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Confessions Of Supply Chain Executives | What Has To Be True For E-Groceries To Be Profitable? · Omni Talk Retail

0:00
For
0:00
years,
0:00
grocery
0:01
executives
0:01
have
0:01
been
0:01
asking
0:02
the
0:02
same
0:02
question
0:03
in
0:03
boardrooms
0:04
across
0:04
America
0:04
and
0:05
really
0:05
across
0:05
the
0:05
world.
0:06
When
0:06
will
0:07
online
0:07
grocery
0:08
actually
0:08
make
0:09
us
0:09
money?
0:10
The
0:10
answer
0:10
has
0:10
been
0:10
uncomfortable
0:11
to
0:11
date.
0:12
It
0:13
hasn't.
0:13
It
0:13
doesn't.
0:14
At
0:14
least
0:14
not
0:14
yet.
0:15
Most
0:16
grocers
0:16
lose
0:16
money
0:16
on
0:17
every
0:17
single
0:17
E
0:18
commerce
0:18
order
0:18
they
0:18
fulfill.
0:19
They've
0:19
been
0:20
subsidizing
0:20
convenience
0:21
with
0:21
razor
0:21
thin
0:21
margins,
0:22
hoping
0:22
that
0:22
scale
0:23
will
0:23
eventually
0:24
solve
0:24
the
0:24
problem.
0:24
But
0:25
here's
0:25
what
0:25
changed.
0:25
Last
0:26
month,
0:27
US
0:27
E
0:27
commerce
0:28
grocery
0:28
penetration
0:28
hit
0:29
19%.
0:30
That
0:30
is
0:31
according
0:31
to
0:31
brick
0:31
meets.
0:32
Click
0:33
90%.
0:34
That's
0:35
not
0:35
a
0:35
rounding
0:35
error
0:36
anymore.
0:37
That's
0:37
nearly
0:37
one
0:38
in
0:38
five
0:38
grocery
0:38
purchases
0:39
happening
0:39
online.
0:40
And
0:41
if
0:41
you
0:41
can't
0:41
figure
0:41
out
0:41
how
0:41
to
0:42
make
0:42
it
0:42
profitable
0:43
at
0:43
19%,
0:44
what
0:44
happens
0:45
when
0:45
it
0:45
hits
0:45
25%
0:47
or
0:47
even
0:47
30%?
0:49
Today,
0:49
we're
0:50
going
0:50
to
0:50
answer
0:51
not
0:51
the
0:51
$64,000
0:52
question,
0:53
but
0:53
the
0:53
billion
0:54
dollar
0:54
question
0:54
facing
0:55
the
0:55
grocery
0:55
industry.
0:56
What
0:57
needs
0:57
to
0:57
be
0:57
true
0:58
for
0:58
grocers
0:58
to
0:59
actually
0:59
make
0:59
money
1:00
on
1:00
E
1:00
Commerce?
1:01
Welcome
1:01
to
1:01
Confessions
1:02
of
1:02
a
1:02
Supply
1:03
Chain
1:03
Executive,
1:03
the
1:03
podcast
1:04
where
1:04
we
1:04
get
1:04
brutally
1:05
honest
1:05
about
1:05
the
1:05
challenges,
1:06
failures,
1:06
and
1:07
also
1:07
where
1:07
we
1:08
can
1:08
celebrate
1:09
the
1:09
victories
1:09
in
1:10
retail
1:10
supply
1:10
chains.
1:11
I
1:11
am
1:11
your
1:11
host,
1:11
Chris
1:12
Walton.
1:12
Today's
1:13
episode
1:13
tackles
1:13
the
1:14
most
1:14
pressing
1:14
question
1:15
in
1:15
grocery
1:15
retail
1:16
profitability.
1:17
In
1:17
E
1:18
Commerce,
1:18
we're
1:18
not
1:18
talking
1:19
about
1:19
growth
1:19
metrics
1:20
or
1:20
customer
1:20
acquisition.
1:20
We're
1:21
talking
1:21
about
1:21
actual
1:22
unit
1:22
economics,
1:23
making
1:23
money
1:23
on
1:23
orders,
1:24
not
1:24
just
1:25
fulfilling
1:26
them.
1:26
My
1:27
guest
1:27
today
1:27
is
1:27
Richard
1:28
McKenzie,
1:28
the
1:29
CEO
1:29
of
1:29
Volok,
1:30
a
1:30
division
1:30
of
1:30
the
1:30
Roelik
1:31
Group.
1:31
For
1:32
those
1:32
unfamiliar,
1:33
Roelik
1:33
operates
1:33
one
1:34
of
1:34
Europe's
1:34
most
1:34
successful
1:35
online
1:35
grocery
1:36
models
1:36
and
1:37
Valak
1:37
is
1:37
tasked
1:38
with
1:38
taking
1:38
the
1:38
lessons
1:39
learned
1:39
from
1:39
their
1:39
operations
1:40
and
1:41
to
1:41
help
1:41
other
1:41
grocers
1:42
achieve
1:42
E
1:42
Grocery
1:43
profitability.
1:44
Richard
1:44
brings
1:45
a
1:45
unique
1:45
perspective
1:46
from
1:46
seeing
1:46
what
1:46
works
1:47
in
1:47
mature
1:47
E
1:47
grocery
1:48
markets
1:48
and
1:48
understanding
1:49
what
1:50
American
1:50
grocers
1:50
need
1:51
to
1:51
check
1:51
the
1:52
Profitability
1:52
Code.
1:53
Richard
1:54
McKenzie,
1:54
welcome
1:55
to
1:55
Confessions
1:56
of
1:56
Supply
1:56
Chain
1:56
Executives.
1:57
Thank
1:57
you,
1:58
Chris.
1:58
Good
1:58
morning
1:58
to
1:59
you.
1:59
Yes,
1:59
I'm
2:00
excited
2:00
to
2:00
have
2:00
you.
2:00
I
2:01
mean,
2:01
I
2:01
think
2:01
you
2:01
bring
2:01
a
2:02
very
2:02
unique
2:02
perspective
2:03
to
2:04
to
2:04
this
2:04
conversation.
2:05
Why
2:05
don't
2:05
we
2:05
get
2:05
started
2:05
too?
2:06
Why
2:06
don't
2:06
you
2:06
explain
2:06
your
2:06
background
2:07
and
2:07
how
2:08
you
2:08
came
2:08
to
2:08
be
2:08
a
2:09
quote
2:09
unquote
2:09
grocery
2:10
E
2:10
commerce
2:11
expert?
2:12
I'd
2:12
say
2:12
I
2:12
started
2:13
this
2:13
journey.
2:13
I
2:14
spent
2:14
a
2:14
decade
2:14
in
2:14
China
2:15
and
2:16
in
2:16
China
2:17
because
2:17
everything
2:18
went
2:18
online
2:19
and
2:19
the
2:19
grocers
2:20
who
2:20
were
2:20
there
2:21
just
2:21
lost
2:23
literally
2:23
120%
2:24
of
2:24
their
2:24
profit
2:25
to
2:26
the
2:26
likes
2:26
of
2:26
Alibaba,
2:27
JD.com
2:28
and
2:28
so
2:28
on.
2:29
And
2:29
I
2:29
just
2:29
kind
2:29
of
2:30
started
2:30
to
2:30
look
2:30
at
2:30
it
2:30
and
2:30
say,
2:31
okay,
2:31
the
2:31
west
2:32
will
2:32
be
2:32
different,
2:33
but
2:33
the
2:34
same
2:34
thing's
2:34
going
2:34
to
2:34
Happen.
2:35
And
2:36
that's
2:36
why
2:36
I
2:36
got
2:36
interested
2:37
in
2:37
this.
2:37
And
2:37
then
2:37
I
2:37
joined
2:38
Ocado.
2:38
I
2:39
was
2:39
their
2:39
chief
2:39
commercial
2:39
officer
2:40
for
2:40
four
2:40
years,
2:41
looking
2:41
at
2:41
their
2:41
solutions
2:42
business,
2:43
looking
2:43
after
2:43
their
2:43
partnerships.
2:45
And
2:45
then
2:46
that
2:46
led
2:46
me
2:46
on
2:47
to
2:47
working
2:47
with
2:47
Roelik,
2:48
where
2:49
I
2:49
kind
2:49
of
2:50
thought,
2:50
actually,
2:50
Rolik's
2:51
got
2:51
something
2:51
pretty
2:51
special
2:52
from
2:52
a
2:52
customer
2:52
point
2:53
of
2:53
view.
2:53
And
2:54
what's
2:54
the
2:54
technology
2:54
that
2:55
underlies
2:55
it?
2:55
So
2:56
here
2:57
I
2:57
am.
2:57
What
2:57
years
2:58
were
2:58
those
2:58
that
2:58
you
2:59
were
2:59
in
2:59
China?
2:59
So
3:00
I
3:00
was
3:00
in
3:00
China
3:00
2010,
3:01
2019.
3:02
So
3:02
it
3:03
went
3:03
from
3:03
0e
3:04
commerce
3:05
to
3:05
I
3:05
left
3:06
Shanghai.
3:06
I
3:06
reckon
3:07
there
3:07
was
3:07
probably
3:07
40%
3:08
of
3:08
grocery
3:08
online.
3:09
It
3:09
was
3:09
just
3:10
total
3:10
transformation.
3:11
Right,
3:11
right.
3:12
And
3:12
so,
3:13
gosh,
3:13
yes.
3:13
So
3:13
15,
3:14
16
3:14
years
3:14
ago
3:15
now,
3:15
you
3:15
started
3:16
to
3:16
see
3:16
this
3:16
and
3:16
you
3:16
had
3:16
this
3:16
epiphany
3:17
that
3:17
this
3:18
was
3:18
coming
3:18
and
3:19
that's
3:19
it.
3:19
That
3:19
40%
3:20
number
3:20
is
3:20
interesting
3:20
too,
3:20
because
3:21
I
3:21
want
3:21
to
3:21
start
3:21
with
3:21
the
3:21
elephant
3:22
in
3:22
the
3:22
room
3:22
today
3:22
for
3:23
this
3:23
discussion,
3:24
US
3:24
E
3:24
Commerce
3:25
grocery
3:25
penetration.
3:26
As
3:26
I
3:26
said
3:26
at
3:26
the
3:26
outset
3:27
of
3:27
this
3:27
podcast,
3:28
it
3:28
hit
3:28
19%
3:29
last
3:29
month.
3:30
And
3:30
it's
3:31
approaching
3:31
that.
3:31
What
3:32
previously
3:32
was
3:33
the
3:33
magic
3:33
20%
3:34
threshold
3:34
where
3:34
E
3:35
commerce
3:35
starts
3:35
to,
3:36
for
3:36
lack
3:36
of
3:36
a
3:36
better
3:37
way
3:37
to
3:37
put
3:37
it,
3:37
generally
3:38
lay
3:38
waste
3:38
to
3:38
retailers.
3:39
So
3:39
from
3:39
your
3:39
perspective,
3:41
working
3:41
with
3:41
grocers
3:42
on
3:42
both
3:42
sides
3:42
of
3:42
the
3:43
Atlantic,
3:44
is
3:44
this
3:44
19%
3:45
milestone
3:46
or
3:47
is
3:47
this
3:47
90%
3:48
penetration?
3:48
I
3:48
should
3:48
say,
3:49
is
3:49
it
3:49
a
3:49
mile?
3:49
Is
3:50
it
3:50
a
3:50
milestone
3:50
tipping
3:51
point
3:51
that
3:51
should
3:52
start
3:52
to
3:52
worry
3:52
traditional
3:53
grocers?
3:53
Is
3:54
it
3:54
a
3:54
validation
3:54
that
3:55
E
3:55
Commerce
3:56
grocery
3:56
is
3:57
essentially
3:57
mainstream
3:58
at
3:58
this
3:58
point,
3:59
for
3:59
me,
4:00
E
4:00
commerce
4:01
has
4:01
been
4:01
this
4:01
kind
4:01
of
4:02
elephant
4:02
in
4:02
the
4:02
room
4:02
that
4:03
grocers
4:04
have
4:04
wanted
4:04
to
4:04
ignore.
4:05
And
4:05
I'm
4:05
sure
4:05
we're
4:05
going
4:06
to
4:06
talk
4:06
a
4:06
lot
4:06
about
4:06
it,
4:06
but
4:07
it's
4:08
less
4:08
profitable.
4:08
It's
4:09
difficult.
4:09
They
4:09
don't
4:10
know
4:10
how
4:10
to
4:10
manage
4:10
it
4:11
and
4:11
they've
4:11
tried
4:12
to
4:12
ignore
4:12
it.
4:13
We're
4:13
just
4:13
getting
4:13
to
4:14
this
4:14
point
4:14
now
4:14
where
4:14
it
4:15
can't
4:15
ignore
4:15
it.
4:16
19%
4:16
is
4:17
a
4:17
lot.
4:17
And
4:17
if
4:17
you're
4:18
not
4:18
doing
4:18
it,
4:18
that
4:18
19%
4:19
is
4:20
going
4:20
to
4:20
somebody
4:21
else.
4:22
And
4:22
I
4:22
think
4:22
it
4:23
really,
4:24
a
4:25
lot
4:25
of
4:25
the
4:25
managers
4:26
said,
4:26
okay,
4:26
it
4:26
was
4:27
a
4:27
Covid
4:27
blip,
4:27
we
4:28
want
4:28
this
4:28
to
4:28
go
4:28
away.
4:29
But
4:29
actually
4:29
now
4:30
it's
4:30
just
4:30
keeping
4:30
on
4:30
growing
4:31
and
4:31
you've
4:31
got
4:31
to
4:31
take
4:31
it
4:32
seriously
4:32
whether
4:32
you
4:32
like
4:33
it
4:33
or
4:33
not.
4:33
So
4:34
it's
4:34
become
4:34
this
4:34
problem
4:35
that
4:35
I
4:35
think
4:36
can't
4:36
be
4:36
brushed
4:37
under
4:37
the
4:37
carpet
4:37
anymore.
4:38
Yeah,
4:39
yeah,
4:39
it's
4:39
interesting.
4:39
I
4:40
went
4:40
on
4:40
just
4:40
fun
4:41
anecdote.
4:41
I
4:41
went
4:41
on
4:41
Amazon
4:42
this
4:42
week
4:42
and
4:43
I
4:43
tried
4:43
to
4:43
order
4:43
an
4:44
air
4:44
filter
4:44
for
4:44
my
4:45
furnace.
4:45
And
4:46
as
4:46
I'm
4:46
ordering
4:46
the
4:47
air
4:47
filter,
4:47
it
4:48
popped
4:48
up
4:48
like
4:49
literally
4:50
12
4:50
to
4:50
15
4:51
groceries
4:51
in
4:51
a
4:52
tile
4:52
format
4:52
that
4:52
it
4:53
just
4:53
wanted
4:53
me
4:53
to
4:53
add
4:54
to
4:54
my
4:54
order.
4:54
So
4:55
it's
4:55
definitely
4:55
becoming
4:57
more
4:58
part
4:58
of
4:58
the
4:58
consumer
4:58
experience
4:59
every
4:59
day
4:59
too,
5:00
as
5:00
those
5:00
entrants
5:00
come
5:01
into
5:01
play.
5:02
And
5:02
the
5:02
consumer
5:03
expectations
5:04
are
5:04
going
5:04
up
5:04
and
5:04
up
5:04
with
5:05
this
5:05
and
5:05
Amazon's
5:06
driving
5:06
that.
5:06
You
5:06
know,
5:07
this
5:08
need
5:08
to
5:08
deliver
5:08
now
5:09
and
5:09
this
5:09
need
5:09
to
5:10
deliver
5:10
in
5:10
three
5:10
hours,
5:11
it's
5:11
just
5:11
getting
5:11
more
5:11
and
5:12
more
5:12
and
5:12
I
5:12
think
5:12
that's
5:12
what's
5:13
driving
5:13
this
5:13
penetration.
5:14
Yeah.
5:14
And
5:15
the
5:15
survey
5:15
that,
5:16
you
5:16
know,
5:16
referenced
5:17
at
5:17
the
5:17
outset,
5:17
the
5:17
19%
5:18
from
5:18
Brick
5:18
Meets
5:18
Click.
5:19
Yeah,
5:19
they
5:19
said
5:19
that,
5:19
you
5:19
know,
5:20
the
5:20
Amazon
5:20
push
5:21
into,
5:22
you
5:22
know,
5:22
quick
5:22
delivery
5:23
of
5:23
just
5:24
the
5:24
grocery
5:25
items
5:25
you
5:25
need
5:26
or
5:26
maybe
5:26
forgot
5:27
is
5:27
definitely
5:27
having
5:27
an
5:28
impact
5:28
on
5:28
that
5:28
number.
5:29
All
5:29
right,
5:29
so
5:29
let's
5:30
talk
5:30
bluntly
5:30
then
5:30
about
5:31
the
5:31
unit
5:31
economics.
5:33
When
5:33
a
5:33
typical
5:33
U.S.
5:34
grocer
5:34
fulfills
5:34
an
5:35
online
5:35
order,
5:36
are
5:36
they
5:37
making
5:37
money,
5:37
losing
5:38
money,
5:38
breaking
5:39
even?
5:39
And
5:39
what's
5:40
the
5:40
typical
5:40
loss
5:40
or
5:41
margin
5:41
on
5:41
an
5:42
order
5:42
in
5:42
the
5:42
US
5:43
the
5:43
brutal
5:44
truth
5:44
is
5:45
most
5:45
people
5:46
are
5:46
losing
5:46
money.
5:46
And
5:47
the
5:47
reason
5:47
they're
5:48
not
5:48
investing
5:48
in
5:48
this,
5:49
they've
5:49
got
5:49
themselves
5:49
into
5:50
this
5:50
vicious
5:50
cycle
5:51
is
5:52
they're
5:52
losing
5:53
money
5:53
and
5:53
therefore
5:53
they
5:53
don't
5:54
invest
5:54
in
5:54
the
5:54
proposition,
5:55
therefore
5:55
they
5:55
don't
5:55
get
5:55
growth
5:56
and
5:56
therefore
5:56
they
5:56
lose
5:56
money.
5:57
And
5:57
I
5:58
think
5:58
that's
5:58
kind
5:58
of.
5:58
That's
5:59
where
5:59
most
5:59
grocers
6:00
are
6:00
today.
6:01
How
6:01
much?
6:02
You
6:02
know,
6:02
I
6:03
think
6:03
the
6:03
good
6:03
ones
6:04
are
6:04
kind
6:04
of
6:04
operating
6:04
close
6:05
towards
6:05
break
6:05
even.
6:06
I
6:06
think
6:06
honestly
6:07
you're
6:07
seeing
6:07
kind
6:07
of
6:08
minus
6:08
5,
6:08
minus
6:09
$10
6:09
an
6:09
order
6:09
in
6:10
places.
6:10
It's
6:10
pretty.
6:10
It's
6:11
pretty
6:11
brutal.
6:11
Yeah,
6:12
that's
6:12
not
6:13
good
6:13
for
6:13
anybody,
6:13
you
6:14
know,
6:14
and
6:14
everyone
6:14
also
6:14
has
6:15
a
6:15
different
6:15
theory
6:15
about
6:16
why
6:16
that
6:17
is.
6:17
So
6:18
break
6:19
it
6:19
down
6:19
for
6:19
us
6:19
because
6:20
you've
6:20
got
6:20
experience
6:20
in
6:20
China,
6:20
you've
6:21
experienced
6:21
Okada,
6:21
you
6:22
now
6:22
have
6:22
experience
6:22
at
6:22
Valak
6:24
and
6:24
roll
6:24
it
6:24
group.
6:25
Where.
6:25
Where
6:25
does
6:26
the,
6:26
where
6:26
does
6:26
the
6:27
money
6:27
actually
6:27
disappear
6:28
in.
