A study found that approximately 88 percent of retailers see dropship as inevitable to long-term success. Pexels

It's undeniable that retail habits of consumers is changing. DiCentral, a B2Bi managed services provider, recently partnered with the Center for Supply Chain Research at Lehigh University to survey over 180 global retail and manufacturing decision-makers and identify how evolving consumer buying behaviors are driving this dramatic shift in the retail landscape. The transformational supply chain challenges retailers and manufacturers are facing today indicate a new reality for retail.

The first of its kind study titled, "Supply Chain Collaboration in Transformative Vertical Industries: Implications of Omnichannel and Dropshipping," examines the motivations, challenges, benefits, and supply chain implications of the dropshipping model through which retailers ship orders directly from vendor warehouses, thereby reducing excess inventory and warehousing costs.

The study found that approximately 88 percent of retailers see dropship as inevitable to long-term success. According to 87 percent of those retailers surveyed also experienced an increase in revenue as a result of dropshipping. Customer service also benefitted from dropship, with 84 percent of retailers noting improvements to customer service after adopting the dropshipping fulfillment model.

From the manufacturers' perspective, dropshipping can significantly improve relationships with retailers as reported by 71 percent of manufacturing respondents. As many as 66 percent of manufacturers also experienced an increase in revenue after implementation of a dropship order fulfillment capability.

Challenges for both retail and manufacturing respondents point to systems limitations as being a primary obstacle to deploying an enterprise dropship program. According to the study, 40 percent of manufacturers acknowledged system limitations as being a challenge. Retailers responded similarly, with 32 percent identifying systems (ERP, EDI, WMS, etc.) as a hindrance.

While retailers and manufacturers face similar obstacles in streamlining supply chains, the benefits to both remain clear. As businesses look to maximize revenue and enhance customer service, dropshipping is a proven advantage to achieving both goals. Decision-makers in retail and manufacturing would be prudent to explore dropshipping as a means of achieving the ROI and improved quality of customer service.

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Steve Scala is executive vice president of corporate development at Houston-based DiCentral, a growing SaaS company.

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CultureMap Emails are Awesome

Profile: Houston founder helps create a new way of making clean electricity

leading energy

When Cindy Taff was a vice president at the giant oil and gas company Shell in Houston, her middle schooler Brianna would sometimes look over her shoulder as she worked from home.

“Why are you still working in oil and gas?” her daughter asked more than once. “Is there a future in it? Why aren’t you moving into something clean?”

The words weighed on Taff.

“As a parent you want to give direction, and was I giving her the right direction?” she recalled.

At Shell, Taff was in charge of drilling wells and bringing them into production. She worked on oil and natural gas that's called unconventional in the industry, because the oil or natural gas is difficult to get out of the ground — it doesn't naturally gush out like in movies. It's a term often used for oily shale rock. Taff was somewhat unconventional for the industry, too. Her coworkers used to tease her for driving an efficient hybrid.

“You’re not helping oil and gas prices by driving a Prius," they'd say.

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EDITOR’S NOTE: This is part of an occasional series of personal stories from the energy transition — the change away from a fossil-fuel based world that largely causes climate change.

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Taff wanted Shell to pursue the energy that comes from the Earth's natural heat — geothermal. Her team looked into it, but Shell never greenlit any of those projects, saying it would take too much time to recoup the investment.

When Brianna went to college, she was passionate about energy too, but she wanted to work on renewables. After her sophomore year, in the summer of 2020, she got an internship at a geothermal company — one that in fact had just been launched by Taff's former colleagues at Shell — Sage Geosystems in Houston.

Now it was Taff looking over her daughter's shoulder and asking question as she worked from home during the pandemic.

And Sage executives were talking to Brianna, too. “We could use your mom here," they said. "Can you get her to come work for us?” Brianna recalled recently.

That's how Cindy Taff left her 36-year career at Shell to become chief operating officer at Sage.

“I didn't understand why Shell wasn't pursuing it,” she said about applying the company's drilling expertise to heat energy. "Then I got this great opportunity to pivot from oil and gas and work with these guys that I have the utmost respect for. And also, I wanted to make my daughter proud, quite frankly.”

Brianna Byrd, now 24, is the operations engineer and spokesperson at the company. She's glad her mother, now CEO, left oil and gas.

“Of course I’m biased, she’s my mom, but I don’t think Sage would be where it is without her,” she said.

The United States is a world leader in electricity made from geothermal energy, but this kind of electricity still accounts for less than half a percent of the nation’s total large-scale generation, according to the U.S. Energy Information Administration. In 2023, most geothermal electricity came from California, Nevada, Utah, Hawaii, Oregon, Idaho and New Mexico, where there are reservoirs of steam, or very hot water, close to the surface.

The Energy Department estimates this next generation of geothermal projects, like what Sage is doing, could provide some 90 gigawatts by 2050 — enough to power 65 million homes or more. That hinges on private investment, and on companies like Sage introducing this form of energy to regions where, until now, it’s been thought to be impossible.

