Adam Fields, ARTA

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Now is the chance to use reliable energy to grow your money with the Dominion Energy Reliability Investment our new investment product offers competitive competitive returns no maintenance fees and flexible online access to your money. Make the reliable investment in reliable energy the Dominion Energy Reliability Liability Investment to find out more go online to reliability investment dot com. That's reliability investment dot com you are listening to the pilgrim on the four oh five with will crist join him as he and his guest discover how businesses thrive in California well welcome to them on the four. Oh five we are going to be talking to an entrepreneur. It's morning in New York. City who is is who has solving a problem that lots of people didn't even know that they had back they were probably willing to put up with an old technology analogy and he has come up with a way of doing it so let's welcome. Adam feels the founder and C._E._O.. Of Arta which is a unique peak logistics company in the world so welcome. Thanks thanks for having me. It's good to be here so Adam. Tell us a little bit. What art is yeah definitely so we can buy technology and logistics to focus on the movement of high end goods are on oral like <music> are uninsured antiques durie on trying to combine both a six platform with deep industry expertise our expertise rather to provide an alternative at two people who really rely on both Fedex but also the antiquated supply chains inexpensive fragile at irregular items items around the world are in snow? How did you get into this? What were you in logistics before now? I wasn't didn't really deepen logistics. I've always really intrigued <unk>. I had a business previously called art space which was a platform not trying to make art and design. I objects accessible to of our audience. We were ECOMMERCE platform. What I started recognizing overseen that operation has never been easier to you buy but next image but it's really difficult to get items from point for destructive exiting instruct nip at Xbox we were dealing with items needed uh-huh specialized packing needed extra services Alec Insurance Insulation Creating and leave the common carriers like Fedex E._d._s. d._H._l.? Don't offer that we found ourselves position states. We didn't have a solution that can automatically output shipping price completed transaction. It's it's similar. You know that you are trying to buy something Amazon and you could get a price at shipping Fedex even if it was twenty five or thirty thirty dollars you know be tough for you to Kinda. WanNa pin is Arnaud so no are primarily do you serve people who are selling online questions are may kind of customer customer base our merchants and sellers that are high volume <hes> highly so ranges from large auction houses to our dealers offers <hes> we don't focus as much on individual we shift to a lot of individuals where it's focused on salaries and try to streamline their wholesale just in the example that I like to give is the onus on shipping is oftentimes unstability seller <hes> maybe to employ large amounts of people that are really hadn't logistics currently <hes>. There's a lot to stitch together. I in last mile basis on the other hand. You should eat something that you know is Fedex U._P._S.. Level you don't need a large staff automatically. Get a radio chip any kind of allow sellers to really optimize slimmed-down up their their operations so in in a sense you are providing what Amazon provides almost invisibly when I buy a book Amazon does all of this in I I have no idea but when I look into it it's it's an enormous operation. Nasr is accurate. I mean we we live in a world now where consumers in salaries and really everyone <unk> has kind of Fedex and Amazon like expectations and that really is focused more on what we like L.. Everyday binds implodes remind iphone you know you're buying line skis and stuff and you can tap into that infrastructure really I if you're not whether you're buying a table or chair or or piece of our worker you know somebody like collectible kind of have that experience our view is that we can bill that experience really matches expectations of it's a big opportunity but it really allows you know commerce city in areas that are not normal every well. I remember forty years ago. When I was research in college? I was in Boston for the summer and I was driving back to university in Fort Worth in and I I took a drive giveaway car because somebody was on the in Boston wanted to get their car to taxes and that was the logistics right. They paid me a little little bit and I got free transportation to Texas of a year ago. My son had been living here and he moved back to Warwick Massachusetts institutions and the day before he was moving. He called up a car mover. They were here the next day with their trailer and boom off they they went. That's not what you're doing right. I mean you know it's it's very fragmented. Across the supply routes <unk> there are people that just focused on local regional national is sometimes it should just go between Fort Worth New Yorker New York Chicago and a the half extra truck looking but at the same token. If you know shipper they can't always service we need so we review that if we really add you bovine technology across it it makes it easier to dissect the carriers the pricing would provide a consolidated went for the buyer and seller through the easier to transact all alternately grow their businesses attract customers around all right so so you're you're the back end. Logistics person for the company wants is to work with you. Were that you know the the main idea to is that a lot of these industries that are servicing have really proliferated online as much in our Cathy's. This is a lot of that is because people are willing more and more you know over the last five or ten years to Fi- you know higher priced items on live so that the fastest growing e commerce commerce <unk> today <hes> in the United States is not conveyed <unk> that stuff that is cannot be going to automates Phillips. Well like wayfair right exactly exactly so that. That's you know that's twenty percent a year year. <hes> it's a massive industry growing faster than Kinda regularly commerce and