OWL

DECEMBER 2018

www.endeavourmagazine.com

Eric Seamon

Co-Founder & Managing Director

OW LOGISTICS ‘Speaking Fluent Customer’

INSPIRED BY YOUR SUCCESS

OW LOGISTICS HTTP://OWLOGISTICS.COM // 852 2742 2902

‘SPEAKING FLUENT CUSTOMER’ After 20+ years in an industry, you know that world inside and out. Surviving through its many highs and lows, one will become intimately familiar with the way business is done.

WRITTEN BY ALICE INSTONE-BREWER

OW LOGISTICS

This depth of experience will not only teach you what is

profitable, but also what you consider moral – what you’re happy to be a part of, and what you’d like to see set right.

C

lose friends Eric Seamon and David Wong, co-founders of OW Logistics, decided that after two decades of these lessons, they were ready to take the risk of setting up their own company –

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one that they were happy to put their name to: “Our backgrounds were similar – we had both ‘grown up’ in the retail divisions of large 3PLs and technology companies.

In particular, we had both focused on managing and marketing operations both in Asia and North America.” Over the past 20 years, the friends had both worked in the retail divisions of US$20 billion+

St Andrews

Est 1860

GOLF’S OLDEST BRAND!

logistics companies such as UPS, Sealand, Hutchison and LogNet, the retail focused supply chain technology company. In 2008, the pair opened up a new company on behalf of an American group that sold to another vast organisation after only five years. Their entire careers in logistics had been with entities of this calibre, and

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in 2012, they took stock of their experience, and decided that they wanted a change. “By that point, we were both about 45 years old, and we looked at where we were in life. We decided that we wanted to build a business that was about more than just the bottom line. In addition to building revenue fairly and honestly, we wanted to focus

GLOBALLY RENOWNED CRICKET, GOLF, AND LEISURE BRAND

on cultivating long term, personal relationships with customers, partners, vendors and staff. That was what we had in mind when starting OWL.”

global.shop247.com 16 | Endeavour Magazine

When you set out on a mission like this, you take a gamble, and Eric and David knew that ideals alone couldn’t realize their

OW LOGISTICS dreams – they needed a reliable business plan to create a sturdy

Instead of focusing on logistics-based acronyms and concerns that

foundation for the world they wanted to build. “We knew that

an importer doesn’t understand, and vice versa, OWL is able to pair

if we didn’t layer this thing and invest in technology to run it, we

their clients with staff members who have sometimes worked in an

would be like everybody else and we would be left behind. The

industry longer than the customer themselves, resulting in a better,

mission was to build something that was boutique, that was super

more relevant solution-based service.

customer focused, that was for a niche market, and was driven by

The other reason for OWL’s niche market of choice was

technology.” The company’s niche of choice was the retail sector –

the observations Eric and David had made in the industry: that

more specifically, logistic solutions from Asia into the UK and North

digitalisation was the only viable way forwards if they wanted to

America for small to medium sized importers.

compete. To this end, the company has not only classed itself as a

Eric and David selected this focus based on their previous

technology driven supply chain solutions provider, but has invested

experience in the logistics sector. “We were building the retail

in several technology companies in order to do so. “We heard the

divisions, working specifically for North American retailers buying

market, and instead of using technology off the shelf, we decided to

from Asia. So, the team we assembled, as well as our advisors and

take a more direct approach, which was to invest in modern supply

board, came from the retail logistics divisions of 3PLs and US and

chain technology companies, gain a seat on the board of those

European importers.” This experience of OWL’s leadership and its

companies and help steer them towards creating best-in-class

key staff allows the company to offer its customers something that

technology for our customers and operations.” One such company

not every logistic provider can - that is, an understanding of their

was Mercado Labs, the first affordable web-based digital platform

side of the fence. “When we use that tagline, ‘We speak fluent

for managing international supply chains for small to medium sized

Customer’, we mean that we literally have been the customer.”

importers.

This genuine insight into customers’ experiences allows OWL to

OWL has also strategically partnered through common

address their needs in a way other logistics companies may not.

ownership with 28One, a partnership sourcing company based in

Fastic Logistics Group

Innovative Logistics Solutions

FASTIC LOGISTICS GROUP are a nominated

State-of-the-art technology and human-based management • China’s premier CFS headquartered in Ningbo • 420,000sqm Container Depot serving all major carriers • 120,000sqm WH capacity, also handling eCommerce (FBA) • Present in all major Chinese port cities • Handled a volume of 1.75mln TEUs in 2017 • Customs-approved Integrated Logistics Hub

www.fasticgroup.com 18 | Endeavour Magazine

Some of our partners: MSC Evergreen Maersk CMA CGM Cosco ONE

Supervised Customhouse Warehouse enabling China Customs officers to inspect goods within their premises, making the whole process faster and in turn improving your supply chain efficiency.

