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Woodman's Badger Robots (Part 1)
Episode 1818th September 2024 • Supply Chain LEAD Podcast • Supply Chain LEAD Podcast
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Host Mike Graen sits down with Tyler Davis from Woodman's and Mark Shake from Badger Technologies to the implementation of Badger's retail solutions, including AI and machine learning for security and disinfection applications.

Woodman's, a 240,000 square feet grocery store chain, uses Badger's robots to verify pricing accuracy daily, reducing the need for manual checks and improving customer experience. The robots also assist in identifying out-of-stock items and optimizing product placement.

Woodmans' 20 stores, primarily in the Midwest, benefit from these automations, enhancing operational efficiency and customer satisfaction.

Transcripts

William Santiago:

The vision for badger is to be a retail

William Santiago:

solutions company. We've been working very hard on our

William Santiago:

analytics platform with our artificial intelligence, AI and

William Santiago:

our machine learning. So we're very proud of that. And we have

William Santiago:

new applications for security. We have new applications for

William Santiago:

disinfectant using the robots. Now, you know, with covid and

William Santiago:

post covid, we know how important that is for the the

William Santiago:

industry and for the communities. Woodmans is a 18

William Santiago:

location Midwestern store, but what's unique about Woodmans is

William Santiago:

they're about 240,000 square feet of selling. So for them, it

William Santiago:

was a lot about product location and tag location, and they

William Santiago:

initially came to us to see if the robot can aid them in

William Santiago:

identifying and making sure the right price tags are in the

William Santiago:

right zones of the store.

Tyler Davis:

Pricing compliance is a huge deal. That's the

Tyler Davis:

customer side of our business. We want you to see the price on

Tyler Davis:

the shelf and the price ring correctly at the register. Prior

Tyler Davis:

to having a robot in the store, the pricing coordinator would

Tyler Davis:

have to leave their department for a week every month to go out

Tyler Davis:

to the aisles and scan item by item, just to price, verify the

Tyler Davis:

robot's now doing what we were doing every month for a week

Tyler Davis:

every single day. So

William Santiago:

grocers because they have to find more

William Santiago:

creative ways to save and they're finding that the robot

William Santiago:

is allowing them to cut costs in the right place, but more

William Santiago:

importantly, allow their associates to spend more

William Santiago:

interaction with the customers, which is improving the in store

William Santiago:

experience. Woodmans also uses us for identifying any items

William Santiago:

that are out of stock, Woodman's is one of the first clients to

William Santiago:

use it to upgrade their mobile app that their consumers use to

William Santiago:

shop with.

Tyler Davis:

Customer can now be in our store, look up an item,

Tyler Davis:

find its location within the grocery aisles. There's 24

Tyler Davis:

aisles. There's about 30,000 products on just the grocery

Tyler Davis:

department shelves alone.

William Santiago:

Another unique thing that Woodmans uses our

William Santiago:

product location for is that the robot will send the product

William Santiago:

location to the distribution center, so when they're

William Santiago:

replenishing now, Woodmans pre pallets sit to go exactly where

William Santiago:

in the aisle, where it should be.

Tyler Davis:

Now we have this product location in a nice list.

Tyler Davis:

We provided it to our distribution warehouses who are

Tyler Davis:

starting to pick orders within our aisles. So now we're not

Tyler Davis:

reducing some of this breakdown time of the incoming product

William Santiago:

through our analytic and AI platform, the

William Santiago:

robot, can tell the stores by category, what items are more

William Santiago:

frequently out of stock. So it's really giving them a lot of on

William Santiago:

shelf data that they normally would have people looking for

William Santiago:

the small, independent grocery retailers typically don't have

William Santiago:

the IT infrastructure to do a lot of system things that the

William Santiago:

larger tier one grocers might be able to do. This had a great

William Santiago:

time in collaboration and working on new projects together

William Santiago:

and testing new ideas.

Tyler Davis:

Sky's the limit when it comes to the robot

Tyler Davis:

project right now, if we can develop it. We're going to

Tyler Davis:

develop it just to see if there's another available piece

Tyler Davis:

of information that we can compare to enhance another

Tyler Davis:

report, create another report, enhance another job down the

Tyler Davis:

line. We're willing and open to take any possibility with the

Tyler Davis:

robot at this point.