finding the logistics solutions to service <unk> commerce is a big cuter are until so I'm GonNa Imagine something here where we're now we <hes> Lodged in high speed Internet in low prices there <hes> when India bills a couch are you in a position to deliver that head to Muncie Indiana well we are in a position now to do that and we are getting to the point now where we are automated essentially essentially across multiple categories service so the problem with shipping things you can't fedex is that it's inherently a bit more expensive. Obviously obviously you put an iphone and ship it on the ground. That's GONNA cost fifteen dollars. You know to go to that network. If you're shipping tonight on the couch you know account how can be anywhere from five hundred dollars the five fifty to fifty thousand dollars people kind of equate the cost to shit as a percentage of the overall rights so we're trying to provide <unk> saving time as money in that we can make instantaneous to get a quote amend bringing down the price by peeling away layers so there's less subcontracting but ultimately yes we would like to have a seller in India ah being able to instantaneously transact with a buyer in Muncie Indiana Anna net buyer would be able to see transparently seen with their costs would be trying to buy that actually could know what they're all in costs are crossed the item <music> shipping the import tax so on and so forth and make it as totally <unk> well right now. If I wanted to buy a couch I would go to a local store or in chances are they would say great will have it to you in six weeks because they're going to North Carolina to have built poked they'll have shipped out in the not delivered to my house and so if if someone were to offer me a comparable or maybe even <hes> more customized couch and they're in India without you I would be reluctant to enter into that conversation nats. That's exactly right. I think that's why sometimes people people don't buy things that are further distances away because it potentially be more expensive on on on the flip side. A lot of businesses are really strained to where they're selling because they don't have international logistics solutions so that that you know a business Zenia or artisan would make your upstate New York or or you know the valley in California might not be able to sell to anyone outside other areas because you don't have an easy way to get cost and really the entire supply chain well in in one of the things that that Amazon the prime has done to my mind and maybe to the general consumers minds. I no longer look at the price for shipping right now. It's obviously costing something to ship in with Amazon. They're dropping the price generally lower than what I'm GonNa find in the bookstore but inaccurate when I when I begin to think about purchasing couch the couch is being sold to me in the same way that Amazon sells. They don't say to me. We're we'RE GONNA shift this from North Carolina and here's the shipping cost. They just say this is a total cost in so that is because they they know what the costs are right away and put together a business case that Errol E. Ten twenty. Whatever another shipping is the fire customer? We're trying to tell people that you know now for items that you can't buy Amazon or you can often get a rate we we can give you the rates. You can make that businesses to hey I know the custody presided this. I'm willing to eat shipping to try to make a sale or wide I offer fifty percent shipping the lower the cost of lower barriers to to that sale or if if my cost of manufacturer is is low enough then I can simply say I'll ship it for free and it'll still provide a margin for me and you don't. I'll have to worry about it. Just click here and it's on the way Zachary amazing is that logistics is really the Achilles heel a global global commerce trade and if it stays so fragmented. It's difficult we have you know one of our users in New York Chris Tierney our they're small business for ten years. You know previously they employ someone who literally told us they had called twelve hundred vendors to get twelve hundred Biz. I tried to find the right person for the job. That's you know that's a lot of overhead in some cost to try to ship one thing by herself. So if he's if he's he's salaries increase <unk> by better easier <hes> you know that that's a win win for all sites so you're participating globalization not by outsourcing but by creating a way for a foreign <hes> foreign manufacturer actuary to ship in <hes> <hes> especially if they can reduce their manufacturing costs to to ship at a competitive price that's exactly right right and the other side of the two is that we're allowing people here. <hes> the example I like is that you know Fedex U._p._S.. With kind of B e Commerce Revolution Solution one point out. Let's say a candle maker offerings to to sell someone in Hong Kong because they didn't have to worry about house together. We want want to allow for people to expand their audience <unk> scale for areas outside of geographies privacy and give me a list of things that people couldn't put into Fedex box no well the the kind of you know these are selling that we're looking at are really items that are fragile valuable <hes> large Fedex U._P._S.. They're called all convey able items because they literally go in an automated facility so they can't handle that under pounds and there'd been pushing <unk> automatically which is not really being handled as well as they could so if you have a glass space you have a couch you have a car. You're you have some deputies of medical manufacturer women's. You know that stuff needs to be handled by a subset of providers lung first middle last mile L. which usually takes a lot of time to get it because he had to ask people. I have trusted providers lung way between those people that have specialization eat people that go go into an environment actually was that it arrived safe when they come inside and saw the other side making sure that can't get caught up in customs uh-huh because a lot of times you different codes and harmonize <unk> articulated these other areas that they're not held up. You know there's a lot of things that go into <hes> which is why it's so difficult. We think that U._p._S. Enters vendors to reach out to <unk> asselot