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Why Supply Chain Confidence and Supply Chain Visibility Aren't the Same Thing: Healthcare Packaging · Through the Line: Packaging and Processing

• 0:03
  SPEAKER_01: Welcome to Through the Line, a podcast exploring innovations and information across the packaging and processing landscape.
• 0:11
  SPEAKER_01: From topics impacting consumer packaged goods and healthcare packaging to the latest technologies in food processing operations.
• 0:22
  SPEAKER_00: Hi, Liz Cunio here, editor-in-chief of healthcare packaging.
• 0:25
  SPEAKER_00: What follows is an AI-generated podcast about a recent article on our site about GS1 standards, standardized data, and the healthcare supply chain.
• 0:33
  SPEAKER_00: Listen in to learn how these digital practices foster better collaboration between partners and allow for more precise responses to product recalls or shortages.
• 0:42
  SPEAKER_02: Today we are exploring how data standardization and real-time traceability are transforming healthcare packaging from a simple protective container into a strategic competitive advantage.
• 0:54
  SPEAKER_02: And welcome to the deep dive.
• 0:55
  SPEAKER_03: Yeah, thanks for having me.
• 0:56
  SPEAKER_03: This is it's quite a topic today.
• 0:57
  SPEAKER_02: It really is.
• 0:58
  SPEAKER_02: We are we're examining this fundamental shift in the packaging and processing industry, and it's moving away from just treating regulatory compliance as the ultimate finish line.
• 1:08
  SPEAKER_03: Yeah, the bare minimum.
• 1:10
  SPEAKER_02: Exactly.
• 1:10
  SPEAKER_02: Instead, the most resilient organizations, they're treating compliance as this necessary foundation for a highly connected supply chain ecosystem.
• 1:18
  SPEAKER_02: Absolutely.
• 1:19
  SPEAKER_02: So we're drawing our insights today from a really comprehensive article by Liz Caneo.
• 1:25
  SPEAKER_02: Oh, yeah.
• 1:25
  SPEAKER_02: And she breaks down this new research released by GS1 US.
• 1:29
  SPEAKER_02: The report surveyed more than 500 supply chain professionals.
• 1:32
  SPEAKER_03: That's a good sample size.
• 1:33
  SPEAKER_02: And they operate across healthcare, food service, grocery, and retail sectors.
• 1:38
  SPEAKER_02: And the data reveals this massive visibility gap in how products actually move around the globe.
• 1:45
  SPEAKER_02: Okay, let's unpack this by starting with a rather startling contradiction that's highlighted right at the beginning of the research.
• 1:52
  SPEAKER_03: Yeah, that contradiction is it's what we should call the visibility paradox.
• 1:56
  SPEAKER_02: Visibility paradox.
• 1:57
  SPEAKER_03: And the survey data behind it is incredibly revealing.
• 2:01
  SPEAKER_03: According to the research, an overwhelming 99% of organizations express high confidence in their ability to manage supply chain disruptions.
• 2:10
  SPEAKER_02: 99%.
• 2:12
  SPEAKER_03: So on the surface, that statistic projects a highly secure, capable industry.
• 2:18
  SPEAKER_02: Sure.
• 2:18
  SPEAKER_03: Yet in the very same survey, 43% of those exact same respondents admitted they actively struggle to maintain complete visibility across their supply chain.
• 2:29
  SPEAKER_02: Oh.
• 2:29
  SPEAKER_02: Wait, so they're confident they can manage disruptions, but almost half admit they can't even see the whole chain?
• 2:33
  SPEAKER_03: Exactly.
• 2:34
  SPEAKER_03: They cited these persistent pain points like loss prevention, monitoring environmental conditions, sustainability verification, and just responding to evolving regulations.
• 2:44
  SPEAKER_02: Yeah.
• 2:44
  SPEAKER_03: Claiming you can handle any disruption while simultaneously admitting you cannot see your entire supply chain, that's a massive operational vulnerability.
• 2:53
  SPEAKER_02: That's huge.
• 2:54
  SPEAKER_03: And this is especially true for the healthcare sector, where the stakes are quite literally life and death.
• 3:01
  SPEAKER_02: Yeah, the demands of healthcare packaging make that lack of visibility terrifying.
• 3:06
  SPEAKER_02: We are not talking about shipping boxes of sneakers here.