Mike Graen:

Well, good morning, good afternoon and good evening.

Mike Graen:

Wherever you happen to be, my name is Mike Graen, and we're

Mike Graen:

back with another conversation with retail and the University

Mike Graen:

of Arkansas Supply Chain organization talking about on

Mike Graen:

shelf availability. And you saw a video just a few minutes ago,

Mike Graen:

a little bit of a teaser. We actually have one of the guys

Mike Graen:

who was in that video, Tyler Davis, who will be introducing

Mike Graen:

here in a second, but that was a few years ago, and now he's,

Mike Graen:

he's, he's a couple years older and a couple of years wiser.

Mike Graen:

He's got some interesting things that he wants to tell us about

Mike Graen:

Woodmans, as well as the use of technology like badger to drive

Mike Graen:

alerting and on shelf availability. So we've got Tyler

Mike Graen:

here. We've also got Mark Shake. Mark Shake is with the Badger

Mike Graen:

Corporation. Mark's been doing this for a long, long time, and

Mike Graen:

is really is an expert in the solution at retail that

Mike Graen:

identifies what I'm going to call things that are out of the

Mike Graen:

normal, normal so spills in the floor or out of stocks or

Mike Graen:

pricing, etc, some of the stuff that you saw in that video, you

Mike Graen:

saw Tyler and me talking about. So before I before I get too

Mike Graen:

far, let me start with Tyler once you just unmute yourself

Mike Graen:

and introduce yourself to the to the audience. For us,

Tyler Davis:

Tyler Davis, I work for when. Food Markets. I am an

Tyler Davis:

IT pricing clerk here, and I support all of our pricing

Tyler Davis:

departments at the office level and at the store level. I am in

Tyler Davis:

charge of the robots and all the fun that we get to do with them.

Tyler Davis:

I also support some of our receiving and just our general

Tyler Davis:

pricing systems here at Woodman's.

Mike Graen:

Awesome. How long have you been with Woodman's

Mike Graen:

Tyler?

Tyler Davis:

It was 18 years this year.

Mike Graen:

18 years. Did you start off in the store? Did you

Mike Graen:

always start in the home office?

Tyler Davis:

I started at a store 18 years ago. I then

Tyler Davis:

transferred and opened two stores before I came to the

Tyler Davis:

office. I've been at the office for eight years now, gotcha,

Mike Graen:

gotcha, put you on the spot a little bit. How has

Mike Graen:

the experience working in a store? Does that help, rather

Mike Graen:

than just starting in a home office, I would think it would

Mike Graen:

be hugely helpful, because you get to live the life, and then

Mike Graen:

you can come and build solutions for the folks of the work that

Mike Graen:

you used to do. Does that is that true?

Tyler Davis:

Absolutely, at the office, I tend to be a voice of

Tyler Davis:

something designed within the office on paper doesn't always

Tyler Davis:

play out in a real application, so I can kind of be like, well,

Tyler Davis:

this point and this point might need to be finessed a little bit

Tyler Davis:

more before we put into live action at the store. I was able

Tyler Davis:

to bring a lot of just pain points from the store here, and

Tyler Davis:

we've been able to focus on and work on them. And as development

Tyler Davis:

of the robot has gone, we've I've been able to really take my

Tyler Davis:

experience at the store level and focus on what the robot can

Tyler Davis:

do to truly impact day to day life at the store.

Mike Graen:

That's awesome. That's awesome. The CEO of

Mike Graen:

Walmart, a guy named Doug McMillan, he used to say to me

Mike Graen:

all the time, because I both worked in a store at Walmart and

Mike Graen:

then worked in the corporate office. He goes, Mike, we don't

Mike Graen:

have cash registers in the home office. We're here to support

Mike Graen:

the stores. Let's just be really clear on what we're focusing

Mike Graen:

Yeah, it was a pretty good line. It was very memorable. Mark

Mike Graen:

Shake. Tell us about your tell us about your career path. I

Mike Graen:

know you didn't start with Badger. You've been around for a

Mike Graen:

while in the technology, retail, technology space. Tell us a

Mike Graen:

little bit about Mark Shake, yeah. So

Mark Shake:

thanks, Mike. Thank you, Tyler, for participating.

