Podcast Summary: Coffee N° 5 with Lara Schmoisman

Episode Title: Is Supply Chain Sexy?: Cash Flow, Control, and Scaling Reality with Aaron Alpeter
Date: January 13, 2026
Guests: Aaron Alpeter (Supply Chain Expert, Founder, Advisor)
Host: Lara Schmoisman

Overview

In this engaging episode, Lara Schmoisman sits down with supply chain expert Aaron Alpeter to challenge misconceptions about supply chain management—including its (lack of) sexiness, its impact on business sustainability, and the close ties between supply chain, marketing, and cash flow. The discussion traverses everything from negotiating supplier terms and handling operational unpredictability to practical budgeting and the importance of human relationships in international business. Aaron makes the case that not only is supply chain essential, it can actually be, in his words, pretty “sexy” when you recognize its role in making ideas become reality.

Key Discussion Points & Insights

1. What is Supply Chain? Why Does It Matter?

• Supply chain as the engine of the physical world:
  • Aaron defines supply chain as “the intersection between ideas and ambitions of the business and the physical world.” (02:05)
  • It encompasses everything from inventory management, sourcing, movement, quality assurance, and distribution.
  • Quote: "To me, supply chain is just how things happen in the physical world." (01:36, Aaron Alpeter)
• Supply chain costs rival marketing:
  • Supply chain typically makes up half of a business's expenditures, second only to marketing. (03:03)
  • Understanding and controlling these costs is essential for business survival.

2. Cash Flow: The Hidden Killer of Businesses

• Profitability is non-negotiable:
  • “You have to be a profitable business from day one.” (04:17, Aaron)
  • The days of easy fundraising with just an idea are over; profitability and strong cash flow are now critical.
• Alternative ways to get cash:
  • Beyond equity, businesses can improve cash flow by negotiating payment terms, such as getting paid by customers before paying suppliers. (04:38)
  • Quote: "Most businesses don't die because the product is bad...They run out of cash and that's what kills the business." (03:14, Aaron)

3. Negotiating Supplier Terms & Building Trust

• Start small, build credibility:
  • Businesses are unlikely to receive favorable terms at the outset. Building trust through timely payments and reliability is essential. (05:03)
• Clear agreements matter:
  • Contracts should be clear and comprehensive, not just verbal agreements or email chains. (06:15)
• When to renegotiate:
  • Only when there is a change to your business, the supplier’s business, or the broader market (e.g., COVID, tariffs). (06:36)
• The value of relationship capital:
  • Foster relationships before you need something; visit suppliers, know their interests, and humanize the connection. (08:10)
  • Quote: “The time to strengthen your relationship is not when you need something.” (08:14, Aaron)

4. Marketing & Supply Chain: The Critical Link

• Integrated planning:
  • Businesses need robust links between marketing and supply chain to anticipate inventory and cash needs. (10:23)
• Marketing expenses impact supply chain:
  • Promotional campaigns, product sampling, influencers—these require prepared product and budget allocation, not just wishful thinking. (11:05)
  • A trial-sized sample can optimize marketing costs and logistic efficiency. (11:41)

5. Operational Pitfalls & Scaling Realities

• Biggest supply chain mistakes:
  • Overbuilding or underbuilding supply chains for current business stage—businesses must fit their supply chains to their true development phase. (12:26)
  • Quote: “If you're fighting a fire today, you made a mistake six months ago.” (13:43, Aaron)
• Be ready to pivot:
  • The right suppliers or systems today may not suit tomorrow’s business; flexibility is crucial, especially in uncertain times (e.g., tariffs, climate, geopolitical risks). (13:56)
• Supply chain operationalizes unpredictability:
  • The focus isn’t predicting the future, but “operationalizing” unpredictability, having contingency plans, and identifying trade-offs for leadership decisions. (17:58–18:57)

6. Packaging, Logistics, and the Unseen Costs

• Packaging as a common blind spot:
  • Entrepreneurs often forget that packaging influences not just branding, but costs of storage, shipping, and logistics complexity. (15:29–16:43)
• Optimize for shipping realities:
  • Logistics (weight, volume, stacking, freight efficiency) must be considered early to avoid expensive mistakes. (16:43–17:53)

7. Vetting and Trusting Suppliers—Cross-Cultural Essentials

• Nothing beats sweat equity:
  • Visit suppliers, understand cultures, and invest in relationships to build mutual trust and avoid miscommunications. (22:18)
• Respect the expertise of partners:
  • Factories are often selective and “the customer is not always right”; trust is mutual and must be earned. (22:51–23:12)
• Working with third-party consultants:
  • Trusted intermediaries can help translate business goals into workable plans and bridge cultural or technical gaps. (23:12–23:44)

8. Budgeting Conservatively for Reality

• Budget conservatively, plan for the unknown:
  • Always build in contingency and overestimate costs, so positive surprises work in your favor. (23:58–24:13)
• Map every step, ensure no gaps:
  • Walk through the end-to-end process required to deliver your product, from raw material to customer’s hands, identifying needed relationships at every step. (24:10–25:12)
• Leverage trusted networks:
  • Either develop the expertise and relationships yourself or tap into the networks of credible advisors. (25:35)

Notable Quotes & Memorable Moments

• Supply Chain’s Role in the Physical World:
  • "Supply chain is just how things happen in the physical world." (Aaron Alpeter, 01:36)
• On Cash Flow:
  • "Most businesses don't die because the product is bad or the founders aren't very good. They run out of cash and that's what kills the business." (Aaron Alpeter, 03:14)
• Negotiating Supplier Terms:
  • "You want to be the type of customer that...they’re always like, you know what, we have to protect this person because we just love working with them." (Aaron Alpeter, 07:26)
• Building Relationships:
  • "The time to strengthen your relationship is not when you need something." (Aaron Alpeter, 08:14)
• Importance of Right-Sizing Your Supply Chain:
  • "If you're fighting a fire today, you made a mistake six months ago." (Aaron Alpeter, 13:43)
• On Predicting vs. Managing Change:
  • "The job isn't to predict the future, it's really to operationalize this unpredictability." (Aaron Alpeter, 17:58)
• Supply Chain as the Bridge from Ambition to Reality:
  • "It is literally the intersection between the ambitions and the dreams of the business and the physical world." (Aaron Alpeter, 17:42)
• Budgeting for Success:
  • "If you think you need a million bucks, go raise two or two and a half. Right. You kind of need that." (Aaron Alpeter, 24:13)

Section Timestamps

• What is Supply Chain? 01:27–02:22
• Cash Flow & Profitability 03:03–04:56
• Negotiating with Suppliers 05:03–07:47
• Marketing Meets Supply Chain 08:38–11:41
• Scaling and Common Mistakes 12:26–13:56
• Planning for Uncertainty & the Art of Pivoting 13:56–14:54
• Packaging Logistics 15:29–17:53
• Trusting, Vetting, and Culture 21:40–23:44
• Budgeting Tips 23:58–25:35

Final Light-Hearted Moment

• Coffee Preferences:
  • Lara ends the show with her signature question, to which Aaron confesses, “I actually don't drink coffee. I'm more of a… I like coffee ice cream. We'll go with that.” (25:56)

This episode packed vital and actionable insights for founders, marketers, and operators alike—reinforcing supply chain’s central role in business health, growth, and adaptability. If you’re planning to launch, scale, or sustain a product business, this is essential listening (and, yes—supply chain can be pretty sexy).