 Welcome everyone, thanks for joining this live event for our MicroMasters program in supply chain management. I think many of you know me, but my name is Alexis Bateman and I'm a research scientist at the MIT Center for Transportation and Logistics, and I'm also the director of MIT Sustainable Supply Chains. And today we're really fortunate to have Dr. Redak Mani with us. He is the regional head of distribution and warehousing for Maresk. And he's also just an expert in logistics and supply chain management. He has a bachelor's, master's, and PhD from Assumption University in Thailand, and 20 years in logistics and supply chains. And in the last decade, he's worked with Damco and Maresk, and so he's going to bring some of his insights from that wealth of experience today. Ares, thank you so much for taking the time to join us today. Thank you very much, Alexis. Really appreciate the honor to be here and share some of the insights that we can see in Maresk with the rest of the world. Yes, thank you so much. And Ares is a close friend of MIT CTO, so we're happy to have him and share his expertise. So for the session we have, I'll just say briefly about our agenda. So Ares has just a small presentation that he'll start off with, 10, 15 minutes about some perspectives he has from Maresk. I have created some of my own questions that I would like to ask him, but I think maybe of interest in top of mind to many of you on the line. And we'll run some polls also to see how you guys are experiencing during this very unprecedented time. And then we'll open it up for question and answer. So please start thinking about your questions as we're going along. Please use the webinar Q&A feature. That's where I'm going to go through and be choosing and crowdsourcing some of the questions. Be sure to be logged in with a name. We're not going to read any anonymous questions. So just make sure that you're logged in in that way. And so just make sure that you're preparing those. We, I suspect, you know, we will have many questions. So if we can't get through them all, I do apologize, but we'll try to answer as many as we can during the time available. So we just wanted to first get a general sense. We wanted to launch this first poll about what you see as causing volatility in the supply chain. So I seeded in some answers. If you have other thoughts or perspectives, I mean, clearly health pandemic is going to be one that is the top of mind for all of us right now. If you have other thoughts, please pop them into the chat. And so we can we can chat about that. So for now, for the next few minutes, I'm going to turn it over to a res and and he's going to give us some insights he's learned over his time. Thank you, Alexis. I'm going to share my screen. Hope that you can see the screen right now. So just kind of a brief introduction. So I'm as as Alexis mentioned, I'm looking after the warehousing and distributions for for Merck for North America. We did a few different roles in the company. My previous role was supply chain design and engineering. So we were looking after supply chain of large customers and finding solutions for them to improve it. And that kind of give some insight to the work I'm doing today and bringing quite a better understanding of what is it that we should do for customers. So what I'm about to share is a little bit an insight from the way Merck seeing things right now and definitely the most perspective, it's coming from a global supply chain. It might be slightly different if you're talking about something local in the city or in the state or in the nation. So we are looking from from a supply chain and Merck is a company that exists more than 100 years and reinvent itself again and again within the years, both different things and sell the different divisions. But today what we're basically doing is an end to end supply chain for customers and that's allowing us to to basically get and support customers request. So we did ask this poll question. What can cause volatility in a supply chain and I can see the results here. I'm not sure if it's already shared with everyone but basically I can see that health pandemics. It's on the top of the list. It's probably the most fresh things that we all remember so it's out there. I can see that we're following it with natural disasters, poor supply chain coordination and limited supply chain visibility. Definitely all correct and right answers but but of course they are much more than that that can cause disruption to supply chain. So let me just kind of quick reminder to everybody and I picked only the last 10 years really visible things that happen into the supply chain. So if we take 10 years ago we had the volcanic ash cloud over Europe in Iceland was an eruption of volcanic that basically disrupted totally all the flights into Europe. That caused a huge supply chain disruption people that needed to move goods fast didn't have the ability to do it by air freight and that's kind of created some disruption for the Europe continent. Just a year after in Japan Fukushima meltdown basically created the supply chain. You might think hey how is it related to supply chain but in that region in that area of Japan. There is certain memory that has been produced and that's created some supply chain disruption. At least for the PCs and computers and high tech industry so and that's of course impact the rest of industries similar to that in Thailand at the end of 2011 and the beginning of 2012. We had the floods in Thailand that Thailand is the capital of the world in terms of hard disks. That's created the huge disruption into the tech industries. A few years after that 2014 15 the worst cost labor strikes that shut down or slow down actually all the West Coast ports created a huge disruption into the way people looking to and building their supply chain. There was a lot of slowdowns and people needed to take action and started to look around in different ways in 2017. MERSC was one of the impacted by the not petty virus. All our system went down within a day and no more IT system to support the operation and that was MERSC is the largest carrier in the world with about 20 25 percent of the