Mark Shake:

So yeah, been with Badger. Vice currently, Vice President

Mark Shake:

Business Development with Badger. Work a lot with our

Mark Shake:

partner, partners in the market like Whitman's. My background

Mark Shake:

has really evolved in technology. Really grew up in

Mark Shake:

the in the technology and telecommunications industry,

Mark Shake:

really at the enterprise level. And about 70 years ago, had the

Mark Shake:

opportunity to was introduced to badger and they were looking for

Mark Shake:

a business person, someone other than an engineer. So I had the

Mark Shake:

opportunity to come on board and really get my feet wet and learn

Mark Shake:

the business, both robotics and, most importantly, the retail

Mark Shake:

space. So I've enjoyed the ride. I've spent more time in a

Mark Shake:

grocery store than I ever imagined so

Mike Graen:

well, here we're going to ask you exactly every

Mike Graen:

nut and bolt we talked to the wrong guy. You're the you're the

Mike Graen:

you're the practical guy. You're you're less about how it works

Mike Graen:

internally. You're more about us for the customers, which is

Mike Graen:

really what we're probably interested more in this

Mike Graen:

conversation as well, right? So Tyler, I'm gonna kick it back to

Mike Graen:

you. So tell us about Woodmans. If I if I've never heard of

Mike Graen:

Woodmans before, tell us a little bit about Woodmans, the

Mike Graen:

number of stores you got, what your stores look like, who your

Mike Graen:

target customer? Anything you want to tell us about Woodmans,

Mike Graen:

just give us a little bit of view. If people aren't in your

Mike Graen:

area, the Chicago kind of Wisconsin area, if they're on

Mike Graen:

the West Coast, they probably never heard of you before. So

Mike Graen:

give us a little bit of background on who would this

Tyler Davis:

woodmans is. Was founded in 1919, and a little

Tyler Davis:

produce stand in Janesville. We are now on our fourth generation

Tyler Davis:

of Woodman as Clint has taken over, and Phil is still around.

Tyler Davis:

You know, he's out in the stores all the time, but Clinton's kind

Tyler Davis:

of running the operations from the office now. And yeah, we've

Tyler Davis:

been around. We've got 20 stores opening. Well, we're opening our

Tyler Davis:

20th next year, Racine, Wisconsin. And how big are?

Mike Graen:

How big are these stores? And are they primarily

Mike Graen:

grocery, or do they have apparel and other things as well? Tell

Mike Graen:

us a little bit about them.

Tyler Davis:

They are about 230,000 square feet. They're

Tyler Davis:

quite large stores, primarily three. There is haba, HPC,

Tyler Davis:

frozen, dairy, meat, very service orientated, low cost,

Tyler Davis:

low price, just trying to keep things down and keep the volume

Tyler Davis:

up. And, yeah,

Mike Graen:

wow, if I compare that to a the one of the biggest

Mike Graen:

WalMart super centers, I know it's 220,000 square foot, but

Mike Graen:

that's growth, grocery, health and beauty. Apparel,

Mike Graen:

electronics, automotive service, all like sporting goods, etc.

Mike Graen:

230,004 foot supercenter, or, I'm sorry, grocery store. Yep,

Mike Graen:

any grocery item ever you should be able to buy it in the

Mike Graen:

woodmans, right? That you're saying, hopefully,

Tyler Davis:

hopefully, yeah, variety is key. We have about

Tyler Davis:

100,000 active UPCS on the floor at any given time in most of our

Tyler Davis:

stores, we have a couple smaller locations, little older

Tyler Davis:

locations, but you know, generally, about 100,000 a

Tyler Davis:

little over 50,000 of those are picked up by the robots daily.

Mike Graen:

Nice, awesome, awesome. And tell us, tell us,

Mike Graen:

maybe a little bit about your customer base. Who is the is it

Mike Graen:

people, because they're, they're coming from a location which is

Mike Graen:

close to you? Is there a loyalty program? How to, how do you

Mike Graen:

maintain your constant growth with your customers?

