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Confessions Of Supply Chain Executives | Why 2025 Became Retail’s “Vanilla” Year · Omni Talk Retail

• 0:00
  It's
• 0:00
  been
• 0:00
  one
• 0:01
  year
• 0:01
  since
• 0:01
  today's
• 0:02
  guest's
• 0:02
  last
• 0:03
  confession.
• 0:04
  That's
• 0:04
  how
• 0:04
  I'm
• 0:04
  starting
• 0:05
  today's
• 0:05
  episode.
• 0:05
  Because
• 0:06
  2025
• 0:07
  was
• 0:08
  the
• 0:08
  year
• 0:08
  supply
• 0:08
  chain
• 0:09
  executives
• 0:09
  had
• 0:09
  to
• 0:10
  make
• 0:10
  a
• 0:10
  choice.
• 0:10
  They
• 0:10
  could
• 0:11
  sit
• 0:11
  tight
• 0:11
  and
• 0:11
  wait
• 0:12
  or
• 0:12
  take
• 0:13
  a
• 0:13
  calculated
• 0:13
  risk
• 0:14
  in
• 0:14
  uncertain
• 0:15
  times.
• 0:16
  Here's
• 0:16
  the
• 0:16
  confession
• 0:17
  you
• 0:17
  are
• 0:17
  going
• 0:18
  to
• 0:18
  hear
• 0:18
  from
• 0:19
  my
• 0:19
  guest
• 0:19
  today,
• 0:20
  and
• 0:20
  that
• 0:21
  is
• 0:21
  that
• 0:21
  retailers
• 0:21
  are
• 0:21
  holding
• 0:22
  more
• 0:22
  inventory
• 0:23
  than
• 0:23
  ever.
• 0:23
  Not
• 0:24
  because
• 0:24
  they
• 0:24
  want
• 0:24
  to,
• 0:25
  because,
• 0:25
  but
• 0:25
  because
• 0:26
  they're
• 0:26
  afraid.
• 0:27
  They're
• 0:27
  spending
• 0:27
  a
• 0:28
  third
• 0:28
  of
• 0:28
  their
• 0:28
  warehouse
• 0:29
  labor
• 0:29
  on
• 0:29
  managing
• 0:29
  spreadsheets
• 0:30
  and
• 0:30
  manual
• 0:31
  planning.
• 0:31
  And
• 0:31
  despite
• 0:32
  billions
• 0:32
  in
• 0:33
  automation
• 0:33
  investment,
• 0:34
  many
• 0:35
  are
• 0:35
  still
• 0:35
  flying
• 0:36
  blind
• 0:37
  because
• 0:37
  2025
• 0:38
  wasn't
• 0:39
  the
• 0:39
  year
• 0:39
  of
• 0:39
  innovation,
• 0:40
  it
• 0:40
  was
• 0:41
  the
• 0:41
  year
• 0:41
  of
• 0:41
  survival.
• 0:42
  Today
• 0:43
  we're
• 0:43
  going
• 0:43
  to
• 0:43
  talk
• 0:43
  about
• 0:44
  what
• 0:44
  that
• 0:44
  really
• 0:44
  means
• 0:45
  and
• 0:46
  what
• 0:46
  comes
• 0:46
  next.
• 0:48
  Welcome
• 0:48
  to
• 0:48
  Confessions
• 0:49
  of
• 0:49
  a
• 0:49
  Supply
• 0:50
  Chain
• 0:50
  Executive,
• 0:50
  the
• 0:51
  podcast
• 0:51
  where
• 0:51
  we
• 0:51
  get
• 0:52
  brutally
• 0:52
  honest
• 0:53
  about
• 0:53
  the
• 0:53
  challenges,
• 0:54
  failures
• 0:54
  and
• 0:55
  celebrate
• 0:55
  the
• 0:56
  victories
• 0:56
  in
• 0:57
  retail
• 0:57
  supply
• 0:58
  chains.
• 0:58
  I'm
• 0:59
  your
• 0:59
  host,
• 0:59
  Chris
• 0:59
  Walton,
• 1:00
  and
• 1:00
  today
• 1:00
  we're
• 1:00
  going
• 1:00
  to
• 1:00
  take
• 1:01
  a
• 1:01
  hard
• 1:01
  look
• 1:01
  at
• 1:01
  2025,
• 1:03
  a
• 1:03
  year
• 1:03
  that
• 1:03
  today's
• 1:04
  confessor
• 1:04
  is
• 1:04
  calling
• 1:05
  vanilla.
• 1:06
  But
• 1:07
  vanilla
• 1:08
  doesn't
• 1:08
  mean
• 1:08
  simple.
• 1:09
  It
• 1:09
  means
• 1:10
  executives
• 1:10
  are
• 1:10
  paralyzed
• 1:11
  by
• 1:11
  uncertainty,
• 1:12
  making
• 1:12
  incremental
• 1:13
  moves
• 1:14
  while
• 1:14
  their
• 1:14
  competitors
• 1:15
  do
• 1:15
  the
• 1:15
  same.
• 1:16
  My
• 1:17
  guest
• 1:17
  today
• 1:17
  is
• 1:17
  Kim
• 1:18
  Beaudry,
• 1:18
  market
• 1:19
  director
• 1:19
  at
• 1:19
  Domatic,
• 1:20
  one
• 1:20
  of
• 1:20
  the
• 1:20
  world's
• 1:21
  leading
• 1:21
  providers
• 1:22
  of
• 1:22
  warehouse
• 1:22
  automation
• 1:23
  and
• 1:23
  logistics.
• 1:24
  Sol
• 1:25
  Kim
• 1:25
  is
• 1:25
  a
• 1:25
  longtime
• 1:26
  friend
• 1:26
  of
• 1:26
  the
• 1:26
  show.
• 1:27
  We
• 1:27
  have
• 1:27
  interviewed
• 1:28
  her
• 1:28
  numerous
• 1:28
  times
• 1:28
  in
• 1:29
  the
• 1:29
  past.
• 1:29
  And
• 1:30
  every
• 1:30
  year
• 1:30
  we
• 1:31
  start
• 1:31
  the
• 1:31
  year
• 1:31
  off
• 1:32
  by
• 1:32
  getting
• 1:32
  her
• 1:33
  pulse
• 1:33
  on
• 1:34
  the
• 1:34
  state
• 1:34
  of
• 1:34
  supply
• 1:34
  chain
• 1:35
  automation
• 1:36
  and
• 1:36
  investment.
• 1:37
  Kim,
• 1:38
  welcome
• 1:38
  to
• 1:38
  Confessions
• 1:39
  of
• 1:39
  a
• 1:39
  Supply
• 1:39
  Chain
• 1:40
  Executive.
• 1:41
  It
• 1:41
  has
• 1:41
  been
• 1:41
  one
• 1:41
  year
• 1:42
  since
• 1:42
  your
• 1:42
  last
• 1:42
  confession,
• 1:43
  has
• 1:43
  it
• 1:43
  not?
• 1:44
  Yes.
• 1:45
  Yep.
• 1:46
  Like
• 1:46
  I
• 1:46
  said,
• 1:46
  I
• 1:46
  have
• 1:47
  a
• 1:47
  little
• 1:47
  bit
• 1:47
  of
• 1:47
  trauma
• 1:47
  when
• 1:48
  you
• 1:48
  use
• 1:48
  the
• 1:48
  word
• 1:48
  confession.
• 1:49
  But
• 1:50
  yeah,
• 1:50
  about
• 1:51
  that,
• 1:51
  I
• 1:51
  guess,
• 1:51
  Chris,
• 1:52
  we
• 1:52
  tend
• 1:53
  to
• 1:53
  like
• 1:53
  to
• 1:53
  talk
• 1:53
  to
• 1:53
  each
• 1:53
  other
• 1:53
  in
• 1:54
  January
• 1:54
  and
• 1:54
  February
• 1:55
  to
• 1:55
  get.
• 1:55
  Yeah,
• 1:55
  we
• 1:55
  do.
• 1:56
  We
• 1:57
  do.
• 1:57
  Yes.
• 1:57
  The
• 1:57
  recovering
• 1:58
  Catholic
• 1:58
  in
• 1:58
  both
• 1:58
  of
• 1:59
  us
• 1:59
  gets,
• 1:59
  gets
• 2:00
  a
• 2:00
  little.
• 2:00
  Gets
• 2:00
  a
• 2:00
  little
• 2:00
  ski.
• 2:01
  We
• 2:01
  get
• 2:01
  a
• 2:01
  little
• 2:01
  scared
• 2:01
  when
• 2:02
  we
• 2:02
  use
• 2:02
  that
• 2:02
  term.
• 2:02
  But
• 2:03
  hey,
• 2:03
  there's
• 2:03
  no
• 2:03
  Hail
• 2:04
  Marys
• 2:04
  in
• 2:04
  our
• 2:04
  Fathers
• 2:05
  with
• 2:05
  this
• 2:05
  one,
• 2:05
  Kim.
• 2:05
  No
• 2:06
  Hail
• 2:06
  Mary's
• 2:06
  in
• 2:06
  our
• 2:06
  Fathers.
• 2:07
  All
• 2:07
  right,
• 2:07
  well,
• 2:07
  let's
• 2:08
  get
• 2:08
  right
• 2:08
  to
• 2:08
  it.
• 2:08
  And
• 2:08
  I'm
• 2:08
  not
• 2:08
  going
• 2:09
  to,
• 2:09
  I'm
• 2:09
  not
• 2:09
  going
• 2:09
  to
• 2:09
  sugarcoat
• 2:10
  this
• 2:10
  at
• 2:10
  all,
• 2:11
  you
• 2:11
  know,
• 2:12
  in
• 2:12
  discussing,
• 2:12
  you
• 2:13
  know,
• 2:13
  and
• 2:13
  planning
• 2:14
  today's
• 2:14
  interview
• 2:14
  with
• 2:14
  you,
• 2:15
  you
• 2:16
  called
• 2:16
  2025,
• 2:18
  for
• 2:18
  lack
• 2:18
  of
• 2:18
  a
• 2:18
  better
• 2:18
  way
• 2:18
  to
• 2:18
  put
• 2:18
  it,
• 2:19
  quote
• 2:19
  unquote,
• 2:19
  vanilla.
• 2:20
  That.
• 2:21
  And
• 2:21
  that's
• 2:21
  not
• 2:22
  exactly
• 2:22
  the
• 2:22
  word
• 2:23
  most
• 2:23
  people
• 2:23
  would
• 2:23
  use
• 2:23
  to
• 2:24
  describe
• 2:24
  their
• 2:25
  industry,
• 2:25
  which
• 2:26
  is
• 2:26
  why
• 2:26
  we
• 2:26
  love
• 2:26
  having
• 2:26
  you
• 2:26
  on
• 2:27
  the
• 2:27
  show
• 2:27
  because
• 2:27
  you're
• 2:27
  frank
• 2:28
  and
• 2:28
  candid.
• 2:29
  So
• 2:29
  walk
• 2:30
  us
• 2:30
  through,
• 2:30
  like,
• 2:31
  why
• 2:31
  that
• 2:31
  happened.
• 2:31
  What
• 2:32
  were
• 2:32
  the
• 2:32
  biggest
• 2:32
  takeaways
• 2:33
  when
• 2:34
  you
• 2:34
  look
• 2:34
  back
• 2:34
  at
• 2:35
  2025.
• 2:36
  So
• 2:36
  I
• 2:36
  think
• 2:36
  that
• 2:37
  we
• 2:37
  wouldn't
• 2:37
  have
• 2:38
  called
• 2:38
  the
• 2:38
  year
• 2:38
  2021
• 2:39
  and
• 2:40
  2022
• 2:40
  vanilla.
• 2:41
  It,
• 2:41
  you
• 2:42
  know.
• 2:42
  Right.
• 2:43
  Was
• 2:43
  not
• 2:43
  vanilla.
• 2:45
  23,
• 2:45
  24,
• 2:46
  25
• 2:48
  were
• 2:49
  what
• 2:49
  I
• 2:49
  think
• 2:49
  kind
• 2:50
  of
• 2:50
  just
• 2:50
  the
• 2:50
  industry.
• 2:51
  There's.
• 2:52
  Everybody's
• 2:52
  just
• 2:52
  trying
• 2:53
  to
• 2:54
  keep
• 2:54
  up
• 2:54
  with
• 2:54
  all
• 2:54
  of
• 2:54
  the
• 2:55
  changes
• 2:55
  going
• 2:55
  around
• 2:56
  in.
• 2:56
  Around
• 2:56
  them,
• 2:57
  trying
• 2:58
  to
• 2:58
  come
• 2:58
  up
• 2:58
  with
• 2:58
  a
• 2:59
  plan.
• 2:59
  They're
• 3:00
  trying
• 3:00
  to
• 3:00
  operate
• 3:01
  in
• 3:01
  an
• 3:01
  environment
• 3:01
  where
• 3:02
  interest
• 3:02
  rates
• 3:02
  are
• 3:02
  high.
• 3:03
  There
• 3:04
  just
• 3:04
  hasn't
• 3:04
  been
• 3:04
  a
• 3:05
  lot
• 3:05
  of
• 3:05
  exciting
• 3:06
  things
• 3:06
  going
• 3:07
  on
• 3:07
  in
• 3:07
  the
• 3:07
  material
• 3:08
  handling
• 3:09
  industry,
• 3:10
  supply
• 3:11
  chain
• 3:11
  and
• 3:11
  logistics.
• 3:12
  There's
• 3:12
  a
• 3:12
  lot
• 3:13
  of
• 3:13
  movement
• 3:13
  in
• 3:13
  trying
• 3:14
  to
• 3:14
  figure
• 3:14
  out
• 3:14
  where
• 3:14
  I'm
• 3:15
  going
• 3:15
  to
• 3:15
  get
• 3:15
  product
• 3:15
  from.
• 3:16
  That
• 3:16
  continues
• 3:17
  to
• 3:17
  be
• 3:17
  in
• 3:18
  flux.
• 3:18
  But
• 3:18
  I
• 3:18
  think
• 3:19
  I
• 3:19
  use
• 3:19
  the
• 3:19
  word
• 3:20
  vanilla
• 3:20
  because
• 3:22
  there
• 3:22
  wasn't
• 3:23
  a
• 3:23
  lot
• 3:23
  of
• 3:23
  new
• 3:24
  innovation.
• 3:25
  Everybody's
• 3:26
  just
• 3:26
  treading
• 3:26
  water,
• 3:27
  I
• 3:27
  guess
• 3:27
  is
• 3:27
  more
• 3:28
  of
• 3:28
  a
• 3:28
  way
• 3:28
  of
• 3:28
  putting
• 3:29
  it.
• 3:29
  Our
• 3:29
  customers
• 3:29
  are
• 3:30
  treading
• 3:30
  water
• 3:32
  and
• 3:32
  trying
• 3:32
  to
• 3:32
  deal
• 3:32
  with
• 3:33
  constant
• 3:33
  change.
• 3:34
  It's
• 3:34
  funny,
• 3:34
  when
• 3:34
  you
• 3:35
  brought
• 3:35
  up
• 3:35
  2021
• 3:36
  and
• 3:36
  2020
• 3:36
  and
• 3:37
  2022,
• 3:38
  like,
• 3:38
  I'm
• 3:38
  curious
• 3:38
  what
• 3:39
  flavor
• 3:39
  of
• 3:39
  ice
• 3:39
  cream
• 3:39
  that
• 3:39
  was.
• 3:40
  Neap.
• 3:40
  I
• 3:41
  don't
• 3:41
  know.
• 3:41
  Like
• 3:41
  that.
• 3:41
  Or
• 3:42
  Superman.
• 3:42
  Maybe
• 3:43
  Superman.
• 3:43
  Or
• 3:44
  the
• 3:44
  one
• 3:44
  where
• 3:44
  you
• 3:44
  have
• 3:44
  Pop
• 3:44
  Rocks
• 3:45
  and.
• 3:45
  I
• 3:45
  can't
• 3:45
  remember
• 3:46
  this
• 3:46
  one.
• 3:46
  Pop
• 3:46
  Rocks.
• 3:47
  Right,
• 3:47
  right,
• 3:47
  right,
• 3:48
  right,
• 3:48
  right.
• 3:48
  Bubblegum?
• 3:49
  Yeah.
• 3:49
  Bubble
• 3:49
  gum?
• 3:50
  Yeah.
• 3:50
  All
• 3:51
  right.
• 3:51
  But
• 3:51
  I
• 3:51
  think
• 3:51
  that's.
• 3:51
  I
• 3:51
  think
• 3:52
  it's.
• 3:52
  It's
• 3:52
  actually
• 3:52
  a
• 3:53
  very
• 3:53
  good
• 3:53
  analogy
• 3:53
  because,
• 3:54
  yeah,
• 3:54
  I
• 3:54
  think
• 3:54
  it
• 3:54
  was.
• 3:55
  Those
• 3:55
  years
• 3:55
  were
• 3:55
  like
• 3:56
  that.
• 3:56
  Now
• 3:56
  it's
• 3:56
  just
• 3:57
  everything's
• 3:57
  kind
• 3:57
  of
• 3:57
  slowed
• 3:58
  down
• 3:58
  to
• 3:58
  a
• 3:58
  degree.
• 3:59
  So
• 3:59
  I'm
• 3:59
  curious,
• 3:59
  what.
• 4:00
  What
• 4:00
  in
• 4:00
  your
• 4:00
  mind
• 4:01
  was.
• 4:01
  What's
• 4:02
  been
• 4:02
  driving
• 4:02
  that?
• 4:02
  If
• 4:03
  you
• 4:03
  were
• 4:03
  to
• 4:03
  point
• 4:03
  to
• 4:04
  main,
• 4:05
  key,
• 4:05
  main
• 4:05
  themes
• 4:06
  that
• 4:06
  have,
• 4:06
  you
• 4:06
  know,
• 4:07
  led
• 4:07
  to
• 4:07
  that
• 4:07
  outcome,
• 4:08
  you
• 4:08
  know,
• 4:08
  how
• 4:08
  would
• 4:08
  you
• 4:09
  summarize
• 4:09
  that?
• 4:10
  What.
• 4:10
  What
• 4:10
  are
• 4:11
  the
• 4:11
  factors
• 4:11
  that
• 4:11
  have
• 4:11
  been
• 4:12
  leading
• 4:12
  to
• 4:12
  you
• 4:12
  say
• 4:13
  to
• 4:13
  you
• 4:13
  calling
• 4:14
  it
• 4:14
  vanilla?
• 4:14
  Basically,
• 4:15
  I
• 4:15
  think
• 4:15
  in
• 4:15
  23
• 4:16
  and
• 4:16
  24,
• 4:17
  it
• 4:17
  was
• 4:17
  the
• 4:17
  discussion
• 4:18
  around
• 4:18
  access
• 4:19
  to
• 4:19
  money,
• 4:19
  to
• 4:20
  capital.
• 4:20
  Right.
• 4:21
  Continued
• 4:21
  high
• 4:22
  interest
• 4:22
  rates
• 4:22
  globally.
• 4:23
  Interest
• 4:23
  rates,
• 4:24
  yeah.
• 4:24
  When
• 4:25
  you
• 4:25
  look
• 4:25
  at
• 4:25
  25
• 4:26
  and
• 4:26
  into
• 4:26
  this
• 4:27
  year,
• 4:27
  it's
• 4:27
  really
• 4:28
  when
• 4:28
  we
• 4:28
  just
• 4:29
  finished
• 4:29
  a
• 4:29
  voice
• 4:29
  of
• 4:30
  customer
• 4:30
  survey
• 4:31
  that
• 4:31
  we
• 4:31
  do
• 4:31
  pretty
• 4:31
  much
• 4:31
  every
• 4:32
  year
• 4:33
  that's
• 4:34
  a
• 4:34
  global
• 4:34
  voc.
• 4:35
  And
• 4:36
  the
• 4:36
  biggest
• 4:37
  response
• 4:37
  was
• 4:37
  the
• 4:37
  geopolitical
• 4:38
  uncertainty
• 4:40
  that
• 4:40
  is
• 4:41
  impacting
• 4:41
  our
• 4:41
  customers.
• 4:42
  So
• 4:43
  not
• 4:43
  knowing,
• 4:44
  you
• 4:44
  know,
• 4:44
  we
• 4:44
  have
• 4:44
  the
• 4:44
  discussion
• 4:45
  around
• 4:45
  tariffs,
• 4:45
  we
• 4:45
  have
• 4:46
  discussion
• 4:46
  of
• 4:46
  interrupted
• 4:47
  supply
• 4:47
  chains
• 4:49
  where,
• 4:50
  you
• 4:50
  know,
• 4:51
  we
• 4:52
  can't
• 4:52
  get
• 4:52
  a
• 4:52
  product
• 4:52
  from
• 4:53
  a
• 4:53
  certain
• 4:53
  area.