6:28
In
6:29
online
6:29
grocery.
6:29
What
6:29
are
6:30
the
6:30
biggest
6:30
cost
6:30
drivers
6:31
that
6:31
kill
6:31
profitability
6:32
or
6:32
lead
6:32
to
6:32
that
6:33
outcome
6:33
that
6:33
you
6:33
just
6:33
mentioned?
6:34
There's
6:34
two
6:34
obvious
6:35
ones
6:35
which
6:35
everybody
6:36
talks
6:36
about,
6:36
which
6:36
is
6:37
the
6:37
cost
6:37
of
6:37
picking
6:37
and
6:38
packing
6:38
the
6:38
order.
6:39
And
6:39
that's
6:40
just
6:40
typically
6:41
that's
6:41
not
6:41
being
6:41
done
6:41
terribly
6:42
efficiently.
6:43
And
6:43
then
6:43
there's
6:43
the
6:44
cost
6:44
of
6:44
the
6:44
last
6:44
mile,
6:45
which
6:45
typically
6:46
kind
6:46
of
6:46
starts
6:46
to
6:46
fall
6:47
apart.
6:47
If
6:47
you're
6:47
doing
6:47
it
6:47
out
6:48
of
6:48
a
6:48
store
6:48
and
6:49
you've
6:49
only
6:49
got
6:49
a
6:49
handful
6:50
of
6:50
orders,
6:50
you
6:50
can't
6:50
optimize
6:51
that
6:51
route
6:51
very
6:52
well.
6:52
And
6:52
I
6:52
think
6:53
those
6:53
are
6:53
clearly
6:53
the
6:53
big
6:54
ones.
6:54
I
6:54
think
6:54
the
6:54
one
6:55
people
6:55
tend
6:55
to
6:55
forget
6:55
though
6:56
is
6:56
the
6:56
basket
6:56
size.
6:57
If
6:58
you're
6:58
suddenly
6:59
people
6:59
aren't
6:59
doing
6:59
a
6:59
full
7:00
basket
7:00
shop
7:00
with
7:01
you,
7:02
if
7:02
you're
7:02
not
7:03
getting
7:03
$100
7:03
and
7:04
you
7:04
get
7:04
what,
7:04
$30amargin,
7:06
suddenly
7:06
you'll
7:06
never
7:07
pay
7:07
for
7:07
that.
7:07
Pick
7:08
and
7:08
pack
7:08
and
7:08
deliver.
7:10
So
7:10
I
7:10
think
7:11
it's
7:11
for
7:12
me,
7:14
picking,
7:14
packing,
7:14
delivering
7:15
is
7:15
really
7:16
important.
7:17
But
7:17
I
7:17
do
7:17
think
7:17
we
7:17
tend
7:18
to
7:18
forget
7:18
about
7:18
actually
7:19
you
7:19
just
7:19
need
7:19
to
7:19
also
7:19
make
7:20
sure
7:20
you're
7:20
getting
7:20
as
7:20
big
7:21
a
7:21
basket
7:21
size
7:21
as
7:21
possible
7:22
in
7:22
that.
7:22
How
7:23
do
7:23
you
7:23
counter
7:23
that?
7:23
I
7:23
mean
7:23
E
7:24
Commerce
7:24
doesn't
7:24
seem
7:25
built
7:25
for
7:25
that
7:25
in
7:25
a
7:26
lot
7:26
of
7:26
ways.
7:27
This
7:27
is,
7:27
I
7:27
think,
7:27
where
7:27
Rolex
7:28
has
7:28
done
7:28
a
7:28
really
7:28
good
7:28
job
7:30
because
7:30
Roelik
7:31
has
7:31
said
7:31
we
7:31
will
7:31
deliver
7:32
quickly
7:32
but
7:32
we
7:32
will
7:33
not
7:33
compromise
7:34
on
7:34
range.
7:35
So
7:35
we're
7:36
doing
7:37
typically
7:38
25,000
7:39
orders
7:39
or
7:39
25,000
7:40
SKUs
7:40
rather
7:41
that
7:41
we're
7:42
offering
7:42
in
7:42
our
7:42
markets
7:43
or
7:43
there
7:43
or
7:43
thereabouts.
7:44
And
7:44
it's
7:44
the
7:44
widest.
7:45
But
7:45
it's
7:45
not
7:46
just
7:46
your
7:47
fourth
7:47
type
7:47
of
7:47
Tabasco
7:48
sauce.
7:48
We're
7:48
making
7:48
sure
7:49
there's
7:49
fresh
7:49
bakery.
7:50
We're
7:50
making
7:51
sure
7:51
that
7:51
you
7:51
can
7:51
do,
7:52
you
7:52
can
7:53
want
7:54
three
7:54
apples
7:54
picked
7:55
for
7:55
you
7:55
and
7:55
you've
7:56
got
7:56
that
7:56
choice.
7:57
So
7:57
what
7:58
I
7:58
say
7:58
is
7:58
we
7:58
offer
7:59
the
7:59
full
7:59
complexity
8:01
of
8:01
grocery
8:02
to
8:02
make
8:02
sure
8:02
that
8:03
people
8:03
can
8:04
get
8:04
everything
8:04
they
8:04
want
8:06
on
8:06
their
8:06
order
8:07
and
8:07
therefore
8:07
they're
8:08
comfortable
8:08
to
8:08
make
8:08
a
8:09
full
8:09
basket.
8:09
And
8:10
I
8:10
think
8:10
that
8:10
for
8:10
me
8:11
is
8:11
important.
8:13
That
8:13
makes
8:13
sense
8:13
too,
8:13
because
8:14
if
8:14
I'm
8:14
a
8:14
regional
8:14
or
8:15
a
8:15
local
8:15
grocer,
8:15
I
8:16
almost
8:16
have
8:16
to
8:16
do
8:16
that.
8:17
Because
8:17
if
8:17
I
8:17
don't
8:17
do
8:17
that,
8:17
then
8:18
it's
8:18
going
8:18
to
8:18
be
8:18
death
8:18
by
8:18
a
8:19
thousand
8:19
cuts.
8:19
Is
8:19
like
8:19
Amazon
8:20
cherry
8:20
picks,
8:21
you
8:21
know,
8:22
orders
8:22
with
8:22
their
8:23
air
8:23
filters
8:23
like
8:23
I
8:23
just
8:23
talked
8:24
about.
8:24
Exactly.
8:25
Let's
8:26
make
8:26
no
8:26
mistake
8:27
about
8:27
it.
8:27
Amazon
8:27
is
8:27
offering
8:28
a
8:28
pretty
8:28
full
8:28
range
8:28
now
8:29
themselves.
8:29
Yeah.
8:30
And
8:31
they're
8:31
going
8:32
to
8:32
be
8:32
thinking
8:32
the
8:32
same
8:32
thing.
8:33
They're
8:33
not
8:33
just
8:34
going
8:34
for
8:34
one
8:35
banana.
8:35
Right,
8:36
Right.
8:36
One
8:36
banana.
8:36
Yes.
8:37
Well
8:37
said.
8:38
That
8:38
might
8:38
be
8:38
the
8:38
quote
8:39
of
8:39
quote
8:39
of
8:39
today's
8:40
podcast
8:40
already.
8:41
All
8:42
right,
8:42
so,
8:43
so
8:43
let's,
8:44
let's
8:44
talk,
8:44
let's
8:45
talk
8:45
about,
8:45
let's
8:45
go
8:45
back
8:46
to
8:46
some
8:46
of
8:46
the
8:46
issues
8:46
then.
8:47
The
8:47
picking
8:47
problem.
8:47
So,
8:48
you
8:48
know,
8:49
I've
8:49
had
8:50
a
8:50
number
8:50
of
8:50
people
8:50
on
8:51
the
8:51
show.
8:51
You
8:51
know,
8:51
eight
8:52
years
8:52
of
8:52
doing
8:52
this
8:52
show,
8:53
you
8:53
know,
8:53
in
8:53
store
8:54
picking
8:54
seems
8:55
very
8:55
inefficient
8:56
at
8:56
the
8:56
end
8:56
of
8:56
the
8:56
day.
8:57
But
8:57
then
8:58
building
8:58
dedicated
8:59
micro
8:59
fulfillment
9:00
centers
9:00
is
9:01
also,
9:01
you
9:01
know,
9:01
relatively
9:02
capitally
9:03
intensive
9:03
and
9:03
expensive.
9:04
So
9:05
what's
9:05
the
9:05
right
9:05
answer?
9:06
How
9:06
do
9:06
you
9:06
know
9:06
when
9:06
you've
9:06
reached
9:07
the
9:07
scale
9:07
to
9:08
justify
9:09
dedicated
9:10
infrastructure
9:10
for
9:10
in
9:11
store
9:11
picking?
9:12
There's
9:12
a
9:12
couple
9:12
of
9:12
points.
9:13
In
9:13
store
9:14
picking
9:14
is
9:14
probably,
9:15
is
9:15
very
9:16
slow
9:16
and
9:16
actually
9:17
Kind
9:17
of,
9:17
I
9:17
think
9:17
some
9:17
of
9:18
the
9:18
US
9:18
numbers,
9:19
the
9:19
stores
9:20
are
9:20
bigger,
9:21
which
9:21
makes
9:21
it
9:21
harder.
9:22
But
9:22
actually
9:22
some
9:22
of
9:22
the
9:23
numbers
9:23
you
9:24
see
9:24
in
9:24
the
9:24
US
9:24
are
9:25
really
9:25
pretty
9:26
slow.
9:27
And
9:28
I
9:28
think
9:29
that
9:29
does
9:29
mean
9:30
actually
9:30
it's
9:30
kind
9:31
of
9:31
the
9:31
tipping
9:32
point
9:32
of
9:32
when
9:32
you
9:32
would
9:33
automate
9:34
probably
9:34
comes
9:34
a
9:35
little
9:35
bit
9:35
earlier
9:37
and
9:37
we're
9:38
seeing
9:38
business
9:38
cases
9:39
down
9:39
to
9:39
kind
9:40
of
9:40
500
9:40
orders
9:40
per
9:41
day
9:42
in
9:42
terms
9:42
of
9:43
when
9:43
it
9:43
makes
9:43
sense.
9:45
What
9:45
I
9:45
would
9:45
also
9:46
say
9:46
though,
9:46
it's
9:46
not
9:47
just
9:47
a
9:47
case
9:47
of
9:47
do
9:48
I
9:48
automate
9:48
this
9:48
one
9:49
store
9:49
now?
9:50
I
9:50
think
9:51
it
9:51
does
9:52
make
9:52
sense
9:52
to
9:52
start
9:52
to
9:53
aggregate
9:53
the
9:53
volumes
9:55
because
9:55
if
9:56
you
9:56
kind
9:56
of
9:56
start
9:56
to
9:57
say
9:57
actually
9:57
I'm
9:57
going
9:57
to
9:58
do
9:58
1,000
9:59
orders
9:59
out
9:59
of
9:59
this
9:59
store
10:00
and
10:00
automate
10:00
it,
10:01
you're
10:01
suddenly
10:01
going
10:01
to
10:02
end
10:02
up
10:02
with
10:02
a
10:02
much
10:02
more
10:03
efficient
10:03
system
10:04
and
10:04
a
10:04
store
10:05
that
10:05
actually
10:05
knows
10:06
the
10:06
processes
10:06
of
10:07
how
10:07
to
10:07
do
10:07
this.
10:08
Part
10:08
of
10:08
the
10:08
problem,
10:09
part
10:09
of
10:09
the
10:09
reason
10:09
we're
10:10
running
10:10
at
10:11
50
10:12
UPH
10:12
or
10:13
whatever
10:13
it
10:13
is
10:13
in
10:13
the
10:13
pick
10:14
rates
10:15
and
10:15
why
10:15
they're
10:16
so
10:16
low
10:16
is
10:17
because
10:17
the
10:17
stores
10:17
just
10:17
don't
10:18
have
10:18
a
10:18
lot
10:18
of
10:18
practice
10:18
doing
10:19
it.
10:20
I
10:20
think
10:20
that
10:21
problem
10:21
of
10:22
lack
10:22
of
10:23
volume
10:23
and
10:23
lack
10:23
of
10:23
aggregation
10:24
really
10:25
hits.
10:26
Got
10:26
it.
10:27
So
10:27
said
10:27
another
10:27
way.
10:28
So
10:28
you're
10:28
saying
10:29
take
10:29
a
10:29
look
10:29
at
10:29
the
10:29
market,
10:29
take
10:30
a
10:30
look
10:30
at
10:30
where
10:30
you
10:30
have
10:30
the
10:30
potential
10:31
order
10:31
density
10:32
that
10:32
you
10:32
need
10:33
and
10:33
then
10:33
put
10:33
the
10:33
infrastructure
10:34
in,
10:34
you
10:34
think,
10:35
and
10:35
you
10:35
put
10:35
the
10:35
infrastructure
10:36
into
10:36
the
10:36
store
10:37
to
10:37
help
10:37
with
10:38
that.
10:38
Is
10:38
that
10:38
and,
10:39
but
10:39
I
10:39
think
10:39
it
10:39
depends,
10:40
okay,
10:41
in,
10:41
in
10:41
the
10:41
US
10:41
you've
10:42
got
10:42
big,
10:42
you
10:43
have
10:43
a
10:43
lot
10:43
of
10:43
big
10:43
stores,
10:43
you've
10:44
got
10:44
a
10:44
lot
10:44
of
10:44
space.
10:45
I
10:45
think
10:45
actually
10:45
there's,
10:46
there
10:46
is,
10:46
you
10:46
can
10:46
create
10:47
that
10:47
room
10:47
in
10:48
the
10:48
store
10:48
to
10:48
put
10:48
in,
10:49
put
10:49
the
10:49
MFC
10:49
in.
10:50
MFCs
10:51
are
10:51
more
10:51
difficult
10:51
because
10:51
you've
10:52
got
10:52
to
10:52
work,
10:52
you've
10:53
got
10:53
to
10:53
work
10:53
all
10:53
of
10:53
the
10:54
store
10:54
processes.
10:56
Actually
10:56
typically
10:57
in
10:57
Europe,
10:57
I'd
10:57
actually
10:58
say
10:58
we
10:58
tend
10:58
to
10:58
do
10:58
it
10:59
more
10:59
out
10:59
of
10:59
the
10:59
store.
11:00
But
11:00
actually
11:00
I
11:00
think
11:00
in
11:01
some
11:01
of
11:01
the,
11:01
in
11:01
the
11:01
case
11:01
of
11:02
the
11:02
US
11:02
MFCs
11:03
are
11:03
probably
11:03
more
11:03
relevant.
11:04
I
11:04
want
11:04
to
11:04
touch
11:04
on
11:04
the
11:04
Last
11:05
Mile
11:05
Part
11:05
2
11:05
a
11:05
little
11:05
bit
11:06
more
11:06
too.
11:06
So
11:06
how
11:06
does
11:06
the
11:06
last
11:07
mile
11:07
part
11:07
come
11:07
into
11:08
this?
11:08
Because
11:08
you
11:08
know
11:08
what
11:08
I
11:09
always
11:09
hear
11:09
from
11:09
groceries
11:10
too
11:10
is
11:10
like,
11:10
you
11:11
know,
11:11
I've
11:11
got
11:11
the
11:11
picking
11:12
problem,
11:12
I
11:12
can't
11:12
make
11:13
my
11:13
poise
11:13
do
11:13
it.
11:13
So
11:13
I'm
11:14
going
11:14
to
11:14
leverage
11:14
the
11:14
third
11:15
party
11:15
providers
11:15
like
11:16
Instacart
11:16
and
11:16
Doordash
11:17
to
11:17
come
11:17
in
11:17
and
11:17
do
11:17
it
11:18
and
11:18
then
11:18
you
11:19
know,
11:19
they'll
11:19
charge
11:19
me
11:20
what
11:20
they're
11:20
going
11:20
to
11:20
charge
11:20
me
11:20
for
11:21
the
11:21
last
11:21
mile.
11:21
So,
11:22
so
11:22
how
11:22
do
11:22
you,
11:22
how
11:23
does
11:23
the
11:23
last
11:23
mile
11:23
factor
11:24
into
11:24
this
11:24
equation?
11:25
You
11:25
know,
11:25
in
11:25
your
11:26
mind,
11:26
typically
11:27
the
11:27
last
11:27
mile
11:27
is
11:27
the
11:28
single
11:28
biggest
11:28
cost.
11:30
And
11:30
actually
11:30
it's
11:30
kind
11:30
of
11:31
also
11:31
the
11:31
one
11:31
we
11:31
tend
11:31
to
11:32
ignore
11:32
because
11:32
we.
11:33
We
11:33
can
11:33
build
11:34
shiny
11:34
automated
11:35
fulfillment
11:35
centers.
11:37
We've
11:37
yet
11:37
to
11:37
get
11:38
the
11:38
robot
11:38
to
11:38
drive
11:39
the
11:39
car,
11:39
although
11:40
autonomous
11:40
vehicles
11:41
will
11:41
change
11:42
these
11:42
economics
11:43
in
11:43
the
11:43
future.
11:44
It's
11:44
one
11:44
way
11:44
that
11:45
aggregation
11:46
is
11:47
a
11:47
big
11:47
deal,
11:47
because
11:48
if
11:48
you're
11:49
running
11:49
a
11:49
couple
11:49
of
11:49
cars
11:50
out
11:50
of
11:50
a
11:50
store
11:51
that
11:52
you'll
11:52
just
11:52
have
11:52
no
11:52
opportunity
11:53
to
11:53
optimize
11:54
those
11:54
routes.
11:55
If
11:55
you're
11:55
running
11:56
20
11:56
cars,
11:57
you'll
11:57
probably
11:57
optimise
11:58
19
11:58
of
11:58
them.
12:00
If
12:00
you're
12:00
running
12:00
50,
12:00
you'll
12:01
probably
12:01
ought
12:01
to
12:01
optimize
12:02
49
12:02
of
12:02
them.
12:03
And
12:03
actually
12:04
we've
12:04
done
12:05
some
12:05
work,
12:06
admittedly
12:07
in
12:07
Europe,
12:08
where
12:08
we
12:08
were
12:09
taking
12:09
Storepic,
12:10
moving
12:10
it,
12:10
centralizing
12:11
it,
12:11
and
12:11
creating
12:12
in
12:12
this
12:12
case,
12:12
three
12:12
hubs
12:13
in
12:13
a
12:13
big
12:13
city
12:15
rather
12:15
than
12:15
30
12:16
that
12:16
they
12:16
were
12:16
doing
12:16
it
12:17
from.
12:17
And
12:17
we
12:18
were
12:18
getting
12:18
the
12:20
last
12:20
mile
12:20
costs
12:21
down
12:21
by
12:21
about
12:21
40%,
12:24
not
12:24
actually
12:24
because
12:24
we
12:25
were
12:25
doing
12:25
anything
12:25
different
12:25
in
12:26
terms
12:26
of
12:26
delivery
12:26
times,
12:27
but
12:27
purely
12:28
because
12:28
we
12:28
are
12:28
aggregating
12:29
the
12:29
volumes
12:29
and
12:29
you
12:29
can
12:30
just
12:30
optimize
12:30
them
12:30
better.
12:31
Even
12:31
though
12:32
on
12:32
average
12:32
the
12:32
stem
12:33
time,
12:33
the
12:33
drive
12:33
time
12:34
to
12:34
the
12:34
first
12:34
order
12:35
was
12:35
a
12:35
bit
12:35
longer.
12:36
I
12:36
think
12:37
that
12:37
kind
12:37
of
12:38
thing
12:38
about
12:38
last
12:39
mile
12:39
is
12:39
just
12:40
the
12:40
more
12:40
you
12:40
fragment
12:41
it,
12:41
the
12:41
more
12:42
difficult
12:42
it
12:42
is
12:42
to
12:42
manage.
