IAM2514 – CEO Revolutionizes The Packaging Industry by Providing Reusable Shipping Packaging

Speaker 1

00:00 - 00:44

to get companies and consumers to think differently about how they can package and convey goods requires touching all parts of the supply chain and business functions from accounting, because now instead of an expense, which is just a cardboard box that gets recycled or thrown away, you have an asset, which is a reasonable package, to marketing, to consumer education, to the shippers like DHL and UPS who are having to convey it. It touches everything in the supply chain. Are you ready to hear business stories and learn effective ways to build relationships, generate sales, and level up your business from awesome CEOs, entrepreneurs, and founders without listening to a long, long, long interview?

Speaker 1

00:45 - 00:57

If so, you've come to the right place. Gresh values your time and is ready to share with you the valuable info you're in search of. This is the I Am CEO Podcast. Hello, hello, hello.

Speaker 1

00:57 - 01:06

This is Gretch from the I Am CEO Podcast and I have a very special guest on the show today. I have Mike Newman of Returnity Innovations. Mike, it's awesome to have you on the show. Thank you for having me.

Speaker 1

01:07 - 01:20

No problem. Super excited to have you on. And what I want to do is just read a little bit more about Mike so you can hear about all the awesome things that he's doing. And Mike Newman is the CEO of Returnity Innovations, the pioneer in the elimination of single-use shipping packaging.

Speaker 1

01:21 - 01:54

Mike has worked at the intersection of supply chain and sustainability for over 20 years. After directing the Sierras Club's political operations in 20 states, he received his MBA from the Ross School of Business at the University of Michigan. As Sales and Marketing Executive Vice President for ReCellular, he built e-waste programs for Verizon, AT&T, Walmart, Best Buy, and more, saving millions of used cell phones from landfills. Through his leadership at Returnity, reusable packaging will replace the use of over 1 million cardboard boxes and poly mailer bags in 2019.

Speaker 1

01:55 - 02:06

Mike has been featured on the Today Show, the New York Times, NPR, and many more, including the IMCO podcast. Mike, are you ready to speak to the IMCO community? I'm excited. Yeah.

Speaker 1

02:06 - 02:12

Thanks. Awesome. Let's do it. So the first question I had was to hear a little bit more about what I call your CEO story and what led you to start your business.

Speaker 1

02:13 - 02:48

So I was actually brought in two years ago by the investor group, um, for two fraternity. It had been incubated out of a reasonable shopping bag business. And one of the companies that was buying, uh, those reasonable shopping bags, uh, was a very early days thread up, which has since grown to be this huge, um, market creator and used clothing remarketing. So, at the time, James Reinhart was buying used shopping bags for ThredUP, and he tasked the founder of that shopping bag company, Mitch, with the idea of, boy, could you make me a reusable shipping bag?

Speaker 1

02:48 - 03:28

And that sort of spun Mitch down this rabbit hole of the initial ideas of how to figure out how to make functional reusable packaging that could replace polymer bags and cardboard boxes. And after working out of tech for a little while, the investor group brought me in to leverage my experience in supply chain and sustainability and figure out how we can take this technology and actually create markets for it. And so that's been this two-year roller coaster of learning and applying and growing. And, uh, it's, it's a really exciting time I think for this technology and where markets are going to be able to have that, that knowledge and that, and that toolkit.

Speaker 1

03:29 - 03:53

Yeah, absolutely. Especially in something that's so, you know, very much needed for, you know, our environment and our economy and our world is great to hear that you guys are on the forefront working on that and, um, definitely, you know, making the world a overall better place. Yes. I think, um, you know, whether it's the, you know, needed and growing attention to climate change or just the explosion of e-commerce and the problems of last mile delivery.

Speaker 1

03:53 - 04:09

I mean, we're kind of at the intersection of a lot of trend lines, which is exciting. And, you know, we're making new markets, which is always hard, but also. There's never a dull day. So it's really cool to cool to see how it's developed Yeah, it's funny that you said that making new markets sounds very very exciting.

