00:03what have you seen as the impact really
00:06of e-commerce and the internet on on the
00:08supply chain and on how it works yeah
00:10well I think you want to start with the
00:12with the customers with all of us and
00:14the internet has really put us us you
00:16and me and everybody else out there in
00:18charge in a way that we've never seen
00:21um that the world you know in the in the
00:23era of mass media companies
00:26only would run a television ad
00:29for whatever product they were selling
00:31and then they would just kind of pump
00:33that down in your throat and they only
00:35needed to have a limited number of skus
00:36whatever was on television basically
00:38customers didn't have a lot of choice
00:40they could buy this you know the
00:41Energizer or the Duracell and there were
00:43two choices for web battery and there
00:45happened to be in the stores and you and
00:47so you the brands were in control those
00:49who could afford mass media were in
00:51control now with the internet there's
00:54just like a million choices you have
00:55every kind of possible brand of battery
00:58that's out there a battery is probably a
00:59weird case but still for every product
01:01category there's a million choices
01:03everybody's unique you can get the thing
01:06that matches your own personal taste
01:08um you were in charge as well in that
01:11they better have that product now
01:13you're not willing to wait a week like
01:15in the Sears catalog you're uh you can
01:18order and you get it in three weeks well
01:20you're gonna go out of business if you
01:21can't deliver you know it's becoming
01:23two-hour delivery like if you can't
01:27um and so that is a very different
01:29supply chain and what's happened is
01:31companies that haven't been able to run
01:33a supply chain that's that responsive
01:34that can have many a wider assortment of
01:38choices because we're all unique and we
01:40want our choices and and and have it
01:43sort of edge cached to use an internet
01:46analogy like a CDN like you want to have
01:48these Goods like close to the customer
01:50so that it can get there really really
01:51fast the old world you could have one
01:53Distribution Center in the middle of the
01:55United States and distribute out to your
01:58store network from there uh but it
02:00didn't have to be like super responsive
02:01to customer demand customer demand was
02:03pretty predictable kind of always bought
02:05the same number of these batteries or
02:07whatever product uh and and it was it
02:09didn't have to be very agile the modern
02:11world all of a sudden
02:13there's this proliferation of Brands and
02:15it all has to be stored close to the
02:16edges so custom so Brands need to have
02:18multiple fulfillment centers uh you need
02:21about five fulfillment centers to get
02:23two-day delivery Nationwide and you need
02:25probably to do next day it's more like
02:2816 fulfillment centers and you want to
02:30do same day well you need one and almost
02:32every ZIP code right uh if you want to
02:34have two hour delivery so that's a
02:37really really different configuration of
02:38supply chain and now
02:40um you want to be able to get to that
02:42world where you're doing same day or
02:44next day delivery you now need to load
02:46balance your inventory because if you
02:47put too much inventory out there and it
02:49doesn't sell you're going to go bankrupt
02:51right you're sitting on all this working
02:52capital it's inventory that's not
02:54earning a return too little and you lose
02:57the customer and they'll never come back
02:59right they buy your competitors brand
03:00and so that's the fundamental problem
03:02and these Logistics teams don't even
03:04really at the typical brand don't even
03:06really know that that's the problem
03:07they're solving they're they're just
03:09still used to a world where all they
03:12care about is the price of freight
03:13uh and they want to buy the cheapest
03:15rate and that's what they think their
03:16job is when their job has become how do
03:19I ensure a customer experience how do I
03:22enable our sales and marketing to have
03:25the product in stock
03:26uh so that they can win those customers
03:28be a growth engine and a customer
03:30experience engine and then how do they
03:32Empower their CFO yeah to not sit on too
03:36um and so it's a really different
03:37proposition and frankly most of the
03:40it that that we grew up with these
03:43iconic brands have been going bankrupt
03:44left and right if you Google retail
03:47apocalypse and just look like the number
03:50of companies that have failed that are
03:52iconic brands that we grew up with it's
03:55um and I don't think it has to be that
03:57way so one of our we kind of have dual
03:59purpose here one is help the new age of
04:02Brands rise up and not need to hire this
