1 00:00:00,080 --> 00:00:02,160 Hey there Retail Podcast listeners. 2 00:00:02,160 --> 00:00:04,920 Today we've got someone very special on our show. 3 00:00:04,920 --> 00:00:08,400 Meet Professor Richard Wilding, the supply chain superstar from 4 00:00:08,400 --> 00:00:10,880 Cranfield University. Imagine a thought leader who's 5 00:00:10,880 --> 00:00:13,400 not only shaped the world of logistics in fields like 6 00:00:13,400 --> 00:00:16,840 pharmaceuticals, retail and automotive, but also encourages 7 00:00:16,840 --> 00:00:19,520 business leaders everywhere to make a real difference 8 00:00:19,880 --> 00:00:23,360 economically, environmentally and societally. 9 00:00:23,480 --> 00:00:26,880 With over 500 publications under his belt, Richard doesn't just 10 00:00:26,880 --> 00:00:29,640 talk the talk, he's a much sought after voice, delivering 11 00:00:29,640 --> 00:00:31,360 keynote speeches around the globe. 12 00:00:31,400 --> 00:00:34,440 On LinkedIn, you might have stumbled upon his courses on 13 00:00:34,440 --> 00:00:38,280 resilient supply chain. Plus, he's got a key seat at the 14 00:00:38,280 --> 00:00:41,600 Global Board of Trustees for CIPS advocating for global 15 00:00:41,600 --> 00:00:43,890 excellence. And as if he wasn't busy enough, 16 00:00:43,890 --> 00:00:46,370 in recognition of his outstanding achievements in the 17 00:00:46,410 --> 00:00:49,570 area of logistics and AMP supply chain management, Professor 18 00:00:49,570 --> 00:00:52,810 Richard Wilding was appointed an officer of the Most Excellent 19 00:00:52,810 --> 00:00:56,690 Order of the British Empire, OBE, by Queen Elizabeth the 20 00:00:56,690 --> 00:01:00,850 Second in the 2013 New Year honors for services to business. 21 00:01:01,530 --> 00:01:04,690 If you're in the mood to be inspired and informed by a true 22 00:01:04,690 --> 00:01:08,930 industry giant, stay tuned. Let's join Alex and Professor 23 00:01:08,930 --> 00:01:10,970 Richard Wildings as he shares his wisdom. 24 00:01:11,740 --> 00:01:14,260 Obviously, I want to maximize the time that we have with you. 25 00:01:14,260 --> 00:01:17,980 I know there'll be a lot of listeners who who will be just 26 00:01:17,980 --> 00:01:19,900 on tenderhooks to to what you had to say. 27 00:01:20,100 --> 00:01:22,700 I think what would be super useful is if we can break down 28 00:01:22,700 --> 00:01:26,540 what supply chain is and and get your perspective as as a 29 00:01:26,820 --> 00:01:29,500 professional professor in in this subject. 30 00:01:29,500 --> 00:01:31,660 So what is supply chain from your perspective? 31 00:01:31,980 --> 00:01:34,180 Okay, so. So I think one of the things 32 00:01:34,180 --> 00:01:38,500 that we're all recognizing now is that competition is no longer 33 00:01:38,500 --> 00:01:41,060 between an individual organization. 34 00:01:41,440 --> 00:01:44,080 It's between the supply chains they are part of. 35 00:01:44,080 --> 00:01:47,760 So this is absolutely critical Then we're not talking about. 36 00:01:48,360 --> 00:01:51,800 Well, the way I sometimes summarize it just to wind people 37 00:01:51,800 --> 00:01:55,320 up is, is you're only as good as your worst supplier because 38 00:01:55,320 --> 00:01:59,040 we're all in networks of all these different organizations. 39 00:01:59,280 --> 00:02:02,120 So when you start to think about this, it's not a chain, it's a 40 00:02:02,120 --> 00:02:05,160 network. It's multiple connections all 41 00:02:05,160 --> 00:02:07,000 going on and that creates some of the. 42 00:02:07,580 --> 00:02:11,260 If you like the dynamics that we experience within supply chains, 43 00:02:11,260 --> 00:02:14,500 So when we're starting to actually really reflect on what 44 00:02:14,500 --> 00:02:19,020 the supply chain is all about, it's all about delivering value 45 00:02:19,020 --> 00:02:22,260 of course. And really importantly, that 46 00:02:22,260 --> 00:02:26,180 means as a professor in supply chain strategy, I have to, if 47 00:02:26,180 --> 00:02:30,620 you like, be very, very close to my marketing colleagues and 48 00:02:30,620 --> 00:02:34,300 sales colleagues in within the organization. 49 00:02:34,750 --> 00:02:37,510 Because in a way they have an understanding of what is 50 00:02:37,510 --> 00:02:39,950 creating value for customers. And I think one of the 51 00:02:39,950 --> 00:02:43,630 challenges we've had in the past is, is that if you like supply 52 00:02:43,630 --> 00:02:49,910 chain seen as some operational entity and if it has to 53 00:02:49,910 --> 00:02:53,870 basically deliver value, but if you don't know what that value 54 00:02:53,870 --> 00:02:57,790 is very difficult to actually deliver the value. 55 00:02:58,070 --> 00:03:01,070 So, so from a supply chain perspective. 56 00:03:01,480 --> 00:03:03,600 You have to understand the competitive strategy. 57 00:03:03,600 --> 00:03:07,240 That's basically about how demand is created by your 58 00:03:07,240 --> 00:03:13,840 organization, whatever that is, how value is effectively being 59 00:03:13,920 --> 00:03:16,160 created. And then from a supply chain 60 00:03:16,160 --> 00:03:20,320 perspective, my job is really how do I actually deliver that 61 00:03:20,320 --> 00:03:23,040 value, how do I have the support, the delivery of that 62 00:03:23,040 --> 00:03:26,370 value? So understanding that customer 63 00:03:26,370 --> 00:03:30,370 and the customer's customer becomes really front of mind 64 00:03:30,530 --> 00:03:32,530 when we're actually working in that way. 65 00:03:32,530 --> 00:03:36,250 So that becomes really important as we're actually moving forward 66 00:03:36,250 --> 00:03:39,290 to really have that clarity of what's going on. 67 00:03:39,650 --> 00:03:43,730 And then in simple terms, but it's not that simple really, 68 00:03:43,730 --> 00:03:46,570 there's often four key things I like to play with. 69 00:03:46,570 --> 00:03:48,770 It's the supply chain process design. 70 00:03:49,750 --> 00:03:53,910 The network and infrastructure design even at a more micro 71 00:03:53,910 --> 00:03:55,630 level this type of equipment we use. 72 00:03:55,790 --> 00:03:59,190 So that's the overall network could be global, it could be 73 00:03:59,190 --> 00:04:02,870 more local in the country, but then it's right down to Okay 74 00:04:02,870 --> 00:04:05,790 what is the infrastructure equipment we're using in a 75 00:04:05,870 --> 00:04:08,270 particular facility. Because if you've got to be able 76 00:04:08,270 --> 00:04:10,950 to pick things within 30 minutes, you're going to have 77 00:04:10,950 --> 00:04:14,110 very different equipment to if you're going to pick things in 78 00:04:14,110 --> 00:04:16,269 where you're going to date to do it or something like that. 79 00:04:16,800 --> 00:04:19,000 Information systems, absolutely key. 80 00:04:19,000 --> 00:04:21,519 So we're going to think about the information systems design 81 00:04:21,880 --> 00:04:24,000 and then we have to think about the organization. 