Tyler Davis:

We focus on offering the lowest prices and

Tyler Davis:

the most variety. So we generally, you know, we prefer

Tyler Davis:

to cater to everybody, but we, um, generally, cater to

Tyler Davis:

families. You know, come shop at Woodmans and stock up while you

Tyler Davis:

can. We're located off of major interstates. Generally, we're

Tyler Davis:

spread out a little bit. You're not going to have multiple

Tyler Davis:

woodmans locations and cities other than Madison, which is

Tyler Davis:

right by our corporate office.

Mike Graen:

Gotcha. Gotcha. All right, cool. So Mark, I'm gonna

Mike Graen:

kick it over to you. You guys are in Lexington, Kentucky. I

Mike Graen:

don't think there's a Woodmans in Lexington, Kentucky. Last

Mike Graen:

time I checked, so how did you and Woodmans decide? Hey, we got

Mike Graen:

some we got some opportunities to do some business together.

Mike Graen:

Tell us a little bit about Badger. And you know how the

Mike Graen:

initial discussions with Woodmans transpired?

Mark Shake:

Yeah, absolutely. So just a little bit about badger,

Mark Shake:

our company. So badger, we're right at a seven year old

Mark Shake:

company, somewhat of a startup, but we are a product division of

Mark Shake:

Jable, which is a contract manufacturing company at New

Mark Shake:

York publicly traded company. New York Stock Exchange,

Mark Shake:

publicly traded, do about 32 billion in revenue. So about six

Mark Shake:

and a half years ago, they acquired Badger as one of their

Mark Shake:

first product offerings to really take to market themselves

Mark Shake:

as a result. You know, within Badger there, our primary focus

Mark Shake:

is collecting actionable data within the retail space that

Mark Shake:

leverages that data, both for the retailer to improve on their

Mark Shake:

operations that could be in store, conditions around

Mark Shake:

inventory and what's happening on the shelf, as well as also

Mark Shake:

what's happening in the store as it relates to safety and

Mark Shake:

cleanliness. So the two prime you know, multiple use cases

Mark Shake:

there with each different solution, but we're, we leverage

Mark Shake:

our retail Solution Suite, if you will, with leveraging that

Mark Shake:

collection of the data with fully autonomous robots

Mark Shake:

operating in store. So it's been an exciting ride, very

Mark Shake:

disruptive. And something that we're extremely excited about is

Mark Shake:

this industry continues to unfold in the different you

Mark Shake:

know, retailers as well as suppliers who were servicing,

Mark Shake:

you know, those specific that those industries you know, are

Mark Shake:

ramping up and becoming more familiar with the solutions that

Mark Shake:

are out there. With regards to Woodmans, I was very fortunate

Mark Shake:

had the opportunity to take the first robot up to Woodmans. When

Mark Shake:

we deploy a robot into Woodmans, or into any store we like, we

Mark Shake:

walk the store and collect mapping data. That's what the

Mark Shake:

robot utilizes to for navigation purposes, but had the

Mark Shake:

opportunity to go in and meet Tyler for the first time. I

Mark Shake:

could tell you, Tyler probably was not necessarily a fan of

Mark Shake:

robotics. He was more skeptical than anything. I welcome the

Mark Shake:

challenge, but he anyway, he was just fun to kind of engage with

Mark Shake:

early on, only because he was skeptical, and it kind of set a

Mark Shake:

challenge for us. So, you know, we went in there and really had

Mark Shake:

the robot set up within, you know, a couple of hours, we

Mark Shake:

began scanning some shelves and then showing the data associated

Mark Shake:

with that. So very quickly, Tyler had a lot of questions,

Mark Shake:

and quickly over, over the course of the next few weeks, I

Mark Shake:

think we brought them over to the other side.

Mike Graen:

Nice, nice. Well, here's an easy segue transition.

Mike Graen:

Tyler, do you remember the story in the first meeting that way?

