We put so much data and information in front of our vendors. Opening their eyes and partnering with them at every level has been one of the most fun things to do because it makes everybody better. When you get together and share data and talk about trends, that's where true partnership lies and, that's super rewarding for me.
-Phil Rich, SVP & CSCO at Sweetwater
Episode Summary
Sweetwater sells musical instruments, live sound equipment, and recording equipment for every lever of user – people building multimillion dollar studios, clubs and churches that needs audio, etc. Because e-commerce is their primary sales channel, they have also built up an exceptional team of sales engineers that are trained to do everything from advise customers about their purchases to building relationships that will hopefully last a lifetime.
Phil Rich is a Senior Vice President and the Chief Supply Chain Officer at Sweetwater. He is well aware of the importance of the company’s relationships with customers, but he doesn’t let it end there. He is also building value-oriented relationships with the company’s 700 suppliers.
In this Supply Chain Now classic episode, Phil returns to Supply Chain Now to get caught up Greg White and Scott Luton:
• How Sweetwater’s company culture drives every customer interaction, with the goal being to win a customer for life
• The time and effort the company is investing to ensure that their packaging and shipping materials are as cost effective and environmentally responsible as possible
• Why they selected Glendale, AZ for their new fulfillment center, and how it will reduce delivery times and costs for customers on the west coast
Episode Transcript
Intro/Outro (00:03):
Welcome to supply chain. Now the voice of global supply chain supply chain now focuses on the best in the business for our worldwide audience, the people, the technologies, the best practices, and today’s critical issues. The challenges and opportunities stay tuned to hear from those making global business happen right here on supply chain now.
Scott Luton (00:32):
Hey, good morning, everybody. Scott Luton and Greg White with you here on supply chain. Now, welcome to today’s show Greg, how you doing?
Greg White (00:39):
I’m doing great. I’m especially great. Now my two favorite things, great customer service and music. So
Scott Luton (00:45):
<laugh>, that’s a long list though. That’s there’s lots of,
Greg White (00:49):
I have a lot favorite things. I just can’t decide.
Scott Luton (00:51):
<laugh> all right. Well, along those lines, as Greg’s alluding to, we’ve got a special repeat guest here with us today. Uh, a special supply chain leader from one of Greg’s favorite brands. Is that right? Greg
Greg White (01:04):
Unquestionably? Yeah, I was introduced to, to, uh, Sweetwater, sorry. I gave it up on you, Scott, um, by my, uh, product VP at my last company who is a session guitar and keyboard player, pretty decent singer and, and an absolute stickler for outstanding customer service and Sweetwater is who he held up as the, the
Scott Luton (01:30):
Top gold standard of
Greg White (01:31):
The list. Yeah. So wonderful. Yeah. And you know, of course we have occasion to buy some audio and video equipment occasionally here, maybe the odd guitar. So yeah, I’ve had my own experiences with them.
Scott Luton (01:44):
Well, you know what, with all of that said that glowing, glowing endorsement, but heartfelt and genuine, no further do wanna welcome in feel rich chief supply chain officer with Sweetwater, Phil, how you doing great, Scott, Greg, glad to be back with you guys. Good to
Greg White (01:58):
See you. Yeah. Good to have you
Scott Luton (02:00):
Back. It is so nice to have you back. I tell you, it feels like it feel like it was just a few weeks ago, but man, it has been, it’s been a fast, I’ll call it 18 months or so. Uh, so great, great di meet you. And we gotta give a quick shout out, uh, by the way, Phil, uh, as we’re coming on, pre-show Justin, uh, our production engineer has been, I think, a Sweetwater customer since 1996 as Justin put it. So, um, I’m sure he is. He is edge of his chair waiting to see, uh, from a supply chain standpoint, how y’all do what you do. Mm-hmm <affirmative> um, so Phil let’s do this before we get into to more of the Sweetwater story. Let’s kind of refresh our understanding of who you are feel rich. So tell us first off, where did you grow up?
Scott Luton (02:41):
And then I’ve got a quick follow up question for you. Okay. Grew up split between east Tennessee, uh, to the C uh, until about the age of eight or nine, and then Phoenix, Arizona would be up through high school. Okay. And, and, um, let’s tell, we’re gonna have to, we’re gonna have this follow up question is gonna have to hit both of those locales. So, uh, give me one of your favorite food dishes, both in Tennessee and that earlier stage of your life. And then in Phoenix, where Greg’s got some par, some common experiences with you.
