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Peak in a Pandemic: Removing Boundaries to Deliver a Successful Holiday Season

Peak in a Pandemic: Removing Boundaries to Deliver a Successful Holiday Season

Released Wednesday, 22nd July 2020
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Peak in a Pandemic: Removing Boundaries to Deliver a Successful Holiday Season

Peak in a Pandemic: Removing Boundaries to Deliver a Successful Holiday Season

Peak in a Pandemic: Removing Boundaries to Deliver a Successful Holiday Season

Peak in a Pandemic: Removing Boundaries to Deliver a Successful Holiday Season

Wednesday, 22nd July 2020
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Episode Transcript

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0:09

Welcome to "All Business. No Boundaries", a collection

0:12

of conversations by DHL Supply Chain,

0:14

the North American leader in contract logistics.

0:17

I'm your host, Will Heywood. This is

0:19

a place for in depth discussions on the supply

0:21

chain challenges that keep you up at night. We're

0:24

breaking beyond the boundaries that limit your supply

0:26

chain. Let's dive in. Today's

0:28

episode is peak in a pandemic,

0:30

removing boundaries to deliver a successful

0:33

holiday season. Let me introduce my guest, Kraig Foreman,

0:36

president of e-commerce at DHL supply

0:38

chain. Welcome, Kraig.

0:40

Thanks, Will. Thanks for having me, looking forward to the conversation.

0:42

Good, and Larry Landtiser is

0:44

Senior Director of Operations also

0:46

in DHL Supply Chain's E-commerce

0:48

organization. Larry, I'm happy to have you

0:51

and thanks for making the time.

0:52

Absolutely, Will, looking forward to it.

0:53

Okay, great. So, Kraig, I'd like to start with you,

0:56

just on the basics. So, how do you

0:58

define peak season? And maybe

1:00

I'd like to answer that question in the context

1:02

of, you know, historical brick and mortar

1:04

retailing.

1:06

I think before I just jump into that, Will, I think it's probably

1:08

worth just talking a little bit about

1:10

peak season and E-commerce, and what it means to DHL. Most

1:14

of the audience may not know this, I know you're aware of this

1:16

Will, but DHL has just recently,

1:18

the supply chain organization in North America, has just

1:20

recently made some organizational changes,

1:22

due to the importance of this aspect

1:24

and this topic that we're discussing here, E-commerce.

1:27

I understand the importance of it for our business, but

1:29

also for the industry as a whole has decided

1:32

to split off our E-commerce

1:34

and multichannel omni-channel businesses

1:36

into a separate business unit and sector

1:38

to focus on that for the success of our

1:40

customers and our potential customers. I'm

1:43

privileged enough to be leading that new business unit

1:45

and sector. Larry is part of that team as

1:47

well. The reason why I call that out is

1:49

because it is things like peak season

1:51

that makes this business different

1:53

and unique and the success that we

1:55

need to have and that our customers in the industry

1:58

need to have is extremely important.

2:00

So, having people focus on

2:02

that and nothing but that, can be the difference

2:05

in such a challenging environment. This

2:07

year isn't going to be any different. In fact, it is

2:09

likely going to be heightened materially, which

2:12

kind of brings me into what peak season is to

2:14

us. There are many different spikes

2:16

that happen during the course of the year, but

2:19

in the E-commerce industry and business, peak

2:21

season, is traditionally the

2:23

time from Thanksgiving to the

2:25

shipping cutoff or parcel prior

2:27

to the Christmas holidays. It's that time frame,

2:30

that is an extreme volume

2:32

surge in the industry and in the marketplace from

2:34

consumers, that all retailers

2:37

and online sellers are experiencing

2:39

the same time, which makes the infrastructure

2:41

and capacity demands, and the people demands

2:44

escalated two at a time, like no other

2:46

in the business during the course of the year and

2:48

create such a competitive environment. That's

2:50

where it's very, very important to win.