• 4:54
  So
• 4:55
  those
• 4:55
  things
• 4:56
  are
• 4:56
  kind
• 4:56
  of
• 4:57
  that
• 4:57
  Mix
• 4:58
  with
• 4:58
  interest
• 4:58
  rate
• 4:58
  conversation
• 5:00
  is
• 5:00
  elevated
• 5:01
  the
• 5:01
  top
• 5:01
  of
• 5:01
  the
• 5:01
  customer's
• 5:02
  concerns
• 5:03
  and
• 5:03
  how
• 5:04
  do
• 5:04
  they
• 5:04
  manage
• 5:04
  in
• 5:05
  that
• 5:05
  volatile
• 5:05
  environment
• 5:07
  and
• 5:07
  continue
• 5:08
  to
• 5:08
  do
• 5:08
  so.
• 5:08
  Kim,
• 5:09
  I'm
• 5:09
  curious
• 5:09
  too.
• 5:09
  Is
• 5:10
  there
• 5:10
  any
• 5:10
  difference
• 5:10
  in.
• 5:10
  When
• 5:10
  you
• 5:11
  say
• 5:11
  the
• 5:11
  investment
• 5:11
  climate
• 5:11
  and
• 5:12
  particularly
• 5:12
  pointing
• 5:12
  to
• 5:12
  interest
• 5:13
  rates
• 5:13
  too,
• 5:14
  is
• 5:14
  it
• 5:15
  the
• 5:15
  same
• 5:15
  globally?
• 5:16
  Is
• 5:16
  there
• 5:16
  the
• 5:16
  same
• 5:17
  hesitance
• 5:17
  globally?
• 5:18
  Or
• 5:18
  do
• 5:18
  you
• 5:18
  see
• 5:18
  differences
• 5:19
  from
• 5:19
  the
• 5:19
  United
• 5:20
  States,
• 5:20
  say,
• 5:20
  relative
• 5:21
  to
• 5:21
  Europe
• 5:21
  or
• 5:21
  Asia
• 5:22
  Pacific
• 5:22
  as
• 5:22
  well?
• 5:23
  Yeah,
• 5:24
  we're
• 5:24
  close,
• 5:25
  but
• 5:25
  the
• 5:26
  Americas
• 5:26
  is
• 5:26
  feeling
• 5:28
  a
• 5:28
  little
• 5:28
  bit
• 5:29
  even
• 5:30
  more
• 5:31
  uncertain.
• 5:32
  When
• 5:32
  we
• 5:32
  interviewed
• 5:33
  the
• 5:33
  people,
• 5:33
  they
• 5:34
  came
• 5:34
  through
• 5:34
  with
• 5:35
  a
• 5:35
  higher
• 5:36
  rating
• 5:36
  of
• 5:36
  geopolitical
• 5:37
  uncertainty
• 5:38
  and
• 5:38
  supply
• 5:39
  chain
• 5:40
  uncertainty
• 5:42
  as
• 5:42
  opposed
• 5:43
  to
• 5:43
  Europe
• 5:43
  and
• 5:43
  apac,
• 5:44
  but,
• 5:45
  you
• 5:45
  know.
• 5:46
  Yeah,
• 5:47
  so
• 5:47
  slight
• 5:48
  difference.
• 5:49
  Slight
• 5:49
  difference.
• 5:49
  Yeah.
• 5:50
  I
• 5:50
  think
• 5:50
  we
• 5:50
  should
• 5:51
  poll
• 5:51
  again
• 5:51
  in
• 5:51
  another
• 5:52
  three
• 5:52
  months,
• 5:52
  though.
• 5:52
  I,
• 5:52
  you
• 5:53
  know,
• 5:53
  it
• 5:53
  could,
• 5:53
  it
• 5:54
  changes
• 5:54
  a
• 5:55
  lot.
• 5:55
  So.
• 5:56
  Yeah,
• 5:56
  it
• 5:56
  probably
• 5:56
  changed
• 5:57
  in
• 5:57
  the
• 5:57
  moment,
• 5:57
  in
• 5:58
  the,
• 5:58
  just
• 5:58
  the
• 5:58
  time
• 5:58
  frame
• 5:58
  that
• 5:58
  we've
• 5:59
  been
• 5:59
  recording
• 5:59
  this
• 5:59
  podcast
• 6:00
  for
• 6:00
  the
• 6:00
  first
• 6:00
  four
• 6:01
  minutes
• 6:01
  of
• 6:01
  today.
• 6:02
  But,
• 6:02
  but
• 6:03
  I'm
• 6:03
  curious.
• 6:03
  Okay,
• 6:04
  so
• 6:04
  geopolitical
• 6:04
  uncertainty,
• 6:05
  high
• 6:05
  interest
• 6:06
  rates,
• 6:07
  just
• 6:07
  a
• 6:07
  lot
• 6:08
  of
• 6:08
  things
• 6:08
  in
• 6:08
  flux.
• 6:08
  You
• 6:09
  know,
• 6:09
  in
• 6:09
  that
• 6:09
  regard,
• 6:10
  I'm
• 6:11
  curious
• 6:11
  too.
• 6:11
  Like,
• 6:11
  are
• 6:12
  you,
• 6:12
  were
• 6:12
  you
• 6:12
  seeing
• 6:12
  it?
• 6:12
  Did
• 6:13
  your
• 6:13
  survey
• 6:13
  say
• 6:13
  anything
• 6:13
  else
• 6:14
  in
• 6:14
  terms
• 6:14
  of
• 6:14
  like,
• 6:15
  the
• 6:15
  customer,
• 6:15
  the
• 6:16
  customer's
• 6:16
  expectations?
• 6:18
  You
• 6:18
  know,
• 6:18
  how
• 6:18
  retailers
• 6:19
  are
• 6:19
  approaching
• 6:19
  their
• 6:20
  supply
• 6:20
  chain
• 6:20
  strategically?
• 6:21
  You
• 6:22
  know,
• 6:22
  what
• 6:22
  else?
• 6:22
  What
• 6:22
  else
• 6:23
  came
• 6:23
  out
• 6:23
  from
• 6:23
  the
• 6:23
  survey?
• 6:24
  Yeah,
• 6:25
  well,
• 6:25
  this,
• 6:25
  the
• 6:26
  continued.
• 6:27
  There's
• 6:27
  a
• 6:27
  couple
• 6:28
  continued
• 6:28
  conversations,
• 6:29
  which
• 6:29
  is
• 6:31
  we're
• 6:31
  having
• 6:32
  a
• 6:32
  lot
• 6:32
  of
• 6:32
  the
• 6:33
  uncertainty
• 6:34
  affecting
• 6:35
  our
• 6:35
  customers
• 6:36
  and
• 6:36
  at
• 6:36
  the
• 6:37
  same
• 6:37
  time,
• 6:37
  their
• 6:37
  customers
• 6:38
  continue.
• 6:39
  And
• 6:39
  this
• 6:39
  has
• 6:39
  been
• 6:39
  a
• 6:39
  common
• 6:40
  theme
• 6:40
  I
• 6:40
  think
• 6:40
  you
• 6:40
  and
• 6:40
  I
• 6:40
  have
• 6:41
  talked
• 6:41
  about
• 6:41
  for
• 6:41
  a
• 6:41
  couple
• 6:41
  years,
• 6:42
  is
• 6:42
  there
• 6:42
  continues
• 6:43
  to
• 6:43
  be
• 6:43
  these
• 6:44
  customer
• 6:44
  service
• 6:44
  levels,
• 6:46
  delivering
• 6:47
  at
• 6:47
  speed,
• 6:47
  delivering
• 6:48
  accurately,
• 6:49
  being
• 6:49
  able
• 6:49
  to
• 6:50
  have
• 6:50
  their
• 6:50
  customers
• 6:50
  shop
• 6:51
  wherever
• 6:51
  they
• 6:51
  want.
• 6:52
  Those
• 6:52
  service
• 6:52
  levels
• 6:53
  continue
• 6:53
  to
• 6:53
  increase
• 6:54
  year
• 6:54
  after
• 6:54
  year.
• 6:54
  We
• 6:55
  see
• 6:55
  that
• 6:56
  raising
• 6:56
  up,
• 6:56
  you
• 6:56
  know,
• 6:57
  the
• 6:57
  percentage
• 6:57
  of
• 6:57
  people
• 6:58
  responding.
• 6:58
  That's
• 6:58
  number
• 6:59
  one
• 6:59
  of
• 6:59
  the
• 6:59
  things
• 7:00
  they're
• 7:00
  really
• 7:00
  trying
• 7:00
  to
• 7:00
  solve
• 7:01
  for.
• 7:01
  Continues
• 7:02
  to
• 7:02
  raise
• 7:02
  up
• 7:03
  the,
• 7:03
  the
• 7:04
  chart.
• 7:04
  So
• 7:05
  there's
• 7:05
  that
• 7:06
  and,
• 7:07
  and
• 7:07
  there
• 7:07
  continues
• 7:08
  to
• 7:08
  be
• 7:10
  the
• 7:10
  customers
• 7:10
  in
• 7:11
  the
• 7:11
  retail
• 7:11
  market.
• 7:12
  So
• 7:12
  grocery
• 7:12
  or
• 7:13
  grocery,
• 7:13
  we
• 7:13
  know
• 7:13
  that
• 7:14
  grocery,
• 7:15
  general
• 7:15
  merchandise,
• 7:16
  apparel,
• 7:17
  continue
• 7:18
  with
• 7:19
  that
• 7:19
  effort
• 7:19
  to
• 7:19
  get
• 7:20
  product
• 7:20
  closer
• 7:20
  to
• 7:21
  the
• 7:21
  customer
• 7:22
  and
• 7:22
  using
• 7:22
  their
• 7:23
  retail
• 7:23
  inventory
• 7:24
  to
• 7:24
  do
• 7:25
  so.
• 7:26
  So
• 7:26
  seeing
• 7:27
  those
• 7:27
  two
• 7:27
  things,
• 7:27
  and
• 7:28
  again,
• 7:28
  that's
• 7:28
  all
• 7:28
  about
• 7:29
  meeting
• 7:30
  the
• 7:30
  customer
• 7:30
  where
• 7:30
  their
• 7:31
  customer,
• 7:31
  where
• 7:31
  they're
• 7:32
  purchasing
• 7:32
  and
• 7:33
  the
• 7:33
  way
• 7:33
  they
• 7:33
  want
• 7:33
  to
• 7:33
  buy.
• 7:34
  In
• 7:35
  America,
• 7:36
  I
• 7:36
  think
• 7:36
  we
• 7:36
  talked
• 7:36
  about
• 7:36
  this
• 7:37
  too,
• 7:37
  last
• 7:37
  year,
• 7:38
  Americans
• 7:39
  kind
• 7:39
  of
• 7:39
  think,
• 7:41
  I
• 7:41
  want
• 7:41
  to
• 7:42
  buy
• 7:42
  where
• 7:42
  I
• 7:42
  want
• 7:42
  to
• 7:42
  buy,
• 7:42
  when
• 7:43
  I
• 7:43
  want
• 7:43
  to
• 7:43
  buy,
• 7:43
  and
• 7:43
  I
• 7:43
  want
• 7:43
  it
• 7:43
  delivered
• 7:44
  and
• 7:44
  picked
• 7:44
  up
• 7:44
  whenever
• 7:45
  I
• 7:45
  want
• 7:45
  to.
• 7:45
  In
• 7:45
  Europe,
• 7:49
  they
• 7:49
  tend
• 7:49
  to
• 7:49
  have
• 7:50
  Windows
• 7:50
  that
• 7:50
  they're
• 7:51
  offered
• 7:51
  from
• 7:51
  the
• 7:51
  right
• 7:52
  the
• 7:52
  supplier.
• 7:52
  Like
• 7:52
  you
• 7:53
  can
• 7:53
  get
• 7:53
  your
• 7:53
  order
• 7:53
  but
• 7:54
  it's
• 7:54
  going
• 7:54
  to
• 7:54
  be
• 7:54
  at
• 7:54
  this
• 7:54
  time
• 7:55
  of
• 7:55
  the
• 7:55
  day
• 7:55
  or
• 7:55
  you
• 7:55
  can
• 7:56
  pick
• 7:56
  it
• 7:56
  up
• 7:56
  at
• 7:56
  this
• 7:56
  time
• 7:56
  of
• 7:56
  the
• 7:57
  day.
• 7:57
  So
• 7:57
  there's
• 7:58
  some
• 7:58
  differences
• 7:58
  but
• 7:58
  in
• 7:59
  North
• 7:59
  America
• 8:00
  and
• 8:00
  even
• 8:00
  Canada
• 8:02
  there's
• 8:03
  a
• 8:03
  lot
• 8:03
  of
• 8:03
  leeway
• 8:03
  to
• 8:04
  how
• 8:04
  a
• 8:04
  person
• 8:04
  can
• 8:05
  purchase
• 8:05
  things.
• 8:05
  And
• 8:06
  the
• 8:06
  vent
• 8:06
  and
• 8:06
  the
• 8:06
  retailers
• 8:08
  are
• 8:08
  addressing
• 8:09
  that
• 8:09
  and
• 8:09
  providing
• 8:09
  that
• 8:10
  freedom.
• 8:10
  So
• 8:10
  it's
• 8:11
  very
• 8:11
  difficult
• 8:12
  to
• 8:12
  manage,
• 8:13
  you
• 8:13
  know,
• 8:14
  the
• 8:14
  retail
• 8:14
  inventory,
• 8:15
  the
• 8:16
  what's,
• 8:16
  what's
• 8:17
  in
• 8:17
  the
• 8:17
  store,
• 8:17
  what
• 8:17
  isn't
• 8:17
  in
• 8:18
  the
• 8:18
  store,
• 8:18
  who's
• 8:18
  buying
• 8:18
  from
• 8:19
  my
• 8:19
  store
• 8:19
  and
• 8:19
  who
• 8:19
  am
• 8:19
  I
• 8:20
  shipping
• 8:20
  to
• 8:20
  their
• 8:20
  house.
• 8:21
  So
• 8:21
  a
• 8:21
  lot
• 8:22
  of
• 8:22
  complexity
• 8:22
  continuing
• 8:23
  to
• 8:23
  go
• 8:23
  on.
• 8:24
  So
• 8:24
  you
• 8:24
  have
• 8:24
  uncertainty,
• 8:25
  complexity,
• 8:27
  customer
• 8:27
  demand,
• 8:28
  you
• 8:28
  know,
• 8:28
  all
• 8:29
  these
• 8:29
  things
• 8:29
  going
• 8:29
  on.
• 8:30
  Right.
• 8:31
  And
• 8:31
  so
• 8:31
  yeah,
• 8:31
  so
• 8:32
  so
• 8:32
  basically
• 8:32
  what
• 8:32
  you're
• 8:32
  saying
• 8:33
  there
• 8:33
  is
• 8:33
  that
• 8:33
  the
• 8:33
  continued
• 8:34
  push
• 8:34
  towards
• 8:34
  E
• 8:34
  commerce
• 8:35
  and
• 8:35
  particularly
• 8:35
  speed
• 8:36
  across
• 8:36
  the
• 8:36
  industry
• 8:37
  and
• 8:37
  setting
• 8:37
  the
• 8:37
  expectation
• 8:38
  for
• 8:38
  the
• 8:38
  American
• 8:38
  consumer
• 8:39
  particularly
• 8:40
  that
• 8:40
  they
• 8:40
  can
• 8:40
  get
• 8:40
  things
• 8:40
  as
• 8:41
  fast
• 8:41
  and
• 8:41
  whenever
• 8:41
  they
• 8:42
  want
• 8:42
  is
• 8:42
  continued
• 8:43
  to
• 8:43
  play,
• 8:44
  continue
• 8:44
  to
• 8:44
  play
• 8:44
  a
• 8:45
  role
• 8:45
  in
• 8:45
  terms
• 8:45
  of
• 8:45
  how
• 8:45
  retailers
• 8:46
  navigate
• 8:46
  the
• 8:46
  situation,
• 8:47
  particularly
• 8:47
  with
• 8:47
  the
• 8:48
  other
• 8:48
  uncertainties
• 8:48
  that
• 8:49
  you
• 8:49
  already
• 8:49
  mentioned
• 8:49
  in
• 8:49
  mind.
• 8:50
  I'm
• 8:50
  curious
• 8:50
  too
• 8:51
  Kim.
• 8:51
  Does
• 8:51
  that
• 8:51
  impact
• 8:53
  like
• 8:53
  the
• 8:53
  inventory
• 8:54
  that
• 8:54
  the
• 8:54
  retailers
• 8:55
  are
• 8:55
  holding?
• 8:55
  Like,
• 8:56
  you
• 8:56
  know,
• 8:56
  like
• 8:56
  how,
• 8:57
  how,
• 8:57
  how
• 8:57
  are
• 8:57
  the
• 8:58
  warehouses
• 8:58
  operating
• 8:59
  today
• 8:59
  versus
• 8:59
  how
• 9:00
  they
• 9:00
  were
• 9:00
  operating
• 9:00
  in
• 9:00
  the
• 9:01
  past?
• 9:01
  Well,
• 9:01
  there's
• 9:02
  a
• 9:02
  couple
• 9:02
  things.
• 9:02
  So
• 9:03
  inventory
• 9:04
  levels,
• 9:05
  stock
• 9:05
  levels
• 9:05
  inside
• 9:06
  of
• 9:06
  the
• 9:06
  DCs
• 9:07
  are
• 9:07
  actually
• 9:08
  growing
• 9:10
  because
• 9:10
  of
• 9:11
  to
• 9:11
  the
• 9:12
  thing
• 9:12
  I
• 9:12
  need
• 9:12
  to
• 9:12
  have
• 9:13
  inventory
• 9:14
  to
• 9:15
  my
• 9:15
  forward
• 9:15
  stores,
• 9:16
  et
• 9:16
  cetera,
• 9:16
  inventory
• 9:17
  for
• 9:17
  E
• 9:17
  Commerce.
• 9:17
  But
• 9:18
  the
• 9:18
  biggest
• 9:18
  I
• 9:19
  think
• 9:19
  driver
• 9:19
  for
• 9:19
  that
• 9:20
  is
• 9:20
  the
• 9:20
  uncertainty
• 9:21
  of
• 9:21
  my
• 9:22
  supply
• 9:22
  chain
• 9:23
  and
• 9:23
  trying
• 9:23
  to
• 9:24
  mitigate
• 9:24
  supply
• 9:25
  chain
• 9:25
  risk.
• 9:26
  So
• 9:27
  we're
• 9:27
  seeing
• 9:28
  the
• 9:28
  level
• 9:29
  of
• 9:31
  amount
• 9:31
  of
• 9:32
  inventory
• 9:32
  safety,
• 9:33
  stock
• 9:33
  and
• 9:34
  extra
• 9:34
  storage
• 9:35
  increasing
• 9:35
  year
• 9:36
  after
• 9:36
  year
• 9:36
  over
• 9:36
  the
• 9:37
  last
• 9:37
  few
• 9:37
  years.
• 9:38
  And
• 9:39
  I
• 9:39
  think
• 9:40
  we
• 9:40
  talked
• 9:40
  about,
• 9:41
  we
• 9:41
  used
• 9:41
  to
• 9:41
  say
• 9:44
  before
• 9:44
  COVID
• 9:44
  really
• 9:45
  it
• 9:46
  was,
• 9:46
  you
• 9:46
  know,
• 9:47
  that
• 9:47
  was
• 9:48
  not
• 9:48
  the
• 9:49
  goal
• 9:49
  of
• 9:50
  most
• 9:50
  of
• 9:50
  our
• 9:50
  customers.
• 9:51
  They
• 9:51
  didn't
• 9:51
  want
• 9:51
  to
• 9:51
  have
• 9:52
  a
• 9:52
  lot
• 9:52
  of
• 9:52
  extra
• 9:52
  stock.
• 9:53
  So
• 9:53
  they
• 9:54
  had
• 9:54
  just
• 9:54
  in
• 9:54
  time
• 9:55
  concepts
• 9:55
  as
• 9:56
  opposed
• 9:56
  to
• 9:56
  now.
• 9:56
  I
• 9:56
  say
• 9:57
  they
• 9:57
  have
• 9:57
  just
• 9:57
  in
• 9:57
  case,
• 9:58
  you
• 9:58
  know,
• 9:58
  I
• 9:58
  need
• 9:59
  to
• 9:59
  have
• 9:59
  this
• 9:59
  inventory
• 10:00
  here
• 10:00
  a
• 10:00
  because
• 10:01
  I
• 10:01
  know
• 10:01
  I
• 10:01
  can
• 10:01
  buy
• 10:01
  it
• 10:02
  as
• 10:02
  this
• 10:02
  price
• 10:03
  today
• 10:03
  versus
• 10:04
  I
• 10:04
  don't
• 10:04
  know
• 10:04
  what
• 10:04
  my
• 10:04
  price
• 10:05
  will
• 10:05
  be
• 10:05
  in
• 10:06
  the
• 10:06
  future.
• 10:06
  And
• 10:06
  I
• 10:07
  don't
• 10:07
  know
• 10:07
  if
• 10:07
  I'm
• 10:07
  going
• 10:07
  to
• 10:07
  have
• 10:08
  some
• 10:08
  kind
• 10:08
  of
• 10:08
  interruption
• 10:09
  to
• 10:09
  being
• 10:10
  able
• 10:10
  to
• 10:10
  access
• 10:10
  that
• 10:11
  that
• 10:11
  supply
• 10:12
  from
• 10:12
  a
• 10:12
  given
• 10:12
  region
• 10:13
  of
• 10:13
  the
• 10:13
  world.