ocean. Containerized logistic that's created a huge disruption in the market. It was not only us of course it was many other companies but but only that and the ports that related to that it's already was a huge disruption. Of course COVID-19 that started the end of 19 and it's we are in the middle of it right now. That's creating and bringing the awareness of disruption once again. And with that in mind you can see that of course it's pandemics but it can be human made problems can be natural disasters. It can be labors availability and strikes. It can be IT failure and IT related which is also kind of a main made right. So all that definitely bringing us to kind of we need to get prepared we need to be ready. If you're not ready. There is a huge potential for companies collapse and and I'm sure that some of the companies will not made and will not survive this current disruption if they're not ready. So in order to prepare basically those kind of unpredictable markets demand and volatility creates different needs for supply chains. You can get requests from customers to get cargo much earlier in their supply chain or in the DC. You can get request that the warehouse is full you need to actually change things. You can get request please bypass this disease and go directly to final customers or to the store. There is a lot of different requests that that the supply chain needs to be started to look into and become much more flexible than it used to be. You cannot just have a supply chain that is built on one set of rules and you don't have a backup to that flexibility speeding up slowing down. It's definitely a key to sustain volatility in supply chain. One of the things that can support such such design of network is a promise of an end to end lead time guaranteed. If you can see the slide here and normal transit time from Asia to to the US for example is normally something around from the moment it's ready at the factory until it's arrived to the DC. It's around the 4045 days plus minus 13 to 15 days. This is a huge variation across the supply chain. It's very difficult to plan and decide things based on such a huge variation. Plus minus of 15 days means that the 30 days window your goods can arrive actually to the final destination. This is almost unacceptable, but people learn to live with that in order to get out of this kind of situation and sure that you have much better supply and supply chain plans reduction of that lead time variation is is definitely a key to the future of supply chain improvement and resiliency and ensuring the things coming on time when it's needed. That's basically the way to do that. And the only way to do that is when you have visibility all the way of your supply chain 100% visibility is crucial to have it, and you need provider or support from providers that have an end to end capabilities to actually execute supply chain as such. And I can give you an example. If, for example, you need to come within certain amount of days from origin in Asia to Memphis DC. The easiest way to do it is of course coming to the West Coast and and enter over there and of course truck from there to Memphis, you arrive to the destination but is it the right way to do that. Probably for certain times, but not always. You definitely need the flexibility to say, hey, now I don't want to go from the West Coast. I actually want to delay it. I'll come from the East Coast. And I will enter from a different location or maybe I would first bring it into a DC or warehouse that can actually store it for a while and act on it only when I need it or some places that can actually a deconsolidation place that can actually give me the ability to go and distribute it to different nations. So that can actually be a cross talk kind of capabilities. So definitely this one is sounds an expensive kind of a proposition. I'm sure that you feel that oh wow with all this flexibility, it's definitely must cost me more to run such as supply supply chain. But my answer to that is not not always. This is kind of just an example of an end to end reduction of our ability that we worked with one of our customers. And I see that originally it was about 40 days with a plus minus 13 so anywhere from 27 to 53 days that they can arrive to the destination all the way from origin. We build a solution that is a 29 days plus minus three so yes, in the original solution you can come 27 days you have a good chance to come very fast. At the end of the day, there is a lot of uncertainty when this will arrive when cargo will be there, and that's creating a much more inventory acquisition and we basically starting to build more inventories in a warehouse, which costing definitely a lot of more money. So reducing that inventories, the safety stocks in our warehouses basically help to actually reduce the final amount of money that we're spending on our supply chain. Another quick example on that is this is just I'm focusing and zooming in. I mentioned before warehouses at potential at the destination so what you see here is an example of a normal regular solution where cargo arrives at the port of these cases in LA. It is been basically goes to the final report the inland port, for example, if we're talking back to the Memphis. So there is another move of the 40 food containers goes to the surrounding of Merce offer Memphis. And then from there you have another provider come and take this 40 and bring it to to the final here is actually Fortwood Dallas but so it doesn't matter where the destination is it's it's there is a multiple handovers and your 40 food containers is keep moving around. And actually this is the one that that moving to the final destination. So there is because of the multi vendors and multi handoffs. The transit time from arrival to the port all the way to destination is something between six to 10 days. And that you have a variation the cost of that is actually more expensive. An alternative to that is basically you're taking it into a warehouse located very close to the port, you convert the forties into 53 trailers, you can save on the environment impact you can save on the movements of you can actually move to your destination. And you can create much