Speaker 1

04:09 - 04:43

Definitely not dull But definitely I'm sure it's definitely a lot of stuff that you're juggling a lot of you know Working through things and pioneering that you know, a lot of people have to do whenever they're doing something innovative So I appreciate you guys for that I know you touched on it a little bit, but I wanted to hear a little bit more on what you guys are doing Could you take us through like how you're serving your clients? And I know you probably have different people that also benefit from that Yeah, I mean, at its most basic, what we've developed are bags and boxes to replace cardboard and poly mailers. And that is fairly simplistic on its face.

Speaker 1

04:43 - 05:00

The challenge, of course, is then what does that actually mean in the real world? And how do you get companies and consumers to adopt that evolution? And so a lot of the first things we had to do as a company was figure out just how to make a functional reusable box. or bag.

Speaker 1

05:01 - 05:41

But then, you know, what I found is over the last few years is what we've had to evolve beyond into is in essence, a services company because packaging traditionally and really, you know, cardboard has been around for over 100 years, everyone knows how it works and what to do with it when they're done with it. To get companies and consumers to think differently about how they can package and convey goods requires touching all parts of the supply chain and business functions from accounting because now instead of a and an expense, which is just a cardboard box that gets recycled or thrown away. You have an asset, which is a reasonable package to marketing, to consumer education, to the shippers like DHL and UPS who are having to convey it.

Speaker 1

05:42 - 06:02

It touches everything in the supply chain. So what we started out was, I called it dumb packaging company. We just made dumb boxes and dumb bags. And what we've kind of evolved into is a systems company that develops the packaging, but then also guides your enterprise through the process of integrating this new way of shipping and delivering products.

Speaker 1

06:03 - 06:27

Yeah, that makes perfect sense. And, you know, I always wonder, you know, whenever you are, you know, um, innovating and doing something to pioneering, like how much, you know, education and awareness probably has to, you know, play a big part of that. So I can definitely see how you're talking about, you know, operations technology and probably awareness is probably a tremendous part to, you know, getting people to understand the benefits of it and understand also what it is. Yes.

Speaker 1

06:27 - 07:00

And I think that really has been, um, for me, one of the most critical things is, finding ways to develop products and have them work in the marketplace as closely to cardboard and poly as possible because the less that you have to train both your internal stakeholders and consumers on what this thing is and how to use it, the better off you're going to be. So we've really done a lot to make it a seamless integration as much as possible for that reason. Because if you really have to change behavior, any behavior change is going to create friction and challenges.

Speaker 1

07:00 - 07:17

And so the less education, the less training, the less new behaviors you have to introduce, the better off you're going to be. Yeah, that makes perfect sense. It's funny because I've had like, um, sales jobs in the past. And one of the things that I remember, like one of my managers saying is that you think your competition is all these things out there.

Speaker 1

07:17 - 07:33

Sometimes your biggest competition is the status quo because a lot of people just don't want to change to anything else. So it kind of makes sense that you would align that with what people are already doing. So it's, you know, an easier transition and then they're already doing the same things and then they can have all these benefits as well. Yeah, that's right.

Speaker 1

07:33 - 07:53

I mean, one example of that is, you know, all the carriers have this service fee that they apply to nontraditional packaging. And the way, you know, like the way FedEx described to us is we have people who will put a shipping label on a tire and then just drop it off at a store. Well, obviously that is problematic. So they had to have this special classification.

Speaker 1

07:53 - 08:11

So for us to not have that be a problem, we really had to think, okay, well, how do UPS and FedEx and the Postal Service handle cardboard? Like how does it move through their system? our boxes need to be able to work in that environment for them. So they're not having to create new systems that handle these products, especially because that always adds cost.

Speaker 1

08:11 - 08:26

So all those the minutiae is really, you know, the devil's in the details, like, that's where these things can thrive or die. And that's, you know, where we've really had to try and be smart. Yeah, that makes perfect sense. And let me ask you this, would you consider that to be like your secret sauce?