• 3:09
  SPEAKER_03: No, definitely not.
• 3:10
  SPEAKER_02: Cold chain pharmaceuticals require continuous temperature monitoring from the exact moment they leave the manufacturing line all the way through the distribution network to the pharmacy.
• 3:20
  SPEAKER_02: Yep.
• 3:21
  SPEAKER_02: And medical devices, they are increasingly subject to strict, unique device identification tracking throughout their whole life cycle.
• 3:28
  SPEAKER_03: Absolutely.
• 3:29
  SPEAKER_02: Like a pacemaker, for example.
• 3:30
  SPEAKER_02: A pacemaker must be tracked down to the individual surgical tray.
• 3:34
  SPEAKER_03: And sterile products require this completely unassailable chain of custody documentation just to prove they have not been compromised.
• 3:43
  SPEAKER_03: Hospital systems expect immediate, perfect access to this product data during recalls or critical shortages.
• 3:51
  SPEAKER_02: That is exactly why this visibility paradox is so dangerous.
• 3:55
  SPEAKER_02: It's it's like we can visualize the modern supply chain as a massive, complex relay race.
• 4:01
  SPEAKER_03: Oh, that's a good way to look at it.
• 4:02
  SPEAKER_02: Yeah.
• 4:02
  SPEAKER_02: Going back to the survey data, 99% of the runners are highly confident they can finish the race.
• 4:07
  SPEAKER_02: However, almost half of those runners are admitting that they cannot actually see the baton during the handoffs.
• 4:13
  SPEAKER_03: Yeah, they're just reaching out into the dark.
• 4:15
  SPEAKER_02: Exactly.
• 4:15
  SPEAKER_02: In the packaging and processing industry, every single time a product changes hands from the manufacturer to the logistics provider to the regional distributor to the hospital, a handoff occurs.
• 4:27
  SPEAKER_02: Every single handoff generates critical data.
• 4:30
  SPEAKER_02: Therefore, every missing data point introduces a new element of risk to the patient and the enterprise.
• 4:35
  SPEAKER_03: And I want to clarify what we mean by visibility in this context, because the article makes a crucial distinction regarding this risk.
• 4:42
  SPEAKER_02: Okay.
• 4:42
  SPEAKER_02: What's the distinction?
• 4:44
  SPEAKER_03: Visibility is not simply about knowing the physical geographic location of a product.
• 4:48
  SPEAKER_03: Knowing a palette of medicine is in a warehouse in Chicago, that's not enough.
• 4:52
  SPEAKER_01: No.
• 4:53
  SPEAKER_03: True visibility means understanding the product's exact physical condition, its verified identity, its historical provenance, and its current regulatory status throughout the entire life cycle.
• 5:06
  SPEAKER_03: Without that specific contextual data, the baton is essentially dropped, even if you know the geographic location of the box.
• 5:14
  SPEAKER_02: Yeah, building directly on your relay race analogy, if losing sight of the baton during a handoff is the primary problem, then data standardization is the mechanism that fixes it.
• 5:24
  SPEAKER_02: Yes.
• 5:25
  SPEAKER_02: Standardization is not just painting the baton a bright color, it is placing a high-tech GPS and environmental tracker inside the baton.
• 5:32
  SPEAKER_03: That's it exactly.
• 5:33
  SPEAKER_02: It means you no longer have to physically see the runner to know exactly how fast they're moving, what the temperature of the baton is, and exactly when they will arrive.
• 5:41
  SPEAKER_03: And the research provides really clear evidence to support this technological upgrade.
• 5:45
  SPEAKER_02: What are the numbers?
• 5:46
  SPEAKER_03: So 77% of companies that report full adoption of GS1 standards also report high confidence in managing supply chain disruptions.
• 5:54
  SPEAKER_03: Okay.
• 5:55
  SPEAKER_03: Compare that to only 50% among organizations with partial adoption and a mere 25% among companies that are just considering implementation.
• 6:04
  SPEAKER_02: The report mentions specific standards driving this confidence too, right?
• 6:08
  SPEAKER_02: Like the global trade item number or GTIN.
• 6:11
  SPEAKER_03: Yeah, GTIN, GS118 barcodes, two-dimensional barcodes, and RFID technologies.
• 6:17
  SPEAKER_02: We should define how these function in practice.
