expensive piece of equipment. And they want to get to the destination and you have all this maintenance and repair. So what we're trying to do is reduce risk. We're trying to increase. And by doing that, reducing that risk, we're increasing at a higher level of security, a higher level of sense of, you know, peace of mind when you're moving something from. If you're if you're you're building it in Europe and shipping it over here to the United States as a component and then getting it to its final destination. So we've been very busy. Even in these times of cold, you know, creating some solutions for a lot of organisations that are try to really take advantage of our equipment, take advantage of our secure platform and make sure that they're not losing money. [00:11:25][277.1]

Tom Raftery: [00:11:26] I can imagine, you know, how your solution would be useful to the likes of, as you said, Boeing or General Dynamics. But, you know, what about your average manufacturer whose manufacturing components for for cars or whatever it is you want to watch? I guess the question I'm trying to get to is, what's the price differential for them to having a normal 40 foot container versus having a cake box container? [00:11:57][30.3]

Michael Stolarczyk: [00:11:58] Yeah, another excellent question. So here's here's some some things. So let's let's take on an automotive manufacturer that is creating some Just-In-Time product flow to their production facility. If they're kidding or if they're doing some type of subassembly at, let's say, in Mexico to send to their transportation, to their manufacturing plant in the United States or over in Europe or even in China, if they're doing some kidding that this is not your nice tight little carton product that can be palletised in in in forklifted in and out of the container. There may be some size differential. There may be some unwieldiness of the IoT. [00:12:48][49.9]

Tom Raftery: [00:12:48] An example for you, Michael. It could be a for example, a battery car electric manufacturer who have a battery plant in Nevada and a manufacturing facility in kind of fornia. And they'd have to ship the batteries from the battery plant to the car plant. [00:13:03][15.0]

Michael Stolarczyk: [00:13:04] Yeah. So so what they've got is there's issues about there's issues about the efficiency of loading the equipment so that those batteries are are heavy. They're they're unwieldy in a lot of times. You have to. Block embrace them. Inside the container after they're loaded. So there's a lot of squeezing in. There's there's issues about safety for the people that are are working in the distribution centre or in the the outbound or inbound docks. So what you do, instead of pushing it and sliding it into the container, you're able to just place it on the deck in a very quick manner. We build in lashing ranks. We build in points in the container that that can help secure the cargo where you don't spend a lot of time on retrofitting, dunnage and hammering and wood and putting your guys, you know, in harm's way, try to news it, use a nail gun to secure the. These very, very heavy batteries inside a container. And so you're reducing costs as it relates to the loading and unloading of the container. You're reducing risk. You're not putting your your staff in harm's way. It's quicker to load. It's quicker to unload. And then you're not going to have shrinkage in. And I think that's a that's a big issue, too. So on down the line, you're going to be able to go to your underwriter and say, hey, you know, we haven't had a shipment stolen in the last 12 months because we've switched to this this equipment. And, you know, that's going to that's going to reduce your your fiscal responsibility to insurance and the like. If you have less accidents on the job, less lost days for some of your staff, you're obviously going to have a much more motivated and comfortable workforce knowing that they're not being put in harm's way. And it's amazing. We have some videos in and we talk about how, you know, to this day, guys are big and women are being forced to go in after these containers are loaded to try to, you know, put in these two by fours and these blocking, embracing solutions on the floor and their nails going their foot or they're getting caught in between. You know, these pieces of wood or their cargo shifts, you know, somebody take, you know, move the container before it's it's it's lashed properly. There's a lot of these issues that our equipment just simply takes away from. It doesn't even become a possibility because you don't have to you don't have to do it anymore. And that reduces costs and increases efficiency. [00:15:48][163.7]

Tom Raftery: [00:15:49] OK. But let's just say ballpark upfront. A 40 foot vs. cake box. What kind of price? Roughly price differential. Are you looking at? [00:16:00][10.4]