better accuracy of the transit time. And we can see in this example that we have eight to nine days. So yes, it could be it is still higher than the six to the six days that we have in the original example, but it's definitely much more accurate and you can plan much better around this. And of course at the end of the day it's also creates some cost reduction to the customer here in this case is $300 saving. So yes it sounds more expensive to have flexibility and solutions, but there are ways to actually go around it and create some kind of measurement to actually that help you to save. So having all those type of preparation definitely help. But it's not all you need to build solution in advance you need to build ways to be flexible. But you also need to kind of things what alternative do I have for certain things that I'm depending on. And as I mentioned before one of the things that can create some disruptions. It's it's actually the human being. We have shortage of human being work willing to working in the certain environments and I'm not thinking that people will disappear from warehouse anytime soon. But definitely we need to have alternatives and we need to have certain potential idea so just this is I'm going to show a quick video of just certain things that we are working on. This is in one of our facilities that we're working I don't know if you're noticing but there is no driver in the driver seat. This is autonomous vehicle that we are testing basically in the yard. The key of that is to create another set of pool for example in the middle of the night when people do not prefer to work in those shifts. We can actually rearrange all the containers in the yard and bring them into the right position that we can work early in the morning when people arrive. So that's definitely something that can help us to get better when people are not there. Another solution that we're exploring right now. It's container unloading. So what you're going to see here in this video is basically a machine and that different type of machines that doing that today, going inside the container and starting to load cartons and bringing them to a conveyor that wait behind that and start to sort where the cartons needs to go. So I'm calling this machine the Cookie Monster. It sounds like it's going inside and eating the boxes with sections and with other kind of equipment that bringing it basically in a much faster speed than we could do manually. So definitely we need those kind of innovation approach to look into different solutions and different things that we're working on. But it's not something that it's easy to build but definitely needed to be built. Beside automation, of course, any company that would like to be ready for such a disruption or such a volatile time need to build a business continuity process. And this is what I'm sharing with you is basically the way we are working in Merck based on and when all those recent things that happened and disrupt us in the last few years, basically made us create such plans and make sure that we execute it immediately when when things happening. So, so definitely the initial action that you can see here is the emergency response. The number one is to ensure that safety of people is the number one priority. Definitely it's above everything else. And then you have safety of infrastructure. That's the second thing. If your infrastructure is still available accessible. That's definitely help you to be able to to work on solution and create solutions. Of course there could be times that infrastructure goes under under the water, for example, literally in Thailand the floods or other different things that you just can't access those infrastructure. And then you need to have some continuity planning where you're going to move people will they work from home will they work from a different location. So the crisis management is is the next basically things that can create that needs to be executed structure training crisis management team needs to be in place and needs to be the one that's handing everything. We call it the war room basically people that are capable to give the right communication and ensure that both internal and external communication are going as flows, because as we talked before visibility is different, definitely a key to ensure that we are able to move ensuring that people getting one source of information and correct source of information. It's a very crucial to success in managing any crisis. And then at the end of after this initial plans, the business continuity planning needs to take over and creating a business risk assessment, ensuring that all the offices we have documentation of what you do how you do things. What is happening with operation who is doing what and how you can handle locations that basically need to close for example what happened if you have somebody infected with the coronavirus in your facility. What is it that you're doing how you return to normal operation and making sure that the operation is really capable to do that. Of course the process needs to be planned with the business continuity planning. You need to document and ensure that you have the right infrastructure. People knows how to do things even they are not in the office. IT needs to be supported. The first few days of this coronavirus we saw that IT bandwidth started to get heated by all this conference call and video calls. That's definitely something that you need to be ready with. Okay, execute the plan took about two days to execute the plans and and we back to normal operation that people could actually do all those video conferences and video calls over the internet without disruption. So that is definitely one of the key things in order for us to to success in in mitigating those kind of situation. That's basically all what I wanted to share in terms of slides. I definitely will looking forward to get some questions both from Alexis and from you. Great. Thank you so much for as I was really insightful really interesting and brought some good perspectives so I can see the Q&A blowing up right now but it I'll start with a few of mine and then we'll go to to our learner. So I'm just going