How it works

Sage has two main technologies: The first makes electricity out of heat. The company drills wells and fractures hot, dry rock. Then electric pumps push water into those fractures, heating it up, and the hot water gets jettisoned to the surface where it spins a turbine.

But a funny thing happened during testing in Starr County, Texas. In late 2021, the team realized much of their technology could also be used to store energy.

If that works, it could be a big deal. Currently, to store energy at large scale, the United States is adding batteries, mostly lithium-ion type, to solar and wind projects, so they can charge up and send electricity back to the electric grid when the sun is not shining or the wind is not blowing. These batteries typically supply four hours maximum power.

Sage envisions some of its technology placed at solar and wind farms, too. When electricity demand is low, they'll use extra energy from a solar or wind farm to run electric pumps, pumping water into the underground fractures, leaving it there until demand for electricity increases — storing the energy beneath the Earth's surface for hours, days or even weeks.

It's a novel way to use the technology, said Silviu Livescu, lead author on a report looking at the future of geothermal in Texas. Livescu knows Taff and has followed the company's progress.

“It’s the right moment for companies like Sage with a purpose, with a mission and with the technology to show that geothermal indeed is the energy source we need to address climate change,” said Livescu, who co-founded a different geothermal startup in Austin, Texas.

These days, Taff is often out in front, talking with politicians and policymakers about the potential of geothermal. She attended the United Nations COP28 climate talks last year to share her vision for this kind of energy.

Sage has raised $30 million so far and is growing.

It's building a small (3-megawatt), geothermal energy storage system at San Miguel Electric Cooperative, Inc., south of San Antonio this year. It's working with U.S. military facilities in Texas that see geothermal as a way to power their bases securely. Sage recently announced partnerships for heating communities in Bucharest, Romania; clean electricity from geothermal for Meta's data centers, and energy storage and geothermal projects in California.

The company is final-testing a proprietary turbine to more efficiently convert heat to electricity.

Because of her oil and gas background, Taff said she knows geothermal will only be adopted widely if the cost comes down. The mantra at Sage is: It's going to be clean and it's going to be cheap. She's excited to be working in a field she feels is on the cusp of playing a big role in cleaning and stabilizing the electrical grid.

“I’ve never looked back,” she said. “I love what I’m doing and I think it’s going to be transformative.”

Houston bio-based materials founder rebrands, evolves future-focused sustainability startup

HOUSTON INNOVATORS PODCAST EPISODE 255

At first, Zimri T. Hinshaw just wanted to design a sustainable, vegan jacket inspired by bikers he saw in Tokyo. Now, he's running a bio-based materials company with two product lines and is ready to disrupt the fashion and automotive industries.

Hinshaw founded Rheom Materials (née Bucha Bio) in 2020, but a lot has changed since then. He moved the company from New York to Houston, built out a facility in Houston's East End Maker Hub, and rebranded to reflect the company's newest phase and extended product lines, deriving from dozens of different ingredients, including algae, seaweed, corn, other fruits and vegetables, and more.

"As a company, we pivoted our technology from growing kombucha sheets to grinding up bacteria nanocellulose from kombucha into our products and then we moved away from that entirely," Hinshaw says on the Houston Innovators Podcast. "Today, we're designing different materials that are more sustainable, and the inputs are varied."

Now, in addition to Rheom's leather-like alternative, Shorai, the company has a plastic-like material, Benree, that's 100 percent bio based.

"The scope of what we were doing — both on what raw materials we were using and what we were creating just kept expanding and growing," Hinshaw says.

With that major evolution past just kombucha-based textiles, it was time for a new name, ideated by the company's technical team. "Rheom" is the combination of "rheology" — the study of how polymers flow — and "form."

Rheom has also built a state-of-the-art chemicals testing lab at its new facility after moving into it early last year.

"We've got a ton of capabilities now — and we've been growing those since the beginning," Hinshaw says. "Now we have all this testing equipment — things that pull materials apart, things that test the flexibility of materials."

Next up, Rheom, which is backed by Houston-based New Climate Ventures, among other VCs, will raise a series A funding round to continue supporting its growth.

10+ can't-miss Houston business and innovation events for October

WHERE TO BE

From networking meetups to pitch competitions, October is lined with opportunities for Houston innovators.

Here's a roundup of events you won't want to miss out on so mark your calendars and register accordingly.

Note: This post might be updated to add more events.

Additionally, mark your calendars for November 14 for the annual Houston Innovation Awards.

October 3 — Texas Venture Fest: Houston Edition

More than 10 cities simultaneously host this statewide phenomenon, as Texans rally to see innovation flourish. Hear from leaders in impact investing, climate tech startups, and sports tech entrepreneurs. This year's event registration asks for your favorite investor, startup, and community leader for the Texan's Choice Awards— the "People's Choice Awards" for statewide innovation.

This event is Thursday, October 3, from 8:30 am to 8 pm at the Niels Esperson Building. Click here to register.