GET IN TOUCH WITH US: Mr. Riccardo Cavaglià riccardo.c@fasticgroup.com +86-18969857972 +86-(0)574-87093226

Miss Jessica Qin jessica.qin@fasticgroup.com +86-13601635747 +86-(0)21-35310302

Hong Kong. “28One provides product sourcing services, managed QA operations, and vendor/product development services for many well-known retailers and brands. We believe our apparel and retail customers are uniquely positioned to take advantage of the intellectual capital and experience available within the OWL team due to its cross pollination with our retail focused sourcing sister company 28One.” Whilst it seems to have its fingers in many pies, the OWL team has also kept its vision focused. “We’re not and we’ll never be everything to everyone. Our mission is to be the best in the market we serve.” They refuse to over-extend themselves: spreading their operation too thin would run the risk of having their existing small to medium customers suffer from a split focus. OWL knows what it is they do, and they want to do it as well as possible.

Starting the company without private equity or unlimited funding, all OWL could do was ask staff to take a gamble on them if they liked their model: “All of the people we hired took risks, because they were in good jobs and all we could promise them was a year’s salary with no guarantee that this was going to work.” Regarding OWL suppliers, it was important to be upfront at the beginning of business, to manage their contacts’ expectations and ask for their

Eric Seamon, Co-Founder & Managing Director

Endeavour Magazine | 19

OW LOGISTICS trust: “We had to sit down with our suppliers and say, ‘Here’s our

Studio Nine. In fact, I’d like to give a special shout out to Mr. James

business plan and all we ask is that if you join us as a supplier, you

Snyder, partner at CKR, for all his guidance and diligence in looking

may have to be patient. If it works, everyone benefits, but there’s

after our interests in the tech. investments we have made. He has

going to be times in the first year and a half where terms of 30 days

become a part of the family”.

might have to be 60 days.’ Thankfully, due to our past lives and

Amongst the support and benefits that they offer their staff,

connections with these companies and staff, 95% of them were on

David and Eric are keen to provide opportunities to learn and work

board. If it wasn’t for this trust and patience, we wouldn’t be having

abroad: “We’re actively trying to find ways for our staff to get the

this conversation.”

same gift and blessing that David and I had. Someone made the

The gamble that OWL’s original staff took paid off, and seven

decision to take a chance on us 25 years ago.” Growing up in a small

years later, that same original staff and management is intact.

town in Ohio, USA, Eric sees the decision to send him out to Asia at

Eric told us that this was due to the positive work culture that is

a young age as a catalytic moment in the growth of his career, and

encouraged. “We’ve built a familial environment here: I’m a bit of

he wants to provide the same opportunities to others by allowing

an old hippy, and our Chinese staff have adopted that mentality. We

them to relocate with the company to North America, Europe or Sri

encourage staff to take care of the one square metre around them,

Lanka. “I’m not the only one who has wanderlust, so if we can allow

and if they’ve got more to give, give more: that comes in terms of

people to nibble on that, then why wouldn’t we?”

community service, of respect to those in the office with them etc., and I’m really proud of what has happened so far.”

As well as looking after their staff and suppliers, David and Eric’s passion for OWL was about doing business in a way that

“In truth, all partners, staff and suppliers of OWL are of the

spread this goodness to their customers. More than their interest

same mind concerning how we do business. Choosing these entities

in profit, they wanted to be a company that added genuine value

has been done with purpose. This includes our outside legal team

to the industry and that treated its clients as well as it treated

in San Francisco, CKR Law, and our marketing agency in London,

its own.

CKR is a global firm of experienced lawyers with diverse international practices.

GLOBAL PRESENCE. LOCAL EXPERTISE.®

Corporate/ Transactional General Corporate & Commercial Emerging Growth Mergers and Acquisitions Data, Privacy and Security Business Technology

James Snyder is a CKR Law, LLP partner in the firm’s San Diego and San Francisco offices. James has a broad high-tech business transactions practice, with years of experience in law firms and as in-house General Counsel in San Diego, the San Francisco Bay Area and Silicon Valley and with clients throughout APAC, Europe and South America.

San Diego, San Francisco +1-415-627-7264 – jsnyder@ckrlaw.com www.ckrlaw.com 20 | Endeavour Magazine

I greatly enjoy providing OW LOGISTICS’ outside General Counsel services. I work with emerging and high growth clients offering companies flexible and practical GC services from corporate finance and M&A to structuring and negotiating contracts. Having been GC for GT Nexus, I have extensive expertise in logistics that benefits OWL. As a CKR partner, I am able to leverage the knowledge and expertise of my global partners in every aspect of the law, across the globe, which is a huge benefit to my clients.