• 10:13
  So
• 10:14
  those
• 10:14
  two
• 10:14
  things
• 10:15
  are
• 10:15
  increasing
• 10:15
  the
• 10:16
  need
• 10:16
  for
• 10:17
  increased
• 10:17
  inventory
• 10:18
  storage.
• 10:19
  That's
• 10:20
  great.
• 10:20
  Just
• 10:20
  in
• 10:20
  time
• 10:20
  to
• 10:21
  just
• 10:21
  in
• 10:21
  case
• 10:21
  man,
• 10:21
  my
• 10:22
  heart
• 10:22
  goes
• 10:22
  out
• 10:22
  to
• 10:22
  the
• 10:22
  retailers
• 10:23
  that
• 10:23
  are
• 10:23
  trying
• 10:23
  to
• 10:23
  navigate
• 10:24
  all
• 10:24
  this.
• 10:24
  Oh,
• 10:24
  yeah.
• 10:24
  Set
• 10:24
  this
• 10:25
  up.
• 10:25
  Right.
• 10:25
  I
• 10:25
  mean,
• 10:26
  geez.
• 10:26
  I
• 10:26
  mean,
• 10:26
  could
• 10:27
  you
• 10:27
  throw
• 10:27
  more
• 10:27
  things
• 10:28
  at
• 10:28
  them?
• 10:28
  But
• 10:28
  so
• 10:29
  I'm
• 10:29
  curious
• 10:29
  then,
• 10:29
  as
• 10:29
  we.
• 10:30
  So
• 10:30
  that
• 10:30
  was
• 10:30
  2025.
• 10:31
  I
• 10:31
  thought
• 10:31
  you
• 10:32
  did
• 10:32
  a
• 10:32
  great
• 10:32
  job
• 10:32
  outlining
• 10:33
  2025
• 10:33
  and
• 10:34
  all
• 10:34
  the
• 10:34
  factors
• 10:34
  that
• 10:34
  are
• 10:35
  kind
• 10:35
  of
• 10:35
  driving
• 10:36
  the
• 10:36
  vanilla,
• 10:37
  you
• 10:37
  know,
• 10:37
  impression
• 10:38
  of.
• 10:38
  Of
• 10:38
  the
• 10:38
  year.
• 10:39
  What
• 10:39
  about
• 10:39
  2026?
• 10:40
  Like,
• 10:40
  is
• 10:41
  2026
• 10:41
  going
• 10:42
  to
• 10:42
  be
• 10:42
  more
• 10:42
  of
• 10:43
  the
• 10:43
  same
• 10:43
  or
• 10:43
  are
• 10:43
  we
• 10:43
  going
• 10:44
  to
• 10:44
  finally
• 10:44
  see
• 10:44
  a
• 10:44
  light
• 10:44
  at
• 10:45
  the
• 10:45
  end
• 10:45
  of
• 10:45
  the
• 10:45
  tunnel
• 10:45
  when
• 10:45
  it
• 10:46
  comes
• 10:46
  to,
• 10:46
  you
• 10:47
  know,
• 10:47
  how
• 10:47
  retailers
• 10:48
  look
• 10:48
  at
• 10:48
  their
• 10:48
  automation
• 10:48
  and
• 10:49
  their
• 10:49
  investments
• 10:49
  in
• 10:49
  their
• 10:49
  warehousing?
• 10:50
  I
• 10:51
  don't
• 10:51
  think
• 10:51
  2026
• 10:52
  is
• 10:52
  going
• 10:52
  to
• 10:52
  be
• 10:52
  earlier.
• 10:53
  I'm
• 10:53
  sorry.
• 10:54
  That's
• 10:54
  why
• 10:54
  I
• 10:55
  feel
• 10:55
  like
• 10:55
  this
• 10:55
  podcast
• 10:56
  is
• 10:56
  kind
• 10:56
  of
• 10:56
  like
• 10:56
  vanilla
• 10:57
  too.
• 10:57
  I'm
• 10:58
  sorry.
• 10:59
  No,
• 10:59
  this,
• 10:59
  this
• 11:00
  podcast
• 11:00
  is
• 11:00
  spicy
• 11:01
  ice
• 11:01
  cream.
• 11:01
  Because
• 11:02
  we're,
• 11:02
  we're
• 11:02
  getting
• 11:02
  to
• 11:03
  the
• 11:03
  root
• 11:03
  of
• 11:03
  the
• 11:03
  issues
• 11:03
  here,
• 11:04
  Kim.
• 11:04
  We're
• 11:04
  going
• 11:04
  to
• 11:04
  spice
• 11:05
  it
• 11:05
  up
• 11:05
  here.
• 11:05
  But
• 11:05
  no,
• 11:06
  I
• 11:06
  mean,
• 11:06
  if
• 11:07
  it
• 11:07
  is,
• 11:07
  that's
• 11:07
  the
• 11:07
  way
• 11:07
  it
• 11:07
  is,
• 11:08
  you
• 11:08
  know,
• 11:08
  like.
• 11:08
  And
• 11:08
  that's
• 11:08
  why
• 11:09
  we
• 11:09
  do
• 11:09
  this
• 11:09
  podcast,
• 11:09
  to
• 11:10
  speak
• 11:10
  the
• 11:10
  truth
• 11:10
  to
• 11:10
  people
• 11:11
  about
• 11:11
  how
• 11:11
  things
• 11:11
  are
• 11:11
  going.
• 11:12
  So.
• 11:12
  Yeah,
• 11:12
  so.
• 11:12
  Yeah.
• 11:13
  So
• 11:13
  you
• 11:13
  think
• 11:13
  it's
• 11:13
  going
• 11:13
  to
• 11:13
  be
• 11:13
  more
• 11:14
  of
• 11:14
  the
• 11:14
  same.
• 11:14
  So,
• 11:15
  so
• 11:15
  why
• 11:15
  is
• 11:15
  that?
• 11:16
  Well,
• 11:16
  the
• 11:16
  studies
• 11:17
  that
• 11:17
  we've
• 11:17
  conducted
• 11:18
  every
• 11:18
  year,
• 11:19
  we
• 11:19
  also
• 11:19
  do,
• 11:20
  in
• 11:20
  addition
• 11:21
  to
• 11:21
  a
• 11:21
  voice
• 11:21
  of
• 11:21
  customer,
• 11:22
  we
• 11:22
  do
• 11:22
  a,
• 11:22
  A
• 11:23
  whole,
• 11:23
  what
• 11:23
  we
• 11:23
  call
• 11:24
  our
• 11:24
  markup
• 11:24
  model
• 11:25
  refresh,
• 11:25
  which
• 11:25
  is
• 11:25
  indicating
• 11:27
  where
• 11:27
  is
• 11:27
  money
• 11:28
  being
• 11:28
  spent,
• 11:28
  how
• 11:29
  much
• 11:29
  money
• 11:29
  is
• 11:29
  planned
• 11:30
  to
• 11:30
  being
• 11:30
  be
• 11:30
  spent
• 11:31
  on
• 11:31
  automation
• 11:32
  software
• 11:33
  and
• 11:33
  customer
• 11:34
  service
• 11:35
  types
• 11:35
  of
• 11:36
  offerings.
• 11:37
  And
• 11:37
  for
• 11:38
  the
• 11:38
  last
• 11:38
  two
• 11:38
  years,
• 11:39
  so
• 11:39
  24,
• 11:39
  25,
• 11:40
  we
• 11:40
  were
• 11:41
  kind
• 11:41
  of
• 11:41
  flatlining
• 11:42
  and
• 11:42
  actually
• 11:42
  we
• 11:43
  had
• 11:43
  a
• 11:43
  blip
• 11:43
  and
• 11:44
  we
• 11:45
  made
• 11:45
  a
• 11:45
  correction
• 11:45
  to
• 11:45
  the
• 11:46
  market
• 11:46
  model
• 11:46
  in
• 11:46
  24,
• 11:48
  where
• 11:49
  the
• 11:50
  people
• 11:50
  that
• 11:50
  were
• 11:50
  interviewed
• 11:51
  when
• 11:52
  all
• 11:52
  of
• 11:52
  that
• 11:52
  data
• 11:52
  was
• 11:52
  pulled
• 11:53
  together,
• 11:53
  we
• 11:53
  actually
• 11:53
  took
• 11:53
  a
• 11:54
  downturn,
• 11:55
  it
• 11:55
  dipped.
• 11:56
  Now
• 11:57
  we're
• 11:57
  kind
• 11:57
  of
• 11:58
  flatlining
• 11:59
  1%
• 12:00
  growth
• 12:01
  this
• 12:01
  year
• 12:02
  and
• 12:02
  automation
• 12:02
  spend
• 12:03
  overall,
• 12:05
  which
• 12:05
  is
• 12:07
  nothing
• 12:08
  really.
• 12:09
  So,
• 12:10
  you
• 12:11
  know,
• 12:12
  it's
• 12:12
  not
• 12:12
  to
• 12:13
  say
• 12:13
  that
• 12:13
  there
• 12:13
  won't
• 12:13
  be,
• 12:13
  you
• 12:14
  know,
• 12:14
  you
• 12:15
  know,
• 12:15
  places
• 12:15
  where
• 12:16
  the
• 12:16
  automation
• 12:16
  is
• 12:17
  being
• 12:17
  purchased
• 12:17
  more,
• 12:18
  but
• 12:18
  as
• 12:18
  a
• 12:18
  general
• 12:19
  rule,
• 12:20
  we're
• 12:20
  seeing
• 12:21
  still
• 12:21
  another
• 12:21
  kind
• 12:22
  of
• 12:22
  flat
• 12:22
  year
• 12:22
  with,
• 12:23
  with
• 12:24
  indication
• 12:25
  that
• 12:26
  towards
• 12:26
  the
• 12:26
  end
• 12:26
  of
• 12:26
  26
• 12:27
  and
• 12:27
  going
• 12:27
  to
• 12:27
  27,
• 12:28
  there
• 12:28
  will
• 12:28
  be
• 12:29
  some
• 12:29
  recovery
• 12:30
  as
• 12:30
  it's
• 12:30
  expected
• 12:31
  that
• 12:31
  interest
• 12:31
  rates
• 12:32
  will
• 12:32
  continue
• 12:32
  to
• 12:32
  go
• 12:32
  down.
• 12:33
  For
• 12:33
  one
• 12:34
  thing,
• 12:36
  I
• 12:36
  think
• 12:37
  the
• 12:37
  midterm
• 12:37
  elections
• 12:38
  have
• 12:39
  some
• 12:39
  things
• 12:39
  to
• 12:39
  do
• 12:39
  with
• 12:40
  the
• 12:40
  Americas
• 12:42
  and
• 12:42
  maybe
• 12:42
  the
• 12:43
  world
• 12:43
  at
• 12:43
  this
• 12:43
  point,
• 12:45
  but
• 12:46
  knowing
• 12:46
  where
• 12:46
  we're
• 12:46
  going
• 12:47
  to
• 12:47
  come
• 12:47
  out
• 12:47
  and
• 12:47
  what
• 12:48
  to
• 12:48
  plan
• 12:48
  for
• 12:49
  going
• 12:49
  forward
• 12:49
  with
• 12:50
  tariffs
• 12:50
  and
• 12:50
  supply
• 12:51
  Chain
• 12:51
  availability,
• 12:52
  but
• 12:53
  primarily
• 12:54
  the
• 12:54
  interest
• 12:54
  rate
• 12:55
  conversation
• 12:56
  gets
• 12:56
  a
• 12:56
  little
• 12:56
  bit
• 12:56
  better
• 12:57
  is
• 12:57
  what
• 12:57
  our,
• 12:59
  our
• 12:59
  researcher
• 12:59
  tells
• 13:00
  us
• 13:00
  as
• 13:00
  we
• 13:01
  go
• 13:01
  into
• 13:01
  27.
• 13:02
  So
• 13:03
  yeah,
• 13:04
  and
• 13:04
  I
• 13:04
  also
• 13:04
  think
• 13:05
  there's
• 13:05
  some
• 13:05
  things
• 13:05
  going
• 13:06
  on
• 13:07
  that,
• 13:07
  you
• 13:07
  know,
• 13:07
  we
• 13:08
  don't
• 13:08
  typically
• 13:08
  think
• 13:08
  about
• 13:09
  for
• 13:10
  material
• 13:11
  handling
• 13:11
  equipment,
• 13:11
  but
• 13:12
  it's
• 13:12
  the
• 13:12
  introduction
• 13:13
  of
• 13:13
  AI,
• 13:14
  right.
• 13:14
  And
• 13:14
  how
• 13:15
  can
• 13:15
  AI,
• 13:16
  where
• 13:16
  will
• 13:16
  it
• 13:16
  fit
• 13:17
  in
• 13:17
  supply
• 13:18
  chain,
• 13:18
  in
• 13:18
  the
• 13:18
  distribution.
• 13:20
  And
• 13:21
  I,
• 13:21
  you
• 13:21
  know,
• 13:21
  you
• 13:22
  hear
• 13:22
  in
• 13:22
  a
• 13:22
  lot
• 13:22
  of
• 13:22
  conversations
• 13:23
  about
• 13:23
  how
• 13:23
  our
• 13:23
  customers
• 13:24
  are
• 13:24
  using
• 13:24
  AI
• 13:25
  to,
• 13:26
  to,
• 13:28
  to
• 13:28
  engage
• 13:29
  with
• 13:29
  their
• 13:29
  customers,
• 13:29
  where
• 13:30
  they're
• 13:30
  spent,
• 13:30
  you
• 13:30
  know,
• 13:30
  where
• 13:31
  they're
• 13:31
  in
• 13:31
  their
• 13:32
  store
• 13:32
  or
• 13:32
  online
• 13:33
  or
• 13:33
  et
• 13:33
  cetera.
• 13:33
  Right.
• 13:34
  But
• 13:34
  I
• 13:34
  think
• 13:35
  there's
• 13:35
  some,
• 13:35
  there's
• 13:35
  going
• 13:35
  to
• 13:35
  be
• 13:36
  some
• 13:36
  opportunities
• 13:36
  going
• 13:37
  into
• 13:37
  27
• 13:38
  for
• 13:38
  AI
• 13:39
  to
• 13:39
  touch
• 13:39
  the,
• 13:40
  the
• 13:40
  warehouse
• 13:41
  and
• 13:41
  the
• 13:42
  warehouse
• 13:43
  distribution
• 13:43
  center
• 13:43
  and
• 13:44
  the
• 13:44
  supply
• 13:44
  chain.
• 13:44
  For
• 13:44
  sure.
• 13:45
  I
• 13:45
  think
• 13:45
  it's
• 13:45
  already
• 13:45
  doing
• 13:46
  it,
• 13:46
  but
• 13:46
  I
• 13:46
  think
• 13:46
  it's
• 13:46
  going
• 13:46
  to
• 13:47
  take
• 13:47
  off
• 13:47
  a
• 13:47
  little
• 13:47
  bit
• 13:47
  more
• 13:48
  next
• 13:48
  year.
• 13:49
  And
• 13:49
  what
• 13:49
  makes
• 13:49
  you
• 13:49
  say
• 13:50
  that,
• 13:50
  Kim?
• 13:51
  First
• 13:51
  of
• 13:51
  all,
• 13:51
  you
• 13:51
  need
• 13:51
  to,
• 13:52
  you
• 13:52
  know,
• 13:52
  you
• 13:52
  need
• 13:53
  to
• 13:53
  get.
• 13:54
  The
• 13:54
  products
• 13:54
  are
• 13:54
  going
• 13:54
  to
• 13:55
  have
• 13:55
  more
• 13:55
  maturity
• 13:55
  that
• 13:55
  are
• 13:56
  being
• 13:56
  offered.
• 13:56
  I
• 13:57
  think
• 13:57
  helping
• 13:58
  customers
• 13:58
  understand
• 13:59
  how
• 13:59
  they
• 13:59
  can
• 13:59
  use
• 13:59
  it
• 14:00
  to
• 14:00
  be,
• 14:02
  manage
• 14:03
  their
• 14:03
  operations
• 14:04
  better,
• 14:04
  manage
• 14:04
  their
• 14:04
  inventory
• 14:05
  better,
• 14:06
  make
• 14:06
  decisions
• 14:07
  better.
• 14:08
  I
• 14:08
  think
• 14:08
  all
• 14:08
  of
• 14:09
  that,
• 14:09
  it's
• 14:09
  a
• 14:09
  learning
• 14:09
  curve.
• 14:10
  I
• 14:10
  think
• 14:10
  right
• 14:10
  now
• 14:10
  is
• 14:11
  what
• 14:11
  it
• 14:11
  is
• 14:11
  really.
• 14:12
  Vendors
• 14:13
  that
• 14:13
  have
• 14:13
  it
• 14:13
  and
• 14:13
  are
• 14:14
  able
• 14:14
  to
• 14:14
  share
• 14:15
  what
• 14:16
  they
• 14:16
  can
• 14:16
  do
• 14:17
  are
• 14:17
  still
• 14:18
  just
• 14:18
  getting
• 14:18
  to
• 14:18
  the
• 14:19
  place
• 14:19
  where
• 14:19
  they
• 14:19
  can
• 14:19
  describe
• 14:20
  what
• 14:20
  they're
• 14:20
  going
• 14:20
  to
• 14:20
  be
• 14:20
  able
• 14:20
  to
• 14:20
  do
• 14:21
  for
• 14:21
  our
• 14:21
  customers
• 14:21
  and
• 14:21
  then
• 14:22
  educating
• 14:23
  the
• 14:23
  market
• 14:23
  about
• 14:24
  what
• 14:24
  can
• 14:24
  be,
• 14:24
  what
• 14:25
  can
• 14:25
  be
• 14:25
  done.
• 14:25
  So
• 14:26
  I
• 14:26
  think
• 14:26
  there's
• 14:26
  some
• 14:27
  opportunities
• 14:27
  more
• 14:27
  like
• 14:28
  in
• 14:28
  the
• 14:28
  software
• 14:28
  side
• 14:29
  of
• 14:29
  things
• 14:30
  coming
• 14:30
  up.
• 14:31
  Right.
• 14:32
  As
• 14:32
  opposed
• 14:32
  to
• 14:32
  maybe
• 14:33
  the
• 14:33
  mechatronics.
• 14:34
  Great
• 14:34
  segue
• 14:35
  for
• 14:35
  me
• 14:35
  actually.
• 14:35
  So,
• 14:36
  you
• 14:36
  know,
• 14:36
  because
• 14:37
  basically
• 14:37
  what
• 14:37
  I'm
• 14:37
  hearing
• 14:38
  from
• 14:38
  you,
• 14:38
  you
• 14:38
  know,
• 14:39
  net
• 14:39
  net,
• 14:39
  when
• 14:39
  you
• 14:39
  get
• 14:39
  down
• 14:39
  to
• 14:40
  it
• 14:40
  at
• 14:40
  the
• 14:40
  end
• 14:40
  of
• 14:40
  the
• 14:40
  day,
• 14:40
  is
• 14:40
  like
• 14:41
  there's
• 14:41
  a
• 14:41
  focus
• 14:41
  on,
• 14:42
  you
• 14:42
  know,
• 14:42
  being
• 14:43
  very
• 14:43
  judicious
• 14:44
  with
• 14:44
  how
• 14:44
  you're
• 14:44
  spending
• 14:45
  your
• 14:45
  money.
• 14:45
  So
• 14:45
  the,
• 14:46
  the
• 14:46
  retailers,
• 14:46
  especially
• 14:47
  those
• 14:47
  that
• 14:47
  are
• 14:47
  operating
• 14:47
  warehouses,
• 14:48
  are
• 14:48
  going
• 14:48
  to
• 14:48
  be
• 14:48
  focused
• 14:49
  on
• 14:49
  things
• 14:49
  like
• 14:49
  labor
• 14:49
  efficiency
• 14:50
  and
• 14:50
  throughput
• 14:50
  and
• 14:51
  reducing
• 14:51
  the
• 14:51
  operating
• 14:51
  expenses
• 14:52
  of
• 14:52
  their
• 14:52
  buildings,
• 14:52
  as
• 14:53
  they
• 14:53
  rightly
• 14:53
  should.
• 14:54
  But
• 14:54
  at
• 14:55
  the
• 14:55
  same
• 14:55
  time,
• 14:55
  the
• 14:55
  customer
• 14:56
  experience
• 14:56
  expectations
• 14:56
  are
• 14:57
  going
• 14:57
  up
• 14:57
  like
• 14:57
  you
• 14:57
  said
• 14:58
  at
• 14:58
  the
• 14:58
  outset.
• 14:58
  So,
• 14:59
  so
• 14:59
  how
• 15:00
  are,
• 15:01
  so
• 15:01
  in
• 15:01
  the
• 15:02
  money
• 15:02
  that
• 15:02
  they
• 15:02
  are
• 15:02
  spending,
• 15:03
  how
• 15:03
  are
• 15:03
  they
• 15:04
  trying
• 15:04
  to
• 15:04
  do
• 15:05
  that?
