Lean, Green, and Digital: Leveraging SCM Tools to Balance Complex Tradeoffs

MIT Center for Transportation & Logistics
25 Jul 202353:10

Summary

TLDR本次网络研讨会由MIT CTL的课程负责人Laura Allegue和Kellen Betts共同主持,特邀嘉宾Alessandro Silvestro,他是Cognizant Technology Solutions的工业4.0和可持续性战略总监。讨论集中在供应链管理中的复杂权衡,特别是如何实现精益、绿色和数字化供应链。Alessandro分享了他在不同行业的丰富经验,并提供了关于如何开始实施这些目标的见解。他还强调了在资源有限的情况下,如何优先考虑和动态调整目标以应对内部和外部利益相关者的期望。

Takeaways

  • 📚 课程由MIT CTL的Laura Allegue和Kellen Betts联合主持,讨论供应链管理中的复杂权衡。
  • 🌟 Alessandro Silvestro作为Cognizant Technology Solutions的Industry 4.0和可持续性战略总监,分享了他的专业见解。
  • 🔍 讨论了实现精益、绿色和数字化供应链所需的工具和意识。
  • 📈 Alessandro强调了在不同管理层级上理解并实施供应链改进措施的重要性。
  • 🛠️ 提到了精益制造方法论,专注于减少整个价值链和供应链中的浪费。
  • 💡 强调了数字化解决方案在简化和自动化端到端流程中的作用。
  • 🌱 探讨了可持续性维度,包括减少CO2排放和循环经济原则。
  • 🔄 Alessandro分享了他如何使用工具和技术来解决公司痛点和提供解决方案。
  • 🧩 讨论了在资源有限的情况下如何平衡和实施精益、绿色和数字化目标。
  • 💼 Alessandro建议根据能带来的利益和实施成本对改进措施进行排序。
  • 🌐 强调了近岸化策略在增强供应链的弹性、可持续性、成本效益和数字化方面的好处。

Q & A

  • MIT CTL是什么机构?

    -MIT CTL是麻省理工学院(MIT)的一个部门,全称为'麻省理工学院继续教育与专业发展中心',负责提供在线课程和专业发展项目。

  • MicroMasters in Supply Chain Management是什么项目?

    -MicroMasters in Supply Chain Management是MITx提供的一个供应链管理的在线研究生课程项目,由MIT CTL管理。

  • Alessandro Silvestro在Cognizant Technology Solutions担任什么职务?

    -Alessandro Silvestro在Cognizant Technology Solutions担任工业4.0和可持续性战略的主任。

  • Alessandro Silvestro有哪些专业背景和经验?

    -Alessandro Silvestro拥有大约15年的工作经验,毕业于米兰的工业工程师专业,曾在制造业、运营、供应链、工业物联网(即欧洲的工业4.0)以及现在的可持续性领域工作。

  • Alessandro Silvestro如何帮助客户实现数字化可持续性的旅程?

    -Alessandro Silvestro帮助客户实现人、地球、利润目标的同时达成,通过不同的方式,他将在讲座中分享这些方法。

  • 为什么Alessandro Silvestro强调在供应链管理中没有一劳永逸的解决方案?

    -因为每个组织都有其独特的需求和挑战,Alessandro Silvestro强调需要根据组织的具体情况来选择合适的工具和方法。

  • Alessandro Silvestro提到的供应链管理中的'精益'方法是什么?

    -精益方法是一种注重减少整个价值链和供应链中的浪费的管理哲学和方法论。

  • Alessandro Silvestro如何看待数字化工具在供应链管理中的应用?

    -他认为数字化工具可以简化和自动化工作流程,但关键是要选择合适的工具,并且能够快速扩展,以实现良好的投资回报。

  • Alessandro Silvestro如何建议识别真正的成本与感知的成本?

    -他建议要深入了解组织的基线,明确什么是运作良好的,什么是需要改进的,并且需要与高级管理层进行教育性的会议,以展示真正的成本效益。

  • Alessandro Silvestro对MicroMasters项目的学员有什么建议?

    -他建议学员们不要只寻找特定的角色,而是应该利用他们在MicroMasters项目中学到的供应链原则,这些原则几乎可以应用于公司的任何职位。

  • Alessandro Silvestro如何看待在供应链管理中实现精益和敏捷?

    -他认为精益和敏捷意味着理解你所拥有的工具,知道你未来的方向,并能够随着时间的推移动态调整你的策略和战术。

  • Alessandro Silvestro如何解释近岸外包(nearshoring)的概念及其对供应链的影响?

    -他认为近岸外包可以解决供应链的弹性问题,同时也可以减少CO2排放,提高工作的资本效率,并改善数字通信和文化适应性。

  • Alessandro Silvestro对于处理供应链中的范围三(Scope 3)排放有什么建议?

    -他建议可以通过产品设计、优化供应链管理和使用技术平台来减少范围三排放。

  • 在小型企业中实施精益、绿色和数字化的方法应该从哪里开始?

    -Alessandro Silvestro建议从小型企业的痛点开始,解决瓶颈问题,然后逐步引入数字化,以提高效率。

Outlines

00:00

😀 欢迎与介绍

本段落为视频的开场白,由Laura Allegue主持,她是MIT CTL的课程负责人,也是MITx供应链管理MicroMasters项目的联合主持人。她与另一位课程负责人Kellen Betts一同主持此次直播活动。特别嘉宾Alessandro Silvestro,作为Cognizant Technology Solutions的工业4.0和可持续性战略总监,加入了讨论。视频开始时,Laura邀请团队成员Lisa和Emma启动了针对现场观众的第一个投票,以了解他们参与活动的目的和他们希望学习的内容。

05:01

📈 供应链管理的复杂权衡

在这一部分,Kellen Betts介绍了接下来的讨论主题,即供应链管理中的复杂权衡。他强调了这个领域的重要性,并指出将探讨实现精益、绿色和数字化供应链所需的工具和意识。在活动的最后15分钟,将开放给观众提问。同时,他还鼓励观众使用网络研讨会的问答功能来提出问题,并确保使用真实姓名登录,因为不会从匿名用户那里抽取问题。此外,他们还讨论了投票结果,发现许多参与者对学习数字供应链技术感兴趣。

10:04

🌐 Alessandro的职业背景与见解

Alessandro Silvestro分享了他的职业背景,包括他在工业工程领域的学习和工作经验,以及他在制造业、运营、供应链和工业物联网(即欧洲的工业4.0)方面的工作。他提到了自己的工作重点是帮助客户在数字化和可持续性旅程中取得进展,实现人、地球和利润的目标。Alessandro还提到,他是MITx的学生,并且有机会参加了2020年的供应链管理混合硕士项目。

15:05

🛠️ 实现精益、绿色和数字化供应链的策略

Alessandro讨论了如何面对实施精益、绿色和数字化供应链时所遇到的挑战。他分享了一个工具和方法的框架,强调了从端到端生产的角度来审视公司痛点和解决方案的重要性。他提到了不同的精益方法,如精益制造,并介绍了数字工具如何帮助简化和自动化工作流程。此外,他还探讨了可持续性维度,包括如何减少CO2排放和采用循环经济原则。

20:07

💼 管理决策与资源分配

在这一部分,讨论的焦点转向了如何在组织内开始实施供应链改进措施,以及如何根据可能带来的益处和实施成本来确定优先级。Alessandro强调了在公司中推动变革时遇到的抵抗和变革管理的重要性,并建议需要动态调整目标,同时保持对整体目标的视角。他还提到了如何向高级管理层传达供应链的价值,并确保从上到下都有正确的支持。

25:07

💡 数字化工具的选择与实施

Alessandro分享了关于如何选择和实施数字化工具的观点。他强调没有一种解决方案适合所有情况,并建议从小规模的用例开始,这些用例可以快速扩展并带来显著的投资回报。他警告不要试图用一个工具来适应所有情况,因为这可能导致长时间的开发周期和过时的技术。相反,他提倡使用小的、可以快速扩展的解决方案,并强调了敏捷性在当今快速变化的商业环境中的重要性。