Phil Rich (03:13):
Well, Tennessee, uh, I’d say strawberry rhubarb pie, man. <laugh> I mean, the rhubarb grows pretty darn, uh, tasty out there.
Scott Luton (03:22):
He’s
Phil Rich (03:22):
Really so do strawberries. Uh, so yeah, love that. And, uh, out in Phoenix, I mean, you just can’t go wrong with good old fashioned street tacos. I mean, one of my favorites.
Scott Luton (03:34):
All right. So Greg, uh, ask and, and he shall deliver, uh, you, you spent some time in Phoenix, those street tacos were they as addictive as, uh, Phil was pointing out,
Greg White (03:45):
I’m more of a burrito guy, myself. I love tacos, but, um, we actually had an adaptation when I was out there of something of this group of restaurants in San Diego, they call the BETOS and they make these giant burritos. They make tacos also. I bet I have a feeling. You probably got some from there.
Scott Luton (04:03):
<laugh>
Greg White (04:04):
Um, but what I loved about Phoenix and I don’t know, Phil, if you ever experienced this was you could go to two Mexican restaurants, literally one next door to the other or to the exact same dish. And it would be made totally differently because they’re from different parts of Mexico or different family recipes or whatever it, it is so far in my experience, impossible to bleed to beat the Mexican food in Phoenix, anywhere in the states.
Phil Rich (04:28):
Yep.
Scott Luton (04:29):
Same Phil. Um, alright, one last food question. You know, we love talking about food around here. When, when you first said Tennessee, I thought for sure, especially how you paused. I thought you were gonna say, Scott, you have moron. Of course, barbecue. Um, so I, you took me for, I’ve never had strawberry rhubarb pie, so I’m have to get with a man on that. What, but I’ve never had it, uh, I don’t know, maybe, maybe I’m you
Greg White (04:50):
Really a southerner.
Scott Luton (04:51):
I mean, must,
Greg White (04:53):
Um, the Midwest and I’ve had it,
Scott Luton (04:55):
Uh, well, Phil was, so was barbecue part of that early stage of your, your upbringing?
Phil Rich (05:02):
Uh, it was out, you know, I spent a lot of time out on a lake called Watauga lake in east Tennessee. And just the fact that we kind of lived out there most of the time, barbecue was just part of daily life. So I didn’t think of it as being all that special at the time, but it really was looking back on it, just
Greg White (05:18):
A staple
Phil Rich (05:19):
<laugh> yeah, it was what it was,
Scott Luton (05:21):
You know, it is so funny, uh, Greg, to your point, exactly. It’s just a staple. We, we take for granted these things that we have access to every day and those are for, for many others, that’s part of their food vacations, you know, take yeah, good point. People are paying the wine, that wine their way through different states for barbecue and, and other things. Um, okay. Uh, nothing. Well, not too many things pair as well with food as music and Phil, as you’ve got sitting there in your lap, some, some of our, uh, listeners from your last appearance with us will recall that you’re one heck of a guitarist, so, oh, nice. When did you, uh, when did you first start playing? Who got you involved,
Phil Rich (06:02):
Picked up the guitar around age 11? Uh, my mother was actually, she played, you know, just, just drummed on an acoustic guitar. She wrote songs. Um, she actually recorded her record when I was a teenager. Wow. And, uh, and my dad was a, like a church music director and he played trumpet. So there was a decent amount of music going on in the family. And of course, every kid who has an older brother kind of wants to be their older brother a little bit. And he started, you know, playing rock guitar, he got a strata caster and a PV amp. And so I just wanted to rock out. So start at 11, uh, joined the Navy at 17, ended up in the Navy band at 19 and, and did that for six years. So I, you know, kind of played every day for six years straight, uh, gigs, all kinds of gigs. So yeah. Wow. FARs been an important part of my life for a long time.
Greg White (06:51):
Who’s better. You were your brother.
Phil Rich (06:53):
Oh, I’m so much better than Navy. Yes. Not even close, man.
Greg White (06:57):
Hey, you know, well, every day for six years I would, I would figure, but yeah. Yeah. And I’m sure you don’t hold that over him at all. Ever.
Scott Luton (07:04):
<laugh>
Phil Rich (07:04):
I, I only bring it up five, six times a year. Maybe,
Scott Luton (07:08):
You know, I had forgotten that part, that you served the Navy and you’re part of the us Navy band. Um, I’m sure that you, you could write a book on those experiences for six years. Um, and, and you’re gonna play us out at the end, but really quick. You, you were a moment ago, you were playing an iconic tune that Greg said he can name in one note.
