Latest / Omni Talk Retail / Confessions of Supply Chain Executives | The Brutal Truth About Retail Out-of-Stocks

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Confessions of Supply Chain Executives | The Brutal Truth About Retail Out-of-Stocks · Omni Talk Retail

0:00
Picture
0:01
this.
0:02
Customer
0:02
walks
0:02
into
0:03
your
0:03
store
0:03
ready
0:04
to
0:04
buy.
0:05
They've
0:05
driven
0:05
across
0:06
town,
0:06
they've
0:07
got
0:07
their
0:07
wallet
0:08
out,
0:08
but
0:08
they're
0:09
standing
0:09
in
0:09
front
0:09
of
0:09
an
0:10
empty
0:10
shelf
0:10
where
0:11
your
0:11
product
0:12
should
0:12
be.
0:13
And
0:13
just
0:13
like
0:13
that,
0:14
you've
0:15
lost
0:15
the
0:15
sale,
0:15
damaged
0:16
your
0:16
brand,
0:16
and
0:17
possibly
0:17
lost
0:18
the
0:18
customer
0:18
forever.
0:20
According
0:20
to
0:20
recent
0:21
studies,
0:21
the
0:21
average
0:21
retailer
0:22
has
0:22
an
0:22
8
0:22
to
0:23
10%
0:23
out
0:23
of
0:24
stock
0:24
rate
0:24
at
0:24
any
0:24
given
0:25
time.
0:26
But
0:26
here's
0:26
what
0:26
most
0:27
won't
0:27
admit.
0:28
Despite
0:28
billions
0:29
spent
0:29
on
0:29
technology,
0:30
many
0:30
still
0:31
don't
0:31
understand
0:31
why
0:32
their
0:32
shelves
0:33
are
0:33
empty.
0:34
Today,
0:34
we're
0:35
going
0:35
to
0:35
attempt
0:35
to
0:35
change
0:36
that.
0:37
Welcome
0:37
all
0:37
of
0:38
you
0:38
to
0:38
Confessions
0:38
of
0:39
a
0:39
Supply
0:39
Chain
0:39
Executive,
0:40
the
0:40
podcast
0:40
where
0:41
we
0:41
get
0:41
brutally
0:41
honest
0:42
about
0:42
the
0:43
challenges,
0:43
failures
0:44
and
0:44
also
0:44
celebrate
0:45
the
0:45
victories
0:45
in
0:46
retail
0:46
supply
0:47
chains.
0:47
I'm
0:48
your
0:48
host,
0:48
Chris
0:48
Waltman.
0:49
Today's
0:49
episode
0:49
is
0:50
different.
0:51
Today
0:51
we're
0:51
going
0:52
to
0:52
do
0:52
a
0:52
deep
0:52
fish
0:53
forensic
0:53
dive
0:53
into
0:54
one
0:54
specific
0:55
problem
0:55
out
0:56
of
0:56
stocks.
0:57
We're
0:57
going
0:57
to
0:58
walk
0:58
through
0:58
every
0:59
single
0:59
breakdown
1:00
point,
1:00
from
1:00
forecasting
1:01
failures
1:02
to
1:02
the
1:02
infamous
1:03
backroom
1:04
problem
1:05
and
1:05
give
1:05
you
1:05
a
1:05
framework
1:06
to
1:06
diagnose
1:07
what's
1:07
really
1:07
happening
1:08
inside
1:09
of
1:09
your
1:09
operation.
1:10
My
1:11
guests
1:11
for
1:11
this
1:11
inaugural
1:12
episode
1:12
are
1:13
Richard
1:13
Stewart.
1:14
Richard
1:15
is
1:15
the
1:15
Executive
1:15
Vice
1:16
President
1:16
of
1:16
Product
1:17
and
1:17
industry
1:17
strategy
1:17
at
1:18
Infios,
1:19
a
1:19
role
1:19
to
1:19
which
1:19
he
1:19
brings
1:20
a
1:20
powerful
1:20
combination
1:21
of
1:21
25
1:22
years
1:22
of
1:22
industry
1:22
experience
1:23
and
1:23
strategic
1:24
vision
1:24
to
1:25
his
1:25
role
1:26
shaping
1:26
the
1:26
company's
1:27
product
1:27
and
1:27
industry
1:28
strategy
1:28
to
1:29
drive
1:29
growth
1:29
and
1:29
performance.
1:31
And
1:31
of
1:31
course,
1:31
longtime
1:32
friend
1:32
of
1:33
Omnitalk
1:33
and
1:33
one
1:33
of
1:34
my
1:34
personal
1:34
go
1:35
tos
1:35
for
1:36
all
1:36
those
1:36
listening
1:36
out
1:37
there
1:37
for
1:37
all
1:38
things
1:38
supply
1:38
chain,
1:39
Eugene
1:39
Amagood.
1:41
Eugene
1:41
is
1:41
the
1:41
Chief
1:42
Innovation
1:42
Officer
1:42
at
1:43
Infios
1:43
and
1:43
he
1:43
is
1:43
also
1:44
a
1:44
20
1:44
year
1:44
veteran
1:45
of
1:45
order
1:45
management
1:45
and
1:46
supply
1:46
chain
1:46
execution
1:47
systems.
1:48
Eugene
1:49
has
1:49
literally
1:49
seen
1:49
every
1:50
way
1:51
inventory
1:51
can
1:51
fail
1:51
to
1:52
reach
1:52
a
1:52
customer's
1:52
hand.
1:53
And
1:53
for
1:53
that
1:54
reason,
1:54
he
1:55
also
1:55
serves
1:55
as
1:55
a
1:55
trusted
1:56
advisor
1:56
to
1:56
leading
1:57
retailers
1:57
such
1:58
as
1:58
Walmart,
1:58
Target,
1:59
Staples
2:00
and
2:00
Best
2:00
Buy.
2:01
Just
2:01
a
2:01
few
2:01
of
2:01
the
2:01
biggest
2:02
names
2:02
out
2:02
there.
2:03
All
2:04
right,
2:04
gentlemen,
2:04
it's
2:04
great
2:04
to
2:05
have
2:05
you
2:05
here.
2:05
But
2:05
before
2:06
we
2:06
go
2:06
into
2:06
all
2:07
the
2:07
ways
2:07
things
2:08
can
2:08
go
2:08
wrong,
2:08
I
2:09
want
2:09
to
2:09
set
2:09
the
2:09
stage
2:10
today
2:10
with
2:10
a
2:11
big
2:11
picture
2:11
question.
2:12
In
2:13
your
2:13
two
2:13
decades,
2:14
both
2:14
of
2:14
you
2:14
have
2:15
working
2:15
with
2:15
retailers
2:16
on
2:16
order
2:16
management
2:16
and
2:17
supply
2:17
chain
2:17
execution.
2:19
My
2:19
question
2:19
is,
2:20
has
2:20
the
2:20
out
2:20
of
2:21
stock
2:21
problem
2:22
over
2:22
those
2:22
20
2:22
years
2:23
gotten
2:24
better,
2:25
worse
2:25
or
2:25
is
2:25
it
2:26
just
2:26
different?
2:27
Richard,
2:28
what
2:28
do
2:28
you
2:28
think?
2:29
Chris,
2:30
Two
2:30
decades,
2:30
You're
2:31
making
2:31
us
2:31
sound
2:31
old
2:31
right
2:32
off
2:32
the
2:32
bat.
2:32
But
2:33
you
2:33
know,
2:34
it's
2:34
a
2:34
great
2:34
question.
2:34
I
2:35
think.
2:36
I
2:36
really
2:36
wish
2:36
I
2:36
could
2:37
take
2:37
today's
2:37
technology
2:38
and
2:38
capability
2:39
hit
2:39
rewind
2:39
20
2:40
years
2:40
because
2:40
I
2:40
would
2:40
be
2:41
the
2:41
smartest
2:41
person
2:41
in
2:42
the
2:42
room.
2:42
And
2:42
I
2:42
could
2:42
solve
2:42
all
2:43
the
2:43
appstock
2:43
problems,
2:45
but
2:45
the
2:45
reality
2:45
is
2:45
there's
2:46
really
2:46
only
2:46
one
2:46
answer
2:46
and
2:46
that
2:47
it's.
2:47
It's
2:47
different.
2:48
Right.
2:48
Because
2:48
the
2:49
consumers
2:49
have
2:49
changed,
2:50
markets
2:50
have
2:50
changed,
2:51
technology
2:51
has
2:52
changed,
2:53
hit
2:53
rewind.
2:54
Like
2:54
most
2:55
of
2:55
the
2:55
out
2:55
of
2:55
stock
2:56
problems
2:56
back
2:56
then
2:56
were
2:57
like
2:57
true
2:58
supply
2:58
constraints.
2:59
Right.
2:59
Or
2:59
bad
2:59
replenishment
3:00
process.
3:01
Today,
3:02
I
3:02
would
3:02
say
3:02
it's,
3:03
it's
3:03
less
3:03
about
3:04
if
3:04
the
3:04
product
3:05
exists
3:05
and
3:06
more
3:06
about
3:06
whether
3:06
the
3:07
data
3:07
exists.
3:08
So
3:08
I
3:08
mean
3:08
we've
3:09
taken
3:09
and
3:09
connected
3:10
so
3:10
many
3:10
different
3:10
systems
3:11
that
3:11
we're
3:12
starting
3:12
to
3:12
see
3:12
the
3:12
weak
3:12
points
3:13
now
3:13
exist
3:13
at
3:13
the
3:13
seams.
3:14
It's
3:15
between
3:15
planning
3:15
and
3:15
order
3:16
management
3:16
and
3:16
store
3:17
execution.
3:18
So
3:18
it's
3:19
really
3:19
not,
3:19
it's
3:19
different
3:20
that
3:20
it's
3:20
not
3:20
really
3:20
a
3:20
problem
3:20
in
3:21
the
3:21
warehouse
3:21
anymore.
3:22
It's
3:22
more
3:22
of
3:22
a
3:22
problem
3:22
with
3:23
the
3:23
workflow
3:23
itself.
3:23
Just
3:24
so
3:24
I
3:24
make
3:24
sure
3:24
I
3:24
understand
3:25
too.
3:25
So
3:25
the
3:25
overall
3:26
scale
3:26
of
3:26
the
3:26
out
3:26
of
3:27
stock
3:27
problem
3:27
in
3:27
terms
3:27
of
3:28
its
3:28
impact
3:28
to.
3:29
I
3:29
guess
3:30
the
3:30
best
3:30
way
3:30
to
3:30
say
3:30
it
3:30
would
3:30
be
3:30
revenue
3:31
at
3:31
the
3:31
end
3:31
of
3:31
the
3:31
day
3:31
or
3:32
bottom
3:32
line
3:33
profit
3:33
is
3:33
still
3:33
the
3:33
same.
3:34
It's
3:34
just
3:34
coming
3:34
from
3:35
different
3:35
places
3:35
or
3:36
different
3:36
angles.
3:36
Yeah,
3:37
it's.
3:38
And
3:38
to
3:38
some
3:38
extent
3:38
it's,
3:39
yeah,
3:39
it's
3:39
much
3:40
harder
3:40
to
3:40
solve
3:40
now
3:40
because
3:41
there's
3:41
so
3:41
many
3:41
more
3:41
moving.
3:42
Oh,
3:42
wow.
3:43
Interesting,
3:43
interesting.
3:43
So
3:43
we've
3:44
almost
3:44
created
3:45
our
3:45
own
3:45
complicated
3:45
issues.
3:46
All
3:47
right
3:47
then.
3:47
So
3:47
my
3:47
next
3:47
question
3:48
that
3:48
is
3:48
let's
3:49
say,
3:49
let's
3:49
say
3:49
a
3:50
CEO
3:50
or
3:50
a
3:51
supply
3:51
chain
3:51
executive
3:51
comes
3:52
to
3:52
you
3:52
and
3:53
says,
3:53
you
3:53
know,
3:54
we've
3:54
got
3:54
an
3:54
out
3:54
of
3:54
stock
3:55
problem,
3:55
which
3:55
I'm
3:56
sure
3:56
they
3:56
do.
3:56
They
3:56
come
3:57
to
3:57
you.
3:57
That's
3:57
probably,
3:57
and
3:58
that's
3:58
probably
3:58
one
3:58
thing
3:59
you
3:59
both
3:59
hear
3:59
quite
4:00
often
4:00
what
4:01
Richard
4:01
is
4:01
the
4:01
first
4:01
thing
4:02
that
4:02
you
4:02
tell
4:03
them
4:03
is
4:03
there
4:03
usually
4:03
one
4:04
culprit
4:04
that
4:05
you
4:05
try
4:05
to
4:05
zero
4:05
in
4:05
in
4:06
or
4:06
I'm
4:06
kind
4:06
of
4:07
getting
4:07
the
4:07
impression
4:07
you
4:07
think
4:07
it's
4:08
a,
4:08
you
4:08
know,
4:08
it's
4:08
kind
4:08
of
4:09
death
4:09
by
4:09
a
4:09
thousand
4:09
cuts.
4:10
But,
4:10
you
4:10
know,
4:10
what's
4:11
your
4:11
take?
4:11
Yeah,
4:11
I
4:12
mean
4:12
the
4:12
truth
4:12
is
4:12
most,
4:13
Most
4:13
leaders,
4:13
most
4:13
CEOs
4:14
are
4:14
going
4:14
to
4:14
hope
4:14
that
4:14
it's
4:14
one
4:15
culprit,
4:16
but
4:16
it
4:17
never
4:17
is.
4:17
Right.
4:18
It's.
4:19
For
4:19
me,
4:19
I
4:19
would
4:20
typically
4:20
try
4:20
to
4:20
turn
4:21
around
4:21
and
4:21
challenge
4:21
them
4:21
a
4:21
little
4:22
bit
4:22
that
4:22
it's
4:22
not,
4:22
they
4:23
don't
4:23
have
4:23
an
4:23
out
4:23
of
4:23
stock
4:24
problem.
4:24
They
4:24
have
4:24
a
4:24
connectivity
4:25
problem.
4:25
Right.
4:26
They
4:26
have,
4:27
most
4:27
of
4:27
the
4:28
time
4:28
the
4:28
inventory
4:29
exists
4:29
somewhere
4:30
in
4:30
their
4:30
network.
4:31
It's
4:31
just
4:31
not
4:31
where
4:31
it
4:32
needs
4:32
to
4:32
be
4:32
when
4:32
they
4:32
need
4:33
it
4:33
to
4:33
be
4:33
there.
4:33
And
4:34
it's.
4:34
If
4:34
you
4:34
trace
4:35
that
4:35
back,
4:35
you
4:35
know,
4:36
there's
4:36
where's
4:37
the
4:37
disconnect?
4:37
Was
4:38
it
4:38
the
4:38
systems?
4:39
Was
4:39
it
4:39
like
4:40
incentives,
4:41
human
4:41
nature?
4:41
Was
4:42
it
4:42
data?
4:42
Was
4:42
it
4:43
timing?
4:44
And
4:44
there's
4:44
a
4:44
tendency
4:45
to
4:45
kind
4:45
of
4:45
play
4:45
whack
4:45
a
4:45
mole,
4:46
so
4:46
you
4:46
chase
4:46
each
4:46
one
4:47
down,
4:47
right?
4:47
But
4:47
the
4:47
truth
4:48
is
4:48
you
4:48
gotta,
4:48
you
4:48
gotta
4:49
look
4:49
at
4:49
it.
4:49
You
4:49
gotta
4:49
look
4:49
for
4:49
those
4:50
patterns
4:51
and
4:51
start
4:52
to
4:52
identify
4:53
them
4:53
and
4:53
then
4:53
bring
4:53
your
4:54
systems
4:54
along.
4:54
Because
4:55
ideally
4:55
you're
4:55
teaching
4:56
your
4:56
systems
4:56
how
4:57
to
4:57
do
4:57
what
4:57
you're
4:57
doing
4:57
as
4:57
a
4:58
problem
4:58
solver
4:58
so
4:59
that
4:59
they
4:59
can
4:59
stand,
5:00
then
5:00
start
5:00
to
5:00
self
5:01
correct.
5:01
So
5:01
Eugene,
5:01
I'm
5:02
curious,
5:02
what
5:02
would
5:02
you
5:02
add
5:02
there?
5:03
And
5:03
I'm
5:03
curious,
5:03
is
5:03
your
5:04
impression
5:04
of
5:04
the
5:05
average
5:05
supply
5:05
chain
5:06
executive
5:06
or
5:06
CEO
5:07
asking
5:07
you
5:07
to
5:07
fix
5:07
their
5:07
supply
5:08
chain
5:08
issues
5:09
the
5:09
same
5:09
or
5:09
their
5:09
out
5:10
of
5:10
stock
5:10
problems
5:10
the
5:10
same?
5:11
Yeah,
5:11
I
5:11
mean,
5:11
as
5:12
sad
5:12
as
5:12
it
5:12
is,
5:13
very
5:13
few
5:13
things
5:14
changed.
5:15
Literally.
5:15
Just
5:15
talked
5:16
to
5:16
a
5:16
CIO
5:17
last
5:17
week
5:18
and
5:18
they
5:18
said,
5:18
well,
5:19
accuracy
5:19
improved
5:20
from
5:20
7%
5:21
to
5:21
3%,
5:22
so
5:22
50%
5:22
improvement,
5:23
but
5:23
it's
5:23
still
5:23
a
5:23
3%.
5:24
And
5:24
then
5:24
if
5:24
I
5:24
remember
5:25
back
5:25
in
5:26
early
5:26
2000s,
5:27
everyone
5:28
still
5:28
talk
5:28
about,
5:28
hey,
5:29
I
5:29
have
5:29
single
5:30
digit
5:30
percentages
5:31
issues,
5:31
right
5:31
on
5:32
out
5:32
of
5:32
stock
5:32
inventory
5:33
being
5:33
inaccurate,
5:34
et
5:34
cetera.
5:34
Now,
5:35
just
5:35
like
5:35
Richard
5:35
said,
5:36
complexity
5:36
increased
5:37
exponentially,
5:38
right?
5:39
So
5:39
fundamentals
5:40
remain
5:41
the
5:41
same,
5:41
right?
5:41
Whether
5:42
it's
5:42
connectivity,
5:43
whether
5:43
it's
5:45
right.
5:45
Once
5:45
you
5:46
get
5:46
into
5:46
the
5:46
store,
5:46
you
5:47
get
5:47
right
5:47
walking
5:48
customers
5:48
versus
5:49
digital
5:49
demand.
5:49
So
5:50
the
5:50
whole
5:50
omnichannel
5:51
becomes
5:52
more
5:52
and
5:52
more
5:52
interesting
5:52
and
5:53
more
5:53
complicated.
5:54
Now,
5:55
right?
5:56
Yesterday
5:56
I
5:56
was
5:56
watching
5:56
buying
5:57
something
5:58
from
5:59
TV
5:59
now,
5:59
right
6:00
as
6:00
possible.
6:00
So
6:01
how
6:01
do
6:01
you
6:01
kind
6:01
of
6:01
surface
6:02
that
6:02
inventory,
6:03
especially
6:03
if
6:03
you're
6:04
filling
6:04
out
6:04
of
6:04
store
6:04
and
6:05
making
6:05
it
6:05
all
6:05
kind
6:06
of
6:06
work
6:06
together.
6:07
So
6:07
just
6:07
more
6:08
complexity
6:08
but
6:09
similar
6:09
fundamental
6:09
problems.
6:10
So
6:10
what
6:10
I'm
6:10
hearing
6:11
from
6:11
you
6:11
both
6:11
then
6:11
to
6:11
start
6:11
us
6:12
off
6:12
for
6:12
the
6:12
audience
6:12
is
6:13
really
6:13
that
6:14
managing
6:15
out
6:15
of
6:15
stocks,
6:15
it's
6:15
complex,
6:16
it's
6:16
multifaceted,
6:17
it
6:18
requires
6:18
a
6:18
whole
6:18
nother
6:19
level
6:19
of
6:19
connectivity
6:20
which
6:20
the
6:21
past
6:21
20
6:21
years
6:21
of
6:22
retail's
6:22
evolution
6:22
has
6:23
made
6:23
more
6:23
complex
6:24
just
6:24
because
6:24
of
6:24
all
6:25
the
6:25
different
6:25
touchpoints
6:26
that
6:26
we
6:26
now
6:26
have
6:26
available
6:27
to
6:27
us
6:27
as
6:28
consumers.
6:28
Okay,
6:29
so
6:29
to,
6:30
so
6:30
to
6:30
understand
6:30
that
6:31
then
6:31
now
6:31
I
6:31
want
6:31
to
6:32
really
6:32
click
6:32
into
6:32
it
6:32
and
6:33
I
6:33
want
6:33
to
6:33
try
6:33
to
6:33
identify
6:35
every
6:35
single
6:36
place
6:37
in
6:37
the
6:37
shopper
6:38
journey
6:39
that
6:39
an
6:39
out
6:39
of
6:40
stock
6:40
situation
6:40
can
6:41
arise,
6:41
or
6:41
where
6:41
the
6:41
systems
6:42
can
6:42
fail
6:43
or
6:43
the
6:43
connectivity
6:44
can
6:44
break
6:44
down.