• 15:05
  Well,
• 15:05
  they're
• 15:06
  spending
• 15:06
  money
• 15:06
  to
• 15:07
  increase
• 15:08
  the
• 15:08
  speed
• 15:08
  of
• 15:08
  delivery
• 15:09
  to
• 15:09
  their
• 15:09
  customers.
• 15:10
  So
• 15:10
  that
• 15:10
  does
• 15:10
  speak
• 15:11
  to
• 15:11
  automation
• 15:12
  a
• 15:12
  little
• 15:12
  bit,
• 15:13
  you
• 15:14
  know,
• 15:15
  but
• 15:15
  a
• 15:15
  lot
• 15:15
  of
• 15:16
  it
• 15:16
  too.
• 15:16
  And,
• 15:16
  and,
• 15:17
  and
• 15:17
  like
• 15:17
  I
• 15:17
  said,
• 15:18
  having
• 15:18
  the
• 15:18
  product
• 15:18
  in
• 15:19
  the
• 15:19
  right
• 15:19
  place
• 15:20
  so
• 15:21
  planning
• 15:21
  and
• 15:21
  inventory
• 15:22
  management
• 15:23
  and
• 15:24
  then
• 15:25
  accuracy
• 15:26
  is
• 15:26
  a
• 15:26
  huge
• 15:27
  issue,
• 15:27
  right.
• 15:28
  Whether
• 15:28
  it's
• 15:28
  in
• 15:29
  your
• 15:29
  store,
• 15:29
  having
• 15:29
  inventory
• 15:30
  accurate
• 15:30
  or
• 15:31
  getting
• 15:31
  the
• 15:31
  right
• 15:31
  thing
• 15:31
  to
• 15:32
  a
• 15:32
  person
• 15:32
  directly.
• 15:33
  So
• 15:34
  that
• 15:34
  can
• 15:34
  be
• 15:34
  managed
• 15:35
  through
• 15:35
  software
• 15:35
  and
• 15:37
  certain
• 15:37
  types
• 15:37
  of
• 15:37
  mechatronics.
• 15:39
  But
• 15:40
  right
• 15:40
  now
• 15:40
  we're
• 15:40
  just
• 15:41
  seeing
• 15:41
  that
• 15:42
  it
• 15:43
  used
• 15:43
  to
• 15:43
  be
• 15:44
  just
• 15:45
  for
• 15:45
  sheer
• 15:45
  volume
• 15:46
  purposes,
• 15:46
  right?
• 15:47
  And
• 15:47
  the,
• 15:47
  and
• 15:47
  the,
• 15:48
  and
• 15:48
  the,
• 15:49
  to
• 15:49
  get
• 15:49
  product
• 15:50
  out
• 15:50
  the
• 15:50
  door
• 15:51
  with
• 15:51
  the
• 15:51
  labor
• 15:51
  that
• 15:52
  was
• 15:52
  available.
• 15:52
  People
• 15:53
  were,
• 15:54
  and
• 15:54
  this
• 15:54
  is
• 15:54
  just
• 15:55
  right
• 15:55
  after
• 15:55
  Covid,
• 15:56
  people
• 15:56
  were
• 15:56
  just
• 15:56
  spending
• 15:57
  money
• 15:57
  like
• 15:57
  crazy,
• 15:57
  right,
• 15:58
  to,
• 15:58
  to
• 15:58
  automate
• 15:59
  processes
• 15:59
  to
• 16:00
  get
• 16:00
  stuff
• 16:00
  out
• 16:00
  the
• 16:01
  door.
• 16:01
  And
• 16:04
  now
• 16:05
  they're
• 16:06
  looking
• 16:06
  at
• 16:07
  more
• 16:07
  of
• 16:07
  incremental
• 16:08
  investments
• 16:09
  to
• 16:09
  their
• 16:09
  existing
• 16:10
  buildings
• 16:11
  because
• 16:11
  again,
• 16:11
  they're
• 16:11
  not
• 16:12
  moving
• 16:12
  towards
• 16:13
  new
• 16:14
  roy,
• 16:14
  new
• 16:14
  greenfield,
• 16:15
  DCs
• 16:15
  as
• 16:16
  much
• 16:16
  as
• 16:16
  they
• 16:16
  used
• 16:16
  to.
• 16:17
  So
• 16:17
  it's,
• 16:18
  it's
• 16:18
  got
• 16:18
  to
• 16:18
  be
• 16:19
  something
• 16:19
  you
• 16:19
  can
• 16:19
  fit
• 16:19
  in
• 16:19
  my
• 16:20
  existing
• 16:20
  footprint
• 16:20
  or
• 16:21
  easily,
• 16:21
  you
• 16:22
  know,
• 16:22
  be
• 16:22
  added
• 16:24
  to
• 16:24
  give
• 16:24
  me,
• 16:25
  you
• 16:25
  know,
• 16:25
  more
• 16:27
  volume
• 16:27
  and
• 16:28
  throughput
• 16:28
  through
• 16:28
  the
• 16:28
  existing
• 16:29
  infrastructure.
• 16:31
  In
• 16:31
  doing
• 16:31
  that,
• 16:32
  you
• 16:32
  can't
• 16:32
  go
• 16:32
  in
• 16:32
  with
• 16:32
  big
• 16:33
  bang,
• 16:33
  you
• 16:34
  know,
• 16:34
  automation
• 16:35
  all
• 16:35
  the
• 16:35
  time.
• 16:35
  You
• 16:36
  have
• 16:36
  to
• 16:36
  talk
• 16:36
  about,
• 16:36
  you
• 16:37
  know,
• 16:37
  automated
• 16:37
  mobile
• 16:38
  robots
• 16:38
  or
• 16:38
  dense
• 16:39
  store
• 16:39
  in
• 16:39
  dense,
• 16:40
  highly
• 16:40
  dense
• 16:41
  automated
• 16:42
  storage
• 16:42
  and
• 16:42
  retrieval
• 16:43
  systems.
• 16:45
  So,
• 16:45
  you
• 16:45
  know,
• 16:47
  and
• 16:48
  it's
• 16:48
  interesting
• 16:48
  because
• 16:49
  while
• 16:49
  that's
• 16:49
  happening
• 16:50
  and
• 16:50
  talking
• 16:51
  about,
• 16:51
  you
• 16:51
  know,
• 16:51
  the
• 16:51
  discussion
• 16:52
  we
• 16:52
  had
• 16:52
  around
• 16:52
  having
• 16:53
  more
• 16:53
  stock,
• 16:54
  there
• 16:54
  are
• 16:54
  a
• 16:54
  lot
• 16:54
  of
• 16:55
  more
• 16:55
  flexible
• 16:56
  mobile
• 16:57
  automation
• 16:58
  that
• 16:58
  can
• 16:58
  fit
• 16:59
  in
• 16:59
  a
• 16:59
  brownfield
• 17:00
  facility
• 17:01
  easier,
• 17:02
  fast
• 17:02
  and
• 17:02
  it
• 17:03
  can
• 17:03
  be
• 17:03
  implemented
• 17:03
  faster
• 17:04
  than
• 17:04
  the
• 17:05
  bolted
• 17:05
  down
• 17:07
  type
• 17:07
  of
• 17:07
  equipment
• 17:07
  that
• 17:08
  we
• 17:08
  used
• 17:08
  to
• 17:08
  put
• 17:08
  in
• 17:08
  buildings.
• 17:09
  I
• 17:09
  mean
• 17:09
  there's,
• 17:09
  that's
• 17:10
  still
• 17:10
  happening,
• 17:10
  but
• 17:10
  there's,
• 17:11
  you
• 17:11
  know,
• 17:12
  there's
• 17:12
  things
• 17:12
  like
• 17:13
  it
• 17:14
  used
• 17:14
  to
• 17:14
  be
• 17:14
  what
• 17:14
  you
• 17:14
  would
• 17:15
  have
• 17:15
  a,
• 17:15
  what
• 17:16
  we
• 17:16
  call
• 17:16
  a
• 17:16
  mini
• 17:16
  load,
• 17:17
  which
• 17:17
  holds
• 17:18
  inventory,
• 17:19
  kind
• 17:19
  of
• 17:19
  bulk
• 17:19
  inventory,
• 17:20
  supplemental
• 17:21
  inventory.
• 17:22
  And
• 17:23
  those
• 17:23
  were
• 17:23
  rack,
• 17:24
  it
• 17:24
  was
• 17:25
  huge
• 17:25
  pieces
• 17:26
  of
• 17:26
  steel
• 17:26
  rack
• 17:27
  bolted
• 17:27
  to
• 17:27
  the
• 17:28
  ground,
• 17:28
  very
• 17:29
  expensive
• 17:30
  and
• 17:30
  took
• 17:31
  a
• 17:31
  long
• 17:31
  time
• 17:31
  to
• 17:31
  implement.
• 17:31
  But
• 17:32
  now
• 17:32
  we
• 17:32
  have
• 17:33
  simplified
• 17:34
  racking
• 17:34
  structure
• 17:35
  with
• 17:35
  mobile
• 17:36
  robots
• 17:36
  going
• 17:36
  in.
• 17:37
  And
• 17:37
  we
• 17:37
  even
• 17:38
  are
• 17:38
  seeing
• 17:39
  those
• 17:39
  types
• 17:39
  of
• 17:40
  products
• 17:40
  be
• 17:40
  able
• 17:41
  to
• 17:41
  go
• 17:41
  up
• 17:41
  to
• 17:41
  24
• 17:42
  meters
• 17:42
  or
• 17:43
  78ft
• 17:44
  high.
• 17:46
  So
• 17:46
  they
• 17:46
  can
• 17:46
  even
• 17:47
  go
• 17:47
  in
• 17:47
  a
• 17:47
  new
• 17:47
  building,
• 17:47
  really
• 17:48
  high
• 17:48
  building,
• 17:48
  but
• 17:48
  they
• 17:49
  can
• 17:49
  certainly
• 17:49
  accommodate
• 17:50
  a
• 17:50
  building
• 17:50
  that
• 17:51
  has
• 17:51
  a
• 17:51
  smaller
• 17:52
  height,
• 17:52
  ceiling
• 17:53
  height.
• 17:53
  So
• 17:53
  there's
• 17:53
  lots
• 17:54
  of
• 17:54
  new
• 17:54
  things
• 17:55
  in
• 17:55
  the
• 17:55
  flexible
• 17:56
  automation
• 17:56
  world
• 17:57
  that
• 17:57
  can
• 17:57
  solve
• 17:58
  problems
• 17:58
  inside
• 17:59
  of
• 17:59
  an
• 17:59
  existing
• 17:59
  building.
• 18:01
  They
• 18:01
  just
• 18:01
  tend
• 18:01
  to
• 18:01
  be
• 18:01
  smaller
• 18:02
  in
• 18:03
  size.
• 18:04
  And
• 18:05
  so
• 18:05
  I
• 18:05
  think
• 18:05
  that
• 18:06
  companies
• 18:06
  like
• 18:07
  Domatic,
• 18:08
  it's
• 18:08
  been
• 18:09
  a
• 18:09
  big
• 18:09
  shift,
• 18:10
  right?
• 18:11
  Where
• 18:12
  our
• 18:12
  projects
• 18:13
  used
• 18:14
  to
• 18:14
  be
• 18:14
  really
• 18:14
  large,
• 18:15
  our
• 18:15
  customers
• 18:16
  now
• 18:16
  are
• 18:16
  buying
• 18:17
  more
• 18:17
  of
• 18:17
  smaller
• 18:19
  spend
• 18:20
  type
• 18:20
  projects.
• 18:22
  So
• 18:23
  that's
• 18:23
  where
• 18:23
  we're
• 18:23
  seeing
• 18:23
  a
• 18:23
  big
• 18:24
  shift.
• 18:24
  And
• 18:24
  that's
• 18:24
  been
• 18:25
  consistent
• 18:25
  Actually,
• 18:25
  for
• 18:25
  the
• 18:26
  last
• 18:26
  couple
• 18:26
  years.
• 18:27
  Right.
• 18:27
  And
• 18:27
  so
• 18:27
  the
• 18:28
  operative
• 18:28
  word
• 18:28
  there
• 18:28
  is
• 18:28
  flexibility.
• 18:29
  People
• 18:29
  are
• 18:29
  wanting
• 18:30
  to
• 18:30
  put
• 18:30
  in
• 18:31
  technology
• 18:31
  that
• 18:31
  is
• 18:32
  flexible,
• 18:32
  that
• 18:32
  doesn't
• 18:32
  paint
• 18:33
  them
• 18:33
  into
• 18:33
  a
• 18:33
  corner
• 18:34
  in
• 18:34
  any
• 18:34
  of
• 18:34
  these
• 18:34
  buildings.
• 18:35
  I'm
• 18:35
  curious
• 18:35
  too,
• 18:36
  Kim,
• 18:36
  from
• 18:36
  a
• 18:36
  financing
• 18:37
  perspective,
• 18:37
  going
• 18:38
  back
• 18:38
  to
• 18:38
  the
• 18:38
  interest
• 18:38
  rate
• 18:39
  conversation,
• 18:40
  how
• 18:40
  are
• 18:40
  the
• 18:40
  retailers
• 18:41
  looking
• 18:41
  to
• 18:41
  finance
• 18:42
  these?
• 18:42
  Is
• 18:42
  it
• 18:43
  still
• 18:43
  through
• 18:43
  capex
• 18:44
  or
• 18:44
  are
• 18:44
  they
• 18:44
  looking
• 18:44
  at
• 18:44
  these
• 18:45
  installations
• 18:46
  more
• 18:46
  through
• 18:46
  like
• 18:46
  an
• 18:46
  OPEX
• 18:47
  type
• 18:47
  model?
• 18:48
  Yeah,
• 18:49
  definitely.
• 18:49
  When
• 18:49
  you're
• 18:49
  talking
• 18:50
  about
• 18:50
  mobile
• 18:50
  robots,
• 18:51
  the
• 18:51
  robots
• 18:52
  as
• 18:52
  a
• 18:52
  service
• 18:52
  is
• 18:53
  definitely
• 18:53
  an
• 18:53
  option
• 18:54
  that
• 18:54
  people
• 18:54
  look
• 18:54
  at.
• 18:56
  Same
• 18:56
  for
• 18:56
  software.
• 18:57
  Software
• 18:57
  as
• 18:57
  a
• 18:58
  service
• 18:59
  is
• 19:00
  gaining.
• 19:00
  Well,
• 19:01
  actually
• 19:01
  it's
• 19:01
  been
• 19:01
  very
• 19:02
  popular.
• 19:02
  So
• 19:02
  now
• 19:03
  we're
• 19:03
  starting
• 19:03
  to
• 19:03
  have
• 19:03
  like
• 19:04
  people
• 19:04
  look
• 19:04
  at
• 19:04
  how
• 19:05
  can
• 19:05
  I
• 19:05
  do
• 19:06
  my
• 19:06
  automation
• 19:07
  on
• 19:07
  the
• 19:07
  same
• 19:08
  kind
• 19:08
  of
• 19:08
  model
• 19:08
  with
• 19:08
  robots
• 19:09
  as
• 19:09
  a
• 19:09
  service?
• 19:10
  So
• 19:10
  that,
• 19:11
  you
• 19:11
  know,
• 19:11
  is
• 19:11
  gained
• 19:12
  in
• 19:12
  popularity
• 19:12
  as
• 19:13
  well.
• 19:15
  Definitely.
• 19:15
  So
• 19:15
  it's
• 19:16
  an
• 19:16
  easier
• 19:17
  entry
• 19:17
  point.
• 19:17
  You
• 19:17
  know,
• 19:18
  I
• 19:18
  can
• 19:18
  get
• 19:18
  in
• 19:18
  without
• 19:18
  a
• 19:19
  lot
• 19:19
  of
• 19:20
  front,
• 19:21
  front
• 19:21
  money
• 19:21
  or
• 19:22
  money
• 19:22
  up
• 19:22
  front.
• 19:23
  And
• 19:23
  then,
• 19:24
  you
• 19:24
  know,
• 19:24
  if
• 19:24
  I
• 19:24
  need
• 19:25
  to
• 19:25
  add
• 19:25
  more
• 19:25
  or
• 19:25
  take
• 19:26
  away,
• 19:26
  I
• 19:26
  can,
• 19:26
  you
• 19:27
  know,
• 19:27
  adjust.
• 19:27
  So.
• 19:28
  Got
• 19:28
  it.
• 19:28
  So
• 19:28
  you
• 19:28
  mentioned
• 19:29
  AI.
• 19:29
  Now
• 19:29
  to
• 19:30
  me
• 19:30
  that
• 19:30
  AI,
• 19:31
  you
• 19:31
  know,
• 19:31
  everything
• 19:31
  you
• 19:32
  said
• 19:32
  is
• 19:32
  not.
• 19:32
  Even
• 19:33
  though
• 19:33
  we
• 19:33
  were
• 19:33
  kind
• 19:33
  of
• 19:33
  joking
• 19:34
  before
• 19:34
  that,
• 19:34
  yeah,
• 19:34
  20,
• 19:35
  26
• 19:35
  is
• 19:35
  going
• 19:35
  to
• 19:35
  be
• 19:35
  vanilla.
• 19:36
  I'm
• 19:36
  not
• 19:36
  surprised
• 19:37
  at
• 19:37
  all
• 19:37
  by
• 19:38
  anything
• 19:38
  you
• 19:38
  said.
• 19:39
  And
• 19:39
  I
• 19:39
  think
• 19:39
  the
• 19:39
  elephant
• 19:40
  in
• 19:40
  the
• 19:40
  room
• 19:41
  is
• 19:41
  really,
• 19:42
  you
• 19:42
  know,
• 19:42
  AI
• 19:43
  because,
• 19:43
  you
• 19:43
  know,
• 19:44
  everyone's
• 19:44
  talking
• 19:44
  about
• 19:45
  it.
• 19:45
  The
• 19:46
  question
• 19:46
  is,
• 19:46
  is
• 19:46
  it
• 19:46
  real
• 19:47
  yet?
• 19:47
  And
• 19:48
  I'm
• 19:48
  going
• 19:48
  to
• 19:48
  make
• 19:48
  a
• 19:48
  bold
• 19:48
  prediction
• 19:49
  here
• 19:49
  and
• 19:49
  I
• 19:49
  want
• 19:49
  to
• 19:49
  see
• 19:49
  what
• 19:50
  you
• 19:50
  think.
• 19:50
  I
• 19:50
  want
• 19:50
  to
• 19:50
  get
• 19:50
  your
• 19:50
  reaction
• 19:51
  because
• 19:51
  I
• 19:51
  know
• 19:51
  you'll
• 19:52
  always,
• 19:52
  you
• 19:52
  always
• 19:52
  take
• 19:53
  me
• 19:53
  to
• 19:53
  task
• 19:53
  on
• 19:53
  my,
• 19:54
  on
• 19:54
  what
• 19:54
  I
• 19:54
  say.
• 19:55
  And
• 19:55
  so,
• 19:55
  and
• 19:55
  I
• 19:55
  really
• 19:56
  appreciate
• 19:56
  that
• 19:56
  about
• 19:56
  you.
• 19:57
  So,
• 19:57
  you
• 19:58
  know,
• 19:58
  I
• 19:58
  think
• 20:00
  that
• 20:00
  agentic
• 20:01
  AI
• 20:01
  particularly
• 20:02
  is
• 20:03
  going
• 20:03
  to
• 20:03
  hit
• 20:03
  warehouse
• 20:04
  operations
• 20:05
  faster
• 20:06
  than
• 20:06
  any
• 20:06
  other
• 20:07
  part
• 20:07
  of
• 20:07
  a
• 20:07
  retailer's
• 20:08
  workforce.
• 20:09
  And
• 20:09
  so
• 20:09
  do
• 20:10
  you
• 20:10
  think
• 20:10
  I'm
• 20:10
  right
• 20:11
  about
• 20:11
  that?
• 20:11
  Am
• 20:11
  I
• 20:12
  getting
• 20:12
  ahead
• 20:12
  of
• 20:12
  myself?
• 20:13
  What
• 20:13
  is,
• 20:13
  what
• 20:14
  is
• 20:14
  your
• 20:14
  take
• 20:14
  on
• 20:15
  that?
• 20:15
  How
• 20:15
  wrong
• 20:16
  or
• 20:16
  how
• 20:16
  right
• 20:16
  am
• 20:16
  I?
• 20:17
  I
• 20:17
  actually
• 20:18
  think
• 20:18
  you're
• 20:18
  right.
• 20:19
  You
• 20:19
  do?
• 20:20
  Yeah.
• 20:20
  And
• 20:22
  I
• 20:23
  won't
• 20:23
  say
• 20:23
  that
• 20:23
  it's
• 20:23
  there
• 20:24
  yet.
• 20:24
  Right.
• 20:25
  Fully.
• 20:26
  And
• 20:26
  people
• 20:26
  are
• 20:26
  starting
• 20:27
  to
• 20:27
  work
• 20:27
  on
• 20:27
  it.
• 20:28
  Companies
• 20:28
  like
• 20:29
  ourselves,
• 20:30
  we're
• 20:31
  starting
• 20:31
  to
• 20:31
  integrate
• 20:32
  AI
• 20:32
  or
• 20:32
  working
• 20:33
  to
• 20:33
  integrate
• 20:33
  AI.