• 6:19
  SPEAKER_02: When a company fully implements a GS118 barcode, they are not just putting a standard price scanner sticker on a box.
• 6:26
  SPEAKER_03: No, not at all.
• 6:27
  SPEAKER_02: Traditional barcodes essentially just tell a database what the product is.
• 6:31
  SPEAKER_02: In contrast, these standardized identifiers embed dynamic data into a single scannable moment.
• 6:37
  SPEAKER_03: A single scan can communicate the specific badge number, the exact expiration date, and the precise facility where it was manufactured.
• 6:45
  SPEAKER_02: It's so much more data.
• 6:46
  SPEAKER_02: And the article features a really compelling quote from Ed Bonin.
• 6:49
  SPEAKER_02: He's the director of enterprise traceability and compliance at Walmart.
• 6:52
  SPEAKER_03: Oh, yeah, originally published in Packaging World.
• 6:54
  SPEAKER_02: He argues that compliance shouldn't be the finish line.
• 6:58
  SPEAKER_02: It should be the starting point.
• 6:59
  SPEAKER_03: Yep.
• 6:59
  SPEAKER_02: When you standardize on GS1, you stop merely recording data and you start actually seeing your supply chain.
• 7:07
  SPEAKER_03: Yeah.
• 7:07
  SPEAKER_03: But I have to push back here on behalf of the operations and floor managers listening to this deep dive.
• 7:12
  SPEAKER_02: Okay, let's hear it.
• 7:13
  SPEAKER_03: If I am running a high-speed pharmaceutical packaging line, my primary goal is getting the product safely into the box and out the door efficiently.
• 7:22
  SPEAKER_03: Adding complex serialization protocols, integrating high-density, two-dimensional barcodes, and managing robust data structures inherently requires more equipment, more equipment, more software, and more steps on the line.
• 7:35
  SPEAKER_03: Objectively, this introduces new variables.
• 7:38
  SPEAKER_03: You cannot deny that adding these data requirements creates a potential bottleneck that could slow down operations and decrease overall equipment effectiveness.
• 7:47
  SPEAKER_02: I see where you're going with this.
• 7:48
  SPEAKER_03: So how does the research justify that bottleneck against the reality of demanding production quotas?
• 7:54
  SPEAKER_02: That is a very valid operational concern.
• 7:56
  SPEAKER_02: And the research actually counters that skepticism by shifting the focus from raw line speed to overall supply chain robustness and data integrity.
• 8:06
  SPEAKER_02: Okay.
• 8:06
  SPEAKER_02: The article cites insights from Aladin Alcowam.
• 8:09
  SPEAKER_02: He is an industry consultant and supply chain security expert.
• 8:13
  SPEAKER_03: I'm familiar with his work.
• 8:14
  SPEAKER_02: And he emphasizes that in regulated pharmaceutical environments, serialization, labeling, packaging controls, and data integrity are absolutely paramount.
• 8:24
  SPEAKER_03: Paramount, yeah.
• 8:25
  SPEAKER_02: The ultimate goal is not merely speed, but accuracy and security.
• 8:29
  SPEAKER_02: Instead of viewing these data requirements as a bottleneck, we must view them as the core mechanism that makes the entire supply chain resilient.
• 8:36
  SPEAKER_02: And to understand how we have to look at how the data is managed after it leaves the packaging line.
• 8:42
  SPEAKER_03: So the argument is that the slight reduction in initial line speed is a worthwhile trade-off for downstream security.
• 8:49
  SPEAKER_03: Exactly.
• 8:49
  SPEAKER_03: What does the survey day to validate that trade-off?
• 8:51
  SPEAKER_02: The validation comes from looking at the consequences of poor data management.
• 8:55
  SPEAKER_02: The survey reveals that 68% of organizations using centralized data management systems express strong confidence in the accuracy of their data.
• 9:06
  SPEAKER_02: In stark contrast, only 29% of organizations relying on decentralized or manual integration approaches trusted their data.
• 9:14
  SPEAKER_03: Just 29%.
• 9:26
  SPEAKER_03: Oh, that's just asking for trouble.
• 9:28
  SPEAKER_02: If they make a single typo, that entire palette of critical medication effectively disappears from the enterprise inventory system.
• 9:34
  SPEAKER_03: It's just gone.