6:44
And
6:44
to
6:45
start,
6:45
I
6:45
want
6:46
to
6:46
start
6:46
first
6:46
with
6:47
when
6:47
the
6:48
product
6:48
enters
6:49
the
6:49
supply
6:49
chain.
6:49
Someone
6:50
has
6:50
to
6:50
decide
6:51
to
6:51
buy
6:51
it.
6:51
Going
6:51
back
6:51
to
6:52
my
6:52
merchandising
6:52
days,
6:53
someone
6:53
has
6:54
to
6:54
decide
6:54
where
6:54
to
6:54
buy
6:55
it.
6:55
And
6:55
that's
6:55
where
6:55
demand
6:56
forecasting
6:56
things
6:57
like
6:57
promotional
6:57
planning
6:58
and
6:58
the
6:58
purchasing
6:59
Decisions
6:59
really
7:00
start
7:00
to
7:00
happen.
7:01
So,
7:02
Richard,
7:02
walk
7:02
us
7:02
through
7:03
the
7:04
forecasting
7:04
and
7:05
demand
7:05
planning
7:06
failures
7:07
that
7:07
hit
7:08
execution
7:08
systems
7:09
and
7:09
also
7:09
set
7:09
retailers
7:10
up
7:10
for
7:10
out
7:11
of
7:11
stocks
7:11
before
7:11
a
7:12
single
7:12
order
7:12
is
7:13
even
7:13
placed.
7:14
It's
7:14
quite
7:14
the
7:14
journey
7:14
going
7:15
on
7:15
here,
7:15
Chris.
7:15
All
7:15
right,
7:16
we're
7:16
going
7:16
into
7:16
it,
7:16
man.
7:17
We're
7:17
taking
7:17
a
7:17
long
7:18
journey
7:18
together
7:18
today.
7:19
Solve
7:19
the
7:19
world's
7:20
problems
7:20
today.
7:20
I
7:20
mean,
7:21
if
7:21
I,
7:22
I
7:22
mean
7:22
if
7:22
you
7:22
go
7:22
all
7:23
the
7:23
way
7:23
upstream,
7:23
like
7:23
I'd
7:23
say
7:24
the
7:24
real
7:24
failure
7:24
is
7:26
anytime
7:27
we
7:27
ever
7:27
looked
7:28
at
7:28
the
7:28
forecast
7:29
as
7:29
like
7:29
a
7:29
fixed
7:30
truth,
7:30
right?
7:31
Like,
7:31
I
7:31
think
7:32
we
7:32
got
7:32
to
7:32
recognize
7:33
that,
7:33
especially
7:34
in
7:34
today's
7:35
market,
7:35
like
7:35
it
7:36
is
7:36
a
7:36
living,
7:36
breathing
7:37
thing.
7:37
So
7:39
if
7:39
you
7:39
look
7:39
at
7:39
like
7:40
the
7:40
industry
7:40
leaders,
7:40
they're
7:41
using
7:42
everything
7:42
real
7:43
time.
7:43
Like
7:43
they're
7:44
watching
7:44
the
7:44
orders,
7:44
they're
7:45
watching
7:45
the
7:45
click
7:45
streams,
7:46
they're
7:46
watching
7:46
social
7:47
sentiment,
7:47
the
7:47
influencers,
7:48
right?
7:48
They're
7:48
continually
7:49
adjusting
7:50
before
7:50
execution
7:51
ever
7:52
gets
7:52
a
7:52
chance
7:52
to
7:52
even
7:52
get
7:52
their
7:53
hands
7:53
on,
7:53
right
7:53
before
7:53
that
7:54
first
7:54
order
7:54
comes
7:55
in.
7:55
Because
7:56
if
7:56
you
7:56
don't
7:57
have
7:57
that,
7:57
you're
7:57
not
7:57
really
7:57
forecasting
7:58
demand.
7:58
You're
7:59
kind
7:59
of
7:59
forecasting
7:59
yesterday's
8:00
news.
8:01
Going
8:01
back
8:01
to
8:02
what
8:02
we
8:02
said
8:02
at
8:02
the
8:02
outset
8:02
too,
8:03
like
8:03
some,
8:03
a
8:03
good
8:04
friend
8:04
of
8:04
mine
8:04
said
8:04
that
8:04
the
8:04
difference
8:05
between
8:05
retail
8:05
of
8:06
yesteryear
8:06
and
8:06
retail
8:06
of
8:07
today
8:07
is
8:08
that
8:08
retail
8:08
of
8:08
yesteryear
8:09
always
8:09
planned
8:10
for
8:10
everything
8:10
they
8:10
thought
8:10
was
8:11
going
8:11
to
8:11
be
8:11
right.
8:12
And
8:12
the
8:12
people
8:12
that
8:13
get
8:13
retail
8:13
of
8:13
the
8:13
future
8:14
are
8:14
understanding
8:15
that
8:15
you
8:15
can't
8:15
plan
8:16
for
8:16
that
8:16
and
8:16
you
8:16
have
8:16
to
8:16
plan
8:17
for
8:17
everything
8:17
that
8:17
you
8:17
actually
8:18
don't
8:18
know.
8:18
And
8:18
that's
8:19
where
8:19
the,
8:19
the
8:19
new
8:20
systems
8:20
and
8:20
I
8:20
come
8:21
into
8:21
play.
8:21
Eugene,
8:22
how
8:23
do
8:23
you
8:23
think
8:23
about
8:24
that?
8:24
Like
8:24
that
8:24
dichotomy,
8:25
like,
8:25
how
8:26
would
8:26
you
8:26
sum
8:26
that
8:26
up?
8:27
And,
8:27
and
8:27
you
8:28
know,
8:28
is
8:28
AI
8:29
and
8:29
machine
8:29
learning,
8:29
are
8:30
they
8:30
helping
8:30
to
8:30
actually
8:30
improve
8:31
demand
8:31
forecasting
8:32
at
8:32
the
8:32
end
8:32
of
8:32
the
8:32
day?
8:32
Absolutely.
8:33
And
8:33
there
8:33
are
8:34
right
8:34
tools
8:34
for
8:35
these
8:35
problems,
8:35
right?
8:36
Again,
8:36
everyone
8:36
talks
8:36
about
8:37
Gen
8:37
AI,
8:37
but
8:37
I
8:37
kind
8:38
of
8:38
love
8:38
demand
8:38
forecasting
8:39
because
8:40
some
8:40
of
8:40
the
8:40
machine
8:41
learning
8:41
is
8:41
very,
8:42
very
8:42
effective
8:43
for
8:43
demand
8:43
forecasting,
8:44
right?
8:45
To
8:45
figure
8:45
out
8:46
what's
8:46
the
8:46
kind
8:46
of,
8:47
what's
8:47
the
8:48
most
8:48
optimal
8:48
way
8:48
to
8:49
fulfill
8:49
an
8:49
order,
8:49
out
8:50
of
8:50
where?
8:51
And
8:51
then
8:51
most
8:51
importantly,
8:52
from
8:52
execution
8:53
systems
8:53
to
8:54
start
8:54
feeding
8:55
back
8:55
to
8:55
the
8:55
forecasting
8:56
systems
8:56
to
8:56
say,
8:56
hey,
8:57
there
8:57
was
8:57
an
8:57
out
8:58
of
8:58
stock
8:58
situation
8:58
here.
8:59
Well,
9:00
do
9:00
you
9:00
replenish
9:00
the
9:01
location
9:01
that's
9:01
been
9:01
out
9:02
of
9:02
stock,
9:02
or
9:02
do
9:02
you
9:02
replenish
9:03
the
9:03
location
9:03
that
9:04
should
9:04
have
9:04
fulfilled
9:05
that
9:05
order
9:05
to
9:05
begin
9:06
with?
9:06
So
9:07
there
9:07
are
9:07
all
9:08
these
9:08
kind
9:08
of
9:08
complexities.
9:09
And
9:10
again,
9:10
based
9:10
on
9:10
the
9:11
disruptions,
9:11
machine
9:12
learning
9:13
was
9:13
very
9:13
effective
9:14
and
9:14
many
9:14
retailers
9:15
actually
9:15
do
9:15
use
9:15
it
9:16
now.
9:16
And
9:17
Definitely
9:18
able
9:18
to
9:18
make
9:18
good,
9:19
good
9:19
progress
9:19
on
9:20
their
9:20
out
9:20
of
9:20
stock
9:20
situation.
9:21
And
9:21
Eugene,
9:21
how
9:22
long
9:22
has
9:22
that
9:22
been
9:22
in
9:22
practice?
9:23
Like
9:23
the
9:23
machine
9:24
learning
9:24
side
9:24
of
9:24
the
9:24
forecasting
9:25
and
9:25
demand
9:25
planning
9:26
side
9:26
like
9:26
that?
9:26
That's
9:26
not
9:26
new,
9:27
right?
9:27
I
9:27
mean,
9:28
I
9:28
remember
9:28
doing
9:29
some
9:29
of
9:29
this
9:29
work
9:29
in
9:30
2014,
9:31
some
9:32
of
9:32
the
9:32
work
9:32
a
9:32
little
9:32
bit
9:33
earlier.
9:33
But
9:33
like
9:34
any
9:34
new
9:34
tech,
9:35
right.
9:35
It
9:35
takes
9:35
time
9:35
to
9:36
adopt.
9:36
It
9:36
takes
9:37
time
9:37
to
9:37
kind
9:37
of
9:38
roll
9:38
out
9:39
data.
9:40
Data
9:40
is
9:40
key,
9:40
right?
9:41
How
9:41
do
9:41
I
9:42
know?
9:42
And
9:43
the
9:44
connectivity,
9:44
right.
9:45
For
9:45
me
9:45
to
9:46
know
9:46
proper
9:46
demand
9:47
forecasting,
9:47
I
9:47
need
9:48
to
9:48
get
9:48
point
9:48
of
9:48
sale
9:49
feeds.
9:49
If
9:49
I
9:50
don't
9:50
have
9:50
the
9:50
data
9:50
near
9:51
real
9:51
time,
9:51
it
9:52
gets
9:52
harder
9:52
and
9:53
harder,
9:53
right.
9:53
It's
9:54
not
9:54
very
9:54
accurate.
9:55
So
9:55
there's
9:56
a
9:56
combination
9:56
of
9:56
data
9:57
connectivity.
9:57
If
9:58
you
9:58
get
9:58
this,
9:58
all
9:59
right,
9:59
then
9:59
machine
9:59
learning
10:00
becomes
10:00
very
10:00
effective.
10:01
What
10:01
happens
10:02
in
10:02
reality
10:02
is
10:03
you
10:03
may
10:03
kind
10:03
of
10:04
come
10:04
up
10:04
with
10:04
this
10:04
cool
10:05
algorithm
10:05
or
10:05
use
10:05
this
10:06
cool
10:06
product,
10:07
but
10:07
again,
10:07
if
10:07
you
10:07
don't
10:08
have
10:08
these
10:08
other
10:08
steps,
10:09
again,
10:09
you
10:09
don't
10:09
get
10:10
all
10:10
the
10:10
benefits
10:10
out
10:10
of
10:10
it.
10:11
Right.
10:11
And
10:11
that's
10:11
what
10:11
I
10:11
want
10:12
to
10:12
ask
10:12
you
10:12
too,
10:12
because
10:12
you
10:12
know,
10:13
in
10:13
my
10:13
experience,
10:13
you
10:14
know,
10:14
as
10:14
much
10:14
as,
10:15
as
10:15
investments
10:16
were
10:16
being
10:16
put
10:17
in
10:17
behind
10:17
the
10:17
scenes,
10:18
algorithmic,
10:19
algorithmically,
10:20
to
10:20
the
10:20
degree
10:21
that
10:21
you're
10:21
talking
10:21
about
10:21
to
10:22
improve
10:22
the
10:22
forecasting,
10:23
when
10:24
you
10:24
came
10:24
right
10:24
down
10:24
to
10:24
it
10:24
too,
10:25
there
10:25
were
10:25
still
10:25
a
10:25
lot
10:25
of
10:25
buyers
10:26
and
10:26
planners
10:26
that
10:27
were
10:27
using
10:27
spreadsheets
10:28
to
10:28
determine
10:29
how
10:29
they
10:29
wanted
10:30
to
10:30
place
10:30
their
10:30
orders
10:31
and
10:32
to
10:32
what
10:32
degree
10:32
that
10:33
they
10:33
wanted
10:33
to
10:33
buy
10:33
certain
10:34
products.
10:34
So
10:35
how
10:35
does
10:35
the
10:35
use
10:35
of
10:36
spreadsheets
10:36
muck
10:37
with
10:37
things?
10:37
And
10:37
I'm
10:37
curious,
10:37
you
10:38
mentioned
10:38
that
10:38
people
10:38
are
10:38
using.
10:39
More
10:39
people
10:39
are
10:39
using
10:40
machine
10:40
learning,
10:40
but
10:40
what
10:41
percentage
10:41
of
10:42
retailers
10:42
are
10:42
still
10:43
using
10:43
spreadsheets
10:43
and
10:44
potentially
10:44
mocking
10:44
everything
10:45
up
10:45
versus,
10:45
you
10:46
know,
10:46
going
10:46
the
10:46
true
10:46
way
10:47
of,
10:47
you
10:47
know,
10:47
actual
10:47
demand
10:48
planning
10:48
with
10:48
true
10:49
machine
10:49
learning.
10:49
I
10:50
think
10:50
it
10:50
also
10:50
that
10:50
answer
10:51
depends
10:51
on
10:51
the
10:52
type
10:52
of
10:52
a
10:52
customer,
10:53
type
10:53
of
10:53
retailer.
10:54
Right.
10:54
From
10:54
our
10:54
perspective.
10:55
So
10:56
you
10:56
look
10:56
at
10:56
tier
10:56
one,
10:57
largest,
10:58
heaviest,
10:58
right.
10:58
There's
10:59
probably
10:59
a
10:59
lot
10:59
more
10:59
automation,
11:00
a
11:00
lot
11:00
more
11:01
machine
11:01
learning,
11:01
but
11:02
especially
11:03
kind
11:03
of
11:03
where
11:04
what
11:04
we
11:04
look
11:04
at
11:05
a
11:05
lot
11:05
is
11:06
this
11:06
whole
11:07
integrated
11:07
supply
11:07
chain
11:08
is
11:08
missing
11:08
at
11:09
the
11:09
next
11:09
year.
11:10
Right.
11:10
So
11:10
I
11:10
might
11:11
be
11:11
a,
11:11
you
11:11
know,
11:12
mid
11:12
tier
11:12
retailer
11:13
with
11:13
the,
11:14
you
11:14
know,
11:14
maybe
11:15
200
11:15
stores
11:16
shipping
11:16
out,
11:16
you
11:17
know,
11:17
with
11:17
digital,
11:18
multi
11:18
channel,
11:18
et
11:19
cetera.
11:19
I
11:19
think
11:20
very
11:20
high
11:20
percentage
11:21
is
11:21
still
11:21
doing
11:21
it
11:21
using
11:22
spreadsheets.
11:23
Right.
11:23
Like
11:23
that's
11:23
where
11:24
the
11:24
massive
11:24
opportunity
11:24
is.
11:25
Because
11:25
again,
11:26
for,
11:26
for
11:27
the
11:27
type
11:27
of
11:27
retailers,
11:28
because.
11:28
Right.
11:30
It's
11:30
still
11:31
a
11:32
lot
11:32
of
11:32
tape,
11:33
a
11:33
lot
11:33
of
11:34
connectivity
11:35
issues,
11:35
a
11:35
lot
11:35
of
11:36
kind
11:36
of
11:36
saying,
11:36
well,
11:36
I
11:37
don't
11:37
have
11:37
my
11:37
POS
11:38
is
11:38
completely
11:38
different.
11:38
I
11:39
just
11:39
opened
11:39
this
11:39
10
11:40
stores.
11:40
I
11:40
don't
11:40
have
11:40
the
11:41
feeds
11:41
coming
11:41
in
11:42
or
11:42
my,
11:43
you
11:43
know,
11:43
I'm
11:44
still
11:44
operating
11:44
based
11:44
on
11:44
a
11:44
spreadsheet.
11:45
So
11:45
there's,
11:45
I
11:46
think,
11:46
massive
11:46
opportunity
11:47
there.
11:47
Yeah,
11:48
it's
11:48
probably
11:48
still
11:48
faster
11:49
for
11:49
them
11:49
in
11:49
a
11:49
lot
11:49
of
11:49
ways
11:49
and
11:50
probably,
11:50
you
11:50
know,
11:50
less,
11:50
less
11:51
expensive
11:51
that
11:51
for
11:52
them
11:52
too.
11:52
You
11:53
know,
11:53
looking
11:53
at
11:53
the
11:53
way,
11:53
you
11:54
know,
11:54
things
11:54
have
11:54
always
11:54
been
11:54
done.
11:55
All
11:55
right,
11:56
all
11:56
right,
11:56
so
11:57
now
11:57
let's
11:58
make
11:58
a
11:58
big
11:58
assumption
11:59
then
11:59
based
11:59
on
11:59
that
11:59
discussion.
12:00
Let's
12:00
assume
12:01
for
12:01
the
12:01
sake
12:01
of
12:02
argument
12:02
that
12:02
at
12:02
the
12:03
next
12:03
point
12:03
in
12:03
the
12:03
process
12:03
that
12:04
we've
12:04
actually
12:04
ordered
12:04
all
12:05
the
12:05
product
12:05
in
12:05
the
12:05
right
12:06
way,
12:06
which
12:06
is
12:06
probably
12:07
a
12:07
big
12:07
assumption,
12:08
but
12:08
let's
12:08
just
12:08
go
12:08
with
12:09
it.
12:09
And
12:09
so
12:09
my
12:09
next
12:10
question
12:10
is
12:10
going
12:10
to
12:10
be,
12:11
you
12:11
know,
12:11
can
12:11
we
12:11
get
12:12
the
12:12
product
12:12
and
12:13
how
12:13
does
12:13
that
12:13
impact
12:13
things?
12:14
So,
12:14
Richard,
12:15
starting
12:15
upstream,
12:16
what
12:17
are
12:17
the
12:17
supplier
12:17
and
12:18
inbound
12:18
logistics
12:19
failures
12:20
that
12:20
can
12:20
lead
12:20
to
12:20
out
12:20
of
12:20
stocks?
12:21
Very
12:21
important
12:22
question,
12:22
Chris,
12:22
because
12:23
I
12:23
think
12:23
all
12:23
too
12:23
often
12:23
we
12:24
think,
12:24
especially
12:24
in
12:25
the
12:25
world
12:25
like
12:25
transportation,
12:25
everybody
12:26
focuses
12:26
on
12:27
the
12:28
outbound
12:28
leg.
12:29
Once
12:30
you
12:30
order
12:30
it,
12:30
how
12:30
do
12:30
I
12:30
ship
12:31
it
12:31
to
12:31
you,
12:31
how
12:31
do
12:31
I
12:31
ship
12:31
it
12:32
to
12:32
the
12:32
store
12:32
and
12:32
all
12:32
that.
12:32
And
12:33
I
12:33
think
12:33
we
12:33
often
12:34
overlook
12:34
that
12:34
probably
12:34
the
12:35
most
12:35
problematic
12:36
area
12:36
is
12:37
the
12:37
inbound
12:38
logistics
12:38
side
12:38
of
12:39
things,
12:39
really.
12:40
Okay.
12:41
I
12:41
mean,
12:42
I
12:42
get
12:42
a
12:42
chance
12:42
to
12:42
make
12:42
statistics
12:43
up
12:43
on
12:43
the
12:43
fly.
12:44
Right.
12:44
I
12:44
mean,
12:44
gut
12:45
feel,
12:45
I
12:45
would
12:45
say
12:46
a
12:46
quarter
12:46
of
12:46
the
12:47
time,
12:47
like
12:47
maybe
12:47
it's
12:48
a
12:48
supplier
12:48
failure,
12:49
but
12:49
the
12:49
vast
12:50
majority
12:50
of
12:50
the
12:50
time,
12:51
I
12:51
would
12:51
call
12:51
it
12:51
not
12:52
a
12:52
relationship
12:53
of
12:53
thing,
12:53
but
12:53
more
12:53
of
12:53
a
12:54
just
12:54
an
12:54
overall
12:54
coordination
12:55
failure.
12:55
Right.
12:55
Like,
12:56
to
12:56
what
12:57
you
12:57
were
12:57
just
12:57
talking
12:57
about
12:57
spreadsheets.
12:58
How
12:59
many
12:59
people
12:59
are
12:59
still
13:00
managing
13:00
their
13:01
inbound
13:02
with
13:03
email
13:03
threads
13:04
and
13:04
spreadsheets
13:05
and
13:06
attachments?
13:06
Right.