• 20:35
  The
• 20:35
  reason
• 20:35
  that
• 20:36
  it
• 20:36
  makes
• 20:36
  sense
• 20:37
  inside
• 20:37
  of
• 20:37
  a
• 20:38
  distribution
• 20:38
  center
• 20:38
  warehouse
• 20:39
  is
• 20:39
  because
• 20:39
  we
• 20:40
  have
• 20:40
  so
• 20:41
  many
• 20:41
  things
• 20:41
  that
• 20:41
  can
• 20:42
  be
• 20:42
  measured.
• 20:43
  Right.
• 20:43
  We
• 20:43
  can
• 20:44
  measure
• 20:44
  rates
• 20:44
  and
• 20:45
  speeds
• 20:45
  of
• 20:45
  conveyor
• 20:46
  and
• 20:46
  we
• 20:47
  can
• 20:47
  measure
• 20:47
  the
• 20:47
  throughput
• 20:48
  of
• 20:48
  the
• 20:48
  overall
• 20:49
  building.
• 20:49
  We
• 20:50
  can
• 20:50
  measure
• 20:50
  how
• 20:50
  many
• 20:50
  people
• 20:51
  are
• 20:51
  on
• 20:51
  staff
• 20:51
  and
• 20:51
  what
• 20:51
  are
• 20:52
  they
• 20:52
  doing,
• 20:52
  Are
• 20:52
  they
• 20:53
  being
• 20:53
  efficient
• 20:53
  or
• 20:53
  effective?
• 20:56
  There
• 20:56
  are
• 20:56
  so
• 20:57
  many
• 20:57
  places
• 20:57
  that
• 20:57
  you
• 20:58
  can
• 20:58
  measure
• 20:59
  and
• 20:59
  then
• 20:59
  therefore
• 21:00
  use
• 21:00
  that
• 21:01
  information
• 21:01
  to
• 21:02
  say,
• 21:02
  oh,
• 21:02
  I
• 21:02
  learned
• 21:03
  this.
• 21:04
  If
• 21:05
  I
• 21:05
  do
• 21:05
  this,
• 21:05
  what
• 21:06
  will
• 21:06
  happen?
• 21:07
  You
• 21:07
  can
• 21:07
  experiment
• 21:08
  with
• 21:08
  digital
• 21:08
  twins
• 21:09
  too,
• 21:09
  right,
• 21:09
  As
• 21:09
  a
• 21:10
  part
• 21:10
  of
• 21:10
  the
• 21:10
  equation.
• 21:11
  But
• 21:12
  the
• 21:12
  amount
• 21:12
  of
• 21:12
  data
• 21:13
  that
• 21:13
  comes
• 21:13
  through
• 21:13
  a
• 21:14
  distribution
• 21:14
  center,
• 21:14
  I
• 21:15
  don't
• 21:15
  think
• 21:15
  people
• 21:15
  understand.
• 21:16
  Like,
• 21:16
  there's
• 21:17
  a
• 21:17
  ton
• 21:17
  of
• 21:17
  information
• 21:18
  that
• 21:19
  comes
• 21:19
  through
• 21:20
  our
• 21:20
  systems.
• 21:21
  And,
• 21:22
  and
• 21:22
  if
• 21:23
  you're
• 21:23
  using
• 21:23
  that
• 21:23
  better,
• 21:24
  like
• 21:24
  right
• 21:24
  now,
• 21:25
  everybody,
• 21:26
  we,
• 21:26
  you
• 21:27
  know,
• 21:27
  we
• 21:27
  give
• 21:27
  data
• 21:27
  back
• 21:28
  to
• 21:28
  customers.
• 21:28
  They
• 21:29
  get
• 21:29
  data
• 21:29
  from
• 21:30
  their
• 21:30
  warehouse
• 21:31
  management
• 21:31
  system
• 21:31
  as
• 21:32
  well.
• 21:33
  But
• 21:33
  then
• 21:33
  there's
• 21:34
  a
• 21:34
  whole
• 21:34
  team
• 21:34
  of
• 21:34
  people
• 21:34
  that
• 21:35
  sit
• 21:35
  around
• 21:35
  and
• 21:35
  look
• 21:36
  at
• 21:36
  that
• 21:36
  data
• 21:36
  and
• 21:36
  try
• 21:37
  to
• 21:37
  figure
• 21:37
  out
• 21:37
  what,
• 21:37
  what
• 21:38
  it's
• 21:38
  telling
• 21:38
  them
• 21:38
  and
• 21:38
  what
• 21:39
  they
• 21:39
  should
• 21:39
  be
• 21:39
  doing
• 21:39
  about
• 21:40
  it.
• 21:40
  And
• 21:40
  there's
• 21:41
  a
• 21:41
  whole
• 21:41
  support
• 21:41
  staff
• 21:42
  built
• 21:42
  around
• 21:42
  that.
• 21:43
  And
• 21:44
  when
• 21:44
  you
• 21:44
  think
• 21:45
  about
• 21:45
  what
• 21:45
  AI
• 21:46
  can
• 21:46
  do
• 21:46
  to
• 21:46
  make
• 21:47
  those
• 21:47
  people
• 21:47
  their
• 21:48
  work
• 21:48
  more
• 21:48
  efficient,
• 21:49
  completely,
• 21:50
  like,
• 21:51
  I
• 21:51
  think
• 21:51
  it
• 21:52
  has
• 21:52
  a
• 21:52
  complete.
• 21:53
  There's
• 21:54
  a
• 21:54
  whole
• 21:54
  lot
• 21:54
  of
• 21:55
  good
• 21:55
  that
• 21:55
  can
• 21:55
  come
• 21:55
  out
• 21:56
  of
• 21:56
  that,
• 21:56
  I
• 21:56
  guess,
• 21:57
  is
• 21:57
  what
• 21:57
  I'm
• 21:57
  trying
• 21:57
  to
• 21:57
  say,
• 21:58
  a
• 21:58
  huge
• 21:58
  impact.
• 22:00
  Well,
• 22:00
  I,
• 22:00
  I
• 22:00
  mean,
• 22:01
  I
• 22:01
  love
• 22:01
  that
• 22:01
  because
• 22:01
  I've
• 22:01
  never
• 22:01
  thought
• 22:02
  about
• 22:02
  that
• 22:02
  too.
• 22:02
  Like,
• 22:02
  you're,
• 22:03
  and
• 22:03
  you're
• 22:03
  dead
• 22:03
  right.
• 22:04
  Like,
• 22:05
  warehouses
• 22:05
  are
• 22:05
  run
• 22:05
  by
• 22:05
  engineered.
• 22:06
  You
• 22:06
  know,
• 22:07
  they
• 22:07
  are.
• 22:07
  They're
• 22:08
  run
• 22:08
  by
• 22:08
  engineers.
• 22:09
  And
• 22:09
  so
• 22:09
  they're
• 22:09
  the
• 22:09
  ones.
• 22:09
  I
• 22:10
  thought
• 22:10
  you
• 22:10
  just
• 22:10
  said
• 22:10
  engineered.
• 22:11
  I
• 22:12
  did,
• 22:12
  I
• 22:12
  did,
• 22:12
  I
• 22:13
  did
• 22:13
  say
• 22:13
  engineered,
• 22:14
  and
• 22:14
  then
• 22:14
  I
• 22:14
  changed
• 22:14
  it
• 22:14
  to
• 22:15
  engineers.
• 22:15
  But
• 22:15
  yes,
• 22:15
  like,
• 22:16
  because
• 22:16
  they're
• 22:17
  our
• 22:17
  friends.
• 22:17
  Chris,
• 22:18
  don't
• 22:18
  be
• 22:18
  mean
• 22:18
  to
• 22:18
  them.
• 22:21
  But,
• 22:21
  you
• 22:21
  know,
• 22:21
  hey,
• 22:22
  we're
• 22:22
  all
• 22:22
  friends
• 22:22
  here.
• 22:22
  But
• 22:23
  like,
• 22:23
  you
• 22:23
  know,
• 22:23
  that's
• 22:23
  true.
• 22:24
  And
• 22:24
  so
• 22:24
  they're
• 22:24
  the
• 22:24
  people
• 22:24
  that
• 22:25
  have
• 22:25
  the
• 22:25
  greatest
• 22:25
  proclivity
• 22:26
  to
• 22:26
  understand
• 22:26
  and
• 22:27
  how
• 22:27
  to
• 22:27
  use
• 22:27
  AI.
• 22:27
  And
• 22:27
  you're
• 22:27
  right.
• 22:28
  Everything
• 22:28
  inside
• 22:28
  a
• 22:29
  warehouse
• 22:29
  is
• 22:29
  absolutely
• 22:30
  tracked
• 22:31
  down
• 22:31
  to,
• 22:31
  you
• 22:31
  know,
• 22:32
  every
• 22:32
  nth
• 22:33
  degree.
• 22:34
  And
• 22:34
  I'm
• 22:34
  curious,
• 22:35
  too.
• 22:35
  My
• 22:35
  next
• 22:35
  question,
• 22:35
  though,
• 22:36
  Kim,
• 22:36
  is
• 22:36
  like,
• 22:37
  there's
• 22:37
  still
• 22:37
  a
• 22:37
  lot
• 22:37
  of
• 22:37
  people
• 22:38
  that
• 22:38
  work
• 22:38
  in
• 22:38
  a
• 22:38
  warehouse.
• 22:39
  Did
• 22:39
  through
• 22:39
  your
• 22:39
  research
• 22:40
  that
• 22:40
  you've
• 22:40
  done,
• 22:41
  your
• 22:41
  surveys,
• 22:41
  you've
• 22:41
  conducted,
• 22:42
  you
• 22:42
  get
• 22:42
  a
• 22:42
  sense
• 22:43
  of,
• 22:43
  like,
• 22:43
  you
• 22:44
  know,
• 22:44
  how
• 22:44
  many
• 22:44
  people
• 22:45
  are
• 22:45
  doing
• 22:45
  what
• 22:45
  types
• 22:46
  of
• 22:46
  jobs
• 22:47
  inside
• 22:47
  these
• 22:47
  warehouses
• 22:48
  as
• 22:48
  well.
• 22:49
  Yeah,
• 22:49
  we
• 22:49
  did.
• 22:50
  And
• 22:50
  love
• 22:51
  to
• 22:51
  invite
• 22:51
  anybody
• 22:52
  that
• 22:52
  would
• 22:52
  like
• 22:52
  to
• 22:53
  talk
• 22:53
  to
• 22:53
  me
• 22:53
  about
• 22:53
  this
• 22:54
  further,
• 22:54
  you
• 22:54
  know,
• 22:54
  reach
• 22:55
  out
• 22:55
  to
• 22:55
  me
• 22:55
  at
• 22:55
  Domatic
• 22:56
  or
• 22:56
  we'll
• 22:56
  talk
• 22:56
  about
• 22:57
  that
• 22:57
  at
• 22:57
  the
• 22:57
  end.
• 22:57
  But
• 22:58
  we
• 22:58
  have,
• 22:58
  we
• 22:59
  do
• 22:59
  these
• 22:59
  to
• 22:59
  help
• 23:00
  not
• 23:00
  only
• 23:00
  our,
• 23:00
  our
• 23:01
  company
• 23:01
  understand
• 23:01
  how
• 23:02
  to
• 23:02
  address
• 23:03
  the
• 23:03
  needs
• 23:03
  of
• 23:04
  our
• 23:04
  customers,
• 23:04
  but
• 23:04
  also
• 23:04
  to
• 23:05
  inform
• 23:05
  our
• 23:05
  customers,
• 23:05
  you
• 23:06
  know,
• 23:06
  what's
• 23:06
  going
• 23:06
  on.
• 23:07
  But
• 23:07
  we
• 23:07
  found,
• 23:08
  first
• 23:08
  of
• 23:08
  all,
• 23:08
  and
• 23:08
  then
• 23:09
  this
• 23:09
  is
• 23:09
  consistent
• 23:10
  across
• 23:10
  the
• 23:10
  board
• 23:11
  in
• 23:11
  our
• 23:11
  vertical
• 23:11
  markets
• 23:12
  that
• 23:12
  we,
• 23:12
  that
• 23:12
  we
• 23:13
  follow.
• 23:14
  But
• 23:14
  consistently
• 23:15
  the
• 23:15
  highest
• 23:15
  number
• 23:15
  of
• 23:15
  people
• 23:16
  that
• 23:16
  are
• 23:16
  using
• 23:16
  a
• 23:16
  warehouse
• 23:17
  are
• 23:17
  in
• 23:17
  the
• 23:17
  picking
• 23:19
  order
• 23:19
  fulfillment
• 23:20
  part
• 23:20
  of
• 23:20
  the,
• 23:21
  of
• 23:21
  the
• 23:21
  work
• 23:22
  because
• 23:22
  it's
• 23:22
  the
• 23:22
  most
• 23:23
  complex.
• 23:23
  It's
• 23:23
  where
• 23:23
  I'm
• 23:24
  handling
• 23:24
  an
• 23:24
  each
• 23:24
  and
• 23:24
  not
• 23:25
  a
• 23:25
  case
• 23:25
  and
• 23:25
  not
• 23:25
  a
• 23:25
  pallet
• 23:26
  usually.
• 23:26
  And
• 23:27
  I'm
• 23:27
  putting
• 23:27
  together
• 23:28
  an
• 23:28
  order
• 23:28
  whether
• 23:28
  it
• 23:28
  be
• 23:28
  going
• 23:29
  to
• 23:29
  a
• 23:29
  stor,
• 23:30
  to
• 23:30
  somebody's
• 23:30
  house.
• 23:31
  So
• 23:32
  that
• 23:32
  is
• 23:32
  the
• 23:32
  highest
• 23:33
  amount
• 23:33
  of
• 23:33
  labor.
• 23:34
  The
• 23:34
  second
• 23:34
  is
• 23:35
  in
• 23:35
  shipping
• 23:35
  and
• 23:36
  outbound
• 23:36
  activities.
• 23:37
  Packing,
• 23:37
  shipping,
• 23:38
  outbound
• 23:38
  activities.
• 23:39
  But
• 23:40
  what
• 23:40
  we
• 23:40
  found,
• 23:40
  which
• 23:41
  was
• 23:41
  kind
• 23:41
  of
• 23:41
  blew
• 23:42
  my
• 23:42
  socks
• 23:42
  off
• 23:42
  when
• 23:43
  we
• 23:43
  got
• 23:43
  this
• 23:44
  last
• 23:44
  report
• 23:45
  back
• 23:45
  was
• 23:45
  that
• 23:46
  and
• 23:47
  we
• 23:47
  looked
• 23:47
  across
• 23:47
  four
• 23:48
  major
• 23:48
  verticals.
• 23:49
  General
• 23:49
  Merchandise,
• 23:50
  Grocery,
• 23:51
  food
• 23:51
  and
• 23:52
  Beverage
• 23:52
  and
• 23:52
  Durable
• 23:53
  manufacturing.
• 23:55
  Of
• 23:55
  all
• 23:55
  of
• 23:56
  those
• 23:56
  verticals,
• 23:56
  a
• 23:57
  third
• 23:57
  of
• 23:58
  their
• 23:58
  headcount
• 23:58
  in
• 23:59
  a
• 23:59
  distribution
• 23:59
  center
• 24:00
  is
• 24:00
  for
• 24:00
  support
• 24:01
  functions.
• 24:02
  So
• 24:03
  it's
• 24:03
  the
• 24:03
  stuff
• 24:03
  I
• 24:03
  was
• 24:04
  talking
• 24:04
  to
• 24:04
  you
• 24:04
  about
• 24:05
  looking
• 24:05
  at
• 24:06
  where
• 24:06
  am
• 24:06
  I
• 24:06
  all
• 24:06
  that
• 24:07
  data,
• 24:07
  what
• 24:07
  do
• 24:07
  I
• 24:07
  do
• 24:07
  with
• 24:08
  it?
• 24:08
  And
• 24:08
  then
• 24:10
  which
• 24:10
  is
• 24:11
  talking
• 24:11
  about
• 24:12
  inventory
• 24:12
  control,
• 24:13
  order
• 24:14
  management,
• 24:16
  where
• 24:16
  do
• 24:16
  I
• 24:16
  staff
• 24:17
  people,
• 24:18
  where
• 24:18
  do
• 24:18
  I
• 24:19
  need
• 24:19
  to
• 24:19
  make
• 24:19
  moves
• 24:19
  for
• 24:19
  inventory,
• 24:20
  you
• 24:20
  know,
• 24:20
  all
• 24:20
  that.
• 24:21
  It's
• 24:21
  all
• 24:21
  a
• 24:22
  third
• 24:23
  of
• 24:23
  the
• 24:23
  headcount
• 24:24
  business
• 24:24
  support
• 24:25
  functions.
• 24:26
  And
• 24:26
  it's
• 24:27
  the
• 24:27
  lowest
• 24:27
  amount
• 24:28
  of
• 24:28
  people
• 24:28
  in
• 24:29
  that
• 24:29
  group
• 24:29
  was
• 24:29
  the
• 24:30
  actual,
• 24:30
  one
• 24:30
  of
• 24:31
  the
• 24:31
  lowest
• 24:31
  amounts,
• 24:31
  I
• 24:32
  think
• 24:32
  it
• 24:32
  was
• 24:32
  the
• 24:32
  third
• 24:32
  lowest
• 24:33
  was
• 24:33
  maintenance
• 24:34
  staff,
• 24:34
  which
• 24:34
  you
• 24:34
  would
• 24:34
  have
• 24:35
  that
• 24:35
  when
• 24:35
  you
• 24:35
  talk
• 24:35
  about
• 24:35
  support
• 24:36
  in
• 24:36
  a
• 24:36
  building
• 24:36
  you're
• 24:36
  thinking
• 24:37
  oh
• 24:37
  I
• 24:37
  got
• 24:37
  a
• 24:37
  bunch
• 24:37
  of
• 24:38
  maintenance
• 24:38
  people
• 24:38
  around.
• 24:40
  And
• 24:41
  that
• 24:41
  wasn't
• 24:41
  the
• 24:41
  case.
• 24:42
  It
• 24:42
  was
• 24:42
  more
• 24:42
  in
• 24:42
  the,
• 24:43
  you
• 24:44
  know,
• 24:44
  managing
• 24:45
  the
• 24:45
  operations
• 24:46
  type
• 24:47
  of
• 24:47
  thing.
• 24:47
  So
• 24:47
  Kim,
• 24:47
  my
• 24:48
  hunch
• 24:48
  is
• 24:48
  like
• 24:48
  these
• 24:48
  people
• 24:48
  are
• 24:48
  like
• 24:49
  work
• 24:49
  in
• 24:49
  spreadsheets
• 24:50
  looking
• 24:50
  at
• 24:51
  data
• 24:51
  to
• 24:51
  try
• 24:51
  to
• 24:51
  decide
• 24:52
  what
• 24:52
  best
• 24:52
  actions
• 24:53
  to
• 24:53
  take
• 24:53
  inside
• 24:54
  the
• 24:54
  building.
• 24:54
  Things
• 24:54
  that
• 24:55
  feel
• 24:55
  feel
• 24:56
  almost
• 24:56
  tailor
• 24:57
  made
• 24:57
  for
• 24:57
  agentic
• 24:58
  AI
• 24:58
  as
• 24:59
  it's
• 24:59
  defined.
• 25:00
  Yeah,
• 25:01
  and
• 25:01
  that's
• 25:01
  why
• 25:01
  I
• 25:01
  think
• 25:02
  there's,
• 25:02
  there's
• 25:02
  going
• 25:02
  to
• 25:02
  be
• 25:03
  some
• 25:03
  really
• 25:03
  cool
• 25:03
  opportunities
• 25:04
  coming
• 25:04
  forward
• 25:05
  and
• 25:06
  you
• 25:06
  know,
• 25:06
  as
• 25:06
  people
• 25:06
  get
• 25:07
  their
• 25:07
  products
• 25:07
  solidified
• 25:08
  and
• 25:09
  there's
• 25:09
  just
• 25:09
  a
• 25:09
  ton
• 25:10
  of
• 25:10
  opportunity
• 25:10
  there
• 25:11
  to
• 25:11
  help
• 25:11
  our
• 25:11
  customers
• 25:11
  be
• 25:12
  more
• 25:12
  efficient.
• 25:13
  And
• 25:13
  when
• 25:13
  you,
• 25:13
  and
• 25:13
  when
• 25:13
  you're
• 25:14
  more
• 25:14
  efficient,
• 25:14
  you
• 25:14
  have
• 25:15
  that
• 25:15
  data
• 25:15
  available,
• 25:16
  you're
• 25:17
  more
• 25:17
  agile
• 25:18
  and
• 25:18
  it
• 25:18
  speaks
• 25:19
  to
• 25:19
  those
• 25:20
  hitting
• 25:20
  those
• 25:20
  customer
• 25:20
  service
• 25:21
  levels.
• 25:22
  I
• 25:22
  can
• 25:22
  make
• 25:22
  decisions
• 25:23
  faster,
• 25:23
  I
• 25:23
  can
• 25:24
  impact
• 25:24
  change
• 25:24
  for
• 25:25
  my
• 25:25
  customer
• 25:25
  faster.