30:12

🔍 成本识别与决策制定

在这一部分,讨论集中在如何识别真实成本与感知成本,以及如何将这些信息呈现给决策者。Alessandro分享了他的经验,说明了在不同规模的公司中,如何根据公司的需求和资源来确定改进的顺序。他还讨论了如何在没有预算的情况下启动改进项目,并通过展示快速的投资回报来获得管理层的支持。

35:15

🌿 近岸化策略及其对供应链的影响

Alessandro深入探讨了近岸化策略,这是一种在供应链中提高弹性、可持续性、成本效益和数字化的策略。他解释了近岸化如何减少CO2排放、提高工作资本的可用性,并改善了不同大陆系统之间的通信。此外,他还讨论了近岸化如何帮助更快地响应市场变化,并且与同一地区的供应商合作可以更快地理解需求。

40:21

🎯 精益哲学在供应链管理中的应用

在这一部分,Alessandro讨论了精益哲学在供应链管理中的应用,以及它如何帮助实现敏捷性。他强调了精益不仅仅是减少浪费的工具,而是一种思维方式,可以帮助公司适应不断变化的市场需求。他还提到了精益敏捷性的概念,即在不断变化的目标场景中调整策略和战术,以满足不同利益相关者的需求。

45:22

🏆 供应链管理的挑战与机遇

Alessandro分享了他对供应链管理的看法,包括它如何成为一个广泛的领域,可以在公司中应用到几乎任何职位。他鼓励MicroMasters的学员不要只寻找特定的角色,而是利用他们在项目中学到的原则,探索其他可能包含可持续性、数字化组件的角色。他还建议学员从长远的角度思考他们的职业发展,明确自己的最终目标,并据此规划自己的下一步。

50:23

🌍 可持续性与供应链的全球影响

在这一部分,讨论集中在如何处理供应链中的范围三(Scope 3)排放,这些排放不直接由公司控制,但可以通过产品设计和供应链管理来减少。Alessandro提到了通过选择更环保的材料和优化供应商选择来减少范围三排放的方法。他还强调了在考虑可持续性时,环境、社会和治理(ESG)框架的重要性,并鼓励学员在选择工作时考虑公司的ESG报告。

🤝 管理利益相关者和推动变革

Alessandro分享了他如何管理利益相关者以及如何推动组织内的变革。他提到了采取自下而上的方法,通过选择明智的用例并展示它们的回报和可扩展性来获得支持。他还强调了将利益相关者纳入变革过程的重要性,以便他们理解实施新技术和方法所需的时间和努力。

🚀 应对可持续性挑战的策略

在这一部分,Alessandro讨论了公司在可持续性方面面临的最大挑战,特别是在没有法规强制要求的情况下。他指出,将可持续性与财务收益联系起来可以增加项目获得批准的机会。他还提到了通过减少浪费、再利用材料、翻新和回收来提高效率,从而实现更好的可持续性。

🌱 中小企业的精益、绿色和数字化实施

Alessandro为中小型企业提供了实施精益、绿色和数字化的策略。他建议首先解决公司的痛点,例如生产瓶颈,然后再考虑数字化以提高效率。他还提到了在资源有限的情况下,通过简化流程和减少复杂性来实现改进的机会,例如通过削减产品线来专注于最畅销的产品。

📊 观众反馈与活动总结

在视频的最后部分,主持人感谢了Alessandro的见解,并总结了观众的反馈。观众对了解供应链决策对公司不同领域的影响最感兴趣。Alessandro强调了找到正确实施顺序的满足感,并鼓励观众在实现精益、绿色和数字化供应链的旅程中继续学习。此外,还提醒观众即将关闭的SC0x和SC2x项目的报名和验证,并邀请他们参加系列网络研讨会的下一场。

Mindmap

Keywords

💡供应链管理

供应链管理是指对商品从原材料到成品,最终到达消费者手中的整个流程进行计划、协调、执行和控制的一系列活动。在视频中,供应链管理是主要讨论的主题,特别是围绕如何实现精益、绿色和数字化供应链的目标。例如,Alessandro提到帮助客户在数字化使能的可持续性旅程中,同时实现人、地球和利润目标。

💡精益生产

精益生产是一种减少浪费、提高效率的生产管理方法。它强调在整个价值链和供应链中消除非增值活动。视频中,精益生产被提及作为改善供应链的工具之一,旨在通过降低库存和加速生产周期来提高效率。

💡数字化

数字化指的是将非数字信息转换为数字格式,并通过技术手段进行管理和优化。视频中讨论了数字化技术在供应链中的应用,如供应商管理系统、制造执行系统和客户关系管理系统,这些都是简化和自动化工作流程、提高供应链效率的关键工具。

💡可持续性战略

可持续性战略涉及在业务实践中考虑环境、社会和治理(ESG)因素,以确保长期的经济、社会和环境效益。Alessandro作为可持续性战略家,他的工作是帮助企业在实现数字化的同时,也关注环境保护和社会责任。

💡工业4.0

工业4.0是指第四次工业革命,它通过数字化技术如物联网、大数据分析和人工智能等,实现生产过程的智能化和自动化。视频中提到Alessandro在工业4.0领域有丰富的工作经验,这涉及到制造、运营和供应链的数字化转型。

💡资源分配

资源分配涉及到如何在不同的业务需求和项目之间有效地分配有限的资源。在视频中,资源分配是决策过程中的一个关键因素,需要考虑公司目标、优先级和市场预期等因素,以实现精益、绿色和数字化供应链的目标。

💡市场预期

市场预期是指市场对企业业绩、产品或服务的期望。在供应链管理中,满足市场预期是至关重要的,因为它直接影响到客户满意度和公司的市场竞争力。视频中提到,供应链决策需要考虑市场预期,并以此为依据来优化供应链。

💡近岸外包

近岸外包是指将生产或服务转移到地理位置接近需求市场的国家或地区,以减少物流成本和时间,提高供应链的灵活性和响应速度。Alessandro在讨论中提到近岸外包作为一种策略,可以解决供应链的弹性、可持续性、成本和数字化问题。

💡环境影响

环境影响指的是人类活动对自然环境造成的影响,包括气候变化、资源消耗和污染等。视频中特别强调了在供应链管理中考虑环境影响的重要性,如通过减少CO2排放和采用循环经济原则来实现绿色供应链。

💡多目标线性规划

多目标线性规划是一种数学方法,用于在多个目标之间找到最优解,这些目标可能是相互冲突的。Alessandro提到了他在MITx课程中学到的多目标线性规划,这是一种工具,可以用来在供应链管理中平衡成本、效率和可持续性等多重目标。