forcibly creates a mastery third so if someone wanted to <music> <hes> be a seller of used a Tesla's they could put together a database of of us. WHO's TESCO's around the country in you could be the deliverer the logistical solution for them correct <unk> clear? WE'RE NOT WE'RE NOT AT A- At cars getting done a little bit but we haven't automated that were were getting there soon. Our main focus right now is our furniture furniture design objects and jewelry for that is that is the idea all right so let's shift to to the entrepreneur's journey talk to us about how you started. Where did you come up you know what was the where? Where were you sitting when you head this idea yeah I think I think entrepreneurs kinda come from two angles? It's IT'S I. I want to start a business ad. I want to figure out where the juries are kind of doing a top down analysis of it. I think there's there's knee which is really more of the bottom up. Is they see not a problem. Andhra most problems come opportunities and I think I was in that situation at my previous business where it was just very obvious to me that there is a lot of items that people interact with every day that you cannot just instantaneously get a rate for there's a way to serve that entity ecommerce settings that all of a sudden allows more people to engage in commerce and become an enemy we saw that at our last isn't that as we committee grow <hes> we didn't have a way to put shipping costs and I started to talk to our users our users to you guys deal with shipping these items and they would say oh you have to call on people and it's a huge pain. Actually there had to be a solution for it and it wasn't <hes> and I think it was really trying to solve a problem that we had in recognizing. Mahathir wasn't sure they wasn't a solution that was like all right so you have the idea then what they give me a million dollars in they did alright yeah. Well exactly well. Our users pretty much said you know if you find a solution. We love you forever so I learned a lot I I didn't we know about this kind of <hes> other tag logistics infrastructure that was outside of the United States are servicing that exide really learn a lot more about about the freight forwarders specialize logistics industry and we raised a precede round of a million dollars in two thousand sixteen Alex is really what we launched the business to really bring it more from from ideas as to reality and and you know a year or so ago so raise another three million dollars and now you know it really paid it from a this is just focused on the United States <hes> to transfer things on on the ground to a business that really has automated entire crises side of things <hes> on a global scale across fifty countries in over seven hundred cities so all sorry so you hit the then deer than your customers and you really started off with with Dan Sullivan says talked to the people who are gonNA write a check yet right right yeah. I think I think a Hologram you know the San Francisco Y combinator investor he always says says you know you gotta start out doing things that are not skilled so we really did was we started out with no technology all I hired someone who had experience in the shipping inside <unk> relationships on the demand side. I am sort of going to the demand side say hey let us know your should this stuff. We want to try to get competitive bids US demonstrate through value to them our supplier network <hes> an-and Neto started to build some technology in between to try to bring in a bit war on so you know it started out no technology at all more kind of an offline broker learning as much as he could and inserted accountable in some of the technology all right so you had the idea in then you went to the people who could write a check and said what if yeah right yeah we said what if what if you didn't have to reach out to three or four people each time what if it didn't have to take a week to get a quote back you know what if your customers give me happy regret Majori out suitor. What have you can reach people online distribution channel versus offline and the answer is for pretty astoundingly that would be amazing if you to make it happen you know we we would use you and and that was true? Okay all right okay eight then what you've gotta prove a concept right. You're making a little margin. You hired a logistics experience. reince logistic may be a guru but at least he's got experience in logistics right. Okay the way that I kind of the analogy I can use for for for entrepreneurship instead of building a business dispatch is really you know you you drop some water on the sidewalk or on on side a little hill bill and it's not a straight line. They're trying to see the data go to really get to the virus the nation I think that's really really a truthful we try to do which is that you have. An idea of vision of you need to be guided by asking questions and really reading reading the date. It's enough response. We talked to people is all the thing that people backwards this. This is great. You're really good but you know our biggest challenge outside has gathering hosted really dealing with the shipping is international so is it okay. We started out on the domestic side. It's working really well obviously as want to have a more global solution so needed to build a more global solutions alleged ex- expanded our platform anarchy abilities are international now. Dan Philbin talks about about finding the WHO rather than the how is that true for you. Yeah I mean I think the concept that we kinda subscribe to the idea of a product market fit. which is you know you? You're building something but you need to get it to point where your demand side. <hes> can't live without budget and I think that that's exactly what you're you're trying to get at. We found something that people like but we needed to get to a point where they said. If you guys a lot of business or just <unk> <unk> at the snap we are live. We fundamentally think about your iphone Amazon. All these things people pool they went away. People will say my life is definitively worse and that's how we WANNA get we want we want to influence the way the way people operate you know so substantially financially that they become so dependent on us that they can't live without us naturally what