12:43
Got
12:44
it.
12:44
So
12:44
the
12:44
load
12:45
factor
12:45
on
12:45
the
12:45
delivery
12:46
cars
12:46
going
12:46
out
12:46
is
12:47
better,
12:47
is
12:47
what
12:47
you're
12:48
saying.
12:48
Exactly.
12:49
If
12:49
you're
12:50
running
12:50
20,
12:50
you'll
12:51
have
12:51
19
12:52
of
12:52
them
12:52
full.
12:52
If
12:52
you're
12:53
running
12:53
two,
12:53
you'll
12:53
have
12:53
one
12:54
of
12:54
them
12:54
full.
12:55
Right,
12:55
right.
12:56
That
12:56
makes.
12:56
That
12:56
makes
12:56
a
12:56
ton
12:57
of
12:57
sense.
12:57
All
12:57
right,
12:58
so
12:58
there's
12:58
been
12:58
a
12:58
lot
12:58
of
12:58
debate
12:59
over
12:59
the
12:59
years,
12:59
and
13:00
I
13:00
feel
13:00
like.
13:00
I
13:01
feel
13:01
you
13:01
and
13:01
I
13:01
have
13:01
had
13:01
this
13:02
discussion
13:02
too,
13:02
you
13:03
know,
13:03
in
13:04
passing
13:04
as
13:04
we've
13:04
seen
13:05
each
13:05
other
13:05
in
13:05
person
13:05
at
13:05
different
13:06
conferences
13:06
and
13:06
whatnot.
13:06
There's
13:07
been
13:07
a
13:07
lot
13:07
of
13:07
debate
13:07
about
13:08
the
13:08
right
13:09
infrastructure
13:10
to
13:10
run
13:11
online
13:11
grocery
13:11
profitably.
13:12
You've
13:13
got.
13:13
You
13:13
got.
13:14
And
13:14
there's
13:14
so
13:14
many,
13:15
like,
13:15
different
13:15
names
13:16
for
13:16
these
13:16
things.
13:16
Like
13:16
you
13:16
got
13:16
dark
13:17
stores,
13:17
you
13:17
got
13:17
MFCs
13:18
micro
13:18
fulfillment
13:19
centers,
13:19
which
13:19
you
13:19
already
13:20
said.
13:20
You've
13:20
got
13:20
the
13:21
spoken
13:21
hub
13:22
models,
13:22
too.
13:23
You've
13:23
got
13:24
automated
13:24
warehouses,
13:25
you
13:25
know,
13:25
which
13:25
could
13:25
be
13:26
a
13:26
part
13:26
of
13:26
any
13:26
of
13:26
those
13:26
we
13:27
just
13:27
mentioned.
13:27
So
13:27
everyone's
13:28
got
13:28
a
13:28
different
13:28
answer.
13:30
You
13:30
work
13:31
with
13:31
Valak
13:31
on
13:31
this
13:32
and
13:32
you
13:32
know,
13:32
a
13:33
subsidiary
13:33
of
13:33
the
13:33
Roll
13:34
IT
13:34
group.
13:34
What
13:35
infrastructure
13:35
model
13:36
do
13:36
you
13:36
believe
13:37
is
13:37
the
13:38
right
13:38
one
13:38
that
13:38
actually
13:39
drives
13:39
profitability?
13:40
And
13:40
why
13:41
do
13:41
you
13:41
think
13:41
that
13:41
is?
13:42
I
13:43
hate
13:43
all
13:43
the
13:43
labels
13:44
we
13:44
tend
13:44
to
13:44
put
13:44
on
13:44
things
13:44
of
13:45
MFC,
13:45
CFCs,
13:46
whatever
13:46
you
13:46
call
13:47
them.
13:47
To
13:47
my
13:48
mind
13:48
the
13:48
right
13:48
answer
13:49
is
13:49
creating
13:50
the
13:50
right
13:50
size
13:51
FC
13:51
for
13:52
the
13:52
demand
13:52
you've
13:53
got
13:53
locally.
13:55
And
13:56
there
13:56
will
13:56
be
13:56
some
13:56
cases
13:57
where
13:57
you
13:58
can
13:58
fulfill
13:58
to
14:00
a
14:00
small
14:00
city
14:01
beautifully
14:02
from
14:02
One
14:02
fc.
14:03
And
14:03
actually
14:04
we've
14:04
got
14:05
quite
14:05
a
14:05
lot
14:05
of
14:05
those
14:05
where
14:05
we've
14:06
got
14:06
a
14:06
city
14:06
of
14:06
kind
14:06
of
14:07
500,000,
14:07
1
14:08
million
14:08
people,
14:09
we've
14:09
got
14:09
one
14:10
FC,
14:11
it
14:11
delivers,
14:11
it
14:11
can
14:11
get
14:12
anywhere
14:12
in
14:12
the
14:12
city
14:13
in
14:13
a
14:13
couple
14:13
of
14:13
hours
14:14
and
14:14
we
14:14
just
14:14
have
14:15
a
14:15
superb
14:15
service.
14:17
I
14:18
think
14:18
when
14:18
you've
14:18
got
14:18
volumes
14:19
that
14:19
are
14:19
lower,
14:20
it
14:21
still
14:21
makes
14:21
sense.
14:21
And
14:22
you've
14:22
got
14:22
big
14:22
stores,
14:23
it
14:23
still
14:23
makes
14:23
sense
14:24
to
14:24
be
14:24
going
14:24
into
14:24
doing
14:25
MFCS
14:25
Insider
14:26
stores.
14:27
And
14:27
I
14:27
think
14:27
that's.
14:28
And
14:28
I
14:28
do
14:28
think
14:29
that
14:29
for
14:30
retailers
14:33
looking
14:33
to
14:33
use
14:34
their
14:34
existing
14:34
infrastructure,
14:36
that
14:36
can
14:36
make
14:36
sense.
14:37
But
14:38
what
14:38
I
14:38
think
14:38
you've
14:38
got
14:38
to
14:39
do
14:39
though
14:39
is
14:39
not
14:39
just
14:39
to
14:40
say
14:40
we're
14:40
going
14:40
to
14:40
put
14:40
one
14:41
in
14:41
every
14:41
store
14:41
and
14:41
keep
14:42
all
14:42
of,
14:42
and
14:42
do
14:43
200
14:43
orders
14:44
out
14:44
of
14:44
every
14:44
store
14:45
because
14:45
then
14:45
you're
14:45
just
14:46
running
14:46
a
14:47
lot
14:47
of
14:47
inefficient
14:48
processes
14:48
both
14:48
in
14:49
the
14:49
picking
14:49
and
14:49
the
14:49
last
14:49
mile.
14:50
So
14:51
to
14:51
my
14:51
mind,
14:52
the
14:52
right
14:52
message
14:53
to
14:53
get
14:53
out
14:53
there
14:53
is
14:54
it
14:55
isn't,
14:56
it's
14:56
not
14:56
a
14:56
one
14:57
size
14:57
fits
14:57
all,
14:58
it's
14:58
building
14:59
the
14:59
right
14:59
size
15:00
of
15:00
fulfillment
15:00
center
15:02
for
15:03
the
15:03
demand
15:03
you've
15:04
got
15:05
in
15:05
that
15:05
in
15:05
the
15:05
catchment
15:06
area
15:06
that
15:06
you're
15:07
trying
15:07
to
15:07
serve.
15:08
That
15:08
makes
15:09
sense.
15:09
Is
15:09
there,
15:10
is
15:10
there
15:10
a
15:10
minimum
15:11
like
15:12
daily
15:12
order
15:12
threshold
15:13
or
15:13
volume
15:14
that
15:14
you
15:14
need
15:15
to
15:15
at
15:15
least
15:15
hit
15:15
to
15:16
even
15:16
be
15:16
thinking
15:17
about
15:17
doing
15:17
anything
15:17
like
15:18
you
15:18
just
15:18
described?
15:19
Yeah,
15:20
I
15:20
think
15:21
so.
15:21
It's
15:22
a
15:22
built
15:22
to
15:22
do
15:22
something
15:22
that's
15:23
really
15:23
standalone,
15:24
which
15:24
is
15:24
the
15:24
most
15:25
efficient.
15:25
I
15:25
think
15:25
you're
15:26
talking
15:26
about
15:26
kind
15:26
of
15:26
the
15:27
order
15:27
of
15:27
3,000
15:27
orders
15:28
a
15:28
day.
15:29
If
15:29
you
15:29
can
15:29
kind
15:30
of
15:30
get
15:30
to
15:30
that
15:30
kind
15:30
of
15:30
volume,
15:31
it
15:31
makes
15:31
sense.
15:31
Or
15:32
if
15:32
you
15:32
think
15:32
you're
15:32
going
15:32
to
15:32
be
15:32
in
15:32
there
15:33
in
15:33
the
15:33
next
15:33
12
15:33
months,
15:34
it
15:34
makes
15:34
sense.
15:36
If
15:36
you
15:36
want
15:36
to
15:37
build
15:37
something
15:37
the
15:37
side
15:37
of
15:38
a
15:38
store,
15:39
you
15:40
can
15:40
probably
15:40
be
15:41
making
15:41
sense
15:41
of
15:41
500
15:42
orders
15:42
per
15:42
day
15:42
or
15:43
above
15:45
and
15:45
I
15:45
think
15:46
you
15:46
can.
15:47
Now
15:47
clearly
15:48
your
15:48
level
15:49
of
15:49
efficiency
15:50
you're
15:50
getting
15:50
down
15:50
to
15:50
at
15:51
those
15:51
is
15:51
worse,
15:53
but
15:54
you
15:54
can
15:54
do
15:54
it.
15:55
The
15:56
difficulty
15:57
frankly
15:57
of
15:57
those
15:57
is
15:58
the
15:58
whole
15:58
management
15:59
layer
16:00
of
16:01
into
16:01
getting
16:01
the
16:01
automation
16:02
to
16:02
work
16:02
together
16:03
with
16:03
the
16:03
in
16:03
store
16:04
processes
16:05
because
16:05
you've
16:05
got
16:06
to
16:06
make
16:06
sure
16:06
that
16:06
you're
16:07
running
16:07
the
16:07
automation
16:08
you're
16:08
running,
16:08
you're
16:09
picking
16:09
the
16:09
tail
16:09
of
16:09
the
16:10
product
16:10
from
16:10
the
16:10
store.
16:11
They're
16:11
both
16:12
being
16:12
brought
16:12
together
16:12
at
16:13
the
16:13
same
16:13
time
16:13
and
16:14
you're
16:14
not
16:14
suddenly
16:15
ending
16:15
up
16:15
with
16:15
bottlenecks
16:16
or
16:16
choke
16:17
points
16:17
in
16:17
that
16:18
process.
16:18
Which
16:19
is
16:19
where
16:19
a
16:19
lot
16:19
of
16:19
the
16:19
MFCs
16:20
fell
16:20
apart
16:21
in
16:21
the
16:21
last
16:21
few
16:21
years
16:22
and
16:22
I
16:22
think
16:22
where
16:22
a
16:23
lot
16:23
of
16:23
people
16:23
have
16:23
been
16:23
burnt.
16:24
Wow,
16:25
that's
16:25
so
16:25
big.
16:25
Delta
16:26
though,
16:26
like
16:26
you
16:26
said,
16:26
three,
16:26
three
16:27
thousand.
16:27
Right.
16:28
To
16:28
five
16:28
hundred.
16:29
That's
16:29
the,
16:29
that's.
16:29
Yeah,
16:30
I
16:30
think
16:30
that's
16:31
three
16:31
thousand
16:31
is
16:31
standalone.
16:32
Yep.
16:33
Five
16:33
hundred.
16:33
We
16:34
inside
16:34
a
16:34
store.
16:35
Yeah.
16:35
Well,
16:35
interesting.
16:36
And
16:36
you.
16:36
But
16:36
you
16:36
can
16:37
still
16:37
get,
16:37
you
16:38
know,
16:39
30,
16:40
40%
16:40
or
16:40
your
16:40
pick
16:41
going
16:41
through
16:41
automation
16:42
in
16:42
those,
16:42
in
16:43
those,
16:43
in
16:43
those
16:43
small
16:43
facilities
16:44
and
16:45
you
16:45
can
16:45
still
16:45
get
16:46
that
16:46
and
16:46
they
16:46
can
16:47
be
16:47
done
16:47
efficiently.
16:47
As
16:48
I
16:48
say,
16:48
the
16:48
difficult
16:49
bit
16:49
is
16:49
not
16:49
actually
16:49
the
16:49
automation,
16:50
it's
16:51
making
16:51
sure
16:51
you
16:51
can.
16:52
The
16:52
store
16:53
knows
16:53
how
16:53
to
16:53
run
16:54
the
16:54
entire
16:54
automatic
16:55
or
16:55
the
16:55
guys
16:55
in
16:55
the
16:56
store
16:56
make
16:56
sure
16:57
you
16:57
can
16:57
run
16:57
the
16:57
entire
16:58
thing.
16:58
Right.
16:58
That
16:59
you
16:59
can
16:59
actually
16:59
operate
17:00
it
17:01
to
17:01
the
17:01
efficiency
17:01
that
17:01
it's
17:02
designed
17:02
to.
17:03
And
17:04
then
17:04
that's
17:04
absolutely
17:04
what
17:05
went
17:05
wrong.
17:06
Some
17:06
of
17:06
the
17:06
previous
17:07
ideas
17:07
on
17:07
this
17:07
I
17:07
don't
17:08
think
17:08
were
17:08
bad
17:08
ideas,
17:09
but
17:10
operationally
17:11
they
17:11
just
17:11
fell
17:11
apart
17:12
and
17:12
the
17:12
software
17:13
that
17:13
was
17:13
provided
17:14
with
17:14
them
17:14
was
17:15
just
17:15
not
17:15
adequate.
17:16
Right,
17:16
right.
17:17
Yeah.
17:17
And
17:17
then
17:18
we'll
17:18
probably
17:18
get.
17:18
I
17:18
want
17:18
to
17:19
get
17:19
into
17:19
that
17:19
more
17:19
too,
17:19
throughout
17:20
this
17:20
discussion
17:20
too,
17:21
especially
17:21
as
17:21
you
17:21
talked
17:22
about
17:22
basket
17:23
size
17:23
being
17:23
a
17:23
key
17:23
component
17:24
of
17:24
profitability
17:25
as
17:25
well.
17:25
I'm
17:26
curious
17:26
though,
17:26
because
17:27
the
17:27
delivery
17:28
expectation
17:29
around
17:29
speed
17:30
also
17:30
plays
17:31
into
17:31
this
17:31
too.
17:31
Right.
17:33
It's
17:33
not
17:33
just
17:34
how
17:34
many
17:34
orders
17:35
am
17:35
I
17:35
taking
17:35
a
17:35
day,
17:36
it's
17:36
also
17:36
how
17:36
fast
17:37
do
17:37
I
17:38
want
17:38
the
17:38
order
17:39
as
17:39
well
17:39
and
17:39
where
17:40
can
17:40
it
17:40
come
17:40
from
17:41
that
17:41
gives
17:41
me
17:42
the
17:42
speed
17:42
that
17:42
my
17:42
customer
17:43
wants
17:43
from
17:43
me.
17:43
How
17:43
does
17:44
that
17:44
factor
17:44
into
17:44
this?
17:45
Yeah.
17:46
And
17:46
honestly,
17:46
I
17:47
think
17:47
this
17:47
is
17:47
absolutely
17:48
critical
17:49
to
17:49
growing
17:49
your
17:49
volumes.
17:51
And
17:51
if
17:51
you
17:51
look
17:51
at
17:51
every,
17:52
I
17:52
think
17:53
almost
17:53
anywhere
17:53
in
17:54
the
17:54
world,
17:54
you
17:54
look
17:54
at
17:54
who's
17:55
winning,
17:55
they
17:56
are
17:56
typically
17:56
the
17:56
people
17:56
who
17:57
are
17:57
now
17:57
delivering
17:59
on
17:59
time
17:59
in
17:59
full.
18:00
That's
18:00
kind
18:00
of
18:00
the
18:01
standard
18:01
bit,
18:02
but
18:02
quicker.
18:03
And
18:04
you
18:04
look
18:04
at
18:04
where
18:05
the
18:05
growth
18:05
is
18:05
coming
18:05
from
18:05
in
18:06
the
18:06
US
18:07
it's
18:09
most
18:09
definitely
18:09
same
18:10
day
18:10
and
18:10
getting
18:10
quicker.
18:11
And
18:11
actually
18:12
I'd
18:12
say
18:12
if
18:12
you
18:12
look
18:12
at
18:12
what
18:13
we've
18:13
done
18:13
in
18:13
Rolik,
18:15
we've
18:15
been
18:15
operating
18:16
a
18:16
three
18:17
hour
18:17
cutoff.
18:17
So
18:18
you
18:18
get
18:18
an
18:18
order
18:19
three
18:19
hours
18:20
after
18:20
you
18:20
press
18:20
click,
18:21
press
18:22
buy.
18:24
And
18:24
we've
18:25
been
18:25
doing
18:25
that
18:25
through
18:25
our
18:26
cutoff
18:26
for
18:26
10
18:27
years.
18:28
And
18:28
that
18:28
is
18:28
honestly
18:29
just
18:29
from
18:29
a
18:29
customer
18:30
point
18:30
of
18:30
view.
18:31
It's
18:31
absolutely.
18:32
When
18:33
customers
18:33
are
18:33
used
18:33
to
18:33
that,
18:34
they'll
18:34
never
18:34
go
18:34
back
18:34
to
18:35
saying,
18:35
okay,
18:36
I'll
18:36
wait
18:37
eight
18:37
hours
18:37
or
18:37
I'll
18:37
wait
18:37
till
18:38
next
18:38
day.
18:39
That
18:39
Convenience
18:40
is
18:40
absolutely
18:41
essential
18:41
to
18:41
driving
18:41
it.
18:42
And
18:42
you've
18:42
got
18:42
to
18:43
build
18:43
the
18:43
technology
18:43
and
18:44
the
18:44
software
18:44
and
18:45
everything
18:45
behind
18:45
it
18:46
to
18:46
deliver
18:46
that.
18:48
A
18:48
lot
18:48
of
18:48
the
18:48
software
18:49
just
18:49
doesn't
18:49
do
18:49
that.
18:50
Right,
18:51
right.
18:51
And
18:52
for
18:52
the
18:52
US
18:53
Listeners,
18:53
maybe,
18:53
that
18:53
are
18:54
unfamiliar
18:54
with
18:54
Roelik,
18:54
I
18:55
should
18:55
have
18:55
done
18:55
this
18:55
at
18:55
the
18:55
outset
18:56
too.
18:56
But
18:56
just
18:57
as
18:57
a
18:57
reminder,
18:58
how
18:59
big
18:59
is
18:59
the
18:59
Roelic
19:00
operation?
19:01
So
19:01
we're
19:02
about
19:02
US$2
19:03
billion.
19:04
We
19:04
operate
19:05
in
19:05
five
19:05
countries.
19:06
In
19:06
Europe,
19:07
we
19:07
operate
19:07
out
19:08
of
19:08
12
19:08
fulfillment
19:09
centers.
19:09
So
19:09
it
19:09
gives
19:09
you
19:10
a
19:10
rough
19:10
idea
19:10
of
19:10
the
19:10
scale
19:11
of
19:11
the
19:11
fulfillment
19:11
centers.
19:12
We
19:12
are
19:13
growing,
19:14
know,
19:14
year
19:14
on
19:14
year
19:15
at
19:15
30,
19:16
40%
19:16
at
19:16
the
19:16
moment.