Highlights

MIT CTL的Laura Allegue和Kellen Betts共同主持了这场关于供应链管理的直播活动。

Cognizant Technology Solutions的Alessandro Silvestro作为Industry 4.0和可持续性战略总监加入了讨论。

活动开始前,通过投票了解观众希望从活动中学到的内容,包括数字技术、精益战略和改善供应链等。

Kellen Betts介绍了未来30分钟的讨论主题,包括供应链管理中的复杂权衡、精益、绿色和数字供应链的工具和意识。

Alessandro Silvestro分享了他的背景,包括在工业工程、制造业、供应链和工业物联网方面的15年工作经验。

Alessandro强调了他在帮助客户实现数字化、可持续性的旅程中的经验,即同时实现人、地球和利润目标。

讨论了如何面对实施精益、绿色和数字供应链目标时的决策和资源分配挑战。

Alessandro介绍了一个框架,用于全面审视公司痛点和解决方案,包括从原材料到客户交付的端到端生产流程。

强调了数字技术在简化和自动化工作流程中的作用,以及可持续性维度,如CO2排放和循环经济原则。

讨论了如何将供应链优先事项与高级管理层的优先事项对齐,并动态调整目标以应对组织内的抵抗和变革管理。

Alessandro分享了他在数字工具选择和实施方面的见解,强调了快速失败和从小规模用例开始的重要性。

讨论了如何在预算和时间限制下做出决策,以及如何向管理层展示真实成本与感知成本之间的区别。

Alessandro讨论了在不同规模的公司中实施精益改进和数字工具的挑战,以及如何从小规模用例开始并迅速扩展。

强调了在实施精益哲学时,需要理解并接受不断变化的目标和动态调整策略的重要性。

Alessandro为MicroMasters学习者提供了职业发展建议,鼓励他们将供应链原则应用于各种角色,并具有战略性思考。

讨论了如何处理范围三排放,包括通过产品设计、供应商门户和多目标优化来减少供应链中的CO2排放。

Alessandro分享了他在管理利益相关者和改变思维方式方面的挑战,以及如何通过展示用例的成功来获得项目支持。

讨论了在小规模企业中实施精益、绿色和数字策略的挑战,以及如何找到低挂果实并逐步实现目标。

Alessandro强调了将可持续性与财务收益联系起来的重要性,以获得高级管理层对项目的支持。

活动结束时,观众投票分享了他们认为最有趣的部分,包括对供应链决策对公司不同领域影响的概述。

Transcripts

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(techno music)

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- Hi everyone and welcome.

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Thank you for being here with us today.

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I'm Laura Allegue, a course lead here at MIT CTL

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for the MITx MicroMasters in Supply Chain Management.

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I'm very happy to be co-hosting this live event again,

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once more with Mr. Kellen Betts here,

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also a course lead at the MicroMasters program.

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Today we're very, very fortunate to have

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Mr. Alessandro Silvestro joining us today.

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He's the director of Industry 4.0,

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and sustainability strategist

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at Cognizant Technology Solutions.

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Welcome, Alessandro.

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- Thanks for having me.

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Hi Laura.

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- Very happy to have you here today, thank you.

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So before going to the agenda for this session,

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I'll ask our team members, Lisa here today,

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and Emma with us, to launch our first poll

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for the live audience.

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We want to learn as usual on our events.

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Why are you here today?

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What do you wanna learn?

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So if you check the poll, there are some options there.

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Are you here for the digital technology portion?

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For the lean strategies?

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For the learning how to improve the supply chain?

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Or are you just here because you'd never missed

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any of the MicroMaster's live events?

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So I'm giving the floor to Mr. Kellen now.

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- Awesome. Thank you, Laura.

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Hello, everyone.

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So for the next 30 minutes or so,

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we're gonna discuss the complex trade-offs

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we see in supply chain management.

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Definitely a fascinating field

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and lots of complex trade-offs.

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So we're gonna discuss the tools and the awareness

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that we need to strive towards that lean, green,

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and digital supply chain.

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On the last 15 minutes,

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we'll definitely save for your questions.

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So start thinking of those and please use

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that webinar Q&A feature so we can keep track

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of those questions and bring them to Alessandro.

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I'd love to see introductions in discussion in the chat,

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and please use that Q&A feature for your questions.

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And also be sure you're logged in with a name.

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We won't be drawing any questions from anonymous users.

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Awesome.

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And we'll have a few more polls throughout the event,

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so keep an eye out for those.

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We'd love to see your input and feedback in those polls.

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Maybe we'll just check on the results

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of those first polls here.

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Can end that poll and see the results.

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So the question, why are you here today?

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Lots of options here.

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To learn about digital supply chain technologies

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looks like a popular one.

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That's great to see.

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To know more about

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optimizing supply chains using technology.

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So definitely a technology focus I think here

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with our audience.

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I don't know, Alessandro,

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if you have any thoughts on those poll results.

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- Yeah, absolutely.

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So those are very interesting topics

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and I'll put more accent as we speak on

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into the maybe top two or three answers

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that have been selected.

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- Awesome.

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With that, are you ready to get things started, Alessandro,

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kick things off?

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- Yes.

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- Awesome, so.

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Yeah, maybe just if you could share a little bit

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about your background and what brought you here today

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and a little bit about your story if you could please.

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- Yeah, absolutely.

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So again, thanks for having me.

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Laura already told you, I'm principal director for 4.0.

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Industry 4.0 and sustainability strategy

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at Cognizant Technology Solutions.

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And I have about 15 years of working experience.

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I graduated as an industrial engineer from Milan.

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I'm originally from Italy,

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live now in Cologne and worked in the past 15 years

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in manufacturing, operations, supply chain,

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industrial internet of things,

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what we call in Europe, Industry 4.0,

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and now, sustainability.

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To give an example of the industries I've been working on,

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it's automotive, consumer goods,

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eating systems, package gases.

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I've been building green fields and expanding brown fields

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in Eastern Europe, doing strategic performance roadmaps

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and transformational programs all around Europe

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and sometimes also around the globe.

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And today, my position,

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I basically help clients

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in their digitally enable sustainability journey,

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which means achieving people, planet, profit goals,

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all at the same time in different ways

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that you can achieve them, and we'll talk about that later.

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- Awesome.

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- And I almost forgot, also, I was an MITx student, so,

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and then I had opportunity to pursue

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the supply chain management blended master program

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at MIT in 2020.

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Almost forgot the most important thing.

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- Don't worry, don't worry.

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We're very happy to have you as a credential holder here,

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but you're bringing a lot of information from the industry,

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a variety coming from your experience,

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but I'm sure we're going to connect with all the topics

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that we learn across the courses,

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but also with a lot of important matters that are happening

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right now out there in the supply chain world.

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So just going straight to it,

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I would say you are bringing to our table that's on,

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on the title that we put for a live event today,

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a lot of concepts like lean, green,

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and digital supply chains,

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but those are basically passwords that we hear

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and read about everywhere and that we all want to work for

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whenever we are in the industry.

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We really want to be part of that.

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And when we get hands-on and we have to be part

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of the implementation,

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we know there are several constraints we may face.

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So aspects we can think of as resource availability

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and allocation of resources, company goals,

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of course, priorities,

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market expectations, and many more

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could affect the decisions and forces

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going in different directions,

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sometimes one opposite to the other.

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So based on your experience,

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how do you face the decision on where to begin?

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What's the sequence in which you would implement those goals

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and what would be your advice

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for someone that's in the same journey?

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- Yeah, thank you.

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That's a great question.

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Goes right into the core of the free words that we chose

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as buzzwords for this event today.

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I learned a lot of tools during the MITx program

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and also a lot of tools during my career.

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I'm gonna share just one slide with you and walk you through

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the dimensions that I have in my mind

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and different approaches on how to, let's say,

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holistically have a look at what are the company pain points

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and how to address solutions.

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Let me see if the sharing screen is working.

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- Perfect.

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- Can you see my screen?

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Okay, so this is loosely adaptive from,

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and it's also one of my favorite slides about the baseline

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of the cash flow model.

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And it's loosely adopted from MITx supply chain course.

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Let's assume you are in a company that wants from you

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to improve their operations,

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then it doesn't really matter whether you reporting

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to senior management or you are in the middle management

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or you are just a supply chain practitioner.

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Now you start thinking about the tools that you gather

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throughout your experience and your status.

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And I highlighted a couple of those

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thinking about the end-to-end production.

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Let's assume it's a manufacturing company,

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so you have raw materials, the manufacturing,

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the distribution, and the customer delivery,

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and you may have some lean approaches.

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So lean manufacturing, for those of you who don't know,

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is a methodology and a philosophy that focuses

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on reducing waste all along the value chain

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and the supply chain approaches

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that you might very well know are the ones

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that you also learned through the MicroMaster.

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So you have different approaches in orange and purple.

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And now, what I call the linear supply chain part

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that you want to maybe increase your inventory returns,

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have higher on time delivery so that you can capture

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not only customer satisfaction but also new markets.

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But internally in your manufacturing,

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you may want to change in your machinery the tools

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in such a way that you have lower inventories

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and you want to accelerate the cycle times.