82 00:04:24,000 --> 00:04:27,200 This is the people side of things and the skills of people 83 00:04:27,200 --> 00:04:29,040 and how they're operating as well. 84 00:04:29,280 --> 00:04:32,680 So that in a nutshell, we have to think about the competition 85 00:04:32,680 --> 00:04:36,440 is not between the individual companies, it's between the 86 00:04:36,440 --> 00:04:40,280 supply chains they're part of. And then what we have to reflect 87 00:04:40,280 --> 00:04:43,400 on, often the definition of youth supply chain management 88 00:04:43,400 --> 00:04:45,010 is. Supply chain management, it's 89 00:04:45,010 --> 00:04:49,250 all about the management of relationships with with all the 90 00:04:49,250 --> 00:04:53,370 stakeholders so that you can enhance value for that final 91 00:04:53,370 --> 00:04:57,850 customer but also reduce costs for the supply chain as a whole. 92 00:04:57,850 --> 00:05:01,930 You've got to this is something it what's in it for we you can't 93 00:05:02,450 --> 00:05:05,530 kill your suppliers, you've got to actually think about the 94 00:05:05,530 --> 00:05:09,290 totality of what's going on. Otherwise the value delivery 95 00:05:09,290 --> 00:05:12,330 will start to break down. And that's one of the key things 96 00:05:12,330 --> 00:05:13,810 that we have to think through too. 97 00:05:13,810 --> 00:05:18,090 So I think that that's probably not, you know, a super concise 98 00:05:18,090 --> 00:05:22,650 definition, but I've summarized it in a in a couple of minutes. 99 00:05:22,650 --> 00:05:27,130 In your experience that you've had over the years specifically 100 00:05:27,130 --> 00:05:29,850 because I know you also work across supply chains in general, 101 00:05:29,850 --> 00:05:34,250 not just retail, what is that in terms of the four areas? 102 00:05:34,560 --> 00:05:37,040 What is the thing that's always surprised you from a retail 103 00:05:37,040 --> 00:05:39,240 perspective. I think that one of the key 104 00:05:39,240 --> 00:05:43,160 things that we often find is, is that people will get locked into 105 00:05:43,160 --> 00:05:47,000 one mode of operation. I think this is, this is quite 106 00:05:47,000 --> 00:05:49,960 interesting. Now this a term which has been 107 00:05:49,960 --> 00:05:52,440 used for a while and I've I've used it so and people started 108 00:05:52,440 --> 00:05:55,960 discussing something called the bimodal supply chain and we 109 00:05:55,960 --> 00:05:59,000 talked about two modes actually operating. 110 00:05:59,000 --> 00:06:03,100 So the first mode is really. It's, it's about lean. 111 00:06:03,100 --> 00:06:07,140 It's about predictable. It's, it's, it's that mode of 112 00:06:07,140 --> 00:06:09,700 operation. So if you're configuring your 113 00:06:09,780 --> 00:06:13,420 processes, your infrastructure, your network, your information 114 00:06:13,420 --> 00:06:16,780 systems and getting your people to work in that that lean 115 00:06:16,940 --> 00:06:20,740 predictable environment, of course that will structure a 116 00:06:20,740 --> 00:06:22,460 supply chain in a particular way. 117 00:06:22,460 --> 00:06:25,740 It will mean that you will have inventory positioned in that 118 00:06:25,740 --> 00:06:28,980 network in a particular way and so on and so forth. 119 00:06:29,380 --> 00:06:32,860 That's mode one. Mode two is very much focused on 120 00:06:32,860 --> 00:06:35,500 agility. It's the flexible side of 121 00:06:35,500 --> 00:06:38,420 things. It's, it's exploring new options 122 00:06:38,420 --> 00:06:41,180 and so on and so forth. And one of the things that we 123 00:06:41,180 --> 00:06:44,460 have to think of, if we think about the old normal, and I'll 124 00:06:44,460 --> 00:06:48,940 say the old Normal was like 2019 before COVID came along and sort 125 00:06:48,980 --> 00:06:53,700 of everybody suddenly realized, hey, we've got some issues here 126 00:06:53,700 --> 00:06:59,130 and bounced out of control. So that old normal you could say 127 00:06:59,130 --> 00:07:02,410 for most businesses probably about, I don't know 80% of what 128 00:07:02,410 --> 00:07:06,970 they were up to was in that mode one and maybe a smaller 129 00:07:06,970 --> 00:07:09,970 proportion in in mode two operations. 130 00:07:09,970 --> 00:07:13,570 But when COVID came along, everything sort of switched 131 00:07:13,570 --> 00:07:17,650 around and we're having to operate in that mode. 132 00:07:18,570 --> 00:07:24,970 Two type of way of working and problem that you get with that 133 00:07:24,970 --> 00:07:26,960 is. Is your supply chain, your 134 00:07:26,960 --> 00:07:30,600 processes, your network infrastructure, your information 135 00:07:30,600 --> 00:07:34,880 systems and your people are all geared to working in mode one 136 00:07:35,280 --> 00:07:39,080 and it becomes very inefficient then for them to work in mode 137 00:07:39,280 --> 00:07:42,760 two, if that makes sense. So one of one of the things 138 00:07:42,760 --> 00:07:48,040 which just early on in 2020 we were talking about the fact that 139 00:07:49,600 --> 00:07:54,370 you end up in a situation where. You end up with a pre new 140 00:07:54,370 --> 00:07:57,450 normal, which sounded awful, but what we were saying is we're 141 00:07:57,490 --> 00:08:01,050 going to be moving into a new normal, which we're sort of in 142 00:08:01,050 --> 00:08:02,970 now. We're in this new normal. 143 00:08:03,290 --> 00:08:06,290 The problem is what we've got is we've got a load of supply 144 00:08:06,290 --> 00:08:10,450 chains, a load of processes, infrastructure, information 145 00:08:10,450 --> 00:08:15,130 systems and people who are used to operating that old way. 146 00:08:15,570 --> 00:08:19,290 Now the danger with that is your cost to serve goes through the 147 00:08:19,290 --> 00:08:21,690 roof because basically what you're trying to do is push 148 00:08:21,690 --> 00:08:24,620 product. Through a supply chain, which 149 00:08:24,620 --> 00:08:27,180 isn't structured for the types of things that you're having to 150 00:08:27,180 --> 00:08:29,380 do. So if you end up in retail with 151 00:08:29,380 --> 00:08:32,659 everything moving online, the cost to serve dramatically 152 00:08:32,659 --> 00:08:35,340 changes. And it was fine when you had a 153 00:08:35,340 --> 00:08:38,539 very small proportion of your orders moving online. 154 00:08:38,580 --> 00:08:40,780 We can pick from the store. We can do this and we can. 155 00:08:41,280 --> 00:08:43,799 Do do all the rest of it, all of a sudden when you've got a 156 00:08:43,799 --> 00:08:46,960 bigger proportion that drives you to have to think very, very 157 00:08:46,960 --> 00:08:49,120 differently about this because you're into this mode to 158 00:08:49,120 --> 00:08:51,240 operation. And if you're, I mean we all 159 00:08:51,240 --> 00:08:56,200 know picking from store is a very inefficient way of doing 160 00:08:56,200 --> 00:08:58,160 things. If you're doing sort of grocery 161 00:08:58,160 --> 00:09:01,400 delivery or things like that, really what you need is these 162 00:09:01,400 --> 00:09:07,160 dark stores which are configured to optimize that type of 163 00:09:07,160 --> 00:09:10,840 operation and what I would argue is, is the transition. 