1 00:00:00,480 --> 00:00:03,040 Speaker 1: Good morning, team, Welcome to the Daily Oz. My name 2 00:00:03,120 --> 00:00:05,240 Speaker 1: is Sam Kozlowski and it's great to be with you. 3 00:00:05,360 --> 00:00:08,640 Speaker 1: On Thursday, the fourteenth of October. In New South Wales, 4 00:00:08,720 --> 00:00:11,440 Speaker 1: yesterday there were four hundred and forty four new cases 5 00:00:11,480 --> 00:00:15,360 Speaker 1: of COVID nineteen Victoria recorded fifteen hundred and seventy one 6 00:00:15,600 --> 00:00:19,479 Speaker 1: and in the Act fifty one cases of COVID were recorded. Zira, 7 00:00:19,600 --> 00:00:22,279 Speaker 1: we heard some news yesterday about former New South Wales 8 00:00:22,360 --> 00:00:24,639 Speaker 1: Premier Gladys Bireagiclian. What's going on there? 9 00:00:25,000 --> 00:00:28,600 Speaker 2: So yesterday IKAK, which is the corruption body that's investigating 10 00:00:28,640 --> 00:00:32,360 Speaker 2: the former premier, announced its witness list. We found out 11 00:00:32,360 --> 00:00:34,760 Speaker 2: from that list that former New South Wales Premier Mike 12 00:00:34,840 --> 00:00:38,320 Speaker 2: Baird is being called as a witness, as is current 13 00:00:38,400 --> 00:00:42,160 Speaker 2: Deputy Premier Stuart Airs. The public hearings in this inquiry 14 00:00:42,240 --> 00:00:43,880 Speaker 2: begin on Monday next week. 15 00:00:44,920 --> 00:00:47,120 Speaker 1: Sticking with New South Wales Now and New South Wales 16 00:00:47,200 --> 00:00:50,199 Speaker 1: police have attempted to order the removal of two videos 17 00:00:50,240 --> 00:00:53,360 Speaker 1: from the Friendly Jordie's YouTube channel that are in reference 18 00:00:53,360 --> 00:00:57,120 Speaker 1: to a case against the comedian's producer. However, the magistrate 19 00:00:57,200 --> 00:00:59,520 Speaker 1: did not deliver good news to the police, saying quote, 20 00:00:59,560 --> 00:01:02,000 Speaker 1: there's nothing in there that causes me concern from a 21 00:01:02,040 --> 00:01:03,760 Speaker 1: contempt of court point of view. 22 00:01:04,560 --> 00:01:08,400 Speaker 2: We heard last week that the Act had criminalized stealthing, 23 00:01:08,720 --> 00:01:12,440 Speaker 2: and now we're seeing South Australia follow suit. So South 24 00:01:12,480 --> 00:01:15,640 Speaker 2: Australia could become the second state or territory in the 25 00:01:15,640 --> 00:01:19,720 Speaker 2: country to criminalize stealthing, which is the non consensual removal 26 00:01:19,760 --> 00:01:23,960 Speaker 2: of a condom during sex. The legislation was introduced yesterday 27 00:01:24,000 --> 00:01:25,600 Speaker 2: but still needs to pass parliament. 28 00:01:26,080 --> 00:01:29,480 Speaker 1: And today's good news France will ban plastic packaging for 29 00:01:29,560 --> 00:01:32,960 Speaker 1: almost all fruit and vegetables from the twenty second of January. 30 00:01:33,280 --> 00:01:36,080 Speaker 1: The Environmentister said in a statement that the country currently 31 00:01:36,200 --> 00:01:39,240 Speaker 1: uses quote an outrageous amount of single use plastic in 32 00:01:39,280 --> 00:01:46,840 Speaker 1: our daily lives. If you are waiting on a package 33 00:01:46,840 --> 00:01:50,280 Speaker 1: from overseas, or buying a new car or a new mattress, 34 00:01:50,440 --> 00:01:54,919 Speaker 1: or waiting for any sort of electronic device, this podcast 35 00:01:55,120 --> 00:01:57,640 Speaker 1: is for you. Today. We're going to talk you through 36 00:01:57,680 --> 00:02:02,040 Speaker 1: the global supply chain crisis and how it's impacted, particularly 37 00:02:02,400 --> 00:02:05,280 Speaker 1: a company that a lot of young people use, ASOS. 38 00:02:06,040 --> 00:02:08,639 Speaker 2: It took me a really, really long time to get 39 00:02:08,639 --> 00:02:11,040 Speaker 2: my head around this because there's no quarter this issue. 