October 4 — 15th Annual Yatsu Day Symposium

This year’s symposium, “Reviving Hope: AI Innovations and Emerging Technologies in Stroke Recovery,” will unpack life-changing research into emerging stroke recovery technology and methods. This comprehensive program will explore critical topics such as artificial intelligence in healthcare, cognitive recovery post-stroke, stroke rehabilitation and recovery, tele-health, pediatric stroke recovery, and more.

This event is Friday, October 4, from 8 am to 4 pm at the Cooley Center. Click here to register.

October 9 — Future of Global Energy Conference

This premier event convenes industry leaders, policymakers, innovators, and academics to explore Houston's pivotal role in addressing the dual challenge of meeting growing energy demands while reducing carbon emissions. This conference delves into Houston's unique position to lead in this effort, driving innovation, collaboration, and investment towards a sustainable, low-carbon future.

This event is Wednesday, October 9, from 8:15 am to 5:30 pm at Hilton Americas. Click here to register.

October 9 — Houston Methodist & Ion Digital Innovation Reverse Pitch Info Session

Innovators, engineers, students, start-ups, developers, experts, and community members alike can take part in Houston Methodist and Ion's first reverse pitch event. During this session, attendees will hear from Houston Methodist leaders about the problem statement, goals & objectives, program guidelines and timeframe to develop a unique digital solution to help advance the healthcare industry into the future.

This event is Wednesday, October 9, from 4 to 6 pm at the Ion. Click here to register.

October 10 — Fall 2024 TIEEP Energy Forum

The mission of the Texas Industrial Energy Efficiency Program (TIEEP) is to provide thought-leadership, sharing ideas, technologies, opportunities and timely information to Texas industries on ever-improving energy intensity, reduced environmental impact, resilience, and enhanced social and economic development. In this forum experts and attendees will discuss how the cost of decarbonization can be lowered, by examining both technical and financial strategies, as the industrial sector strives to meet increasingly aggressive goals.

This event is Thursday, October 10, from 4 to 6 pm at University of St. Thomas Center for Science and Health Professionals. Click here to register.

October 14-15 — IMPACT 2024: Cognite’s AI and Industrial Data Conference

This global data and AI conference will bring together digital-first innovators and leaders across energy, manufacturing, and power and renewables, from around the world and will showcase real-world success stories, case studies, and state-of-the-art digital transformation strategies. The focus will be on the latest industrial Data and AI trends, hands-on practitioner sessions, proven success sharing, and peer networking.

This event begins Sunday, October 13, from 6 to 10 pm at Norris Conference Center. Click here to register and for the full schedule of events.

October 16 — Houston Methodist Clinician Speaker Series - Dr. Jonathan Rogg

Head to the Houston Methodist Tech Hub at Ion for another clinician speaker series presentation by Dr. Jonathan Rogg.

Jonathan Rogg, MD, MBA is an Emergency Physician, Vice President and Incoming Chief Quality Officer at Houston Methodist Hospital. Dr. Rogg will speak about emergency room operations from a clinical and administrative lens and the innovations being implemented in this unique hospital setting.

This event is Wednesday, October 16, from 4:45 to 6 pm at the Ion. Click here to register.

October 19 — Energy Day

Energy Day is Houston’s largest annual free family festival showcasing science, technology, engineering, and mathematics (STEM). Energy Day has nearly 70 interactive demonstrations and exhibits that teach students and their families about the various forms of energy through STEM fields, along with efficiency, conservation, and other related STEM industries.

This event is Saturday, October 19, from 11 am to 3 pm at Sam Houston Park. Click here to register.

October 22 — The Greentown Labs Climatetech Summit 2024

Greentown Labs invites you, your colleagues, and all the climate champions in your life to step into their incubators for a day of hands-on exploration with our 200+ startups and their climatetech solutions; keynotes and sessions featuring leaders across climatetech, finance, policy, and equity; and networking with key climate-action trailblazers.

This event is Tuesday, October 22, from 8 am to 7 pm at Greentown Labs. Click here to register.

October 23 — TiE Women Houston Showcase

TiE Global is a nonprofit venture devoted to entrepreneurs in all industries, at all stages, from incubation, throughout the entrepreneurial lifecycle. Meet this years TiE Women Houston finalists, program co-leads, and community partners. There will be panels, pitches, awards, and networking.

This event is Wednesday, October 23, from 4 to 6 pm at the Ion. Click here to register.

October 28 — October Odyssey: Start Ups in Space

The final event in TMC's October Odyssey speaker series will feature innovative discussions at the intersection of space and healthcare. Hear from the visionary founders of TMC Innovation startups as they share how space has played a pivotal role in their entrepreneurial journeys. Moderated by Emily Reiser, Ph.D., Strategy and New Ventures at TMC, this engaging session will explore how these startups are revolutionizing healthcare on Earth and pushing the boundaries of what’s possible in space.

This event is Monday, October 28, from 9 to 10:30 am at TMC Helix Park. Click here to register.