Phil Rich (07:26):
Oh, Greg knows the tune, right?
Scott Luton (07:39):
Yeah. Yeah. Well,
Greg White (07:40):
Here’s gonna, you, you want me to name it? I’m sorry. Yeah,
Phil Rich (07:42):
Go for it.
Greg White (07:42):
Wish you were here. I’m sorry. I, I didn’t realize you.
Phil Rich (07:45):
Yeah.
Scott Luton (07:46):
So Greg, you did not win the,
Greg White (07:49):
Uh, I
Scott Luton (07:49):
Wanted grand prize today.
Greg White (07:51):
I thought I thought we were gonna let him play it through, so,
Phil Rich (07:54):
Oh,
Greg White (07:54):
Okay. Just listening
Scott Luton (07:56):
In all
Greg White (07:57):
Honesty, you had me, Phil, you had me
Scott Luton (07:58):
In all honesty. I was hoping Greg was gonna start singing to the, your tune, uh, field. We’ll see if we, we,
Greg White (08:03):
Well, there’s a long guitar lead into that. Oh, that’s true. You’re a long way from vocals.
Scott Luton (08:08):
That’s true. All right.
Greg White (08:09):
Maybe on the way out Scott
Scott Luton (08:11):
<laugh>, I’m not a pink Floyd pro as I am, as I’m giving myself up here. Um, alright. So finally, speaking of bands and musicians, and clearly, gosh, uh, for heard you correctly, your mom actually, uh, recorded, um, and dropped an album and your dad played in the church, uh, great role models there, but, uh, whether it’s them or whether it’s others that we, we may be more familiar with as, as, um, music enthusiasts. Who, what, what, one of your favorite bands or musicians of all time Phil?
Phil Rich (08:43):
Well, probably the band I listened to the most over such a long span of time is rush. I’m a big joy rush, a lot. I’ve had the pleasure of, uh, meeting Alex. Lison having dinner with him. Wow. Just cause of being in the business. And he’s, he’s a wonderful guy and yeah, that’s, I’d have to say that band sits at the top and there’s plenty more on the list, but there’s one, I was this close to grabbing my rush t-shirt instead of my mentality t-shirt
Scott Luton (09:11):
Uh, ever, ever met Mr. Roberto there, Phil,
Phil Rich (09:13):
Mr. Robo. Yes. Mr.
Scott Luton (09:15):
Robo was, that’s not, is that rush? No. Or
Phil Rich (09:18):
Is that sticks? That sticks.
Scott Luton (09:19):
I always get them confused. My bad, my bad. All right. Um, <laugh> so I tell,
Phil Rich (09:27):
I said he’s out it.
Scott Luton (09:31):
So with all of that said, and I appreciate your, uh, your, uh, sense humor here. Um, let’s switch gears and let’s talk about Sweetwater. So as Greg and, and Justin, we were talking on the front end, of course, we use a lot of your equipment and really have come to appreciate, um, how your company does business, but for the handful of folks out there that may, may not, you know, use AV equipment and, and music and musical equipment, what does Sweetwater do?
Phil Rich (09:56):
Uh, Sweetwater sells musical instruments, uh, and, uh, live sound equipment, recording equipment, all kinds of stuff. And, uh, since I talked to you guys last, uh, we started selling band and orchestra equipment. So we sell TRS and trombones and, uh, saxophones and flutes and clarinets and all kind of stuff like that. But whether you wanna do something like this, if you want to, uh, record audio at home, or you want build a multimillion dollar studio, or you got a club or a church that needs audio, whether it’s, uh, speakers in the ceiling, just cranking out music and announcements or a big PA system microphones, you know, the stuff you guys are talking through and listening through right now, you know, that’s, that’s kind of stuff that we sell and, uh, we’ve just grown tremendously. And, and, uh, e-comm is our, is our primary, uh, channel for that. We do have a beautiful award-winning retail store here, but we’re primarily, uh, e-com in the United States.
Scott Luton (10:53):
Mm-hmm <affirmative> and, and the company’s headquartered where again,
Phil Rich (10:57):
In Northeast Indiana in Fort Wayne.
Scott Luton (10:59):
Okay. Fort Wayne, you know, Fort Wayne, we talkings last time you were with us Fort Wayne has really, uh, played a major role in innovation, uh, uh, over, over the decades. I, I wanna say that Fort Wayne and check me if I’m, um, if I’m off the mark here, Greg or Phil, um, I believe the first ever home video console was developed in Fort Wayne, Indiana. If I’m not mistaken, we’ll double check that. Add, add a link, Greg,
Phil Rich (11:27):
That’s a trivia question. I don’t know. I’m, there’s a long history with, uh, could be that, that the long history with Magnox Wayne. Yes. Yes. And Magnox is really no longer a presence here, but so many people that live here that are generally older, uh, worked at, at Magnox when it was in its heyday.