164 00:09:11,200 --> 00:09:15,680 That many organizations have been on is just it's just been 165 00:09:15,680 --> 00:09:18,120 too slow. And the problem that we've got 166 00:09:18,120 --> 00:09:22,640 it is, is we've got even more stuff coming at us at the 167 00:09:22,640 --> 00:09:25,760 moment. It's like we're on the ocean and 168 00:09:25,760 --> 00:09:29,720 we got these waves coming in, more waves coming and more waves 169 00:09:29,720 --> 00:09:31,040 coming. We get a bit of calm. 170 00:09:31,040 --> 00:09:32,960 We go, oh, that's great, we're OK. 171 00:09:32,960 --> 00:09:35,320 But there's still some more waves coming, so. 172 00:09:36,120 --> 00:09:39,160 This new normal is very different to the old normal and 173 00:09:39,600 --> 00:09:42,360 therefore we've got to restructure our supply chains to 174 00:09:42,360 --> 00:09:46,160 work in that way. But unfortunately that takes a 175 00:09:46,160 --> 00:09:49,080 bit of time because it probably it probably took us 30 years to 176 00:09:49,080 --> 00:09:52,680 put what we had in before. That's that's part of the 177 00:09:52,680 --> 00:09:57,400 challenge and I think this is part of the when you see 178 00:09:57,600 --> 00:10:01,780 retailers get caught out by. The various challenges in their 179 00:10:01,780 --> 00:10:05,620 supply chain and cost of commodities is, is, is, is high 180 00:10:05,620 --> 00:10:09,140 and it I think has reduced a little bit since the stop but 181 00:10:09,140 --> 00:10:12,740 hasn't come down. And it's as you said how do they 182 00:10:12,740 --> 00:10:17,460 efficiently optimize themselves to be able to serve the 183 00:10:17,460 --> 00:10:21,220 customers in a in especially with the cost of living crisis 184 00:10:21,260 --> 00:10:23,980 and an inflation in a in a sensible way. 185 00:10:24,020 --> 00:10:28,820 But then how do you when you're meeting CEO's or board members 186 00:10:28,820 --> 00:10:31,360 and they're like. We're we're we're looking at 187 00:10:31,640 --> 00:10:34,440 reoptimizing this 30 year old beast. 188 00:10:34,800 --> 00:10:37,280 We think technology is the answer for example, right. 189 00:10:37,280 --> 00:10:41,960 So we're going to heavily invest in software and optimization in 190 00:10:41,960 --> 00:10:46,200 our warehouse and everything. I'm just curious from again from 191 00:10:46,200 --> 00:10:48,920 your experience, what is that thing that they're not thinking 192 00:10:48,920 --> 00:10:50,120 of? What is that thing that they 193 00:10:50,120 --> 00:10:53,480 always the got you, if you like when they're going through the 194 00:10:53,720 --> 00:10:56,640 the system redesign or the process redesign? 195 00:10:57,440 --> 00:11:00,680 I think one of the challenges for for businesses and it is 196 00:11:00,680 --> 00:11:04,400 also a challenge for me, it's having also that a long view on 197 00:11:04,400 --> 00:11:08,280 what's actually going on and you you can't constrain yourself to 198 00:11:08,280 --> 00:11:11,640 just looking at a a very local market anymore. 199 00:11:11,720 --> 00:11:14,600 As we've realized, things happening on the other side of 200 00:11:14,600 --> 00:11:18,840 the world have an impact on on us maybe a few months or a few 201 00:11:18,840 --> 00:11:21,380 days later. But they do have that thing. 202 00:11:21,380 --> 00:11:24,260 So one of the things which I've been looking at recently just 203 00:11:24,260 --> 00:11:27,540 some of the global mega trends so that everybody has their mega 204 00:11:27,540 --> 00:11:30,460 trend lists. Yeah there are some common 205 00:11:30,460 --> 00:11:32,860 features. So there's there's a number of 206 00:11:32,860 --> 00:11:35,860 key things we're seeing. First you you just mentioned IT 207 00:11:36,060 --> 00:11:40,420 technology and digitization. Now that is absolutely critical. 208 00:11:40,420 --> 00:11:44,540 That is enabling us to do new things, but it's also enabling 209 00:11:44,540 --> 00:11:47,740 us to destroy some of the old things as well, so. 210 00:11:48,480 --> 00:11:51,400 So we we've, we've got some real opportunities with that 211 00:11:51,800 --> 00:11:57,760 sustainability and the whole ESG environment, social governance 212 00:11:58,480 --> 00:12:01,800 area, top of people's minds as well. 213 00:12:02,320 --> 00:12:06,960 But a really interesting thing is a term which is being talked 214 00:12:06,960 --> 00:12:12,080 about is the multipolar world, right and geopolitics. 215 00:12:12,080 --> 00:12:15,800 So, So what that is it's multiple centers of power and 216 00:12:15,800 --> 00:12:17,440 influence. So if we think about. 217 00:12:17,770 --> 00:12:20,490 How things have changed in just the last five years. 218 00:12:20,490 --> 00:12:24,770 We're seeing, if you like, centers of power forming around 219 00:12:24,770 --> 00:12:27,010 the world. It could be China, it could be 220 00:12:27,010 --> 00:12:29,610 Russia, it could be Iran, and so on and so forth. 221 00:12:29,610 --> 00:12:35,850 So we can use more fragmented sort of states of states of 222 00:12:35,850 --> 00:12:38,330 power. That has a big impact on the way 223 00:12:38,330 --> 00:12:40,370 we manage the networks and supply chains. 224 00:12:40,370 --> 00:12:45,250 We're dealing with also global economic inflation, of course. 225 00:12:45,910 --> 00:12:51,030 And that's means that consumers are losing purchasing power. 226 00:12:51,350 --> 00:12:54,150 I think that's that's the key thing to think about it. 227 00:12:54,150 --> 00:12:56,510 So if you're we're looking at China at the moment, they're in 228 00:12:56,510 --> 00:13:00,710 a big deflation, people's wages are in many situations are 229 00:13:00,710 --> 00:13:05,150 actually dropping and also we're we're seeing the prices as well 230 00:13:05,150 --> 00:13:07,790 in that particular market are actually dropping. 231 00:13:07,790 --> 00:13:10,550 Why? Because people have less, less 232 00:13:10,550 --> 00:13:14,740 cash to actually play with. And and that is ultimately going 233 00:13:14,740 --> 00:13:18,020 to be sort of impacting us as well. 234 00:13:18,020 --> 00:13:20,780 We've got this. It's basically what what does 235 00:13:20,780 --> 00:13:24,060 inflation mean? It just means that I, I get less 236 00:13:24,060 --> 00:13:26,180 for the money I've got in my pocket, right? 237 00:13:26,180 --> 00:13:29,820 Yeah. So how can I create that value 238 00:13:29,820 --> 00:13:34,460 which the customers want in a way that I have to accept that 239 00:13:34,460 --> 00:13:37,660 I'm probably going to get less, less out of this as well. 240 00:13:37,660 --> 00:13:39,220 So I'm going to have to get. I'm going to. 241 00:13:39,220 --> 00:13:41,820 I'm just going to have to think about how I can actually. 242 00:13:42,150 --> 00:13:44,350 Make my business work much harder. 243 00:13:44,910 --> 00:13:48,430 And then the other thing which is, is, is just on the horizon 244 00:13:48,430 --> 00:13:53,390 is the changing demographics and if you like the talent challenge 245 00:13:53,390 --> 00:13:54,990 that we've got. So if you're looking at some of 246 00:13:54,990 --> 00:13:58,150 the changing demographics we've got in particular nations, you 247 00:13:58,150 --> 00:14:01,550 know some nations it's actually, well, I mean most nations it's 248 00:14:01,670 --> 00:14:05,950 aging or we're getting you know in some, some nations with the 249 00:14:05,950 --> 00:14:07,950 birth rates have dropped quite dramatically. 