Outsourcing vs. In-house Manufacturing for Your E-commerce Brand with Pelagic Founder John Morgan

John Morgan joins Mariah Parsons on Retention Chronicles. John transitioned to e-commerce by co-founding Seed Health, inspired by the microbiome's potential. He later founded Venice Ventures, an incubator for e-commerce, software, and services. John now leads Pelagic, a supply chain service aimed at brand builders. He discussed the challenges of supply chain management, emphasizing the importance of asking hard questions and avoiding over-bundling. John highlighted the impact of tariffs and AI on procurement, and stressed the need for transparency and sustainability. He also noted that stockouts and recalls can harm customer retention, advocating for proactive quality controls. Episode Timestamps 2:08 The Science of the Microbiome and Seed Health John shares how his interest in the microbiome led him to Seed Health. He describes the potential of bacteria and how it resonated with him similarly to space exploration. Seed Health offered him the opportunity to build the entire supply chain from scratch. 6:06 Venture Studio and Pelagic John discusses the growth of Seed Health and his transition to Venture Studio. He explains the launch of Venice Ventures and the opportunity to solve problems in consumer product companies. John highlights the impact of AI on their venture studio and his current role as CEO of Pelagic. Mariah Parsons asks John to provide an overview of Pelagic for the listeners. 7:36 Introduction to Pelagic and Supply Chain Challenges John explains the unique problems of manufacturing physical goods and the impact of COVID-19 on supply chains. He shares his experience tracking the pandemic's effects on Seed Health's supply chain. John emphasizes the lack of expert resources and solutions for supply chain challenges. Pelagic aims to provide a white glove service for brand builders with supply chain needs. 9:11 Modernizing Supply Chain Processes Mariah Parsons and John discuss how brands approach modernizing their supply chain processes. John highlights the importance of understanding the standard market rates for supply chain costs. He explains the challenges founders face in finding the right suppliers and the role of middlemen. John emphasizes the need for founders to ask hard questions and seek objective evaluations. 10:29 In-house vs. Outsourced Manufacturing John discusses the benefits and challenges of in-house versus outsourced manufacturing. He shares examples of clients transitioning from in-house to outsourced manufacturing. John explains the importance of selecting the right partners and managing supply chain costs. He highlights the need for founders to balance cost savings with maintaining product quality. 26:56 Trends in Procurement and Supply Chain John discusses the impact of tariffs and the importance of having backup plans. He highlights the role of AI in improving supply chain efficiency and reducing costs. John emphasizes the need for founders to stay proactive and adapt to changing market conditions. He shares Pelagic's approach to integrating sustainability and ethical practices into supply chains. 31:47 Retention and Supply Chain Optimization John explains how supply chain optimization impacts customer retention. He discusses the importance of maintaining product availability and avoiding stockouts. John highlights the risks of recalls and the need for proactive quality controls. He emphasizes the role of packaging and product quality in customer experience and retention. 38:23 Sustainability and Supply Chain Innovation John discusses the importance of sustainability and ethical practices in supply chains. He shares Pelagic's efforts to integrate sustainable solutions and transparency. John highlights the challenges founders face in balancing cost savings with sustainability. He emphasizes the potential for innovation in in-sourced manufacturing and sustainable practices. Podcast website: retentionchroniclespodcast.com Sponsor website: gomalomo.com