Scott Luton (11:47):
Well, um, that that’s exactly it. Cause Magnox, uh, developed, came in, in the name of the game system. They developed the first, uh, home con home video game console in the states, uh, right there, uh, in Fort Wayne. So, um, it’s a shame they’re not around. I did not know that as much anymore. Yeah. Okay. So Greg, uh, with Mr. Phil rich, where are we going next?
Greg White (12:07):
Well, I, I’m a huge fan of your customer service, so we have to talk about it. I mean, it’s legendary top notch, right? Of course, the gold standard, as Scott said, I’m curious how that became such a big part of your culture. And I’m also curious, do other companies come to you to learn from you?
Phil Rich (12:29):
Well, it’s a big part of our culture because it’s been a big part of our culture since day one, since, since Chuck was a one man operation all the way to today, you know, he always wanted to, uh, deliver the product on time in, uh, in great in perfect condition and exceed expectations. And that’s why, you know, originally when he had his recording studio, you know, he would leave the tapes out in his mailbox and he’d add a little bag of candy, you know, just to say, thank you. And we still do that today. We, we put candy in every order, but it it’s, it exists because we about it every day, Greg, we talk about it in our executive meetings. We talk about it in our, in our, uh, team meetings. We read customer letters and all the way from the top of the company to the bottom, uh, we’re solving customer issues every day. We don’t put them off and say, oh, that’s not important to me, somebody else’s problem. I that’s everybody’s problem. Uh, and everybody’s challenge. And, and, and we love doing it because, you know, what’s better than making customers happy and winning them over for life. You know, we, we do talk about, we, nobody wants to make mistakes. Nobody wants to have customer issues, but when you do, it’s an opportunity to make a customer for life. And, and that’s how we approach it, coach it.
Greg White (13:46):
And it is, I mean, I can vouch for it. I’ve gotten some of those bags of candy. <laugh> the occasional microphone or cable, or maybe a guitar or something. <laugh> so, and I really appreciate ’em, I’m always, uh, by the way, I’m always, um, asking for extra Smarties whenever you can, whenever you can get ’em just
Phil Rich (14:07):
<laugh> man, let us not talk about supply chain and candy. Oh boy. Not believe the shortage of candy right now.
Greg White (14:14):
I bet. You know, we have talked about that actually on the show and among ourselves lately, because some of the products that go into candy are they’re in very short supply. And I imagine similarly, you’ve had, you’ve had challenges like that in your industries. So I’m curious, uh, because supply chain is such a huge contributor to your ability to convert on the customer, promise to deliver on time in, you know, in full and, and, you know, an impeccable quality. What, what is maybe your favorite aspect of getting to be chief supply chain officer at Sweetwater?
Phil Rich (14:54):
Well, certainly being on the front lines of, of solving those issues is super, uh, rewarding. Um, I think one of the best parts for me is bringing our vendors into that sort of what I’ll call that huddle, you know, really with our top 25 and beyond cuz we’ve got, you know, about 700 vendors mm-hmm <affirmative> so, uh, bringing them into there. We, since the last time we spoke, uh, we rolled out a tremendous new B2B site with all kinds of, uh, forecasting and inventory health reporting. And we really put so much more data and information in front of our vendors and just to open their eyes and partner with them at every level has, has been one of the most fun things to do, uh, cuz it makes everybody better. You know, when you get together and you share data and you talk about trends and what’s going on and it’s kind of sounds like old hat, but when you accomplish that at every level of the company, um, you know, that’s where a true partnership lies and, and that’s super rewarding for me.
Greg White (15:57):
Yeah. That’s fantastic. Well, I mean, in, you know, we talk all the time about the fact that you, you can make promises anywhere. You want your website, your marketing materials, your, your sales pitches, whatever, but they have to be delivered through the supply chain. That’s you’re the last people to touch it before it goes into the customer’s hands. So yeah, it’s a critical, critical part of it. And I think until recently until recent events, Phil, I don’t think people recognize that as a supply chain function, you know, the delivery of customer experience as, as part of the supply chain function. But it really, really is. And, and um, I, I think it’s just, it, it shows that, that your, you guys commitment is completely circular. In fact, it reminds me that I owe my, um, my sales rep an email back he’s probably, <laugh> probably concerned about me. Well,
Scott Luton (16:52):
So on that note, Greg, I’m glad you, you touched that on that cause, uh, that’s one of my favorite parts as well. Uh, and, and every, you don’t find that in, in, in so many companies. So Phil speak to that if you would, for a second, because you do assign the person you buy from, uh, at Sweetwater, they, they stay with you, uh, and, and they can, you know, they get to know your business, they get to know your needs, your preferences and whatnot, right?