250 00:14:08,290 --> 00:14:11,010 So that actually forcing different things as well and 251 00:14:11,010 --> 00:14:14,650 that ultimately is going to impact what's actually going on. 252 00:14:14,930 --> 00:14:18,890 Now from a retail perspective, all of these may have big 253 00:14:18,890 --> 00:14:22,730 implications for the way we procure, the way we have to 254 00:14:22,730 --> 00:14:24,250 manage things. So if you've got changing 255 00:14:24,250 --> 00:14:27,810 demographics, we've got less workforce, we've got to start 256 00:14:27,810 --> 00:14:30,770 thinking about technology and digitization which means we're 257 00:14:30,770 --> 00:14:33,730 reliant on less workforce. I was working with an 258 00:14:33,730 --> 00:14:39,450 organization recently to. Facilities to warehousing, 259 00:14:39,450 --> 00:14:43,250 facilities doing the same job. One of them was super highly 260 00:14:43,250 --> 00:14:47,570 automated. One of them had, I think it was 261 00:14:47,570 --> 00:14:50,290 a couple of 100 people in it doing the same sort of stuff. 262 00:14:50,290 --> 00:14:53,330 The other one had about, I can't remember what it was about 20 to 263 00:14:53,330 --> 00:14:55,810 50 people. So it's a big, a big difference. 264 00:14:56,490 --> 00:14:59,450 So you'd think to yourself, how are we saving loads of money in 265 00:14:59,450 --> 00:15:02,530 wages and everything else? Well, no. 266 00:15:02,530 --> 00:15:04,890 Actually, the wage differential was hardly. 267 00:15:05,140 --> 00:15:07,900 Anything Why? Because those fifty people were 268 00:15:07,900 --> 00:15:11,340 earning far more because of the technical skills and everything 269 00:15:11,340 --> 00:15:14,900 else that they needed than the other the other hundreds of 270 00:15:14,900 --> 00:15:16,100 people in the in the other place. 271 00:15:16,620 --> 00:15:18,940 And and this is part of the thing that we're having to sort 272 00:15:18,940 --> 00:15:21,860 of see is that the skills we need for today. 273 00:15:21,860 --> 00:15:26,220 So going back to my processes, infrastructure, information 274 00:15:26,220 --> 00:15:31,020 systems, and then the people and organization they if I'm having 275 00:15:31,100 --> 00:15:37,220 clever warehouses with. Augmented reality and sort of 276 00:15:38,500 --> 00:15:43,140 collaborative robotics, embedded and so on and so forth, and I 277 00:15:43,140 --> 00:15:46,300 put that into my infrastructure. That then means that the people 278 00:15:46,300 --> 00:15:50,180 side of things is going to have to change as well, Okay, because 279 00:15:50,180 --> 00:15:52,380 I'm going to need different types of people to operate that 280 00:15:52,460 --> 00:15:54,860 type of infrastructure. It will also have an impact on 281 00:15:54,860 --> 00:15:57,940 my processes. So because I've got all that, I 282 00:15:57,940 --> 00:16:00,920 can do things differently. Which then has an impact on my 283 00:16:00,920 --> 00:16:05,840 information system. So you can see how it it changes 284 00:16:05,960 --> 00:16:09,160 everything in that particular in in that particular sort of 285 00:16:09,160 --> 00:16:13,280 environment and that's part of the the challenge of this that 286 00:16:13,280 --> 00:16:16,560 these things force us to do things differently. 287 00:16:16,800 --> 00:16:19,920 So global economic inflation, if people got less buying pad, 288 00:16:19,920 --> 00:16:20,800 what? What is? 289 00:16:21,360 --> 00:16:26,080 From that perspective, How can we offer the same level of value 290 00:16:26,280 --> 00:16:30,220 but with less resource? When that that resource is all 291 00:16:30,220 --> 00:16:35,580 resources, you know including at workforce which is a resource as 292 00:16:35,580 --> 00:16:38,780 well as it could be the materials we're using and 293 00:16:38,780 --> 00:16:41,740 everything else which is going back to the sustainability 294 00:16:41,740 --> 00:16:43,780 agenda. So when we start to think we've 295 00:16:43,780 --> 00:16:47,300 got these big trends which are there but they're all feeding 296 00:16:47,300 --> 00:16:50,500 off each other. So from a from a perspective of 297 00:16:50,500 --> 00:16:53,500 if we're thinking about retail and thinking about what's going 298 00:16:53,500 --> 00:16:56,180 on, getting back to your original question. 299 00:16:56,650 --> 00:17:00,130 It's really saying if if I'm sitting there designing a 300 00:17:00,130 --> 00:17:03,170 warehouse for tomorrow and thinking about what's going on 301 00:17:03,170 --> 00:17:06,690 there, I've got to have a bit of an eye on what's happening 302 00:17:06,690 --> 00:17:09,569 globally. Yeah, because some of that is 303 00:17:09,569 --> 00:17:12,450 going to be impacting us at some point. 304 00:17:12,450 --> 00:17:15,849 We we're no longer we. We can't think that the old way 305 00:17:15,849 --> 00:17:18,770 of thinking that you could have the UK is a little island when 306 00:17:18,770 --> 00:17:22,730 it was beautifully surrounded or you have a nation which is just 307 00:17:22,730 --> 00:17:24,650 isolated from the world. It doesn't work like that 308 00:17:24,650 --> 00:17:27,329 anymore. We're totally dependent really 309 00:17:27,329 --> 00:17:30,250 on that network, that global network which we're dealing 310 00:17:30,250 --> 00:17:33,170 with. And of course that takes us into 311 00:17:33,170 --> 00:17:37,370 the whole world of risk and resilience because you then have 312 00:17:37,370 --> 00:17:40,490 to start thinking through, hang on a minute, can we. 313 00:17:40,730 --> 00:17:44,410 I need to multishore, not just multisource. 314 00:17:44,770 --> 00:17:48,610 Yeah, I'm caught out with that during it, during the pandemic, 315 00:17:48,610 --> 00:17:50,090 people saying, Oh yeah, I'm multisource. 316 00:17:50,090 --> 00:17:52,440 I've got 3 suppliers. Unfortunately they're all in 317 00:17:52,440 --> 00:17:56,280 Northern, they're all down. So it's multi shore. 318 00:17:56,280 --> 00:17:59,840 I need one in Italy, I need one in Brazil, I need one in you 319 00:17:59,840 --> 00:18:03,600 know the Far East. So that so we we're hearing 320 00:18:03,600 --> 00:18:07,840 people talking about China plus one, China +2, but they have big 321 00:18:07,840 --> 00:18:11,400 global implications because all of a sudden if it's China plus 322 00:18:11,400 --> 00:18:14,520 one that means half your stuff's no longer coming from China. 323 00:18:14,520 --> 00:18:19,360 So you've got China hurting because they they haven't got. 324 00:18:20,280 --> 00:18:23,840 That volume of stuff which is going on and if it's China +2, 325 00:18:23,840 --> 00:18:28,040 that means it's dropped by nearly 60% the orders that 326 00:18:28,040 --> 00:18:31,360 you're placing on that nature and that then has an impact on 327 00:18:31,360 --> 00:18:34,040 the social side of things. So yeah, all these things are 328 00:18:34,040 --> 00:18:36,200 very much interrelated. It's very complex. 329 00:18:37,480 --> 00:18:40,440 What's the time period that you're thinking of 12 months, 18 330 00:18:40,440 --> 00:18:45,920 months, 24 months, what is the, I think you're having to really 331 00:18:45,920 --> 00:18:49,330 sort of look you're having to? It's interesting. 332 00:18:49,330 --> 00:18:53,090 We did some work on supply chain strategy and how often people 333 00:18:53,090 --> 00:18:55,770 actually thought about their supply chain strategy and 334 00:18:55,770 --> 00:18:58,090 developed it. And this work goes back quite a 335 00:18:58,090 --> 00:19:00,050 number of years. We were doing it in, you know 336 00:19:00,050 --> 00:19:02,770 the the the 20 tens and stuff like that. 337 00:19:02,970 --> 00:19:05,370 And in those days everybody used to be talking about this thing 338 00:19:05,370 --> 00:19:08,530 that Oh yeah, it'll be five year, five year horizon. 