to release one poll to gauge actually some of what you guys are doing what your companies are doing in response to the coronavirus impact and some of the strategies that are being employed so we can gauge some of that but so you know in the visual you just showed you had this timeline of you know the initial, you know crisis response and then the emergency management and then to like a business continuity plan. My question is, how do we deal with this when it's such an extended, you know extended situation where it's going to you know it's not a few days long it's not a few weeks long it's going to be months long to a year long. How do you, how do you see mayors responding in that way and in general any suggestions you have for those on the line. So, so definitely the number one thing as I mentioned is definitely ensuring the safety of the people, both our own employees and the people around and everybody in the community so that's the number one priority that we have to take care. The second thing is communication, we have to build some communication methods and skills that ensure that the visibility kept going and people understand what is it that's happening, both internally and with customers and with suppliers. The whole chain needs to be communicated constantly, even daily or multiple times a day. It's really crucial to ensure that people get those kind of information. Definitely, if it's becoming an extended impact and situation. I do suggest and I think that we are also taking the same approach is delay unnecessarily project. You will need the cash very soon things will change and in order to free cash, any unnecessary project delay it or stop it for now. If it's a project that's super important to your survival continue it of course but any other things put on hold if you can. One of the things that we see with our customers that the feedback that we get from them is that they're really happy that they're working with a logistic provider that can give them the flexibility and the solution on the end to end so alternative routing alternative solution different ways to do things and make sure. And I think one of the important thing to remember is don't panic when we're talking about don't panic in terms of supply and demand. If you remember everybody learn about and probably played about the bullweep effect. We need to remember the beer game we need to remember all this kind of fun that we did when it's reached to a point that we starting to react with no control. We creating a huge supply chains. Effect and demand and and that's definitely something that needs to be kind of been taught and planned and see do I do it because I'm panicked or do I do it because this is the right thing to do so I know it's not it's easier say than done but it's definitely something important. Absolutely. So just to follow up on that one real quick in terms of you know the clear open line of communication you know keeping that constant line of communication to keep things flowing to keep people not panic. Do you see communication shifting at all right now sort of in real time as people are unable to meet in person as they would you know in other settings. Yeah I definitely see communication flowing and changing nowadays. We start to see a lot of different styles of communication than in the past. A lot of in person meetings that could not take place moving to become online. And I feel that in the last year or two years even visibility and communication real time was much more important for people in the supply chain. And I think after this one will become even more important than that you will see that people are getting extremely interested to have online visibility and communication of what's going on where is my things. What will happen next for my kids. Absolutely. Thanks. So for those haven't filled out the poll filled out real quick and we can discuss some of your guys thoughts there. So here's a key question. Supply chains were largely invisible to the lay audience to the public to too many people and now they're in the they're in the limelight we're seeing the critical role of supply chains. Can you talk a little bit about what you think the role of emerging obviously ongoing but emerging role of the supply chain professional will be with this new kind of focus on the supply chain and your thoughts there. I think it's it's definitely the case that supply chain is kind of in the background always. But I think more and more people in the last three years realize that supply chain is basically what move the words. Right. If supply chain will not be declared as a critical role to continue operation will have riots in the streets because people will not have the goods or the toilet paper right. So so definitely the experts in supply chain have a lot to offer. But what I would like to say also is that remember that experts. It's always great and they do great thing when we're talking about things that already happened. You become an expert about things that already happened. You're not the expert about the future. So besides the historical knowledge that you learn from things that happened. Definitely we need to add a vision on top of that. What could happen next what could change. So so the role of supply chain is is also to start to simulate scenarios and cases that never happened before. And we start to see it more and more when we talk to large customers they want to understand what if this going to happen and what if that's going to happen. This is where we're starting to add the expertise and the knowledge of different people. And that's kind of giving us a broader picture that that ensure that we have the flexibility and the ability to get out of certain situation. So I do advise people to keep search and explore for alternative. Out of the box thinking what else can be done and ensure that the business continue plan is exist. It's a crucial to have it and make sure that you and your provider have those kind of planning around. Great. Thanks. So let's see. We have some preliminary results. I think we're having a few technical difficulties with our polls but we will use what we got. So top ways that your company organization are reacting