Michael Stolarczyk: [00:16:01] Well, I would I would say dependent if you're talking about just our our basic cake box, which is a deck and a lid. No. No doors and just are regular lashing. Our equipment's going to costs probably 20, 25 percent more for the just the container itself. But there there are you know, you're going to be able to make up that cost pretty quick when it comes to efficiency in use. And the good news is, is it's it's a regular container. So you can know you can use backhaul as you can put, you know, pallets or other equipment that that's that's used or dunnage that's used for the kids back into it. And it can be a two way container as well. So, yeah, there is definitely a there is definitely a cost difference and it is traditionally a piece of equipment that is going to be utilised by organisations that have higher, you know, higher level payloads at costs. I mean, somebody that's moving, you know, charcoal briquettes or or patio furniture or fans, you know, for the summer, they're not going to. They're not going to use our equipment because the the price points not there. They're not going to ever be able to find the economies of scale or or the savings with companies that are that are shipping, as you said, the example. Perfect example. These high value batteries are high value components or odd shaped things that that do take, you know, that are either shipped on a cradle or have to have a skid built specifically for each and every one of these pieces of equipment. You know, we have organisations that, you know, that that move generators or move aeroplane pieces that that are that are used in the manufacturing process. They have their special cradles or special fixtures in special sheds. They can do they can get away with all of that, do away with all of that and save costs as it relates to moving those components. [00:18:08][127.9]

Tom Raftery: [00:18:10] And you guys will do pretty much any size. It's not just standard 40 foot container. [00:18:14][4.1]

Michael Stolarczyk: [00:18:15] Yeah, we have actually created containers that. Ah, six. Sixteen. Fifteen, sixteen feet. Which is almost double wide. What a regular container is in 14, 17 feet high. You know, most containers are not higher than that. Nine feet, six inches. So, you know, and there's a and that's another aspect to your point as well, Tom. A lot of these larger pieces are either put on a flat rack and covered with a tarp and then put it into a RO-RO vessel or break bulk vessel, which is much more costly. And a lot more damage happens when you don't have the cargo. Protected by a hard shell. So we can switch it to containerised cargo. These things, all of our equipment has connexion points, you know, either for cranes or countermarch or forklifts where you can put it onto a container ship, which. Yes. It's going to take more than one slot, but it's much more economic on the transportation side. Did you know putting it on on a flatbed? Trying to to switch it over in the in the port and then pull it into Ro-Ro vessel or lash it hoisted up and put it into a big bay of of a break bulk ship, which is very costly as well. [00:19:40][84.4]

Tom Raftery: [00:19:41] And you said you got I got certification. I think you called it does not a. Sorry. Does does that mean going back to your earlier point, that the guys with the acetylene torches can't cut a hole in it? [00:19:52][11.2]

Michael Stolarczyk: [00:19:53] Now they can. They can. They can definitely cut. Cut a hole in there. There's no doubt about that. I mean, that they're steel containers that are traditionally made. You know, we do some aluminium containers and also some insulated containers as well. So, yeah, there's still that that ability to do that. But, you know, we reduce the we reduce the ability for other access into the container without doors and things like that. [00:20:21][28.0]

Tom Raftery: [00:20:22] OK we are coming up on the 20 minute mark. Michael, is there anything that I've not asked you that you think I should have? Is there any point we haven't gotten across that you think it's important for people to be aware of? [00:20:35][13.6]

Michael Stolarczyk: [00:20:37] Well, I think, you know, for me, it's it's the discussion about where that into and a lot of the discussions that you have, where is the supply chain going? And kind of what are the challenges that face us right now and what may face in the future? And I think what what we really seen is how. All the sophistication, all of the the, you know, work that we do to track and trace in in in the the digital awareness of, you know, where a product is in the supply chain is very important. But ultimately, it always goes down to the cost impact. You know it. And I've I've always talked about, you know, a supply chain from Pote Pop, from purchase order to point of purchase. And, you know, I think it's not exactly where your product is in the supply chain, but it's the impact that that that that location has on your your financial wherewithal of your of your business. And I think that we've seen, you know, some very, very strong companies being brought to their knees through through the current times with CoBots. And then also challenges with Mother Nature and the like. And so I think what we do it cakewalks is we go in and we really we kind of really look at how components are used in the manufacturing process, how we can help smooth out some of these uncertainties, mitigate this this risk, and make sure that we create, you know, in essence, I call it laminar logistics. And a lammert wave is something that's very consistent right there. It can be it can go up and down, you know, many, many times a second. But it's the it's the same beat. And I think that's what we want to create with companies like Boeing and Lockheed and Raytheon and Google, is that that we create a very consistent beat. So you're not having ups and downs in your supply chain. So if you've got a big piece of equipment waiting to be placed on, you know, a 787, you know, a dream, you know, Dreamliner, you you do not want it to sit on the key side waiting for a vessel because the brake bulk vessel that you decided to to book on ran into some problems because it couldn't unload in the previous port. And it's sitting out there waiting. You know, you want to move it towards a more consistent schedule with container container ships. And so we're creating that that ability to really create this not only bespoke type of physical platform for your cargo to to be placed in and transit in, but also helping you create a consistent supply chain so you can be more flexible and you can make sure that that you have a very smooth wave from that from the purchase order to the point of purchase when it's it's either integrated into your your final product or your customer takes takes control of it. [00:23:57][200.4]