339 00:19:08,850 --> 00:19:11,970 And what we're actually finding now is it's sort of yet you'll 340 00:19:11,970 --> 00:19:14,370 have a vision of where you're going, but it's got to adapt. 341 00:19:14,370 --> 00:19:17,570 It's the scenarios, we've got to work through the scenarios. 342 00:19:17,980 --> 00:19:21,180 In terms of what we're doing and and really if I look at supply 343 00:19:21,180 --> 00:19:24,500 chain resilience, so I mean resilience, it's not just about 344 00:19:25,140 --> 00:19:29,540 really important concept and if this is the adaptive capability 345 00:19:29,540 --> 00:19:33,700 of the supply chain and there's really three key areas, prepare 346 00:19:33,820 --> 00:19:39,500 for unexpected events, respond to disruptions and recover from 347 00:19:39,500 --> 00:19:42,820 them by maintaining continuity of operations. 348 00:19:43,060 --> 00:19:46,820 So it's prepare, respond and recover. 349 00:19:47,390 --> 00:19:50,870 And that requires, if you like that that that scenario 350 00:19:50,870 --> 00:19:54,710 planning, How often do you take your supply chain teams through 351 00:19:54,830 --> 00:20:02,150 a sort of a a simulation of what would happen if this took place. 352 00:20:02,350 --> 00:20:06,950 What would happen if a volcano went off again in Iceland and 353 00:20:07,110 --> 00:20:09,750 and grounded grounded air freight again. 354 00:20:09,750 --> 00:20:15,510 What would happen if the the ports got, you know, shut down 355 00:20:15,510 --> 00:20:18,020 or? Suez Canal, These are the types 356 00:20:18,020 --> 00:20:21,700 of things we need to do now. We've seen those come along. 357 00:20:22,020 --> 00:20:24,740 And the problem is, with many organizations, they're very 358 00:20:24,740 --> 00:20:28,260 short memories. So corporate memory isn't very 359 00:20:28,260 --> 00:20:30,860 long. That becomes really important. 360 00:20:30,860 --> 00:20:36,070 It's how do we actually learn and create that that philosophy 361 00:20:36,070 --> 00:20:40,510 which we can really think about have front of mind our supply 362 00:20:40,510 --> 00:20:43,030 chain resilience as we're moving forward. 363 00:20:43,030 --> 00:20:46,870 And I think it's interesting because I launched oh gosh it is 364 00:20:46,950 --> 00:20:53,190 just over a year ago now this on LinkedIn learning supply chain 365 00:20:53,190 --> 00:20:54,830 fundamentals, risk and resilience. 366 00:20:54,830 --> 00:21:00,640 So it's 90 minutes, 26 short videos, just taking people 367 00:21:00,640 --> 00:21:02,800 through the basics. And I had to make it really 368 00:21:02,800 --> 00:21:06,440 accessible to everybody because I believe that this is about who 369 00:21:06,440 --> 00:21:09,680 you are in a business. Yeah, you've got to understand 370 00:21:09,680 --> 00:21:12,480 supply chain resilience because if you're in an HR, human 371 00:21:12,480 --> 00:21:15,720 resources department, for example, you will have an impact 372 00:21:15,760 --> 00:21:18,280 on supply chain resilience through the people you actually 373 00:21:18,280 --> 00:21:21,720 recruit into the business. So you need to have an 374 00:21:21,720 --> 00:21:24,480 understanding of some of the issues which are going on. 375 00:21:24,480 --> 00:21:28,330 And what's interesting about that is we, we have tools which 376 00:21:28,330 --> 00:21:30,330 have been available to us for years. 377 00:21:30,330 --> 00:21:34,290 We've got international standards on risk management and 378 00:21:34,290 --> 00:21:38,650 we can use those with the supply chain viewpoint and perspective 379 00:21:38,850 --> 00:21:41,490 and that will really help us. We've got international 380 00:21:41,490 --> 00:21:43,690 standards on business relationships. 381 00:21:43,690 --> 00:21:45,450 Pie chain management is all about management of 382 00:21:45,450 --> 00:21:48,130 relationships. But these things don't happen by 383 00:21:48,130 --> 00:21:51,010 accident. We have to actually work at them 384 00:21:51,010 --> 00:21:54,610 and plan them and have a process in place to help develop them. 385 00:21:54,650 --> 00:21:58,620 So those are available. So all these things enable us to 386 00:21:58,620 --> 00:22:03,700 go through that sort of prepare, respond and recover and get that 387 00:22:03,700 --> 00:22:06,420 way of working embedded into our businesses. 388 00:22:06,780 --> 00:22:09,500 And I mean it's just, it's just it's just really important. 389 00:22:09,500 --> 00:22:14,620 I mean what's been great about that is it's had over 17,000 390 00:22:14,620 --> 00:22:18,300 people have completed that well. And I just think about that will 391 00:22:18,300 --> 00:22:23,780 have big impact whole shit or chain resilience globally 392 00:22:23,940 --> 00:22:25,660 hopefully in a very positive way. 393 00:22:25,660 --> 00:22:29,540 But it's getting different businesses thinking about it and 394 00:22:29,940 --> 00:22:33,980 getting this front of mind when when we're actually doing things 395 00:22:33,980 --> 00:22:36,260 that that's the importance of what we're trying to achieve 396 00:22:36,260 --> 00:22:37,820 with this. If you go through the course, 397 00:22:37,820 --> 00:22:41,260 what you start to realize is, is this is not something for a team 398 00:22:41,260 --> 00:22:45,300 or an individual to do to a business exactly. 399 00:22:45,300 --> 00:22:49,830 So it's it's like if you go back a couple of decades, remember 400 00:22:49,830 --> 00:22:53,750 total quality management and how you'd have a quality department. 401 00:22:54,550 --> 00:22:57,270 Now many companies are going to do not have a quality 402 00:22:57,270 --> 00:22:59,390 department. It's just business as usual for 403 00:22:59,390 --> 00:23:02,030 everybody. Everybody has that embedded, 404 00:23:02,030 --> 00:23:05,070 that way of thinking, that culture and I think that's 405 00:23:05,070 --> 00:23:08,390 really important. You need a supply chain risk 406 00:23:08,390 --> 00:23:11,270 management culture in your business. 407 00:23:11,880 --> 00:23:15,040 And what I say to people is, is culture, but the simple 408 00:23:15,040 --> 00:23:17,920 definition which upsets all of my academic colleagues, but I'll 409 00:23:17,920 --> 00:23:22,800 use it anyway, which is culture is what people do in the absence 410 00:23:22,800 --> 00:23:25,880 of instruction when they're under a bit of pressure. 411 00:23:25,880 --> 00:23:27,280 So how does the business respond? 412 00:23:27,360 --> 00:23:29,800 It's under a bit of pressure. Are they thinking supply chain 413 00:23:29,800 --> 00:23:33,080 risk or are they just thinking, oh, I need to get my bonus or 414 00:23:33,080 --> 00:23:35,440 something else? Are they thinking that? 415 00:23:35,680 --> 00:23:39,280 And what we have to think is, is if everybody says so you're in 416 00:23:39,280 --> 00:23:44,580 this and you ask the question, how will this change the risk 417 00:23:44,580 --> 00:23:48,100 profile of the supply chain? How will it change the risk 418 00:23:48,100 --> 00:23:50,740 profile of the supply chain? So I'm going to start sourcing 419 00:23:50,740 --> 00:23:54,020 from India rather than China. So how's that going to change 420 00:23:54,380 --> 00:23:56,180 the risk profile of the supply chain? 