13:07
And
13:08
if
13:08
you're,
13:08
if
13:08
you're
13:08
managing
13:09
it
13:09
that
13:09
way,
13:09
you're
13:09
kind
13:10
of
13:10
setting
13:10
yourself
13:10
up
13:10
for
13:11
failure
13:11
because
13:11
you're
13:11
already
13:11
going
13:12
to
13:12
be
13:12
a
13:12
couple
13:12
of
13:12
days
13:12
behind
13:13
reality
13:15
if
13:15
you,
13:15
if
13:15
you
13:16
focus
13:16
just
13:16
in
13:16
maybe
13:17
on
13:17
the
13:17
transportation
13:18
side,
13:18
like,
13:18
I'll
13:18
go
13:18
with
13:19
the
13:19
assumption.
13:19
Let's
13:19
say
13:19
it's
13:20
on
13:20
the
13:20
truck,
13:20
it's
13:21
on
13:21
the
13:21
boat,
13:21
and
13:21
it's
13:21
on
13:21
its
13:21
way
13:22
in.
13:22
I
13:22
mean,
13:23
just
13:23
look
13:23
at
13:23
the
13:23
transportation
13:24
side
13:24
of,
13:25
you
13:25
know,
13:26
well,
13:26
what
13:26
if
13:26
the
13:27
appointment
13:27
gets
13:28
missed?
13:28
What
13:28
if
13:28
the
13:29
load
13:29
doesn't
13:30
happen?
13:30
What
13:30
if
13:30
it's
13:31
detention
13:31
you
13:31
didn't
13:31
plan
13:32
for?
13:32
Like,
13:33
that's,
13:34
for
13:34
me,
13:34
where
13:35
things
13:35
start
13:35
to
13:35
really
13:36
shine
13:37
is
13:37
like,
13:37
okay,
13:38
everything's
13:38
on
13:38
its
13:38
way.
13:39
I
13:39
know
13:40
it's
13:40
going
13:40
to
13:40
be
13:40
two
13:40
hours
13:40
late,
13:42
but
13:42
I'm
13:42
not
13:42
telling
13:43
anybody
13:43
upstream
13:45
that
13:45
it's
13:45
going
13:45
to
13:45
be
13:45
Two
13:46
hours
13:46
late.
13:46
So
13:46
I
13:46
can't
13:46
react
13:47
to
13:47
it,
13:47
even
13:47
though
13:47
I
13:47
know
13:47
there's
13:48
a
13:48
person
13:48
that's
13:48
got
13:48
an
13:49
email
13:49
that
13:49
said,
13:49
hey,
13:49
that's
13:50
okay,
13:50
we're
13:50
going
13:50
to
13:50
be
13:50
fine.
13:51
Did
13:51
you
13:51
turn
13:51
around
13:52
and
13:52
tell
13:52
the
13:52
doc
13:52
to
13:53
say,
13:53
hey,
13:54
move
13:54
your
13:54
labor
13:54
around?
13:55
Hey,
13:56
we're
13:56
not
13:56
going
13:56
to
13:57
make
13:57
the
13:57
cutoff
13:57
on
13:57
the
13:57
outbound
13:58
load.
13:58
Let's
13:58
divert
13:58
it
13:59
somewhere
13:59
else.
13:59
I
13:59
mean,
14:00
that's
14:00
really
14:00
where
14:01
I
14:01
would
14:02
say
14:02
it's
14:02
like
14:02
I
14:02
said,
14:03
it's
14:03
more
14:03
of
14:03
a
14:03
coordination
14:04
failure
14:04
than
14:04
it
14:04
is
14:05
the
14:05
supplier
14:05
just
14:06
simply
14:06
didn't
14:06
ship
14:06
it.
14:07
I
14:07
would
14:07
just
14:07
add
14:08
on
14:08
inbound.
14:08
One
14:08
of
14:08
my
14:09
favorites
14:09
out
14:09
of
14:09
stock
14:10
stories
14:11
is
14:11
always,
14:12
well,
14:12
warehouse
14:13
has
14:13
inventory
14:14
and
14:14
you're
14:15
missing
14:15
the
14:15
dates,
14:15
you're
14:16
missing
14:16
shipping
14:16
dates.
14:16
It's
14:17
not
14:17
there,
14:17
cannot
14:18
be
14:18
found.
14:18
What's
14:19
going
14:19
on?
14:19
You
14:19
take
14:19
a
14:20
look
14:20
at
14:20
it.
14:20
Oh,
14:20
it's
14:21
in
14:21
the
14:21
yard,
14:21
right?
14:22
So
14:23
it's
14:23
in
14:23
the
14:23
yard.
14:23
The
14:23
inventory
14:24
shows
14:24
up
14:24
as
14:25
in
14:25
the
14:25
warehouse.
14:26
You
14:26
try
14:26
to
14:26
send,
14:27
you
14:27
know,
14:27
to
14:28
WMS
14:29
system
14:29
saying,
14:29
hey,
14:30
pick
14:30
it
14:30
up
14:30
and
14:30
ship
14:31
it
14:31
today.
14:32
And
14:32
your
14:32
cutoff
14:32
is
14:33
this.
14:33
Right.
14:33
And
14:33
by
14:33
extension
14:34
we
14:34
talk
14:34
about
14:34
out
14:34
of
14:35
stock,
14:35
but
14:35
obviously
14:35
connectivity
14:36
there
14:36
is
14:37
expected
14:37
delivery
14:38
days,
14:38
like
14:38
as
14:38
a
14:38
customer,
14:39
when
14:39
can
14:39
I
14:39
get
14:40
it?
14:40
And
14:40
you
14:40
do
14:41
all
14:41
this
14:41
fancy
14:42
logic.
14:42
You
14:42
calculate
14:43
you
14:43
have
14:43
the
14:43
right
14:43
products,
14:44
you
14:44
know,
14:44
systems
14:45
in
14:45
place,
14:46
and
14:46
guess
14:46
what,
14:46
it's
14:47
actually
14:47
not
14:47
in
14:47
the
14:47
warehouse.
14:48
It's
14:48
still
14:48
in
14:48
the
14:48
yard.
14:48
And
14:49
it
14:49
takes
14:49
until
14:49
tomorrow
14:50
to
14:50
open
14:50
the
14:50
dock
14:51
and
14:51
receive
14:51
this
14:51
product.
14:53
I've
14:54
seen
14:54
this
14:54
like
14:54
15
14:55
years
14:55
ago.
14:56
Still
14:56
see
14:56
it
14:57
now
14:57
and
14:57
again
14:57
with
14:58
mid
14:58
tier
14:58
retailers,
14:59
it's
14:59
kind
15:00
of
15:00
very,
15:00
very
15:01
frequent.
15:02
So
15:02
if
15:02
the
15:02
first
15:02
thing
15:02
you
15:02
say,
15:03
like,
15:03
is
15:03
it
15:03
really
15:03
in
15:03
your
15:04
warehouse
15:04
or
15:04
is
15:04
it
15:04
maybe
15:05
in
15:05
your
15:05
yard
15:05
and
15:06
it
15:06
hadn't
15:06
been
15:06
received
15:06
yet.
15:07
Right.
15:07
So
15:08
those
15:08
still
15:08
happen
15:09
quite
15:09
often.
15:10
Yeah,
15:10
I
15:10
can
15:10
remember
15:11
that
15:11
from
15:11
my
15:11
days
15:11
at
15:11
the
15:12
Gap.
15:12
And
15:12
I
15:12
want
15:12
to
15:12
get
15:12
into
15:12
the
15:12
warehouse
15:13
side
15:13
of
15:13
it
15:13
too.
15:13
But
15:13
before
15:14
I
15:14
do
15:14
that,
15:14
Richard,
15:14
I
15:14
want
15:14
to
15:14
go
15:14
back
15:14
to
15:15
you
15:15
for
15:15
a
15:15
second
15:15
too.
15:15
So.
15:16
So
15:16
I'm
15:16
curious
15:16
and
15:17
hey,
15:17
if
15:18
you
15:18
got
15:18
to
15:18
make
15:18
up
15:18
another
15:18
statistic
15:19
off
15:19
the
15:19
fly,
15:20
go
15:20
ahead
15:20
here.
15:20
But
15:21
I'm
15:21
curious
15:21
because
15:21
you
15:21
mentioned
15:22
it
15:22
like
15:22
how
15:22
many
15:22
of
15:23
the,
15:23
the
15:24
issues
15:24
that
15:24
you
15:24
discuss
15:25
on
15:25
the
15:25
supplier
15:25
side
15:26
of
15:26
things
15:26
are
15:26
because
15:27
the
15:27
quote
15:27
unquote
15:28
supplier
15:28
didn't
15:28
deliver.
15:29
As,
15:29
you
15:29
know,
15:30
we
15:30
always
15:30
used
15:30
to
15:30
say
15:30
as
15:31
merchants
15:31
or
15:32
you
15:32
know,
15:32
are
15:33
more
15:33
the
15:33
result
15:33
of
15:33
we
15:34
didn't
15:34
manage
15:34
the
15:34
relationship
15:35
properly.
15:36
Is
15:36
it
15:37
more
15:37
the
15:37
latter?
15:37
That
15:37
was
15:37
what
15:38
I
15:38
was
15:38
picking
15:38
up
15:38
from
15:38
what
15:39
you
15:39
were
15:39
saying.
15:40
The
15:40
big
15:41
thing
15:41
there
15:41
is
15:41
that
15:42
I
15:43
don't
15:43
know.
15:43
So
15:43
Much
15:43
that
15:43
it's
15:44
the
15:44
relationship,
15:45
it's
15:45
the
15:45
blocking,
15:46
attack,
15:46
healing.
15:47
It's
15:47
the
15:47
tactical
15:47
element.
15:48
Like
15:48
you
15:48
think
15:48
relationship.
15:49
I
15:49
think
15:49
kind
15:49
of
15:49
more
15:49
on
15:49
the
15:50
personal
15:50
nature
15:50
of
15:50
it.
15:51
For
15:51
me,
15:52
it
15:52
really
15:52
does
15:52
come
15:52
back
15:53
to.
15:53
It's
15:53
the
15:53
tactical
15:54
coordination,
15:55
Supplier
15:56
Transparency
15:56
of
15:56
what's
15:57
happening.
15:57
Yeah.
15:57
Supplier
15:58
says,
15:58
I've
15:58
got.
15:58
It's
15:59
ready
15:59
to
15:59
go.
16:00
And
16:00
then
16:01
any
16:01
delays
16:01
that
16:02
happen
16:02
between
16:02
then
16:03
and
16:03
you
16:04
hitting
16:04
the
16:04
go
16:05
button,
16:05
like,
16:06
that's
16:06
really
16:06
lack
16:06
of
16:07
coordination.
16:07
If
16:07
that
16:08
gets
16:08
lost
16:08
into
16:08
an
16:08
email,
16:09
it's
16:09
a
16:09
spreadsheet.
16:10
It's
16:10
a
16:10
bill
16:10
of
16:10
lading
16:10
that
16:11
you're
16:11
not
16:11
quite
16:11
filing
16:12
through.
16:12
That's
16:13
right.
16:13
I
16:13
think
16:13
it
16:13
kind
16:14
of
16:14
comes
16:14
back
16:14
to,
16:14
like,
16:15
the.
16:15
I
16:15
think
16:15
it's
16:15
less
16:16
relationship
16:16
and
16:16
more
16:16
the
16:16
coordination
16:17
side.
16:17
Got
16:18
it.
16:18
Right.
16:18
Got
16:18
it.
16:18
How
16:18
you're
16:19
all
16:19
staying
16:19
in
16:19
the
16:19
same
16:19
sheet
16:19
of
16:20
music.
16:20
That
16:20
makes
16:20
sense.
16:20
Which
16:20
I
16:21
think
16:21
is
16:21
also
16:21
inherently
16:22
why
16:22
my
16:22
mind
16:22
went
16:22
that
16:23
direction
16:23
and
16:23
asking
16:24
that
16:24
question.
16:25
Okay,
16:25
so,
16:25
Richard,
16:26
again,
16:26
so.
16:26
So,
16:27
because
16:27
Eugene
16:28
teased
16:28
it.
16:28
So,
16:28
like,
16:29
warehouse,
16:29
like
16:30
what.
16:30
What
16:31
are
16:31
the
16:31
execution
16:31
failures
16:32
at
16:32
the
16:32
warehouse
16:33
level
16:33
that
16:33
lead
16:33
to
16:33
out
16:34
of
16:34
stocks,
16:34
you
16:34
know,
16:35
even
16:35
when
16:35
the
16:35
inventory
16:36
is
16:36
actually
16:36
there,
16:37
as
16:37
Eugene
16:37
was
16:38
saying.
16:38
So
16:38
I
16:38
grew
16:38
up
16:38
in
16:38
the
16:39
four
16:39
walls
16:39
of
16:39
a
16:39
warehouse.
16:40
And
16:40
so
16:40
Eugene's
16:40
favorite
16:41
story
16:41
is
16:41
in
16:41
the
16:41
yard.
16:42
If
16:42
you
16:42
fast
16:42
forward,
16:43
like
16:43
my
16:43
favorite
16:43
story
16:44
has
16:44
been,
16:44
we
16:44
would
16:45
show
16:45
up
16:45
to
16:45
design
16:45
a
16:45
new
16:46
WMS
16:46
project.
16:47
Right.
16:47
You're
16:48
talking
16:48
to
16:48
the
16:48
customer,
16:48
and
16:49
you're
16:49
always
16:49
talking
16:49
to
16:49
the
16:49
WMS
16:50
folks.
16:50
Right.
16:51
They're
16:51
measured
16:51
on
16:52
order,
16:53
gets
16:53
dropped
16:53
into
16:53
my
16:53
warehouse,
16:54
hit
16:54
the
16:55
stopwatch.
16:56
How
16:56
long
16:56
does
16:56
it
16:56
take
16:57
you
16:57
to
16:57
get
16:57
it
16:57
out
16:58
the
16:58
door?
16:58
Right.
16:58
That
16:59
is
16:59
how
16:59
I'm
16:59
measured.
17:00
So
17:01
I
17:01
would
17:01
always
17:01
ask,
17:01
because
17:02
we
17:02
have
17:02
the
17:02
ability,
17:02
like,
17:03
do
17:03
you
17:03
want
17:03
me
17:03
to
17:03
post
17:03
the
17:03
inventory
17:05
when
17:05
it's
17:06
received
17:06
pallet
17:07
by
17:07
pallet
17:07
or
17:08
case
17:08
by
17:08
case,
17:09
or
17:09
do
17:09
you
17:09
want
17:09
to
17:09
wait
17:10
until
17:10
the
17:10
whole
17:10
thing's
17:10
there
17:11
and
17:11
then
17:11
hit
17:11
the
17:12
button
17:12
99
17:13
times?
17:13
If
17:13
you
17:14
ask
17:14
the
17:14
warehouse
17:14
person,
17:14
they
17:15
would
17:15
say
17:15
the
17:15
latter,
17:16
and
17:16
they
17:16
would
17:16
even
17:16
try
17:17
to
17:17
push
17:17
it
17:17
to
17:17
say,
17:17
can
17:17
you
17:18
make
17:18
it
17:18
so
17:18
it
17:18
doesn't
17:19
tell
17:19
the
17:19
ERP
17:19
until
17:19
it
17:20
actually
17:20
gets
17:20
to
17:20
the
17:20
pick
17:20
face.
17:21
Because
17:21
they
17:21
were
17:21
trying
17:21
to
17:22
buy
17:22
themselves
17:22
as
17:23
much
17:23
time
17:23
as
17:23
possible
17:24
to
17:24
beat
17:24
their
17:24
sla.
17:25
Right.
17:25
And
17:26
that's
17:26
the.
17:26
For
17:27
me,
17:27
that's
17:27
always
17:27
the
17:28
funny
17:28
one,
17:28
is
17:28
the
17:29
inventory.
17:29
It
17:30
is
17:30
physically
17:31
there.
17:31
It's
17:32
just
17:32
kind
17:32
of
17:32
digitally
17:33
invisible.
17:34
Right.
17:35
And
17:35
that's.
17:35
That's
17:36
the
17:36
truth.
17:36
I
17:36
mean,
17:36
if
17:36
you
17:37
think
17:37
about
17:37
the
17:37
warehouse
17:37
and
17:38
how
17:38
does
17:38
it
17:38
affect
17:39
out
17:39
of
17:39
stocks,
17:40
it's
17:40
not
17:40
posting
17:41
to
17:41
the
17:41
system.
17:41
It's.
17:42
It's
17:42
sitting
17:43
in
17:43
the
17:43
Wrong
17:43
zone
17:44
because
17:44
somebody
17:44
put
17:44
it
17:44
there.
17:45
Or
17:45
it's
17:45
been
17:45
allocated
17:45
to
17:46
an
17:46
order
17:46
that
17:46
is
17:46
now
17:47
hung
17:47
up
17:47
in
17:47
a
17:47
resolution.
17:48
You
17:48
can't
17:48
free
17:49
it
17:49
up
17:49
to
17:49
let
17:49
it
17:50
go
17:50
to
17:50
other
17:50
areas.
17:51
Those
17:52
are
17:52
the
17:52
kind
17:52
of
17:52
things,
17:52
the
17:52
small
17:53
lags,
17:53
the
17:53
delays,
17:54
the
17:54
processes
17:54
that
17:55
really
17:55
kind
17:55
of
17:55
snowball
17:56
into
17:56
what
17:57
eventually
17:57
could
17:57
become
17:58
that
17:58
story
17:58
level
17:58
Stockholm.
17:59
And
18:00
it
18:00
sounds
18:00
like
18:00
both
18:00
of
18:01
you
18:01
are
18:01
mentioning
18:02
what
18:03
some
18:03
would
18:03
call
18:04
phantom
18:04
inventory,
18:05
right?
18:05
You're
18:06
creating
18:06
a
18:06
situation
18:06
where
18:06
there's
18:07
phantom
18:07
inventory,
18:08
where
18:08
the
18:08
systems
18:08
thinks
18:09
the
18:09
inventory
18:09
is
18:09
there
18:09
and
18:10
it's
18:10
not.
18:11
And
18:11
so
18:11
that's
18:12
one
18:12
issue.
18:12
And
18:12
then,
18:12
Eugene,
18:13
I'm
18:13
curious
18:13
too,
18:14
if
18:14
you
18:14
could
18:14
talk
18:14
on
18:15
the
18:15
impact
18:15
of
18:15
phantom
18:16
inventory.
18:16
But
18:16
then
18:17
also,
18:19
how
18:20
does
18:20
the
18:20
issues
18:20
at
18:20
the
18:21
warehouse,
18:21
particularly
18:21
on
18:22
E
18:22
commerce,
18:22
come
18:22
into
18:23
play
18:23
when
18:23
you
18:23
have
18:23
to
18:23
start
18:23
thinking
18:24
about
18:24
prioritization
18:25
of
18:25
items
18:26
for
18:26
one
18:26
channel
18:27
over
18:27
another?
18:28
Again,
18:28
the
18:28
complexity
18:29
before
18:29
used
18:30
to
18:30
be,
18:30
well,
18:30
I'm
18:31
doing
18:31
B2B
18:32
only,
18:32
or
18:32
if
18:32
I'm
18:32
doing
18:33
retail.
18:33
And
18:33
now
18:33
you
18:33
have
18:34
so
18:34
many
18:34
right
18:35
out
18:35
there
18:36
who
18:36
kind
18:36
of
18:36
saying,
18:36
well,
18:37
I
18:37
might
18:37
actually
18:37
sell,
18:37
right,
18:38
as
18:38
a
18:38
B2B
18:39
channel
18:39
as
18:39
well
18:40
as
18:40
B2C.
18:40
So
18:41
I
18:41
have
18:41
store
18:42
demand,
18:42
I
18:42
have
18:44
wholesale
18:45
demand,
18:45
I
18:45
have
18:46
digital
18:46
demand.
18:47
And
18:47
how
18:47
do
18:47
I
18:47
prioritize
18:48
all
18:48
of
18:48
that?
18:49
How
18:49
do
18:49
I
18:49
get
18:49
visibility?
18:50
How
18:50
do
18:50
I
18:51
plan?
18:52
And
18:52
the
18:52
old
18:52
days,
18:53
the
18:53
favorite
18:53
one
18:54
was
18:54
inventory
18:54
segmentation,
18:55
which
18:55
was.
18:56
I
18:56
always
18:56
hated
18:57
that
18:57
answer.
18:57
It
18:57
was
18:58
the
18:58
simplest
18:58
answer,
18:59
right?
18:59
Inventory
19:00
segmentation
19:00
to
19:00
a
19:01
point.
19:01
I'm
19:01
picking
19:01
really
19:01
from
19:02
different
19:02
places.
19:02
It's
19:03
three
19:03
different
19:03
locations
19:04
right?
19:04
Now,
19:05
again,
19:05
because
19:05
of
19:05
complexity,
19:06
cost,
19:06
et
19:06
cetera,
19:07
it's
19:07
almost
19:07
impossible.
19:08
So
19:09
you
19:09
do
19:09
need
19:09
to
19:09
have
19:09
the
19:10
right
19:10
systems
19:10
in
19:10
place
19:11
to
19:11
be
19:11
able
19:11
to
19:11
say
19:11
like,
19:12
Well,
19:12
I
19:12
have
19:12
100
19:13
units.
19:13
How
19:13
do
19:13
I
19:14
sell
19:14
it
19:14
to
19:15
maybe
19:15
to
19:16
Amazon,
19:16
to
19:17
Walmart,
19:17
to.