• 9:36
  SPEAKER_02: A centralized standardized system means the automated scan at the loading dock seamlessly updates the master database without human intervention.
• 9:43
  SPEAKER_02: Manual processes and fragmented systems are what actually slow down operations and introduce catastrophic errors during a disruption.
• 9:51
  SPEAKER_02: Standardized data management streamlines the entire process, ultimately making the operation faster and far more reliable overall.
• 9:59
  SPEAKER_03: That transition from the digital data to the physical floor is vital because the data ultimately has to live somewhere in the physical world.
• 10:07
  SPEAKER_03: That somewhere is the package itself.
• 10:09
  SPEAKER_03: The label, the barcode, and the physical container serve as the exact point where the digital realm meets the physical realm.
• 10:17
  SPEAKER_03: The article identifies a massive paradigm shift happening in the industry right now regarding this concept.
• 10:22
  SPEAKER_02: Yeah.
• 10:23
  SPEAKER_03: Traceability is no longer viewed merely as an external regulatory burden forced upon manufacturers by government agencies.
• 10:29
  SPEAKER_02: No, not anymore.
• 10:30
  SPEAKER_03: It is actively becoming a massive competitive advantage.
• 10:33
  SPEAKER_03: The physical packages are no longer just protective containers designed solely to prevent breakage or contamination.
• 10:39
  SPEAKER_02: They are functioning as digital gateways like that.
• 10:42
  SPEAKER_03: They act as the primary connection point, linking the physical products to complex enterprise systems, global regulatory databases, and frontline healthcare providers.
• 10:51
  SPEAKER_03: What's fascinating here is the sheer scope of capabilities that this digital gateway enables for healthcare manufacturers.
• 10:58
  SPEAKER_02: Yeah.
• 10:59
  SPEAKER_03: We are moving far beyond the traditional limited supply chain models of tracing a product merely one step forward to the buyer and one step backward to the supplier.
• 11:08
  SPEAKER_02: The old one-up, one-down model.
• 11:11
  SPEAKER_03: Exactly.
• 11:11
  SPEAKER_03: Today, effective traceability means executing highly precise recalls down to the specific lot or batch level instantly.
• 11:18
  SPEAKER_03: Instantly.
• 11:19
  SPEAKER_03: It means actively preventing counterfeit products from entering the legitimate supply chain by allowing a pharmacist to authenticate a package in real time before dispensing it.
• 11:27
  unknown: Wow.
• 11:28
  SPEAKER_03: It involves rigorously documenting all sourcing and manufacturing information and sharing that standardized product data seamlessly with trading partners.
• 11:36
  SPEAKER_02: And the stark dividing line in the industry is really clear in the survey data here.
• 11:39
  SPEAKER_03: Yeah.
• 11:40
  SPEAKER_02: 68% of companies with full GS1 standards adoption report having highly effective traceability processes.
• 11:47
  SPEAKER_02: Conversely, 0% of the organizations with no plans to adopt GS1 standards, reported effective traceability capabilities.
• 11:56
  SPEAKER_02: 0%.
• 11:57
  SPEAKER_02: As regulatory expectations continue to expand worldwide, lacking these digital gateway capabilities represents an existential threat to a healthcare packaging operation.
• 12:07
  SPEAKER_03: But wait, creating this flawless digital gateway on the packaging floor only solves half the problem.
• 12:13
  SPEAKER_03: If the logistics provider in transit or the hospital system on the receiving end is using completely incompatible legacy software, doesn't that gateway hit a brick wall?
• 12:22
  SPEAKER_03: A digital gateway is ultimately useless if the systems on the other side of it do not speak the same digital language.
• 12:29
  SPEAKER_02: That's a great point.
• 12:30
  SPEAKER_03: The survey reveals that 99% of respondents identified collaboration with trading partners as absolutely essential for harmonizing supply chain operations.
• 12:38
  SPEAKER_03: Everyone in the industry seems to agree the seamless data exchange across customers, suppliers, contract manufacturers, and logistics providers is a universal need.
• 12:48
  SPEAKER_03: If the consensus is so overwhelmingly unified, why isn't this seamless collaboration happening organically?
• 12:55
  SPEAKER_02: The report identifies two major obstacles preventing that seamless collaboration.
• 13:00
  SPEAKER_02: The first is technological integration challenges.