421 00:23:56,180 --> 00:24:00,900 I'm going to introduce these new financial metrics on the 422 00:24:00,900 --> 00:24:03,940 business. How will that change the risk 423 00:24:03,940 --> 00:24:06,380 profile of the supply chain? Because it's going to mean that 424 00:24:06,380 --> 00:24:10,330 people are going to be focusing on this issue rather than 425 00:24:10,570 --> 00:24:15,250 something over here. I'm going to recruit these types 426 00:24:15,250 --> 00:24:19,850 of people into this particular role and how will that change 427 00:24:19,850 --> 00:24:21,930 the risk profile of the supply chain. 428 00:24:22,250 --> 00:24:26,890 So if you start asking that type of question it becomes becomes 429 00:24:26,890 --> 00:24:31,330 quite important then as you're as as you're moving forward 430 00:24:31,330 --> 00:24:33,530 this. So we're starting to see this 431 00:24:33,530 --> 00:24:36,910 whole, this whole sort of concept coming and this is a 432 00:24:36,950 --> 00:24:40,310 lovely term which DHL has been talking about. 433 00:24:40,310 --> 00:24:44,430 They talk about supply chain diversification and it's 434 00:24:44,430 --> 00:24:49,590 developing flexibility and redundancy to minimize risk and 435 00:24:49,590 --> 00:24:52,510 increase agility. So, so really it's this 436 00:24:52,510 --> 00:24:55,870 flexibility and redundancy. So when you look at a supply 437 00:24:55,870 --> 00:25:00,110 chain, it's, it's that network. How do we keep it healthy, how 438 00:25:00,110 --> 00:25:02,690 do we keep it healthy? And I was sort of reflecting on 439 00:25:02,690 --> 00:25:04,570 some of this. I came up with this bit like 440 00:25:05,370 --> 00:25:10,330 high heart bypass surgery. We we put in a little vein here 441 00:25:10,330 --> 00:25:14,890 and a little vein there so that we can maintain the flow to keep 442 00:25:15,210 --> 00:25:19,290 keep the heart healthy. And that's what we're having to 443 00:25:19,290 --> 00:25:22,210 think about is supply chains. Now in terms of creating that 444 00:25:22,210 --> 00:25:25,730 resiliency you might have, well, we want to use that main flow 445 00:25:25,730 --> 00:25:27,970 for the majority of the time, but I need to have a few 446 00:25:28,170 --> 00:25:32,620 backups, yeah, because something would happen and I need to think 447 00:25:32,620 --> 00:25:34,940 carefully about that. I do think there's a good 448 00:25:34,940 --> 00:25:38,700 proportion of supply chain leaders who are starting to 449 00:25:38,700 --> 00:25:42,100 really reflect on that and also procurement procurement leaders 450 00:25:42,100 --> 00:25:45,380 as well. I mean it's amazing to see last 451 00:25:45,380 --> 00:25:49,420 night at the at the Charter Institute procurement SPY awards 452 00:25:49,620 --> 00:25:51,900 some of the innovation which is taking place there because 453 00:25:51,900 --> 00:25:54,020 they're having to think a little bit differently because we 454 00:25:54,020 --> 00:25:57,220 talked about multi shoring. It's actually a tough deal. 455 00:25:57,220 --> 00:25:59,940 All of a sudden you're trying to find new markets to find these 456 00:25:59,940 --> 00:26:02,180 things. Do you have the language skills, 457 00:26:02,180 --> 00:26:04,860 Do you have the capability? Do you how, how do you manage 458 00:26:04,860 --> 00:26:09,100 the flows and so on and so forth to keep it all working? 459 00:26:09,340 --> 00:26:12,620 Earlier on in the conversation you you mentioned sustainability 460 00:26:12,620 --> 00:26:14,940 and its impact on the supply chain. 461 00:26:15,100 --> 00:26:17,700 I just wonder if we could just spend one or two minutes 462 00:26:17,700 --> 00:26:21,740 unpacking what sustainability in the supply chain looks like or 463 00:26:21,740 --> 00:26:24,620 what some of the activities within that area. 464 00:26:25,510 --> 00:26:28,710 Yeah, I mean one of the key things that we can actually 465 00:26:28,710 --> 00:26:33,950 start doing is one of the things that is we talk about product, 466 00:26:33,950 --> 00:26:36,430 service, system. So all this technology and all 467 00:26:36,430 --> 00:26:39,830 this digitization is actually moving us away from, if you like 468 00:26:39,830 --> 00:26:44,390 that physical product, so to what we call like a service. 469 00:26:44,390 --> 00:26:46,830 So we're starting to sell services. 470 00:26:46,830 --> 00:26:52,590 So it's servitization is the they talk about the innovation a 471 00:26:52,590 --> 00:26:55,790 number of organizations strategy from products to offering 472 00:26:55,790 --> 00:27:00,550 solutions and product service systems is products and services 473 00:27:00,550 --> 00:27:02,070 delivering value to the customer. 474 00:27:02,070 --> 00:27:06,110 And we're seeing this already be HP printers with getting your 475 00:27:06,110 --> 00:27:09,070 ink cartridges. It's highly reliant on effective 476 00:27:09,070 --> 00:27:13,870 supply chain, Rolls Royce, you pay by hour for the use of the 477 00:27:13,870 --> 00:27:17,710 engines and so on and so forth, buying that physical thing and 478 00:27:17,710 --> 00:27:20,270 so on and so forth. And so what's actually quite 479 00:27:20,270 --> 00:27:23,710 interesting I think from that is, is that when we think about 480 00:27:23,710 --> 00:27:27,830 the product, these these new services that we're offering, 481 00:27:28,430 --> 00:27:31,630 effectively you've got the forward logistics, which is the 482 00:27:31,950 --> 00:27:35,710 lovely supplier to the manufacturer or remanufacturer, 483 00:27:35,710 --> 00:27:38,950 distributor, retailer, customer. But then we've also got the 484 00:27:38,950 --> 00:27:43,830 reverse logistics which might be repair, refurbish, dismantle, 485 00:27:43,830 --> 00:27:46,950 recycle and then back into the supplier. 486 00:27:47,460 --> 00:27:52,780 Now what I find really useful to think about this is, is in the, 487 00:27:52,780 --> 00:27:55,980 if you like the forward logistics, we're really talking 488 00:27:55,980 --> 00:28:00,900 about value being cocreated. So it's the creation of value to 489 00:28:00,900 --> 00:28:03,380 the customer. But the really important thing 490 00:28:03,380 --> 00:28:06,220 then is, is the retention of value. 491 00:28:06,500 --> 00:28:09,780 So that repair, refurbish, dismantle, recycle, it's 492 00:28:09,780 --> 00:28:13,260 actually value being retained. And I think this is what many 493 00:28:13,260 --> 00:28:17,080 companies are starting to see. If we go about this in the right 494 00:28:17,080 --> 00:28:21,880 way, it's not this is a real opportunity for our businesses 495 00:28:22,160 --> 00:28:25,320 rather than rather than something which is going to cost 496 00:28:25,320 --> 00:28:29,240 us money, it's actually retaining value as we go back 497 00:28:29,240 --> 00:28:30,840 through that. And we've just seen recent 498 00:28:30,840 --> 00:28:34,080 announcements, haven't we, from Apple, for example, saying that 499 00:28:34,080 --> 00:28:40,880 they, their watches now are 100% sort of 0 footprint in terms of 500 00:28:41,000 --> 00:28:44,470 using recycled materials and this and the other and I noticed 501 00:28:44,470 --> 00:28:50,950 that cobalt, which is, and I mean their batteries mixed up. 502 00:28:51,190 --> 00:28:54,670 But anyway, they they're basically saying we're not, 503 00:28:55,150 --> 00:28:59,350 we're not using recycled for the next generation of what we're 504 00:28:59,350 --> 00:29:01,190 doing. So there we're starting to see 505 00:29:01,190 --> 00:29:04,830 this value retention and I think that's a really positive way to 506 00:29:04,830 --> 00:29:06,750 think about it. So we think about 507 00:29:06,750 --> 00:29:09,550 sustainability. This is something about 508 00:29:09,590 --> 00:29:13,110 retaining value. How do we retain value rather 509 00:29:13,110 --> 00:29:15,910 than just Chuck it into the ground and forget about it, 510 00:29:16,550 --> 00:29:18,870 retain that from what we're doing? 