40 00:02:11,080 --> 00:02:14,040 Speaker 2: There's not a singular reason why we've seen such a 41 00:02:14,080 --> 00:02:17,200 Speaker 2: disruption to the global supply chain. But Sam, take me 42 00:02:17,240 --> 00:02:19,320 Speaker 2: through what we do know. How about we start with 43 00:02:19,360 --> 00:02:21,640 Speaker 2: the definition of what we're actually talking about when we 44 00:02:21,720 --> 00:02:23,440 Speaker 2: refer to the global supply chain. 45 00:02:24,240 --> 00:02:27,720 Speaker 1: Ultimately, we're talking about the processes that get a product 46 00:02:27,840 --> 00:02:31,519 Speaker 1: into your hands when it wasn't made here. That's really 47 00:02:31,639 --> 00:02:34,400 Speaker 1: the global element of the global supply chain. So take 48 00:02:34,400 --> 00:02:38,000 Speaker 1: an iPhone for example. The intellectual property and the designs 49 00:02:38,120 --> 00:02:41,920 Speaker 1: might have been designed in San Francisco. The device is 50 00:02:41,919 --> 00:02:44,520 Speaker 1: then made somewhere in Asia. It then jumps onto a 51 00:02:44,560 --> 00:02:47,040 Speaker 1: boat and is delivered to a port in Melbourne, where 52 00:02:47,040 --> 00:02:49,400 Speaker 1: it then goes into a truck and is delivered to 53 00:02:49,400 --> 00:02:53,080 Speaker 1: the Apple store in Sydney. That's a really basic understanding 54 00:02:53,120 --> 00:02:56,080 Speaker 1: of how these global supply chains work. The important thing 55 00:02:56,120 --> 00:02:59,040 Speaker 1: to know about supply chains is that one disruption at 56 00:02:59,080 --> 00:03:01,840 Speaker 1: any point in the supply chain can really disrupt and 57 00:03:01,919 --> 00:03:03,680 Speaker 1: derail the entire supply chain. 58 00:03:04,320 --> 00:03:06,840 Speaker 2: And derailed it has been, So talk me through what 59 00:03:06,960 --> 00:03:10,560 Speaker 2: the different factors impacting the supply chain currently are. 60 00:03:11,639 --> 00:03:14,720 Speaker 1: It's really been a perfect storm. I think the important 61 00:03:14,760 --> 00:03:17,600 Speaker 1: one to cover off straight away is the COVID nineteen pandemic. 62 00:03:17,680 --> 00:03:21,280 Speaker 1: It has disrupted processes that we previously thought were just 63 00:03:21,360 --> 00:03:24,000 Speaker 1: part of daily life, part of the normal ways of 64 00:03:24,040 --> 00:03:27,680 Speaker 1: doing trade and forgetting our hands on the newest electronic 65 00:03:27,720 --> 00:03:32,320 Speaker 1: device or toy from overseas. COVID has knocked out workforces, 66 00:03:32,440 --> 00:03:35,600 Speaker 1: COVID has put pressure on the supply of particular resources. 67 00:03:35,960 --> 00:03:38,680 Speaker 1: It's really impacted every single part of how a device 68 00:03:38,760 --> 00:03:41,000 Speaker 1: is made. Then the next thing to consider is the 69 00:03:41,040 --> 00:03:43,720 Speaker 1: whole thing about a chip shortage. Now we're not talking 70 00:03:43,760 --> 00:03:45,920 Speaker 1: about the edible ones. We're talking about the ones that 71 00:03:46,000 --> 00:03:49,000 Speaker 1: you might find in an electronic device. But chips are 72 00:03:49,040 --> 00:03:52,320 Speaker 1: everywhere from your fridge to your washing machine, to a 73 00:03:52,360 --> 00:03:55,080 Speaker 1: remote control, to your phone, to a laptop to a car. 74 00:03:55,800 --> 00:03:59,800 Speaker 1: Chips make electronic devices work. As we continue to innovate 75 00:03:59,840 --> 00:04:03,360 Speaker 1: new few electronic devices, the devices need more chips to run, 76 00:04:03,680 --> 00:04:06,080 Speaker 1: and so the materials that we are using to make 77 00:04:06,200 --> 00:04:10,600 Speaker 1: chips are getting rarer. For example, a Ford Fiesta used 78 00:04:10,640 --> 00:04:13,480 Speaker 1: to take about thirty chips to make. Now the electric 79 00:04:13,600 --> 00:04:16,080 Speaker 1: version of a Ford, the new model being released later 80 00:04:16,160 --> 00:04:19,160 Speaker 1: this year, takes three hundred chips to make. Then think 81 00:04:19,200 --> 00:04:21,360 Speaker 1: about how many devices you have in your orbit. You 82 00:04:21,440 --> 00:04:23,760 Speaker 1: might have next to your bed, a phone, a laptop, 83 00:04:23,760 --> 00:04:25,920 Speaker 1: and an Apple Watch, all of which require a number 84 00:04:25,960 --> 00:04:29,240 Speaker 1: of chips to function. So we had this COVID pandemic, 85 00:04:29,360 --> 00:04:31,599 Speaker 1: then we have a chip shortage which is making electronic 86 00:04:31,640 --> 00:04:33,800 Speaker 1: devices harder to get your hands on, and then we 87 00:04:33,880 --> 00:04:37,280 Speaker 1: have us sitting at home ordering more stuff online. That 88 00:04:37,440 --> 00:04:40,760 Speaker 1: is the demand element of the supply and demand dynamic 89 00:04:40,800 --> 00:04:44,080 Speaker 1: we talk about. That only means that there's more shipping delays, 90 00:04:44,080 --> 00:04:46,360 Speaker 1: that there's more ports that have backed up ships. There's 91 00:04:46,360 --> 00:04:48,320 Speaker 1: some amazing photos that are coming out of la at 92 00:04:48,360 --> 00:04:51,680 Speaker 1: the moment of literally cues of six hundred cargo ships 93 00:04:51,720 --> 00:04:54,799 Speaker 1: waiting to get into the port. Experts across the US 94 00:04:54,800 --> 00:04:56,920 Speaker 1: and now across Australia have said that if you haven't 95 00:04:57,000 --> 00:04:59,560 Speaker 1: ordered your Christmas gifts already, it's too late. And I 96 00:04:59,560 --> 00:05:02,120 Speaker 1: know that's panic a lot of us. And there are 97 00:05:02,200 --> 00:05:05,120 Speaker 1: particular items that are just taking a really long time 98 00:05:05,160 --> 00:05:08,000 Speaker 1: to get here. The iPhone thirteen. Apple came out yesterday 99 00:05:08,040 --> 00:05:10,200 Speaker 1: and said we're not going to hit our target for 100 00:05:10,240 --> 00:05:13,240 Speaker 1: how many we want to deliver. PlayStation five. I've been 101 00:05:13,240 --> 00:05:15,279 Speaker 1: hearing a lot of people who are just waiting for 102 00:05:15,320 --> 00:05:18,159 Speaker 1: theirs to be delivered. And cars, obviously as we've talked 103 00:05:18,200 --> 00:05:19,680 Speaker 1: about is the other major one. 104 00:05:20,480 --> 00:05:23,839 Speaker 2: Given that we don't have oversight over what this actually 105 00:05:23,880 --> 00:05:27,640 Speaker 2: looks like, can you give me a very real example 106 00:05:28,040 --> 00:05:31,040 Speaker 2: of a product I might have ordered and what's happened. 