• 13:02
  SPEAKER_02: Okay.
• 13:03
  SPEAKER_02: And the second is misaligned priorities between trading partners.
• 13:07
  SPEAKER_02: Healthcare organizations experience these friction points constantly when attempting to exchange product master data, regulatory documentation, or highly specific serialized information across multiple incompatible enterprise systems.
• 13:21
  SPEAKER_02: Oh, I bet.
• 13:22
  SPEAKER_02: For example, if a manufacturer codes their products using a proprietary internal numbering system, the hospital receiving those products has to manually translate those numbers into their own internal system.
• 13:34
  SPEAKER_02: Oh, what a nightmare.
• 13:35
  SPEAKER_02: That translation process is slow, expensive, and highly prone to error.
• 13:39
  SPEAKER_02: Standardized product identification is the mechanism that smooths out these exact friction points.
• 13:44
  SPEAKER_03: So the standardization acts as a like a universal translator for the entire EDO system.
• 13:49
  SPEAKER_02: Precisely.
• 13:50
  SPEAKER_02: Utilizing shared global data structures enables faster onboarding of new partners, drastically fewer data errors, and vastly more efficient inventory management.
• 14:00
  SPEAKER_02: Aleid and Aquam points out that in the pharmaceutical industry, manufacturers are currently navigating intense geopolitical uncertainty, rapidly shifting customer demand, and constantly evolving regulatory expectations.
• 14:13
  SPEAKER_02: To survive these external challenges, companies need extreme flexibility and visibility regarding material availability and inventory levels.
• 14:21
  SPEAKER_03: Oh true.
• 14:22
  SPEAKER_02: Standardized data sharing gets everyone singing from the same sheet of music.
• 14:26
  SPEAKER_02: It prevents stockouts during a global disruption because every partner in the chain can instantly see exactly what inventory is available, where it is located, and when it expires using a common digital language.
• 14:37
  SPEAKER_03: Here's where it gets really interesting because the report connects this improved digital efficiency to an area you might not immediately expect.
• 14:45
  SPEAKER_03: Oh.
• 14:46
  SPEAKER_03: Environmental sustainability.
• 14:48
  SPEAKER_02: Sustainability.
• 14:49
  SPEAKER_03: Yep.
• 14:49
  SPEAKER_03: Healthcare packaging faces a unique and stubborn bottleneck regarding sustainability.
• 14:54
  SPEAKER_03: Unlike consumer goods packaging, where a brand can often easily swap virgin plastic for recycled cardboard or molded bamboo.
• 15:02
  SPEAKER_02: You can't just do that with a syringe.
• 15:04
  SPEAKER_03: Exactly.
• 15:04
  SPEAKER_03: Healthcare packaging is strictly governed by severe physical constraints.
• 15:08
  SPEAKER_03: Sterility requirements are completely non-negotiable.
• 15:11
  SPEAKER_02: Non-negotiable, right.
• 15:13
  SPEAKER_03: Material compatibility with highly potent drugs is strictly regulated to prevent dangerous chemical leaching.
• 15:18
  SPEAKER_03: Barrier performance to prevent oxygen or moisture degradation must be absolutely perfect over a multi-year shelf life.
• 15:25
  SPEAKER_02: Wow, yeah.
• 15:26
  SPEAKER_03: These factors severely limit the options for physically redesigning a medical package with greener materials.
• 15:31
  SPEAKER_03: Yet the survey shows 99% of organizations still consider sustainability highly important.
• 15:37
  SPEAKER_03: Sure.
• 15:38
  SPEAKER_03: The surprising finding is how data-driven efficiency directly bypasses this material bottleneck to advance sustainability goals.
• 15:46
  SPEAKER_02: Oh, I see.
• 15:46
  SPEAKER_02: So for healthcare companies, the next evolutionary phase of sustainability relies heavily on information rather than simply material substitution.
• 15:54
  SPEAKER_03: Yes, exactly.
• 15:55
  SPEAKER_02: The report outlines several specific examples where better data creates measurable sustainability improvements without compromising the physical integrity of the package.
• 16:04
  SPEAKER_03: Let's hear them.
• 16:04
  SPEAKER_02: First, improved traceability directly reduces the sheer volume of waste generated from expired inventory.