2:53

If you compare that to the traditional retail,

2:55

traditional retail, being the concept of

2:57

you ship a bunch of inventory forward,

3:00

deployed into stores and allow the consumers

3:02

to go and pick their own orders and buy their

3:04

own stuff and take it home with them. In

3:06

the world of E-commerce, we have eliminated

3:09

all that work activity and taking the consumer

3:11

behavior when they click on the website at home

3:13

or on their app, it directly brings

3:16

that work content to us in our

3:18

fulfillment centers to try and achieve.

3:20

That work is just continuing

3:23

to scale in size

3:25

and nature, from the consumer behavior.

3:27

It takes a certain amount of stress

3:30

on infrastructure and on capability

3:32

, when you're competing against others,

3:34

they're trying to do the same thing, but it's also

3:37

a time of year for retailers that because

3:39

of that stress and the amount of sales that

3:41

happen, it makes their financial year,

3:44

and therefore they cannot afford to

3:46

not be successful at that time frame. We,

3:48

as DHL Supply Chain's fulfillment

3:51

partner, filling those orders

3:53

for them, enabling that success for them

3:55

is extremely important. So, failure is not an option.

3:57

Failure not being an option means

3:59

that we live and breathe peak season all

4:01

year round with everything that we do , the

4:04

way that we design operations, the way we design

4:06

buildings, our operating philosophy,

4:08

how we project plan in many

4:11

different facets to be ready for peak season,. We

4:13

take 10 to 11 months a year to plan

4:15

for it, and one to two months to execute

4:17

it. We work on it all year long.

4:20

Good. Thank you for that. Larry, I wondered

4:22

if you might help us understand the scale

4:24

of the challenge, maybe with some statistics and

4:27

numbers, and first from the demand standpoint,

4:29

I mean, what kind of increase are you seeing from

4:31

a volume through the sites during

4:33

the peak season? And then, you

4:35

know, from an operational standpoint, what does that

4:37

mean in terms of number of people you're bringing

4:39

into sites, operating hours, any

4:42

of the things that, you know, we need to bring to bear

4:44

as a business to deliver successfully?

4:47

Sure. Typically, when we're

4:49

talking about peak season, you're talking about

4:51

anywhere from a five to one, to

4:54

a twelve to one ratio of your normal

4:56

business and from a head count perspective,

4:59

that can mean anywhere from a couple hundred

5:01

to a couple thousand people that you need to

5:03

bring into your building in your operations

5:06

for that peak season time of the year.

5:09

When we talk about peak season, you know, it

5:11

really is a year long process. And

5:13

as quickly as we try to take

5:15

a peak season down in January, we're

5:18

trying to get those lessons learned in

5:20

that February, March time frame, and the

5:22

planning begins for the next peak season.

5:25

The amount of detail that has to

5:27

go into a peak season plan,

5:29

when you're trying to scale a business

5:32

by that ten to one ratio, twelve to one

5:34

ratio, with that many people that you're bringing

5:36

in, could mean also that you're going

5:38

from a simple one to two day operation, during

5:41

the week, to a seven day operation

5:44

in that peak time frame. With that,

5:46

you are competing against all

5:48

these other retailers and E-Commerce businesses

5:51

that are also trying to go

5:53

after the same type of volume and

5:55

the same type of people that we are, and

5:57

so really there's a high level of focus

5:59

on, really a couple key segments

6:02

that we utilize to be sure

6:04

that we're able to execute that strategy.

6:07

There's an HR strategy around,

6:10

you know, labor and how many people that we need, the

6:12

market that we're dealing with, any

6:15

type of market constraints or conditions

6:17

that would make us have to do anything different

6:19

to make sure that we're attracting the right people into

6:22

our business. There's an execution

6:24

component around our operational

6:26

and production strategies, how

6:28

we're going to actually operate moving

6:30

from, you know, for instance, a one to two

6:33

shift operation to a three shift operation,

6:35

and an engineering capacity, like Kraig said,

6:38

where you're looking at, how am I going

6:40

to scale a business from five to

6:42

one or ten to one, and make sure

6:44

that I'm doing all these things from a conceptual

6:46

standpoint or rate of flow, to be sure that

6:49

that facility is prepped and ready to go

6:51

and able to execute for that customer.