19:18
On
19:18
my
19:18
own
19:19
website
19:19
and
19:19
maybe
19:20
some
19:20
allocate
19:21
to
19:21
a
19:21
TikTok
19:22
demand
19:23
that
19:23
will
19:24
spike
19:24
potentially,
19:24
right?
19:25
So
19:26
the
19:27
prioritization
19:27
becomes
19:28
important,
19:28
right?
19:29
And
19:29
how
19:29
do
19:29
you
19:29
not
19:29
disappoint
19:30
the
19:30
customer?
19:30
Right?
19:30
And
19:31
then
19:31
you
19:31
have,
19:31
you
19:31
know,
19:32
a
19:32
customer
19:32
just
19:32
comes
19:33
on
19:33
the
19:33
website,
19:34
place
19:34
an
19:34
order
19:34
for
19:35
a
19:35
single
19:35
unit.
19:36
You
19:36
have
19:36
to
19:36
take
19:36
into
19:37
consideration
19:37
all
19:38
of
19:38
these
19:39
different
19:39
channels,
19:40
different
19:40
demands.
19:41
And
19:41
again,
19:42
that's
19:42
where
19:42
I
19:42
think
19:42
machine
19:43
learning
19:43
comes
19:43
into
19:44
play
19:44
quite
19:44
a
19:44
bit,
19:44
right?
19:45
Because
19:45
if
19:45
I
19:45
can
19:45
start,
19:46
start
19:46
forecasting,
19:46
it
19:47
kind
19:47
of
19:47
gets.
19:49
Gets
19:50
a
19:50
little
19:50
bit
19:50
simpler.
19:52
The
19:52
other
19:52
thing
19:52
is,
19:52
and
19:53
we
19:53
haven't
19:53
touched
19:53
too
19:53
much
19:54
about
19:54
it,
19:54
right?
19:55
This
19:55
whole
19:55
phantom
19:55
inventory
19:56
from
19:56
store,
19:57
that's
19:58
a
19:58
different
19:58
nightmare
19:58
altogether.
19:59
Because
20:00
guess
20:00
what?
20:00
At
20:00
least
20:01
in
20:01
the
20:01
warehouse,
20:01
accuracy
20:02
is
20:02
somewhat
20:03
decent
20:03
in
20:03
the
20:03
store,
20:04
right?
20:05
Oh
20:05
boy.
20:06
Like
20:06
that's
20:07
right.
20:07
You
20:08
walk
20:08
in
20:08
During
20:08
Christmas
20:09
times
20:09
into
20:09
some
20:10
store
20:10
that
20:10
does
20:11
not
20:11
look
20:11
pretty
20:12
and
20:12
now
20:13
kind
20:13
of
20:13
able
20:14
to
20:14
surface
20:14
this
20:15
inventory
20:15
to
20:15
digital
20:16
to
20:16
becomes
20:17
different
20:17
level
20:18
of
20:18
complexity.
20:19
Yeah,
20:19
and
20:19
Eugene,
20:20
explain
20:20
that
20:20
too.
20:21
I
20:21
mean
20:21
because
20:21
you
20:22
know,
20:22
folks
20:23
like
20:23
you
20:23
and
20:23
I,
20:23
but
20:24
maybe
20:24
not
20:24
all
20:24
of
20:24
our
20:24
listeners
20:25
understand
20:25
that.
20:25
Why
20:26
is
20:26
so
20:26
A
20:26
couple
20:27
questions.
20:27
Why
20:27
is
20:27
inventory
20:28
accuracy
20:28
generally
20:29
so
20:29
much
20:29
better
20:29
in
20:30
a
20:30
warehouse
20:30
than
20:30
in
20:30
a
20:30
store?
20:31
And
20:32
what,
20:32
what
20:33
ultimately
20:33
causes.
20:34
Second
20:34
question.
20:34
What
20:34
ultimately
20:35
causes
20:35
phantom
20:36
inventory
20:36
at
20:36
the
20:37
store
20:37
level
20:37
too?
20:38
So
20:38
store
20:39
the
20:39
biggest
20:40
problem,
20:40
and
20:40
I
20:40
mean
20:41
everyone
20:41
talks
20:41
about
20:42
fraud,
20:42
fraud
20:42
prevention,
20:43
et
20:43
cetera.
20:43
But
20:43
to
20:43
me
20:44
that's
20:44
probably
20:44
not
20:44
even
20:45
by
20:45
far
20:45
the
20:45
biggest
20:46
problem.
20:46
The
20:46
biggest
20:46
problem
20:47
is
20:48
actually
20:48
coupled
20:49
one
20:49
is
20:49
again
20:49
system
20:50
connectivity.
20:51
You'll
20:51
be
20:52
surprised
20:52
how
20:52
many
20:52
point
20:53
of
20:53
sale
20:53
systems
20:54
have
20:54
one
20:54
version
20:55
of
20:55
inventory.
20:55
Right?
20:56
And
20:56
you
20:57
might
20:57
be
20:57
selling,
20:57
right?
20:58
Starting
20:58
the
20:59
most
20:59
basic
20:59
example,
21:00
right?
21:00
Customer
21:01
just
21:01
walks
21:01
into
21:01
the
21:01
store,
21:02
buys
21:02
this
21:03
single
21:03
item,
21:03
walks
21:04
out
21:04
of
21:04
the
21:04
store,
21:05
right.
21:05
So
21:05
point
21:05
of
21:05
sale
21:06
process
21:06
that.
21:07
Well,
21:07
guess
21:07
what?
21:08
Your
21:08
digital
21:08
channel,
21:09
digital
21:09
demand
21:09
might
21:10
have
21:10
not
21:10
been
21:11
available.
21:11
Supply
21:12
might
21:12
have
21:12
not
21:12
been
21:12
updated
21:13
for
21:13
quite
21:14
some
21:14
time,
21:14
maybe
21:15
15
21:15
minutes.
21:15
So
21:15
during
21:16
this
21:16
15
21:16
minutes,
21:16
you're
21:17
ordering
21:17
the
21:17
same
21:18
item
21:19
that
21:20
somebody
21:21
just
21:21
walked
21:21
out
21:21
of
21:21
store
21:22
saying
21:22
hey,
21:22
it's
21:22
still
21:22
available.
21:23
So
21:23
that's
21:24
a
21:24
typical
21:24
kind
21:24
of
21:24
connectivity
21:25
problem.
21:25
Where
21:26
it
21:26
gets
21:26
more
21:26
interesting,
21:27
right.
21:27
Is
21:28
what
21:28
if
21:28
I'm
21:29
in
21:29
the
21:29
store
21:29
in
21:30
my
21:30
shopping
21:30
cart,
21:30
walking
21:31
around.
21:32
So
21:32
POS
21:32
actually
21:32
doesn't
21:33
know
21:33
that
21:33
I'm
21:33
going
21:34
to
21:34
buy
21:34
this
21:34
item
21:34
just
21:34
yet.
21:35
Right.
21:35
It's
21:36
not
21:36
on
21:36
the
21:36
shelf
21:36
anymore.
21:37
So
21:38
I'm
21:38
walking
21:38
around
21:38
with
21:39
this
21:40
product.
21:41
How
21:42
do
21:42
you
21:42
predict,
21:42
how
21:43
do
21:43
you
21:43
know
21:43
whether
21:43
I
21:44
can
21:44
sell
21:44
it
21:44
or
21:45
now
21:46
it's
21:46
no
21:46
longer
21:46
there.
21:47
Right.
21:47
And
21:47
there's
21:47
some
21:48
kind
21:48
of
21:49
technical
21:49
hardware
21:50
solution
21:50
with
21:50
the
21:50
RFIDs.
21:53
But
21:53
again
21:54
that's
21:54
where
21:55
AI
21:55
comes
21:56
in
21:56
pretty
21:56
handy.
21:57
But
21:57
that's
21:58
where
21:58
a
21:58
lot
21:58
of
21:58
complexity
21:59
is
21:59
first
21:59
in
21:59
the
21:59
warehouse,
22:00
right.
22:00
It's
22:00
all
22:01
very
22:01
controlled,
22:01
Right.
22:01
There
22:02
are
22:02
no
22:02
customers.
22:03
Fraud
22:03
is
22:03
significantly
22:05
less.
22:05
Right.
22:06
So
22:06
it's
22:06
just
22:06
a
22:07
lot
22:07
more
22:07
controlled
22:07
environment.
22:08
Yeah,
22:09
that's
22:09
what
22:09
I
22:09
always
22:09
say.
22:09
You
22:09
just
22:09
don't
22:10
have
22:10
the
22:10
biggest,
22:10
the
22:10
biggest
22:10
reason
22:11
you
22:11
don't
22:11
have
22:11
customers
22:11
mucking
22:12
with
22:12
everything,
22:12
right.
22:13
At
22:13
the
22:13
end
22:13
of
22:13
the
22:13
day
22:14
I.
22:15
Have,
22:15
I
22:15
have
22:16
to
22:16
add
22:16
this
22:16
like
22:17
another
22:17
one
22:17
of
22:17
my
22:17
favorite
22:18
stories.
22:18
Another
22:18
fashion
22:19
retailer,
22:20
they
22:20
were
22:20
doing
22:20
peak
22:21
back
22:21
ship
22:21
out
22:21
of
22:21
the
22:22
stores.
22:22
So
22:23
they
22:24
have,
22:24
right.
22:24
Like
22:24
they're
22:25
picking
22:25
the
22:25
items,
22:26
they're
22:26
putting
22:26
it
22:26
like
22:26
they
22:26
have
22:27
this
22:27
little
22:27
card,
22:27
they
22:28
will
22:28
put
22:28
the
22:28
side
22:28
up
22:28
on
22:29
the
22:29
card
22:29
and
22:29
they
22:29
would
22:29
go
22:29
and
22:29
pick
22:30
another
22:30
item.
22:31
What
22:31
they
22:31
found
22:31
is
22:31
the
22:32
customers
22:32
thought
22:32
that
22:33
oh,
22:33
it's
22:33
somebody's
22:34
like
22:34
you
22:34
like
22:35
buying
22:35
and
22:35
selling
22:36
it.
22:36
So
22:36
this
22:36
must
22:37
be
22:37
a
22:37
really
22:37
good
22:37
item.
22:38
They
22:38
would
22:38
come
22:38
to
22:38
this
22:39
card
22:39
and
22:39
just
22:39
yank
22:39
that
22:40
item
22:40
and
22:40
like,
22:40
oh,
22:40
I
22:41
want
22:41
to
22:41
buy
22:41
this
22:41
dress
22:41
now.
22:42
And
22:42
like,
22:43
good
22:43
luck
22:43
predicting
22:44
that
22:44
kind
22:44
of
22:44
behavior.
22:45
It
22:45
actually.
22:46
Right.
22:46
The
22:46
associate
22:47
picked
22:47
it
22:47
up
22:47
successfully,
22:48
put
22:48
it
22:48
on
22:48
the
22:48
card,
22:49
went
22:49
to
22:49
pick
22:49
up
22:49
another
22:50
item,
22:50
and
22:51
the
22:51
customer
22:51
walks
22:52
into
22:52
the
22:52
card
22:52
because,
22:53
you
22:53
know,
22:53
just
22:53
a
22:54
card
22:54
just
22:54
yank
22:55
the
22:55
dress
22:55
and
22:55
says,
22:55
hey,
22:56
I
22:56
want
22:56
this
22:56
dress
22:56
right
22:57
now.
22:57
So
22:57
I'm
22:57
walking
22:57
away
22:58
with
22:58
the
22:58
dress.
22:59
Yeah.
22:59
And
22:59
as
22:59
a
22:59
former
23:00
store
23:00
manager,
23:00
I'm
23:00
not
23:00
going
23:01
to
23:01
tell
23:01
that
23:01
customer
23:01
he
23:01
or
23:01
she's
23:02
wrong
23:02
and
23:03
I
23:03
want
23:03
sale
23:04
immediately.
23:04
Right.
23:05
That's
23:05
where
23:05
you
23:05
get
23:05
an
23:05
immediate
23:06
sale.
23:06
But
23:06
then
23:07
what
23:07
do
23:07
you
23:07
do
23:07
now
23:07
with
23:07
the
23:07
salad
23:08
store?
23:08
So
23:08
you
23:08
reject
23:08
that
23:09
order,
23:09
Try
23:09
to
23:09
find
23:10
another
23:10
order.
23:11
Those
23:11
are
23:11
fun.
23:11
If
23:12
you
23:12
ever
23:12
want
23:12
to
23:12
see
23:12
like
23:12
a
23:13
warehouse
23:13
person's
23:14
like
23:14
smoke
23:14
come
23:14
out
23:14
of
23:14
their
23:15
ears
23:15
as
23:15
you
23:15
say,
23:15
hey,
23:16
go
23:17
pick
23:17
inside
23:17
of
23:17
a
23:18
store.
23:18
I
23:18
mean
23:18
like
23:18
all
23:19
the
23:19
rules,
23:19
throw
23:19
them
23:19
out
23:20
because
23:21
are
23:21
you
23:21
supposed
23:22
to.
23:22
The
23:22
person
23:22
doing
23:23
the
23:23
picking,
23:23
are
23:23
they
23:23
supposed
23:24
to
23:24
fight
23:24
with
23:24
the
23:24
customer
23:24
that
23:25
wants
23:25
the
23:25
dress?
23:25
I
23:25
mean,
23:26
it's
23:26
just
23:26
a
23:26
complete
23:28
different
23:28
playing
23:28
field
23:28
as
23:29
soon
23:29
as
23:29
you
23:29
introduce
23:30
the
23:30
consumer
23:30
into
23:31
the
23:31
flow.
23:31
And
23:31
what
23:32
are
23:32
the
23:32
accuracy
23:32
level
23:33
differences
23:33
part
23:34
and
23:34
parcel?
23:34
Like
23:34
is
23:34
it
23:35
98%
23:36
versus
23:37
80%?
23:37
Like,
23:38
what
23:38
do
23:38
you
23:38
think,
23:38
Eugene?
23:39
I
23:39
mean,
23:39
store
23:39
inventory,
23:40
again,
23:40
it
23:41
depends
23:41
by
23:41
retail,
23:41
etc.
23:42
But
23:42
right.
23:43
Store
23:43
inventory,
23:44
I
23:44
think
23:44
accuracy
23:44
increased
23:45
significantly.
23:46
So
23:46
now
23:46
I
23:47
think
23:47
at
23:47
least
23:47
retailers
23:48
I'm
23:48
talking
23:48
to,
23:48
often
23:49
they're
23:49
dealing
23:49
with
23:49
like
23:49
single
23:50
percentage
23:50
points,
23:51
like
23:51
maybe
23:51
2,
23:52
3,
23:52
1%.
23:53
That's
23:53
inaccuracy
23:54
within
23:54
the
23:54
store,
23:55
which
23:55
is
23:55
like
23:55
a,
23:56
you
23:56
know,
23:57
big,
23:57
big
23:58
improvements
23:58
since
23:58
when
23:59
we
23:59
were
23:59
maybe
24:00
10,
24:00
20
24:01
years
24:01
ago,
24:01
where
24:01
sometimes
24:02
you
24:02
are
24:02
like
24:02
at
24:03
90%
24:03
or
24:03
85%.
24:04
So
24:04
it
24:04
got,
24:05
it
24:05
got,
24:05
I
24:05
think
24:05
a
24:05
lot,
24:06
a
24:06
lot
24:06
better.
24:07
I
24:07
think
24:07
in
24:07
D.C.
24:08
right.
24:08
You're
24:09
talking
24:09
about
24:09
like
24:10
sub
24:10
percentage
24:11
and
24:11
it's
24:11
more
24:11
around
24:11
damage.
24:12
But
24:13
there's
24:13
interesting
24:14
kind
24:14
of
24:14
again,
24:15
where
24:15
there's
24:15
opportunity
24:16
is
24:16
now
24:17
potentially.
24:18
Right.
24:18
What
24:18
about
24:18
the
24:18
inventory
24:19
that's
24:19
not
24:19
within
24:20
four
24:20
walls?
24:21
Returns.
24:22
Can
24:22
I
24:22
start
24:22
promising
24:23
against
24:23
returns
24:23
that
24:24
haven't
24:24
reached
24:24
my
24:24
warehouse?
24:26
Can
24:27
I
24:27
do
24:27
pre
24:27
orders
24:27
where
24:28
I
24:28
don't
24:28
even
24:28
have
24:28
pos?
24:29
So
24:29
kind
24:29
of
24:29
again,
24:29
we're
24:30
talking
24:30
about
24:30
physical
24:31
path
24:31
of
24:31
the
24:31
inventory.
24:32
But
24:33
what
24:33
if
24:33
it's
24:34
kind
24:34
of
24:34
a
24:34
little
24:34
bit
24:34
outside?
24:35
Right.
24:35
Like
24:35
those
24:35
creative
24:36
ways
24:36
so
24:36
many
24:36
retailers
24:37
are
24:37
figuring
24:37
out
24:37
saying,
24:38
well,
24:38
if
24:38
the
24:38
item
24:38
is
24:39
being
24:39
returned
24:39
and
24:39
I
24:40
can
24:40
run
24:40
AI
24:40
and
24:40
predict
24:41
that
24:41
it's
24:41
a,
24:41
you
24:42
know,
24:42
it's
24:42
a
24:42
legit
24:42
customer,
24:43
the
24:43
Item
24:44
hasn't
24:44
been
24:44
opened,
24:45
I
24:45
can
24:45
probably
24:46
start
24:46
promising
24:46
it
24:46
before
24:47
it
24:47
even
24:47
hits
24:47
my
24:47
warehouse,
24:48
right?
24:48
Or
24:48
the
24:49
other
24:49
way
24:49
around,
24:49
right?
24:51
Some
24:51
kind
24:52
of
24:52
a
24:53
pre
24:53
order
24:53
and
24:54
say,
24:54
hey,
24:54
I
24:54
want
24:54
to
24:54
sell,
24:55
you
24:55
know,
24:55
thousand
24:55
of
24:56
those
24:56
books
24:57
before
24:57
I
24:57
even
24:57
get
24:58
them
24:58
in
24:58
the
24:58
inventory.
24:58
So
24:59
there's
24:59
some
24:59
kind
24:59
of
24:59
interesting
25:00
edge
25:00
cases
25:00
around
25:01
it.
25:01
But
25:01
I
25:01
think
25:01
inventory
25:02
is
25:02
getting
25:02
a
25:03
little
25:03
bit,
25:03
you
25:03
know,
25:03
better
25:05
within
25:05
the
25:05
store
25:05
systems.
25:06
Well,
25:06
that's
25:06
interesting
25:06
too
25:07
because
25:07
you're
25:07
bringing
25:07
up,
25:07
you're
25:07
bringing
25:08
up
25:08
a
25:08
whole
25:08
nother
25:08
level
25:09
to
25:09
this
25:09
discussion
25:09
that
25:10
we
25:10
haven't
25:10
touched
25:10
on,
25:10
which
25:11
is
25:11
the
25:11
actual
25:11
stack
25:12
that
25:12
you're
25:12
using
25:12
to
25:13
run
25:13
this
25:13
whole
25:14
process,
25:14
you
25:14
know,
25:14
because
25:15
you've
25:15
got
25:15
the
25:15
order
25:15
management
25:15
system,
25:16
you've
25:16
got
25:16
the
25:16
warehouse
25:17
management
25:17
system,
25:17
you've
25:17
got
25:18
the
25:18
transportation
25:19
management
25:19
system
25:20
as
25:20
well,
25:20
just
25:20
to
25:20
name
25:21
a
25:21
few
25:21
big
25:22
matzo
25:22
balls,
25:23
quite
25:23
frankly,
25:24
when
25:24
you
25:24
get
25:24
right
25:24
down
25:24
to
25:24
it.
25:25
So,
25:25
so
25:26
what
25:26
are
25:26
the,
25:27
when
25:27
you
25:27
think
25:27
about
25:27
those
25:28
systems,
25:28
Eugene,
25:29
that
25:29
you
25:29
know,
25:29
you
25:29
just
25:30
alluded
25:30
to?
25:30
What,
25:31
what
25:31
are
25:32
the
25:32
failures
25:32
you
25:32
see
25:33
or
25:33
the
25:33
configuration
25:34
issues
25:34
you
25:34
see
25:35
in
25:35
them
25:35
that
25:35
can
25:36
also
25:36
lead
25:36
or
25:37
exacerbate.
25:37
An
25:37
out
25:38
of
25:38
stock
25:38
problem
25:39
at
25:40
the
25:40
core?
25:40
That
25:40
your
25:41
question
25:41
itself
25:41
is
25:41
probably
25:42
what
25:42
causes
25:43
a
25:43
lot
25:43
of
25:43
failures?
25:44
Because
25:45
customers
25:45
like
25:46
people.