• 25:26
  There's
• 25:26
  going
• 25:26
  to
• 25:27
  be
• 25:27
  a
• 25:27
  lot
• 25:27
  of
• 25:27
  things.
• 25:27
  I
• 25:27
  think
• 25:27
  they'll
• 25:28
  be
• 25:28
  really
• 25:28
  exciting
• 25:28
  with
• 25:28
  software
• 25:29
  and
• 25:29
  AI
• 25:29
  coming
• 25:30
  up
• 25:30
  in
• 25:30
  the
• 25:30
  next
• 25:30
  few
• 25:31
  years.
• 25:31
  Okay,
• 25:32
  so
• 25:32
  Kim,
• 25:32
  you
• 25:33
  said
• 25:33
  you
• 25:33
  don't
• 25:33
  think
• 25:33
  it's
• 25:33
  going
• 25:33
  to
• 25:33
  happen
• 25:34
  this
• 25:34
  year.
• 25:35
  We
• 25:35
  won't
• 25:35
  see
• 25:35
  a
• 25:35
  big
• 25:35
  impact
• 25:36
  this
• 25:36
  year.
• 25:36
  But
• 25:37
  at
• 25:37
  what
• 25:37
  point
• 25:38
  do
• 25:38
  you
• 25:38
  think
• 25:38
  we'll
• 25:39
  see
• 25:39
  this
• 25:39
  impact
• 25:39
  where
• 25:40
  maybe
• 25:41
  that
• 25:41
  third
• 25:41
  number
• 25:42
  starts
• 25:42
  to,
• 25:43
  you
• 25:43
  know,
• 25:43
  be
• 25:43
  looked
• 25:43
  at
• 25:43
  very
• 25:43
  hard
• 25:44
  and
• 25:44
  take
• 25:44
  and
• 25:44
  people
• 25:45
  start
• 25:45
  to
• 25:45
  take
• 25:45
  action
• 25:45
  on
• 25:46
  it
• 25:46
  in
• 25:46
  some
• 25:46
  way,
• 25:46
  shape
• 25:46
  or
• 25:47
  form.
• 25:47
  Yeah,
• 25:48
  I
• 25:48
  think
• 25:48
  we're,
• 25:49
  we're
• 25:49
  going
• 25:49
  to
• 25:49
  start
• 25:50
  then
• 25:50
  towards
• 25:50
  the
• 25:50
  end
• 25:51
  of
• 25:51
  this
• 25:51
  year
• 25:51
  seeing
• 25:51
  some
• 25:52
  impact.
• 25:52
  But
• 25:52
  more
• 25:52
  into
• 25:52
  2027
• 25:55
  and,
• 25:56
  you
• 25:56
  know,
• 25:56
  there's
• 25:57
  a
• 25:57
  lot
• 25:57
  of
• 25:57
  focus
• 25:57
  now
• 25:59
  going
• 25:59
  on
• 25:59
  within,
• 26:00
  you
• 26:00
  know,
• 26:00
  companies
• 26:01
  like
• 26:01
  ours
• 26:01
  where
• 26:02
  our,
• 26:03
  our
• 26:03
  customer
• 26:03
  service
• 26:04
  or
• 26:04
  Lifecycle
• 26:04
  services
• 26:05
  team
• 26:05
  are
• 26:06
  doing
• 26:07
  a
• 26:07
  lot
• 26:07
  of
• 26:08
  work
• 26:08
  to
• 26:08
  support
• 26:08
  our
• 26:09
  customers
• 26:09
  around
• 26:09
  those
• 26:10
  topics,
• 26:10
  you
• 26:10
  know,
• 26:11
  and
• 26:12
  not
• 26:12
  just
• 26:12
  on
• 26:12
  spare
• 26:13
  parts
• 26:13
  and
• 26:14
  maintain,
• 26:14
  maintaining
• 26:15
  your
• 26:15
  equipment.
• 26:16
  You
• 26:16
  know,
• 26:16
  we're
• 26:16
  getting
• 26:17
  more
• 26:17
  into
• 26:18
  how
• 26:18
  do
• 26:18
  we
• 26:18
  support
• 26:19
  you
• 26:19
  from,
• 26:20
  like
• 26:20
  I
• 26:20
  said
• 26:20
  that
• 26:20
  being
• 26:21
  able
• 26:21
  to
• 26:21
  see
• 26:21
  what's
• 26:21
  going
• 26:21
  on
• 26:22
  inside
• 26:22
  your
• 26:22
  building
• 26:23
  eventually
• 26:23
  what's
• 26:24
  connecting
• 26:24
  outside
• 26:24
  your
• 26:25
  four
• 26:25
  walls.
• 26:26
  So
• 26:27
  that
• 26:27
  just
• 26:27
  will
• 26:27
  continue
• 26:28
  to
• 26:28
  grow
• 26:29
  and
• 26:29
  I
• 26:29
  think
• 26:30
  we're
• 26:30
  going
• 26:30
  to
• 26:30
  see
• 26:30
  a,
• 26:31
  you
• 26:31
  know,
• 26:31
  an
• 26:31
  interesting
• 26:31
  market
• 26:32
  into
• 26:33
  next
• 26:33
  year.
• 26:34
  Wow.
• 26:34
  Wow.
• 26:35
  Really
• 26:35
  good
• 26:35
  stuff,
• 26:36
  man.
• 26:36
  So,
• 26:36
  okay,
• 26:37
  so
• 26:37
  if
• 26:37
  I,
• 26:37
  if
• 26:37
  I
• 26:38
  take
• 26:38
  a
• 26:38
  pause
• 26:38
  for
• 26:38
  a
• 26:38
  sec,
• 26:38
  just
• 26:39
  kind
• 26:39
  of
• 26:39
  recap
• 26:39
  where
• 26:39
  we
• 26:40
  are
• 26:40
  for
• 26:40
  the
• 26:40
  audience.
• 26:40
  We've
• 26:40
  talked
• 26:41
  about
• 26:41
  technology,
• 26:42
  we've
• 26:42
  talked
• 26:42
  about
• 26:42
  automation,
• 26:43
  we've
• 26:43
  talked
• 26:43
  about
• 26:44
  AI.
• 26:44
  But
• 26:45
  there's
• 26:45
  more
• 26:45
  and
• 26:45
  more
• 26:45
  piece
• 26:46
  of
• 26:46
  the
• 26:46
  puzzle
• 26:46
  that
• 26:46
  I
• 26:46
  like
• 26:46
  to
• 26:47
  get
• 26:47
  your
• 26:47
  thoughts
• 26:47
  on
• 26:47
  every
• 26:47
  year
• 26:48
  when
• 26:48
  we
• 26:48
  interview
• 26:48
  you,
• 26:49
  Kim.
• 26:49
  And
• 26:50
  it
• 26:50
  honestly,
• 26:50
  I
• 26:50
  think
• 26:51
  it's
• 26:51
  a
• 26:51
  topic
• 26:51
  that's
• 26:51
  still
• 26:52
  front
• 26:52
  and
• 26:52
  center
• 26:52
  in
• 26:52
  the
• 26:52
  minds
• 26:53
  of
• 26:53
  so
• 26:53
  many
• 26:53
  retailers.
• 26:54
  And
• 26:54
  that
• 26:54
  is
• 26:55
  where
• 26:55
  do
• 26:55
  I
• 26:55
  actually
• 26:56
  want
• 26:56
  to
• 26:56
  fulfill
• 26:56
  my
• 26:57
  orders
• 26:57
  from?
• 26:58
  And
• 26:58
  now
• 26:59
  I
• 26:59
  know
• 26:59
  you're
• 26:59
  hosting
• 26:59
  a
• 27:00
  panel
• 27:00
  on
• 27:00
  this
• 27:00
  very
• 27:00
  topic
• 27:01
  at
• 27:01
  RELA
• 27:01
  coming
• 27:02
  up
• 27:02
  soon.
• 27:02
  And
• 27:03
  it's
• 27:03
  been
• 27:03
  one
• 27:03
  of
• 27:04
  my
• 27:04
  favorite
• 27:04
  topics
• 27:04
  for
• 27:05
  years.
• 27:05
  And
• 27:05
  it
• 27:05
  honestly,
• 27:06
  I
• 27:06
  don't
• 27:06
  think
• 27:06
  it's
• 27:06
  going
• 27:06
  away.
• 27:07
  So
• 27:08
  the
• 27:08
  question
• 27:08
  is
• 27:08
  that
• 27:09
  every
• 27:09
  retailer
• 27:09
  is
• 27:09
  asking
• 27:10
  themselves
• 27:10
  is
• 27:10
  do
• 27:10
  I
• 27:11
  fulfill
• 27:11
  online
• 27:11
  orders
• 27:12
  from
• 27:12
  my
• 27:12
  stores
• 27:12
  or
• 27:13
  from
• 27:13
  dedicated
• 27:13
  fulfillment
• 27:14
  centers?
• 27:15
  So
• 27:15
  do
• 27:16
  you
• 27:16
  think
• 27:16
  we're
• 27:16
  going
• 27:16
  to
• 27:16
  see
• 27:17
  fewer
• 27:17
  or
• 27:17
  more
• 27:18
  retailers
• 27:18
  in
• 27:19
  2026
• 27:19
  trying
• 27:20
  to
• 27:20
  fulfill
• 27:20
  orders
• 27:21
  from
• 27:21
  stores?
• 27:23
  I
• 27:23
  think
• 27:23
  more
• 27:25
  the
• 27:25
  trend
• 27:25
  has
• 27:25
  been
• 27:25
  to
• 27:26
  continue
• 27:26
  to
• 27:26
  have
• 27:26
  the
• 27:26
  retail
• 27:27
  store
• 27:27
  act
• 27:27
  as
• 27:28
  a
• 27:28
  fulfillment
• 27:29
  location
• 27:30
  for
• 27:30
  our
• 27:31
  retailers.
• 27:32
  And
• 27:32
  the
• 27:32
  panel
• 27:32
  that
• 27:32
  I'm
• 27:33
  hosting,
• 27:33
  we're
• 27:33
  actually
• 27:33
  going
• 27:33
  to
• 27:34
  kind
• 27:34
  of
• 27:34
  have
• 27:34
  two
• 27:34
  different
• 27:34
  views.
• 27:35
  One
• 27:35
  is
• 27:36
  from
• 27:36
  the
• 27:36
  UK
• 27:37
  and
• 27:37
  it's
• 27:37
  a
• 27:38
  grocer
• 27:38
  that's
• 27:39
  using
• 27:40
  a
• 27:40
  traditional
• 27:40
  micro
• 27:41
  fulfillment
• 27:41
  center
• 27:42
  to
• 27:42
  fill
• 27:42
  the
• 27:43
  orders.
• 27:43
  And
• 27:43
  again,
• 27:43
  I
• 27:44
  mentioned
• 27:44
  earlier,
• 27:45
  the
• 27:45
  market
• 27:46
  in
• 27:46
  the
• 27:46
  UK
• 27:46
  is
• 27:47
  very
• 27:47
  different
• 27:47
  than
• 27:47
  the
• 27:48
  market
• 27:48
  in
• 27:49
  the
• 27:49
  Americas.
• 27:50
  You
• 27:51
  have
• 27:51
  a
• 27:51
  much
• 27:51
  more
• 27:51
  concentrated
• 27:52
  population.
• 27:53
  You
• 27:53
  have
• 27:53
  rules
• 27:53
  that
• 27:54
  are
• 27:55
  set
• 27:55
  for
• 27:55
  people
• 27:55
  when
• 27:56
  they
• 27:56
  can
• 27:56
  get
• 27:56
  orders,
• 27:56
  et
• 27:57
  cetera.
• 27:57
  And
• 27:57
  they're
• 27:57
  all
• 27:57
  used
• 27:58
  to
• 27:58
  that.
• 27:59
  But
• 27:59
  we're
• 28:00
  asking
• 28:00
  their
• 28:00
  perspective
• 28:01
  and
• 28:01
  how
• 28:02
  did
• 28:02
  they
• 28:02
  get
• 28:02
  to
• 28:02
  the
• 28:02
  decision
• 28:02
  to
• 28:03
  Use
• 28:03
  automation.
• 28:04
  What
• 28:04
  were
• 28:04
  the
• 28:04
  parameters
• 28:05
  that
• 28:05
  helped
• 28:05
  guide
• 28:05
  them
• 28:06
  to
• 28:06
  that
• 28:06
  versus
• 28:07
  our.
• 28:07
  Dick's
• 28:08
  Sporting
• 28:08
  Goods
• 28:08
  will
• 28:08
  be
• 28:09
  joining
• 28:09
  us
• 28:09
  on
• 28:09
  the
• 28:09
  panel
• 28:10
  as
• 28:10
  well,
• 28:11
  where
• 28:11
  Dick's
• 28:12
  is
• 28:12
  using
• 28:12
  their
• 28:12
  floor
• 28:12
  inventory
• 28:13
  in
• 28:14
  a
• 28:14
  very
• 28:14
  effective
• 28:14
  way
• 28:15
  to
• 28:15
  fill
• 28:16
  orders
• 28:16
  for
• 28:16
  their
• 28:16
  customers.
• 28:17
  And
• 28:18
  they're
• 28:18
  going
• 28:18
  to
• 28:18
  kind
• 28:18
  of
• 28:18
  present
• 28:19
  their
• 28:19
  pros
• 28:20
  and
• 28:20
  cons.
• 28:20
  And,
• 28:20
  and
• 28:21
  you
• 28:21
  know,
• 28:21
  why
• 28:21
  they
• 28:22
  came
• 28:22
  to
• 28:22
  the
• 28:22
  conclusion
• 28:23
  they
• 28:23
  did,
• 28:23
  how
• 28:23
  they
• 28:23
  made
• 28:23
  the,
• 28:24
  how
• 28:24
  they
• 28:24
  made
• 28:24
  the
• 28:25
  decision,
• 28:25
  which
• 28:25
  I
• 28:25
  think
• 28:26
  is
• 28:26
  really
• 28:26
  important
• 28:26
  to
• 28:26
  people
• 28:26
  because
• 28:27
  you
• 28:27
  got
• 28:27
  to
• 28:27
  look
• 28:27
  at
• 28:27
  a
• 28:27
  lot
• 28:27
  of
• 28:28
  things
• 28:28
  to
• 28:29
  decide
• 28:29
  what
• 28:29
  you
• 28:29
  want
• 28:29
  to
• 28:30
  do,
• 28:30
  and
• 28:31
  that's
• 28:31
  what
• 28:31
  we're
• 28:31
  hoping
• 28:31
  to
• 28:31
  bring
• 28:31
  to
• 28:32
  the
• 28:32
  audience.
• 28:32
  But
• 28:33
  the,
• 28:33
  the.
• 28:34
  Any
• 28:35
  again,
• 28:35
  that
• 28:36
  one
• 28:36
  of
• 28:36
  the
• 28:36
  key
• 28:36
  drivers
• 28:37
  we
• 28:37
  found
• 28:37
  in
• 28:37
  our
• 28:37
  VOC
• 28:38
  was
• 28:38
  speed
• 28:38
  of
• 28:38
  delivery
• 28:39
  for
• 28:39
  making
• 28:40
  sure
• 28:40
  my
• 28:40
  customer's
• 28:41
  happy
• 28:41
  speed
• 28:41
  of
• 28:41
  delivery
• 28:43
  response
• 28:43
  time
• 28:44
  continues
• 28:45
  to
• 28:45
  be
• 28:45
  pushed
• 28:46
  and
• 28:46
  pushed
• 28:46
  and
• 28:46
  pushed.
• 28:47
  Right.
• 28:48
  So
• 28:49
  because
• 28:50
  of
• 28:50
  that,
• 28:50
  that
• 28:50
  getting
• 28:51
  that
• 28:51
  inventory
• 28:52
  in
• 28:52
  a
• 28:52
  forward
• 28:52
  footprint
• 28:55
  is
• 28:55
  continuing
• 28:56
  to
• 28:56
  be
• 28:56
  something
• 28:56
  that
• 28:56
  customers
• 28:57
  are
• 28:57
  looking
• 28:57
  at.
• 28:58
  It
• 28:58
  is
• 28:58
  a
• 28:58
  pain
• 28:59
  to
• 28:59
  do
• 29:00
  that
• 29:00
  though,
• 29:01
  because
• 29:02
  inventory
• 29:03
  in
• 29:03
  a
• 29:03
  store
• 29:04
  is
• 29:04
  so
• 29:04
  hard
• 29:04
  to,
• 29:04
  to
• 29:05
  monitor.
• 29:06
  Right.
• 29:08
  And,
• 29:08
  and
• 29:08
  then,
• 29:09
  and
• 29:10
  I've
• 29:10
  said
• 29:10
  this
• 29:10
  probably
• 29:11
  two
• 29:11
  years
• 29:11
  ago,
• 29:12
  there's
• 29:12
  a
• 29:12
  store
• 29:12
  that
• 29:13
  I
• 29:13
  don't
• 29:13
  go
• 29:13
  to
• 29:13
  anymore,
• 29:15
  I
• 29:15
  used
• 29:15
  to
• 29:15
  go
• 29:15
  to,
• 29:16
  and
• 29:16
  I
• 29:17
  won't
• 29:17
  name
• 29:17
  them,
• 29:18
  but
• 29:19
  it
• 29:19
  used
• 29:19
  to
• 29:19
  be
• 29:20
  so
• 29:20
  contentious
• 29:21
  going
• 29:22
  in
• 29:23
  and
• 29:23
  trying
• 29:23
  to
• 29:23
  shop
• 29:24
  where
• 29:25
  the
• 29:25
  person
• 29:25
  that's
• 29:26
  their
• 29:26
  store
• 29:27
  employee
• 29:27
  shopping
• 29:28
  for
• 29:28
  somebody
• 29:28
  else
• 29:28
  that
• 29:28
  isn't
• 29:29
  in
• 29:29
  that
• 29:29
  building
• 29:29
  gets
• 29:30
  priority
• 29:30
  over
• 29:30
  my
• 29:31
  inventory
• 29:31
  that
• 29:31
  I'm
• 29:31
  trying
• 29:32
  to
• 29:32
  get.
• 29:32
  So
• 29:33
  it's,
• 29:33
  it's
• 29:33
  not
• 29:34
  easy.
• 29:34
  Right.
• 29:34
  You've
• 29:34
  got
• 29:35
  a
• 29:35
  service
• 29:35
  level
• 29:35
  in
• 29:35
  your
• 29:36
  store
• 29:36
  and
• 29:36
  a
• 29:36
  service
• 29:36
  level
• 29:37
  for
• 29:37
  your
• 29:37
  online
• 29:38
  customers.
• 29:39
  Both
• 29:39
  have
• 29:39
  to
• 29:40
  be
• 29:40
  considered,
• 29:41
  you
• 29:41
  know,
• 29:42
  so
• 29:43
  I
• 29:43
  think
• 29:43
  nobody's
• 29:44
  perfect
• 29:45
  yet,
• 29:45
  but
• 29:45
  I
• 29:45
  think
• 29:46
  there's
• 29:46
  a
• 29:46
  lot
• 29:46
  of
• 29:46
  retailers
• 29:47
  that
• 29:47
  are
• 29:47
  doing
• 29:47
  a
• 29:48
  pretty
• 29:48
  good
• 29:48
  job.
• 29:49
  So
• 29:49
  I'm
• 29:49
  curious
• 29:50
  then,
• 29:50
  like,
• 29:50
  so,
• 29:51
  you
• 29:51
  know,
• 29:51
  in
• 29:51
  your
• 29:51
  mind
• 29:52
  as
• 29:52
  an
• 29:52
  expert,
• 29:53
  if
• 29:53
  I'm
• 29:53
  trying
• 29:54
  to
• 29:54
  decide
• 29:54
  where
• 29:55
  to
• 29:55
  invest.
• 29:55
  So
• 29:55
  either,
• 29:56
  you
• 29:56
  know,
• 29:57
  store
• 29:57
  fulfillment,
• 29:58
  micro
• 29:58
  fulfillment,
• 29:59
  or
• 29:59
  upstream
• 30:00
  with
• 30:00
  traditional
• 30:00
  fulfillment
• 30:01
  centers,
• 30:01
  which
• 30:01
  it
• 30:01
  sounds
• 30:01
  like
• 30:02
  that's
• 30:02
  probably
• 30:02
  not
• 30:03
  in
• 30:03
  the
• 30:03
  reality.
• 30:03
  The
• 30:04
  last
• 30:04
  one's
• 30:04
  probably
• 30:04
  not
• 30:04
  in
• 30:05
  the
• 30:05
  reality
• 30:05
  stream,
• 30:06
  at
• 30:06
  least
• 30:06
  in
• 30:06
  the
• 30:06
  short
• 30:07
  term.
• 30:08
  What
• 30:08
  factors
• 30:09
  should
• 30:09
  I
• 30:09
  think
• 30:09
  about
• 30:10
  as
• 30:10
  I
• 30:10
  try
• 30:10
  to
• 30:10
  make
• 30:11
  that
• 30:11
  decision?