6:54

Good. So say more about the HR side.

6:56

I mean, it sounds to me like a

6:58

big challenge to attract

7:00

and onboard and you know, effectively

7:03

train short term workforce. How

7:05

does that play out in your operations?

7:07

We will still try to bring in those

7:10

associates that we're going to have support

7:12

us in executing a peak season strategy.

7:15

They're going to receive all the same

7:17

levels of training that our full time

7:19

associates, that are in those buildings year round.

7:22

What we try to do, is try to create

7:24

an opportunity for them to come in

7:27

and learn specific parts of the operation,

7:29

where they can impact us the greatest, without

7:32

having to learn the whole business. It requires

7:35

the same level of complexity,

7:38

that the normal associate would get, but we're

7:40

able to break this up and to understand,

7:43

associates coming into the building, where

7:46

they're going to have breaks, or they're going to eat

7:48

their lunch. All of those components have

7:50

to come into a plan, to be sure that

7:52

we're bringing in the right amount of associates

7:55

each week, and measuring their

7:57

level of effectiveness in the building,

7:59

in order for them to give us the greatest impact.

8:02

I think, Will, it's probably worth just outlining

8:05

that when Larry's

8:07

talking about these plans, they're being done, and

8:10

these plans are being detailed at every single

8:12

one of our peak season operations,

8:14

but when you accumulate that impact across

8:16

our E-Commerce sites in the U.S.,

8:19

we're talking about bringing on eight to ten thousand people

8:21

for that period of time. That's the

8:23

coordinated effort of making

8:26

sure that we are doing the right things to

8:28

train individuals, to give them confidence

8:30

in what they're doing, and capability in what they're doing,

8:33

giving them a good experience and associate

8:35

experience that's positive, that makes them

8:37

want to come back every year and

8:39

making sure that our brand is strong

8:41

for associates to be compelled

8:44

to apply and want to be a part of what we're doing

8:46

for these seasonal opportunities.

8:49

That's taken years of

8:51

work to make sure that that reputation and

8:53

capability is out there. Every year,

8:55

we have to work extra hard to

8:58

make sure that we do not lose the momentum

9:00

on that strength of brand on the seasonal

9:02

recruiting.

9:03

So you do get a lot of repeat workers coming

9:05

in?

9:08

We do. It varies by market, by

9:10

building, by size of workforce.

9:12

But, you know, we can see 40

9:15

to 50 percent of our seasonal

9:17

teams returning year on year.

9:19

The increase of the flex

9:21

up of, I think you said about nine thousand,

9:24

what's the base operation headcount?

9:27

That's probably off of a base of around six thousand.

9:30

We're going up another eight to ten thousand. So, we're more

9:32

than doubling our workforce during that time frame in our

9:35

heavy E-commerce peak season operations.

9:37

Larry, can you explain , your view

9:40

on the difference between peak season and

9:43

other parts of the calendar year, where

9:45

there may be volume spikes,

9:47

like back to school is going to be coming up

9:49

here, how are those things similar and

9:51

different?

9:53

We'll call them a promotion or an event. They

9:55

could be anywhere around, back to school, as you said,

9:58

or they could be around a holiday or a warehouse

10:00

sale. Typically, what

10:02

we see there, is they are just a

10:04

smaller influx of volume

10:06

into the building, you know, two to one or three

10:08

to one ratio and typically for

10:11

a shorter period of time. I think the

10:13

other piece around that, that's important

10:15

is they're not during peak

10:17

season, so resources are

10:19

generally more available during that time frame,

10:21

which allow us to, you know,

10:23

readily bring people into the building

10:26

for a shorter period of time. That could be a labor

10:28

share opportunity within our own campuses,

10:30

you know, and get through those promotions, which

10:32

typically are not testing

10:35

the facility and the engineering and

10:37

the buildings, like a peak season does.