25:46
People
25:46
think
25:47
saying,
25:47
hey,
25:47
I
25:47
need
25:48
to
25:48
buy
25:48
a
25:48
system
25:48
for
25:48
order
25:49
management,
25:49
or
25:49
I
25:49
need
25:50
to
25:50
buy
25:50
a
25:50
system
25:50
for
25:50
transportation,
25:51
or
25:51
I
25:51
need
25:52
to
25:52
buy
25:52
a
25:52
system,
25:52
I'm
25:53
opening
25:53
a
25:53
warehouse
25:54
and
25:54
I'm
25:55
going
25:55
to
25:56
buy
25:56
a
25:56
system
25:56
for
25:56
warehouse
25:57
management.
25:57
Or
25:58
sometimes
25:58
happens
25:58
I'm
25:58
closing
25:59
a
25:59
warehouse.
25:59
What
26:00
system
26:00
do
26:00
I
26:00
need
26:00
to
26:00
buy
26:01
now?
26:01
Because
26:01
I
26:02
shrank
26:02
number
26:02
of
26:03
locations
26:03
I
26:03
can
26:03
ship
26:03
from.
26:04
And
26:04
I
26:05
think
26:05
what's.
26:06
It's
26:06
been
26:06
evolving
26:07
a
26:07
lot,
26:07
right?
26:07
And
26:08
again,
26:08
we've
26:08
been
26:08
in
26:09
this
26:09
for
26:09
so
26:09
many
26:09
years,
26:10
right?
26:10
Erps
26:11
came
26:11
and
26:11
then,
26:12
you
26:12
know,
26:12
the
26:12
man
26:12
we
26:12
said,
26:13
hey,
26:13
RP
26:13
is
26:13
a
26:13
monolithic.
26:14
Let's
26:15
go
26:15
look
26:15
at
26:15
order
26:15
management
26:16
systems.
26:16
I
26:17
think
26:17
what
26:17
we're
26:17
saying
26:17
now
26:18
is
26:18
maybe
26:18
even
26:18
order
26:19
management
26:19
systems
26:20
or
26:20
any
26:20
particular
26:20
system
26:21
may
26:21
be
26:21
a
26:21
bit
26:21
of
26:21
monolithic.
26:22
What
26:22
you
26:23
want
26:23
to
26:23
do
26:23
is
26:23
you
26:23
want
26:23
to
26:24
align
26:24
with
26:24
your
26:24
business
26:24
and
26:25
functional
26:26
needs.
26:27
And
26:27
if
26:27
you
26:27
need
26:28
a
26:28
saying
26:28
I
26:28
want
26:28
to
26:28
get
26:28
close
26:29
to
26:29
the
26:29
customer,
26:30
it
26:30
means
26:30
that
26:31
you
26:31
need
26:31
some
26:31
capability
26:31
from
26:32
transportation,
26:33
you
26:33
need
26:33
some
26:34
capability
26:34
from
26:34
warehousing,
26:35
and
26:35
some
26:35
capability
26:36
from
26:36
water
26:36
management,
26:37
right?
26:37
And
26:37
you
26:37
need
26:37
to
26:38
be
26:38
able
26:38
to
26:38
light
26:38
up
26:38
these
26:39
functions
26:40
and
26:40
the
26:41
more
26:41
you
26:41
think
26:41
about
26:42
how
26:42
to
26:42
align
26:43
it,
26:43
right?
26:43
That's
26:44
why
26:44
we
26:44
talk
26:44
a
26:44
lot
26:44
about
26:45
supply
26:45
chain
26:45
execution.
26:46
Because
26:46
in
26:46
reality
26:47
you
26:47
might
26:47
need
26:47
capabilities
26:48
from
26:48
multiple
26:48
systems,
26:50
right?
26:50
Which
26:50
is
26:50
quite
26:51
different
26:51
than
26:51
saying,
26:52
hey,
26:52
I
26:52
want
26:52
to
26:52
buy
26:52
order
26:52
management.
26:53
That's
26:53
number
26:54
one
26:54
and
26:54
number
26:54
two,
26:55
current
26:55
reality
26:56
is
26:56
that
26:56
you
26:56
may
26:56
not
26:57
have
26:57
be
26:58
able
26:58
to
26:58
afford
26:59
to
26:59
get
26:59
the
26:59
full
26:59
order
27:00
management
27:00
because
27:00
of
27:01
time,
27:01
because
27:01
of
27:01
resources,
27:02
or
27:03
a
27:03
full
27:03
warehouse
27:04
management,
27:04
et
27:05
cetera.
27:05
So
27:06
I
27:06
think
27:06
systems
27:07
are
27:07
becoming
27:07
more
27:07
agile.
27:08
You
27:08
need
27:08
to
27:09
be
27:09
able
27:09
to
27:09
kind
27:09
of
27:10
implement
27:11
in
27:11
more
27:11
augmentative
27:12
way.
27:13
Your
27:13
stack
27:13
has
27:14
to
27:14
be
27:14
cannot
27:15
be
27:15
a
27:15
bottleneck
27:16
for
27:16
the
27:16
business
27:16
to
27:16
light
27:16
up
27:17
these
27:17
capabilities.
27:17
Right
27:18
again,
27:19
tying
27:19
in
27:19
a
27:19
little
27:19
bit
27:20
like
27:20
tariffs.
27:20
Right
27:21
again,
27:21
everyone
27:21
had
27:21
the
27:22
plan
27:22
and
27:22
everything
27:22
was
27:23
kind
27:23
of
27:23
lined
27:23
up
27:24
and
27:24
then
27:24
tariffs
27:24
hit
27:25
and
27:25
one
27:25
of
27:26
my
27:26
customers
27:26
said,
27:26
hey,
27:27
I'm
27:27
shipping
27:27
from
27:27
China
27:28
to
27:28
Canada
27:28
because
27:29
I
27:29
want
27:29
to
27:29
have
27:30
product
27:31
very
27:31
close
27:31
to
27:32
the
27:32
border
27:32
and
27:32
when
27:33
things
27:33
get
27:33
sorted
27:34
out,
27:34
I'll
27:35
open
27:35
it
27:35
up.
27:36
Well
27:36
now
27:36
suddenly
27:37
you
27:37
need
27:37
to
27:37
kind
27:38
of,
27:38
okay,
27:38
transportation
27:39
is
27:39
being
27:39
impacted
27:40
or
27:40
management
27:40
is
27:41
being
27:41
impacted
27:42
and
27:42
warehousing
27:42
being
27:43
impacted.
27:43
So
27:43
what
27:43
do
27:44
I
27:44
need
27:44
to
27:44
light
27:44
up
27:44
to
27:45
kind
27:45
of
27:45
get
27:45
this
27:45
functionality
27:46
going
27:47
versus
27:48
as
27:48
before,
27:49
customers
27:49
would
27:49
say,
27:49
well,
27:50
let's
27:50
drop
27:50
in
27:51
ERP
27:51
or
27:51
let's
27:51
drop
27:52
in
27:52
oms,
27:52
et
27:53
cetera.
27:53
So
27:53
it's
27:53
slightly
27:54
different
27:54
way
27:54
of
27:55
thinking
27:55
about
27:55
the
27:56
whole
27:56
system
27:58
kind
27:58
of
27:58
footprint.
27:59
Eugene's
27:59
got
27:59
me
27:59
thinking
28:00
like,
28:00
okay,
28:01
the
28:01
systems
28:02
you're
28:02
using
28:02
to
28:02
do
28:03
this
28:03
can
28:03
create
28:04
all
28:04
kinds
28:04
of
28:05
new
28:05
complexity
28:06
that
28:06
I've
28:06
never
28:07
thought
28:07
about.
28:07
So
28:09
when
28:09
you
28:09
get
28:09
down
28:10
to
28:10
it,
28:10
then
28:10
are
28:10
these
28:10
systems
28:11
themselves
28:12
creating
28:12
out
28:13
of
28:13
stocks
28:13
versus
28:13
actual
28:14
inventory
28:15
shortages?
28:16
What's
28:16
the
28:17
proclivity
28:17
there
28:17
on
28:18
that
28:18
ledger?
28:18
How
28:19
would
28:19
you
28:19
think
28:19
about
28:19
that?
28:20
I
28:20
think
28:21
there's
28:21
definitely
28:22
some
28:22
inaccuracy
28:23
due
28:23
to
28:23
systems
28:24
for
28:24
certain.
28:25
Again,
28:26
if
28:27
we
28:28
always
28:28
discuss
28:29
with
28:29
Richard
28:30
one
28:30
example,
28:30
right.
28:31
If
28:31
I
28:31
know
28:31
that
28:32
Carrie
28:32
is
28:32
not
28:33
picking
28:33
up
28:33
some
28:34
specific
28:34
items
28:35
in
28:35
the
28:35
warehouse,
28:35
why
28:36
am
28:36
I
28:36
waving?
28:37
Why
28:37
am
28:37
I
28:37
working?
28:38
Right.
28:39
Kind
28:39
of
28:40
working
28:40
on
28:40
those
28:40
shipments.
28:41
If
28:41
order
28:41
management
28:41
knows
28:42
this
28:42
upstream,
28:43
it
28:43
can
28:43
actually
28:43
start
28:44
sending
28:44
some
28:44
different
28:44
items.
28:45
And
28:45
then
28:45
when
28:46
Carrie
28:46
actually
28:46
picks
28:47
up,
28:47
you
28:48
reprioritize.
28:49
So
28:49
all
28:49
these
28:49
kind
28:49
of
28:50
disruptions,
28:50
potentially
28:51
again
28:52
typical
28:53
happy
28:53
path.
28:53
Usually
28:54
things
28:54
are
28:54
great,
28:55
but
28:55
the
28:56
minute
28:56
any
28:56
of
28:57
these
28:57
kinds
28:57
of
28:57
disruptions
28:58
occur,
29:00
the
29:01
limitations
29:01
of
29:01
system
29:02
integrations
29:02
cause
29:03
potential
29:03
out
29:03
of
29:04
stock.
29:05
Or
29:05
again,
29:06
I
29:06
always
29:06
think
29:06
about
29:07
out
29:07
of
29:07
stock
29:07
and
29:08
missing
29:08
the
29:08
promise
29:09
delivery
29:09
date.
29:09
Promise
29:10
expectations
29:11
is
29:11
kind
29:12
of
29:12
the
29:12
same.
29:13
To
29:13
your
29:13
question
29:13
specifically,
29:14
I
29:14
wouldn't
29:14
say
29:14
that
29:15
any
29:15
individual
29:16
system
29:17
creates
29:17
the
29:18
out
29:18
of
29:18
stock.
29:19
Okay.
29:19
What
29:20
creates
29:20
the
29:20
out
29:20
of
29:20
stock
29:21
is
29:21
when
29:21
they're
29:21
not
29:22
talking
29:22
to
29:22
each
29:22
other.
29:23
Right.
29:23
So
29:23
if
29:23
you
29:24
think
29:24
about
29:24
the
29:24
oh,
29:24
like
29:25
Eugene
29:25
always
29:25
says,
29:25
the
29:26
OMS
29:26
is
29:26
the
29:26
brain,
29:27
WMS
29:27
is
29:27
the
29:28
arms
29:28
and
29:28
the
29:28
TMS
29:28
is
29:29
the
29:29
legs.
29:29
Like
29:30
if
29:30
the
29:30
functions
29:31
aren't
29:31
talking
29:31
to
29:32
each
29:32
other,
29:33
things
29:33
go
29:34
wrong
29:34
very,
29:35
very
29:35
quickly,
29:36
you
29:36
know,
29:36
and
29:36
that's
29:36
how
29:36
like
29:37
if
29:37
you
29:37
have
29:37
a
29:38
truck
29:38
that
29:38
shows
29:38
up
29:38
and
29:38
there's
29:39
damaged
29:39
product
29:39
on
29:40
the
29:40
truck
29:41
and
29:42
you
29:42
know
29:42
that
29:42
if
29:43
your
29:43
WMS
29:44
then
29:44
tells
29:44
your
29:44
own
29:45
mess
29:45
that
29:45
I'm
29:45
not
29:45
going
29:45
to
29:46
be
29:46
able
29:46
to
29:46
satisfy
29:46
this
29:46
order
29:47
and
29:47
I've
29:47
got
29:47
a
29:47
whole
29:47
other
29:47
truckload
29:48
sitting
29:48
in
29:48
another
29:48
dc,
29:49
I
29:49
can
29:49
solve
29:49
that
29:50
problem.
29:50
And
29:51
if
29:51
the
29:51
WMS
29:52
records
29:52
the
29:52
damage
29:53
and
29:53
that
29:53
doesn't
29:53
get
29:53
reported
29:54
up
29:54
for
29:54
a
29:54
few
29:55
hours
29:55
or
29:55
even
29:55
the
29:55
next
29:56
day,
29:57
the
29:57
lack
29:58
of
29:58
the
29:58
communication
29:59
between
29:59
the
29:59
two
29:59
systems
30:00
has
30:00
definitely
30:01
been
30:01
caused.
30:01
Out
30:01
of
30:01
stock.
30:02
Okay,
30:02
I
30:02
want
30:02
to
30:02
ask
30:02
a
30:02
controversial
30:03
question
30:03
then.
30:03
Or
30:04
maybe
30:04
it's
30:04
a
30:04
little
30:04
bit
30:04
controversial.
30:05
I
30:05
don't
30:05
know.
30:05
Probably
30:06
not
30:06
to
30:06
me
30:06
it's
30:06
not,
30:06
but
30:06
to
30:07
some
30:07
people
30:07
it
30:07
might
30:07
be.
30:08
So,
30:09
you
30:09
know,
30:09
everyone
30:10
talks
30:10
about
30:10
legacy
30:11
systems
30:12
like
30:12
my
30:12
legacy
30:13
systems.
30:13
They're
30:13
always
30:13
outdated.
30:14
I
30:14
need
30:14
to
30:14
upgrade
30:15
them.
30:16
But
30:17
are
30:17
the
30:17
systems
30:18
the
30:18
issue
30:18
fundamentally
30:19
or
30:19
do
30:19
the
30:20
companies
30:20
not
30:20
know
30:20
how
30:21
to
30:21
use
30:21
the
30:21
systems
30:22
and
30:22
integrate
30:22
them
30:23
to
30:23
create
30:23
the
30:23
connectivity
30:24
that
30:24
you've
30:24
been
30:24
espousing?
30:25
Richard,
30:25
it's
30:26
a
30:26
good
30:26
question.
30:26
I
30:26
wouldn't
30:27
say
30:27
it's
30:27
controversial,
30:27
but
30:28
it
30:28
is,
30:29
it's
30:29
an
30:29
important
30:29
one.
30:30
Right.
30:30
Like
30:30
you
30:30
can,
30:30
okay,
30:31
you
30:31
can
30:31
call
30:32
a
30:32
legacy
30:33
system
30:33
something
30:34
that's
30:34
actually
30:34
fairly
30:35
modern,
30:35
right?
30:35
There's
30:36
good
30:36
legacy
30:36
and
30:36
then
30:36
there's
30:37
bad
30:37
ones.
30:37
Right.
30:38
Like,
30:38
you
30:38
know,
30:38
I
30:38
was
30:39
at
30:39
a
30:39
conference
30:39
and
30:39
they
30:39
said
30:39
the
30:40
legacy
30:40
of
30:40
like
30:40
a
30:40
Michael
30:41
Jordan,
30:41
that's
30:41
a
30:41
good
30:41
legacy.
30:42
Right?
30:42
Legacy
30:42
of
30:42
it.
30:43
Right,
30:43
that.
30:44
But
30:45
the.
30:45
For
30:45
me,
30:45
I
30:45
think
30:46
there's.
30:46
There
30:46
are
30:47
certain
30:47
fundamental
30:48
elements
30:48
of
30:49
certain
30:49
technologies
30:50
throughout
30:51
the
30:51
past
30:51
that.
30:51
Yes,
30:52
that's
30:52
a
30:52
legacy
30:52
system.
30:53
It's
30:53
not
30:54
going
30:54
to
30:54
be
30:55
able
30:55
to
30:55
handle
30:56
like
30:56
real
30:56
time
30:56
data,
30:57
real
30:57
time
30:57
communication.
30:59
But
30:59
at
30:59
some
31:00
level,
31:00
you
31:01
know,
31:01
a
31:02
legacy
31:02
system
31:02
only
31:02
becomes
31:03
a
31:03
legacy
31:03
system
31:03
because
31:04
the
31:04
way
31:04
that
31:04
you're
31:05
using
31:05
it,
31:05
I
31:06
would
31:06
always
31:06
encourage
31:06
folks,
31:06
if
31:07
they're
31:07
thinking
31:07
about
31:07
it,
31:07
don't
31:08
think
31:08
about
31:08
it
31:08
about
31:08
modern
31:09
versus
31:09
legacy.
31:10
Think
31:10
about
31:10
it
31:10
on.
31:11
In
31:11
terms
31:11
of
31:12
as
31:12
I
31:12
evolve
31:13
on
31:13
my
31:13
maturity
31:14
curve,
31:14
will
31:14
that
31:15
system
31:15
be
31:15
able
31:16
to
31:16
talk
31:16
to
31:17
external
31:17
systems
31:18
or
31:18
it's
31:18
just
31:18
by
31:19
its
31:19
nature
31:19
it's
31:19
truly
31:20
siloed.
31:20
It's
31:21
the
31:21
truly
31:21
siloed
31:22
systems
31:22
that
31:22
I
31:22
would
31:22
really
31:23
go
31:23
after.
31:24
I
31:24
think
31:24
we
31:25
as
31:25
vendors.
31:25
So
31:25
I've
31:26
been
31:26
obviously
31:26
right.
31:26
Building
31:27
software
31:27
for
31:28
quite
31:28
some
31:28
time.
31:29
I
31:29
think
31:29
we
31:29
love
31:30
complexity,
31:30
right.
31:31
So
31:31
the
31:31
reason
31:32
also
31:32
systems
31:33
become
31:33
almost
31:33
legacy
31:34
to
31:34
a
31:34
degree
31:34
is
31:35
because
31:35
it's
31:35
super
31:35
difficult
31:36
to
31:36
configure
31:36
and
31:37
use.
31:37
Right.
31:37
Just
31:38
we
31:38
enjoy.
31:39
And
31:39
especially
31:39
again,
31:40
tier
31:40
one
31:41
more
31:41
so.
31:43
Right.
31:43
Super
31:44
complex
31:44
to
31:44
configure,
31:45
super
31:46
complex.
31:46
To
31:47
operate,
31:47
right.
31:48
There's
31:48
so
31:48
many
31:48
levers,
31:49
right.
31:49
And
31:49
we
31:49
all
31:49
know
31:50
like
31:50
20%
31:50
of
31:50
every
31:51
functionality
31:51
just
31:51
gets
31:52
used,
31:52
right?
31:52
So
31:52
we
31:53
have
31:53
100
31:53
and
31:54
you
31:54
only
31:54
enable
31:54
20%.
31:55
But
31:56
then
31:56
you
31:56
come
31:56
back
31:56
to
31:56
the
31:56
system
31:57
like
31:57
five
31:57
years
31:57
later
31:58
and
31:58
you're
31:58
like,
31:58
well
31:58
I
31:59
have
31:59
no
31:59
idea.
31:59
Right.
31:59
And
32:00
there'll
32:00
always
32:00
be
32:00
this
32:00
one
32:00
person
32:01
in
32:01
the
32:01
entire
32:01
company
32:02
who
32:02
knows
32:03
why
32:03
it
32:03
was
32:03
done
32:04
that
32:04
way
32:04
and
32:05
the
32:05
reason
32:05
I'm
32:05
talking
32:05
about
32:05
it,
32:06
right?
32:06
I
32:06
think
32:06
there's
32:06
massive
32:07
opportunity
32:07
with
32:08
current
32:08
tech,
32:09
with
32:09
the
32:09
new
32:09
tech
32:09
to
32:10
actually
32:10
simplify
32:11
it,
32:11
bring
32:12
it
32:12
to
32:12
completely
32:13
different
32:13
level,
32:13
right?
32:13
And
32:13
that's
32:14
where
32:14
actually
32:14
gen
32:14
AI
32:15
and
32:15
I'm
32:15
always
32:15
kind
32:16
of
32:17
cautious
32:18
what
32:18
use
32:18
cases,
32:19
how
32:19
do
32:19
you
32:19
approach
32:20
gen
32:20
AI
32:20
versus
32:21
machine
32:21
learning
32:21
versus
32:21
optimization,
32:22
et
32:22
cetera.
32:22
But
32:23
like
32:23
around
32:24
configuration
32:24
especially,
32:25
it's
32:26
awesome
32:26
to
32:26
kind
32:27
of
32:27
start
32:27
creating
32:28
kind
32:28
of
32:28
gen
32:28
AI
32:29
capabilities
32:29
creating
32:30
which
32:31
will
32:31
capture
32:31
the
32:31
tribal
32:32
knowledge.
32:32
So
32:33
you
32:33
can
32:33
even
32:33
three
32:33
years
32:33
later
32:34
say,
32:34
well
32:35
okay,
32:35
you
32:35
configured
32:36
this
32:36
flow
32:37
because
32:37
you
32:37
have
32:38
the
32:38
specific
32:38
multiple
32:39
channels
32:40
that
32:40
drove
32:40
this
32:41
requirements
32:41
and
32:41
that's
32:41
how
32:42
it
32:42
was
32:42
done.