• 30:11
  So,
• 30:11
  you
• 30:12
  know,
• 30:12
  traditional
• 30:12
  store
• 30:13
  fulfillment
• 30:13
  versus
• 30:13
  micro
• 30:14
  fulfillment,
• 30:14
  either
• 30:14
  nearby
• 30:15
  or
• 30:15
  in
• 30:15
  the
• 30:15
  store.
• 30:15
  What
• 30:16
  factor
• 30:16
  should
• 30:16
  I
• 30:16
  consider?
• 30:18
  Well,
• 30:18
  I
• 30:18
  think,
• 30:19
  well,
• 30:19
  first
• 30:19
  of
• 30:19
  all,
• 30:20
  again,
• 30:20
  what
• 30:20
  are
• 30:20
  your
• 30:20
  goals
• 30:21
  in
• 30:21
  your
• 30:21
  customer
• 30:21
  service,
• 30:22
  your
• 30:23
  sla.
• 30:23
  Right.
• 30:24
  Service
• 30:24
  level
• 30:24
  agreements
• 30:25
  that
• 30:25
  you
• 30:25
  want
• 30:25
  to
• 30:25
  keep?
• 30:27
  Also,
• 30:27
  how
• 30:27
  easy
• 30:28
  is
• 30:28
  it
• 30:28
  for
• 30:28
  you
• 30:29
  to
• 30:29
  keep
• 30:29
  inventory
• 30:29
  in
• 30:30
  your
• 30:30
  store?
• 30:32
  And
• 30:33
  that
• 30:33
  can
• 30:33
  be
• 30:33
  regionally
• 30:34
  different.
• 30:35
  Like
• 30:35
  if
• 30:35
  you
• 30:35
  think
• 30:35
  about
• 30:36
  a
• 30:36
  city,
• 30:37
  a
• 30:38
  store
• 30:38
  In
• 30:38
  a
• 30:38
  city
• 30:39
  which
• 30:39
  has
• 30:39
  no
• 30:39
  back
• 30:40
  room
• 30:41
  versus
• 30:42
  a
• 30:42
  store
• 30:42
  in
• 30:42
  the
• 30:43
  suburbs,
• 30:43
  you
• 30:43
  know,
• 30:44
  that's
• 30:44
  a
• 30:44
  different
• 30:44
  strategy.
• 30:46
  So,
• 30:46
  and
• 30:46
  some
• 30:47
  of
• 30:47
  our
• 30:47
  large
• 30:47
  big
• 30:48
  box
• 30:48
  stores
• 30:48
  and
• 30:48
  Dick
• 30:48
  Sporting
• 30:49
  goes
• 30:49
  as
• 30:49
  example,
• 30:50
  right.
• 30:50
  They,
• 30:50
  they
• 30:50
  have
• 30:50
  big
• 30:51
  stores,
• 30:51
  they
• 30:51
  have
• 30:52
  room
• 30:52
  to
• 30:52
  store
• 30:52
  inventory.
• 30:53
  We
• 30:54
  have
• 30:54
  a
• 30:54
  customer
• 30:55
  over
• 30:56
  in
• 30:56
  France
• 30:56
  that
• 30:57
  has
• 30:57
  a
• 30:57
  huge
• 30:57
  back
• 30:58
  room
• 30:58
  and
• 30:59
  all.
• 30:59
  We
• 31:00
  use
• 31:00
  that
• 31:00
  for
• 31:01
  order
• 31:02
  fulfillment
• 31:03
  replenishment
• 31:04
  to
• 31:04
  the.
• 31:05
  They
• 31:05
  actually
• 31:05
  use
• 31:05
  automation
• 31:06
  to
• 31:06
  replenish
• 31:07
  product
• 31:08
  to
• 31:08
  the
• 31:08
  store
• 31:09
  floor
• 31:09
  every
• 31:09
  morning,
• 31:11
  which
• 31:11
  is
• 31:11
  kind
• 31:12
  of
• 31:12
  cool.
• 31:12
  So
• 31:13
  it
• 31:13
  kind
• 31:13
  of
• 31:13
  depends
• 31:14
  on
• 31:14
  the
• 31:14
  size
• 31:14
  of
• 31:14
  your
• 31:14
  stores,
• 31:15
  where
• 31:15
  you're
• 31:15
  located,
• 31:16
  how
• 31:16
  much
• 31:16
  room
• 31:16
  you've
• 31:17
  got,
• 31:18
  and
• 31:18
  are
• 31:19
  you,
• 31:19
  are
• 31:20
  you
• 31:20
  willing
• 31:20
  to.
• 31:21
  Because
• 31:21
  the
• 31:21
  most
• 31:22
  expensive
• 31:22
  place
• 31:22
  to
• 31:22
  hold
• 31:23
  your
• 31:23
  product
• 31:23
  is
• 31:23
  in
• 31:23
  your
• 31:24
  store.
• 31:24
  Right.
• 31:24
  So
• 31:26
  the
• 31:26
  factors
• 31:26
  of
• 31:27
  the
• 31:27
  store,
• 31:27
  the
• 31:27
  carrying
• 31:28
  costs
• 31:28
  of
• 31:28
  inventory
• 31:28
  also
• 31:29
  have
• 31:29
  to
• 31:29
  be
• 31:29
  looked
• 31:30
  at.
• 31:30
  But
• 31:31
  yeah,
• 31:31
  so
• 31:32
  there's
• 31:32
  a
• 31:32
  lot
• 31:32
  of
• 31:32
  things
• 31:32
  to
• 31:32
  think
• 31:33
  about.
• 31:33
  I,
• 31:33
  I
• 31:33
  don't.
• 31:34
  I
• 31:34
  think
• 31:35
  in
• 31:36
  addition
• 31:36
  to
• 31:36
  seeing
• 31:36
  the
• 31:37
  store
• 31:38
  fulfillment
• 31:38
  become
• 31:39
  more
• 31:39
  important
• 31:40
  again,
• 31:40
  I
• 31:40
  think
• 31:40
  I
• 31:41
  mentioned
• 31:41
  this
• 31:41
  last
• 31:41
  year,
• 31:42
  we're
• 31:42
  continuing
• 31:43
  to
• 31:43
  see
• 31:43
  a
• 31:43
  growth
• 31:44
  in
• 31:45
  smaller
• 31:45
  distribution
• 31:46
  centers,
• 31:46
  not
• 31:46
  these
• 31:47
  huge
• 31:48
  monolithic
• 31:50
  500,000
• 31:51
  square
• 31:52
  feet
• 31:52
  buildings.
• 31:52
  Right.
• 31:53
  We're
• 31:53
  seeing
• 31:53
  them
• 31:54
  shrink,
• 31:54
  but
• 31:55
  get
• 31:55
  into
• 31:55
  closer
• 31:56
  to
• 31:56
  an
• 31:56
  urban
• 31:56
  area
• 31:58
  to
• 31:58
  service
• 31:58
  also
• 31:59
  as
• 31:59
  an
• 31:59
  E
• 31:59
  Commerce
• 32:00
  fulfillment,
• 32:00
  just
• 32:01
  completely
• 32:01
  fulfillment,
• 32:02
  no
• 32:02
  story
• 32:02
  plan,
• 32:04
  just
• 32:04
  fulfillment
• 32:04
  centers.
• 32:05
  And
• 32:06
  those
• 32:06
  continue
• 32:06
  to
• 32:07
  grow.
• 32:07
  So
• 32:07
  I
• 32:08
  think,
• 32:08
  I
• 32:08
  think
• 32:08
  it's,
• 32:09
  you
• 32:09
  know,
• 32:09
  you've
• 32:09
  got
• 32:10
  to
• 32:10
  look
• 32:10
  at
• 32:11
  where
• 32:12
  you're
• 32:12
  located,
• 32:12
  who
• 32:13
  you're
• 32:13
  trying
• 32:13
  to
• 32:13
  serve,
• 32:13
  what
• 32:14
  kind
• 32:14
  of
• 32:14
  built,
• 32:14
  you
• 32:14
  know,
• 32:15
  stores
• 32:15
  you've
• 32:15
  got
• 32:17
  and
• 32:18
  all,
• 32:18
  and
• 32:18
  your
• 32:18
  transportation
• 32:19
  costs.
• 32:19
  All
• 32:19
  of
• 32:19
  that
• 32:20
  has
• 32:20
  to
• 32:20
  go
• 32:20
  into
• 32:20
  consideration.
• 32:22
  Yeah,
• 32:22
  yeah.
• 32:23
  It's
• 32:23
  really
• 32:23
  just
• 32:23
  math.
• 32:23
  At
• 32:23
  the
• 32:24
  end
• 32:24
  of
• 32:24
  the
• 32:24
  day,
• 32:24
  you.
• 32:24
  Look,
• 32:24
  you
• 32:24
  got
• 32:24
  to
• 32:25
  look
• 32:25
  at
• 32:25
  the
• 32:25
  math.
• 32:25
  It's
• 32:26
  just
• 32:26
  money,
• 32:27
  right?
• 32:27
  It's
• 32:27
  just
• 32:27
  math.
• 32:28
  Yeah.
• 32:28
  I
• 32:28
  mean,
• 32:28
  you
• 32:28
  got
• 32:28
  to
• 32:29
  look
• 32:29
  at
• 32:29
  the
• 32:29
  volumes
• 32:29
  you
• 32:29
  expect
• 32:30
  and,
• 32:31
  and
• 32:31
  what
• 32:31
  expectations
• 32:32
  you
• 32:32
  think
• 32:32
  your
• 32:32
  customers
• 32:33
  are
• 32:33
  going
• 32:33
  to
• 32:33
  have,
• 32:33
  and
• 32:33
  then
• 32:33
  you
• 32:33
  got
• 32:33
  to
• 32:34
  make
• 32:34
  some
• 32:34
  hard
• 32:34
  choices
• 32:34
  about
• 32:35
  what
• 32:35
  you
• 32:35
  want
• 32:36
  to
• 32:36
  do
• 32:36
  and
• 32:36
  don't
• 32:36
  want
• 32:37
  to
• 32:37
  do
• 32:37
  to
• 32:37
  meet
• 32:37
  those
• 32:37
  SLAs.
• 32:38
  I
• 32:38
  think
• 32:38
  it's,
• 32:39
  I
• 32:39
  think
• 32:39
  it's.
• 32:39
  Well
• 32:39
  said.
• 32:39
  All
• 32:40
  right,
• 32:40
  Kim,
• 32:40
  let's
• 32:40
  bring
• 32:40
  this
• 32:41
  interview
• 32:41
  home.
• 32:42
  We're
• 32:42
  going
• 32:42
  to
• 32:42
  ask
• 32:42
  you
• 32:43
  for
• 32:43
  some
• 32:43
  practical
• 32:43
  advice.
• 32:44
  And
• 32:44
  of
• 32:44
  course,
• 32:45
  because
• 32:46
  it's
• 32:46
  the
• 32:46
  name
• 32:46
  of
• 32:46
  the
• 32:46
  show,
• 32:46
  we're
• 32:47
  going
• 32:47
  to
• 32:47
  ask
• 32:47
  you
• 32:47
  for
• 32:47
  a
• 32:47
  confession
• 32:48
  too.
• 32:48
  So
• 32:50
  first
• 32:50
  of
• 32:50
  all,
• 32:51
  what's
• 32:51
  one
• 32:51
  step
• 32:52
  you
• 32:52
  would
• 32:52
  advise
• 32:53
  for
• 32:53
  someone
• 32:54
  who
• 32:54
  wants
• 32:54
  to
• 32:55
  move
• 32:55
  from.
• 32:55
  Like,
• 32:55
  if
• 32:56
  I
• 32:56
  met,
• 32:56
  I
• 32:56
  imagine
• 32:57
  a
• 32:57
  lot
• 32:57
  of
• 32:57
  retailers
• 32:57
  listening,
• 32:58
  like,
• 32:58
  God,
• 32:58
  I
• 32:58
  feel
• 32:58
  stuck
• 32:59
  in
• 32:59
  survival
• 32:59
  mode
• 33:00
  right
• 33:00
  now,
• 33:01
  but
• 33:01
  I
• 33:01
  want
• 33:01
  to
• 33:02
  move
• 33:02
  to
• 33:02
  strategic
• 33:02
  improvement.
• 33:03
  Like,
• 33:03
  what's
• 33:04
  one
• 33:04
  piece
• 33:04
  of
• 33:04
  advice
• 33:05
  you
• 33:05
  would
• 33:05
  have
• 33:05
  for
• 33:05
  them.
• 33:06
  Yeah.
• 33:07
  I
• 33:07
  think
• 33:07
  you
• 33:07
  need
• 33:07
  to
• 33:08
  think
• 33:08
  about
• 33:09
  finding
• 33:10
  a
• 33:10
  partner
• 33:10
  that
• 33:11
  can
• 33:11
  walk
• 33:11
  you
• 33:11
  through
• 33:12
  the
• 33:12
  different
• 33:12
  steps.
• 33:13
  So,
• 33:13
  again,
• 33:14
  we,
• 33:15
  for
• 33:15
  instance,
• 33:17
  not
• 33:19
  all.
• 33:20
  And
• 33:20
  it's
• 33:21
  like,
• 33:21
  you
• 33:21
  can't
• 33:22
  put
• 33:22
  a
• 33:22
  square
• 33:22
  peg
• 33:22
  in
• 33:23
  a
• 33:23
  round
• 33:23
  hole.
• 33:24
  Right.
• 33:24
  Don't
• 33:25
  try
• 33:25
  to
• 33:25
  do
• 33:25
  that.
• 33:27
  Understand
• 33:27
  that
• 33:27
  you're
• 33:27
  a
• 33:28
  round
• 33:28
  hole
• 33:28
  and
• 33:29
  that
• 33:29
  you
• 33:29
  need
• 33:29
  something
• 33:30
  that
• 33:30
  will
• 33:30
  work
• 33:30
  where
• 33:31
  I
• 33:31
  am
• 33:31
  today
• 33:31
  and
• 33:31
  where
• 33:31
  I'm
• 33:32
  going
• 33:32
  to
• 33:32
  go
• 33:32
  tomorrow.
• 33:33
  So
• 33:33
  either
• 33:34
  partnering
• 33:34
  with
• 33:34
  a
• 33:35
  company
• 33:35
  like
• 33:36
  Domatic
• 33:36
  that
• 33:36
  can
• 33:37
  supply.
• 33:37
  We
• 33:37
  have
• 33:38
  the
• 33:38
  engineering
• 33:38
  resources
• 33:39
  and
• 33:39
  we
• 33:39
  have
• 33:39
  the
• 33:39
  breadth
• 33:40
  of
• 33:40
  offerings
• 33:40
  through
• 33:41
  products
• 33:41
  that
• 33:41
  we
• 33:42
  either
• 33:42
  make
• 33:42
  or
• 33:43
  we
• 33:43
  partner
• 33:43
  with
• 33:44
  to
• 33:45
  help
• 33:45
  you
• 33:45
  figure
• 33:45
  that
• 33:45
  out.
• 33:46
  And
• 33:46
  we
• 33:46
  can
• 33:46
  look
• 33:46
  at,
• 33:47
  what
• 33:47
  do
• 33:47
  you
• 33:47
  want
• 33:48
  to
• 33:48
  do
• 33:48
  today,
• 33:49
  the
• 33:49
  next
• 33:49
  three
• 33:49
  years?
• 33:49
  What
• 33:50
  do
• 33:50
  you
• 33:50
  want
• 33:50
  to
• 33:50
  do
• 33:50
  five
• 33:50
  years
• 33:51
  from
• 33:51
  now?
• 33:51
  How
• 33:52
  do
• 33:52
  we
• 33:52
  start
• 33:52
  to
• 33:52
  plan
• 33:52
  for
• 33:53
  that?
• 33:53
  There
• 33:53
  are
• 33:54
  also
• 33:54
  consultants
• 33:55
  in
• 33:56
  the
• 33:56
  industry
• 33:57
  that
• 33:57
  do
• 33:57
  that
• 33:57
  as
• 33:57
  well.
• 34:00
  But
• 34:00
  you
• 34:00
  have
• 34:00
  to
• 34:00
  kind
• 34:00
  of
• 34:01
  know
• 34:01
  what
• 34:01
  you're
• 34:01
  starting
• 34:02
  with
• 34:02
  and
• 34:02
  where
• 34:03
  you
• 34:03
  want
• 34:03
  to
• 34:03
  go
• 34:04
  get
• 34:04
  to
• 34:04
  be,
• 34:06
  you
• 34:06
  know,
• 34:07
  what
• 34:07
  is
• 34:07
  the
• 34:07
  number
• 34:08
  one
• 34:08
  thing
• 34:08
  you're
• 34:08
  trying
• 34:08
  to
• 34:09
  solve
• 34:09
  for
• 34:09
  right
• 34:09
  now?
• 34:10
  In
• 34:10
  our
• 34:10
  voice
• 34:10
  of
• 34:10
  customer
• 34:11
  service?
• 34:12
  Our
• 34:12
  voice
• 34:12
  of
• 34:13
  customer,
• 34:14
  the
• 34:14
  number
• 34:14
  one
• 34:14
  thing
• 34:14
  that
• 34:15
  they're
• 34:15
  trying
• 34:15
  to
• 34:15
  solve
• 34:15
  for
• 34:16
  is
• 34:16
  reducing
• 34:16
  the
• 34:17
  cost
• 34:17
  per
• 34:17
  unit
• 34:18
  handled
• 34:19
  in
• 34:19
  their
• 34:19
  buildings.
• 34:20
  Second
• 34:20
  number.
• 34:21
  The
• 34:21
  number
• 34:21
  two
• 34:22
  thing,
• 34:23
  meeting
• 34:23
  customer
• 34:24
  expectations
• 34:25
  and
• 34:25
  speed
• 34:26
  of
• 34:26
  delivery,
• 34:26
  accuracy.
• 34:28
  So
• 34:28
  they've
• 34:28
  got
• 34:28
  two
• 34:29
  things
• 34:29
  that
• 34:30
  are.
• 34:30
  Almost
• 34:30
  contradictory
• 34:31
  to
• 34:31
  each
• 34:31
  other,
• 34:32
  diametrically
• 34:32
  opposed,
• 34:33
  right?
• 34:33
  Yes.
• 34:34
  Right.
• 34:35
  So,
• 34:36
  like,
• 34:36
  if
• 34:36
  I
• 34:37
  had
• 34:37
  a
• 34:37
  magic
• 34:37
  bullet,
• 34:38
  I
• 34:38
  would
• 34:38
  tell
• 34:38
  you
• 34:38
  what
• 34:39
  it
• 34:39
  was,
• 34:39
  but
• 34:40
  it's.
• 34:41
  It's.
• 34:41
  It's
• 34:41
  a
• 34:41
  complex
• 34:42
  problem,
• 34:43
  and
• 34:43
  you
• 34:43
  need
• 34:43
  to
• 34:45
  partner
• 34:46
  with
• 34:46
  company
• 34:46
  that
• 34:46
  can
• 34:46
  help
• 34:47
  you
• 34:47
  with
• 34:47
  it.
• 34:47
  Understand
• 34:48
  your
• 34:48
  baseline.
• 34:49
  I
• 34:49
  say
• 34:50
  this
• 34:50
  every
• 34:50
  time
• 34:50
  we're
• 34:50
  on
• 34:50
  the.
• 34:51
  On
• 34:51
  the
• 34:51
  phone.
• 34:52
  Your
• 34:52
  baseline
• 34:52
  goals
• 34:53
  and
• 34:53
  your
• 34:53
  baseline
• 34:53
  data.
• 34:54
  Right.
• 34:55
  What
• 34:55
  are
• 34:55
  you
• 34:55
  doing
• 34:56
  today?
• 34:56
  What
• 34:56
  do
• 34:57
  you
• 34:57
  want
• 34:57
  to
• 34:57
  be
• 34:57
  able
• 34:57
  to
• 34:57
  do
• 34:57
  tomorrow
• 34:58
  and
• 34:58
  next
• 34:59
  year,
• 35:00
  and
• 35:01
  then,
• 35:01
  you
• 35:01
  know,
• 35:02
  and
• 35:02
  then
• 35:02
  work
• 35:02
  with
• 35:02
  somebody
• 35:02
  that
• 35:03
  can
• 35:03
  help
• 35:03
  you
• 35:03
  down
• 35:03
  that
• 35:03
  path.
• 35:04
  All
• 35:05
  right,
• 35:05
  Kim,
• 35:05
  it's
• 35:05
  confession
• 35:06
  time.
• 35:06
  I
• 35:06
  actually
• 35:06
  want
• 35:06
  to
• 35:07
  push
• 35:07
  you
• 35:07
  on
• 35:07
  that
• 35:07
  answer
• 35:08
  a
• 35:08
  little
• 35:08
  bit,
• 35:08
  but
• 35:08
  I'm
• 35:08
  going
• 35:08
  to
• 35:08
  hold
• 35:09
  it
• 35:09
  for
• 35:09
  the
• 35:09
  confession
• 35:09
  because
• 35:10
  I
• 35:10
  might
• 35:10
  still
• 35:10
  push
• 35:10
  it
• 35:10
  depending
• 35:11
  on
• 35:11
  what
• 35:11
  you.