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And then back to your inbound warehouse again,

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you want maybe to lower your inventory targets,

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lower your transit times, collaborate with your suppliers.

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So you have a whole bunch of tools.

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And now, if you think about the dimensions

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and the digital in green part,

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well the digital part is there's a lot of solutions

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out there that cover end to end those processes.

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So if left to right, you have supplier management systems

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and that's where you focus on your what to spend

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for the supplier and what's the volume you're insourcing.

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And then you have manufacturing execution system

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for the production material flow and the track and trace

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within a manufacturing plant.

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And then you have the warehouse

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and inventory management system

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for the finished goods to be organized.

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And then you have the distribution and outbound logistics

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that reaches the client.

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And then the CRM,

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customer relationship management order management.

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So that's the digital part.

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And this is an additional dimension

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that allows you to simplify and automate workflows

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that are behind the tools that you learn.

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And then you have the sustainability dimension.

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How do I account for the CO2 that is emitted

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in the upstream supply chain?

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Do I have the opportunity to collaborate with supplier

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for nearshoring of some standard components

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so that the components,

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they don't have to travel so much around the globe

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and thus, emitting more CO2.

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Or can I handle my manufacturing process

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in such a way that I save energy while standing by

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and waiting for parts?

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Or can I optimize the routing

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of the goods to the clients having CO2 emissions in mind?

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And all circular economy principles.

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Like refurbish, reuse, repair, recycle.

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Can I have more durable products?

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So you have all those bunch of tools and all those ways

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to think strategically on how to address those issues.

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But when you enter in a company,

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remember we said at the beginning you would work it

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for the senior management,

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they don't really understand most likely the supply chain

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and the value chain the way you do.

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So the first thing that you need,

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you need to make your priority their priority.

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And one way out of the book would be,

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okay, take my approach is I kind of rank them according

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to the benefit they could bring and according to the F

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or they would cost me in the organization to implement them.

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And it's a good approach and it's good start,

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but it's most likely not enough because as you go along

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with asking for the resources, asking for commitment,

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trying to get the right level of sponsorship,

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you will find resistance and you will have

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a lot of change management going on.

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And that's where you need

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to dynamically adjust your targets.

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Having a holistic global roadmap in mind for those goals,

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whether it's productivity or lead time or on time delivery,

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use the tools that we discussed so far and many others

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that are available and at the end of the day,

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making sure that the company understands

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what you want to achieve so that top down,

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you have the right sponsorship and bottom up,

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people understand where you want to go one step at a time.

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Laura, I hope I didn't take too much time.

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I mean I could talk already about this like forever.

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- Awesome.

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No thank you, Alessandro.

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I really like that visual.

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Definitely highlights on the one hand,

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the simplicity of supply chain,

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maybe you know at least the chain concept

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from raw material to delivery,

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but then also just the complexity

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and the manifold opportunities there are

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for supply chain professionals

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to engage in the different processes

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and look for opportunities to achieve or work

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towards that goal of lean, green, and digital.

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I'm wondering if maybe we could just kind of pick up

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on one of those threads you mentioned there.

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I know many maybe are on their journey,

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their digital transformation journey.

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I know it's been a focus for a lot in the last few years

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with all the disruptions,

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gaining better visibility for example.

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And obviously in our first poll,

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it was a definitely an interest for our audience.

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If you can maybe expand on that digital dimension,

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if you will, the digital or the technology dimension

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and how it fits into this puzzle.

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- Yeah, absolutely.

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So one recurring topic that I had

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discussing with executives earlier today

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is that there's no one-size-fits-all solutions.

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You need to think about your IT tool set

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and sometimes, people want to buy a Ferrari or a Porsche

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for their organization in terms of digitalization tool,

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but it doesn't mean that that's the right approach.

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Sometimes, you want to try fast and fail cheap

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so that at the end of the day,

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when you have the right tool set

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in the source made delivery processes,

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then you can expand your MVP into a full-blown solution

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building small white houses as you go along.

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So that kind of provides the positive culture enforcement.

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What doesn't work is trying to take just,

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and that's my opinion of course,

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but that's what I see in the industry

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is trying to take one tool and try to fit it

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and customize it for everything.

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So you'll end up having maybe 50% of the functionalities

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out of the box and a lot of customization

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and probably a multi-year development,

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maybe five, seven years.

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And by the time you're finished,

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then the technology is obsolete.

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So you need nowadays that the agility that is required

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to implement it tool set is more about small use cases

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that you can scale up fairly quickly

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with a very strong return on investment.

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- Thank you for sharing those and well,

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you brought this like the availability of tools.

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That it's out there and what is possible to implement

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in a certain time that makes it timely and helpful

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at the same time.

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So we were thinking,

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and also when we discussed before joining today,

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that one of the key constraints

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that they have supply chain manager

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in general business management would be budget.

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And budget does also include not only the number

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but also timeframe to develop something.

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To develop this project or to move forward

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with an implementation,

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whether it's of the digital tools or any of the others

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that you mentioned to go in this lean and green

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and digital projects.

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So when we manage decision making,

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we need to analyze costs at a more granular level

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and it's not always easy to identify costs to make sure

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that we're within that budget and within that timeframe.

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So can we expand a little bit on how you identify true costs

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versus perceived cost and how you roll out this decisions

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and this information to executive decisions?

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- Okay, that's almost a three, four-part question.

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So I'll tie it up with the previous one

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and then the expand upon it.

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And also give you a bit of my experience.

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So fairly easy.

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Let's make, let's say either you work among the audience,

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either you work in a company

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that is bigger than 10,000 people

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or lower than 10,000 people.

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Then chances are if you are joining a supply chain position

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or a lean improvement position perform

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by management position combined with the ability

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to implement digital tools, it's either top-down.

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So a corporate mandate that tells you you need to do XYZ,

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and you have a budget allocated and resources

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and all you gotta do, it's complicated enough,

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but all you gotta do is structure your sequence of actions

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and define milestones and a rollout plan.

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I was more often than not, in cases

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in which the senior management understands there's a need

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for operational improvement,

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but they don't really understand what it is.

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And you are now hired

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in, let's call it in a mid-size company under 10,000 people

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and you need to figure out how to start.

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What is the right sequence of tools and approaches

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with no budget.

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So you at some point, three, six months in,

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you will feel like,

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"I need to save the world of this company on (indistinct),

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and by the way, I needed to do it yesterday."

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It's very hard when you don't ever,

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and I'm thinking on purpose,

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the worst case scenario because that's the one

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that I had most of the time.

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It's usually once you have,

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sometimes you find islands or pockets

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in the company of excellence,

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you don't have to come up with new solutions right away.

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If you have a network of 20 or 10 production plans,

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you will always find somebody that has already tried

play17:30

an innovative low-code platform

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from manifest doing execution system

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or an innovative supply chain practitioner

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for scenario planning and sales and operational planning.

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And then you start to understand, okay,

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what is the maturity of those plans?

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And now, what does it take

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from from the senior management to invest

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in the first use cases.

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Just having a very fast return on investment on those

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and then, scale up.

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Chances are to answer your questions,

play18:04

especially nowadays when I started my career 15 years ago,

play18:08

it was acceptable to have a return investment of five years.

play18:11

Nowadays, most of companies,

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even the big ones that I mentioned before,

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they want either 18 months and some of them

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want to 100 days.

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It means that you want to have a use case

play18:22

with the operational transformation and IT transformation

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and even sustainability on top of it in 100 days.

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And it's super challenging because the companies

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are already operating under maximum.

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And long story short, just no, again, one size fits all.

play18:41

You need to understand your baseline.

play18:45

What's going well, what's not going well,

play18:47

what kind of multidimensional tool I need to pick

play18:50

from my supply chain lens to sustainability toolbox

play18:55

and digital toolbox.

play18:57

And then as you go along,

play18:59

if you don't have the right budget and you don't have

play19:01

the right resources, try to build with little money,

play19:07

those use cases.

play19:08

And I haven't forgot,

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I know the question is long, so I haven't forgot

play19:12

about the true cost versus the perceived cost.