Phil Rich (17:14):
Absolutely. Yeah. We, we call those, uh, folks sales engineers. Uh, we have, um, just about 600 of those people today. And gosh, they’re developing those relationships with customers, you know, and you know, I was just out at the NA show that happens every year and you guys may be familiar with it. That’s the, our industry trade show. And I’m talking to, uh, a guy I haven’t seen for seven or eight years. And uh, he says, man, you guys make it so easy. I just, I can just text my sales engineer and say, Hey, I need this. Uh, can you ship it to me? And he gets a text message back. Sure. What credit card do you want it on? Here you go. And he goes, ah, do it on this one. And then it ships mm-hmm <affirmative>. And, and, you know, he is talking about what a unique experience that is versus trying to call up a music store and talk to somebody and get him to really care about you.
Phil Rich (18:08):
And so I, you know, it brings a level of concierge service. You know, we, we take folks, generally they have some sort of a recording or audio degree. We bring ’em into Sweetwater. We take ’em through what we call Sweetwater university for 13 weeks. It’s not just training on the fundamentals of product, but we take ’em through things like the seven habits. Uh, we take ’em through, um, other important lessons. Like don’t just do what I tell you to do, uh, to think for themselves, we teach ’em how to have what we call a perfect conversation with a customer. We just do so much, uh, to prepare them, to talk to customers, cuz we, we really feel that that interaction is the most important thing that we do. And, and, and they do a fantastic job and uh, you know, that’s what creates customers for life. And that’s why Justin, thank you. Justin has been a customer, uh, for so long.
Greg White (19:02):
Yeah. That’s unbelievable a customer for that amount of time.
Scott Luton (19:06):
Agreed and really quick for our listeners. Of course, Phil is referring to Justin, uh, our production engineer here today. Uh who’s off screen and, and doing his good work. So Justin appreciate what you do and appreciate you sharing your part of the, uh, Sweetwater story. All right. So Greg, um, where are we going next with Phil rich? Who’s dying. I think, I think we’re, we might get a whole set.
Greg White (19:28):
Go ahead and play. You can play while we’re asking if you want. I, I know you’re dying to, to rip a few notes on that thing. So go for it.
Phil Rich (19:37):
If I could play
Scott Luton (19:37):
Like Phil, I’d be dying for sure. To play
Greg White (19:41):
Chuck Sue rock, who’s your, your founder and CEO. I is, um, you know, kind of the center like any good leader is of, of all the culture in your organization. And, and even with everything that’s been going on over the last couple of years, sustainability has become a huge issue for supply chains. And I think much like you all have engaged your, your, uh, suppliers to recognize, uh, other a, you know, how collaboration can, can improve performance. Um, I think a lot of companies and obviously you all have rerecognized that sustainability is a critical part of, of what you guys do. So I’m curious, um, tell us about some of the things that, that you’re doing to convert on that, on that promise.
Phil Rich (20:28):
Yeah. Well, since the last time we spoke, uh, we did a very, uh, intensive review and on RFQ for all of our packing materials, all of our corrugate, our tape, um, you know, what was the environmental impact of those? How could, how could we use the least amount? Um, uh, we, uh, we now scan every single product that comes in. We know exactly what the dimensions are and we recommend the smallest packaging, uh, possible for any of those boxes. And we’ve really, um, you know, we’ve partnered up with our carriers to do, uh, some special things to, uh, to lower the carbon footprint. One of those things, um, that we’ve done is zone skipping. So instead of, you know, just sending trucks to the local sort center and then multiple trucks go out multiple directions, you know, we’re really dropping full trucks and moving them across the country and, and dropping them into sort centers. And just things like that, all those little things do add up to, uh, to an impact that, uh, that we believe is important.