Speaker 1

08:26 - 08:43

You know, for you or your organization? Do you think that's what set you guys apart? Well, I think that, you know, partially I think it is that, you know, cardboard and poly has been successful because it's cheap, it's light, it's easy to use, and it's effective. It protects the goods, mostly, during shipping.

Speaker 1

08:43 - 09:10

And so I think we were the first ones to understand that if you're going to change that system, you have to innovate packaging that competes on all of those criteria. You know, there's things out there like rigid cases that, you know, people probably seen for shipping things to trade shows and stuff like that, that are just big and heavy and very expensive. And they're, they're effective at protecting goods. but they miss all those other criteria that have made cardboard and poly successful.

Speaker 1

09:10 - 09:46

And so I think one of our sort of differentiators has been understanding that to actually scale out a replacement to what has been a wildly effective packaging solution over time, you have to address all of those factors that have made it successful at once. And you're gonna be better on some and not as good on others, but you have to at least compete in all of those areas. And I think that's what we've been able to do from an innovation standpoint. And then the second I think is coming back to what we were talking about a little bit earlier, which is that it's not just about manufacturing a box and dropping it off at your customer's doorstep and saying, thank you very much.

Speaker 1

09:46 - 10:12

You have to hold their hand throughout this evolution because it touches on every part of the business and it requires them thinking differently. And the more they have to figure that out on their own, the harder it's going to be for you. Yeah, no, that makes perfect sense. Just, uh, you know, creating your own category, you have to take all that into account and getting that awareness out, you know, is extremely important, but also understanding like all the different stakeholders and why they're doing X, Y, and Z takes a lot of, you know, listening and

Speaker 1

10:12 - 10:28

due diligence to understand that a lot of those boxes are checked so that when you are creating your own category, it does, you know, provide those benefits though. Absolutely. Nice. And, um, what I wanted to do was, uh, switch gears a little bit and I wanted to ask you for what I call a CEO hack.

Speaker 1

10:28 - 11:04

And this might be an Apple book or a habit that you have, but it's something that makes you more effective and efficient. Well, so yeah, I mean, I think for me, the word that I was, the thing I always think about is transparency. Uh, and I think that what I've learned about myself, you know, I'm, I'm eight years into my entrepreneurial career, uh, starting and running startups. Um, is I think I was early on, I, I always pride myself on my transparency about the business and can, and really communicating effectively to stakeholders, whether it's employees or customers or investors on what was happening with the company.

Speaker 1

11:04 - 11:27

Um, I didn't necessarily translate that into my personal life so much. So, um, but then I have two young kids now, I have a four and a two year old, they take up a ton of time and energy. Um, and that's time and energy that, you know, frankly, I used to devote to my startups. And so, Now I'm like a nine to five, and then, you know, eight to 10 or 11, but I'm like a nine to five employee more often during the work week.

Speaker 1

11:28 - 12:06

And what I've learned about myself and then what I've been able to sort of bring to the organization is being transparent about where I'm at personally with the team and having sort of the confidence in myself and in my team to be able to share what's happening to me. You know, I think at first I tried to hide why I wasn't necessarily in the office as long or why I'd duck out early for you know, something at a kid's school because I felt like almost it was a negative that was taking me away from the business. Now I found that actually being more transparent about not just what's happening with the company, what's happening with me and why I'm so, why I have to be more focused when I am at my desk or in the office.

Speaker 1

12:07 - 12:35

Yeah, I think that makes perfect sense because I think sometimes when we look at, you know, businesses and organizations, we forget that it's made up of people and people have kids, they have wives, they have, you know, uh, sons and daughters, dogs, you know, all these things that, you know, people have. So a lot of times, you know, by, you know, showing and being transparent, as you said, you can, a lot of times have a type of connection because they're like, Oh, I have to run to my son's soccer game or something like that too. So they kind of understand it kind of, creates a better engagement.