19:18
You
19:18
know,
19:18
in
19:19
Germany,
19:19
our
19:19
kind
19:19
of,
19:20
which
19:20
is
19:20
our
19:20
biggest
19:21
growth
19:21
market,
19:21
we're
19:21
growing
19:22
kind
19:22
of
19:22
40
19:22
to
19:23
50%.
19:25
And
19:25
the
19:26
one
19:26
thing
19:26
I,
19:27
the
19:27
one
19:27
plug
19:27
I've
19:28
got
19:28
to
19:28
give
19:28
Rolex,
19:29
the
19:29
NPS
19:30
numbers
19:30
we
19:30
get
19:30
are
19:31
outstanding.
19:31
You
19:32
know,
19:32
we
19:32
are
19:32
talking
19:33
90
19:33
plus
19:33
NPS,
19:34
which
19:34
I
19:34
just
19:35
don't
19:35
see
19:35
anywhere
19:35
else.
19:36
No,
19:36
which,
19:37
which
19:37
is
19:37
typical.
19:37
When
19:37
you
19:38
have
19:38
a
19:38
digital
19:38
model
19:39
that
19:39
works
19:39
that,
19:40
that
19:40
provides
19:40
people
19:40
that
19:41
can,
19:41
especially
19:41
when
19:41
it
19:42
provides
19:42
the
19:42
con.
19:42
I
19:43
was
19:43
just
19:43
hearing
19:43
Uber's
19:43
CEO
19:44
talk
19:44
about
19:44
this
19:44
on
19:44
a
19:45
podcast
19:45
yesterday.
19:46
When
19:46
you
19:46
have
19:46
a
19:46
digital
19:46
model
19:47
that
19:47
works,
19:47
that
19:47
provides
19:48
the
19:48
convenience
19:49
at
19:49
the
19:49
right
19:49
price,
19:50
the
19:50
general,
19:51
like,
19:52
love
19:53
of
19:53
that
19:53
product
19:54
is
19:54
very,
19:54
very
19:55
high.
19:55
So
19:56
that's,
19:56
that's
19:56
why
19:56
you're
19:57
seeing
19:57
what
19:57
you're
19:57
seeing.
19:57
Right.
19:58
Customers
19:59
love
19:59
it.
19:59
And,
20:00
you
20:00
know,
20:00
it's
20:00
not
20:00
a
20:00
public
20:01
number,
20:01
but
20:01
we
20:01
spend
20:02
a
20:02
lot
20:02
less
20:02
on
20:02
marketing
20:03
to
20:03
achieve
20:03
that
20:03
growth
20:04
rate
20:04
than
20:04
a
20:04
lot
20:04
of
20:04
other
20:05
people
20:05
are
20:06
spending
20:06
to
20:06
get
20:06
a
20:06
much
20:06
lower
20:07
growth
20:07
rate.
20:08
Yeah,
20:08
right.
20:09
All
20:09
right,
20:09
so
20:09
let's
20:09
bring
20:10
it
20:10
back
20:10
to
20:10
us
20:10
then.
20:10
So
20:11
like,
20:11
you
20:11
know,
20:11
the
20:12
way,
20:12
the
20:12
best
20:12
way
20:13
I
20:13
could
20:13
describe
20:13
the
20:13
US
20:13
Market
20:14
is
20:14
it's
20:14
kind
20:14
of
20:14
like
20:14
a
20:15
hybrid
20:15
approach.
20:15
Right
20:15
now
20:16
it
20:16
seems
20:16
like
20:16
it's
20:17
like
20:17
it's
20:17
got
20:17
a
20:17
lot
20:17
of
20:17
tentacles.
20:18
You've
20:18
got
20:19
some
20:19
people
20:19
placing
20:19
orders
20:20
from
20:20
stores,
20:20
some,
20:21
some
20:21
maybe
20:22
doing
20:22
dedicated
20:22
facilities.
20:24
Many,
20:25
many,
20:25
many,
20:25
many,
20:26
many,
20:26
as
20:26
I've
20:26
already
20:26
said,
20:27
are
20:27
using
20:27
third
20:27
party
20:28
services.
20:29
Is
20:30
this
20:30
like
20:30
kind
20:30
of
20:30
hybrid
20:31
approach
20:31
where
20:31
we're
20:31
kind
20:31
of
20:31
just
20:32
diversifying
20:32
our
20:32
bets,
20:33
running
20:33
a
20:33
portfolio
20:34
of
20:34
options?
20:34
Is
20:34
that,
20:35
is
20:35
that
20:35
the
20:36
right
20:36
long
20:36
term
20:36
approach
20:37
or
20:37
do
20:37
you
20:37
think
20:37
it's
20:37
just
20:38
a
20:38
short
20:38
term
20:38
stopgap?
20:39
I'm
20:39
guessing
20:39
you
20:39
think
20:40
it's
20:40
the
20:40
latter
20:40
based
20:41
on
20:41
how
20:41
you've
20:41
been
20:41
approaching
20:41
this
20:42
conversation
20:42
so
20:42
far.
20:43
This
20:43
is
20:44
no
20:44
longer
20:45
an
20:45
optional
20:46
play.
20:47
Your
20:47
19%
20:48
number
20:48
that
20:48
you
20:49
opened
20:49
with
20:49
just
20:50
tells
20:50
you
20:50
this
20:50
is
20:50
something
20:51
you've
20:51
got
20:51
to
20:51
make
20:51
as
20:51
a
20:52
core
20:52
part
20:52
of
20:52
your
20:52
strategy.
20:53
You've
20:53
got
20:53
to
20:53
Own
20:54
your
20:54
customers.
20:55
And
20:55
if
20:55
you're
20:56
going
20:56
to
20:56
own
20:56
your
20:56
customers,
20:56
you've
20:57
got
20:57
to
20:57
offer
20:57
them
20:57
a
20:57
really
20:58
good
20:58
proposition.
20:59
And
20:59
you've
20:59
got
21:00
to
21:00
be
21:00
able
21:01
to
21:01
deliver
21:01
it
21:01
in
21:01
a
21:02
way
21:02
that
21:02
is
21:03
a
21:04
way
21:04
that
21:04
is
21:04
economic.
21:06
And
21:06
to
21:06
my
21:07
mind,
21:07
that
21:07
means
21:07
you've
21:07
actually,
21:08
you've
21:08
got
21:08
to
21:08
start
21:09
to
21:09
say,
21:09
okay,
21:09
how
21:10
do
21:10
I,
21:10
how.
21:11
What
21:11
do
21:11
I
21:11
have
21:11
to
21:12
do
21:12
from
21:12
a
21:12
technology
21:13
point
21:13
of
21:13
view
21:14
to
21:14
be
21:14
able
21:14
to
21:15
deliver
21:15
that?
21:16
In
21:16
some
21:16
cases
21:17
it
21:17
will
21:17
be
21:17
standalone
21:17
fcs.
21:18
I
21:18
think
21:18
in
21:18
many
21:19
cases
21:19
it's
21:19
going
21:19
to
21:19
be
21:20
starting
21:20
to
21:20
automate
21:21
the
21:21
size
21:21
of
21:21
the
21:22
store.
21:24
But
21:24
I
21:24
think
21:24
you've
21:24
really
21:25
got
21:25
to,
21:25
you've
21:25
got
21:25
to
21:25
start
21:26
owning
21:26
that
21:26
as
21:27
a,
21:27
as
21:27
a
21:27
retailer.
21:29
And
21:29
if
21:29
you're
21:29
not,
21:30
let's
21:30
be
21:30
honest,
21:31
there's
21:32
nothing
21:32
that
21:32
stops
21:33
the
21:33
third
21:33
parties
21:34
building
21:34
their
21:34
own
21:34
fulfillment
21:35
centers
21:35
in
21:35
the
21:35
future
21:36
and
21:36
disaggregating
21:37
you.
21:38
And
21:38
let's
21:39
be
21:39
clear,
21:40
Amazon
21:41
are
21:41
the
21:41
ones
21:41
who
21:41
are
21:41
winning
21:42
in
21:42
this
21:42
market
21:42
at
21:42
the
21:42
moment.
21:43
So
21:45
where
21:45
do
21:45
you
21:45
want
21:45
your
21:46
customers
21:46
to
21:46
go?
21:47
Yeah,
21:47
and
21:47
Amazon
21:48
has
21:48
said
21:48
overtly
21:49
that
21:49
they're
21:49
going
21:49
to
21:49
do
21:49
that.
21:49
I
21:50
mean,
21:50
they've
21:50
made
21:50
announcements
21:50
to
21:51
that
21:51
front.
21:51
Yeah,
21:52
the
21:52
way
21:52
I'd
21:52
use
21:53
your
21:53
banana
21:53
analogy.
21:53
Yeah.
21:54
I
21:54
mean,
21:54
it
21:54
seems
21:54
like,
21:55
it
21:55
seems
21:55
like
21:55
at
21:55
best
21:55
it's
21:55
a
21:56
stopgap
21:56
because
21:56
you're
21:56
going
21:56
to
21:56
end
21:56
up
21:57
the
21:57
second
21:57
banana
21:58
if
21:58
you
21:58
don't
21:58
start
21:59
taking
21:59
this
21:59
approach
22:00
in
22:00
the
22:00
long
22:01
run.
22:02
All
22:02
right,
22:03
before
22:03
we
22:03
shift
22:03
gears,
22:04
I
22:04
do
22:04
want
22:04
to
22:04
ask
22:04
you
22:04
though,
22:05
because
22:05
one
22:05
thing
22:05
that's
22:05
been
22:05
absent
22:06
from
22:06
this
22:06
discussion,
22:07
I
22:07
think
22:07
it's
22:07
particularly
22:08
important
22:09
in
22:09
discussing
22:10
the
22:10
US
22:11
market
22:11
is
22:12
the
22:12
real
22:12
estate
22:13
angles
22:13
to
22:13
this
22:14
location
22:15
matters
22:15
enormously
22:16
for
22:16
last
22:16
mile
22:17
economics.
22:18
How
22:18
should
22:19
grocers
22:19
be
22:20
thinking
22:20
about,
22:21
about
22:22
the,
22:22
the,
22:23
the
22:23
real
22:23
estate
22:24
utilization
22:24
when
22:25
it
22:25
comes
22:25
to
22:25
designing
22:26
and
22:26
deciding
22:27
where
22:27
these
22:28
automated
22:28
facilities
22:29
should
22:29
go?
22:30
There
22:30
is,
22:30
I
22:30
don't
22:31
think
22:31
there's
22:31
a
22:31
single
22:31
single
22:32
right
22:32
answer
22:32
to
22:32
this.
22:34
You
22:34
know,
22:35
it's
22:35
going
22:35
to
22:35
differ
22:36
hugely
22:37
depending
22:37
on
22:37
the
22:37
size
22:38
of
22:38
the
22:38
city,
22:38
the
22:38
level
22:38
of
22:39
demand
22:39
you've
22:39
got,
22:40
the.
22:40
And
22:40
the
22:41
traffic
22:41
profile
22:41
you
22:42
got
22:42
in
22:42
the
22:42
city.
22:44
I
22:45
think,
22:45
yeah,
22:46
what
22:46
I
22:46
would
22:47
say
22:47
is
22:48
aggregating
22:49
does
22:50
bring
22:50
benefits.
22:50
We
22:51
talked
22:51
about
22:51
that,
22:51
particularly
22:52
with
22:52
the
22:52
last
22:52
mile,
22:53
but
22:53
also
22:53
in
22:53
terms
22:53
of
22:54
the
22:54
speed
22:54
of
22:54
the
22:54
picking.
22:55
So
22:56
I
22:56
don't
22:56
think
22:57
you
22:57
want
22:57
to
22:57
just
22:57
be
22:58
saying,
22:58
we
22:58
want
22:58
to
22:58
do
22:58
a
22:58
little
22:59
bit
22:59
out
22:59
of
23:00
every
23:00
store
23:00
I've
23:00
got.
23:01
You
23:01
do
23:01
want
23:01
to
23:02
kind
23:02
of
23:02
start
23:02
saying,
23:02
we're
23:03
going
23:03
to
23:03
aggregate,
23:04
we're
23:04
going
23:04
to
23:04
run
23:04
automation
23:05
at
23:05
scale,
23:05
we're
23:06
going
23:06
to
23:06
run
23:06
last
23:06
mile
23:07
at
23:07
scale.
23:08
If
23:08
you've
23:09
got
23:09
the
23:09
volumes
23:10
and
23:11
you
23:11
don't
23:11
have
23:11
that
23:11
space
23:12
in
23:12
store.
23:13
I
23:14
do
23:14
believe
23:14
kind
23:14
of
23:15
setting
23:15
up
23:16
fulfillment
23:16
centers
23:17
that
23:17
are
23:17
standalone
23:18
makes
23:18
a
23:18
lot
23:18
of
23:18
sense.
23:19
And
23:19
it's
23:19
the
23:20
model
23:20
we've
23:20
operated
23:21
very
23:21
successfully
23:21
in
23:22
Europe.
23:23
And
23:23
then
23:23
that's
23:24
quite
23:24
simple.
23:24
You
23:25
start
23:25
to
23:25
say,
23:26
if
23:27
you
23:27
take
23:27
our
23:27
older
23:27
city,
23:28
we
23:28
started
23:28
with
23:29
one
23:29
fulfillment
23:30
center.
23:31
As
23:31
our
23:31
volumes
23:32
grew,
23:32
we
23:32
just
23:32
started
23:33
ringing
23:34
the
23:34
city.
23:34
We
23:34
now
23:35
have
23:35
three.
23:36
And
23:36
it
23:36
just
23:36
means
23:37
we
23:37
can
23:37
get
23:37
to
23:37
customers
23:38
quicker
23:38
and
23:39
quicker
23:39
and
23:39
quicker.
23:41
But
23:41
I
23:41
do
23:41
think,
23:42
don't
23:42
underestimate
23:43
the
23:43
value
23:43
of
23:43
actually
23:44
bringing
23:44
some
23:45
of
23:45
the
23:45
volumes
23:45
together
23:46
so
23:46
you
23:47
can
23:47
actually
23:47
start
23:48
to
23:48
set
23:48
up
23:48
something
23:49
that
23:49
is
23:49
efficient.
23:50
Which
23:50
brings
23:51
up
23:51
another
23:51
topic.
23:52
I
23:52
remember
23:52
you
23:52
and
23:52
I
23:52
were
23:52
talking
23:53
about
23:53
this
23:53
a
23:53
little
23:53
bit
23:53
at
23:54
Grocery
23:55
Shop
23:55
at
23:55
the
23:55
end
23:55
of
23:55
last
23:56
year
23:56
too.
23:57
Because
23:57
part
23:57
of
23:57
this
23:57
too
23:58
is
23:58
like
23:58
you've
23:58
got
23:58
grocers
23:59
that
23:59
are
24:00
delivering
24:01
from
24:01
their
24:01
own
24:01
sites
24:02
and
24:02
controlling
24:03
that
24:03
delivery
24:03
themselves.
24:03
And
24:04
then
24:04
you've
24:04
got
24:04
grocers
24:05
that
24:05
are
24:05
on
24:05
the
24:05
third
24:06
party
24:06
marketplaces
24:07
as
24:07
well.
24:08
Where
24:08
then
24:08
those
24:08
marketplaces
24:09
are
24:09
handling
24:09
that.
24:10
You
24:10
have
24:11
to
24:11
be
24:11
thinking
24:11
about
24:11
all
24:12
that
24:12
volume
24:12
in
24:12
aggregate.
24:13
Right.
24:13
For
24:13
this
24:14
to
24:14
work,
24:14
like
24:14
you
24:14
don't
24:15
want
24:15
to
24:15
set
24:15
up
24:15
a
24:15
fulfillment
24:16
center
24:16
and
24:16
then
24:16
have
24:17
all
24:17
your
24:17
volume
24:18
running
24:18
through
24:19
Instacart
24:20
or
24:20
doordash.
24:20
I'm
24:21
not
24:21
picking
24:21
on
24:21
any
24:21
of
24:21
them.
24:22
But
24:22
just
24:22
like
24:22
that's
24:23
going
24:23
to
24:23
factor
24:23
in
24:24
and
24:24
make
24:24
your
24:24
utilization
24:25
a
24:25
lot
24:26
less
24:26
efficient
24:27
if
24:27
you're
24:27
not
24:27
thinking
24:28
about
24:28
that
24:28
and
24:28
designing
24:29
that
24:29
as
24:29
part
24:29
of
24:29
your
24:29
strategy
24:30
too.
24:30
Right,
24:31
I
24:31
agree.
24:32
And
24:32
I
24:32
think
24:34
if
24:35
you're
24:35
a
24:36
regional
24:36
grocer
24:36
in
24:37
the
24:37
US
24:37
you
24:37
don't
24:38
want
24:38
to
24:38
be
24:38
too
24:38
dependent
24:39
on
24:39
the
24:39
aggregators
24:39
or
24:40
the
24:41
third
24:41
parties.
24:44
But
24:44
I
24:44
do
24:44
think
24:46
there's
24:46
no
24:46
reason
24:46
you
24:47
can't
24:47
be
24:47
serving
24:47
them
24:48
as
24:48
well
24:49
out
24:50
of
24:50
these
24:50
larger
24:50
facilities.
24:52
I
24:52
think
24:52
that's
24:52
the
24:53
key
24:53
for
24:53
me
24:53
is
24:53
actually
24:53
let's
24:54
just
24:54
start
24:55
to
24:55
set
24:55
this
24:55
up
24:55
at
24:56
a
24:56
scale
24:56
where
24:56
you're
24:56
efficient
24:57
and
24:58
then
24:58
actually
24:58
start
24:58
to
24:59
all
24:59
of
24:59
the
24:59
volumes
25:00
to
25:00
that.
25:00
And
25:01
if
25:01
you're
25:01
set
25:01
up
25:01
correctly,
25:02
that's
25:03
fine.
25:03
There's
25:04
no
25:04
reason
25:04
you
25:04
can't
25:04
do
25:04
that.
25:05
Yeah,
25:05
right.
25:06
That's
25:06
the
25:06
key
25:07
though.
25:07
You
25:07
have
25:07
to
25:07
be
25:07
thinking
25:08
about
25:08
that
25:08
in
25:08
advance.
25:08
Otherwise
25:09
you're
25:09
going
25:09
to
25:09
be
25:09
running
25:09
a
25:09
distribution,
25:10
you're
25:10
going
25:10
to
25:10
be
25:11
trying
25:11
to
25:11
do
25:11
two
25:11
things
25:12
to
25:12
accomplish
25:13
the
25:13
same
25:13
thing
25:13
with
25:13
no,
25:13
absolutely,
25:14
absolutely
25:15
no
25:15
success.
25:16
All
25:17
right,
25:17
so
25:17
to
25:17
that
25:17
point,
25:18
so
25:18
if
25:19
people
25:19
are
25:19
listening
25:19
and
25:19
they're
25:20
kind
25:20
of
25:20
buying
25:20
into
25:21
what
25:21
you're
25:21
throwing
25:22
down
25:22
here,
25:23
which
25:24
I
25:24
definitely
25:24
am
25:24
so
25:25
far.
25:25
So
25:26
what,
25:27
what
25:27
are
25:27
the
25:27
operational
25:27
metrics
25:28
that
25:29
matter
25:29
most
25:30
as
25:30
people
25:30
start
25:30
to
25:31
think
25:31
about
25:31
this?
25:32
Are
25:32
there
25:32
KPIs
25:33
that
25:33
grocers
25:34
should
25:34
be
25:34
obsessing
25:35
over
25:35
to
25:36
drive
25:36
the
25:36
most
25:36
profitability
25:37
that
25:37
they
25:37
can.