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If you are in sales-driven organization,

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most of the time, the CEO and the CXOs in general,

play19:25

they will look at the profit and loss or the balance sheet

play19:28

and they will determine that they need to increase

play19:32

in revenue and increase cost of goods.

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Well, not even cost of goods sold,

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let's call them operating expenses.

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And if they are in hurry because they need to meet

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quarterly results, most likely they will cut

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with a myopic view.

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Meaning they will try to source a lower material

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with a lower quality but it's maybe 30% cheaper

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or maybe they will bring some people slowly to retirement

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because they're no longer needed.

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And most of the time in both ways,

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just to take the two examples,

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you will lose in quality or you will lose in experience

play20:11

in your company.

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So there's a lot of educational meetings

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but don't call them like that with your senior management.

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But there's a lot of educational meetings that you need

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to do to tell them, "Hey, the cost of goods sold,

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so work-in-progress plus the cost of manufacturing.

play20:28

You need to break it down

play20:29

into material and energy and labor."

play20:32

For example.

play20:32

And now you start thinking what can I improve

play20:36

with the resources that I have using principles

play20:39

that we said before and also train the trainer,

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change management so that maybe you are not meeting

play20:46

the next quarter but you're getting extremely good results

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by the end of the year.

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And another dimension in which I often found myself

play20:58

confronted with senior management is,

play21:02

"We don't have budget.

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The cost of goods sold is already high enough,

play21:08

so how about transferring them production somewhere else

play21:12

or transferring capabilities somewhere else?"

play21:15

That's easier said than done.

play21:17

It's not just because you find a spot in a locust country

play21:20

that the capabilities were rampant.

play21:23

There's an ecosystem of suppliers of universities,

play21:27

the need to collaborate and the need, as an input,

play21:32

to this factory somewhere around the world.

play21:35

So more often than not it's a complex discussion,

play21:39

a lot of educational thoughts and again,

play21:43

no one-size-fits-all solution.

play21:47

- Awesome, thank you, Alessandro.

play21:49

There's a lot to unpack there.

play21:51

Maybe one point you made that really stands out to me

play21:54

and kind of highlights the complexity

play21:56

of some of these trade-offs is that quarterly

play21:58

or shorter term if you will vision

play22:01

versus a little bit longer term vision

play22:03

and maybe sacrificing your quarter or just having a quarter

play22:05

where you're investing versus improving the year's results

play22:10

or the five year results or whatever happens to be.

play22:12

And just in that trade-off right there,

play22:14

just with the time versus the budget and that balance

play22:17

you really highlight,

play22:19

I think an area of complexity for sure.

play22:21

Awesome, so maybe I wanna shift gears a tiny bit

play22:23

and pick up on one point that you made earlier,

play22:26

like one example so we can maybe kind of dive deep

play22:28

into one example.

play22:29

I think you mentioned this earlier

play22:30

and I know we discussed this earlier as well

play22:31

just on nearshoring.

play22:33

I know this is kind of a strategy that you see nearshoring,

play22:37

onshoring if you will, to a certain degree

play22:39

here in the US at least.

play22:40

And nearshoring it's kinda a strategy we see a lot

play22:42

in the supply chain media, at least.

play22:44

I know a lot of companies may be rethinking about this

play22:46

and maybe if you could just expand on this concept

play22:49

and some of the impacts this might have

play22:51

within this lean, green, and digital ecosystem.

play22:54

Especially maybe some of those technology impacts.

play22:56

And I think we all maybe think about the network

play22:58

and maybe the shorter distances

play23:00

and so maybe the reduction in CO2

play23:01

but we don't always think about the technology impacts

play23:03

of something like a nearshoring strategy.

play23:07

- Yeah, absolutely can.

play23:08

It's one of my favorite topic right now

play23:11

because also in the course,

play23:14

and you've seen the black swan theory

play23:17

or the black swan principle, now we talk about gray ones.

play23:21

We had Corona or COVID crisis,

play23:24

we had the microchip shortage crisis,

play23:28

the Suez Canal was closed a couple of years back

play23:31

for some weeks.

play23:32

So there's normally a black swan is what?

play23:35

Every 10 years, maybe every 20 years.

play23:38

But now every three,

play23:39

two years there's a new low probability occurrence

play23:43

of bigger impact crisis.

play23:45

And nearshoring kinda solves the problem of resiliency

play23:48

on the supply chain but also the sustainability one

play23:52

and also the cost one and also the digital one.

play23:56

Let me explain.

play23:57

So from a sustainability perspective,

play23:59

let's say based in Europe as of today

play24:01

in a most sourced, a component,

play24:04

a standard component from Eastern Asia,

play24:09

yeah sure, I can do that.

play24:11

But if it's a standard component

play24:12

and not the mission critical component,

play24:15

why not doing the same with a little bit more cost perhaps

play24:19

in from Eastern Europe or for Southern Europe?

play24:23

If it's a standard component, should be available, right?

play24:26

Well now, you imagine you're having this discussion

play24:29

with senior management there,

play24:31

you would say, "Yeah okay,

play24:31

I need to pay 20 cents more per piece."

play24:33

Now you say okay,

play24:35

but you have more working capital available

play24:37

because the lead time is not six weeks from Eastern Asia,

play24:41

it's now a couple of days.

play24:43

So you have more cash to spend in other projects,

play24:47

your projects hopefully than you will finance later on.

play24:52

And from the sustainability side, everything else is equal.

play24:58

You are drastically reducing the CO2 impact.

play25:02

From a digital perspective.

play25:07

I know everybody thinks we are all connected,

play25:09

but systems across continents sometimes

play25:13

do not communicate well

play25:16

and there's also the opportunity to use

play25:19

the same platform or the say, cloud provider.

play25:22

And also cultural fit and time zone.

play25:24

Now you work with people that maybe understand

play25:28

your requirements faster just because you work

play25:31

in the same region.

play25:32

It would be the case in Asia for Asia

play25:34

and Europe for Europe, America for America

play25:37

and the time zone.

play25:39

So the you can react faster.

play25:40

So I love the nearshoring example

play25:43

because on the green, lean and digital,

play25:46

they miss them all.

play25:48

So love that you asked that question.

play25:54

- Thank you, thank you for bringing that

play25:55

and I appreciate how everything come backs

play25:59

to the trade-offs and the implications

play26:01

of one decision on the other.

play26:03

The way that everything at the very end connects

play26:05

and how we need to consider all aspects

play26:08

is not like we're only doing nearshoring

play26:10

for a certain matters, but as you said,

play26:12

we have to meet all together,

play26:14

analyze the impact on all the columns we have in any cost

play26:17

we're analyzing or in any type or piece of our company.

play26:22

Just to have a full understanding

play26:25

of an overview of the supply chain impact

play26:27

and the final decision and implementation

play26:30

of this kind of projects.

play26:32

So connected to that and you brought optimization

play26:36

in terms of cost, the inclusion of sustainability

play26:39

but you mentioned a lot of times

play26:41

during our conversation today the word "lean."

play26:44

So I was thinking that whenever we focus on cost

play26:47

or just sustainability,

play26:48

we miss the big picture and we sometimes have to answer

play26:52

different internal and external stakeholders

play26:55

and we have business implications of our decisions

play26:59

that we may be helping in some other ways

play27:02

that we're missing.

play27:03

So based on your knowledge on lean operations

play27:06

and the lean philosophy overall,

play27:09

would you share with the audience the impact that we have

play27:11

as supply chainer?

play27:12

Like as the supply chain person now,

play27:16

think on how can we a supply chainer,

play27:19

help on a lean philosophy environment

play27:22

and what would be the benefits that this would bring?

play27:25

not only to the supply chain team but also to the company?