Tom Raftery: [00:23:58] I guess a couple of questions I should have asked you quickly at the start are how long those kickbacks technology has been in business over eight years, you know, getting close to to 10 years. So still pretty much start up. [00:24:10][11.7]

Michael Stolarczyk: [00:24:11] Yeah. And, you know, we have a really we have a really strong group. You know, our HQ is in McLean, Virginia, right outside of DC. And then we have a real strong organisation over the U.K. as well. And we work internationally. So we have clients sprinkled all over, all over the world. And and we do a lot of you know, we do a lot of interesting pre work. And the investigation and evaluation is, you know, because it's not we're not just selling something off of off of the shelf. So we we do a lot of discussion around the depths of a product, the dimensions, the weight, the requirements, how how it is secured within the container, how it's handled. And yes, we do a lot of 3D modelling. We've got a great group of engineers. We have a huge partner in the sea. I see there the big container manufacturer out of out of China that builds a lot of our our equipment. And, you know, we spend the time to develop the relationship. So it's you know, we're not out there talking to a thousand customers. We we're not built that way. That's not what our products about. We try to develop and build relationships within organisations. And then, you know, most of them are multinationals. Most of them are multidivisional. So we may work with an organisation in aviation, you know, classic airframes that then may move us over it to, you know, satellite communication or we're working in the wind power industry. Where we started out, you know, moving some generators and now we're we're removing blades and other components to to win power. So, you know, you've got a you know, you've got to deliver the details. The technical solution has to be met with a lot of confidence and not only confidence in the process of creating it, but then once it's deployed in years. And I think that's the biggest issue is we we take our time to create a solution. And what's most important is that solution is then very successful in the real world. It's not just a lab based solution. It's been working in practise and consistently in practise. And I think that's why we developed some relationships. You know, when your short list includes the clients that that we have. You know, it kind of tells you and it speaks to the type of product that we're actually deploying and using on behalf of our clients. [00:27:01][170.0]

Tom Raftery: [00:27:03] Super. Super. Michael, if anyone wants to know more about cake box or about yourself or anything you guys do. Where would you have me direct them? [00:27:13][10.6]

Michael Stolarczyk: [00:27:14] Well, they can. They can go to kick box dash technologies, dot com on the web. They can reach out to me directly at Mike Michael at Kick Box Dash Technologies dot com in an email. There's some great videos out there. We have a lot of collateral on our on our Web site as well. And we're very, very open to creating a dialogue on an idea. You know, again, it's not, you know, pick up the phone or we want 50 of these containers. It's pick up the phone and we have a specific need to move a particular component. And we need, you know, 10 of these containers. Now, do we have clients that have purchased, you know, hundreds of units? Yes. But most the time we're working on very, you know, specify challenges and, you know, either myself or Ordain or a couple of our other folks in the organisation can start that dialogue and then get our engineers involved in getting it, getting a workgroup started. So, yeah, kickbacks, technologies that I think many of us. [00:28:24][70.2]

Tom Raftery: [00:28:25] That's been really interesting. Thanks so much for coming on the show. [00:28:27][2.1]

Michael Stolarczyk: [00:28:29] I appreciate it. Tom, you know, I've been following you, and it's it's an honour to be able to spend a little bit of time with you and also being able to get on radar. And have you see the value of this discussion, even though it's a little bit out outside of your purview and what you traditionally discuss in? You know, it makes me very happy and very proud that you would take a little bit of time with me to talk about kickbacks, to talk about some of the challenges that, you know, that the people that we work with every day face with their supply chain and really trying to help them reduce risk to increase efficiency. [00:29:06][37.5]

Tom Raftery: [00:29:07] Super. Thanks again,. [00:29:08][0.9]

Michael Stolarczyk: [00:29:09] Michael. Thank you, Tom. [00:29:10][1.1]

Tom Raftery: [00:29:12] OK. We've come to the end of the show. Thanks, everyone, for listening. If you'd like to know more about digital supply chains. Head on over to SJP dot com, slash digital supply chain or simply drop me an email to Tom Dot Raftery at SAP dot com if you'd like to show. Please don't forget to subscribe to it. And your podcast application of choice to get new episodes as soon as they're published. Also, please don't forget to rate and review the podcast. It really does help new people to find a show. Thanks. Catch you all next time. [00:29:12][0.0]

[1713.5]