511 00:29:19,790 --> 00:29:22,710 Yeah. I mean look you can't talk about 512 00:29:22,990 --> 00:29:26,510 the the focus on sustainability without talking about the risk 513 00:29:26,710 --> 00:29:30,390 to the planet, right. In, in the sense that that it's 514 00:29:30,390 --> 00:29:33,790 something that we're trying to mitigate that future risk by 515 00:29:33,790 --> 00:29:38,270 focusing on something that we know the scientifically is 516 00:29:38,350 --> 00:29:40,270 proven that it's going to have an impact on us. 517 00:29:40,270 --> 00:29:44,170 And so the more the circular economy sort of spreads out into 518 00:29:44,570 --> 00:29:49,010 companies like Apple and and the the economy and and I think it 519 00:29:49,010 --> 00:29:54,250 was the donut economy that talks about that circular economy with 520 00:29:54,250 --> 00:29:56,130 people, profit and planet which is great. 521 00:29:56,130 --> 00:29:59,810 But just going back on to risk and how you mitigate that, what 522 00:29:59,810 --> 00:30:02,530 that looks like what what are your what are your thoughts on 523 00:30:02,530 --> 00:30:05,210 that what what where does it start, what's the process of 524 00:30:05,210 --> 00:30:09,100 where does it end. Okay well I mean in you know 525 00:30:09,100 --> 00:30:12,980 simple terms we have to you we we're often having to start with 526 00:30:12,980 --> 00:30:16,020 risk evaluation. And I I generally have three 527 00:30:16,020 --> 00:30:20,580 useful questions to ask. How will this, the risk disrupt 528 00:30:20,820 --> 00:30:24,740 our company and what is the potential financial impact on 529 00:30:24,740 --> 00:30:26,540 the business. So that's a really important 530 00:30:26,620 --> 00:30:30,060 thing financial risk happen. Yeah you know what is the 531 00:30:30,060 --> 00:30:31,580 financial impact. Yeah. 532 00:30:32,020 --> 00:30:35,900 The next thing is, is how long would we be exposed to the 533 00:30:35,900 --> 00:30:39,350 disruption before it can be fixed And that's often another 534 00:30:39,350 --> 00:30:43,190 really interesting thing. So risk is also time dependent 535 00:30:43,230 --> 00:30:47,670 if it's something which. So for me, I had a new router in 536 00:30:47,670 --> 00:30:52,350 my house on Monday and I thought, this is, this is a bit 537 00:30:52,350 --> 00:30:53,750 risky. And I had a meeting that 538 00:30:53,750 --> 00:30:58,360 afternoon and I warned everybody it could go down and everything 539 00:30:58,360 --> 00:31:00,400 was up and running and I thought, this is great, this is 540 00:31:00,400 --> 00:31:03,360 great, this is great. And then bang, everything just 541 00:31:03,480 --> 00:31:06,040 disappeared for about, I don't know what was going on, some 542 00:31:06,040 --> 00:31:08,200 sort of crazy update or something like that. 543 00:31:08,200 --> 00:31:11,600 Anyway, it all dropped out. But how long for me to get 544 00:31:11,600 --> 00:31:13,200 started again? Well, of course it's. 545 00:31:13,360 --> 00:31:17,000 I had a bit of a plan, right? OK, let's make a mobile hotspot 546 00:31:17,000 --> 00:31:18,920 with my phone. At least then I'll be able to 547 00:31:18,920 --> 00:31:21,960 get back into the meeting and get on my laptop and all the 548 00:31:21,960 --> 00:31:24,160 rest of it. So I know that that was quite a 549 00:31:24,160 --> 00:31:28,250 short period of time. How long will be exposed before 550 00:31:28,250 --> 00:31:31,250 it can be fixed? But then also what is the cost 551 00:31:31,250 --> 00:31:34,530 of recovering from a destruction in terms of the emergency 552 00:31:34,530 --> 00:31:37,210 actions we may need to take to fix things. 553 00:31:37,770 --> 00:31:42,410 So it's it's one of those things that what is the cost. 554 00:31:42,410 --> 00:31:45,250 So I'm going to have to what's the worst case, let's say it 555 00:31:45,250 --> 00:31:47,250 didn't come back, what would I have to do? 556 00:31:47,850 --> 00:31:51,650 Well, the cost for me in my simple example is I'm probably 557 00:31:51,690 --> 00:31:55,210 going to have to go and get a, I don't know, one of these sort of 558 00:31:55,210 --> 00:31:59,970 Wi-Fi modem type things which runs on 4G chip or something 559 00:31:59,970 --> 00:32:03,570 like that. So I know that might cost me, I 560 00:32:03,570 --> 00:32:06,770 don't know, £100, right, Yeah, but we have to ask those 561 00:32:06,770 --> 00:32:09,450 questions. How will the risk disrupt our 562 00:32:09,450 --> 00:32:12,050 company and what are the potential financial impact? 563 00:32:12,290 --> 00:32:16,050 How long would we be exposed, Will we be exposed and then what 564 00:32:16,050 --> 00:32:19,160 is the cost of recovering? And you see once we've done 565 00:32:19,160 --> 00:32:22,080 that, we can go into analyzing our exposure. 566 00:32:22,080 --> 00:32:26,160 And that is really it's it's the likelihood, how likely is this 567 00:32:26,160 --> 00:32:30,240 going to happen, what is the impact, but also what is the 568 00:32:30,240 --> 00:32:33,160 difficulty of detection. So if we think about some of the 569 00:32:33,160 --> 00:32:35,800 risks we're having to deal with now cyber particularly somebody 570 00:32:35,800 --> 00:32:39,360 could be sitting in your computer systems harvesting 571 00:32:39,360 --> 00:32:41,400 credit card details for a long period of time. 572 00:32:41,400 --> 00:32:44,400 It could be, it could take, it could be very difficult to 573 00:32:44,400 --> 00:32:47,320 detect okay. And so we're able to great 574 00:32:47,320 --> 00:32:52,080 scores which then focuses in on those really important things. 575 00:32:52,080 --> 00:32:56,760 So you might say it's very low livelihood, very high impact, 576 00:32:57,280 --> 00:32:59,320 but it's not really likely. But actually the difficulty of 577 00:32:59,320 --> 00:33:02,760 detection is massive, massive. So hey, we need to think about 578 00:33:02,760 --> 00:33:06,400 something around that. And then really what we then do 579 00:33:06,400 --> 00:33:09,240 is we have to create what we call risk treatment plans. 580 00:33:09,640 --> 00:33:14,880 And the risk treatment plan is very simply what is going to be 581 00:33:14,880 --> 00:33:17,070 the risk treatment who is responsible. 582 00:33:17,070 --> 00:33:18,790 And this is where many companies fall over. 583 00:33:18,790 --> 00:33:21,710 They don't make anybody responsible for thinking through 584 00:33:21,710 --> 00:33:23,830 this. What is the time frame? 585 00:33:23,870 --> 00:33:26,790 Once again, we're back to time. Many people sort of think this 586 00:33:26,790 --> 00:33:29,870 way to happen and then how will we monitor and review it. 587 00:33:30,150 --> 00:33:33,670 And really there's, there's six key things we can do. 588 00:33:33,910 --> 00:33:35,590 We can remove the risk completely. 