10:39

Got it. Got it. Kraig, we've

10:41

talked a lot about building capacity

10:44

with labor. I wondered if

10:46

you had any comments on

10:49

how DHL is thinking about capacity

10:51

through automation and automating technologies.

10:54

We had a episode earlier in

10:56

the series with Adrian Kumar about

10:58

digitalization. I just wonder how that

11:00

plays out to accommodate peak

11:02

volumes.

11:03

Yeah, that's a, that's a great topic because

11:05

it's a real focus and strategy

11:08

for us to continue to enhance because there's been so

11:10

much evolution over the last year

11:12

to two years on this digitization

11:15

opportunity compared to what we've historically

11:17

dealt with, in my view. If you go

11:19

back, you know, five to ten years ago,

11:21

it was always focused on building

11:24

infrastructure that bolts down, that

11:26

allows you to meet your expected growth

11:28

needs on that peak day. And

11:30

you're building sorters and conveyors and

11:33

a lot of mechanization to enable

11:35

that to happen. We've really evolved

11:37

since then. The technology,

11:39

where it's going, is going to allow us to continue

11:41

to evolve. There's so

11:43

much more intelligence out there from a systemic

11:46

standpoint between warehouse execution systems

11:48

and different flow systems that are out

11:50

there, coupled with AMR technology.

11:54

All of which really means that

11:56

there's the ability to flex more effectively

11:59

with different tools, with a

12:01

lower headcount than our traditional

12:03

operating solutions, which really makes

12:06

peak season an increased viable opportunity.

12:08

The timing is important because peak seasons are

12:10

getting more peaky, and having

12:12

this technology come and help offset that

12:15

consumer behavior impact that's happening, and the

12:17

service level impacts that are happening,

12:19

is extremely important. So, we're doing a lot

12:21

of work right now with different AMR

12:24

concepts, such as locus that you would have heard Adrian

12:26

talk about in the previous podcast, along

12:28

with different systemic technology.

12:31

We're trying out and working on

12:33

pilots for a lot of future technology,

12:35

which I won't talk about at this point in time, but again

12:37

is groundbreaking and going to be changing

12:40

our industry and our operating approach

12:42

as we know it today. I think the last

12:45

thing I would bring into it is the

12:47

enhancement and capability that we've brought

12:49

into the business for peak planning and peak execution

12:52

around analytics. Analytics

12:54

have become a very large component

12:57

for what we're doing, whether that be in

12:59

our planning process, in our

13:01

forecasting of impacts

13:03

to operational components

13:05

and to predictive analytics on what we can

13:07

expect to happen across profile.

13:10

A lot of those different elements allow us to

13:12

be more prepared and even to react

13:14

when we're seeing business come in,

13:16

that may be different than what we thought, you know, our

13:19

analytics team can tear that apart pretty quick

13:21

and really give us the DNA of what we're dealing

13:23

with to be able to react quickly, and all those

13:25

are are game changing when it comes to technology

13:28

and thought process on how we become

13:31

smarter on the way that we approach these peak seasons.

13:33

So could either of you provide an example

13:35

or two of where analytics or

13:38

automation has really delivered

13:40

some benefits, either most recent

13:42

peak season or what you're expecting

13:45

for this coming year?