Greg White (21:36):
I, I think that, you know, it’s, it is important because you, everybody has a page on their website nowadays, right? Not everybody to quote the great Kelly Barner, not everybody is converting that into action, um, in, you know, in their operations. And it’s not an easy thing to do because there are a ton of trade offs, right? I think we have to acknowledge that to the, to our, our community here, but, um, there are a ton of trade offs, but when you start to make that one of the key priorities of your supply chain, just like optimizing cost and demand, fulfillment, and, and, you know, and speed and reliability and all those things, then it goes into that mix and really can, can create other efficiencies throughout the supply chain. So, uh, it’s I mean like, like you guys, like, I’m not a big enough fan of you guys already. I think that’s really cool that you guys are working that stuff into it and doing so thoughtfully and including your trading partners. Right. I think that’s critical. It’s not your supply chain. It’s all y’all’s supply chain. <laugh>
Scott Luton (22:37):
Well, you know,
Greg White (22:37):
Tennessee.
Phil Rich (22:39):
Yeah.
Scott Luton (22:39):
I’m glad you mentioned that. Cause it does seem to be part of, you know, what I’ve heard thus far. And it reminded me of our first interview, you know, uh, just how intentional you and the Sweetwater team, the culture is about investing in relationships, right. Uh, you were talking a minute ago, but, you know, bring in, uh, 700 vendors or suppliers that you have bringing ’em in and, and, um, really, uh, uh, immersing, um, or really investing and deepening those relationships. Right. Uh, you mentioned the data side of it earlier, but it sounds like also you’re exchanging ideas related to sustainability, so that you’re really, you know, rising tide lifts all ships there as well. Is that right? Phil
Phil Rich (23:20):
We’re we’re sharing that. Um, absolutely. And
Phil Rich (23:24):
Just in the last few months, uh, we conducted a survey with our entire vendor, uh, community about employee wellbeing practices, and we just completed that. Uh, we felt really, really great about what we heard, uh, on that survey and just this last week, uh, we communicated back out to the whole vendor community and gave them some, uh, things to think about and some resources that, that they can use. You know, we have a lot of small vendors, right? We have a lot of guys making pedals in their garage or maybe a 25 employee company all the way up to billion dollar, uh, partners. And we do just, we do wanna make sure that they’re thinking about the right things as far as, uh, making sure that the factories that they source and that the labor that they use are, are all in really good standing and people are treated fairly around the world.
Scott Luton (24:13):
Love that, Greg.
Greg White (24:14):
Yeah, that’s critical. That’s absolutely critical. So, you know, obviously customer success, customer support, customer experience, sustainability, and, and, and the reliability of your supply chain, huge priorities for you, but maybe in the last 18 months or so, since we last talked, you may have had some other things come up, you know, maybe a global pandemic here and there, or other supply chain challenges that have hit you. So I’m curious, where are your priorities and where do you see your challenges today?
Phil Rich (24:50):
Well, uh, one of the top priorities right now is, is a new fulfillment center that we’re, uh, just about to open out in Glendale, Arizona. We’re really excited about it. Um, you know, the primary purpose of that fulfillment center is to reach the, the 25 to 30% of our customer base that lives out west. And, and right now the transit times, aren’t ideal for those customers. You know, uh, Amazon prime is a lot more attractive <laugh> yeah. Than, than, yeah. Then, then what our carriers can currently offer. That’s that’s affordable. So, uh, we’re gonna get really close to those customers. And, and I think that we’re gonna see a, a little bit of an increase in business for that, but there’s also the, the environmental impact of that with, uh, a lot less, uh, distance to cover with trucks. And we’re real excited. It not only does it help us cover the west coast, but it really gives us the whole country in about three days, uh, or less everywhere. And so again, we’re super, super excited about that one. Yeah,
Greg White (25:49):
That’s really good. And, and it doesn’t hurt that it’s near Phoenix, so you can get street tacos whenever
Scott Luton (25:55):
Visit <laugh>
Phil Rich (25:56):
Right. Strips will be made
Scott Luton (25:59):
<laugh>
Greg White (26:00):
Tacos will be consumed.
Phil Rich (26:01):
Tacos will be consumed
Scott Luton (26:03):
<laugh>. Um,
Greg White (26:04):
Uh, I’m sure that was purely coincidence. I mean, really a lot of math and science for in case people don’t know, go into where to put a facility like that. Right. So
Scott Luton (26:15):
You beat me to it, you beat me to it, Greg, that site selection and, and, and you may not can reveal a lot there, uh, Phil, but is there anything you can speak to there of why Glendale and, and, and some of what y’all’s process looked like?