a number one being shifting work to rotating or minimizing onsite staff, creating a customer product priority plan. Also very high managing a clear line of communication, emergency management center, and postponement strategies. I can leave those up there for a second. So another question and I can see quite a few people wanting to ask you questions. I'll just do one more and then we'll open it up but what are so we're learning a lot right now right and we're going to continue to learn a lot as as this impact is continuing globally and infacting our supply chains. Are there things and you've alluded to these but maybe pinpointing them some future oriented practices that companies can think about now to internalize as we internal as we enter a period of recovery. And you know knowing that even though hopefully nothing like COVID-19 will hit us again in a long, long time to be prepared in these situations so any perspectives about those practices moving to recovery and and onward. So I think I think it's there's a lot for us to do to build for the future to be ready. One of the things will be to build a cross functional team from senior management and experts in different fields. Just to be sure that we are addressing all the supply chain risks. We're preparing for them. We call it war room in the bigger scale and when we talk about different locations we call it cockpit just for it's a much more condensed to certain areas. So definitely that's kind of an important thing to do and to plan for a decision that you make definitely make those decisions to protect the bottom line. For human cost a lot of the time when people make decisions in the supply chain is just the temporary procurement cost they would like to reduce certain cost here or there and they make some decision based on that I will challenge you guys to look and think about the bigger picture the bottom line and and protect that one. Definitely, this is important. Another point is definitely to develop a supply chain visibility. Without the visibility you cannot take action you are basically causing the dark and we see that certain companies that do not have the visibility they have no clue where is the cargo is where is the PO is when it will hit this location or that location so in order to actually have actions. You need to have the visibility so that's definitely something to be prepared for. You need to have more integrated the supply chain providers, as I mentioned before it helped with the flexibility, the visibility and the reduce the time to market. Of course if you can consider multi country sourcing or different locations to be source for not always easy. It's definitely something important to think of. I don't think you can just get rid of one country or another. This is the world is really complex and tied into each other in those kind of things so so consider more locations and definitely request your supply chain providers to share their plans to for disruption time so if they have any plans. That's definitely need to be shared so you can actually work together to come up with solution. This is great. Thank you. So I think we'll launch one one more survey hopefully we can get it so that everyone can see it. And then we have a very long list of questions so I'm looking through to to grab a couple. My question from Amanda is, is the Cookie Monster also available for pallets. Anything along that line. So yeah I saw solutions that are available for pallets it's not exactly the way the Cookie Monster work but it's going to be, I don't know, a mini cookie months there are solutions to unload the pallets from containers. Automatically and bring them into into whatever you need in the back so yes. So the Cookie Monster is around. So on that same I'm just going to answer or ask the same related question Carmen right after people are very interested in the Cookie Monster which is, is there is the Cookie Monster doing damage to the packages cartons that are moving through. So, so the testing that we are looking after that we looked at different type of machine I show you only one in the video. So then, there's basically so far was no damage or less than 1% of damage in the one that we tested. We're testing a different one right now that is basically zero damage it's it's moving as fast as as the Cookie Monster but but in a different, different way, and that's definitely zero, zero damage for now. Okay, thanks. So Crystal asks, what do you see about the trend for and we're going to try not to get too political here but de globalization so you know there's obviously a lot of very political examples US building a wall against Mexico, England out of you is there a trend for dual supply chains to cope with these global trends and your perspectives on that. Definitely it will impact the supply chain prices will change people will have to rethink where the sourcing their goods from, but that's bring us back to the idea of let's create more than one locations that we're sourcing because even if we want it or not we cannot just eliminate China or eliminate Mexico eliminate somewhere else around the supply chain there is going to be always a need, both from supply and from demand to keep working with the whole work I know that there is a lot of different voices nowadays that we need to definitely look at our own people first, but sooner or later people will see that you have to keep this kind of the way if we want to keep the way of living that we live today and all the accessibility that we have to product, we definitely will have to keep the ability to work globally rather than just Thanks. So we asked a survey about how has dealing with coronavirus impacted your daily duties significantly so we asked the same question in a different session, a little less than a month ago, and only about 20% said that they were being impacted today almost 70% said, yes obviously a lot you're being your daily duties are impacted 28% said yes a little and then I'm interested in the 5% that said no or 2% nobody will soon so I didn't even share the results sorry about that so I'll share those results just for your reference. So then we have a good question from, from Sumia. He, they're