play27:29

- So now I mentioned before what lean is,

play27:34

well lean manufacturing management.

play27:36

now lean in terms of being agile, that expands upon.

play27:41

I personally geek out on mixed integer linear programming

play27:45

is something that I loved learning during the MITx,

play27:49

but it's just one tool and if I want to model everything

play27:52

on my own, maybe I'll solve one specific problem.

play27:55

I am definitely not agile, I'm definitely not effective

play27:59

in the sense of a company.

play28:01

So I go back to the fact that being lean and being agile

play28:06

means you most likely know the tools at your disposal.

play28:12

You most likely know where you wanna go,

play28:15

what is your future faith in some years from now,

play28:19

the hardest thing is the first step, where do you start?

play28:23

And the second hardest thing once you start

play28:26

is how do I keep it dynamic?

play28:30

Because the senior management will come back at you

play28:34

or the company will come back at you with different demands

play28:38

almost on a weekly basis,

play28:40

if not on a monthly basis because the industry pressure

play28:44

is different, because the requirements are different,

play28:46

because the client wants something else.

play28:48

So being agile, being lean means understanding

play28:52

that it is not you against your own company

play28:56

trying to implement all the wonderful tools

play28:59

that nobody understands but you, it's not about that.

play29:03

It's about adjusting yourself and understanding

play29:06

that you need to embrace the moving target philosophy.

play29:10

I know that it sounds contradictory at first,

play29:14

but you really need to understand that the people

play29:18

that are running the company face this every day.

play29:20

So if you commit to improve the service level

play29:24

for your client, you need to commit to those

play29:26

and then you need to commit also on improve

play29:29

the profitability and sometimes both,

play29:31

they don't really match together, how you do that?

play29:34

You need to keep balancing and juggle multiple balls.

play29:38

And you need also to understand for yourself,

play29:41

how many moving parts can you handle?

play29:43

How many projects can you start?

play29:45

So the concept of lean agility is empower

play29:48

the moving target scenario which you find yourself in,

play29:52

especially if you're growing a position of middle management

play29:57

and having to take care between senior management

play30:00

and shop floor requirements.

play30:03

And adjust your tactic and your strategy with the time.

play30:11

You keep in mind your goals,

play30:12

maybe you change a bit their weight,

play30:16

but you always adjust and to your stakeholders.

play30:23

- Awesome. Thank you, Alessandro.

play30:25

I think that if anything these last few years,

play30:27

some of these disruptions have taught us

play30:28

is that moving target is definitely a true reality

play30:32

for everyone and especially in supply chains,

play30:35

but I've known in a lot of other areas as well

play30:36

and sometimes, those moves of the target, if you will,

play30:40

are fairly large and so we gotta move

play30:42

in fairly large ways pretty quickly.

play30:44

So Awesome, so thank you.

play30:45

So I just wanna do a quick reminder to everyone

play30:46

in our audience there if you could use that Q&A feature

play30:49

to bring your questions.

play30:50

Alessandro, we're gonna get to the audience questions

play30:54

here shortly and so we just have maybe have

play30:56

one more question for you before we get to the audience Q&A.

play31:00

And so if you could,

play31:01

you can use that Q&A feature to bring your questions there

play31:03

and we'll start to pick from those shortly.

play31:06

But maybe just kind of one last question if you will,

play31:08

Alessandro, I know some of our participants

play31:10

are in our MicroMaster's program.

play31:12

I know you saw some of that first poll who are here

play31:15

just 'cause they don't miss our live events, that's awesome.

play31:18

But maybe they're starting their career,

play31:20

they're perhaps in a transition

play31:21

that's why they're in our program.

play31:23

And this may seem like a daunting next step

play31:25

or a daunting transition for them.

play31:27

I'm wondering if you maybe

play31:28

if you just have any general advice

play31:30

for our MicroMasters learners and where they should start

play31:32

or where they should build on their experience

play31:33

here in this MicroMasters program?

play31:36

- Oh yeah, great question.

play31:39

I can tell you by my own experience, I love supply chain.

play31:43

It's probably to me the broadest discipline out there

play31:49

in terms of like what you can do in a company,

play31:54

everything that you can move in a company.

play31:56

But apart from my first role in my career,

play31:58

I never really had the 100% supply chain role.

play32:03

I use a lot of supply chain principles

play32:06

and I'm enthusiastic about the MITx program.

play32:13

I love the experience at MIT as a graduate.

play32:20

And I was also convinced prior to maybe a couple of years,

play32:23

not so far away, not so long ago,

play32:26

I was convinced that I needed to have

play32:28

100% pure supply chain role, but it's not the case.

play32:31

You can use supply chain principles almost in any position.

play32:35

Maybe not R&D, maybe not sales,

play32:38

but everything in between.

play32:40

Source, make, deliver,

play32:41

you can use them to your advantage.

play32:47

And my recommendation would be to not necessarily look

play32:51

for that particular role.

play32:53

Like, okay, I love whatever network optimization

play32:57

or I love procurement collaboration.

play33:01

There's also other roles out there that will fulfill you

play33:04

with maybe sustainability and digitalization components

play33:09

and where you can use those principles

play33:13

and always think strategic about not the next

play33:18

where you want to go and think backwards in your career.

play33:22

Like if tomorrow, this is my role and I wanna be there

play33:26

in maybe 10 or 15 years, what do I have to do?

play33:28

It's better to understand what is your next role

play33:32

if you have your end in mind.

play33:35

That's what I would feel like recommending today.

play33:40

- Thanks, Alessandro.

play33:41

Thank you for sharing your insights.

play33:43

And as you say, supply chain brings you a lot of tools

play33:46

that you can operate and also, I think

play33:49

it gives you a common language that goes right through

play33:53

the company in all fields

play33:55

and as we talked the impact

play33:57

on internal or external stakeholders is huge.

play34:02

So having the possibility of getting this knowledge

play34:05

and applying it for different areas

play34:07

and fields of expertise, it's great.

play34:09

So we have a question,

play34:10

the first one from the audience that I wanna bring here

play34:13

is from Nikhil Shankar.

play34:15

Hopefully, I'm pronouncing that well.

play34:17

So this is about the sustainability part and he is saying,

play34:21

"With scope one and two,

play34:22

it is usually easier to have more control

play34:25

within a company as supply chain.

play34:27

What is your opinion dealing with scope three targets

play34:30

with so many associated risks,

play34:32

crisis and variability with suppliers?"

play34:37

- So the starter agreement among professionals is that,

play34:41

as you rightly mentioned,

play34:44

scope three is not under direct responsibility

play34:48

of the company.

play34:49

But if you're a product company,

play34:52

there are ways to minimize your scope three.

play34:55

One is the product itself.

play34:58

So if my product is not too complex,

play35:00

let's think about batteries, it's a great example.

play35:04

Lithium-ion batteries are transitioning us

play35:11

into, let's call it a more sustainable world.

play35:15

But if you think of down the mine,

play35:18

cobalt, lithium are very...

play35:23

The process of getting those rare minerals

play35:26

is very polluting.

play35:27

Now there's some development

play35:29

in terms of molten salt batteries

play35:32

that have a slightly lower energy efficiency,

play35:35

but salt is like 1,000 more times available

play35:41

on across of the earth.

play35:42

So that's one thing, think about down to the mine.

play35:46

What is that my product requires in terms of the emissions

play35:51

that generates in this scope three?

play35:53

Another way of answering the same question is let's assume

play35:57

you have a supplier portal that for standard components,

play36:00

allows you, instead of sourcing on spent volume,

play36:04

it allows you to perform a multi-objective

play36:07

linear optimization between emitted CO2

play36:11

or estimated according to the averages

play36:14

and the volume and the spend.

play36:16

There's also a way to implement your insourcing

play36:19

from a sustainability perspective,

play36:20

but just, there are platforms out there

play36:23

that do exactly this kind of job.

play36:26

So there are many ways to reduce scope three emissions.