13:46

Yeah, I can give a series

13:48

of different examples of where analytics

13:51

has helped us in our HR

13:53

strategy, where we're able to do more predictive

13:55

analytics on the success of where we obtain

13:57

people in what specific markets and what

14:00

specific zip codes, and what

14:02

advertising traunches are making the most

14:04

impact and predicting

14:06

what that will do as we're moving

14:08

forward. We're also using analytics

14:10

on forecasting skew

14:13

impacts, associated with consumer behavior, on

14:16

our customer's offerings, and what

14:18

that will do within the time

14:20

of day, that offerings are being

14:22

made and what our profile shift will be

14:25

in preparation and predicting what that profile

14:27

ship will be, allowing us to prepare

14:29

for the change of throughput processing

14:32

that we're going to need to be doing at

14:34

different points in time of promotional

14:36

activity. Those are all things from an analytics

14:39

standpoint that are simplistic

14:41

examples to share, automation

14:44

continues to be a big factor for us

14:46

and simplistic user interface, so

14:49

anything that we can bring in that allows training to

14:52

be faster and more effective for our associates,

14:54

that are especially our seasonal associates, in

14:56

a simplified work content, which,

14:58

you know, are simple things like

15:01

where we run locus, you know, we can

15:03

flex up at peak season with additional

15:05

robots at a higher rate than we need

15:07

to our associates, and those associates

15:10

that we do need to bring on the training

15:12

uptime on a locus bot to learn how to pick,

15:14

when they're dealing with a tablet on

15:16

the robot, telling them what to do in whatever

15:19

language we want the robot

15:21

to engage them with, just really

15:23

changes the game for our readiness of associates

15:26

and how many associates need to

15:28

be impacted by a scaling of volume.

15:30

I'm curious about that and maybe Larry, locus

15:32

or some other technology that makes

15:35

sense and supports Kraig's point. Can you

15:37

explain how our workforce

15:40

uses these technologies? I think that

15:42

the user interfaces are simpler

15:45

than they were a number of years ago, but I

15:47

wondered if you could just maybe give an

15:49

example of a technology that you've been able to

15:52

implement and train a workforce on in a pretty

15:54

efficient way.

15:55

I think locus is a really good example,

15:57

you know, in a lot of our E-commerce operations,

16:00

typically associates would be

16:02

picking or pulling equipment in

16:04

order to fill that equipment into

16:06

a tote, for example. You know,

16:08

we don't look at technology and our associates

16:10

don't look at technology as anything other

16:12

than trying to assist them and helping them make their job

16:15

easier. When you take locus as

16:17

an example, when an associate

16:19

has to pull a cart for eight hours

16:22

or has to turn into corners for eight hours,

16:24

number one, it's creating a fatigue factor

16:26

for them. And number two, it makes

16:29

the area a bit less unsafe.

16:31

So, we can take those components

16:33

and add technology like locus that allow them

16:35

to be at the right spot for instance,

16:37

in peak season. When we talk

16:39

about peak season, when we bring in new associates

16:41

into a building, you know, again, we're trying

16:44

to bring in a couple thousand

16:46

associates and get them into a building

16:48

and be effective. When you're talking

16:50

about some of our facilities, that are

16:53

extremely large and have a mapping sequence

16:55

that could be in the thousands. If I have

16:57

a robot that can go straight to the location

16:59

that they need to be to, I'm making their job

17:02

more simple. So, when you take it from

17:04

that perspective, take the safety opportunities

17:07

with locus and take the fatigue factor

17:08

out, it really is something

17:10

that just assists the associate, which in the end

17:13

makes them more efficient for us.

17:15

Yeah. That hearkens back to an earlier podcast we had

17:17

with Adrian, where he was talking about

17:19

the various applications of automation

17:20

technology, and it sounds like it's certainly

17:22

a play for the peak challenge. This year

17:25

is going to be different, COVID-19 is

17:27

a reality, that we're all trying to find

17:29

our way through. I'm interested in

17:31

knowing how you guys are

17:33

talking to your customers about peak

17:36

season, within the context of COVID, what

17:38

you think you can plan for versus what

17:40

you think you can't, how the control dynamics

17:42

are perhaps changed this year. Kraig,

17:45

I'll start with you.

17:46

I'll take the first crack at that. I think

17:48

this is everything that's on

17:50

our minds, and everything that's keeping us up at night,

17:52

at this point in time of 2020. Not

17:55

just the pandemic and how we're managing

17:58

our way through it today, but it's the pandemic

18:00

and how we're going to manage our way through peak season.