• 16:11
  SPEAKER_02: When a manufacturer or hospital knows exactly where every single product is and its exact expiration date, they can route older inventory to areas with higher immediate demand.
• 16:22
  SPEAKER_03: Ensuring it is used before it must be destroyed.
• 16:24
  SPEAKER_02: That makes perfect sense.
• 16:26
  SPEAKER_02: If you cannot see the expiration dates across your network, you are forced to overorder to guarantee availability, which inevitably leads to massive waste.
• 16:34
  SPEAKER_03: Exactly, which leads directly to the second point.
• 16:37
  SPEAKER_03: Highly accurate data forecasting minimizes that exact type of industrial overproduction.
• 16:42
  SPEAKER_02: Oh, sure.
• 16:43
  SPEAKER_03: Manufacturing complex pharmaceuticals requires immense amounts of energy, water, and raw materials.
• 16:49
  SPEAKER_03: By using shared data to precisely match production to actual network demand, companies prevent the environmental cost of manufacturing products that will never be used.
• 16:58
  SPEAKER_02: That's a huge impact.
• 17:00
  SPEAKER_03: Third, connected packaging technologies enable incredibly targeted, precise recalls.
• 17:06
  SPEAKER_03: Historically, if a potential defect was discovered, a company might be forced to execute a blind recall.
• 17:12
  SPEAKER_02: Broadly discarding thousands of potentially unimpacted products.
• 17:16
  SPEAKER_03: Out of an abundance of caution, simply because they could not separate the good from the bad.
• 17:20
  SPEAKER_03: Today, utilizing the digital gateway, a company can isolate and recall only the specific impacted batch.
• 17:26
  SPEAKER_03: This mathematically limits unnecessary product disposal.
• 17:30
  SPEAKER_02: That's amazing.
• 17:30
  SPEAKER_03: Furthermore, digital product information significantly reduces the physical documentation burdens, saving paper and streamlining the physical weight of logistics shipments.
• 17:40
  SPEAKER_03: The conclusion drawn by the research is undeniable.
• 17:43
  SPEAKER_02: Yeah.
• 17:43
  SPEAKER_03: Better data in many practical healthcare applications directly equates to better sustainability.
• 17:49
  SPEAKER_02: If we connect this to the bigger picture, the report synthesizes several core characteristics that define a truly resilient future supply chain.
• 17:58
  SPEAKER_02: These leading organizations share a foundational commitment to standardized data and centralized information systems.
• 18:05
  SPEAKER_02: They heavily leverage automation to remove manual data entry errors.
• 18:09
  SPEAKER_02: They prioritize active, seamless collaboration across their trading partners, they maintain constant regulatory readiness, they push for technological innovation on the packaging floor, and they integrate sustainability into their core operations through data efficiency.
• 18:25
  SPEAKER_02: Organizations investing in standardized identification, real-time data flow, and intelligent packaging technologies are building systems capable of responding instantly to global disruptions.
• 18:35
  SPEAKER_02: They are adapting fluidly to changing global regulations, and ultimately, they are protecting patients by achieving total visibility and operational confidence.
• 18:44
  SPEAKER_03: For the packaging and processing professionals listening, the core takeaway here is a fundamental redefinition of your role.
• 18:50
  SPEAKER_03: Your job is no longer just executing the final step in the physical manufacturing process.
• 18:54
  SPEAKER_03: You are actively building the physical and digital connection that protects patients and allows the entire global ecosystem to adapt to disruptions.
• 19:04
  SPEAKER_02: You are building the digital gateway.
• 19:06
  SPEAKER_03: Exactly.
• 19:07
  SPEAKER_02: Which leaves us with a critical question to consider based on everything we have explored today regarding this massive industry shift.
• 19:14
  SPEAKER_02: If the physical package is now the vital digital link between a life-saving product, the global regulatory database, and the final patient, is the information printed on the outside of the box rapidly becoming just as critical to patient survival as the medicine inside.
• 19:30
  SPEAKER_01: Thank you for listening to Through the Line Packaging and Processing.
• 19:34
  SPEAKER_01: You can listen to more episodes on all streaming platforms.
• 19:38
  SPEAKER_01: Be sure to visit us at packworld.com, profoodworld.com, and healthcarepackaging.com for more packaging and processing news.
• 19:47
  SPEAKER_01: This podcast was edited by Bree Guns.