play36:33

- Awesome, thank you.

play36:34

I know that you mentioned your interest

play36:37

in mixed integer linear programming

play36:40

and that sounds like a fascinating area to dive into.

play36:42

I'm sure we could probably dive into that extensively

play36:44

in terms of just incorporating sustainability

play36:48

or something like CO2 reduction for example,

play36:50

as one of the objectives or as a constraint

play36:52

within those problems.

play36:53

But I wanna maybe bring back here

play36:55

some of our audience Q&A questions, and again,

play36:57

please use that Q&A feature.

play36:59

But maybe before that,

play37:00

should we launch our second poll here just to?

play37:03

If we could launch that second poll,

play37:06

I always like to get your feedback on what you thought

play37:07

was the most interesting part of today's session.

play37:11

There we go.

play37:12

So this is just some of the options.

play37:13

What was the most interesting part of today's session

play37:14

is the question.

play37:15

Maybe expanding my knowledge

play37:17

in supply chain management more generally.

play37:19

I'm learning about specific digital technology applications.

play37:21

And so if you could just give your feedback there

play37:24

on that poll, and then while we do that,

play37:25

I'll pull here a question looks like from McDonald here

play37:28

in our question in our Q&A and he's interested

play37:31

or maybe has experience in developing countries.

play37:33

I'm wondering if you, Alessandro, have any experience

play37:35

in developing countries as well on how maybe that dimension

play37:38

or that context has any impact

play37:42

on this digital, lean, and green balance

play37:46

of trade-offs that we strive for.

play37:48

Do you have any experience in developing countries

play37:49

or any ideas there?

play37:52

- No, not directly.

play37:56

In every position I was,

play37:58

I always try to think down to the mine as I said before,

play38:01

so that whatever I do doesn't indirectly cause an arm

play38:05

back in the upstream of the supply chain.

play38:09

I didn't have the chance to work personally

play38:11

in developed countries.

play38:13

But I like to like elaborate on the concept of ESG.

play38:20

So when we talk sustainability,

play38:22

we have ESG framework, environmental,

play38:24

social, and governance.

play38:26

And many times, we focus on the environmental side,

play38:28

but the social and governance part is kind of forgotten.

play38:31

And the social part is about enabling the local people

play38:36

to have fair working conditions,

play38:39

basic human right development and also the G, the governance

play38:45

is about having partnerships with governments

play38:48

or with universities to foster a culture of education

play38:54

and progress because with more education,

play38:58

there's less these qualities, let's call them this way.

play39:03

So it's something that many companies out there

play39:09

try to accomplish.

play39:10

And many also linked back to the question

play39:13

about what should I do or where should I work

play39:17

with a supply chain MITx credential?

play39:21

Maybe I also have a look at the ESG report of the company

play39:23

you are working or you want to apply for.

play39:28

- Thanks, Alessandro, for bringing also

play39:31

the social sustainability to the equation.

play39:33

So as you say, sometimes, we think a lot

play39:35

or hear a lot about environmental sustainability,

play39:38

but of course, when we are talking about developing country,

play39:41

in general, about different regions of the world,

play39:44

the focus in sustainability may be switching to one

play39:47

or the other depending on their main needs or resources.

play39:51

So thank you for bringing that.

play39:53

I wanna bring here a question that's more

play39:56

from the managerial perspective, let's say,

play39:59

but I know you have a lot of experience there too.

play40:02

So Evan is asking,

play40:03

"How did you manage or how do you manage in general,

play40:06

stakeholders to change mindsets and ways of working

play40:10

and what was the most difficult challenge?

play40:12

How did you get that buy-in of your projects

play40:15

when you need a mindset change?"

play40:20

- Yeah, I think there's a good proverb saying,

play40:23

"Tell me and I'll forget, show me I might remember,

play40:25

let me do it together and I'll be with you,"

play40:28

Something like that.

play40:31

You need to, in your mind there's a kind of bell curve.

play40:37

In the organization, you have people that are 60% undecided.

play40:42

They don't know whether they want to embrace

play40:45

your project or program, whatever you wanna do.

play40:47

And then you have the people against it,

play40:49

maybe 10% and people for, 40%.

play40:53

Depending on the management layer you have on top of you,

play40:56

if it's just free people,

play40:57

well it's not really a bell curve.

play40:58

So if you're lucky, they're all for you.

play41:01

If you're not lucky, they're all against,

play41:03

but the somebody hired you so you might have one sponsor

play41:06

or two against them.

play41:07

So let's take that constellation.

play41:10

In that case, you need to work

play41:16

with a bottom-up approach because obviously,

play41:18

the corporate mandate doesn't work.

play41:20

You have maybe a COO, a CEO, and a chief sales officer,

play41:27

so maybe three or four of them.

play41:29

And you need to show them that what your direct,

play41:34

let's call it chief operating officer,

play41:36

chief supply chain officer,

play41:38

what your direct boss wants you to do is not only the best

play41:41

for him, but also the best for the others.

play41:44

And that's where supply chain helps

play41:46

because as we said before, it's a huge discipline.

play41:48

You can connect operations to finance fairly quickly.

play41:52

And finance and compliance are the two keywords

play41:54

to get to the CEO mind because compliance,

play41:59

because of sustainability and finance, because of results.

play42:02

Those are the two keywords you want to use whenever you want

play42:04

to get their attention.

play42:06

So now as you go along, you start bottom-up,

play42:09

you pick your use case wisely and you develop them to show

play42:14

returns and to show their scalability potential

play42:18

across your production network or supply chain.

play42:21

And then at some point, trust me, those guys,

play42:25

they will also support you and they will also ask you,

play42:28

"Why haven't you done already?

play42:31

They will understand the need

play42:33

for what you are trying to convey,

play42:36

but they will not understand yet why it takes so long.

play42:39

And that's why it's even more important to take them

play42:41

in your journey because if you don't show them,

play42:44

they don't understand what's like to go to the shop floor

play42:48

and change people culture with new technology,

play42:52

new methodologies, new systems.

play42:54

So take them when it's the right time of course.

play42:58

It's people's business.

play43:00

So you need to understand if you have,

play43:02

let's say somebody who is not necessarily friendly

play43:06

as a top manager in front of you,

play43:08

you need to have this kind of feeling,

play43:11

but take them with you in your journey

play43:13

and try to be political when it's needed,

play43:16

but also effective when it's needed.

play43:18

That's what I recommend.

play43:22

- Awesome, thank you, Alessandro.

play43:24

Speaking the language of the CEO I think

play43:27

is a key skillset set for us to learn and I know we try

play43:31

to share some of those experiences here as well for sure.

play43:34

And some of those terms and concepts are definitely core

play43:37

to our program as well.

play43:38

So I'm gonna pull in me one more question here.

play43:41

Before we discuss our poll,

play43:43

one more question here from the Q&A,

play43:44

this one is from Nelson.

play43:46

And his question,

play43:48

I'm gonna kinda interpret it a little bit, but his question,

play43:50

I know challenges across industries

play43:52

and we've spoken about a lot of different challenges today,

play43:54

but his question is like,

play43:55

what has made one of the biggest challenges

play43:57

that you've encountered that companies

play43:58

face with sustainability and where maybe some of those lean

play44:02

and sustainability trade-offs are compromised?

play44:05

Maybe, I know that can vary by industry, it can vary

play44:07

by region of the world,

play44:08

but maybe one of the biggest challenges

play44:10

you've encountered to sustainability?

play44:14

- Well, I think it's fair to say that for many companies,

play44:17

whether they are product or service companies,

play44:19

this year is transition year.

play44:20

So there's a lot of cut and budgets and unless compliance,

play44:27

which means law regulation doesn't dictate

play44:30

that you need to do something.

play44:32

And here in Germany,

play44:33

we have the Supply Chain Due Diligence Act,

play44:35

which requires companies to provide evidence

play44:40

of their upstream supply chain compliance to human rights.