18:03

Every year, we work very closely

18:05

with our customers on forecast

18:07

and planning for peak season. There's always

18:10

an element of science, and an element of

18:12

crystal ball that goes into that forecast because consumer

18:13

behavior, E-commerce you

18:16

are directly impacted by consumer behavior

18:19

every minute of every day. That's

18:21

just the reality of the way that this infrastructure

18:23

is created, and this phenomenon has been

18:25

created. At peak season,

18:27

it's no different. It's very heightened, and

18:30

that's where the crystal ball aspect of trying to

18:32

predict what a consumer is going to do comes

18:34

into play. I would say, you know, you may be 70 percent science

18:39

and 30 science crystal ball every year, as you're

18:41

building that forecast out for peak season. This

18:44

year, I think we're inverting that ratio materially.

18:46

I think that we have no idea

18:49

what consumer behavior is going to do to things.

18:52

We do know that E-Commerce sales

18:54

are going to grow. Who are they going to be growing

18:56

with? Where's it going to be growing? Are they

18:58

going to be ordering on black Friday? Are they going

19:00

to be waiting until later, are

19:02

they going to get what they want? Are the stores

19:04

going to get any sales at all, or are people going to

19:06

be starting to go back to stores

19:09

at that point in time. There's so much unknown.

19:10

Then, you couple that

19:12

whole consumer behavior,

19:15

unknown crystal ball impact

19:17

with what we're dealing

19:19

with, in these fulfillment operations across

19:21

the country, not just DHL, everybody is dealing

19:23

with across the country, to protect

19:25

and keep our associates and our team

19:27

members safe. You know, with the COVID-19 restrictions

19:30

of social distancing, and doing

19:32

that when you're attempting to take

19:34

your workforce by 200

19:36

percent or 300 percent into your building,

19:39

you still have to maintain social distancing.

19:41

You still have to look

19:43

at the health and safety of your associates

19:45

and how are we going to create that capacity? So,

19:48

that's something that we can control. So,

19:50

that's where a lot of our focus is, is

19:52

on how we maintain a very safe

19:54

environment for our people at the highest

19:57

capacity that we can get the facilities ready

19:59

to. That goes into our

20:01

planning process and a process for peak

20:03

,that we've dealt with in the past, but this

20:05

is just a more heightened approach that we need to

20:07

take with more specific challenges in faculty,

20:10

To go a bit further. Larry we've kept all of our buildings

20:12

open throughout the pandemic, and

20:14

we've put in a lot of different practices

20:16

for worker safety and the like, what have we

20:18

learned in the course of that experience,

20:21

as you think about scaling for the second half of

20:23

the year?

20:24

Yeah. You know, it's no different than

20:26

when everybody goes to the store today

20:28

or the marketplace or anything, you know, those

20:30

same components of what we've put in

20:32

are what's worked around how

20:35

we're setting up our break rooms, how we're

20:37

setting up our pack stations. You go back

20:39

to what, you know, Kraig talked about a bit earlier

20:41

around number one, you know,

20:43

peak season is for the majority

20:45

of our retailers will

20:47

make or break their financial year. But

20:49

number two, we've, we've built all

20:51

of these buildings out for peak

20:53

season. So, now when you talk about

20:56

that, that infrastructure that you've built is no

20:58

longer capable of supporting the

21:00

peak season execution that we need to do

21:03

this year, with the pandemic. It's forced

21:05

us to already have to have made some

21:07

adjustments within our facilities to

21:10

allow for the proper social distancing and keeping

21:12

our associates safe. That same

21:14

mentality is what we're bringing

21:16

into our peak season planning, and as we said

21:18

with it being a year long process, we're

21:20

right in the middle of understanding

21:23

what we have to do to execute because our customers

21:25

depend on peak season execution.

21:28

I think, more than ever this year,

21:30

the HR components of a peak season

21:32

and the operational components of the peak

21:34

season are going to be consistent with how we

21:37

plan our execution strategy, but more

21:39

this year, facilities and engineering

21:41

is playing a bigger role with not

21:44

only how we are going to create

21:46

that social distancing, the things that we

21:48

need to do to procure the proper

21:50

facility set up now so that we

21:52

can get it into place before peak.