32:43
So
32:43
I
32:43
think
32:44
new
32:44
tech
32:45
potentially
32:45
could
32:45
start
32:46
expanding
32:47
the
32:48
time,
32:48
the
32:48
lifecycle
32:49
of
32:49
the,
32:49
of
32:50
the
32:50
software
32:50
just
32:50
by
32:50
making
32:51
it
32:51
simpler.
32:52
And
32:52
the
32:52
reason
32:53
why
32:53
we
32:53
spend
32:54
a
32:54
lot
32:54
of
32:54
time
32:54
on
32:55
that
32:55
again
32:55
is
32:55
because
32:55
we
32:56
think
32:56
about,
32:56
okay,
32:57
bringing
32:57
tier
32:57
one
32:58
capabilities
32:58
around
32:59
supply
32:59
chain
32:59
execution
33:00
to
33:00
the
33:00
masses.
33:01
Again,
33:01
if
33:01
I
33:01
look
33:01
at
33:01
mid
33:02
tier,
33:02
that's
33:03
even
33:03
harder,
33:03
right?
33:03
Like
33:03
you
33:04
try
33:04
to
33:04
bring
33:04
this
33:05
massive
33:05
system
33:07
to
33:07
a
33:07
mid,
33:08
tier,
33:08
they
33:08
don't
33:09
have
33:09
hundreds
33:10
of
33:10
thousands
33:10
of
33:11
IT
33:11
folks,
33:14
they
33:14
don't
33:14
have
33:14
all
33:15
these
33:15
complexities
33:16
that
33:16
they
33:17
don't
33:17
need
33:17
to
33:17
deal
33:17
with
33:17
them.
33:18
But
33:18
you
33:19
end
33:19
up
33:19
implementing
33:20
this
33:20
kind
33:20
of
33:20
monster
33:21
system,
33:21
okay,
33:22
how
33:22
do
33:22
you
33:22
configure,
33:22
et
33:23
cetera?
33:24
So
33:24
I
33:24
think
33:24
that's
33:24
where
33:24
the
33:25
new
33:25
tag
33:25
could
33:25
really
33:26
help.
33:26
And
33:26
I
33:26
love
33:27
what
33:27
Richard
33:27
said
33:27
too
33:27
about
33:27
good
33:28
legacy
33:28
versus
33:28
bad
33:28
legacy.
33:29
I
33:29
might
33:29
borrow
33:29
that
33:30
at
33:30
some
33:30
point.
33:30
Richard,
33:31
that's
33:31
a
33:31
really
33:31
excellent
33:32
point
33:32
too.
33:32
Do
33:33
you
33:33
want
33:33
a
33:33
good
33:33
legacy
33:33
like
33:34
Michael
33:34
Jordan?
33:34
I'll
33:34
never
33:35
forget
33:35
that.
33:35
All
33:35
right,
33:35
all
33:36
right,
33:36
so
33:36
let's
33:36
shift
33:36
gears
33:37
a
33:37
little
33:37
bit.
33:37
So
33:37
if
33:37
you,
33:37
if
33:38
we
33:38
rewind
33:38
what
33:38
we've
33:39
talked
33:39
about
33:39
before,
33:39
we've,
33:40
we've
33:40
talked
33:40
about
33:40
ordering
33:40
the
33:41
product,
33:41
we've
33:41
talked
33:41
about,
33:42
you
33:42
know,
33:42
all
33:42
the
33:43
things
33:43
that
33:43
can
33:43
happen
33:43
in
33:44
terms
33:44
of
33:44
the
33:44
warehouse
33:44
and
33:44
IT
33:45
arriving
33:45
on
33:45
time.
33:45
We've
33:46
talked
33:46
about
33:46
your
33:46
systems
33:47
helping
33:47
you
33:47
enable
33:48
you
33:48
to
33:48
know
33:48
exactly
33:49
where
33:49
it
33:49
is
33:50
as
33:50
a
33:50
retailer
33:51
and,
33:51
and
33:52
it
33:52
actually
33:52
being
33:52
in
33:52
your
33:52
store
33:53
too
33:53
and
33:53
being,
33:54
being
33:54
confident
33:54
is
33:55
there.
33:56
But
33:56
even
33:56
if
33:57
we
33:57
get
33:57
all
33:57
of
33:57
those
33:58
things
33:58
right,
33:59
all
34:00
three
34:00
of
34:00
us
34:00
on
34:00
this
34:00
call
34:01
know
34:02
we
34:02
Know
34:02
that
34:03
there
34:03
are
34:03
still
34:03
times
34:04
where
34:04
our
34:04
customers
34:05
cannot
34:05
buy
34:05
it.
34:06
And
34:06
so
34:06
how
34:06
in
34:06
the
34:06
world
34:07
can
34:07
that
34:07
happen
34:08
and
34:08
what
34:08
do
34:08
we
34:08
do
34:08
when
34:09
it
34:09
does?
34:09
And
34:09
so
34:09
that's
34:09
what
34:09
I
34:10
want
34:10
to
34:10
talk
34:10
about
34:10
now.
34:11
So
34:11
some
34:12
of
34:12
the
34:12
causes
34:13
of
34:13
retailers
34:13
out
34:14
of
34:14
stocks
34:14
are
34:14
out
34:15
of
34:15
our
34:15
control.
34:16
So
34:16
Richard,
34:17
I'm
34:17
curious,
34:17
like
34:18
what
34:18
are
34:18
some
34:18
of
34:18
those
34:19
factors,
34:19
particularly
34:20
the
34:20
external
34:20
disruption
34:21
side
34:22
of
34:22
things
34:22
like
34:22
port
34:23
congestions,
34:24
natural
34:25
disasters
34:26
and
34:27
can
34:27
those
34:27
actually
34:27
be
34:28
prevented,
34:28
is
34:29
my
34:29
question.
34:30
Can
34:30
we
34:30
actually
34:30
prevent
34:30
those
34:31
from
34:31
impacting
34:31
our
34:32
supply
34:32
chains?
34:32
No.
34:33
I
34:33
mean,
34:33
I
34:33
wish
34:33
I
34:33
had
34:34
a
34:34
magic
34:34
wand
34:34
that
34:34
could
34:35
say
34:35
no,
34:35
poor
34:36
congestions
34:36
never
34:36
happen
34:37
again.
34:37
Right?
34:37
Like,
34:37
no,
34:38
it's
34:38
just
34:38
not
34:38
the
34:38
reality
34:39
that
34:39
we
34:39
live
34:39
in.
34:40
Like
34:40
external
34:41
disruptions
34:41
are.
34:41
They're
34:42
getting
34:42
more
34:42
frequent,
34:43
not
34:44
less
34:44
frequent.
34:44
Right?
34:44
You
34:44
think
34:45
about
34:45
what
34:45
we've
34:45
done
34:45
to
34:45
ourselves.
34:46
We
34:46
did
34:46
this
34:46
globally
34:47
connected
34:47
supply
34:48
chain.
34:48
So
34:49
it
34:49
can
34:49
be
34:49
fairly
34:50
fragile,
34:50
it
34:50
can
34:50
be
34:51
brittle.
34:51
Right?
34:52
So
34:52
I
34:52
think
34:53
modern
34:54
day
34:54
supply
34:54
chain
34:54
person
34:55
has
34:55
to
34:55
start
34:55
thinking
34:56
that
34:56
disruptions
34:56
are
34:57
simply
34:57
the
34:57
new
34:57
norm
34:58
and
34:58
quit
34:59
worrying
35:00
about
35:00
when
35:00
they're
35:00
going
35:01
to
35:01
happen.
35:01
Just
35:01
focus
35:01
on
35:01
how
35:02
do
35:02
you
35:02
predict
35:02
them,
35:02
how
35:02
do
35:03
you
35:03
react
35:03
and
35:03
how
35:03
do
35:03
you
35:04
adapt.
35:05
And
35:05
I
35:05
think
35:05
we
35:06
also
35:06
have
35:06
to,
35:07
you
35:08
know,
35:08
good
35:08
or
35:09
bad.
35:09
Consumers
35:10
have
35:10
gotten
35:10
a
35:10
little
35:10
bit
35:11
numb
35:11
in
35:12
my
35:12
opinion,
35:12
to
35:12
disruptions
35:13
like
35:13
it
35:13
used
35:14
to
35:14
be.
35:14
It
35:14
was
35:14
an
35:14
excuse,
35:14
oh,
35:15
we
35:15
had
35:15
this
35:15
happening,
35:15
so
35:16
that's
35:16
why
35:16
your
35:16
order
35:16
is
35:16
late.
35:17
And
35:17
they
35:17
just
35:17
kind
35:17
of
35:17
get
35:18
used
35:18
to
35:18
it.
35:18
To
35:18
today's
35:19
consumer
35:19
is
35:20
very,
35:20
very
35:21
unforgiving.
35:22
They're
35:22
just
35:22
assuming
35:23
that
35:23
you
35:23
can
35:24
now
35:25
figure
35:25
it
35:25
out
35:26
anyway.
35:26
And
35:27
that's
35:27
just
35:27
the
35:27
reality
35:28
I
35:28
think
35:28
that
35:28
everybody
35:28
has
35:29
to
35:29
start
35:29
thinking
35:29
through.
35:29
That's
35:30
what
35:30
we
35:30
have
35:30
to
35:30
deal
35:30
with.
35:31
Eugene.
35:31
The
35:32
other
35:32
thing
35:32
I
35:32
think
35:32
about
35:32
in
35:32
terms
35:33
of
35:33
like
35:33
that's
35:33
along
35:34
the
35:34
same
35:34
lines
35:34
but
35:34
a
35:35
little
35:35
bit
35:35
different
35:35
than
35:35
what
35:35
just
35:35
Richard
35:36
just
35:36
talked
35:36
about
35:36
in
35:36
terms
35:36
of
35:37
like
35:37
the
35:37
external
35:37
shock
35:37
is
35:38
like
35:38
this
35:38
demand
35:39
surge
35:40
or
35:40
the
35:40
peak
35:40
periods
35:41
of
35:41
time
35:41
where
35:42
demand
35:42
just
35:42
goes
35:43
to
35:43
a
35:43
level
35:43
no
35:43
one
35:43
could
35:43
have
35:44
expected
35:44
or
35:44
no
35:44
system
35:45
could
35:45
have
35:45
forecasted.
35:48
What
35:48
weaknesses
35:49
do
35:49
those
35:49
types
35:50
of
35:50
events
35:50
expose
35:51
in
35:51
the
35:52
systems
35:52
that
35:52
we've
35:52
been
35:52
discussing?
35:54
Actually
35:54
just
35:55
again
35:55
talk
35:55
to
35:55
another
35:56
customer
35:56
of
35:56
mine
35:57
and
35:59
wellness
35:59
retailer
36:00
and
36:00
they
36:00
do
36:01
Special
36:01
runs
36:01
on
36:02
TikTok
36:03
and
36:03
it
36:03
generates
36:04
absolutely
36:04
crazy
36:05
amount
36:05
of
36:06
demand.
36:07
They
36:08
kind
36:08
of
36:08
make
36:09
it
36:09
very
36:09
unique
36:10
that
36:10
inventory
36:10
is
36:11
not
36:11
available
36:11
anywhere
36:12
else
36:12
but
36:13
just
36:13
during
36:14
that
36:14
TikTok
36:15
kind
36:15
of
36:16
presentation,
36:16
et
36:16
cetera.
36:17
And
36:18
that
36:18
definitely
36:19
puts
36:19
different
36:19
level
36:20
of
36:20
stress
36:20
on
36:20
the
36:20
system.
36:21
So
36:21
first
36:21
of
36:21
all
36:21
it
36:21
can
36:22
create
36:22
this
36:23
instead
36:23
of
36:24
typical
36:24
spread
36:25
of
36:25
inventory,
36:25
right?
36:25
Everyone
36:26
is
36:26
buying
36:26
something
36:26
else
36:27
now
36:27
there's
36:27
like
36:27
one
36:27
Item
36:28
one,
36:28
sku.
36:29
And
36:29
that
36:30
sku,
36:31
everybody
36:32
who's
36:33
watching
36:33
that
36:33
channel
36:34
wants
36:34
to
36:34
buy
36:34
it
36:34
like
36:34
immediately.
36:35
And
36:36
so
36:36
there's
36:36
some
36:37
kind
36:38
of
36:38
of
36:39
stress
36:39
on
36:39
the
36:40
system
36:40
to
36:40
be
36:40
able
36:40
to
36:41
sell
36:41
this
36:41
one,
36:42
one
36:42
single
36:42
item.
36:43
And
36:44
the
36:44
other
36:44
part
36:44
is
36:45
just
36:45
a
36:46
question
36:46
on
36:47
scalability,
36:47
right?
36:48
Whenever
36:48
these
36:48
spikes
36:49
are
36:49
created,
36:50
the
36:50
whole
36:50
system
36:51
historically
36:52
you
36:52
would
36:53
always
36:53
kind
36:53
of
36:53
say,
36:53
well,
36:54
let
36:54
me
36:54
scale
36:55
for
36:55
peak.
36:55
That
36:56
was
36:56
like
36:56
the
36:56
most
36:56
traditional,
36:57
the
36:57
most
36:57
standard
36:58
way
36:58
of
36:58
thinking,
36:58
right?
36:59
Especially
36:59
like
37:00
typical
37:00
retailers,
37:00
right?
37:01
September,
37:02
you
37:02
kind
37:02
of
37:02
do
37:03
code
37:03
freeze
37:03
of
37:03
everything.
37:04
You
37:04
walk
37:05
in
37:05
October,
37:05
you
37:05
scale
37:06
it
37:06
out
37:06
for,
37:07
right.
37:07
December,
37:08
November,
37:08
December,
37:09
and
37:09
then
37:09
you're
37:09
good,
37:09
you
37:09
scale
37:10
it
37:10
down
37:10
again.
37:11
Well,
37:11
that
37:12
doesn't
37:12
work
37:12
anymore,
37:13
right?
37:13
If
37:13
you
37:13
have
37:13
this
37:13
kind
37:14
of
37:14
unpredicted
37:15
demand
37:15
spikes,
37:16
it
37:16
puts
37:16
so
37:17
much
37:17
stress
37:17
on
37:17
the
37:17
system
37:18
and
37:18
you
37:18
cannot
37:18
plan
37:18
for
37:19
it.
37:19
So
37:19
then
37:19
when
37:19
you
37:19
kind
37:20
of
37:20
implementing
37:20
the
37:20
system,
37:20
you
37:21
need
37:21
to
37:21
think
37:21
differently,
37:22
saying,
37:22
okay,
37:22
what
37:23
about
37:23
auto
37:23
scaling?
37:24
And
37:24
everyone
37:24
will
37:24
say,
37:24
well,
37:25
we
37:25
have
37:25
auto
37:26
scaling
37:26
systems.
37:26
Well,
37:27
but
37:27
in
37:27
reality
37:28
there's
37:29
always
37:29
be
37:29
some
37:29
bottleneck
37:30
somewhere
37:30
in
37:30
your
37:30
stack.
37:31
It
37:31
could
37:32
be
37:32
a
37:32
database,
37:32
it
37:32
could
37:33
be
37:33
some
37:33
kind
37:33
of
37:33
a
37:34
search,
37:34
it
37:34
could
37:34
be
37:35
some
37:35
API,
37:35
it
37:35
could
37:35
be
37:36
anything
37:36
right
37:36
in
37:36
your
37:36
stack
37:37
that
37:37
will
37:37
not
37:37
overscale
37:38
and
37:38
it
37:38
suddenly
37:39
becomes
37:39
the
37:40
problem.
37:41
So
37:41
this
37:42
kind
37:42
of
37:42
spikes
37:43
again,
37:45
definitely
37:46
put
37:47
quite
37:47
a
37:47
unique
37:47
stress
37:48
on
37:48
the
37:48
systems
37:49
throughout
37:49
your
37:50
supply
37:50
chain.
37:50
I
37:50
want
37:50
to
37:51
get
37:51
both
37:51
of
37:51
you
37:51
on
37:51
this
37:51
one
37:51
too.
37:52
So
37:52
then
37:53
who
37:53
actually
37:53
owns
37:54
the
37:54
out
37:54
of
37:54
stock
37:55
problem
37:55
then?
37:55
Because
37:56
it's
37:56
so
37:56
complicated
37:57
as
37:57
we've
37:57
just
37:58
discussed,
37:59
like
37:59
where
37:59
does
37:59
the
38:00
actual
38:00
final
38:01
authority
38:02
lie?
38:02
Is
38:02
it
38:03
merchandising,
38:03
store
38:04
ops?
38:04
Is
38:05
it
38:05
the
38:05
technology
38:06
teams?
38:06
Like,
38:08
how
38:08
should
38:08
retailers
38:09
think
38:09
about
38:09
that?
38:09
Like,
38:10
I,
38:11
I
38:11
don't
38:11
know
38:11
the
38:11
answer
38:12
to
38:12
that.
38:12
Like
38:12
in
38:12
terms
38:12
of
38:13
where
38:13
does
38:13
the
38:13
buck
38:14
actually
38:14
stop?
38:14
Eugene,
38:15
what
38:15
do
38:15
you
38:15
think?
38:15
To
38:16
me,
38:16
unfortunately,
38:16
if
38:16
it
38:17
would
38:17
have
38:17
been
38:17
an
38:17
easy
38:17
question
38:18
saying,
38:18
well,
38:18
it's,
38:19
you
38:19
know,
38:19
maybe
38:19
it's
38:19
a
38:19
chief
38:20
supply
38:20
chain
38:20
officer,
38:21
but
38:21
in
38:21
reality
38:22
it's
38:23
not.
38:23
Some
38:23
of
38:24
the
38:24
worst
38:24
examples
38:25
I've
38:25
seen
38:25
is
38:26
as
38:26
a
38:26
vendor,
38:26
you
38:27
go
38:27
and
38:27
talk
38:27
to
38:27
a
38:27
customer
38:28
and
38:28
somebody
38:29
comes
38:29
from
38:29
the
38:29
digital,
38:30
like,
38:30
you
38:30
know,
38:30
from
38:30
a
38:30
website
38:31
and
38:31
somebody
38:32
comes
38:32
from
38:32
supply
38:32
chain
38:32
and
38:33
they
38:33
shake
38:33
hands
38:33
and
38:33
introduce
38:34
to
38:34
each
38:35
other,
38:35
which
38:35
means
38:36
they,
38:36
this
38:37
is
38:37
the
38:37
first
38:37
time
38:37
they,
38:38
you
38:38
know,
38:38
seen
38:38
it,
38:38
or
38:39
maybe
38:39
they
38:39
don't
38:39
talk
38:40
to
38:40
each
38:40
other
38:40
that
38:40
often,
38:40
right?
38:41
And
38:41
again,
38:42
if
38:42
there's
38:42
one
38:42
person
38:43
who
38:43
owns
38:43
it,
38:43
it's
38:43
probably
38:44
easier.
38:44
But
38:44
in
38:44
reality,
38:45
right,
38:45
because
38:45
of
38:45
all
38:45
these
38:46
stresses
38:46
in
38:46
the
38:46
system,
38:47
because
38:47
of
38:47
all
38:48
this
38:48
multiple
38:48
channels,
38:49
like
38:49
again,
38:49
right,
38:49
like
38:50
retailers
38:50
started,
38:50
I
38:51
just
38:51
need
38:51
to
38:51
get
38:51
inventory
38:51
into
38:52
the
38:52
stores
38:52
and
38:52
I'm
38:52
done.
38:53
And
38:53
now
38:54
that's
38:54
just
38:54
one
38:55
of
38:55
many,
38:55
many
38:55
channels.
38:56
Right.
38:58
I
38:58
don't
38:59
see
38:59
there's
38:59
a
38:59
single
39:00
owner.
39:00
What
39:01
I
39:01
do
39:01
see
39:01
is,
39:01
right,
39:02
it's
39:02
a
39:03
collection
39:03
of
39:04
systems
39:05
put
39:05
in
39:05
place
39:06
across
39:06
this
39:07
whole
39:07
supply
39:07
chain
39:08
portfolio
39:08
that
39:09
have
39:09
to
39:09
work
39:09
together
39:10
and
39:10
enable
39:11
different
39:11
parties
39:12
to
39:12
be
39:12
able
39:12
to
39:12
react
39:13
to
39:13
all
39:13
these
39:13
disruptions.
39:14
To
39:14
be
39:14
able
39:14
to
39:15
say
39:15
like,
39:15
hey,
39:15
I
39:15
have
39:15
inventory.
39:16
And
39:17
obviously
39:17
like
39:17
warehouse
39:18
will
39:18
have
39:18
its
39:18
own
39:18
inventory,
39:19
store
39:19
has
39:19
its
39:19
own
39:19
inventory
39:20
and
39:20
so
39:20
on.
39:20
But
39:20
yeah,
39:21
I
39:21
don't
39:22
see
39:22
it
39:22
as
39:22
a
39:22
single
39:22
owner
39:23
per
39:23
se.
39:23
So
39:24
it's
39:24
almost
39:24
gotta
39:24
be
39:24
a
39:24
cross
39:25
functional
39:25
mandate
39:25
from
39:26
the
39:26
top
39:26
down.