04:04big Logistics supply chain team who just
04:06pushes paper and you know just all they
04:10care about is the price of freight but
04:11actually it's empowered to solve these
04:13problems without hiring a big team
04:14because you don't need it anymore you
04:15kind of Outsource that to the cloud
04:17um that's that's one aspect of what we
04:19do we help these small businesses grow
04:20really fast without the bureaucracy the
04:22other is how do you help these
04:23Enterprise Brands these famous companies
04:25transform themselves through a world of
04:27e-commerce and not die and I think that
04:29both of these are really important
04:30missions for us yeah and in some sense
04:32the second one I think can almost be
04:34harder and I've heard you say kind of in
04:37um that like one of your goals is to
04:38make the supply chain like as resilient
04:40and reliable as the power grid yeah you
04:43know it's like one thing to do that you
04:45know in the in normal times it's another
04:47thing to do it as you kind of have like
04:48a pandemic occurring you know you now
04:51have like a war in Ukraine that are
04:52creating these kind of delays and
04:53disruptions and shortages that we that
04:56we read about how like what will it take
04:59to get the supply chain kind of to that
05:01point and in particular kind of because
05:03you're talking about an architectural
05:04shift really in the supply chain
05:07um what will it take to help those
05:09Legacy players get there uh well the
05:11fundamental problem in supply chain is
05:13that it is it that word chain um that
05:16there's there's many companies in fact
05:17on a typical transaction where we're
05:20moving let's say a pallet of goods cubic
05:22meter of goods from a factory in pick a
05:27city in Hangzhou China to St Louis
05:31Missouri if you on a transaction like
05:34that you'll have is at least 12
05:36companies that either touch the goods
05:40or are involved providing Capital like a
05:43trade Finance or a letter of credit
05:45cargo insurance and of Bank payments uh
05:4912 at least 12 and as many as 20
05:51companies involved in that transaction
05:53and so you get information
05:56bottlenecks the goods bottlenecks are
05:59famous and we see the ships waiting
06:01offshore and all the problems but what's
06:03happening in parallel is that the good
06:04the data is not flowing that people at
06:07each stage are having to re-key data
06:09into a system or not bothering uh
06:12forwarding PDFs we call it Freight
06:14forwarding I often joke it should be
06:15called Freight email forwarding because
06:17you're just emailing attachments between
06:18all these different companies and trying
06:21um and so it leads to in a sub-optimal
06:24decision making if you don't if you had
06:27perfect information you would be able to
06:29make sure that that truck is waiting at
06:31the airport when the plane lands or at
06:34the seaport when the container shows up
06:36and you would get it all dialed in and
06:38you know every truck would be scheduled
06:40appropriately and you would be
06:41re-planning every five minutes so that
06:44if there's any delay you're like
06:45automatically generating a new plan and
06:47reallocating containers almost none of
06:49that can happen because there's not a
06:51system it's it's 12 different companies
06:53each running their own I.T system or
06:56many cases guys with clipboards and
06:59warehouses like no I T system at all or
07:02um and so what there's two possible
07:04solutions to this one is a giant mega
07:06corporation owns all the assets
07:08door-to-door and creates one it backbone
07:12uh the other is use machine learning and
07:15data science and make it in the interest
07:17of these asset owners to participate to
07:20come onto the platform almost like data
07:22is the new kind of killer asset it it
07:24should be and you should be able to
07:27really generate insights the more
07:29transactions that are flowing the
07:30smarter you get how do we how are we
07:32going to Route this container yeah no in
07:34advance oh you know what there's
07:35actually a bottleneck in LA right now
07:37let's route it through Oakland yeah um
07:39things like this that you know the
07:40industry hasn't been that good at it was
07:42really interesting to watch last year
07:44um we had 100 container ships waiting
07:45off the port of LA and only five waiting
07:48off the coast of Oakland here in the bay
07:50you're like why don't it's it's you have
07:52to go past Oakland to get to La why
07:55don't they stop you know I just unload
07:57the stuff and and it's hard they don't
07:58have the data they're not able to
08:00communicate in real time make agile
08:02decisions Etc so but that's going to be
08:04the future is actually like using Tech
08:06and using data to to Route Assets in a
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