• 35:11
  What
• 35:11
  you
• 35:12
  say
• 35:12
  here.
• 35:12
  So.
• 35:13
  So
• 35:13
  the
• 35:13
  confession
• 35:14
  question,
• 35:14
  the
• 35:14
  uncomfortable
• 35:15
  truth
• 35:15
  here,
• 35:15
  Kim,
• 35:16
  my
• 35:17
  question
• 35:17
  is,
• 35:18
  what
• 35:18
  is
• 35:19
  the
• 35:19
  uncomfortable
• 35:20
  truth
• 35:20
  about
• 35:21
  warehouse
• 35:21
  operations
• 35:22
  that
• 35:22
  most
• 35:22
  retailers
• 35:23
  don't
• 35:24
  want
• 35:24
  to
• 35:24
  admit
• 35:25
  or
• 35:25
  to
• 35:25
  hear?
• 35:26
  I
• 35:27
  think
• 35:27
  things
• 35:27
  are
• 35:28
  still.
• 35:29
  I
• 35:29
  want
• 35:29
  to
• 35:29
  say
• 35:30
  clunky.
• 35:31
  We're
• 35:31
  still.
• 35:31
  There's
• 35:32
  still
• 35:32
  so
• 35:32
  much
• 35:33
  room
• 35:33
  for
• 35:34
  efficiency
• 35:34
  gains
• 35:37
  that.
• 35:38
  And
• 35:39
  again,
• 35:39
  I
• 35:39
  can't
• 35:40
  blame
• 35:41
  the
• 35:41
  retailers
• 35:41
  for
• 35:42
  this.
• 35:42
  Right?
• 35:42
  It's.
• 35:42
  There's
• 35:43
  again,
• 35:43
  the
• 35:44
  constant
• 35:44
  change.
• 35:44
  Everything
• 35:45
  is
• 35:45
  changing
• 35:45
  all
• 35:46
  the
• 35:46
  time.
• 35:47
  So.
• 35:48
  But
• 35:48
  it's
• 35:48
  Clunky.
• 35:49
  It's,
• 35:49
  it's
• 35:49
  clunky.
• 35:50
  Like,
• 35:50
  where
• 35:50
  should
• 35:50
  I
• 35:50
  have
• 35:51
  pe?
• 35:51
  What
• 35:51
  should
• 35:52
  I
• 35:52
  be
• 35:52
  doing?
• 35:52
  Where
• 35:52
  should
• 35:52
  I
• 35:53
  have
• 35:53
  people?
• 35:53
  What
• 35:54
  should
• 35:54
  I
• 35:54
  be
• 35:54
  investing
• 35:55
  in?
• 35:55
  What
• 35:55
  do
• 35:55
  I,
• 35:55
  what
• 35:56
  does
• 35:56
  my
• 35:56
  store
• 35:56
  footprint
• 35:57
  like
• 35:57
  look
• 35:57
  like
• 35:57
  versus
• 35:58
  my
• 35:58
  distribution
• 35:58
  center?
• 36:00
  It's,
• 36:00
  it's
• 36:00
  still
• 36:02
  like
• 36:02
  a,
• 36:02
  not
• 36:02
  a
• 36:03
  well
• 36:03
  oiled
• 36:03
  machine.
• 36:04
  I'm
• 36:04
  picturing
• 36:04
  like
• 36:04
  an
• 36:04
  old
• 36:05
  robot.
• 36:06
  I'm
• 36:06
  thinking
• 36:07
  of
• 36:07
  the
• 36:07
  robot
• 36:08
  from
• 36:08
  Lost
• 36:08
  in
• 36:09
  Space.
• 36:10
  Oh,
• 36:11
  my
• 36:11
  God,
• 36:11
  that
• 36:11
  one.
• 36:11
  Yeah,
• 36:12
  I
• 36:12
  remember
• 36:12
  that
• 36:12
  one.
• 36:13
  Yeah.
• 36:13
  Wait,
• 36:14
  Danger.
• 36:15
  Danger,
• 36:15
  Will
• 36:15
  Robinson.
• 36:16
  Danger,
• 36:16
  Will
• 36:16
  Robinson.
• 36:17
  Yeah,
• 36:17
  right.
• 36:17
  And
• 36:17
  then
• 36:17
  he
• 36:18
  falls
• 36:18
  over.
• 36:19
  Yeah.
• 36:20
  But
• 36:20
  you.
• 36:21
  So
• 36:21
  you're
• 36:21
  saying
• 36:21
  that's,
• 36:21
  that's
• 36:22
  kind
• 36:22
  of
• 36:22
  your,
• 36:22
  your,
• 36:23
  your
• 36:23
  mental
• 36:23
  model
• 36:23
  for,
• 36:24
  you
• 36:24
  know,
• 36:24
  just
• 36:24
  how
• 36:24
  much
• 36:24
  inefficiency
• 36:25
  there
• 36:25
  still
• 36:25
  is
• 36:26
  in
• 36:26
  this
• 36:26
  building.
• 36:26
  Well,
• 36:26
  that's
• 36:27
  why
• 36:27
  I
• 36:27
  held
• 36:27
  my,
• 36:27
  that's
• 36:28
  why
• 36:28
  I
• 36:28
  held.
• 36:28
  When
• 36:28
  I
• 36:28
  said
• 36:28
  I
• 36:28
  was
• 36:28
  going
• 36:28
  to
• 36:29
  press
• 36:29
  you,
• 36:29
  because
• 36:29
  what
• 36:30
  I
• 36:30
  thought
• 36:30
  you're
• 36:30
  going
• 36:30
  to
• 36:31
  say
• 36:31
  to
• 36:31
  the
• 36:31
  last
• 36:31
  question,
• 36:33
  and
• 36:33
  I
• 36:33
  think
• 36:33
  it
• 36:33
  plays
• 36:33
  into
• 36:34
  this
• 36:34
  too,
• 36:34
  is
• 36:35
  there
• 36:35
  probably
• 36:36
  is
• 36:36
  a
• 36:36
  big
• 36:37
  opportunity
• 36:37
  to
• 36:38
  look
• 36:38
  at
• 36:38
  the
• 36:38
  deployment
• 36:39
  of
• 36:39
  AI
• 36:40
  strategically
• 36:40
  inside
• 36:41
  of
• 36:41
  your
• 36:41
  building
• 36:42
  sooner
• 36:42
  rather
• 36:43
  than
• 36:43
  later.
• 36:44
  Because
• 36:44
  like
• 36:44
  Angie
• 36:45
  Brown,
• 36:45
  the
• 36:45
  CIO
• 36:45
  of
• 36:46
  Home
• 36:46
  Depot
• 36:47
  told
• 36:47
  us
• 36:48
  and
• 36:48
  sticking
• 36:49
  with
• 36:49
  me,
• 36:49
  and
• 36:49
  I'm
• 36:49
  repeating
• 36:49
  it
• 36:50
  every
• 36:50
  time
• 36:50
  I
• 36:50
  get
• 36:50
  the
• 36:51
  chance.
• 36:51
  She
• 36:52
  told
• 36:52
  us,
• 36:52
  Kim,
• 36:52
  she
• 36:52
  said
• 36:53
  AI
• 36:54
  enables
• 36:54
  us
• 36:54
  to
• 36:55
  do
• 36:55
  the
• 36:55
  things
• 36:55
  that
• 36:55
  were
• 36:56
  previously
• 36:56
  impossible
• 36:57
  or
• 36:57
  just
• 36:57
  took
• 36:57
  too
• 36:58
  many
• 36:58
  people
• 36:58
  to
• 36:58
  get
• 36:58
  them
• 36:59
  done.
• 37:00
  And
• 37:00
  I
• 37:00
  think
• 37:00
  that
• 37:00
  is
• 37:01
  entirely
• 37:01
  applicable
• 37:02
  in
• 37:02
  a
• 37:02
  warehouse
• 37:03
  operation,
• 37:03
  especially
• 37:04
  given
• 37:04
  that
• 37:04
  you
• 37:04
  said
• 37:04
  it's
• 37:05
  clunky
• 37:05
  and
• 37:06
  it
• 37:06
  is
• 37:06
  everything,
• 37:07
  you
• 37:07
  know,
• 37:07
  and,
• 37:07
  and
• 37:08
  that's
• 37:08
  no
• 37:08
  one's
• 37:08
  fault.
• 37:09
  It's
• 37:09
  just
• 37:09
  that's
• 37:10
  how
• 37:10
  we
• 37:10
  had
• 37:10
  to
• 37:10
  get
• 37:10
  the
• 37:11
  job
• 37:11
  done.
• 37:12
  And
• 37:12
  now
• 37:12
  the
• 37:12
  tools
• 37:13
  and
• 37:13
  the
• 37:13
  resources
• 37:13
  are
• 37:14
  out
• 37:14
  there
• 37:14
  to
• 37:15
  potentially
• 37:15
  streamline
• 37:16
  that
• 37:16
  and
• 37:17
  to
• 37:17
  show
• 37:17
  us
• 37:17
  new
• 37:17
  ways
• 37:18
  of,
• 37:19
  of
• 37:19
  doing
• 37:19
  business.
• 37:20
  So
• 37:20
  I'm
• 37:20
  curious,
• 37:20
  my
• 37:21
  last
• 37:21
  question
• 37:21
  for.
• 37:21
  You
• 37:22
  is
• 37:22
  you
• 37:23
  sure
• 37:23
  it's
• 37:23
  the
• 37:23
  last?
• 37:24
  Yeah.
• 37:24
  No,
• 37:24
  this
• 37:25
  is
• 37:25
  the
• 37:25
  last.
• 37:25
  And
• 37:25
  it's.
• 37:25
  No
• 37:26
  more
• 37:26
  confessions.
• 37:27
  No,
• 37:27
  this
• 37:27
  is.
• 37:28
  No,
• 37:28
  this
• 37:28
  is
• 37:28
  the
• 37:28
  last
• 37:29
  one.
• 37:29
  This
• 37:29
  is
• 37:29
  the
• 37:29
  last
• 37:29
  one.
• 37:30
  Wrap
• 37:30
  it
• 37:30
  all
• 37:30
  up
• 37:30
  for
• 37:31
  us.
• 37:31
  If
• 37:31
  people
• 37:31
  listening
• 37:32
  could
• 37:32
  remember
• 37:32
  one
• 37:33
  thing
• 37:33
  to
• 37:34
  act
• 37:34
  on,
• 37:35
  what
• 37:35
  would
• 37:35
  it
• 37:35
  be?
• 37:36
  Look
• 37:36
  for
• 37:37
  ways
• 37:37
  to
• 37:38
  improve
• 37:38
  that
• 37:39
  clunkiness
• 37:40
  right
• 37:40
  where.
• 37:40
  And
• 37:40
  it's,
• 37:41
  it
• 37:41
  can
• 37:41
  exist
• 37:42
  in
• 37:42
  the,
• 37:42
  in
• 37:42
  the
• 37:42
  warehouse,
• 37:43
  the
• 37:43
  store,
• 37:44
  everywhere.
• 37:45
  But
• 37:45
  where
• 37:45
  are
• 37:46
  the
• 37:46
  biggest
• 37:47
  places
• 37:48
  that
• 37:48
  are
• 37:48
  impacting
• 37:49
  your
• 37:49
  bottom
• 37:49
  line
• 37:49
  and
• 37:50
  your
• 37:50
  service
• 37:50
  level
• 37:50
  to
• 37:51
  your
• 37:51
  customer?
• 37:52
  And
• 37:52
  then
• 37:52
  find
• 37:54
  companies
• 37:54
  that
• 37:54
  can
• 37:54
  help
• 37:55
  you
• 37:55
  work
• 37:55
  through
• 37:55
  that.
• 37:57
  That
• 37:57
  would
• 37:57
  be
• 37:57
  my,
• 37:57
  my
• 37:58
  biggest
• 37:58
  piece
• 37:58
  of
• 37:58
  advice.
• 37:59
  That,
• 37:59
  I
• 38:00
  mean,
• 38:00
  that's,
• 38:00
  that's
• 38:00
  my
• 38:00
  takeaway
• 38:01
  from
• 38:01
  listening
• 38:01
  to
• 38:01
  this.
• 38:01
  If
• 38:01
  I
• 38:01
  was
• 38:01
  still,
• 38:02
  still
• 38:02
  in
• 38:02
  the
• 38:02
  retail
• 38:03
  business
• 38:03
  and
• 38:03
  still
• 38:03
  an
• 38:04
  executive
• 38:04
  at
• 38:04
  A
• 38:04
  high
• 38:04
  level
• 38:05
  I
• 38:05
  would
• 38:05
  be.
• 38:05
  Yeah.
• 38:05
  Looking
• 38:06
  at
• 38:06
  my
• 38:06
  P
• 38:06
  and
• 38:06
  P
• 38:07
  L
• 38:07
  and
• 38:07
  looking
• 38:07
  at
• 38:08
  my
• 38:08
  expenses
• 38:08
  and
• 38:08
  being
• 38:09
  like,
• 38:09
  where
• 38:10
  can
• 38:10
  AI
• 38:10
  make
• 38:11
  the
• 38:11
  biggest
• 38:11
  hit
• 38:12
  immediately?
• 38:13
  And
• 38:13
  let's
• 38:13
  go
• 38:13
  after
• 38:14
  that
• 38:14
  and
• 38:14
  see
• 38:14
  what
• 38:15
  we
• 38:15
  can
• 38:15
  do.
• 38:15
  And
• 38:16
  God
• 38:16
  knows
• 38:16
  we
• 38:16
  actually
• 38:16
  might
• 38:17
  surprise
• 38:17
  ourselves.
• 38:18
  So.
• 38:18
  All
• 38:18
  right.
• 38:19
  So
• 38:19
  you
• 38:19
  said
• 38:19
  you're
• 38:19
  going
• 38:19
  to
• 38:20
  be
• 38:20
  hosting
• 38:20
  a
• 38:20
  panel
• 38:20
  at
• 38:20
  rila,
• 38:21
  so
• 38:21
  if
• 38:22
  you're
• 38:22
  out
• 38:22
  there
• 38:22
  for.
• 38:22
  If
• 38:22
  you're
• 38:23
  out
• 38:23
  there
• 38:23
  listeners,
• 38:23
  go
• 38:23
  and
• 38:23
  check
• 38:24
  Kim
• 38:24
  out.
• 38:24
  She's
• 38:24
  gonna
• 38:24
  be
• 38:24
  talking
• 38:25
  about
• 38:25
  this
• 38:25
  with
• 38:25
  some
• 38:25
  really
• 38:26
  great
• 38:26
  folks
• 38:26
  and
• 38:26
  sounds
• 38:27
  like
• 38:27
  a
• 38:27
  really
• 38:27
  exciting
• 38:28
  topic.
• 38:28
  But,
• 38:28
  Kim,
• 38:29
  if
• 38:29
  people
• 38:29
  want
• 38:29
  to
• 38:29
  get
• 38:29
  in
• 38:30
  touch
• 38:30
  with
• 38:30
  you,
• 38:30
  pick
• 38:30
  your
• 38:31
  brain,
• 38:31
  you
• 38:31
  know,
• 38:32
  attend
• 38:32
  that
• 38:32
  session
• 38:33
  too.
• 38:33
  How
• 38:33
  can
• 38:33
  they.
• 38:34
  How
• 38:34
  can
• 38:34
  they
• 38:34
  find
• 38:35
  you
• 38:35
  or
• 38:35
  find
• 38:35
  out
• 38:35
  more.
• 38:37
  I'm
• 38:37
  on
• 38:37
  LinkedIn,
• 38:38
  so
• 38:38
  Kim
• 38:38
  Beaudry
• 38:40
  on
• 38:40
  LinkedIn
• 38:41
  is
• 38:41
  a
• 38:41
  really
• 38:41
  good
• 38:41
  way
• 38:41
  to.
• 38:41
  I
• 38:42
  talk
• 38:42
  to
• 38:42
  people
• 38:42
  a
• 38:43
  lot
• 38:43
  over
• 38:43
  LinkedIn,
• 38:45
  of
• 38:45
  course,
• 38:45
  through
• 38:46
  my
• 38:46
  email.
• 38:46
  And
• 38:47
  again,
• 38:47
  if
• 38:48
  you
• 38:48
  want
• 38:48
  me
• 38:48
  to
• 38:48
  spell
• 38:48
  it
• 38:48
  out,
• 38:48
  I
• 38:49
  will.
• 38:50
  It's
• 38:50
  long,
• 38:51
  Kimberly,
• 38:52
  but
• 38:52
  it's
• 38:53
  K
• 38:53
  I
• 38:53
  M.
• 38:54
  Remember
• 38:54
  this.
• 38:54
  Every
• 38:54
  year
• 38:55
  I
• 38:55
  have
• 38:55
  to
• 38:55
  do
• 38:55
  this,
• 38:55
  too.
• 38:56
  Yes.
• 38:56
  K,
• 38:56
  I
• 38:57
  M
• 38:57
  B
• 38:58
  E
• 38:58
  R
• 38:59
  L
• 38:59
  e
• 39:00
  y.
• 39:01
  It's
• 39:02
  special.Beaudry
• 39:03
  b
• 39:04
  a
• 39:05
  u
• 39:06
  d
• 39:07
  r
• 39:08
  y@matic.com
• 39:10
  anytime,
• 39:11
  any.
• 39:11
  I
• 39:11
  love
• 39:11
  talking
• 39:11
  to
• 39:12
  people.
• 39:12
  I
• 39:12
  love
• 39:12
  to
• 39:12
  hear
• 39:12
  from
• 39:13
  our
• 39:13
  customers.
• 39:14
  It's
• 39:14
  one
• 39:14
  of
• 39:14
  the
• 39:15
  really
• 39:15
  big
• 39:16
  highlights
• 39:16
  of
• 39:16
  what
• 39:16
  I
• 39:17
  do
• 39:17
  and
• 39:18
  the
• 39:18
  team
• 39:18
  that
• 39:18
  works
• 39:18
  with
• 39:19
  me
• 39:19
  does.
• 39:19
  We
• 39:19
  just,
• 39:20
  we
• 39:21
  learn
• 39:21
  every
• 39:21
  time
• 39:21
  we
• 39:21
  talk
• 39:21
  to
• 39:22
  somebody.
• 39:22
  So
• 39:23
  really
• 39:23
  invite
• 39:24
  anybody
• 39:24
  that's
• 39:24
  interested,
• 39:25
  reach
• 39:25
  out.
• 39:25
  Love
• 39:26
  to
• 39:26
  speak
• 39:26
  to
• 39:26
  you.
• 39:26
  Awesome.
• 39:27
  Well,
• 39:27
  Kim
• 39:27
  Bowdry
• 39:28
  of
• 39:28
  Domatic,
• 39:28
  thank
• 39:29
  you
• 39:29
  so
• 39:29
  much
• 39:30
  for
• 39:30
  joining
• 39:30
  us
• 39:30
  on
• 39:31
  Confessions
• 39:32
  of
• 39:32
  a
• 39:32
  Supply
• 39:32
  Chain
• 39:33
  Executive.
• 39:33
  I
• 39:33
  absolutely
• 39:34
  love
• 39:34
  when
• 39:34
  we
• 39:34
  do
• 39:34
  this
• 39:35
  every
• 39:35
  year
• 39:35
  and
• 39:35
  we've
• 39:35
  done
• 39:36
  this.
• 39:36
  I
• 39:36
  think
• 39:36
  this
• 39:36
  is
• 39:36
  our
• 39:36
  third
• 39:36
  or
• 39:37
  fourth
• 39:37
  year
• 39:37
  in
• 39:37
  a
• 39:37
  row
• 39:37
  doing
• 39:38
  this,
• 39:38
  right,
• 39:38
  Kim?
• 39:38
  I
• 39:38
  think
• 39:39
  it's
• 39:39
  got
• 39:39
  to
• 39:39
  be
• 39:39
  at
• 39:39
  least
• 39:39
  four,
• 39:40
  Chris.
• 39:40
  Yeah,
• 39:41
  I
• 39:41
  think
• 39:41
  so,
• 39:41
  too.
• 39:42
  So,
• 39:42
  so.
• 39:42
  Thank
• 39:43
  you
• 39:43
  so
• 39:43
  much,
• 39:44
  Kim.
• 39:44
  All
• 39:45
  the
• 39:45
  best.
• 39:46
  Today's
• 39:46
  podcast
• 39:47
  has
• 39:47
  been
• 39:47
  produced
• 39:47
  by
• 39:47
  Ellis
• 39:48
  Sirjord.
• 39:48
  I'm
• 39:49
  Chris
• 39:49
  Walton.
• 39:49
  This
• 39:50
  has
• 39:50
  been
• 39:50
  Confessions
• 39:51
  of
• 39:51
  a
• 39:51
  Supply
• 39:51
  Chain
• 39:52
  Executive.
• 39:52
  Never
• 39:53
  forget
• 39:53
  Omnitok
• 39:54
  fans.
• 39:54
  Confessions
• 39:55
  are
• 39:55
  almost
• 39:55
  always
• 39:56
  good
• 39:57
  for
• 39:57
  the
• 39:57
  soul.
• 39:58
  Be
• 39:58
  careful
• 39:58
  out
• 39:59
  there.