39:26
Richard,
39:27
is
39:27
that
39:27
what
39:27
you'd
39:27
say
39:27
too?
39:28
Yeah,
39:28
a
39:29
hundred
39:29
percent.
39:29
I
39:29
mean,
39:29
if
39:30
you
39:30
assign
39:30
a
39:30
single
39:31
person
39:31
to
39:31
own
39:31
out
39:31
of
39:32
stocks,
39:32
they're
39:32
only
39:32
going
39:32
to
39:33
get
39:33
worse.
39:33
Right.
39:33
So
39:34
if
39:34
you
39:34
think
39:35
through
39:35
it's
39:36
to
39:36
Eugene's
39:37
point,
39:37
it's
39:37
the
39:37
technology,
39:38
it's
39:38
the
39:38
systems,
39:39
but
39:39
then
39:39
it's
39:39
also
39:39
just
39:40
kind
39:40
of
39:40
the
39:40
human
39:40
nature.
39:41
And
39:41
I
39:41
would
39:41
always
39:41
look
39:42
at
39:42
aligning
39:42
your
39:43
incentives
39:43
to
39:43
the
39:44
common
39:44
good.
39:44
Right.
39:44
Is
39:45
every
39:45
decision
39:46
we
39:46
make,
39:46
if
39:47
it's
39:47
made
39:47
with
39:47
how
39:47
do
39:48
we
39:48
prevent
39:48
the
39:48
out
39:48
of
39:48
stock?
39:49
In
39:49
a
39:49
team
39:49
environment,
39:51
that's
39:51
how
39:52
you're
39:52
actually
39:52
going
39:52
to
39:52
get
39:52
to
39:53
the
39:53
finish
39:53
line.
39:53
To
39:53
start
39:54
to,
39:54
to
39:54
minimize
39:55
those.
39:55
If
39:56
you
39:56
do
39:56
it
39:56
any
39:56
other
39:56
way,
39:57
everybody
39:58
just
39:58
optimizes
39:59
for
39:59
their
39:59
piece.
39:59
Like
40:00
build
40:00
my
40:00
own
40:01
little
40:01
silo,
40:01
what
40:02
I
40:02
can
40:02
control
40:02
is
40:02
great.
40:03
You
40:03
build
40:03
your
40:03
own
40:04
little
40:04
silo,
40:04
what
40:04
you
40:04
can
40:05
control
40:05
is
40:05
great.
40:06
And
40:06
we
40:06
still
40:07
fail
40:07
as
40:07
a
40:07
company.
40:08
Like
40:08
there
40:08
is
40:09
only
40:09
one
40:09
way
40:09
to
40:09
get
40:10
it
40:10
done
40:10
and
40:10
that
40:10
is
40:10
to
40:10
definitely
40:11
go
40:11
cross
40:11
functional.
40:12
So
40:12
wait,
40:12
I
40:12
wanna,
40:13
I
40:13
wanna
40:13
make
40:13
sure
40:13
I
40:14
just
40:14
heard
40:14
what
40:14
you
40:14
guys
40:14
both
40:15
just
40:15
said
40:15
because
40:16
you
40:16
two
40:17
are
40:17
20
40:17
plus
40:17
year
40:18
veterans
40:18
in
40:19
retail
40:20
supply
40:20
chain
40:20
technology.
40:21
You
40:21
work
40:21
for
40:22
a
40:22
technology
40:22
company.
40:23
There's
40:24
all
40:24
this
40:24
talk
40:24
about
40:24
technology
40:25
fixing
40:25
everyone's
40:26
problems,
40:27
but
40:27
I
40:27
feel
40:27
like
40:28
I
40:28
just
40:28
heard
40:28
you
40:28
say
40:29
that
40:29
technology
40:29
alone
40:30
can't
40:30
solve
40:31
all
40:31
of
40:31
the
40:31
problems
40:32
that
40:32
come
40:33
with
40:33
out
40:33
of
40:33
stocks.
40:34
Eugene,
40:34
am
40:34
I
40:35
saying
40:35
that
40:36
correctly?
40:38
It
40:38
needs
40:38
to
40:38
be
40:39
a
40:39
coordinated
40:39
effort
40:40
here,
40:40
inclusive
40:41
of
40:41
technology.
40:41
But
40:41
technology
40:42
alone
40:42
is
40:42
not
40:42
going
40:42
to
40:42
be
40:42
the
40:43
panacea.
40:43
Yeah,
40:44
I
40:44
would
40:44
say
40:44
technology
40:44
is
40:45
probably
40:45
the.
40:46
I
40:46
guess
40:46
I'm
40:46
lucky.
40:47
Technology
40:47
is
40:47
the
40:47
easiest
40:48
part
40:48
of
40:48
this
40:48
whole
40:49
equation.
40:49
Right.
40:50
People
40:50
and
40:50
processes
40:51
is.
40:51
That's
40:52
where
40:52
the
40:52
real
40:53
heavy
40:53
lifting
40:53
is.
40:54
Technology
40:54
just
40:55
cannot
40:55
be
40:55
the
40:55
bottleneck
40:56
to
40:57
this
40:57
improvement
40:57
to
40:58
these
40:58
processes
40:58
and
40:58
kind
40:59
of
40:59
people
40:59
working
40:59
through
41:00
that.
41:00
Absolutely.
41:00
I
41:00
would
41:01
say
41:01
the
41:01
technology
41:01
is
41:02
a
41:02
tool
41:02
that
41:02
can
41:02
help
41:03
solve
41:03
the
41:04
problem,
41:04
but
41:04
it's
41:04
not
41:04
a
41:04
solve
41:05
in
41:05
itself.
41:05
Let's
41:06
get
41:06
to
41:06
the
41:06
Finish
41:06
line
41:06
here.
41:07
And
41:07
let's
41:07
talk
41:07
about
41:07
AI,
41:08
the
41:08
big
41:08
elephant
41:08
in
41:09
the
41:09
room
41:09
then.
41:09
Because
41:09
the
41:09
big
41:10
question
41:10
then
41:10
is,
41:10
you
41:10
know,
41:11
if
41:11
technology
41:11
can't
41:11
solve
41:12
it
41:12
and
41:12
it
41:12
requires
41:12
coordination
41:13
is
41:13
like,
41:14
how
41:14
do
41:14
we
41:15
actually
41:15
fix
41:15
this?
41:16
So
41:16
Eugene,
41:16
what
41:17
are
41:17
the
41:17
basics
41:17
one
41:18
needs
41:18
to
41:18
fix
41:19
first?
41:19
If
41:20
you
41:20
look
41:20
at
41:20
from
41:20
the
41:21
AI
41:21
perspective,
41:22
we
41:23
always
41:23
kind
41:23
of
41:23
look
41:23
at
41:24
different
41:24
parts
41:24
of
41:25
the
41:25
AI.
41:25
Again,
41:25
everyone
41:26
talks
41:26
about
41:26
Genai
41:27
and
41:27
I
41:27
always
41:27
kind
41:27
of
41:27
take
41:28
a
41:28
step
41:28
back,
41:28
maybe
41:28
because
41:28
of
41:29
historical
41:29
perspective
41:30
as
41:30
well.
41:30
But
41:31
right,
41:31
there's
41:31
machine
41:31
learning,
41:32
there's
41:32
gen
41:33
AI,
41:33
there
41:33
are
41:34
optimizers,
41:35
there
41:35
are
41:35
all
41:35
the
41:36
right
41:36
tools
41:36
you
41:37
have
41:37
to
41:37
solve
41:38
individual
41:38
kind
41:38
of
41:39
problems.
41:40
Right?
41:40
So
41:41
especially
41:41
around
41:41
out
41:41
of
41:42
stock,
41:42
all
41:42
of
41:42
them
41:43
could
41:43
be
41:43
very
41:43
applicable
41:44
depending
41:44
on
41:44
what
41:45
the
41:45
issue
41:45
is,
41:46
Right.
41:46
It
41:47
could
41:47
be
41:47
as
41:47
simple
41:48
as
41:49
being
41:49
able
41:49
to
41:49
predict,
41:50
just
41:50
load
41:51
your
41:51
historical
41:51
data
41:51
and
41:52
you
41:52
can
41:52
probably
41:52
very
41:52
effectively
41:53
see
41:53
in
41:53
the
41:53
store.
41:54
If
41:54
you're
41:54
dealing
41:54
with
41:54
the
41:54
problem
41:55
of
41:55
inaccuracy
41:56
within
41:56
the
41:56
store,
41:57
you
41:57
look
41:57
at
41:57
historical
41:58
data
41:58
and
41:58
we'd
41:58
be
41:58
able
41:59
to
41:59
predict
41:59
saying,
41:59
well,
42:00
you'll
42:00
probably
42:01
run
42:01
out
42:01
of
42:01
stock
42:02
on
42:02
this
42:02
item
42:02
pretty
42:03
quickly,
42:03
so
42:03
don't
42:03
sell
42:03
it
42:03
on
42:04
the
42:04
website.
42:06
That's
42:07
kind
42:07
of
42:07
from
42:07
machine
42:08
learning
42:08
perspective.
42:09
Before
42:09
you
42:09
even
42:09
get
42:10
to
42:10
AI,
42:11
what
42:11
we
42:11
see
42:11
often
42:12
is
42:13
you
42:13
start
42:13
implementing
42:14
a
42:14
common
42:15
engine
42:15
for
42:15
inventory.
42:16
So
42:16
you
42:16
have
42:16
one.
42:16
So
42:17
from
42:17
people
42:18
perspective,
42:18
multiple
42:19
parties
42:19
within
42:19
the
42:19
organization
42:20
own
42:20
the
42:20
inventory.
42:21
But
42:21
from
42:22
the
42:22
tag
42:23
you
42:23
start
42:23
having
42:24
maybe
42:24
one
42:25
module,
42:26
one
42:26
service,
42:26
one
42:27
component
42:27
that's
42:27
responsible
42:28
for
42:28
that
42:28
inventory.
42:29
So
42:29
you
42:30
standardize
42:31
that
42:31
way
42:32
and
42:32
then
42:32
you
42:32
start
42:32
saying,
42:32
hey,
42:33
within
42:33
the
42:33
system,
42:33
how
42:33
do
42:34
I
42:34
bring
42:34
AI,
42:34
how
42:35
do
42:35
I
42:35
bring
42:35
machine
42:35
learning?
42:36
How
42:36
do
42:36
I
42:36
bring
42:37
agentic
42:37
to
42:37
be
42:38
able
42:38
to
42:38
write?
42:39
With
42:39
Richard,
42:39
we
42:40
always
42:40
talk
42:40
about
42:40
saying,
42:40
hey,
42:41
there's
42:41
like
42:41
a
42:41
stack
42:42
of
42:42
boxes
42:42
within
42:43
the
42:43
warehouse
42:44
because
42:44
one
42:44
item
42:44
is
42:45
missing,
42:45
right?
42:45
Instead
42:46
of
42:46
having
42:46
the
42:46
tribal
42:46
knowledge
42:47
to
42:47
understand
42:48
where,
42:49
where
42:49
that
42:49
item
42:49
is
42:50
or
42:50
how
42:50
do
42:50
I
42:50
kind
42:50
of
42:50
move
42:50
this
42:51
box
42:51
forward.
42:52
Now
42:52
you
42:52
have
42:52
Genai
42:53
that
42:53
can
42:53
pretty
42:53
quickly
42:54
figure
42:54
out
42:54
saying,
42:55
okay,
42:55
the
42:55
issue
42:55
is
42:56
because
42:56
of
42:56
replenishment.
42:57
Let
42:57
me
42:57
do
42:57
that.
42:58
So
42:58
again,
43:00
AI
43:00
could
43:00
definitely
43:01
be
43:01
super
43:01
helpful.
43:03
What
43:03
I
43:03
would
43:04
say
43:04
also
43:04
is
43:05
make
43:05
sure
43:05
it's
43:06
very
43:06
use
43:06
case
43:07
driven.
43:07
We
43:08
don't
43:08
like
43:08
to
43:08
AI
43:09
wash
43:09
everything.
43:09
It
43:10
becomes
43:10
kind
43:10
of,
43:10
I
43:11
think
43:11
you
43:11
lose
43:11
the
43:11
point
43:11
of
43:12
it.
43:12
Right?
43:13
But
43:13
if
43:14
you
43:14
tie
43:14
it
43:14
to
43:14
very
43:14
specific
43:15
use
43:15
cases,
43:15
just
43:16
like
43:16
out
43:17
of
43:17
stock
43:17
situations,
43:18
it
43:18
could
43:18
be
43:18
very
43:18
effective.
43:19
So
43:19
you're
43:19
saying
43:19
you
43:20
should
43:20
have
43:20
one
43:21
AI
43:21
engine
43:22
that
43:22
is
43:22
basically
43:23
running
43:24
or
43:24
coordinating
43:24
or
43:24
acting
43:25
as
43:25
the
43:25
brain
43:26
across
43:27
the
43:27
oms,
43:27
the
43:28
wms,
43:28
the
43:28
tms,
43:29
is
43:29
that
43:29
right?
43:30
Exactly.
43:31
So
43:31
you
43:31
centralize
43:32
it
43:32
as
43:32
a
43:32
One
43:33
brain,
43:33
one
43:33
engine.
43:34
And
43:34
then
43:35
some
43:35
use
43:35
cases
43:35
within
43:36
this
43:36
engine
43:36
you
43:37
address
43:37
through
43:37
AI.
43:38
Like
43:38
that
43:39
would
43:39
be
43:39
my
43:39
recommendation
43:40
on
43:40
addressing
43:41
the
43:41
out
43:41
of
43:41
stock
43:41
situation
43:42
specifically.
43:43
So
43:43
let's
43:44
say
43:44
you
43:44
put
43:44
that
43:44
into
43:44
place.
43:45
That
43:45
sounds
43:45
like
43:46
that's
43:46
a
43:46
good
43:46
basic
43:47
first
43:47
step
43:47
to
43:47
take
43:47
and
43:48
a
43:48
great
43:49
go
43:49
away
43:49
or
43:49
takeaway
43:50
for
43:50
the
43:50
audience
43:50
to
43:51
potentially
43:51
go
43:51
and
43:51
do
43:53
what's
43:53
next.
43:53
Like
43:53
what
43:54
else
43:54
do
43:54
you
43:54
look
43:54
to
43:54
do
43:55
inside
43:55
the
43:55
stack
43:56
itself?
43:57
So
43:57
once
43:57
you
43:57
put
43:57
that
43:58
stack,
43:58
the
43:58
interesting
43:58
part
43:59
becomes,
43:59
right,
44:00
you
44:00
kind
44:01
of
44:01
serve,
44:01
you
44:01
become
44:02
everything
44:03
to
44:03
all
44:03
these
44:04
kind
44:04
of
44:04
channels.
44:04
And
44:05
they
44:05
have
44:05
such
44:05
a
44:06
different
44:07
demands.
44:08
I
44:08
was
44:08
talking
44:08
to
44:10
one
44:11
of
44:11
the
44:11
largest
44:11
beauty
44:11
retailers
44:13
in
44:13
US
44:14
and
44:15
they
44:15
said,
44:15
well,
44:15
we
44:16
want
44:16
to
44:16
show
44:16
this
44:16
inventory
44:17
and
44:17
have
44:17
this
44:17
visibility.
44:18
But
44:18
guess
44:18
what?
44:19
I
44:19
need
44:19
response
44:20
time
44:20
to
44:20
be
44:20
in
44:20
100
44:21
milliseconds.
44:23
That's
44:23
a
44:23
very
44:23
different
44:23
requirement
44:24
that
44:25
back
44:25
in
44:25
the
44:25
days
44:25
where
44:26
my
44:26
ERP
44:26
had
44:27
inventory
44:29
or
44:29
even
44:30
typical
44:30
order
44:30
management
44:31
system
44:31
will
44:31
not
44:31
respond
44:32
within
44:32
100
44:33
milliseconds,
44:33
right?
44:34
So
44:34
once
44:35
you
44:35
have
44:35
this
44:35
kind
44:35
of
44:36
centralized
44:36
component,
44:37
you
44:37
need
44:38
to
44:38
start
44:38
working
44:38
with
44:38
your
44:38
partners
44:39
and
44:39
build
44:39
bridges.
44:40
And
44:40
actually
44:40
human
44:41
beings
44:41
have
44:41
to
44:41
talk
44:42
to
44:42
each
44:42
other
44:42
and
44:42
say
44:42
like,
44:43
hey,
44:43
this
44:43
service,
44:44
I
44:44
need
44:44
to
44:45
be
44:45
able
44:45
to
44:45
return
44:46
availability
44:46
inventory
44:47
information
44:47
within
44:48
100
44:48
milliseconds
44:49
across
44:50
my
44:51
store
44:51
network.
44:51
That's
44:52
one
44:52
kind
44:52
of
44:52
use
44:53
case.
44:53
Another
44:54
use
44:54
case
44:54
could
44:55
be
44:55
like,
44:55
well,
44:55
I
44:55
just
44:55
need
44:56
to
44:56
post
44:56
inventory
44:57
to
44:57
my
44:57
financial
44:58
systems
44:58
from
44:58
just
44:59
reporting
44:59
perspective,
45:00
very
45:00
different
45:00
type
45:00
of
45:01
use
45:01
case,
45:01
massive
45:02
data
45:02
processing
45:02
required.
45:04
So
45:04
again,
45:06
we
45:06
talk
45:07
quite
45:07
often
45:07
about
45:08
purposeful
45:08
innovation.
45:09
So
45:09
purpose
45:10
innovation
45:10
for
45:10
us,
45:11
meaning,
45:11
hey,
45:11
tying
45:12
it
45:12
to
45:12
very
45:12
specific
45:12
use
45:13
cases
45:14
with
45:15
the
45:15
stack.
45:15
So
45:15
again,
45:16
build
45:16
out
45:16
the
45:16
stack,
45:17
centralize
45:17
your
45:17
inventory,
45:18
then
45:18
start
45:19
lighting
45:19
up
45:19
those
45:20
individual
45:21
touch
45:21
points
45:22
because
45:22
they
45:22
will
45:22
give
45:23
very
45:23
different
45:23
requirements,
45:24
very
45:24
different
45:24
perspective
45:25
of
45:25
what's
45:26
needed
45:26
there
45:26
based
45:27
on
45:27
the
45:27
business
45:27
value.
45:28
Okay,
45:29
so
45:29
because
45:29
we
45:30
touched
45:30
on
45:30
it
45:30
before,
45:31
then
45:32
say
45:32
I
45:32
start
45:32
that
45:33
I
45:33
do
45:33
those
45:33
things,
45:35
how
45:35
do
45:35
I
45:35
prepare
45:35
the
45:35
organization
45:36
for
45:36
it?
45:36
Because
45:37
we
45:37
spent
45:37
a
45:37
lot
45:37
of
45:37
time
45:38
talking
45:38
about
45:38
how
45:38
the
45:38
human
45:39
element
45:39
is
45:39
also
45:39
an
45:39
important
45:40
part
45:40
of
45:40
this
45:40
equation.
45:42
How
45:42
do
45:42
we
45:42
make
45:42
sure
45:43
that
45:43
the
45:43
humans
45:43
adapt
45:44
to
45:44
this
45:45
new
45:45
technology
45:46
infrastructure
45:47
in
45:48
a
45:48
way
45:48
that
45:49
best
45:49
benefits
45:50
the
45:50
organization
45:51
as
45:51
a
45:51
whole.
45:51
What
45:51
do
45:51
you
45:52
think
45:52
on
45:52
that,
45:52
Eugene?
45:53
Well,
45:53
for
45:53
me
45:53
the
45:54
big
45:54
part
45:54
there,
45:54
again
45:55
from
45:55
just
45:55
human
45:55
nature,
45:56
is
45:56
I
45:57
think
45:57
pulling
45:57
the
45:57
teams
45:58
early,
45:58
pulling
45:58
the
45:59
folks
45:59
early.
46:00
Nobody
46:00
like
46:01
everyone
46:01
hates,
46:01
right?
46:02
Just
46:02
somebody
46:02
saying,
46:02
hey,
46:03
this
46:03
is
46:03
the
46:03
API
46:04
and
46:04
this
46:04
is
46:04
the
46:04
component,
46:05
start
46:05
calling
46:05
it
46:06
tomorrow,
46:06
right?
46:06
Everyone
46:07
has
46:07
their
46:07
own
46:07
priorities,
46:08
right?
46:09
Digital,
46:09
they
46:09
have
46:10
their
46:10
own
46:10
roadmap.
46:11
On
46:11
the
46:11
supply
46:11
chain,
46:12
we
46:12
have
46:12
our
46:12
own
46:13
roadmap.
46:13
Stores
46:13
have
46:14
a
46:14
different
46:14
roadmap
46:14
so
46:15
trying
46:15
to
46:15
kind
46:15
of
46:15
align,
46:16
et
46:16
cetera.
46:16
But
46:17
if
46:17
you
46:17
start
46:17
kind
46:17
of
46:18
aligning
46:18
based
46:19
on
46:19
the
46:19
business
46:19
need
46:19
and
46:20
saying,
46:20
hey,
46:21
out
46:21
of
46:21
stock
46:21
causes
46:22
customers
46:23
being
46:23
unhappy.