25:38
Yeah,
25:39
I
25:39
don't,
25:40
I
25:40
don't
25:40
think
25:40
this
25:41
is
25:41
too
25:41
complicated.
25:42
Ultimately,
25:43
what
25:43
do
25:43
you
25:44
need?
25:44
You
25:44
need
25:46
a
25:46
unit
25:46
per
25:47
hour
25:47
or
25:47
a
25:47
cost
25:47
per
25:48
pick
25:48
or
25:48
whatever
25:48
you
25:48
do.
25:49
It
25:49
all
25:49
multiplies
25:50
up
25:50
to
25:50
the
25:51
same
25:51
thing
25:52
that's
25:53
efficient.
25:54
I
25:54
think
25:54
the
25:55
key
25:55
thing
25:55
actually
25:55
in
25:56
particular
25:56
as
25:56
you
25:56
start
25:56
to
25:57
automate
25:57
is
25:57
actually
25:58
there's
25:59
the
25:59
forgotten
25:59
cost
26:00
within
26:00
that,
26:01
as
26:01
in
26:01
the
26:01
overhead.
26:02
So
26:02
as
26:03
you
26:03
start
26:03
to
26:03
automate,
26:04
you
26:04
tend
26:05
to
26:05
forget
26:05
about
26:05
the
26:06
management,
26:07
the
26:07
shift,
26:07
the
26:07
shift
26:08
leads.
26:09
And
26:09
so
26:09
you
26:09
can
26:10
have
26:10
a
26:10
really
26:10
fast
26:11
pick
26:11
right
26:11
at
26:12
the
26:12
point
26:12
of
26:12
pick.
26:13
But
26:13
actually
26:13
all
26:13
the
26:14
stuff
26:14
that
26:14
goes
26:15
on
26:15
around
26:15
the
26:15
edges,
26:16
you've
26:16
got
26:16
to
26:16
watch.
26:18
And
26:18
I
26:18
think
26:18
that's
26:18
kind
26:18
of
26:19
again,
26:19
one
26:19
of
26:19
the
26:19
things
26:19
that's
26:20
fallen
26:20
apart
26:20
in
26:21
the
26:21
past
26:21
is
26:21
people
26:21
kind
26:22
of
26:22
put
26:22
in
26:23
some
26:23
super
26:23
duper
26:23
automation,
26:25
but
26:25
actually
26:25
everything
26:26
else
26:26
just
26:27
tends
26:27
to
26:27
fall
26:27
apart
26:27
as
26:28
a
26:28
mess
26:28
around
26:28
it.
26:29
So
26:29
for
26:30
me,
26:30
from
26:30
my
26:30
point
26:31
of
26:31
view,
26:31
and
26:31
one
26:31
of
26:31
my
26:31
big
26:31
learnings
26:32
in
26:32
this
26:32
industry
26:33
is
26:33
it's
26:34
not
26:34
just
26:34
about
26:34
the
26:34
pick
26:35
rate
26:35
of
26:36
how
26:36
fast
26:36
you
26:36
can
26:36
get
26:37
something
26:37
in
26:37
a
26:37
bag,
26:38
it's
26:38
about
26:38
everything
26:39
else
26:39
that
26:39
goes
26:39
on.
26:39
And
26:40
as
26:40
we
26:40
get
26:40
faster
26:41
and
26:41
faster
26:41
robotics,
26:42
there's
26:42
more
26:43
of
26:43
that
26:43
is
26:43
the
26:44
case.
26:44
Right.
26:44
You
26:45
still
26:45
got
26:45
to
26:45
manage
26:45
it.
26:46
That's
26:46
what
26:46
I
26:46
hear
26:46
you
26:46
saying,
26:47
you
26:47
still
26:47
got
26:47
to
26:47
manage
26:47
it.
26:48
And
26:49
frankly
26:50
that
26:51
often
26:51
gets
26:52
called
26:52
other
26:53
in
26:53
the
26:54
P
26:54
and
26:54
L
26:54
just
26:55
is
26:55
actually
26:55
becoming
26:55
the
26:56
biggest
26:56
line.
26:56
And
26:57
actually
26:58
that's
26:59
what
26:59
you
26:59
could
26:59
because
26:59
you
26:59
can
27:00
also,
27:00
and
27:00
particularly
27:00
now
27:00
you've
27:01
got
27:01
robotic
27:01
pick
27:01
coming
27:02
into
27:02
these
27:02
centers.
27:03
Actually
27:04
a
27:04
lot
27:04
of
27:04
the
27:05
actual
27:05
manual
27:05
labor
27:06
is
27:07
getting
27:07
really
27:07
quite
27:08
efficient.
27:10
I
27:10
think
27:10
the
27:10
second
27:10
thing
27:10
is
27:11
drop
27:11
density.
27:12
And
27:12
I
27:13
think
27:13
that
27:13
is
27:14
probably
27:14
the
27:14
one
27:14
thing
27:14
that
27:15
probably
27:15
people
27:15
forget
27:15
about
27:16
most.
27:17
And
27:17
I
27:18
think
27:19
it
27:19
is
27:19
one
27:19
of
27:19
the
27:19
things
27:20
actually
27:20
we've
27:21
put
27:21
a
27:21
lot
27:22
of
27:22
effort
27:22
into
27:22
and
27:22
have
27:23
actually
27:23
made
27:23
most
27:23
progress
27:24
over
27:24
the
27:24
last
27:24
18
27:25
months,
27:26
really
27:26
trying
27:26
to
27:27
understand
27:27
how
27:27
to
27:28
make
27:28
that
27:28
work.
27:28
And
27:29
it
27:29
works
27:29
differently
27:29
in
27:30
different
27:30
markets,
27:30
just
27:31
depending
27:31
on
27:31
the
27:31
labor
27:32
model
27:32
you're
27:32
using.
27:34
And
27:34
then
27:34
I
27:34
think
27:34
the
27:35
third
27:35
thing
27:35
is
27:35
basket
27:35
size,
27:36
which
27:36
I
27:36
keep
27:36
coming
27:36
back
27:37
to.
27:37
You've
27:38
got
27:38
to
27:38
make
27:38
sure
27:38
you've
27:39
got
27:39
a
27:39
big
27:40
enough
27:40
basket
27:40
that
27:40
there's
27:41
enough
27:41
margin
27:41
you
27:41
can
27:42
afford
27:42
to
27:43
provide
27:43
this
27:43
service
27:44
to
27:44
the
27:44
customer.
27:45
And
27:46
ultimately
27:46
that
27:47
means
27:47
you've
27:47
got
27:47
to
27:48
be
27:48
offering
27:48
a
27:48
wide
27:49
enough
27:49
range
27:50
and
27:50
people
27:50
trust
27:51
you
27:51
on
27:51
the
27:51
fresh
27:52
products
27:52
and
27:52
the
27:52
handling
27:53
of
27:53
the
27:53
products
27:53
and
27:54
that
27:54
it's
27:54
all
27:54
going
27:54
to
27:54
turn
27:54
up
27:56
with
27:56
your
27:56
eggs
27:56
not
27:57
broken.
27:58
Is
27:58
there
27:58
A
27:58
basket
27:59
size
27:59
number
27:59
that
28:00
tells
28:00
you
28:00
like,
28:00
yeah,
28:01
you've
28:01
got
28:01
a
28:01
good
28:01
healthy
28:03
kind
28:03
of
28:03
starting
28:04
point
28:04
here
28:04
to
28:05
go
28:06
in
28:06
this
28:06
direction.
28:08
I
28:08
always
28:08
have
28:08
a
28:08
rule
28:09
of
28:09
thumb
28:09
of
28:09
$100
28:10
just
28:10
because
28:10
I
28:10
think
28:10
if
28:10
you've
28:11
got
28:11
$100,
28:12
you've
28:12
got
28:12
kind
28:12
of
28:12
$30amargin
28:14
and
28:14
then
28:14
you
28:15
can
28:15
do,
28:15
you
28:15
know,
28:15
if
28:15
you've
28:15
got
28:16
it
28:16
gives
28:16
you
28:17
as
28:17
a
28:17
target,
28:18
$10
28:18
to
28:19
do
28:19
your
28:19
pick,
28:19
$10
28:19
to
28:20
do
28:20
your
28:20
delivery,
28:20
and
28:21
you've
28:21
got
28:21
some
28:22
money
28:22
left
28:22
over
28:22
to
28:22
pay
28:23
for
28:23
everything
28:23
else.
28:24
But
28:24
that's
28:24
important
28:24
to
28:25
think
28:25
about
28:25
too
28:25
because
28:25
like
28:26
the
28:26
merchandising
28:27
strategy
28:27
then
28:27
of
28:28
how
28:28
you
28:28
get
28:28
to
28:29
the
28:29
basket
28:29
is
28:30
also
28:30
fundamentally
28:31
important
28:31
to
28:31
make
28:32
E
28:32
Commerce
28:33
grocery
28:33
profitable
28:34
too,
28:34
to
28:34
get
28:34
the
28:34
automation
28:35
to
28:35
work
28:35
harder
28:36
for
28:36
you
28:36
in
28:36
the
28:36
background.
28:37
So,
28:37
yeah,
28:37
how
28:38
do
28:38
you
28:38
think,
28:38
how
28:38
do
28:38
you
28:38
think
28:38
about,
28:38
like,
28:39
what
28:39
are
28:39
there
28:39
merchandising
28:40
tips
28:40
or
28:40
tricks
28:41
you've
28:41
seen
28:41
that
28:41
work
28:42
well
28:43
to
28:43
get
28:43
that
28:43
basket
28:44
size,
28:44
you
28:44
know,
28:44
staying
28:45
consistently
28:45
at
28:45
the
28:46
level
28:46
you
28:46
need
28:46
it
28:46
to
28:46
be?
28:47
I
28:47
think
28:47
so.
28:48
You
28:48
know,
28:49
clearly
28:49
there's
28:49
some
28:50
tactical
28:50
things
28:50
in
28:50
terms
28:51
of
28:51
types
28:51
of
28:51
promotions
28:52
you
28:52
drive,
28:52
you
28:52
know,
28:53
you
28:53
don't
28:53
want
28:53
to,
28:53
you
28:53
want
28:53
to
28:53
drive,
28:54
you
28:54
want
28:54
to
28:54
drive
28:54
multiplies
28:55
because
28:56
you,
28:56
you
28:56
don't
28:57
want
28:57
to
28:57
drive
28:57
just
28:57
money
28:58
off.
28:59
So
28:59
there's
28:59
a
28:59
kind
28:59
of,
28:59
there's
28:59
some
28:59
pretty
29:00
tactical
29:00
parts
29:01
around
29:01
that.
29:02
There's
29:02
a
29:02
good
29:02
old
29:03
tactic
29:03
of
29:03
when
29:03
do
29:04
you
29:04
do
29:04
free
29:04
delivery
29:05
thresholds
29:05
or
29:06
when
29:06
does
29:07
the
29:07
delivery
29:07
become
29:07
cheaper
29:08
to
29:08
drive
29:08
that,
29:08
which
29:08
is
29:09
classic.
29:10
I
29:11
also
29:11
think,
29:12
and
29:13
this
29:14
is
29:14
clearly
29:14
a
29:14
bit
29:14
of
29:14
a
29:15
strategic
29:15
question,
29:16
but
29:17
if
29:17
you
29:18
have
29:18
automation,
29:19
the
29:20
incremental
29:21
cost
29:21
of
29:22
adding
29:23
a
29:23
new
29:23
SKU
29:23
is
29:23
lower.
29:24
Now
29:24
you
29:25
get
29:25
no
29:25
value
29:25
from
29:26
adding
29:26
your
29:26
fourth
29:27
tomato
29:27
ketchup
29:28
in
29:28
there.
29:29
But
29:30
if
29:30
you
29:30
can
29:30
start
29:31
to
29:31
put
29:31
genuinely
29:32
exclusive
29:33
product
29:33
in.
29:34
And
29:34
if
29:34
you
29:34
think
29:35
that
29:35
if
29:36
you're
29:36
serving
29:36
an
29:36
entire
29:37
city,
29:37
there's
29:38
things
29:38
that
29:38
make
29:38
sense
29:39
to
29:39
range
29:39
for
29:39
an
29:39
entire
29:40
city
29:40
that
29:40
might
29:40
not
29:40
make
29:41
sense
29:41
to
29:41
range
29:42
for
29:42
a
29:43
store.
29:45
So
29:45
classically
29:47
expat
29:48
communities.
29:49
I
29:50
remember
29:50
a
29:50
good
29:50
example.
29:52
If
29:52
you've
29:52
got
29:52
a
29:52
French
29:52
community,
29:54
it
29:54
may
29:55
not
29:55
be
29:55
worth
29:55
putting
29:55
that
29:55
French
29:56
product
29:56
in
29:56
any
29:56
one
29:57
store.
29:57
But
29:58
I've
29:58
seen
29:58
some
29:58
great
29:59
examples
29:59
where
29:59
you
30:00
put
30:00
that
30:00
in
30:00
a
30:00
fulfillment
30:01
center
30:01
and
30:02
it
30:02
flies
30:02
because
30:03
it's
30:04
the
30:04
only
30:04
place
30:04
you
30:04
can
30:05
buy
30:05
that
30:05
product
30:05
that
30:05
you
30:06
really
30:06
want.
30:07
So
30:07
I
30:07
think
30:07
there
30:07
are
30:08
some
30:08
few
30:08
things
30:08
there
30:08
that
30:09
you
30:09
can
30:09
do
30:09
within
30:10
that.
30:10
And
30:11
I
30:11
think
30:11
frankly,
30:12
it's
30:12
one
30:12
of
30:12
the
30:12
things
30:12
which
30:13
offline
30:13
grocers
30:14
have
30:14
not
30:14
been
30:14
terribly
30:15
good
30:15
at
30:15
because
30:15
they
30:16
think
30:16
about
30:16
stores
30:17
and
30:18
how
30:18
to
30:18
range
30:19
for
30:19
a
30:19
store,
30:20
not
30:20
about
30:20
things
30:20
that
30:21
think
30:21
about
30:21
that
30:22
work
30:22
for
30:22
an
30:22
entire
30:23
city.
30:24
Yeah,
30:24
preach
30:24
it,
30:25
man.
30:25
You
30:25
are,
30:25
you
30:25
are
30:26
speaking
30:26
to
30:26
my
30:26
choir
30:27
on
30:27
that
30:27
one.
30:27
Because
30:28
I
30:29
have
30:29
long
30:29
been
30:30
on
30:30
my
30:30
soapbox
30:30
about
30:31
how
30:31
digital
30:31
is
30:31
the
30:31
key
30:32
to
30:32
unlocking
30:32
localization.
30:33
I
30:33
hear
30:33
all
30:34
the
30:34
time
30:34
talking
30:34
about
30:34
we're
30:34
going
30:34
to
30:35
make
30:35
our
30:35
assortment
30:35
more
30:35
localized.
30:36
I'm
30:36
like,
30:36
no
30:36
you're
30:36
not.
30:37
You
30:37
can
30:37
only
30:37
put
30:37
so
30:37
many
30:37
products
30:38
on
30:38
your
30:38
shelf.
30:39
Digitalization
30:40
is
30:40
the
30:40
key
30:40
to
30:40
making
30:41
that
30:41
happen.
30:41
Invest
30:42
there
30:43
because
30:43
then
30:43
you
30:43
get
30:43
all
30:43
these
30:44
ancillary
30:44
benefits
30:44
that
30:45
we've
30:45
just
30:45
talked.
30:46
Interestingly,
30:47
one
30:47
of
30:47
the
30:47
things
30:47
we
30:48
do
30:48
in
30:48
Europe
30:49
is
30:49
we
30:49
source
30:50
a
30:50
lot
30:50
from
30:50
farms
30:50
that
30:51
are
30:51
local
30:51
to
30:51
the
30:51
fulfillment
30:52
center,
30:53
which
30:54
again
30:54
makes
30:54
no
30:55
sense
30:55
if
30:55
you're
30:56
kind
30:56
of,
30:56
if
30:56
you're
30:56
trying
30:56
to
30:56
get
30:57
those
30:57
go
30:57
from
30:57
the
30:57
farm
30:58
to
30:58
every,
30:58
to
30:58
every
30:59
shop
30:59
you've
31:00
got
31:00
in
31:01
wherever.
31:02
But
31:02
because
31:02
you've
31:02
got
31:03
farms
31:03
that
31:03
are
31:03
local
31:04
to
31:04
it
31:04
and
31:04
then
31:04
that
31:04
can
31:05
just
31:05
be
31:05
distributed
31:05
to
31:05
all
31:06
of
31:06
Munich
31:06
pretty
31:06
efficiently,
31:08
we
31:08
can
31:09
actually,
31:09
we
31:09
probably
31:09
have
31:10
more
31:10
local
31:10
products
31:11
than
31:11
does
31:12
the
31:13
standard
31:14
grocery
31:14
store.
31:15
Right?
31:15
Yeah.
31:15
No,
31:15
that's
31:16
a
31:16
great
31:16
point.
31:16
For
31:16
those
31:16
listening,
31:17
especially
31:17
those
31:17
in
31:17
the
31:17
US
31:18
that
31:18
play
31:18
into
31:18
that
31:18
market.
31:18
I
31:19
can
31:19
think
31:19
of
31:19
retailers
31:20
particularly
31:21
substitutions.
31:23
Substitutions
31:24
and
31:24
out
31:24
of
31:24
stocks
31:25
like
31:25
those.
31:25
You
31:25
know,
31:25
those
31:25
always
31:26
seem
31:26
like
31:26
the
31:26
big
31:26
things
31:27
that
31:27
we
31:27
hear
31:27
about
31:27
as
31:27
the
31:28
pain
31:28
points
31:28
for
31:29
E
31:29
commerce
31:30
grocery.
31:31
How
31:32
should
31:32
they
31:32
be
31:32
thinking
31:32
about
31:33
managing
31:33
the
31:33
trade
31:33
offs
31:34
around
31:34
those?
31:35
The
31:35
beautiful
31:35
thing
31:36
about
31:36
moving
31:36
into
31:36
automation
31:37
is
31:38
you
31:38
control
31:38
almost
31:39
100%
31:39
of
31:39
your
31:39
stock.
31:40
If
31:40
you,
31:40
if
31:40
you
31:40
got,
31:41
if
31:41
you've
31:42
got
31:42
product
31:42
on
31:42
a
31:43
shelf,
31:45
you're
31:45
competing
31:46
with
31:46
your
31:46
customer.
31:47
Even
31:47
if
31:47
the
31:47
system
31:48
says
31:48
it's
31:48
there,
31:48
the
31:49
customer
31:49
might
31:49
have
31:49
picked
31:49
it
31:49
up
31:49
and
31:50
put
31:50
it
31:50
in
31:50
the
31:50
next
31:50
aisle.
31:51
The
31:51
more
31:51
you
31:52
can
31:52
move
31:52
into
31:52
a
31:53
controlled
31:53
environment.
31:54
So,
31:54
and
31:55
I
31:55
think
31:55
you
31:55
do
31:55
need
31:55
to
31:56
have
31:56
the
31:56
supply
31:56
chain
31:56
segregated
31:57
so
31:57
the
31:57
product's
31:58
coming
31:58
in
31:58
separately
31:59
because
31:59
you
31:59
don't
31:59
want
32:00
to
32:00
go
32:00
onto
32:00
a
32:00
shelf.
32:00
And
32:01
then
32:01
also
32:01
somebody
32:02
or
32:02
somebody
32:03
at
32:03
the
32:03
back
32:03
of
32:03
store
32:03
trying
32:03
to
32:04
manually
32:04
split
32:04
the
32:04
product.