play44:45

So tier one, tier two, and so forth, every year.

play44:50

And so unless you have a compliance-driven process,

play44:53

it's very hard to spend money on sustainability.

play44:58

That's what I feel it's occurring more often than not.

play45:03

But on the other hand,

play45:08

similar to operations and finance,

play45:10

if you're able to connect sustainability

play45:13

with a financial gain,

play45:14

then chances are your project will be approved.

play45:17

And if you think about removing waste

play45:21

from a lean perspective, it's also more sustainable.

play45:25

If you reduce scrap, if you reuse material,

play45:29

if you refurbish, if you recycle,

play45:32

you are more efficient and therefore more sustainable.

play45:35

So now you can try to get the buy-in from senior management

play45:39

for projects that are not maybe 100% sustainability-related,

play45:44

but they do both.

play45:45

They trade off between operational efficiency,

play45:49

sustainability, and maybe why not, digitalization.

play45:52

So if you try to really fight your organization

play45:58

for pure sustainability project,

play46:00

maybe this is not the right year, it will be hard.

play46:04

But if you combine it with some financial background

play46:06

as to why to do it, chances are they will listen.

play46:13

- Thanks for bringing all the finance conversation here

play46:16

because sometimes as supply chainers,

play46:18

we struggle to understand the connection with finance

play46:21

and the importance it has.

play46:23

So thank you for that.

play46:24

I wanna bring another question from the audience

play46:27

before we close it because we have some more coming.

play46:30

But this one is from Hasan and I actually was thinking,

play46:34

you have a lot of experience in big companies

play46:36

and we're talking about conversation with executives

play46:39

and how to get the buy-in the bottom up.

play46:42

But then there are also people here and joining us that come

play46:45

from small scale scale businesses that they work

play46:48

with small scale businesses

play46:50

and they are sometimes facing additional challenges

play46:53

to reduce cost because of the lower smaller scale

play46:56

they work with.

play46:57

So they are asking about how can we implement

play47:00

lean, green, and digital here?

play47:02

Should we focus on lean?

play47:04

Where is this low-hanging fruit when we wanna go there

play47:08

in a small scale business just to try to achieve

play47:11

some of these goals?

play47:13

- So, I don't want to give you a one-size-fits-all answer

play47:19

but I've been myself in small, medium and large companies.

play47:25

So one thing that I notice more often than not,

play47:28

in let's say companies under 10,000 or 4,000 people

play47:31

is that there's still a lot of room

play47:35

for operational improvement.

play47:39

And now think about building a business case.

play47:43

you want to put many items in your business case

play47:47

so that at the end of the day,

play47:49

the entire calculation looks solid.

play47:51

You have IRR or internal rate of return of 50%

play47:54

and payback time in three years.

play47:57

You wanna have all of that.

play47:58

Net present value maybe of a couple of millions,

play48:01

But the right sequences to solve first

play48:05

to the company's pain points.

play48:07

So if you have a bottleneck in your factory,

play48:11

which is driving the pace down

play48:13

of the entire production line, solve that.

play48:15

And then after you do that,

play48:17

you can move into the digital.

play48:20

Like, okay, now I have a well functioning process,

play48:24

why don't we digitalize it?

play48:25

And we can try to extract two, 3% more efficiency.

play48:32

It's like a Pareto approach.

play48:34

At some point, you will achieve

play48:37

what's the maximums possible with the little resources

play48:41

that you have in a small business.

play48:44

And if you want to go to the next Pareto curve,

play48:47

you will have to hire.

play48:48

But by the time, you have built a solid use case

play48:51

and the first business case around it,

play48:55

hopefully, you will have also sold

play48:57

to your management, those good results.

play49:02

So long story short,

play49:04

anywhere in the source make deliver process,

play49:06

you will find opportunity for streamlining

play49:08

the supplier base, improving the manufacturing processes

play49:13

or maybe why not complexity reduction?

play49:16

One of my favorite topic, like SQ pruning,

play49:19

SQ simplification, are you in a consumer goods company?

play49:22

You have 900 products and 80% of your revenues

play49:27

come from 20% of your RSQs?

play49:29

Just kill the rest.

play49:35

There's a lot of stuff you can do

play49:37

with almost no budget at all,

play49:39

and that's where you need to start.

play49:44

- Awesome, thank you, Alessandro.

play49:46

I love the concept of there being manifold opportunity

play49:49

even if there's not a budget for it

play49:51

even for smaller companies or maybe regions of the world

play49:53

where the resources aren't there.

play49:55

There's still a lot of opportunity

play49:56

for supply chain professionals to get in there

play49:58

and improve processes and achieve some of these results

play50:01

and work towards that lean, green, and digital supply chain.

play50:05

Awesome, so in the interest of time,

play50:07

I'm gonna maybe share our results

play50:08

and look at that last poll here if we can.

play50:11

The question was what was the most interesting part

play50:13

of today's session for you?

play50:15

Some of the options,

play50:16

expanding my knowledge in supply chain management.

play50:19

It looks like the majority

play50:20

or the most popular one was just getting an overview

play50:23

of the impact of supply chain decisions on different areas

play50:25

of the company.

play50:27

I think that was definitely, I think,

play50:29

a key message that there's just so many complex trade-offs.

play50:31

And so sometimes, instead of going for that Ferrari,

play50:33

you gotta start small

play50:35

and maybe more incrementally work your way

play50:37

towards some of those bigger goals.

play50:39

I don't know Alessandro, if you have any thoughts,

play50:42

wanna share on that?

play50:44

- Yeah, it's interesting to see that everything

play50:48

is more or less there.

play50:49

We have a couple of 40, 46%,

play50:52

but most of the topics are equally represented,

play50:55

which means hopefully, we answered 360 degrees

play51:00

on what the audience expected us today to do.

play51:06

So I love the complex trade-offs we discussed

play51:10

and sometimes, it's of course, a lot of headache,

play51:15

but once you find the right sequence

play51:18

on everything that you have at your disposal,

play51:21

it's a pleasure to see it being implemented.

play51:27

- Awesome. - Thank you.

play51:28

- Go ahead, sorry.

play51:30

- No, it's totally fine.

play51:31

Thank you for that.

play51:32

In the interest of time, we're start wrapping up this event.

play51:36

So thank you for a very insightful conversation

play51:38

and bringing all this complex situations to the table

play51:42

and just sharing how to actually go there

play51:44

and have that conversation

play51:46

that it's not usually the easy one to have.

play51:49

We're getting a lot of great emojis coming up on the screen.

play51:54

The audience is grateful-

play51:55

- Do I have a button for 200 hearts?

play52:00

- No, no, no, that's accurate.

play52:01

It's coming.

play52:03

So thank you to everyone in the audience.

play52:05

Remember that SC0x and SC2x enrollment and verification

play52:09

is closing tomorrow.

play52:10

So I'll make sure to get verified with us

play52:13

to continue with the program.

play52:14

And Alessandro, any final words to the audience?

play52:18

- Again, thank you so much for having me,

play52:22

then maybe next time we'll have the opportunity

play52:24

to talk one-on-one.

play52:26

I don't like being a monologue sometimes,

play52:29

but I hope you could gather some interesting insights

play52:32

and it's been super fun with you guys to be here today.

play52:36

- Thank you.

play52:37

It's never a monologue.

play52:39

We loved learning from you today.

play52:41

And thank you, Kellen for joining us today again.

play52:43

I love hosting with you.

play52:45

- Yeah, thank you, Alessandro,

play52:46

and always a pleasure to co-host with you, Laura.

play52:49

- Awesome. - Thanks again.

play52:50

- Thank you, everyone.

play52:51

Thank you, everyone, and see you.

play52:53

Stay tuned for the next webinar in the series.

play52:55

This is the first out of three, so stay tuned.

play52:58

Okay? See you.

play53:00

Thank you. - Thanks.

play53:01

Take care. Bye. - Bye everyone.

play53:03

(gentle music)

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