we're what we're attracted to improving right now. So what's the size of your organization terms of people now real people front. We are H.. E. People out. We've we've got a lot of the little we have an office in London. <HES> ORGANIZATIONS SPLIT UP tween operations the events that are going out product and technology marketing and client services and so <music>. How do you hire who who gets into those seats yeah I it's interesting you know were worried? Organization that is kind of melding two different worlds <unk> logistic -nology people from those worlds agree different. You know so half our organization <hes> is is kind of start up. Technology veterans and part of the organization are people that are from logistics will historically <hes> has a lack of technology so trying to trying to get the technology acknowledged side to understand okay you know the people that are going to be talking to whether it's internally or the shippers or users kind of our tax bursts and then on the other side is trying to get the people that you might not have the technology Beckmann <unk> boxer stand that we're trying to change the status quo jaded with happen so it's fun. It was learning different perspectives in trying to melt them together in trying to find really that at our outside the box leaders understand that the world is constantly changing every six to twelve months. You have a thesis that you might need just a little bit. <hes> two brothers yeah all right so people London people in New York. You got people in L._A.. We would not yet we have you know we we do a lot of business in L. A. L. as our second biggest market stab as I mentioned we bought him in pricing. One of the features that we have is instinct motives of the EH. The biggest route that we have in terms of people utilize that it's quote future is l.. A. New York New York L._A.. so-and-so for so that that corridor as our the second biggest market so we do a lot in L._A.. In Chelsea forty general what are the tools. Did you use to sink your various various offices US internally. I mean slack slack. You know that obviously has been making a lot of noise if they just went public <hes> you know we really liked that internally. <hes> we use g mail as our kind of our the docks you so you can use whether it's the you know the excel function or the or the spreadsheet function <hes> we use dropbox a lot you know for for taking notes you kind of the customer reviews and if you internal tools intercom to help manage marketing customers alleys Meta base which sits on top of Arcane base as we can easily pull information those those are kind of name a stripe in an ad in the US prosper payments and you know we live in a world where you you don't have to build out as much as right he just on and that's the world you're building to write adapted to go. Get a truck or trailer. We live in a world of specialization that that that helps both in trying to build with this but also works to build a business for for people focus <unk> in selling on necessarily logistics supply chain Royd it while we're we're coming to the time where you've got something else coming up so tell us a little bit. What would you like to tell the world aww I can tell you my view are kind of thesis world is that it's bill on outdated commerce stack and that Commerce Act is so a lot of work call line everyday items and that's that's stuff that you buy an Amazon Ebay you know chip with Fedex in process with pay pal and that's taxied innovated on a lot with drones owns and driverless cars with their entire world out there that I feel like this kind of going the way side that has massive opportunities after buyers and sellers? We're really trying to rick non was barriers. Make it as easy to buy and sell you know P._t.. Now are beautiful beautiful selected light and as it is an iphone or water bottlers headphones. I think we're we're getting there but it's really trying to change the way people can operate that happens <unk> hurdle time Bob so choose a little bit of trying to push forward. What would you like people to do what I do well? I think they should check this out. I guess the at our website is shift Arte S. H.. E. A. R. T. A. DOT COM <hes> we love to try to streamline <unk> process. Hopefully enabling ECOMMERCE people that are trying to set Sherifi store are trying to sell some stuff at auction and hopefully allow all these precious beautiful items our shooting to to to proliferate more broadly and you know the in people's homes and more enjoyable at hopefully allow businesses to raise their hardens in in other businesses and so on social couch manufacturers in India right right good so email email address due dot com. Hello Ship Arte want to say hello with A._P._I.. Our coming out with us so any online seller online marketplace for solving a problem after those Kinda guys or gals were and the left the <unk> product out there work. You're able commerce. Thanks for sharing sharing all this wonderful entrepreneurial insight that you're experiencing. It sounds like there's a lot of fun. <hes> let's let's plan to have another conversation in stay in touch right conceded. Thanks all right folks. <hes> there's another great example of how to thrive make your business thrive. We talk specifically about California but here's the guy who's coming into the port of Los Angeles part of Long Beach. If from New York in GONNA help provide a lot more logistical insight support for <hes> artists musicians <hes> shippers manufacturers in California so another way okay for businesses in California to thrive. You've been listening to the pilgrim on the four. Oh five with will Chris you. Now is the chance to use reliable energy to grow your money with at the Dominion Energy Reliability Investment. Our new investment product offers competitive returns no maintenance fees and flexible online access to your money you make the reliable investment in reliable energy the Dominion Energy Reliability Investment to find out more go online to Reliability Investment Smith DOT COM. That's reliability investment dot com now is the chance to use reliable energy to grow your money with the Dominion Energy Reliability Investment our new investment product offers competitive returns no maintenance fees and flexible

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