asking, you know, talking about this, you know, end to end communication and visibility. How does mares incentivize supply chain partners to share data to end to aid in that that supply chain visibility, especially now I think the best way to incentivize people that can share data is to give them data back. And this is one of the approach that we are taking is the more we are demanding people want some data back and they need to use it for their own reasons and services. So that's kind of the best way to do that. We have to also remember that a lot of the data that we have is actually generated from within the company. Because we own both supply chain management so we have all the information from our customers on the PO level, we're helping with the vendor management we have that information. We have we have the ports with the APM terminal ports we have the vessels themselves so many different type of information is already coming within the company itself of course there's it's it's limited for our own kind of capabilities. So when we need the effort type of information or other carrier information or trucks information, definitely not the number one is give and take. And the second one is of course you pay per use when needed, but that's kind of a secondary to people that only like to give and they don't have a need for that. Right. Right. Thanks. So now this one's going to really press our brains here which is, we have this ongoing crisis with COVID-19 and now in Southeast US will soon have a hurricane on top of the COVID situation. Do this crisis response or planning taking into account multiple multiple emergency events at one time and what are your thoughts on that. Definitely multiple things needs to to maneuver and take care of the same time. I think it will impact the way we work and it's going to create us look at things in a different way. The way we are handling that is as I mentioned before is having a war room plus cockpits in the different sections within the company to ensure the flow of information or flow and communications is coming and going from from the different angles of the business that is moving around. Right. So Musa asks, are you seeing a difference in how companies are moving their goods during this time period, whether that be different precautions different modes, you know, and, you know, the timelines are there are there are certain trends you're seeing there. Oh, definitely definitely there is a huge change under the 80 degree change of the way people used to do things until a month ago and how they move in today. The number one things that we see is a huge request for air freight and charter air charters operations. This is everything that needs to be done fast for all the medical support and sanitarian equipment, etc, etc, is today moving by effort. There's no ocean involving that there is but the number one thing is going by effort so so huge constraint and remember that most of the capacity in the effort word is in passenger aircraft. I would estimate it to be 60 70% of the world's capacity is actually in in the belly of passenger aircrafts when those aircrafts are not moving we're moving to charters and there is a certain amount of charters or freighters available in the market. So we see airlines that taking the seats out of the passenger or other airlines that putting cargos on top of the seat and putting nets. So that's number one thing that's happening. It's actually we see a lot of effort and when we're talking about oceans. There is definitely a lot of changes as well. A lot of the distribution centers are full and closed and they cannot take more cargo anymore because all the stores are closed and there is no release from the DC so people are looking for a store containers for us. Can you reroute it via different locations so it will arrive later than before so cargo that used to go into the West Coast now being requested, please route it into the East Coast. Let's gain another 10 to two weeks time on the water so we don't need to find solution for that and by then hopefully things will change. People are asking to they want to reduce the detention the marriage on the containers so they're asking for solution to get off cargo and put it in temporary storage in warehouses. We get different requests of can you now break the cargo take only the emergency goods of the things that needs to be used for emergency bring them to the final destination and the rest you hold for now so there is multiple different requests nowadays to change supply chains of the customers. Right now super interesting and thinking about all the different changes going on right now. So David asks, well first thanks to you for your presentation and answering so many questions. I says, he'd like to know more about strategies for increasing flexibility is is mayors making agreements with third parties for increasing capacity, or is that managed internally any additional advice related to flexibility. So, so the simple answer in terms of do we do capacity management with others the answer is yes right there is alliances in the world today and, and definitely each carrier has backups including Merce with other carriers and increasing capacity. But the main flexibility is not coming just because of you get more capacity a lot of the time actually the carriers would like to reduce capacity, because it's impacting. You cannot operate a capacity if it's not bringing a certain amount of income because otherwise you actually losing money for every voyage. So there is a lot of times that you actually reduce capacity just to maintain certain rates, but the real potential team in order to create flexibility is to be able to have your own capacity and control of every element in the supply chain. So if, for example, the ocean port to port is being slowed down because of whatever reason, and there's always a something can happen, you cannot create a bullet proof point to point supply chain. You can create a much better resilience end to end supply chain by be able to actually control everything in the supply chain and mitigate those problems along the way. So if you have all the end to end capabilities, and you have the ocean portion is