Phil Rich (26:30):
Yeah, sure. The pro I mean, the process was, um, probably what you’d expect, uh, extensive network studies on, uh, time and transit and capacities and sort centers, and, you know, the ability to move, to move boxes around. We really looked at the labor market in depth and in a, in a lot of cities out west and, and, uh, you know, the one interesting thing about Phoenix is it’s really moved up to be the fifth largest Metro in the country. And there’s a lot of labor there right now, the city’s growing, uh, the city’s investing. Uh, so it’s a real exciting place to be. And, you know, you can probably imagine who some of the other competitive cities are, but then there’s the availability of just buildings in general. And so any one of those, uh, any one of those three can be, you know, can be a heartbreaker when it comes to, to pick a location, but Phoenix really checked all the boxes. And, uh, you know, we were able quickly able to, to lease a building out there. And, um, man, if you’ve driven up and down, you know, the Southwest side Goodyear or up to 3 0 3 in Phoenix lately, I don’t know of anywhere in the country that more fulfillment and distribution centers are being built. It is very true. Absolutely incredible,
Scott Luton (27:48):
Outstanding, exciting expansion ahead. Uh, this is really cool. And sounds like you’ll have to be building a bigger Sweetwater university as you onboard a lot of, uh, new family members, right?
Phil Rich (28:01):
Yeah. You know, growth, it’s fun. It’s challenging. Uh, and yeah, we just have to keep continuing to grow the organization, but we wanna stay like a small company. We wanna continue to feel and be agile, like a small company. And, and we will, we’ll continue to do that.
Scott Luton (28:18):
Love that, uh, the values driven organization, uh, great to sit back down far.
Phil Rich (28:23):
So good, Phil.
Scott Luton (28:24):
Yes, that’s right. You want
Phil Rich (28:25):
A customer’s opinion? <laugh>
Scott Luton (28:29):
So, um, as we come around the corner coming down the home stretch of our time here with Phil rich, uh, from Sweetwater, um, yeah, a lot as, as Greg mentioned, uh, goodness gracious. Uh, it has been a, um, uh, a challenging, uh, in new ways, old ways you name it over the last couple years, what’s been one Eureka moment. That’s really stuck with you maybe since, uh, your last time with us.
Phil Rich (28:56):
Well, I think that normal was closer to where we were last time we talked, even though it was a more abnormal, but things have changed quite a bit more since, um, I think a lot of these Eureka moments that maybe we could talk about, I wanna talk about, I think what the most simplest one is, and that is when we started connecting everybody at every level to our vendors, the conversations that they were having, uh, became so impactful so quickly. And I think in the old environment, you might have one person that owns a relationship or maybe two people that own a relationship, but now supply chain heads need to be talking to supply chain, heads, and forecasting. People have got to be talking to forecasting logistics. People need to share information. And I think that the Eureka moment is just share as much information as you possibly can make all those connections, have multiple people up and down your organization talking to your vendors.
Phil Rich (29:53):
And don’t try to coddle those hold. ’em close to the chest and keep information because conversations are the fastest form of communication that we have. And so we need to be having conversations regularly with our key vendors and partners out there. And that’s, that’s how we’re gonna keep a lot of that agility I was talking about earlier is gotta have those conversations, emails not fast enough. It just isn’t that things are moving too quickly. You’ve gotta get on the phone and be talking to those folks regularly. And that that’s been a big Eureka moment for the whole team here. Uh, and it’s, it’s fostered communication. Like I have never seen it before. It’s, it’s really been amazing.
Scott Luton (30:32):
I love it real is real. It’s one things I’m picking up on and an email isn’t good enough. Uh, and you know, it sounds like one of the breakthroughs, uh, your team has had is, is while some of those things will get the job done, they don’t deepen the relationship enough, uh, to do big things like you’re doing now open up, uh, basically expand the, the company even greater than what, what you already have been growing by opening up new facility there in Glendale, moving the mountains for sure. But Greg, what’d you hear there
Greg White (31:01):
Pace, right. I heard that the pace is so much faster and the expectations for performance are so much higher and not that there ever was in your organization, Phil, but you know, I’ve said this many, many times, there’s nowhere to hide. I mean, in, in supply chain, we’ve always wanted a seat at the table, right. And yet I think we have kind of relished the ability to hide in the background when, when anything goes wrong and now there is nowhere to hide. So, uh, you know, the, um, that awareness that you’ve expressed is, is common. It’s not as common to continue to support it instead of hope for things to go back to normal. But, um, yeah, it, I, I think that pace is probably the number one thing.