Speaker 1

12:35 - 13:04

And now I wanted to ask you for what I call a CEO nugget. And this is a word of wisdom or piece of advice, or if you can hop into a time machine, what would you tell your younger business self? Yeah, I think I actually talk about this a lot now. So it's something, you know, I think the thing I could not understand as a young entrepreneur, or first time entrepreneur, I should say, is just how fundamental those first choices you make are on the kind of business you have as it grows.

Speaker 1

13:05 - 13:38

And when you're in that early exciting days, you have an idea, you just wanna go at it, you tend to kind of just glob onto whatever can help you, whether it's a mentor, an employee, a funder, like whatever the thing is that's gonna get you going, you tend to just wanna, great, let's get going. The problem with that is that once you're a year two, three, four in, um, those earliest choices really impact what that company looks and feels like to you. Then entrepreneurs are always understaffed under resource.

Speaker 1

13:38 - 14:15

Like, you know, you have to make choices, but you know, a classic example I think is with, um, you know, it's more popular these days to raise money with convertible debt because you're like delaying, decisions that, that, you know, around equity and valuations and things that as an entrepreneur, if that's the type of company you're trying to create and you're raising money that way, you think, Oh, that's great. Except for now you've started this clock that is like an up and out mentality that that's the only way you're going to succeed is if in a year or two, you've grown enough to go and raise money again. And that is putting you on a path that is almost impossible to get off of.

Speaker 1

14:15 - 14:33

And you may not even understand that at day one. And so you might be a year or two in and feeling like things are going great, except they're not going so great that you can raise more money. And now your companies might be done, even though you've created so much traction. So those early decisions make huge impacts on later decisions.

Speaker 1

14:33 - 14:54

And you have to, I think, therefore have a very honest conversation with yourself when you're starting a new venture. That makes perfect sense. And, and now I wanted to ask you my absolute favorite question, which is kind of in alignment with what we just talked about, which is the definition of what it means to be a CEO. And we're hoping to have different quote unquote CEOs on the show, as you mentioned, you know, lifestyle entrepreneurs are the billion dollar, you know, entrepreneurs that are looking to build that.

Speaker 1

14:54 - 15:14

But I wanted to ask you specifically, Michael, what does being a CEO mean to you? I think about being a CEO as how you hand is somebody who has to handle think problems head on when things go wrong, and then facilitates a vision and accountability to make sure things go right. Absolutely. I think that makes perfect sense.

Speaker 1

15:14 - 15:31

And it's a great reminder, you know, kind of the buck stops with you as a CEO one way or another. So it's a great thing to kind of remember. So I truly appreciate your time. Again, what I wanted to do is pass you the mic, so to speak, Michael, and let us know if there's anything additional you want to let our readers and listeners know, and then of course, how best people can get ahold of you.

Speaker 1

15:32 - 16:00

I think the only other thing I would say is sort of dovetailing a little bit off of what we were talking about earlier is that when I, as a relatively experienced founder and CEO at this point, what I'm constantly reminded of is how hard it is to get off the train. And once you start down this path as an entrepreneur, as a CEO, You think, you know, it's easy to tell yourself, I'm just gonna do it for a little while and see how it goes. It almost never happens that way.

Speaker 1

16:00 - 16:14

You get invested financially, emotionally, your relationships with your funders, with your partners. I always love to hear from others. You know, the easiest way to get me is just send my Returnity email, which is Mike at Returnity.co. Awesome, awesome, awesome.

Speaker 1

16:14 - 16:28

And I hope you have a phenomenal rest of the day. Thank you so much. Thank you for listening to the IMCEO podcast powered by CB Nation and Blue 16 Media. Tune in next time and visit us at imceo.co.

Speaker 1

16:28 - 16:46

IMCEO is not just a phrase, it's a community. Check out the latest and greatest apps, books, and habits to level up your business at ceohacks.co. This has been the I Am CEO podcast with Gresham Harkless Jr. Thank you for listening.