589 00:33:36,070 --> 00:33:39,270 We can change the likelihood of course, you might say, well 590 00:33:39,470 --> 00:33:41,590 actually that thing there. What I'll do is I'll go with 591 00:33:41,590 --> 00:33:43,790 another provider or another supplier, because then that 592 00:33:43,790 --> 00:33:47,420 might make it less lightly. We can change the impact. 593 00:33:47,740 --> 00:33:52,140 So one of the examples I use in my LinkedIn courses, we have a 594 00:33:52,140 --> 00:33:55,500 we have a big party and we worry about drinks getting spilled all 595 00:33:55,500 --> 00:33:58,060 over the floors. Well, what I can do to change 596 00:33:58,060 --> 00:34:02,540 the impact is we just have like drinks mopping up stations which 597 00:34:02,540 --> 00:34:05,340 all the family know about hidden around the house. 598 00:34:05,540 --> 00:34:10,820 So if somebody you know drops a, we're on it within within a 599 00:34:10,900 --> 00:34:16,030 fraction of a second changes the impact, we can share the risk, 600 00:34:16,030 --> 00:34:19,350 can we share that with other supply chain partners And then 601 00:34:19,510 --> 00:34:21,870 we might just make the decision we retain the risk. 602 00:34:22,030 --> 00:34:23,790 At the end of the day, we're not going to be able to remove 603 00:34:23,790 --> 00:34:26,469 everything we just say. We just got to retain that and 604 00:34:27,310 --> 00:34:30,310 it might cost us whatever we'll retain it. 605 00:34:30,590 --> 00:34:33,429 But also what we need to be able to do is increase the speed of 606 00:34:33,429 --> 00:34:35,870 detection. So this goes back to all our 607 00:34:35,870 --> 00:34:38,830 digitization analytics. I want to have back in this 608 00:34:38,830 --> 00:34:42,370 monitoring and you know detection across the supply 609 00:34:42,409 --> 00:34:44,730 chain. So by getting those things in 610 00:34:44,730 --> 00:34:49,010 place and thinking through procure for resilience rather 611 00:34:49,010 --> 00:34:51,690 than for cost, you should want thinking about that. 612 00:34:52,010 --> 00:34:56,050 We've got to explore all shoring, near shoring, multi 613 00:34:56,050 --> 00:34:58,450 shoring. As we've said, we have to think 614 00:34:58,450 --> 00:35:00,890 about innovation. But really key to all this is 615 00:35:00,890 --> 00:35:03,330 going back to relationships. As I said, supply chain 616 00:35:03,330 --> 00:35:05,450 management, it's all about relationships, it's 617 00:35:05,450 --> 00:35:07,490 collaboration along the supply chain. 618 00:35:07,820 --> 00:35:10,500 Those companies which did really well, they collaborate really 619 00:35:10,500 --> 00:35:14,660 well and that will actually help you mitigate a lot of the risks. 620 00:35:14,660 --> 00:35:18,820 So we, we painted earlier on quite a bleak picture, but 621 00:35:18,820 --> 00:35:21,540 actually there's a lot of things that we can simply do and if we 622 00:35:21,540 --> 00:35:24,380 can get the culture right within our business with everybody 623 00:35:24,380 --> 00:35:28,340 thinking about how will this impact the risk profile of the 624 00:35:28,620 --> 00:35:31,580 slide chain, all of a sudden it's going to change things. 625 00:35:31,580 --> 00:35:36,430 And what you know, I would love to happen is that everybody in a 626 00:35:36,430 --> 00:35:39,390 business, it doesn't matter who you are, a receptionist or 627 00:35:39,390 --> 00:35:43,550 somebody like that, they just have some understanding of 628 00:35:43,630 --> 00:35:45,790 supply and risk. When we give everybody fire 629 00:35:45,790 --> 00:35:49,230 extinguisher training and fire training and diving and 630 00:35:49,470 --> 00:35:54,670 inclusivity training, well, hang on a minute, that's probably 631 00:35:54,670 --> 00:35:56,230 less likely. Well, it might do. 632 00:35:56,230 --> 00:35:58,150 Is it going to shut your business down? 633 00:35:58,590 --> 00:36:01,510 Your supply chain is probably a higher risk and it could shut 634 00:36:01,510 --> 00:36:02,990 your business down pretty quickly. 635 00:36:03,190 --> 00:36:05,190 So let's actually all get focused around it. 636 00:36:06,040 --> 00:36:08,920 I, I, I love it and and and I'm sure people are now going to be 637 00:36:08,920 --> 00:36:12,920 going on to different search engines to try and find you and 638 00:36:12,920 --> 00:36:16,480 that LinkedIn course. So where can I final thought So 639 00:36:16,480 --> 00:36:19,240 thank you so much. Where can I find out more about 640 00:36:19,240 --> 00:36:22,240 your your what you're thinking and what is the name of that 641 00:36:22,240 --> 00:36:23,920 LinkedIn course. OK. 642 00:36:23,920 --> 00:36:29,800 So the the LinkedIn course is a Supply Chain Fundamentals Risk 643 00:36:29,800 --> 00:36:32,320 and Resilience. It's on LinkedIn Learning. 644 00:36:32,990 --> 00:36:37,150 If you want to find me, you can go to richardwylding.info. 645 00:36:38,150 --> 00:36:41,790 So I've got my own website and of course you'll find me on 646 00:36:41,790 --> 00:36:46,630 LinkedIn as well, so you can use that. 647 00:36:46,630 --> 00:36:49,790 And the last thing about LinkedIn is, I shouldn't be 648 00:36:49,910 --> 00:36:54,550 saying this, but with LinkedIn learning, you can generally get 649 00:36:54,710 --> 00:36:58,910 it comes with LinkedIn premium, but also many corporates have it 650 00:36:58,910 --> 00:37:00,750 as part of their Microsoft agreement. 651 00:37:01,970 --> 00:37:06,050 So yeah, so it's not like you might find your company already 652 00:37:06,050 --> 00:37:10,010 gives you access to LinkedIn learning and you're able to do 653 00:37:10,010 --> 00:37:11,370 it. And there's a great wealth of 654 00:37:11,370 --> 00:37:14,930 stuff going on on there on the supply chain side as well, which 655 00:37:14,930 --> 00:37:18,090 really can help introduce you. So a lot of universities now are 656 00:37:18,090 --> 00:37:22,570 using the courses for prelearning and postlearning. 657 00:37:22,570 --> 00:37:24,290 So students are actually going through this. 658 00:37:24,290 --> 00:37:28,090 There's great opportunity but more importantly my goal is 659 00:37:28,330 --> 00:37:31,450 challenging and inspiring business and supply chain 660 00:37:31,450 --> 00:37:34,490 leaders to innovate. So what I want people to do is 661 00:37:34,490 --> 00:37:37,570 go through these things and then take it into their world and 662 00:37:37,570 --> 00:37:40,090 really innovate with it, create some value out of it. 663 00:37:41,170 --> 00:37:44,370 I I I'm sure they will. And one thing I will ask is will 664 00:37:44,370 --> 00:37:48,730 you come back in maybe three months or as we coming into 24 665 00:37:49,010 --> 00:37:52,250 and just have another conversation about the the the 666 00:37:52,250 --> 00:37:54,450 things that we should be focused on. 667 00:37:54,450 --> 00:37:57,410 Because I think it's it's through conversation and having 668 00:37:57,410 --> 00:38:00,900 things at top of mind we can impact and have an an impact on 669 00:38:00,900 --> 00:38:03,580 culture, which is ultimately what what what we're trying to 670 00:38:03,580 --> 00:38:05,340 do. So was that a yes, You'll come 671 00:38:05,340 --> 00:38:06,500 back? Yes, it will be a pleasure. 672 00:38:06,500 --> 00:38:08,020 It will be a pleasure to come back. 673 00:38:09,140 --> 00:38:10,300 Thank you. Professor Wilder. 674 00:38:10,300 --> 00:38:11,100 Thank you so much.