46:24
If
46:25
customer
46:26
satisfaction
46:26
is
46:26
our
46:27
priority
46:27
overall
46:27
as
46:28
a
46:28
company
46:28
less
46:29
than,
46:29
act
46:29
accordingly.
46:30
Line
46:30
up,
46:31
pull
46:31
in
46:31
the
46:31
right
46:31
stakeholders
46:32
early
46:33
in
46:33
this
46:33
process
46:34
so
46:34
that
46:34
whenever
46:35
this
46:35
kind
46:35
of
46:36
component
46:37
is
46:37
up
46:37
there
46:38
ready
46:38
and
46:38
running,
46:39
there
46:39
are
46:39
no
46:40
surprises.
46:40
So
46:41
there's
46:41
a
46:41
lot
46:41
of
46:41
kind
46:42
of,
46:42
I
46:42
think
46:42
that's
46:42
required
46:43
outside
46:43
of
46:44
tech,
46:45
just
46:45
humans.
46:46
Humans
46:46
talking
46:46
to
46:46
each
46:46
other.
46:47
Humans
46:48
talking
46:48
to
46:48
each
46:48
other.
46:48
Always
46:48
a
46:48
good,
46:49
always
46:49
a
46:49
good
46:49
strategy
46:50
in
46:50
business
46:50
to
46:50
talk
46:51
to
46:51
those
46:51
you
46:51
work
46:51
with.
46:52
Yes.
46:52
100
46:53
I,
46:53
I
46:53
think
46:53
I
46:53
would
46:54
wholeheartedly
46:54
agree
46:54
with
46:54
that.
46:55
All
46:55
right,
46:55
well,
46:55
we've
46:56
come
46:56
to
46:56
the
46:56
end
46:56
of
46:57
today's
46:57
interview
46:58
and
46:58
you
46:59
know,
46:59
I've
46:59
saved
46:59
the
47:00
best
47:00
for
47:00
last.
47:00
As
47:01
I
47:01
mentioned
47:01
at
47:01
the
47:01
outset,
47:02
this
47:02
is
47:02
our
47:02
Confessions
47:03
of
47:03
Supply
47:04
Chain
47:04
Executives
47:05
podcast.
47:05
And
47:06
so
47:06
I'm
47:06
going
47:06
to
47:06
ask
47:06
you
47:06
guys
47:07
to
47:07
both
47:07
make
47:07
a
47:07
confession.
47:08
And
47:08
Richard,
47:09
I'm
47:10
going
47:10
to
47:10
start
47:10
with
47:10
you.
47:11
And
47:12
my
47:12
question
47:12
for
47:12
you
47:13
is
47:14
confession
47:15
here.
47:15
What
47:15
is
47:15
the
47:16
uncomfortable
47:16
truth
47:17
about
47:17
out
47:17
of
47:17
stocks
47:18
that
47:18
most
47:18
retailers
47:19
you
47:19
think
47:20
don't
47:20
want
47:20
to
47:21
hear?
47:22
Well,
47:23
I
47:24
don't
47:24
know
47:24
if
47:24
it's
47:24
confessional,
47:24
but
47:25
the
47:25
easy
47:25
one
47:25
is
47:25
the
47:26
fact
47:26
that
47:26
they're
47:27
never
47:27
going
47:27
to
47:27
go
47:28
away.
47:28
Right.
47:28
Like,
47:30
we
47:30
can
47:30
work
47:30
to
47:30
make
47:31
them
47:31
more
47:32
predictable,
47:32
we
47:32
can
47:33
work
47:33
to
47:33
make
47:33
them
47:34
more
47:34
preventable.
47:35
But
47:35
I
47:35
would
47:36
perfection
47:36
isn't
47:37
the
47:37
goal.
47:38
What
47:38
you're
47:38
trying
47:38
to
47:38
do
47:38
is
47:38
just
47:39
make
47:39
yourself
47:39
resilient.
47:40
Right.
47:40
If
47:40
you
47:40
think
47:40
about
47:40
like
47:41
the
47:41
industry
47:41
leaders
47:42
today,
47:42
they
47:43
just
47:43
accept
47:43
that
47:43
disruptions
47:44
are
47:44
constant
47:45
and
47:46
they're
47:46
going
47:46
to
47:46
build
47:46
those
47:47
intelligent
47:47
connected
47:48
systems
47:48
that
47:48
can
47:49
sense
47:49
and
47:49
respond
47:51
faster
47:51
than
47:51
a
47:52
human
47:52
used
47:52
to
47:52
be
47:52
able
47:53
to.
47:53
Right.
47:54
The
47:54
ones
47:54
that
47:54
are
47:55
still
47:55
out
47:55
there
47:55
trying
47:55
to
47:55
chase
47:56
zero
47:56
stockouts,
47:57
I
47:57
mean,
47:57
they're
47:57
really
47:58
just
47:58
fighting
47:58
yesterday's
47:59
battle.
47:59
And
47:59
Richard,
48:00
do
48:00
you
48:01
feel
48:01
that
48:01
that's
48:01
the
48:01
mindset?
48:02
Do
48:02
you
48:02
have
48:02
to
48:02
like
48:03
a
48:03
culture
48:03
people
48:03
to
48:04
that
48:04
idea
48:04
when
48:04
you're
48:04
talking
48:05
to
48:05
them
48:05
across
48:05
the
48:05
boardrooms
48:06
as
48:06
you're
48:06
working
48:06
with
48:07
retailers?
48:07
Like,
48:07
are
48:08
there
48:08
people
48:08
that
48:08
think
48:09
perfection
48:10
is
48:10
an
48:11
attainable
48:11
goal?
48:12
Yes.
48:13
I
48:13
mean,
48:13
I
48:13
always
48:13
think
48:13
there's
48:14
a
48:14
million
48:14
different
48:14
versions
48:15
of
48:15
this,
48:15
but
48:15
I
48:15
love
48:16
the
48:16
saying
48:16
that
48:16
best
48:17
is
48:17
like
48:17
the
48:17
worst
48:17
enemy
48:18
of
48:18
better,
48:18
right?
48:18
Like,
48:19
yeah,
48:19
100%.
48:20
I
48:20
think
48:20
there
48:20
are
48:21
folks
48:21
that
48:21
they're
48:21
chasing
48:22
perfection
48:22
to
48:23
a
48:23
fault.
48:24
What
48:24
you
48:24
really
48:24
want
48:25
to
48:25
do
48:25
is
48:25
make,
48:25
especially
48:25
in
48:26
supply
48:26
chain
48:26
world
48:26
today,
48:27
you
48:27
want
48:27
to
48:27
be
48:27
resilient,
48:27
you
48:27
want
48:28
to
48:28
be
48:28
adaptable.
48:30
If
48:30
you
48:30
aim
48:31
at
48:31
perfection,
48:31
the
48:31
market's
48:32
just
48:32
going
48:32
to
48:32
shift
48:32
on
48:32
you
48:33
tomorrow.
48:33
And
48:33
now
48:33
your
48:33
definition
48:34
of
48:34
perfection
48:34
yesterday
48:35
is
48:35
not
48:36
the
48:36
definition
48:36
today.
48:37
Wow,
48:37
that's.
48:38
That
48:38
blows
48:38
my
48:38
mind
48:38
that,
48:39
that,
48:39
that's
48:39
that
48:40
we're
48:40
still
48:40
seeing
48:40
that
48:41
given.
48:41
Especially
48:41
given
48:42
everything
48:42
we
48:42
all
48:42
lived
48:43
through
48:43
during
48:43
the
48:43
pandemic.
48:44
All
48:44
right,
48:45
Eugene,
48:45
similar.
48:45
In
48:46
a
48:46
similar
48:46
vein,
48:47
similar
48:47
confession.
48:48
If
48:49
I
48:49
was
48:49
to
48:49
ask
48:49
you
48:49
to
48:49
confess
48:51
to
48:51
the
48:51
one
48:52
thing
48:53
you
48:53
would
48:53
like
48:53
retailers
48:54
or
48:54
brands
48:54
listening
48:55
to
48:55
this
48:55
podcast
48:56
to
48:56
take
48:56
away,
48:57
what
48:57
would
48:58
it
48:58
be?
48:58
I
48:59
would
48:59
say
49:00
start
49:00
small.
49:01
I've
49:01
been
49:01
in
49:01
so
49:01
many
49:01
conversations
49:02
where.
49:03
Right.
49:03
Again,
49:03
this
49:04
conversation
49:04
is
49:04
out
49:04
of
49:05
stock.
49:05
Okay,
49:06
out
49:06
of
49:06
stock.
49:06
I'm
49:06
going
49:07
to
49:07
go
49:07
and
49:08
replace
49:08
every
49:08
single
49:08
system
49:09
to
49:09
get
49:09
it
49:09
all
49:09
perfect.
49:10
Right.
49:10
And
49:10
again,
49:11
like
49:11
Richard
49:11
is
49:11
saying,
49:12
that's
49:12
going
49:12
to
49:12
be
49:12
a
49:13
lot
49:13
of
49:13
waste
49:14
of
49:14
time.
49:14
Start
49:15
with
49:15
one
49:15
problem.
49:16
Start
49:16
maybe
49:17
solving
49:18
specific
49:19
kind
49:19
of.
49:19
Okay,
49:20
everybody
49:20
knows
49:21
like
49:21
you
49:22
go
49:22
to
49:22
any
49:22
organization,
49:22
they'll
49:23
tell
49:23
you
49:23
10
49:23
problems
49:24
that
49:24
are
49:24
out
49:24
of
49:24
solve
49:25
if
49:25
you
49:25
bring
49:26
this
49:26
kind
49:26
of
49:27
systematic
49:28
view.
49:28
But
49:28
at
49:29
the
49:29
same
49:29
time,
49:29
like,
49:29
hey,
49:29
let
49:29
me
49:30
solve
49:30
one
49:30
problem.
49:30
You
49:31
get
49:31
the
49:31
small
49:31
win
49:32
and
49:32
then
49:32
you
49:32
move
49:32
on
49:33
to
49:33
the
49:33
next,
49:33
to
49:33
the
49:33
next,
49:34
to
49:34
the
49:34
next.
49:34
I
49:34
think
49:34
it
49:35
resonates
49:35
so
49:35
much
49:35
better
49:36
in
49:36
the
49:36
current
49:36
environment
49:38
and
49:38
you're
49:39
getting
49:39
benefits
49:39
along
49:40
this
49:40
path
49:41
versus
49:41
kind
49:41
of
49:42
saying,
49:42
hey,
49:42
let
49:42
me
49:42
go
49:42
and
49:43
address
49:43
the
49:43
whole
49:43
out
49:43
of
49:44
stock
49:44
situation
49:44
all
49:44
at
49:45
once.
49:45
Because
49:45
that
49:45
just
49:46
never
49:46
happens.
49:47
Never
49:47
works,
49:48
never
49:48
works.
49:48
Let
49:49
me
49:49
pressure
49:49
on
49:49
that
49:49
a
49:49
little
49:49
bit
49:50
too,
49:50
because
49:50
you
49:50
actually
49:50
surprised
49:51
me
49:51
a
49:51
little
49:51
bit.
49:51
Like
49:52
would
49:52
you
49:52
say
49:52
too
49:53
to
49:53
also
49:53
start
49:53
with
49:54
the
49:54
brain,
49:54
like
49:55
identifying
49:56
and
49:56
creating
49:56
the
49:56
brain
49:57
before
49:57
you,
49:58
you
49:58
go
49:58
and
49:58
solve
49:59
any
49:59
of
49:59
the
49:59
problems.
50:00
Like
50:00
how
50:00
does
50:01
piece
50:01
those
50:01
together
50:02
for
50:02
me?
50:02
Yeah,
50:02
yeah,
50:03
exactly.
50:03
That's
50:03
what
50:04
I
50:04
meant
50:04
by
50:04
systematic.
50:05
So
50:05
you
50:06
need.
50:06
So
50:06
that's
50:07
where,
50:07
that's
50:07
where
50:08
it's
50:08
more
50:08
art
50:08
than
50:09
the
50:09
science.
50:09
So
50:09
you
50:10
don't
50:10
want
50:10
to
50:10
do
50:10
kind
50:11
of
50:11
a
50:11
point
50:11
to
50:11
point
50:11
solution
50:12
saying,
50:12
oh,
50:12
I
50:13
have
50:13
out
50:13
of
50:13
stock
50:14
because
50:14
between
50:15
a
50:15
point
50:15
of
50:15
sale
50:16
and
50:16
order
50:16
management,
50:16
let
50:16
me
50:17
just
50:17
build
50:17
some
50:17
integration
50:18
point
50:18
to
50:18
point.
50:19
Well,
50:19
now
50:19
it's
50:19
better.
50:20
You
50:20
want
50:21
to
50:21
kind
50:21
of
50:21
start
50:21
with
50:22
this
50:22
brain
50:22
because
50:22
that's
50:23
what
50:23
will
50:23
orchestrate
50:24
further
50:24
and
50:24
further.
50:24
But
50:25
at
50:25
the
50:25
same
50:25
time,
50:26
don't
50:26
build
50:27
out
50:27
this
50:27
kind
50:27
of
50:27
a
50:28
massive
50:28
thing
50:28
just
50:28
for
50:29
the
50:29
sake
50:29
of
50:29
it.
50:29
You
50:30
start
50:30
building
50:30
out
50:30
the
50:30
brain
50:31
and
50:31
you
50:31
train
50:31
the
50:32
brain
50:32
to
50:32
solve
50:33
the
50:33
specific
50:33
needs
50:33
and
50:34
then
50:34
you
50:34
keep
50:34
doing
50:34
more
50:35
and
50:35
more
50:35
and
50:35
more
50:35
there.
50:36
But
50:36
again,
50:37
very
50:37
often
50:38
there
50:38
are
50:39
almost
50:39
two
50:39
extremes.
50:39
You
50:40
can
50:40
start
50:40
with
50:40
something
50:41
very
50:41
massive
50:42
and
50:42
say
50:42
in
50:42
two
50:42
years
50:43
all
50:43
your
50:44
problems,
50:44
world
50:44
hunger
50:45
will
50:45
be
50:45
solved.
50:46
Never
50:46
happens.
50:47
Or
50:47
vice
50:47
versa.
50:48
Oh,
50:48
I
50:48
have
50:48
a
50:49
problem.
50:49
Let
50:49
me
50:49
throw
50:49
a
50:50
couple
50:50
consultants
50:51
or
50:51
a
50:51
couple
50:52
integration
50:52
touch
50:53
points
50:53
there.
50:53
And
50:54
like
50:54
that
50:54
that
50:55
problem
50:55
goes
50:55
away.
50:56
That
50:56
just
50:57
again,
50:57
more,
50:57
more
50:58
duct
50:58
tape
50:58
on
50:58
the
50:59
same
50:59
problem.
50:59
So
50:59
it's
51:00
definitely
51:00
a
51:00
bit
51:00
of
51:00
a
51:01
more
51:01
of
51:01
art
51:01
than
51:01
a
51:02
science
51:02
to
51:02
say
51:02
like
51:02
hey,
51:02
I
51:03
want
51:03
to
51:03
start
51:03
building
51:03
out
51:03
the
51:04
brain
51:04
to
51:04
control
51:04
out
51:05
of
51:05
stock
51:05
inventory
51:05
situation
51:06
but
51:06
at
51:06
the
51:07
same
51:07
time
51:07
I'm
51:07
gonna
51:07
solve
51:08
specific
51:08
business,
51:10
deliver
51:10
specific
51:11
business
51:11
value.
51:12
Wow,
51:12
what
51:12
a
51:13
great
51:13
conversation,
51:13
Eugene.
51:14
Richard,
51:14
thank
51:15
you
51:15
both.
51:15
I
51:15
mean
51:16
for
51:16
those
51:16
listening,
51:16
like
51:16
we
51:17
covered
51:17
a
51:17
lot
51:18
of
51:18
ground
51:18
today
51:18
and
51:18
that
51:19
was
51:19
intentional
51:19
because
51:20
you
51:20
know,
51:20
in
51:21
the
51:21
outset
51:21
in
51:21
terms
51:21
of
51:22
designing
51:22
this
51:22
podcast,
51:23
I
51:23
really
51:23
want
51:23
to
51:23
go
51:24
into
51:24
in
51:24
depth
51:25
all
51:25
the
51:25
things
51:26
that
51:26
can
51:26
create
51:26
an
51:27
out
51:27
of
51:27
stock
51:27
and
51:27
showcase
51:28
for
51:29
everyone
51:29
listening
51:30
just
51:30
how
51:30
complicated
51:31
the
51:31
solution,
51:32
not
51:32
the
51:32
solution,
51:32
but
51:33
the
51:33
problem
51:33
can
51:33
be
51:34
and
51:34
all
51:34
the
51:35
different
51:35
ways
51:35
you
51:35
could
51:35
potentially
51:36
approach
51:36
it.
51:36
And
51:36
then
51:37
these
51:37
guys
51:37
are
51:37
the
51:37
true
51:38
experts
51:38
and
51:38
I
51:38
think
51:38
they
51:39
understand
51:39
it
51:39
as
51:40
well,
51:40
if
51:40
not
51:40
better
51:40
than
51:41
anyone
51:41
on
51:42
how
51:42
to
51:43
tackle
51:43
your
51:43
out
51:43
of
51:43
stock
51:44
problems
51:44
as
51:44
retailers
51:45
and
51:45
CBG
51:46
brands.
51:46
If,
51:47
if
51:47
our
51:47
listeners
51:48
want
51:48
to
51:48
get
51:48
in
51:48
touch
51:48
with
51:48
either
51:49
one
51:49
of
51:49
you,
51:49
what's
51:49
the
51:50
best
51:50
way
51:50
for
51:50
them
51:50
to
51:50
do
51:50
that?
51:51
Eugene,
51:51
why
51:51
don't
51:51
you
51:51
go
51:51
first
51:52
for.
51:52
Me
51:52
easiest
51:53
I
51:53
guess
51:53
is
51:53
Eugenefields.com
51:55
email
51:56
and
51:56
would
51:57
love
51:57
to
51:57
kind
51:57
of
51:57
get
51:57
in
51:58
touch
51:58
LinkedIn.
51:58
Anything
51:58
is
51:59
fine.
52:00
This
52:00
is
52:00
the
52:01
one
52:01
topic
52:01
that
52:01
I
52:02
can
52:02
stay
52:02
up
52:02
all
52:02
night
52:03
and
52:03
just
52:03
talk
52:03
about
52:03
it
52:04
as
52:04
probably
52:04
you've
52:04
noticed.
52:06
I
52:06
know.
52:06
Well,
52:06
I
52:06
said
52:07
at
52:07
the
52:07
outset
52:07
you
52:07
are
52:07
my
52:07
go
52:08
to
52:08
guy
52:08
on
52:08
every
52:09
question
52:09
related
52:09
to
52:10
this.
52:10
You
52:10
and
52:11
you
52:11
and
52:11
one
52:11
of
52:11
your,
52:11
you
52:12
and
52:12
your
52:12
colleagues
52:12
are
52:13
my
52:13
speed
52:14
dial
52:14
on
52:14
this
52:15
topic.
52:15
So
52:15
Richard,
52:16
same
52:16
question
52:16
to
52:16
you.
52:16
What's
52:17
the
52:17
best
52:17
way
52:17
for
52:17
people
52:17
to
52:17
get
52:17
in
52:17
touch
52:18
with
52:18
you?
52:18
Yeah,
52:19
same
52:19
answer.
52:19
I'm
52:19
Richard@infios.com
52:21
or
52:21
go
52:21
out
52:21
there,
52:22
visit
52:22
our
52:22
website.
52:22
It's
52:23
up
52:23
on
52:23
LinkedIn.
52:24
There's
52:24
a
52:24
variety
52:25
of
52:25
channels.
52:25
Eugene,
52:26
I'm
52:26
a
52:26
good.
52:27
And
52:27
Richard
52:27
Stewart
52:27
of
52:27
Infios,
52:28
thank
52:28
you
52:29
so
52:29
much
52:29
to
52:30
both
52:30
of
52:30
you
52:30
for
52:30
joining
52:30
us
52:31
on
52:31
Confessions
52:32
of
52:32
a
52:32
Supply
52:33
Chain
52:33
Executive.
52:34
Appreciate
52:34
you
52:34
walking
52:35
through
52:35
the
52:35
conversation
52:35
and
52:36
helping
52:36
us
52:36
solve
52:36
it.
52:36
Thanks
52:37
for
52:37
having
52:37
us
52:37
here.
52:37
I'm
52:38
Chris
52:38
Walton
52:38
and
52:38
this
52:38
has
52:39
been
52:39
Confessions
52:39
of
52:39
a
52:40
Supply
52:40
Chain
52:40
Executive.
52:40
And
52:41
never
52:41
forget
52:41
Omnitalk
52:42
fans,
52:42
confessions
52:43
are
52:44
almost
52:44
always
52:44
good
52:45
for
52:45
the
52:45
soul.
52:46
Be
52:46
careful
52:46
out
52:47
there.