32:06
But
32:06
if
32:06
you
32:06
can
32:06
do
32:06
that,
32:07
you
32:07
know
32:07
exactly
32:07
what
32:08
goes
32:08
into
32:08
it,
32:09
you
32:09
know
32:09
exactly
32:09
what
32:10
comes
32:10
out
32:10
of
32:10
it.
32:11
You
32:11
end
32:12
up
32:12
with
32:12
very,
32:12
very
32:13
low
32:13
out
32:13
of
32:13
stock
32:14
and
32:14
very
32:14
low
32:14
substitutions.
32:15
The
32:15
worst
32:16
you
32:16
get
32:16
frankly
32:17
is
32:17
when
32:17
a
32:17
supplier
32:17
lets
32:18
you
32:18
down
32:18
in
32:18
terms
32:19
of
32:20
the
32:20
product
32:20
not
32:21
arriving.
32:21
But
32:21
even
32:22
then
32:22
you
32:23
know
32:23
it's
32:23
happening.
32:24
You
32:24
actually
32:25
know
32:25
about
32:25
it
32:25
and
32:27
it's
32:27
not
32:28
by
32:28
surprise.
32:30
And
32:31
when
32:31
you
32:31
then
32:32
are
32:33
doing
32:33
same
32:33
day
32:33
delivery,
32:36
you're
32:36
not
32:36
really
32:36
worried
32:37
about
32:37
did
32:37
the
32:37
supplier
32:38
turn
32:38
up?
32:38
Because
32:38
actually
32:39
typically
32:39
the
32:39
supplier
32:39
did
32:40
or
32:40
didn't
32:40
turn
32:40
up
32:40
in
32:40
the
32:40
morning,
32:41
therefore
32:41
the
32:41
product
32:42
is
32:42
or
32:42
isn't
32:42
available
32:43
for
32:43
delivery
32:43
in
32:44
three
32:44
hours
32:44
time.
32:45
So
32:45
if
32:46
you
32:46
can
32:46
get
32:46
this
32:46
right,
32:47
actually
32:47
in
32:47
our
32:48
experience,
32:48
you
32:48
can
32:49
drive
32:49
that
32:49
problem
32:50
down
32:50
to
32:50
being
32:50
very,
32:50
very
32:51
low.
32:51
Yeah.
32:52
And
32:52
that
32:52
actually
32:52
just
32:52
happened
32:53
to
32:53
me
32:53
where
32:53
I
32:53
got
32:53
a
32:53
cancellation
32:54
on
32:54
order
32:54
same
32:54
day
32:55
from
32:55
a
32:55
store
32:55
pick.
32:56
I
32:56
won't
32:56
name
32:56
the
32:57
retailer,
32:57
but
32:57
yeah,
32:57
it
32:57
was
32:57
very,
32:58
very
32:58
frustrating.
32:59
And
32:59
it's
32:59
not
32:59
theory,
33:00
it's
33:00
proven
33:01
because
33:01
warehouses
33:01
run
33:02
at
33:03
inventory
33:04
accuracy
33:04
than
33:04
stores
33:05
do
33:05
for
33:05
all
33:05
the
33:05
reasons
33:05
you
33:06
just
33:06
described.
33:07
Yeah.
33:07
And
33:08
we've
33:08
got,
33:08
we
33:09
have
33:10
99.5%
33:11
availability.
33:13
It
33:13
is
33:13
doable.
33:14
I
33:14
know
33:14
this
33:15
is
33:15
not
33:15
rocket
33:15
science.
33:15
This
33:16
is
33:16
not
33:16
because
33:16
we're
33:16
geniuses.
33:18
It
33:18
is
33:18
because
33:19
it
33:19
is
33:20
just
33:20
easier
33:20
doing
33:20
it
33:21
like
33:21
this
33:21
when
33:21
you've
33:21
got
33:21
segregated
33:22
inventory.
33:23
Right,
33:23
right.
33:24
100%.
33:24
So
33:24
that's
33:25
how
33:25
you
33:25
have
33:25
to.
33:25
Segregated
33:26
inventory
33:26
is
33:26
a
33:26
key
33:26
piece
33:27
of
33:27
this
33:27
too,
33:28
which
33:28
we
33:28
kind
33:28
of
33:28
dance
33:29
around,
33:29
you
33:29
know,
33:30
probably
33:30
10
33:30
or
33:30
15
33:30
minutes
33:31
ago.
33:31
But
33:31
that's
33:31
good
33:31
to
33:31
call
33:32
out
33:32
now
33:32
as
33:32
a
33:32
piece
33:33
of
33:33
this.
33:34
All
33:34
right,
33:34
so
33:35
last
33:36
question
33:36
on
33:36
this
33:36
topic
33:37
before
33:37
we
33:37
move
33:37
on.
33:38
I'm,
33:38
you
33:38
know,
33:40
slot
33:41
management
33:41
and
33:41
customer
33:42
behavior
33:42
shaping.
33:43
Like,
33:43
I
33:43
feel
33:43
like
33:43
in
33:43
the,
33:44
particularly
33:44
overseas,
33:46
there's
33:46
more,
33:47
there's
33:48
more
33:48
attempts
33:49
or
33:49
more
33:49
success
33:50
at
33:51
potentially
33:51
doing
33:52
both
33:52
of
33:52
those
33:52
things.
33:53
Can
33:53
you
33:54
actually
33:54
influence
33:54
when
33:55
customers
33:55
want
33:56
their
33:56
grocery,
33:57
do
33:57
their
33:57
groceries
33:57
delivered
33:58
to
33:58
them
33:58
too?
33:58
And,
33:59
and
33:59
if
33:59
so,
34:00
does
34:00
that
34:00
actually
34:00
move
34:00
the
34:01
profitability
34:01
needle
34:02
as
34:02
well?
34:02
Richard,
34:02
like,
34:03
is
34:03
that
34:03
something
34:04
that
34:04
the
34:04
US
34:05
Grocer
34:05
should
34:05
be
34:05
thinking
34:05
about
34:05
or
34:06
should
34:06
they
34:06
just
34:06
be
34:06
like,
34:06
no,
34:06
we
34:07
just
34:07
got
34:07
to
34:07
get
34:07
the
34:07
same
34:07
day?
34:08
Like,
34:08
how
34:09
do
34:09
you
34:09
think
34:09
about
34:09
that?
34:09
I
34:09
think,
34:10
I
34:10
think
34:10
you
34:11
end
34:11
up,
34:11
this
34:11
is,
34:11
you
34:12
end
34:12
up
34:12
with
34:12
quite
34:13
heated
34:13
debates
34:13
on
34:14
this
34:14
topic.
34:14
Okay.
34:16
You
34:16
know,
34:16
at
34:17
Roelic,
34:17
we
34:18
offer
34:18
basically
34:18
an
34:19
unconstrained
34:19
customer
34:20
offer.
34:21
So
34:21
we
34:21
are,
34:21
we
34:21
are
34:21
basically
34:23
making
34:23
sure
34:23
that
34:23
you
34:23
will
34:24
almost
34:24
always
34:25
be
34:25
able
34:25
to
34:26
find
34:26
a
34:26
slot
34:27
in
34:27
the
34:28
next
34:28
few
34:28
hours
34:28
when
34:28
you
34:29
place
34:29
your
34:29
order.
34:30
And
34:30
that
34:30
for
34:30
us
34:30
is
34:31
an
34:31
article
34:31
of
34:31
faith
34:31
that
34:32
we
34:32
just
34:32
say
34:32
we
34:33
want
34:33
to
34:33
be
34:33
offering
34:34
our
34:34
customers
34:36
that
34:36
high
34:36
degree
34:36
of
34:37
availability
34:37
because
34:37
we
34:38
don't
34:38
want
34:38
them
34:38
ever
34:38
to
34:39
go
34:39
elsewhere.
34:40
And
34:41
that's
34:41
one
34:41
of
34:41
the
34:41
reasons
34:41
we've
34:42
grown
34:42
our
34:42
business
34:42
so
34:43
successfully
34:43
is
34:43
because
34:44
we
34:44
just
34:44
offer
34:44
that
34:44
level
34:44
of
34:45
convenience.
34:47
You
34:48
absolutely
34:48
can
34:50
start
34:50
managing
34:50
slots
34:52
and
34:52
you
34:53
absolutely,
34:53
you
34:53
know,
34:53
there's
34:54
lots
34:54
of
34:54
examples
34:54
of
34:55
people
34:55
out
34:55
there
34:55
who
34:56
will
34:56
price
34:56
differently
34:57
to
34:58
drive
34:58
people
34:58
away
34:59
from,
34:59
away
35:00
from
35:00
a
35:00
Saturday
35:00
order
35:01
and
35:01
to
35:01
make
35:02
sure
35:02
that
35:02
you
35:02
are
35:02
filling
35:02
up
35:03
the
35:03
Wednesday
35:03
afternoon
35:04
orders.
35:05
And
35:05
I
35:05
think
35:06
that
35:06
absolutely
35:07
can
35:07
work
35:07
and
35:07
you
35:08
absolutely
35:08
can
35:08
do
35:09
that.
35:09
I'd
35:09
say
35:10
it's
35:10
actually
35:10
kind
35:11
of
35:11
one
35:11
of
35:12
the
35:12
Things
35:12
that
35:12
I
35:12
see
35:13
has
35:13
gone
35:13
wrong
35:14
quite
35:14
a
35:14
lot
35:15
in
35:16
e
35:16
grocery
35:17
is
35:17
because
35:18
what
35:18
you
35:18
haven't
35:18
done
35:18
is
35:19
the
35:19
guys
35:19
who
35:19
are
35:19
doing
35:19
that
35:20
don't
35:21
always
35:21
talk
35:21
to
35:21
the
35:21
supply
35:22
chain
35:22
teams,
35:23
don't
35:23
always
35:23
talk
35:24
to
35:24
the
35:24
merchants.
35:25
So
35:25
you
35:25
end
35:25
up
35:26
with
35:26
enormous
35:26
peaks
35:27
coming
35:28
at
35:28
a
35:28
time
35:28
when
35:29
the
35:29
supply
35:29
chain
35:29
team
35:30
is
35:30
running
35:30
the
35:30
FC
35:31
or
35:31
the
35:31
store
35:32
pick
35:32
doesn't
35:32
know
35:32
it's
35:32
coming.
35:35
Let's
35:35
be
35:36
candid.
35:36
If
35:36
in
35:36
a
35:37
store
35:37
you
35:38
get
35:38
20%
35:39
more
35:39
customers
35:40
than
35:40
you
35:40
expect,
35:40
you
35:41
have
35:41
a
35:41
few
35:41
queues,
35:41
but
35:42
it's
35:42
kind
35:42
of
35:42
manageable
35:43
if
35:43
you
35:44
suddenly
35:44
end
35:44
up
35:44
with
35:45
that,
35:45
you
35:45
just
35:45
max
35:45
out
35:46
and
35:46
there's
35:46
just
35:46
a.
35:46
There's
35:47
a.
35:47
You
35:47
can't
35:48
push
35:48
the
35:48
picking
35:49
any
35:49
faster
35:50
so
35:50
that
35:50
the
35:51
system
35:51
does
35:51
break
35:51
unless
35:52
you
35:52
manage
35:52
that.
35:53
Which
35:53
goes
35:53
back
35:54
to
35:54
idea.
35:54
We're
35:54
just
35:54
talking
35:54
about
35:55
like
35:55
the
35:55
idea
35:55
here
35:55
is
35:56
segregating
35:56
the
35:56
inventory,
35:57
leaving
35:57
the
35:57
store
35:58
inventory
35:58
for
35:58
those
35:59
that
35:59
are
35:59
coming
35:59
into
35:59
the
36:00
store
36:00
to
36:00
purchase.
36:01
Segregating
36:02
everything
36:02
out
36:02
to
36:02
give
36:03
you
36:03
still
36:03
the
36:03
flexibility
36:04
to
36:04
demand
36:04
shape
36:05
if
36:05
you
36:05
want.
36:05
If
36:06
that's
36:06
part
36:06
of
36:06
your
36:06
business
36:06
model,
36:07
you
36:07
can.
36:07
But
36:07
it'll
36:07
make
36:07
it
36:08
more
36:08
efficient
36:08
too.
36:09
Exactly.
36:10
And
36:10
I
36:10
think
36:10
this
36:10
is
36:10
the
36:10
whole
36:11
theme.
36:11
When
36:11
you
36:11
start
36:12
talk
36:12
about
36:13
how
36:13
you
36:14
think
36:14
about
36:14
kind
36:14
of
36:14
setting
36:15
up
36:15
your
36:15
E
36:15
comm,
36:16
you've
36:16
got
36:16
to
36:16
actually
36:17
make
36:17
sure
36:17
that
36:17
you
36:17
are
36:17
being
36:18
joined
36:18
up
36:19
because
36:19
actually
36:19
the
36:19
system
36:20
is
36:20
less
36:20
forgiving
36:21
when
36:21
you
36:21
aren't
36:21
joined
36:22
up,
36:23
I
36:23
think
36:23
than
36:23
stores
36:24
are.
36:24
All
36:25
right,
36:25
so
36:25
let's
36:26
shift
36:26
gears
36:26
a
36:26
little
36:26
bit
36:26
now.
36:27
So
36:27
there
36:28
are
36:28
ways
36:28
to
36:28
monetize
36:29
E
36:29
commerce
36:30
beyond
36:30
just
36:31
the
36:31
selling
36:31
of
36:31
groceries
36:32
too.
36:33
And
36:33
specifically
36:34
I
36:34
think
36:34
about
36:34
membership
36:34
models.
36:35
So
36:35
I'm
36:35
going
36:35
to
36:35
put
36:35
you
36:35
on
36:35
the
36:35
spot
36:36
a
36:36
little
36:36
bit
36:36
with
36:36
this
36:36
question.
36:36
So
36:37
you've
36:37
got
36:37
things
36:37
like,
36:38
you
36:38
know,
36:38
for
36:38
everyone
36:38
knows
36:39
them
36:39
but
36:39
Walmart
36:39
plus
36:40
Amazon
36:40
prime,
36:41
they
36:41
essentially
36:42
are
36:42
helping,
36:42
you
36:43
know,
36:43
with
36:43
the
36:43
profitability
36:44
question
36:44
because
36:45
customers
36:45
are
36:45
prepaying
36:46
for
36:46
the
36:47
convenience
36:47
that
36:47
the
36:48
retailers
36:48
provide
36:48
them
36:49
with
36:49
these
36:49
membership
36:49
programs.
36:50
So
36:51
let
36:51
me
36:51
ask
36:51
you,
36:51
should
36:52
every
36:52
retailer
36:52
have
36:53
a
36:53
membership
36:54
program?
36:56
I
36:56
kind
36:57
of
36:57
think
36:57
the
36:57
answer
36:57
is
36:57
yes.
36:58
I'm
36:58
honest,
36:58
I'm
36:59
honestly
36:59
a
36:59
big
36:59
fan
36:59
of
37:00
them.
37:01
And
37:01
I
37:02
think
37:02
there's
37:02
a
37:03
one
37:03
is
37:03
just
37:04
the
37:04
response.
37:04
And
37:04
I've
37:05
seen
37:05
this
37:05
in
37:05
a
37:05
few
37:05
places,
37:06
including
37:06
Roelic.
37:07
The
37:07
response
37:07
you
37:08
get
37:08
in
37:08
terms
37:09
of
37:09
frequency
37:10
of
37:10
shop
37:11
and
37:11
loyalty
37:11
is
37:12
just
37:12
huge.
37:14
The
37:14
Pareto
37:15
curve
37:15
we
37:15
see
37:16
of
37:16
just
37:16
people
37:16
who
37:17
you
37:17
end
37:17
up
37:17
with
37:18
driving
37:19
people
37:19
from
37:20
being
37:20
marginal
37:20
customers
37:21
to
37:22
being
37:22
loyal
37:22
customers
37:23
because
37:23
they've
37:23
already
37:24
paid
37:24
for
37:24
their
37:24
deliveries
37:25
in
37:25
their
37:25
mind
37:25
and
37:26
therefore
37:26
that
37:26
extra
37:26
delivery
37:27
is
37:27
free.
37:28
And
37:28
I
37:28
think
37:29
the
37:29
second
37:29
point
37:29
is
37:30
really
37:30
interesting
37:30
though.
37:30
Because
37:31
as
37:31
soon
37:31
as
37:31
you
37:31
start
37:32
to
37:32
kind
37:32
of
37:32
own
37:32
a
37:32
customer
37:33
much
37:33
more,
37:34
you
37:34
can
37:34
understand
37:35
their
37:35
behavior.
37:36
And
37:37
guess
37:37
what,
37:37
in
37:38
terms
37:38
of
37:38
selling
37:38
advertising,
37:39
that
37:39
advertising
37:40
becomes
37:40
a
37:40
lot
37:40
more
37:40
valuable.
37:42
So
37:42
suddenly
37:43
you
37:43
are
37:43
no
37:44
longer
37:44
just
37:44
a
37:44
box
37:45
shifter.
37:45
You've
37:46
actually
37:46
become
37:46
the
37:46
person
37:47
who
37:47
understands
37:48
the
37:48
customer
37:48
behavior.
37:49
And
37:49
when
37:49
you're
37:50
talking
37:50
to
37:50
Procter
37:50
and
37:51
Gamble,
37:51
that
37:52
becomes
37:52
a
37:52
really
37:52
valuable
37:53
asset
37:53
you've
37:53
got.
37:54
Yeah,
37:55
well,
37:55
that's
37:55
funny.
37:56
I
37:56
was
37:56
going
37:56
to
37:56
ask
37:56
you
37:57
next.
37:57
I
37:57
mean,
37:57
at
37:58
what
37:58
scale
37:58
does,
37:59
does
38:00
that
38:00
retail
38:00
media
38:01
play
38:01
then
38:02
particularly
38:02
become
38:03
important
38:03
when
38:03
you
38:04
start
38:04
talking
38:04
about
38:04
E
38:04
commerce
38:05
profitability?
38:05
I
38:06
don't
38:06
know
38:06
the
38:06
answer,
38:06
how
38:07
low
38:07
you
38:07
can
38:07
go.
38:08
I
38:08
would
38:08
say
38:10
we
38:10
roe
38:11
link
38:11
operate
38:12
in
38:12
a
38:12
pretty
38:12
challenging
38:13
way
38:13
as
38:13
in
38:14
we
38:14
have
38:14
five
38:14
different
38:15
countries
38:16
for
38:16
our
38:16
2
38:16
billion
38:17
of
38:17
sales
38:18
and
38:18
we
38:18
do
38:19
a
38:19
good
38:19
retail
38:20
media
38:20
business
38:20
in
38:21
each
38:21
of
38:21
those
38:22
because
38:22
we
38:22
understand
38:22
the
38:23
customer
38:23
behavior.
38:25
Now
38:26
clearly
38:27
there
38:27
are
38:27
some
38:27
benefits
38:28
of
38:28
scale,
38:28
but
38:29
I
38:29
think
38:30
it
38:30
is
38:30
not
38:31
the
38:31
case
38:31
that
38:31
you
38:32
can't
38:32
do
38:32
this
38:32
when
38:33
you're
38:33
at
38:34
300
38:34
million.
38:35
Actually,
38:35
I
38:35
think
38:36
you
38:36
can
38:37
because
38:37
I
38:37
think
38:37
that
38:38
ability
38:38
to
38:39
understand
38:40
and
38:40
really
38:41
offer
38:41
advertising
38:42
to
38:42
a
38:42
customer
38:42
at
38:43
critical
38:43
points
38:44
in
38:44
a
38:44
customer's
38:45
decision
38:45
making
38:46
process
38:46
I
38:47
think
38:47
is
38:47
super
38:47
valuable.
38:49
How
38:49
too
38:49
does
38:50
private
38:50
label
38:50
play
38:51
into
38:51
this,
38:51
Richard?