107 00:05:31,279 --> 00:05:33,640 Speaker 1: Zara, I know you're a major shopper, I know you 108 00:05:33,720 --> 00:05:35,960 Speaker 1: love your Aesos, and I know you're actually waiting on 109 00:05:36,000 --> 00:05:38,280 Speaker 1: the delivery right now. So we did some digging into 110 00:05:38,320 --> 00:05:40,839 Speaker 1: Aesos to see how they were impacted, and sure enough, 111 00:05:40,960 --> 00:05:45,760 Speaker 1: they have been absolutely ravaged by the global supply chain crisis, 112 00:05:46,240 --> 00:05:48,159 Speaker 1: so much so that a couple of days ago, their 113 00:05:48,200 --> 00:05:51,720 Speaker 1: CEO quit the company. Now, as with the global supply chain, 114 00:05:52,160 --> 00:05:55,240 Speaker 1: there's a number of reasons for his resignation, but basically 115 00:05:55,279 --> 00:05:57,919 Speaker 1: the main one is that he was the unlucky CEO 116 00:05:58,040 --> 00:06:00,400 Speaker 1: to have to announce that the twenty twenty two profit 117 00:06:00,480 --> 00:06:03,279 Speaker 1: of ASOS is going to be down by over forty percent. 118 00:06:03,760 --> 00:06:06,640 Speaker 1: On the day that he resigned, Asox stocks went down 119 00:06:06,720 --> 00:06:10,400 Speaker 1: twelve point two percent. And this is all against a 120 00:06:10,440 --> 00:06:12,320 Speaker 1: forecast of them saying they're going to grow a lot, 121 00:06:12,400 --> 00:06:14,240 Speaker 1: So it's not even that they're staying in the same spot, 122 00:06:14,240 --> 00:06:17,640 Speaker 1: they're actually going backwards. The core reason for this, they 123 00:06:17,680 --> 00:06:21,359 Speaker 1: say is supply chain pressures. They've got tons of clothes 124 00:06:21,400 --> 00:06:24,440 Speaker 1: waiting in container ships and trucks globally that just cannot 125 00:06:24,480 --> 00:06:28,440 Speaker 1: move anywhere, and the longer lead times and constrictive supply 126 00:06:28,520 --> 00:06:30,599 Speaker 1: from partner brands actually means that you might not be 127 00:06:30,640 --> 00:06:32,600 Speaker 1: so likely to order from them again if you've had 128 00:06:32,600 --> 00:06:35,039 Speaker 1: a negative experience waiting too long for that dress you 129 00:06:35,080 --> 00:06:38,039 Speaker 1: really want. Asos have a big operation in the UK. 130 00:06:38,400 --> 00:06:40,880 Speaker 1: We haven't even talked about the fuel shortage in the 131 00:06:40,960 --> 00:06:42,920 Speaker 1: UK that we talked about in the podcast a few 132 00:06:42,960 --> 00:06:45,640 Speaker 1: weeks ago. That's played a role. Things are not good 133 00:06:45,640 --> 00:06:48,120 Speaker 1: for Asos at the moment. I think it really captures 134 00:06:48,440 --> 00:06:51,080 Speaker 1: exactly how this global supply chain issue is playing out 135 00:06:51,160 --> 00:06:52,159 Speaker 1: for people like you and me. 136 00:06:53,200 --> 00:06:55,520 Speaker 2: I think that this might be a turning point in 137 00:06:55,560 --> 00:06:58,240 Speaker 2: the way that people think about the necessity to always 138 00:06:58,240 --> 00:07:00,080 Speaker 2: be buying new things. I know that a lot of 139 00:07:00,120 --> 00:07:02,440 Speaker 2: people in our comments section, we're talking about the fact 140 00:07:02,440 --> 00:07:05,440 Speaker 2: that maybe this will make you reconsider whether or not 141 00:07:05,480 --> 00:07:08,520 Speaker 2: you actually need to purchase that new thing. Let us 142 00:07:08,560 --> 00:07:10,560 Speaker 2: know what your thoughts are on this. We'd love to 143 00:07:10,600 --> 00:07:12,960 Speaker 2: hear from you, and thank you, thank you, thank you 144 00:07:13,160 --> 00:07:16,200 Speaker 2: for listening and reviewing the Daily Ours. We are second 145 00:07:16,240 --> 00:07:19,640 Speaker 2: on the charts today and we are so delighted. Your 146 00:07:19,640 --> 00:07:23,280 Speaker 2: support really does mean the world to us. Happy Happy Thursday.