1
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you know, and

2
00:00:01,392 --> 00:00:01,832
that's what

3
00:00:01,832 --> 00:00:02,413
supply chain

4
00:00:02,413 --> 00:00:03,554
design is all

5
00:00:03,554 --> 00:00:04,365
about is trying

6
00:00:04,365 --> 00:00:05,537
to find that,

7
00:00:05,537 --> 00:00:06,297
you know, best

8
00:00:06,297 --> 00:00:07,299
balance

9
00:00:07,299 --> 00:00:07,779
between

10
00:00:07,779 --> 00:00:09,340
different costs

11
00:00:09,521 --> 00:00:10,232
that you are

12
00:00:10,232 --> 00:00:10,883
faced with

13
00:00:10,883 --> 00:00:11,684
today.

14
00:00:11,684 --> 00:00:12,475
And because all

15
00:00:12,475 --> 00:00:13,085
these different

16
00:00:13,085 --> 00:00:14,031
costs, whether

17
00:00:14,031 --> 00:00:14,451
you want to

18
00:00:14,451 --> 00:00:15,250
take

19
00:00:15,250 --> 00:00:16,801
transportation,

20
00:00:16,801 --> 00:00:18,141
warehousing,

21
00:00:18,141 --> 00:00:19,062
which has a

22
00:00:19,062 --> 00:00:19,592
labor and a

23
00:00:19,592 --> 00:00:20,042
storage

24
00:00:20,042 --> 00:00:21,863
component.

25
00:00:21,863 --> 00:00:22,413
Then you have

26
00:00:22,413 --> 00:00:23,267
the inventory

27
00:00:23,267 --> 00:00:24,427
costs

28
00:00:24,427 --> 00:00:25,048
on top of

29
00:00:25,048 --> 00:00:26,648
that.

30
00:00:26,788 --> 00:00:27,369
At times they

31
00:00:27,369 --> 00:00:27,939
move in different

32
00:00:27,939 --> 00:00:28,629
directions.

33
00:00:28,629 --> 00:00:28,989
There's

34
00:00:28,989 --> 00:00:30,130
different

35
00:00:30,130 --> 00:00:31,631
macroeconomic

36
00:00:31,631 --> 00:00:32,631
parameters

37
00:00:32,631 --> 00:00:33,932
influencing

38
00:00:33,932 --> 00:00:35,417
these costs.

39
00:00:35,417 --> 00:00:35,901
I would say

40
00:00:35,901 --> 00:00:36,302
start with

41
00:00:36,302 --> 00:00:37,294
clarity.

42
00:00:37,294 --> 00:00:37,854
you need to

43
00:00:37,854 --> 00:00:38,785
have clarity on

44
00:00:38,785 --> 00:00:39,706
what is most

45
00:00:39,706 --> 00:00:40,647
important for your

46
00:00:40,647 --> 00:00:41,470
organization.

47
00:00:41,470 --> 00:00:41,960
People always

48
00:00:41,960 --> 00:00:42,501
say I want

49
00:00:42,501 --> 00:00:43,021
the best of

50
00:00:43,021 --> 00:00:44,112
both service and

51
00:00:44,112 --> 00:00:45,053
cost,

52
00:00:45,053 --> 00:00:46,484
but it's really

53
00:00:46,484 --> 00:00:47,195
saying that,

54
00:00:47,195 --> 00:00:48,125
well, I'm going

55
00:00:48,125 --> 00:00:49,076
to

56
00:00:49,096 --> 00:00:49,656
meet this

57
00:00:49,656 --> 00:00:50,027
service

58
00:00:50,027 --> 00:00:50,697
expectation.

59
00:00:50,697 --> 00:00:51,088
So if your

60
00:00:51,088 --> 00:00:52,079
service says I

61
00:00:52,079 --> 00:00:52,749
want to hit

62
00:00:52,749 --> 00:00:53,620
all my customers

63
00:00:53,620 --> 00:00:54,521
within

64
00:00:54,521 --> 00:00:55,471
six hours, eight

65
00:00:55,471 --> 00:00:56,702
hours, 12 hours,

66
00:00:56,702 --> 00:00:57,803
sub same day

67
00:00:57,803 --> 00:00:59,104
or one day,

68
00:00:59,104 --> 00:00:59,755
that becomes a

69
00:00:59,755 --> 00:01:00,035
different

70
00:01:00,035 --> 00:01:00,826
strategy.

71
00:01:00,826 --> 00:01:01,256
But if you

72
00:01:01,256 --> 00:01:01,626
want to say

73
00:01:01,626 --> 00:01:02,457
that, okay, I

74
00:01:02,457 --> 00:01:02,957
can do two

75
00:01:02,957 --> 00:01:03,808
or three days,

76
00:01:03,808 --> 00:01:04,419
but I want

77
00:01:04,419 --> 00:01:05,450
to really

78
00:01:05,450 --> 00:01:06,761
minimize cost or

79
00:01:06,761 --> 00:01:07,852
keep my cost

80
00:01:07,852 --> 00:01:09,812
KPIs in control.

81
00:01:09,854 --> 00:01:10,394
Then you have

82
00:01:10,394 --> 00:01:10,824
a little bit

83
00:01:10,824 --> 00:01:11,585
more flexibility

84
00:01:11,585 --> 00:01:12,556
around,

85
00:01:12,556 --> 00:01:13,446
where else can

86
00:01:13,446 --> 00:01:14,117
I be?