38:52
You
38:52
know,
38:52
it's
38:52
part
38:53
of
38:53
the,
38:53
it's
38:53
part
38:53
of
38:53
the
38:53
merchandising
38:54
question.
38:54
It's
38:54
part
38:55
of
38:55
the,
38:56
it
38:56
is
38:56
part
38:56
of
38:56
the
38:56
margin
38:57
question.
39:00
I'm
39:00
a
39:00
big
39:00
fan
39:00
of
39:00
private
39:01
label,
39:01
but
39:01
then
39:01
again,
39:02
I
39:02
was
39:02
brought
39:02
up
39:03
in
39:03
UK
39:03
grocery,
39:04
which
39:04
kind
39:04
of,
39:04
kind
39:05
of,
39:05
kind
39:05
of
39:05
pioneered
39:06
a
39:06
lot
39:06
of
39:06
this.
39:08
You
39:08
know,
39:08
we
39:08
no
39:08
longer
39:08
see
39:09
it
39:09
as
39:09
the
39:09
cheap
39:09
substitute.
39:11
So
39:12
I'm
39:12
a
39:12
big
39:12
fan
39:13
of
39:13
it.
39:13
I
39:14
think,
39:14
you
39:14
know,
39:14
you
39:14
require
39:15
scale
39:15
to
39:15
deliver
39:15
it.
39:16
It
39:16
takes
39:16
time
39:17
to
39:17
develop
39:17
it.
39:18
But
39:19
if
39:19
you
39:19
can
39:19
get
39:19
it
39:20
right,
39:20
it's
39:20
a
39:20
big
39:20
margin
39:21
driver
39:22
and
39:22
also
39:23
can
39:23
then
39:23
become
39:23
a
39:24
loyalty
39:24
driver
39:24
as
39:24
well
39:25
because
39:25
you
39:25
own
39:25
those
39:26
products
39:26
nobody
39:26
else
39:27
can.
39:28
Right,
39:28
yeah.
39:28
It
39:29
kind
39:29
of
39:29
plays
39:29
back
39:29
in
39:29
what
39:29
you're
39:30
saying,
39:30
like
39:30
why
39:30
you're
39:30
kind
39:30
of
39:30
a
39:31
big
39:31
proponent
39:31
of
39:31
membership
39:32
models
39:32
too,
39:32
because
39:32
you
39:33
get
39:33
to
39:33
know
39:33
the
39:33
customer,
39:34
you
39:34
can
39:34
then
39:34
serve
39:35
up
39:35
the
39:35
items
39:35
to
39:35
the
39:35
customer
39:36
that
39:36
you
39:36
want
39:36
and
39:36
then
39:37
get
39:37
the
39:37
retail
39:37
media
39:37
dollars.
39:38
But
39:38
also
39:38
you
39:38
can
39:38
serve
39:38
them
39:39
up
39:39
the
39:39
items
39:40
that
39:40
are
39:40
uniquely
39:41
yours,
39:41
which
39:42
is
39:42
also
39:42
an
39:43
important
39:43
factor
39:43
on
39:43
why
39:44
they
39:44
choose
39:44
to
39:44
shop
39:44
with
39:45
you.
39:45
Absolutely.
39:46
Right.
39:46
If
39:47
you
39:47
love
39:48
that
39:49
brand
39:49
of
39:49
noodles
39:50
or
39:50
that
39:51
you're
39:51
not
39:51
going
39:51
to
39:51
change
39:53
or
39:53
it's
39:53
a
39:54
real
39:54
friction
39:55
point
39:55
for
39:55
you
39:55
trying
39:55
to
39:55
change.
39:56
Right,
39:56
right.
39:57
Okay,
39:57
so
39:57
we've
39:57
covered
39:58
bananas,
39:58
we've
39:58
covered
39:58
noodles.
40:01
Yeah,
40:02
right,
40:02
right.
40:02
I
40:02
think
40:02
I
40:03
do,
40:03
yeah.
40:04
Very
40:05
Very
40:05
high
40:05
in
40:05
starch.
40:08
All
40:08
right,
40:08
all
40:09
right.
40:09
So
40:09
let's
40:09
rewind
40:09
a
40:09
little
40:09
bit.
40:10
So
40:10
you
40:10
know,
40:10
just
40:10
to
40:10
give
40:11
a
40:11
lay
40:11
the
40:11
landscape
40:11
for
40:12
everyone
40:12
listening.
40:12
That's
40:13
still
40:13
with
40:13
us.
40:13
So
40:13
we've
40:13
covered
40:13
the,
40:14
we've
40:14
covered
40:14
the
40:14
general
40:14
costs
40:15
that
40:15
are
40:15
involved
40:15
here.
40:16
We've
40:16
covered
40:16
some
40:16
of
40:16
the
40:17
infrastructural
40:17
questions,
40:18
we've
40:18
covered
40:18
some
40:19
of
40:19
the
40:19
operational
40:19
dynamics
40:20
that
40:20
go
40:20
into
40:20
thinking
40:21
about
40:21
this
40:21
question.
40:21
We've
40:22
also
40:22
covered
40:22
the
40:23
E
40:23
commerce
40:24
side
40:24
from
40:24
the
40:24
revenue
40:25
generating
40:25
side
40:25
because
40:26
it's
40:26
not
40:26
all
40:26
about
40:26
eliminating
40:27
costs,
40:27
it's
40:27
not
40:27
all
40:27
about
40:27
efficiency.
40:28
There
40:28
are
40:28
revenue
40:30
gains
40:30
that
40:30
can
40:30
be
40:30
made
40:31
here
40:31
too,
40:31
which
40:31
we
40:32
just
40:32
touched
40:32
on.
40:33
So
40:33
now
40:34
I
40:34
want
40:34
to
40:34
talk
40:34
about
40:35
the
40:35
organizational
40:36
side
40:36
of
40:37
the
40:37
E
40:37
commerce
40:38
question
40:38
of
40:39
profitability
40:40
because
40:40
like
40:40
you,
40:41
you
40:41
actually
40:41
mentioned
40:42
it
40:42
already
40:43
to
40:43
a
40:43
degree.
40:43
But
40:43
let's
40:43
go
40:44
deeper
40:44
into
40:44
it.
40:44
Like
40:45
you
40:45
know,
40:45
organizational,
40:47
you
40:48
know,
40:48
organizational
40:48
dysfunction,
40:49
for
40:49
lack
40:49
of
40:49
a
40:50
better
40:50
word,
40:50
can
40:50
have
40:50
an
40:51
impact
40:51
on
40:51
this.
40:51
And
40:51
I've
40:52
seen
40:52
this
40:52
happen
40:52
at
40:52
retailers,
40:53
particularly
40:54
over,
40:54
you
40:54
know,
40:54
my
40:55
almost
40:55
30
40:55
year
40:56
career.
40:56
So
40:57
what
40:57
are
40:57
the
40:57
organizational
40:58
barriers
40:58
that
40:59
you
40:59
think
40:59
prevent
41:00
grocers
41:01
from
41:01
building
41:01
profitable
41:02
E
41:02
commerce
41:03
operations?
41:04
I
41:04
think
41:05
that
41:05
I've
41:05
seen,
41:06
like
41:06
you,
41:06
I've
41:07
seen
41:07
this
41:07
happen
41:07
many
41:07
times
41:08
and
41:08
it's
41:08
almost
41:09
quite
41:09
sad.
41:09
There's
41:10
one
41:10
example
41:10
I
41:10
can
41:11
think
41:11
of
41:11
where
41:12
the
41:12
marketing
41:13
was
41:14
not
41:14
owned
41:14
by
41:14
the
41:14
E
41:14
commerce
41:15
business
41:16
and
41:16
they'd
41:17
have
41:17
this
41:17
difficult
41:18
conversation
41:18
saying
41:19
the
41:19
marketing
41:19
team
41:19
would
41:19
say,
41:20
oh,
41:20
but
41:20
you're
41:20
less
41:20
profitable
41:21
than
41:21
the
41:21
stores
41:23
so
41:24
we're
41:24
not
41:24
going
41:24
to
41:24
give
41:24
you
41:24
any
41:24
marketing
41:25
budget.
41:26
Guess
41:26
what,
41:27
they
41:27
never
41:27
grew.
41:28
And
41:28
then
41:29
as
41:29
a
41:29
result
41:29
you
41:30
ended
41:30
up
41:30
in
41:30
this
41:30
vicious
41:31
circle
41:31
which
41:32
you
41:32
couldn't
41:33
start
41:33
to
41:33
become
41:34
efficient
41:34
because
41:35
you
41:35
weren't
41:35
growing.
41:36
So
41:37
in
41:38
my
41:38
mind,
41:38
you
41:38
need
41:38
to
41:38
set
41:39
this
41:39
up
41:39
as,
41:40
as
41:40
a
41:40
business
41:41
in
41:41
its
41:42
own
41:42
right.
41:43
Oh,
41:44
interesting.
41:44
Okay.
41:45
And
41:45
I
41:45
think,
41:45
you
41:45
know,
41:45
you
41:46
do,
41:46
I
41:46
do
41:46
think
41:47
you
41:47
need
41:47
to
41:47
say,
41:48
you
41:48
know,
41:48
the
41:49
commercial
41:49
teams,
41:50
the
41:51
people
41:51
who
41:51
run
41:52
the
41:52
fulfillment
41:54
need
41:54
to
41:55
be
41:55
thinking,
41:55
need
41:55
to
41:56
be
41:56
thinking
41:56
in
41:56
a
41:56
joined
41:56
up
41:57
way.
41:58
And
41:58
it's
41:59
the
41:59
earlier
41:59
example,
42:00
you
42:00
know,
42:00
if
42:00
you
42:00
suddenly
42:01
dump
42:01
in
42:02
unpredictable
42:04
third
42:04
party
42:05
orders
42:06
but
42:06
the
42:06
supply
42:07
chain
42:07
team
42:07
or
42:07
the
42:07
team
42:08
is
42:08
running
42:08
the
42:08
fulfillment
42:09
centers
42:09
or
42:09
the
42:09
running
42:10
the
42:10
fulfillment
42:10
in
42:10
the
42:10
last
42:11
mile,
42:11
don't
42:11
know
42:11
about
42:11
it,
42:12
you've
42:13
just
42:13
got
42:13
no
42:13
hope.
42:14
Or
42:15
they
42:15
will
42:15
just
42:16
staff
42:16
it
42:16
up
42:17
to
42:17
the
42:17
entire
42:17
day
42:18
as
42:18
if
42:19
the
42:19
entire
42:19
day
42:20
to
42:20
that
42:20
peak
42:21
and
42:21
you
42:21
end
42:21
up,
42:22
yes,
42:22
maxing
42:23
out
42:23
at
42:24
some
42:24
points
42:25
but
42:25
then
42:26
running
42:26
at
42:26
20%
42:27
utilization
42:27
for
42:27
the
42:28
other
42:28
times.
42:30
So
42:30
you
42:31
do
42:31
need
42:31
to
42:32
think
42:32
about,
42:34
everybody
42:35
needs
42:35
to
42:35
think
42:35
about
42:36
the
42:36
demand
42:37
and
42:37
the
42:37
customer
42:38
profile
42:38
in
42:38
the
42:38
same
42:39
way
42:40
so
42:40
to
42:41
me,
42:41
that
42:41
is
42:41
absolutely
42:42
bloody
42:42
critical.
42:43
Wow,
42:44
okay,
42:44
so
42:44
you
42:44
just
42:44
hit
42:45
me
42:45
over
42:45
the
42:45
head
42:45
with
42:45
a
42:45
hammer
42:46
on
42:46
that
42:46
one.
42:46
Actually,
42:47
that
42:47
was
42:47
not
42:47
something
42:48
I
42:48
expected
42:48
to
42:49
hear
42:49
or
42:49
to
42:49
talk
42:49
about.
42:51
And
42:51
it
42:52
quite
42:52
frankly
42:53
flies
42:53
in
42:53
the
42:53
face
42:53
of
42:53
how,
42:54
at
42:55
least,
42:55
particularly
42:55
in
42:55
the
42:55
US
42:55
Most
42:56
people
42:56
are
42:56
organizing
42:57
themselves
42:57
because
42:57
they're
42:57
organizing
42:58
themselves
42:58
around
42:58
the
42:59
omnichannel
42:59
idea.
43:00
But
43:00
as
43:00
I
43:01
heard
43:01
you
43:01
talk
43:01
about
43:01
it,
43:02
I'm
43:02
kind
43:02
of
43:02
like,
43:03
yeah,
43:03
if
43:03
you're
43:03
really.
43:04
And
43:05
I
43:05
think
43:05
this
43:05
may
43:05
be
43:05
unique
43:06
to
43:06
groceries.
43:06
So
43:07
I'm
43:07
curious
43:07
about
43:07
your
43:07
perspective
43:08
on
43:08
that.
43:09
When
43:10
I
43:10
hear
43:10
you
43:10
talk,
43:10
I'm
43:10
like,
43:11
yeah,
43:11
grocery,
43:12
though,
43:12
grocery
43:12
is
43:12
a
43:12
different
43:13
beast.
43:14
You
43:14
probably
43:15
do
43:15
need
43:15
to
43:15
separate
43:16
this
43:16
out
43:16
as
43:16
a
43:17
standalone
43:17
operating
43:18
model.
43:18
And
43:18
Chris,
43:19
I'm
43:19
a
43:19
big
43:19
fan
43:19
of
43:19
Omnichannel,
43:20
but
43:20
I
43:20
think
43:20
what
43:21
we've
43:21
also
43:21
got
43:21
to
43:21
say
43:21
is,
43:23
what
43:23
does
43:23
that
43:23
mean?
43:23
I
43:24
think
43:24
the
43:24
customer
43:25
needs
43:25
to
43:25
be
43:25
owned
43:25
centrally.
43:26
So
43:27
talk
43:28
about
43:28
loyalty.
43:28
Loyalty
43:29
needs
43:29
to
43:29
be
43:29
owned
43:29
centrally.
43:30
There's
43:30
no.
43:31
That's
43:31
possibly
43:32
if
43:32
you're
43:32
just
43:32
doing
43:32
it
43:33
in
43:33
one
43:33
channel.
43:34
So
43:34
the
43:35
ability
43:35
to
43:35
kind
43:35
of
43:35
offer
43:36
customers
43:36
incentives
43:37
across
43:37
the
43:37
channels,
43:38
central
43:39
ownership
43:40
of
43:40
data,
43:41
central
43:42
ownership
43:42
of
43:42
suppliers,
43:44
buying
43:44
central.
43:46
But
43:46
you
43:46
still
43:46
need
43:47
commercial
43:48
teams
43:48
because
43:48
we
43:48
talked
43:49
about
43:49
earlier
43:49
that
43:50
you
43:50
might
43:51
want
43:51
to
43:51
change
43:51
the
43:51
ranges.
43:52
You
43:52
certainly
43:52
want
43:53
to
43:53
change
43:53
some
43:53
of
43:53
the
43:53
promotional.
43:54
On
43:54
my
43:55
view,
43:55
there's
43:55
a
43:55
good
43:55
opportunity
43:56
to
43:56
change
43:56
some
43:56
of
43:56
the
43:57
promotions,
43:58
the
43:59
marketing
44:00
you
44:00
need
44:00
to
44:00
be
44:00
thinking
44:00
about
44:01
in
44:01
a
44:01
joint
44:02
because
44:02
otherwise
44:03
you're
44:03
just
44:03
going
44:03
to
44:03
end
44:03
up
44:04
with
44:04
demand
44:04
that
44:05
the
44:05
guys
44:05
in
44:05
the
44:06
fulfillment
44:06
central,
44:07
the
44:07
stores
44:07
can't
44:07
fulfill.
44:09
So
44:09
you
44:09
do
44:09
need
44:09
that
44:10
kind
44:10
of
44:10
vertical
44:11
from
44:12
commercial
44:12
marketing
44:13
operations
44:15
that
44:15
I
44:15
think
44:15
all
44:16
sits
44:16
in
44:16
this
44:17
kind
44:17
of
44:17
ecom
44:18
vertical.
44:19
Yeah.
44:20
And
44:20
then
44:20
the
44:20
other
44:20
part
44:20
is
44:20
the
44:21
incentives
44:21
too,
44:21
right?
44:22
Like,
44:22
actually,
44:23
as
44:23
you're
44:23
talking,
44:24
I
44:24
think
44:24
you're
44:25
right.
44:26
This
44:26
is
44:26
what
44:26
you
44:26
have
44:27
to
44:27
do.
44:28
But
44:28
you
44:28
also
44:28
got
44:29
to
44:29
think
44:29
about
44:29
the
44:29
incentives
44:29
on
44:30
the
44:30
store
44:30
side
44:30
because
44:30
like,
44:31
the
44:31
one
44:31
complaint
44:31
I
44:31
always
44:31
hear
44:32
is,
44:32
you
44:32
know,
44:32
this.
44:33
The
44:33
digital
44:33
stealing
44:34
my
44:34
sales
44:34
in
44:34
my
44:34
store.
44:35
You
44:35
put
44:35
this
44:35
new
44:35
fulfillment
44:36
center
44:36
in
44:36
and
44:36
like,
44:37
now
44:37
I'm
44:37
not
44:37
selling
44:37
anything.
44:38
You've
44:38
got
44:39
to
44:39
think
44:39
about
44:39
that.
44:40
I
44:40
totally
44:40
agree.
44:41
And
44:41
I
44:41
think
44:41
you
44:41
can't.
44:42
You've
44:42
got
44:42
to
44:42
make
44:42
sure
44:42
whatever
44:43
the
44:43
store
44:43
is
44:43
incentivized
44:44
on,
44:44
whatever
44:45
KPIs
44:45
the
44:45
store
44:46
manager
44:46
gets,
44:47
he
44:47
is
44:47
not
44:48
hurt
44:48
by
44:49
having.
44:49
If
44:49
you're
44:50
doing
44:51
E
44:51
Comm
44:51
sales
44:51
out
44:52
of
44:52
his
44:52
store,
44:52
he's
44:53
not
44:53
hurt
44:53
by
44:53
that.
44:54
And
44:54
even
44:54
frankly,
44:55
if
44:55
you
44:55
choose
44:55
to,
44:56
if
44:56
his
44:56
customers
44:57
are
44:57
doing
44:57
E
44:57
comm,
44:58
he
44:58
probably
44:58
should
44:58
get
44:59
some
44:59
credit
44:59
because
44:59
you
45:00
probably
45:00
do
45:00
want
45:00
to
45:00
be
45:00
advertising
45:01
both
45:01
Channels
45:02
in
45:02
both.
45:02
Is
45:03
this
45:03
an
45:03
organizational
45:04
structure
45:04
that
45:04
is
45:05
unique
45:05
to
45:05
grocery?
45:06
Like,
45:07
I
45:07
kind
45:07
of
45:07
think
45:07
it
45:08
might
45:08
be.
45:09
I
45:09
think
45:10
it
45:10
might
45:10
be.
45:11
And
45:11
I
45:11
think
45:11
they
45:11
kind
45:11
of
45:11
test
45:12
the
45:12
volume.
45:12
The
45:13
challenges
45:14
of
45:15
fulfilling
45:15
grocery
45:16
are
45:16
kind
45:16
of
45:16
unique.
45:17
Yeah.
45:18
The
45:18
margin
45:18
structures
45:19
are
45:19
different
45:19
too.
45:20
Margin
45:20
structure
45:20
is
45:20
different
45:21
and,
45:22
you
45:22
know,
45:22
just.
45:23
It
45:23
is
45:23
a
45:24
much
45:24
more
45:24
difficult
45:24
thing
45:25
to
45:25
fulfill.
45:25
Well,
45:26
than
45:26
is
45:26
apparel.
45:27
Yeah.