21:54

Yeah. Challenging times, and I wish you best

21:56

of luck with all of that. Just

21:59

to kind of close this out here. I know we've

22:01

talked a lot about peak, but. Kraig, you've got

22:03

the title of President of E-commerce.

22:05

So, I'd like to talk about that market in

22:07

general. I mean, it's been growing at about a 15

22:09

to 20 percent clip for over a

22:11

decade now. What's your prediction? Will that

22:14

kind of growth trajectory stay the same. Do you see it

22:16

accelerating? Decelerating? How

22:18

do you see things playing out?

22:20

There's no question in my mind that

22:22

we're going to see rapid acceleration

22:24

right now, you know, depending on what

22:27

numbers you want to look at, if you were to exclude

22:29

carbine and gasoline and such. E-commerce right

22:32

now is about 15 percent of retail sales, growing

22:36

every year, it's taking over about 2 percent of

22:39

the market with that growth rate, that's taking place,

22:41

which most people are projecting that

22:43

a third of all retail sales will be

22:45

E-commerce based by the end

22:47

of this decade, somewhere around the

22:49

end of this decade. I think that's going to explode

22:52

a great deal. I believe that we will

22:54

be at that a third of all retail

22:56

sales by 2025. Part

22:58

of that is going to be fact that retail

23:00

stores are going to decline in total

23:02

sales, but most of those models

23:05

that shows us getting to a

23:07

third of sales by 2030,

23:09

showed anywhere from a zero to a 2 percent

23:12

increase in retail store sales, while E-commerce

23:15

was continuing in that 10 to 15

23:16

percent range. I think the reality

23:18

of the model is now going to change and start showing

23:20

a negative decline on retail stores, while E-Commerce

23:24

has a more aggressive 20 percent growth rate

23:26

over the next couple of years, and very quickly you

23:28

get to a third by 2025

23:30

and even 40 percent by the end of the decade,

23:32

or over 40% by the end

23:34

of the decade. I think that's the reality

23:36

that we're going to start to face and see, which

23:39

makes this a very exciting, yet extremely

23:42

challenging space to be in, to make sure that

23:44

all of our retailers are in a position to handle

23:47

that course of change that's about to take place,

23:48

in an intelligent way, with

23:50

a strong roadmap for future

23:53

success.

23:53

So, Larry having a key operational

23:56

lead role In that context, how does

23:58

that general picture make you feel overall?

24:00

We're excited. I mean, to be

24:02

honest, when you talk about peak seasons

24:05

and the fast paced execution that

24:07

we do, these types of things are what excites

24:09

us and why we're in this sector, and with DHL. What

24:12

we're faced with right now is

24:15

how quick can we react? We're seeing

24:17

that even today in some

24:19

of the customers that we're helping now, they

24:22

need us not only to execute

24:24

for them, but they need the execution now. So,

24:26

more than ever, we're leaning on the

24:29

expertise of our, of our team. We've got an extremely

24:31

talented group of people in our sector and

24:33

more than ever, they're all being pushed in

24:35

ways that are forcing us to get

24:38

a bit uncomfortable, but at the end of the day,

24:40

we're, we're continuing to execute and we're

24:42

all ready for the challenge.

24:44

Excellent. Well, I want to thank

24:46

you both for joining me today. I really enjoyed

24:48

this conversation.

24:50

Great. Thanks for having us, Will. Appreciate it.

24:52

Yeah. Thank you.

24:53

Yeah, you bet. If you enjoyed today's

24:55

conversation, please share it with a friend. You

24:57

can find us online at logistics

25:00

. dhl . com. Follow us on LinkedIn and Twitter

25:03

at, @DHL supply chain. If

25:05

you would like to continue the conversation or leave feedback

25:07

about the episode, please do drop us a line.

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