actually being delayed right now, or alternatively arrive earlier, you can actually slow down or speed up when you move things through the warehouse or through the tracking or through. So that's basically the way we creating a flexibility. And on top of that you have to have the visibility as I repeatedly again, visibility is the key for everything. Without that you cannot do smooth hand over, you cannot control and to end, you cannot create some flexibility. Great. Thanks for that. So we'll launch our last poll. So we're just going to for this one I want you to think about how this is actually going to change how your company operates its supply chain in the future so and you can select one more than one solution and we'll launch that. And then we can discuss those, those results shortly let me get that going. Make sure hopefully everyone will see it. Okay, so then we'll go to. And again, so for your reference there is there's 122 questions remaining so we're going to try to get to what we can the next 13 minutes but excellent excellent questions, really, really good and and thank you or as for for diligently answering so many. So we one question from Owen, which is interesting is, and we saw some issue with our own US government misspeaking about this which is, do you travel restrictions of any countries. How are they affecting cargo logistics. So so far we did not see any restrictions in movement of cargo cargo do continue to flow between the countries. That's not really happening right now. Some countries wanted to kind of get a better visibility of where is it coming from what is happening along the way but but that's something that is happening in the last year anyway. So I don't see any different. Any any similar impact like happening to the people right now. Okay, great. So a question which I think you alluded to a little bit but but Catherine asked directly which is, do you have a prioritization or classification that may practice using prioritizes humanitarian cargo, and how do you deal with that. Definitely, we have a government and aid section within the company that supports FEMA and all the other kind of global organization that definitely get number one priority for this type of equipment and goods that needs to support the life of people so then relief is is core things that must take on itself to promote and ensure that supporting so we are prioritizing. Great, so we have some, some interesting questions I wasn't expecting but once I think about which are, do you have any thoughts about the sharing economy opportunities and in transportation logistics and how that's going to be impacted. How and in the future. The sharing economy so I think I think it's definitely an interesting way to do things right and making sure that you have true applications and IT system, ability to give locations and services that you have in certain locations. Of course it is not easy nowadays to, for example, you don't see the Amazon, local movers are coming as often as before, or any other. There is a lot of restriction to that when you have to have your own capacity and vehicle or storage. But I do believe that this is something in the future that will grow based on certain things like we see today. Jose now ask, could you say something about the current shipping container shortage. Yes, so definitely a lot of the cargo is as I mentioned before it's been stored in containers nowadays. People are asking to find solution for the yard yard solutions for the container. Cannot be unloaded into the disease and warehouses. And that's definitely creating shortage, especially in the center of the countries out of the ports area and impacting the ability to move containers into the location. Certain companies that needs those containers for exports, we see them willing to pay money to move empty containers from the ports into the inland portions of the country. Certainly something that you don't see in normal days. Normal days they are taking advantage of the empty containers being in those places. But nowadays when you have a shortage, people get creative and finding solution to get that. But the more cargo will be stuck inside containers, the more we'll see shortage with that and we'll have to find alternative solutions. One of the way it could be to move things in the 53 trailers, bring them into the port if you need to export and basically convert it back to 40s in the port area. That could be an alternative solution that we're working with some of our customers nowadays. Right, thanks for that. So another question for Sovren is asking about oil prices right now and the fluctuation. How is that impacting, you know, Maersk's strategy in any way? So I'm not an oil expert but I know that the way we're dealing with oil is based on the market demand and supply. We're not bankering any oil or fuel in advance because then it's becoming more of, we're not hedging fuel because that's kind of becoming more of a gambling exercise to understand. So it's definitely impacting us when the fuel going up or when it's go downs we take and push back this up and downs with the customers and we work with them to ensure this is sustainable to all. Right, so I'm just going to share the results from this poll that we ran. So the question was, do you think this disruption is going to change how your company operates and supply chain in the future? So by and large the greatest, the most important answer was having greater risk management protocols in place and so I think that that's a good one. Definitely very key here and one that there has touched on several times, more visibility to deeper tier suppliers. So I think that that's been clear theme here as well. Potentially, which I think maybe we can talk a little bit about this after this, which is more local domestic sourcing so thinking about how that's going to shift as global supply chains are disrupted and as well as diversifying suppliers digitally enhanced supply chains. So the top answers along with greater focus on supply chains so that supply chain will come into more focus. So just on sort of one question I have seen generally but personally I wanted to ask as well is what do you think about potential