45:28
So
45:28
I
45:28
think.
45:28
I
45:29
think
45:29
it
45:29
probably
45:29
is.
45:30
I
45:30
think
45:30
it
45:30
probably
45:30
is
45:31
unique.
45:31
I've
45:31
not
45:31
spent
45:31
a
45:31
lot
45:32
of
45:32
time
45:32
thinking
45:32
about
45:32
it,
45:32
but
45:33
yeah,
45:33
I
45:33
think
45:33
it
45:34
probably
45:34
is.
45:34
That's
45:35
a
45:35
really
45:35
great.
45:35
Wow.
45:36
God,
45:36
this
45:36
is
45:36
a.
45:37
I
45:37
might
45:37
have
45:37
to
45:37
write
45:37
an
45:38
article
45:38
about
45:38
this.
45:38
Richard,
45:39
when
45:39
I
45:39
get
45:39
off
45:39
the.
45:39
Get
45:39
off
45:40
this
45:40
podcast.
45:41
Yeah.
45:41
Do
45:42
I
45:42
get
45:42
a
45:42
reference?
45:43
I
45:43
think
45:43
you're
45:44
going
45:44
to.
45:44
Yes,
45:44
100%,
45:45
you
45:45
are,
45:46
because
45:46
you
45:46
just,
45:47
you
45:47
flipped
45:48
a
45:48
script
45:48
in
45:48
terms
45:48
of
45:49
how
45:49
I've
45:49
ever
45:49
thought
45:50
about
45:50
this
45:50
and
45:50
I
45:50
imagine
45:51
how
45:51
a
45:51
lot
45:51
of
45:51
our
45:51
listeners
45:52
have
45:52
thought
45:52
about
45:52
it
45:52
too.
45:54
All
45:54
right,
45:55
so
45:56
let's
45:56
start
45:57
wrapping
45:57
it
45:57
up
45:57
here.
45:57
So
45:59
if
45:59
a
45:59
grocer
45:59
comes
46:00
to
46:00
you
46:00
tomorrow
46:01
and
46:01
says,
46:01
like,
46:02
let's
46:02
give
46:02
an
46:02
example,
46:03
a
46:03
theoretical
46:03
we're
46:03
at
46:04
15%
46:04
E
46:04
commerce
46:05
penetration,
46:06
we're
46:06
losing
46:06
money
46:06
on
46:07
every
46:07
order.
46:08
What
46:08
should
46:08
we
46:08
do?
46:09
What's
46:09
your
46:09
answer
46:09
to
46:09
them?
46:10
Yeah,
46:10
you
46:10
need
46:11
to
46:11
understand
46:11
what
46:11
the
46:11
hell's
46:12
going
46:12
on.
46:14
If
46:14
you're
46:15
a
46:15
15%,
46:15
you
46:16
shouldn't
46:16
be
46:16
losing.
46:17
If
46:17
you're
46:17
a
46:17
decent
46:17
sized
46:18
grocer
46:18
of
46:18
15%,
46:19
you
46:19
should
46:19
be
46:20
getting
46:21
towards
46:21
making
46:21
money.
46:21
So
46:22
what
46:22
is
46:22
it
46:23
your
46:23
basket
46:23
size?
46:23
Is
46:23
it
46:24
your
46:24
fulfillment
46:24
cost?
46:24
Is
46:25
it
46:25
your
46:25
last
46:25
mile?
46:26
But
46:26
I
46:26
think
46:27
ultimately
46:28
you
46:28
need
46:28
to
46:29
be
46:29
setting
46:29
it
46:29
up
46:29
so
46:30
that
46:30
you've
46:30
got
46:30
a
46:31
customer
46:31
proposition
46:32
that
46:32
customers
46:33
will
46:33
shop
46:33
a
46:33
full
46:33
basket
46:34
and
46:34
that
46:37
we're
46:37
fulfilling
46:37
their
46:38
needs.
46:39
You
46:39
can
46:39
pick
46:40
it
46:40
efficiently
46:41
and
46:41
you
46:41
can
46:41
deliver
46:42
it
46:42
efficiently.
46:42
And
46:43
both
46:43
of
46:43
those
46:44
have
46:44
answers
46:45
around
46:45
aggregation
46:46
and
46:46
also
46:47
automation.
46:48
Are
46:49
there
46:49
grocers
46:49
in
46:49
the.
46:50
I
46:50
mean,
46:50
I
46:51
know
46:51
you'd
46:51
say
46:51
Roelic
46:52
too,
46:52
but
46:52
like,
46:53
are
46:53
there
46:53
grocers
46:54
outside
46:54
of
46:55
Roelic
46:55
in
46:55
the
46:56
US
46:56
or
46:56
Europe
46:56
or
46:57
anywhere
46:57
in
46:57
the
46:57
world
46:57
really,
46:58
that
46:58
you
46:58
think
46:58
are
46:59
getting
46:59
this
46:59
right
46:59
and
46:59
that
47:00
people
47:00
should
47:00
study?
47:01
Where
47:01
do
47:01
I
47:02
go?
47:02
I'd
47:02
say
47:03
there
47:03
are
47:03
some
47:03
interesting
47:04
models
47:04
out
47:04
there.
47:06
I've
47:07
always
47:07
got
47:07
a
47:07
little
47:07
bit
47:07
of
47:08
a
47:08
soft
47:08
spot
47:08
for
47:09
Picnic
47:09
in
47:09
the
47:10
Netherlands,
47:10
which
47:10
is
47:10
a
47:11
milk
47:11
crown
47:11
model.
47:12
Super
47:12
efficient,
47:13
very
47:13
different
47:13
model.
47:16
We
47:16
actually
47:16
compete
47:16
with
47:17
it
47:17
at
47:17
times,
47:19
but
47:19
it's
47:20
milk
47:20
crowned.
47:21
And
47:21
actually
47:22
to
47:22
my
47:22
mind,
47:22
it's
47:22
a
47:22
little
47:22
bit
47:23
like
47:23
what
47:23
Aldi
47:24
offers.
47:26
It's
47:26
a
47:26
very
47:27
cheap
47:27
way
47:28
of
47:28
getting
47:29
a
47:29
narrow
47:29
range
47:30
of
47:30
goods
47:30
to
47:31
customers.
47:31
To
47:31
customers.
47:32
Doors
47:33
and
47:33
Actually,
47:33
I
47:33
think
47:33
that's
47:33
kind
47:34
of
47:34
interesting.
47:35
I
47:36
also
47:36
think
47:37
going
47:37
back
47:37
to
47:38
some
47:38
of
47:38
my
47:38
roots,
47:39
what
47:39
you
47:39
see
47:40
in
47:40
China,
47:40
and
47:40
some
47:41
of
47:41
the
47:41
kind
47:41
of,
47:42
some
47:42
of
47:42
the
47:42
immediacy,
47:43
some
47:43
of
47:44
the
47:44
kind
47:44
of
47:44
fresh
47:44
that
47:45
you're
47:45
getting
47:45
delivered
47:45
in
47:45
China,
47:46
some
47:46
of
47:46
the
47:46
merging
47:47
of
47:48
food
47:48
service
47:49
and
47:49
grocery
47:50
that
47:50
you
47:50
get
47:51
in
47:51
the
47:51
Chinese
47:51
operations
47:52
is
47:52
really
47:53
interesting.
47:55
You
47:55
can
47:56
now
47:56
kind
47:56
of
47:57
get
47:57
your
47:57
lobster
47:58
cooked,
47:59
put
48:00
into
48:00
a,
48:00
put
48:00
into
48:00
a
48:01
meal,
48:01
and
48:02
delivered
48:02
with
48:02
your
48:02
bananas.
48:03
And
48:04
that's
48:04
kind
48:04
of
48:04
interesting.
48:05
Or
48:05
you
48:05
can
48:05
order
48:06
the
48:06
lobster
48:06
fresh.
48:07
And
48:08
that
48:08
kind
48:08
of,
48:08
that's
48:09
kind
48:09
of
48:09
interesting
48:09
as
48:09
well,
48:10
because
48:10
margins
48:11
in
48:11
food
48:11
service
48:12
are
48:12
higher
48:12
than
48:12
in
48:13
grocery.
48:13
So
48:13
if
48:14
you
48:14
can
48:14
crack
48:14
that,
48:14
that's
48:15
kind
48:15
of
48:15
an
48:15
interesting
48:15
option.
48:16
That's
48:16
kind
48:16
of
48:16
interesting
48:16
as
48:16
well.
48:18
Okay,
48:18
well,
48:18
great
48:19
job
48:19
bringing
48:19
protein
48:20
into
48:20
this
48:20
discussion.
48:21
Finally.
48:21
Not
48:22
so
48:22
starchy
48:22
after
48:23
all
48:23
the
48:23
podcast.
48:24
Right?
48:24
Right.
48:25
All
48:25
right,
48:25
so
48:25
my,
48:26
my
48:26
final
48:26
two
48:27
questions
48:27
for
48:27
you
48:27
are
48:28
on
48:28
the
48:28
confessions
48:28
angle,
48:29
which
48:29
is
48:29
why
48:29
we
48:29
call
48:29
this
48:29
podcast
48:30
Confessions
48:31
of
48:31
Supply
48:31
Chain
48:31
Executives.
48:32
So
48:32
my
48:32
first
48:32
confession
48:33
question
48:33
for
48:33
you
48:34
is,
48:35
what
48:35
is,
48:36
is
48:36
there
48:36
an
48:36
uncomfortable
48:37
truth
48:37
about
48:38
grocery
48:39
e
48:39
commerce
48:40
that
48:40
most
48:41
grocers
48:41
still
48:42
just
48:42
don't
48:42
want
48:42
to
48:42
hear?
48:44
I
48:44
think
48:44
E
48:44
commerce.
48:45
So
48:45
people
48:45
talk
48:45
about
48:45
E
48:45
commerce
48:46
being
48:46
unprofitable,
48:46
but
48:47
actually,
48:47
sometimes
48:47
E
48:48
commerce
48:48
is
48:48
hiding
48:48
the
48:49
unprofitability
48:49
of
48:50
stores.
48:50
And
48:51
if
48:51
you
48:51
take
48:51
the
48:51
volume
48:51
out
48:52
of
48:52
the
48:52
store,
48:53
you're
48:53
left
48:54
with
48:54
a
48:54
store
48:54
problem.
48:55
And
48:55
actually,
48:55
some
48:55
people
48:56
are
48:56
kind
48:56
of
48:56
misdiagnosing
48:57
it
48:57
as
48:57
an
48:57
E
48:58
commerce
48:58
problem.
48:59
Actually,
49:00
the
49:00
problem
49:00
is
49:00
actually
49:01
when
49:01
you
49:01
take
49:01
the
49:02
volumes
49:02
out,
49:02
you're
49:02
left
49:03
with
49:03
some
49:03
stores,
49:04
and
49:04
that's
49:04
awkward
49:06
and
49:06
people
49:06
don't
49:07
want
49:07
to
49:07
admit
49:07
to
49:07
that.
49:08
I'd
49:09
say
49:09
the
49:10
second
49:10
one
49:11
is
49:12
this
49:12
is
49:13
a
49:13
major
49:13
strategic
49:14
problem
49:14
for
49:14
these
49:14
guys,
49:18
but
49:18
the
49:18
returns
49:19
often
49:20
go
49:20
beyond
49:20
the
49:21
incentive
49:21
programs
49:21
of
49:22
the
49:22
management.
49:23
And
49:23
you've
49:23
got
49:23
to
49:23
have
49:24
somebody
49:24
who's
49:24
buckling
49:25
up
49:25
to
49:25
say,
49:26
I'm
49:27
okay,
49:27
that
49:27
this
49:27
is
49:27
going
49:28
to
49:28
really
49:28
be
49:28
something
49:28
that's
49:29
driving
49:29
my
49:29
business
49:29
in
49:30
five
49:30
years,
49:31
not
49:31
necessarily
49:32
in
49:32
one
49:32
year.
49:33
And
49:33
that's
49:34
a
49:34
challenge
49:34
when
49:35
chief
49:35
executives
49:36
last
49:36
an
49:36
average
49:37
of
49:37
what,
49:37
three
49:38
to
49:38
five
49:38
years,
49:40
which
49:40
actually
49:41
should,
49:41
in
49:41
theory
49:41
be
49:41
easier
49:42
for
49:42
the
49:42
regional
49:42
grocers
49:43
to
49:43
actually
49:44
know,
49:44
get
49:44
their
49:44
heads
49:44
around
49:45
because
49:45
they
49:45
tend
49:45
to
49:45
stay
49:46
in
49:46
position
49:46
longer.
49:46
Exactly.
49:47
I
49:47
think
49:47
this,
49:48
this
49:48
should
49:48
be
49:48
something
49:49
that
49:49
suits
49:49
family
49:49
businesses
49:50
down
49:50
to
49:50
the
49:50
ground.
49:51
Right.
49:51
Sam
49:52
interviewing
49:52
you
49:52
again.
49:53
In,
49:53
say,
49:53
three
49:53
to
49:53
five
49:54
years
49:54
time,
49:55
is
49:56
E
49:56
grocery
49:57
going
49:57
to
49:57
be
49:57
profitable
49:58
for
49:58
most
49:58
players?
49:59
Are
49:59
we
49:59
still
50:00
going
50:00
to
50:00
be
50:00
having
50:00
this
50:00
conversation
50:01
and
50:01
say,
50:02
you
50:02
know,
50:02
2029,
50:04
2030,
50:05
2031?
50:06
Like,
50:07
what's
50:07
your
50:07
take,
50:07
Richard?
50:08
What
50:08
do
50:08
we
50:09
know
50:09
going
50:09
to
50:09
be
50:10
bigger.
50:11
This
50:11
is
50:11
definitely
50:11
a
50:12
one
50:12
way
50:12
street.
50:15
I
50:15
have
50:15
a
50:15
feeling
50:16
what
50:17
you're
50:17
going
50:17
to
50:17
get
50:17
to
50:17
is
50:18
a
50:18
haves
50:18
and
50:18
have
50:18
nots
50:20
and
50:20
you're
50:20
going
50:20
to
50:20
end
50:20
up
50:21
with
50:21
a
50:21
bunch
50:21
of
50:21
people
50:21
who've
50:22
invested,
50:23
worked
50:23
out
50:23
how
50:24
to
50:24
get
50:24
a
50:24
model
50:25
that
50:25
they
50:25
own
50:25
and
50:25
they
50:26
own
50:26
their
50:26
customers
50:27
who
50:27
are
50:27
going
50:28
to
50:28
be
50:28
on
50:28
a
50:28
pretty
50:29
strong
50:29
trajectory.
50:30
And
50:30
you've
50:31
got
50:31
a
50:31
bunch
50:31
of
50:31
people
50:31
who
50:32
have
50:32
chosen
50:32
to
50:33
stick
50:33
their
50:33
heads
50:33
in
50:33
the
50:33
sand
50:35
and
50:35
they're
50:36
going
50:36
to
50:36
be
50:36
the
50:36
ones
50:36
who
50:36
struggle.
50:37
And
50:38
that
50:38
for
50:38
them,
50:39
I
50:39
just
50:39
don't
50:40
see
50:40
how
50:40
they're
50:40
going
50:40
to
50:40
reach
50:41
a
50:41
point
50:41
where
50:41
they're
50:42
profitable.
50:42
And
50:43
if
50:43
they're
50:43
working
50:43
with
50:44
some
50:44
of
50:44
the
50:44
third
50:44
parties,
50:46
frankly,
50:46
the
50:47
third
50:47
parties
50:47
are
50:47
going
50:47
to
50:47
get
50:47
more
50:48
and
50:48
more
50:48
power
50:48
over
50:48
them.
50:48
And
50:49
I
50:49
think
50:49
the
50:49
pie
50:49
is
50:49
going
50:49
to
50:50
go
50:50
more
50:50
and
50:50
more
50:50
to
50:50
the
50:50
third
50:51
parties,
50:51
which
50:51
actually
50:52
kind
50:52
of
50:52
goes
50:53
back
50:53
to
50:53
what
50:53
I
50:53
said
50:53
in
50:54
China.
50:55
You
50:55
end
50:55
up
50:55
giving
50:56
all
50:56
your
50:56
profit
50:56
away.
50:57
Yeah.
50:57
And
50:58
the
50:58
retail
50:58
media
50:58
angle
50:58
too,
50:58
because
50:59
they
50:59
get
50:59
a
50:59
lot
50:59
of
50:59
first
50:59
party
50:59
data
51:00
in
51:00
terms
51:00
of
51:00
making
51:00
their
51:00
customers
51:01
continue
51:01
to
51:01
use
51:02
their
51:02
platforms
51:02
too.
51:03
That's
51:03
a
51:03
really
51:03
interesting
51:03
point.
51:04
Point.
51:04
Correct.
51:05
Oh,
51:05
man.
51:05
Richard,
51:06
I
51:06
wish
51:06
I
51:06
could
51:06
talk
51:07
to
51:07
you
51:07
for
51:07
longer,
51:08
but
51:08
unfortunately
51:08
we
51:08
gotta
51:09
end
51:09
it
51:09
at
51:09
some
51:09
point.
51:10
So.
51:10
Richard
51:10
McKenzie
51:11
of
51:11
Vlock,
51:11
a
51:12
division
51:12
of
51:12
the
51:12
Roller
51:12
Group,
51:13
thank
51:13
you
51:13
for
51:13
bringing
51:14
what
51:14
is,
51:14
what
51:15
has
51:15
just
51:15
been
51:15
an
51:15
outstanding
51:16
level
51:16
of
51:17
clarity
51:17
to
51:18
one
51:18
of
51:18
retail's
51:19
toughest
51:19
challenges.
51:20
Thank
51:21
you,
51:21
Chris.
51:21
I,
51:21
as
51:22
always,
51:22
I
51:22
love
51:22
being
51:23
here.
51:23
So
51:24
I'd
51:24
love
51:24
to
51:25
do
51:25
this
51:25
chat
51:25
again
51:26
in
51:26
2028
51:26
or
51:26
whenever
51:27
you
51:27
mentioned.
51:27
Yeah,
51:28
right.
51:28
I'll
51:28
book
51:28
you
51:29
right
51:29
now
51:30
if,
51:30
hey,
51:30
if
51:30
people
51:30
want
51:31
to
51:31
get
51:31
in
51:31
touch
51:31
with
51:31
you,
51:31
they're
51:32
listening
51:32
to
51:32
this
51:32
conversation.
51:33
What's
51:33
the
51:34
best
51:34
way
51:34
for
51:34
them
51:34
to
51:34
do
51:34
that?
51:34
Richard,
51:35
my
51:35
email
51:36
is
51:36
richard.mckenziemck
51:38
verloc.com
51:40
and
51:40
our
51:41
website
51:41
is
51:41
www.verlocdeck.com.
51:44
so
51:45
love
51:45
to
51:45
hear
51:45
from
51:45
anybody.
51:46
All
51:47
right,
51:47
well,
51:47
there
51:47
you
51:47
have
51:48
it.
51:48
And
51:48
of
51:49
course,
51:49
today's
51:49
podcast
51:50
has
51:50
been
51:50
produced
51:51
with
51:51
the
51:51
help
51:51
and
51:51
support
51:52
of
51:52
Ella
51:52
Seward.
51:53
I
51:53
am
51:54
Chris
51:54
Walton
51:55
and
51:55
this
51:55
has
51:55
been
51:55
confessions
51:56
of
51:56
supply
51:57
chain
51:57
executives.
51:58
Never
51:58
forget,
51:58
Omnitok
51:59
fans.
52:00
Confessions
52:00
are
52:01
almost
52:01
always
52:02
good
52:02
for
52:02
the
52:02
soul.
52:03
Be
52:03
careful
52:04
out
52:04
there.