00:17:13 · Carol Tomé, S1, S0
[00:17:13] S2: In 2028, we'll be very clear on what our desired outcome is. [00:17:18] S1: I am curious with about where you go next and about this idea of who you look to and who you model yourself after. You worked at Home Depot for years. You worked under Arthur Blank. I know you've talked about him publicly in terms of what he's meant to you as a mentor and as a friend. But I think about CEOs that have either had to go through turnarounds or have had to shrink their company in order to make it bigger or better, as you would say. Is there an example that you look to or is UPS a singular story? [00:17:48] S2: Well, in some ways, I look back at Home Depot because I was the CFO during the financial crisis. [00:17:54] S0: So we shrunk. [00:17:56] S2: We lost 25% of our revenue in one year. [00:17:59] S0: We shrunk. [00:18:00] S2: And it enabled us to really focus on what mattered to the customer. And what better to the customer was moving off of some of the promotional drugs that are very commonplace in retail and go to everyday low value to meet the customers where they want to be and be consistent in the value proposition. And that's similar to here. We're smaller, we're better, and now we're going to meet our customers where they want us to be. Complex logistics, supply chains are complicated. We want to absorb the complexity, present simplicity, and help them run their business.
00:18:00 · Carol Tomé, S1, S0
[00:18:00] S2: And it enabled us to really focus on what mattered to the customer. And what better to the customer was moving off of some of the promotional drugs that are very commonplace in retail and go to everyday low value to meet the customers where they want to be and be consistent in the value proposition. And that's similar to here. We're smaller, we're better, and now we're going to meet our customers where they want us to be. Complex logistics, supply chains are complicated. We want to absorb the complexity, present simplicity, and help them run their business. [00:18:31] S1: Is the tariff issue kind of behind us? I know you've talked about this idea that companies have found a way to manage it. What does that mean? They've managed it and now it's there, but just less surprising? [00:18:41] S0: Well, it's certainly been a lot of change in trade. And, you know, trade doesn't stop. It moves. And we certainly have seen that in our business. [00:18:48] S2: But because of our integrated network, we've been able to turn on a dime to meet our customers where they need us to be and serve them as they were moving their supply chains around the world. What we see in our business is this. We see some trade lanes recovering. In fact, at the end of the quarter, we saw inbound into the U.S. grow, turn positive. That's good news for us because it's very nutritive. We saw Asia to Asia trade lanes. [00:19:14] S0: Grow over 8% in the quarter.
00:19:14 · S0, Carol Tomé
[00:19:14] S0: Grow over 8% in the quarter. [00:19:17] S2: We saw softness coming out of Europe principally because in Europe they eliminated the de minimis exemption in July. So there was a pretty significant drop in trade, but that's starting to recover now. [00:19:28] S0: Candidly, there's a little. [00:19:29] S2: Softness on the Canadian borders, as you might expect. But all of this, I would say, is not structural. It's more cyclical. [00:19:37] S0: It's going to sort out, I think, over time.