shift to domestic sourcing. I think we touched on that was sort of the global supply chain shift and more kind of national focus but you know strategically how do you see that changing in the near future. And just before I jump into answering that I'm interested to with the results of the polls or having management protocol in place. Definitely a great things to be on the top of the list, but I just want to cautious people that normally when things comes down and everything goes to normal people forget about it so definitely do not forget about it. Give it the priority because as I presented the one of the slides in the last 10 year we repeatedly have different disruptions maybe not in this magnitude that the whole world is shut down but but there are constantly things that disrupting our supply chain and when it happens people yeah we need to do that we need to do that and then the moment it's over. Yeah let's go back to normal we forget about this. So definitely encourage you to work on that make sure that you have this protocol in place and you actually refresh them within time and checking that they're still valid and workable. Now just talking about the domestic, definitely some of the things will move to domestic distribution. But of course you cannot do that across the board. Price of the goods is still an crucial and important things and you can't just manufacture things at the same price level that you can do it in certain other parts of the world. It won't work. 3D printing is something that we see more and more coming into play and definitely in the future will come even more and certain goods or spare parts or certain things will be able to be done locally with 3D printing and in a reduced cost and in much faster environment but but it's still far away from being everything going to be done domestically that's that's I believe it's not going to happen anytime in our days anytime soon. That's at least my view. Yeah, great. And I think your advice on, you know, those organizations that have very robust risk management protocols in place are ones that revisit them and set them in place and have to kind of refresh, you know, frequently not let them fall by the wayside and as a plug for the current course that many of you guys are in a C3X supply chain dynamics, recognizing the opportunity for running things like scenario planning thinking about these type of impacts and different tools you can employ to start thinking about those and you know critical planning in these cases of disruption. So Carlos so I'll just I just have a few more in our last four minutes of this session. Carlos asked do you think this global situation will create new business models for the supply chain. I'm sure it will. I'm sure it will. As we spoke before, people are looking for different ways to move the cargo I think at least the way we see it internally one of the key thing to enable companies is is the end to end supply chain guarantee of transit time or reduction of variation, because that can answer many of the ways, many of the problems or potential problems. It can help the normal demand and supply of customers. It can help during crisis time it can help during any day that you would like to actually reduce the money that tied into inventory so so there is more and more things that I feel people would look into end to end capabilities rather than sectionals suppliers so I saw that one of the answer were diversifying suppliers. Yes, I definitely agree that this is important. But I will also think that we will see more people going into an end to end capabilities from suppliers and not just let's break it into many small pieces and look into the immediate procurement. So that's definitely will will change the way we look at supply chain after. Right. Absolutely. Um, so Rui asks, and I think this may be our last question before we have a final sign off. It is related to what we just talked about which is in mayors is there a team or any individuals fully allocated to emergency response crisis management. Oh yes, definitely there is a team that dedicated to that we have the protocol of these people are not sitting idle the year the whole year round they are coming from the different businesses and they are part of a disaster recovery team. The moment that something goes on basically we initiate this team and bringing them back to the war room and ensure that there is an execution of the plan that we set in place so those teams are fully aware what they're supposed to do they're part of regular discussions and building up the recovery plan during the year. So yes, the answer is definitely yes. Great. Thanks. So we're coming to the end of this awesome session I just want to thank you so much for us for taking your time I know you are managing a million things right now so I really thank you for taking the time to talk to our learners and really give your experience and having gone through different events you know that we can learn from. Thank you to all the learners joining today from and you know we're fortunate to have these kind of sessions so please you know continue to join and and share on this is openly available so you can share to anyone who might benefit. Final final question. Any words of wisdom as we sign off to for those that are, you know, feeling a little bit stressed in these uncertain times. I can only offer wisdom when in supply chain. Definitely see see the bright side of things. Supply chain is being disrupted but it shows that it's necessary to plan and necessary to building so people that might be impacted in the short term in terms of work. I believe that you definitely gonna find yourself in in a good situation after it's all over when when more and more company will want to have those expertise and capabilities in place or so definitely remember that and keep doing the good stuff that that you're doing because I think people that are in the supply chain are the number one crucial to make sure things are moving and flowing so so definitely a good job for everyone that's involved in supply chain. Thank you so much Reza as we're great words of wisdom to sign off by thank you and everyone stay safe and healthy. Thank you guys.