Scott Luton (31:49):
Jeanie’s never going back in that bottle. Darn Skipp
Scott Luton (31:52):
<laugh> so, all right. So Phil, um, really appreciate as busy as you are and the team is, I appreciate you sharing spend some time with us here today and, and sharing again, um, the latest and greatest of what’s going on at, uh, Sweetwater, uh, that clearly so many folks hold in high esteem, you know, um, they call that the Amazon effect been around for, for years and years, but I think Greg, we should be talking about the Sweetwater effect, right. Since we’re talking about yeah. Benchmarking and that gold standard. Uh, so I’m really excited to see, we’ll have to reconnect maybe later this year. When’s that? Um, have you already broken ground on that new facility, Phil?
Phil Rich (32:30):
Yeah, we’re doing the tenant improvements right now. Uh, we’re gonna be shipping our first orders outta there in October.
Scott Luton (32:36):
Wow. Okay. Well, let’s reconnect end end of this year. And, and, uh, well everybody on the west coast that’s right. Ordering let’s do it time for Christmas. That’s right. We’ll do it in person and grab some tacos, uh, and maybe get a quick tour of the new, uh, facility, but a lot of good stuff with Phil rich and a Sweetwater team. How can folks connect with you and Sweetwater Phil? They can email me@phil_richsweetwater.com. Be glad to talk to you. It is just that easy. Outstanding. Um, okay. So Greg, I think Phil get new emails. Scott, remember gang email is not sufficient, but that’s all, that’s what you start with. That’s what we’ll start with. Uh, and of course, sweetwater.com uh, check ’em out. Yeah. Get your orders in. As Greg said, uh, all you on the west coast, you may be listening. You’ll have new options soon. All right. So Greg, I think Phil is gonna play us out. Is that right? Yeah. Heck yeah. It’s right. Let’s see if you can name this tune. Oh, oh, sweet home, Alabama. There we go. Yes. <laugh> yep. There you go,
Scott Luton (33:45):
Man. We’re gonna have to, uh, connect with Phil and give him a, um, a speaker to plug into, grab some adult beverages and some tacos and invite a couple hundred of our favorite friends. That will be a great opening party for your, for your, uh, I bet you guys have great opening, all kinds of parties. I’ll bring you some strawberry rhubarb pies. <laugh> okay. Fair enough. Fair enough, Phil. Wait, big. Thanks. Uh, to Phil rich and his Sweetwater team as busy as they are. Uh it’s you know, Greg, it’s always one of my favorite parts of what we do now that we’re, uh, I don’t know, 920 episodes deep. I think with the main channel, I love sitting down and having genuine conversations with companies that really we’ve admired for quite some time and, and kind of learning about them from that operational, that supply chain side.
Scott Luton (34:32):
Uh, and if all of ’em were in as nice as Phil rich, man, we, we should do a couple of these a day. Right. Well, if all of ’em could play instruments, we’d have a hell of a band wouldn’t we <laugh>. Okay. Well, Hey, uh, big thanks again to Phil rich and Sweetwater. Be sure to connect with him and, and, uh, get those orders in big, thanks to Greg white. Uh, love having these conversations with you. Another quick, shout out to Justin, appreciate what you do, Justin. And I appreciate you timing in on the front end about your, uh, long time love of Sweetwater as well to our listeners. Hopefully you’ve enjoyed this conversation, uh, as much as we have, Hey, do what Phil’s doing, do what Phil and Sweetwater team’s doing. Get out there and do good give forward and be the change that’s needed. And on that note, we’ll see next time, right back here on supply chain now. Thanks everybody.
Intro/Outro (35:16):
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Phil Rich is a 20+ year veteran of the music industry with an incredibly broad experience in retail sales, training, merchandising, purchasing, marketing, promotions, and strategic management. His primary responsibilities at Sweetwater include working with his team to determine what brands and products the company carries, and overall management of Sweetwater’s incredible inventory selection. Right out of high school, Phil served in the US Navy for 8 years including a year at sea aboard USS Midway during Desert Shield/Storm, and then later as a guitarist and live sound engineer for the Navy Band. Phil continues to play guitar professionally and performs regularly with several groups in the Fort Wayne area. He also has significant experience as an audio engineer and is a graduate of the University of Washington’s audio production program. Prior to joining Sweetwater in 2011, Phil spent 14 years working for Guitar Center as vice president of merchandising and in other roles including district sales manager and director of training. Growing up with his father in aviation, Phil’s love for flying led him to become an instrument-rated pilot. He volunteers regularly with the local EAA Young Eagles program, bringing the experience of flight to local youth. Connect with Phil on LinkedIn.
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