– JAMES D. SNYDER

Their dedication to their customers isn’t just lip service – recently it was put to a trying and highly costly test. The eventful ‘trade war’ that has been taking place between the US and China had a drastic impact on import tariffs between the countries, directly affecting OWL’s operations. During this current shipping season, if you didn’t get imports into the country by certain specific dates, there were 10% or in some cases 25% additional tariffs. With the next round threatened for January, it can increase to 15% more for many commodities. Eric explained that in response to this and the resulting influx of items trying to enter the US, steamship lines decreased their capacity, thus driving the market up. In total, the strains of these additional costs and the costs of securing a position on steamships had to go somewhere – either they needed to be absorbed by OWL or passed on to their customers. There had been no way to predict this situation, and OWL had to make a choice.

Staying true to their word, OWL honoured their commitments to their customers and, in most cases, absorbed all or a portion of the costs themselves. This was possible thanks to OWL’s buying power and carrier relationships, as well as in many cases, the ability to subsidize ocean transport losses through other value-added services provided to their customers. One such success story and

David Wong Co-Founder & Senior VP Operations

Endeavour Magazine | 21

OW LOGISTICS proof this commitment was told to us by David Millington, Director

the conference, as well as OWL’s friends and customers, received

of Shop247. Shop247 an online UK/US retailer of home, garden,

t-shirts designed after the 1975 Rolling Stones tour jersey, and

sports and leisure products. Millington said, “We decided to do

were asked to send in selfies wearing the shirts all over the world.

business with OWL four years ago because of their retail focused

For each photo received, OWL donated US$50 to the Gangodawila

origin solutions and technology. Our relationship with OWL has

orphanage. As well as gaining a little publicity from sending their

always been good, but this summer is when we really knew that we

shirts around the world, the company donated a total of US$50,000

made the right decision.” Millington went on to say that “even in this

to the orphanage, which they were able to spend on repairing and

unprecedented peak season - which still isn’t over - we haven’t been

improving the building’s plumbing, sanitation, dormitories, library

rolled once, and haven’t paid more for ocean transport than what

and playground. They were even able to buy the girls nicer beds

we agreed to in April.”

and decorate their dormitories with fairies and princess curtains

Eric and David’s ambitions are paying off, and the company

hanging from the ceiling.

they took such a risk on is now comfortably profitable. However,

“One of the biggest satisfactions I’ve gotten in the last seven

for these partners, it isn’t just about the bottom line. With profits

years is sponsoring those 65 little girls in that orphanage in Sri

to spare, they are re-investing in the future of the business. On top

Lanka. Checking the PNL every quarter and seeing that it was

of that, they have seized upon the freedom to support non-profit

profitable pales in comparison to seeing a positive difference being

endeavours as well. The first cause OWL turned its focus on was the

made in the lives of these girls.”

Gangodawila Orphanage, an orphanage in Sri Lanka that currently houses 65 girls from ages 3 to 13.

Eric spends his time between Hong Kong, the US and his wife Thushara’s country of origin, Sri Lanka. It is because of this

As a part of their push to support this orphanage, OWL

connection to the country that David and Eric selected a Sri Lankan

launched the ‘Wear in the World? Campaign.’ The campaign was

cause as its first charity to focus on, and opened OWL Sri Lanka this

launched at the 2017 TPM conference in Shenzhen. Attendees of

summer. Support of the Gangodawila orphanage comes directly

22 | Endeavour Magazine

28one partnership

through OWL and the Wear in the World? Campaign. The company has established a non-profit branch of its operations that focuses on the various ways the company can support other initiatives in the country. Eric hopes that seeing the good being done in Sri Lanka will encourage OWL’s suppliers and customers to get involved not only

“Where Experience and Solutions come together”

in this cause, but in their own communities as well. “In my mind, if you can set that example and get people to start thinking that way, then they start looking around their own community and say, ‘Boy, there must be more than just lining pockets’, and we’re seeing that.”

As well as sending funding to these other initiatives identified by their non-profit branch, the company also plans to run the Wear

Your Partners in Sourcing Focused on delivering • Tailored customer solutions • Value from concept to consumer • Visibility and control throughout the supply chain

in the World? Campaign again in 2018-19, with the aim of donating a further $50,000 to the orphanage. This year, the Rolling Stones inspired shirt will be replaced with a tie-dyed, Grateful Dead inspired design, with the Mick Jagger quote replaced by one from Jerry Garcia. This should be the next of many such drives to help not only Gangodawila but wider efforts in Sri Lanka – efforts that can only increase as Eric and David’s logistics company with a difference continues to go from strength to strength.

www.28one.com

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