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Transcript

Transcript

Transcript

Do you believe that we’re likely to see a ship, maybe I, I don’t know the next few years, the next five years of moving away from same day or next day deliveries to 10 and 20 and 15 minute deliveries. My belief is that it’s going to be a continuum I think customers. Have always valued low prices, vast selection, you know, high levels of convenience. I think there’s going to be still a strong desire to have access to millions or 10s of millions of products that may not be able to get you in 10 minutes but could get to you overnight. Or, you know, the same day you will have a cooperative products that are your everyday essential needs. You know, parachute, the ambient groceries could be, you know, personal care items that you want in a much shorter amount of time. That’s how most consumers I suspect. And the world will experience this. I don’t think the the end outcome here is going to be that consumers will, you know, settle for lower amount of selection. So how do you reconfigure than the supply chain to be able to cater to these changing fulfillment expectations and fulfillment demands? I think our philosophy has always been to build a network that’s agile and flexible. And I’ll use an example from the US that, you know, we’ve gone to and just last two years coming out of the pandemic, you know, we had more than doubled our network. And your network, prior to the pandemic in the US, we still have very sizable network coming out, which more than doubled it. And we realized that the seed expectations were changing, had gone from 2:30 to 1 day as people got more used to online shopping. And that that scale afforded us an opportunity to offer not just that one day delivery, but also same day deliveries. And so using the same large network we had, the same footprint centers, the same sortation and delivery network we had, we just reconfigured. And where is that good offer consumers a lot more off what they were looking for, which is faster deliveries. And we did that effectively by regionalizing their network in the US, compartmentalizing into eight different regions. It’s now 9 regions at getting products much closer to customers, really investing in the supply chain to get vendors and sellers to get the right products for a geography to do the sites and the closest to them and shipping from those sites. And what we found in that experience was that. It wasn’t just the network was getting faster. We’ve found a way to get the network faster at ilua cost. How did you manage that in supply chains? Your your costs are very tightly correlated to how far a product has to move between a manufacturers location to a customer’s doorstep and then how many times you have to handle it. If you can reduce the number of times something has to get handled or you can get products much more directly from the manufacturing location to where a customer. You know, actually is you can actually reduce those costs and has the added benefit that it’s also providing a much faster level of service.