Mike Graen:

Or did you see it a little bit differently than that? Tell us

Mike Graen:

about because here's, let's say you came from the stores. You're

Mike Graen:

all about delivering value, and every day low prices. Why do I

Mike Graen:

want to buy this big piece of equipment? It's just going to

Mike Graen:

cost more money, and then we have to add cost to the system.

Mike Graen:

But somehow you got you went from a skeptic to this is pretty

Mike Graen:

cool. We need to do this. Tell your side of the story. We'll

Mike Graen:

see how well it matches with what Mark said.

Tyler Davis:

No Mark was absolutely right. Our corporate

Tyler Davis:

office shares a parking lot with one of our stores, and that was

Tyler Davis:

a store we were piloting the robot in. They didn't really

Tyler Davis:

share that that was even happening. And then that day,

Tyler Davis:

somebody had said, you know, there's a robot over at the

Tyler Davis:

store. And I was like, for what marketing gimmick Are we playing

Tyler Davis:

today? And they're like, no, no, no. It's so it's to do things

Tyler Davis:

and read the shelves and stuff. And then I really thought we

Tyler Davis:

were joking around, so coworker and I ran over across the store

Tyler Davis:

to see it, and I kind of was like, nope, I've got questions

Tyler Davis:

right out the gate. We've got to discuss some things. This is

Tyler Davis:

nuts, and it's never going to work here. So I picked the

Tyler Davis:

brains and asked them all sorts of questions. You know, what

Tyler Davis:

happens when the internet goes out? Does this thing just start

Tyler Davis:

running around, knocking things over, taking people out? Like,

Tyler Davis:

how much fun do we need to get a lasso involved? Like, so I was

Tyler Davis:

just very skeptical. And then Clint, our CEO, he had known I

Tyler Davis:

was very skeptical about it, and he said, you know, you don't

Tyler Davis:

seem to think this is really something that's going to apply

Tyler Davis:

to us. So why don't you run the project? If they can prove you

Tyler Davis:

wrong, then maybe we have something here. So that's how I

Tyler Davis:

got involved with the robots.

Mike Graen:

So the moral of the story, don't be skeptical, or

Mike Graen:

you'll get assigned the project Exactly. If you can convince

Mike Graen:

Tyler this is a good idea, you made the sale so. Well, let's be

Mike Graen:

honest here. So, so you, you said Mark six to seven years

Mike Graen:

ago, 10 years whatever. 10 years ago, we didn't have robots in

Mike Graen:

stores. We had people, right? We had people. So Tyler walked us

Mike Graen:

through this transition. So Tyler's going, Hey, I used to do

Mike Graen:

this work in the store. Now you got a robot doing it. What

Mike Graen:

exactly is the robot automating that, frankly, is probably

Mike Graen:

better to be done by a robot than a person. Let's start out

Mike Graen:

with Tyler. You started out as a skeptic. What are the things

Mike Graen:

that you learned about what it could do and how it could help

Mike Graen:

the store associates that you now became a Wow we got to think

Mike Graen:

about this.

Tyler Davis:

Well, first off, the accuracy. I didn't really

Tyler Davis:

think that it was going to be an accurate product. I didn't think

Tyler Davis:

that we were going to see it, be able to read the shelves and

Tyler Davis:

then be able to rely on that data as much as we are. So that

Tyler Davis:

was the first big thing. It's just the fact that it it really

Tyler Davis:

did what they said it was going to do, and it wasn't one of

Tyler Davis:

those fun things that works for a while. And then, yeah, push

Tyler Davis:

that off to the side right now. Um, so that was a big thing for

Tyler Davis:

me. And price verifying, when I could see that it was truly

Tyler Davis:

pointing out price errors on the shelf was a really big push for

Tyler Davis:

me, because I was a pricing coordinator at one of our

Tyler Davis:

stores, and I had to stop what I was doing and go price verify

Tyler Davis:

about once a month. And it's boring. It's so boring our

Tyler Davis:

shelves are extremely long, and that aisle is just overwhelming

Tyler Davis:

to start with, and scanning every product, you stop paying

Tyler Davis:

attention. You skip sections. The robot was hitting all of it

Tyler Davis:

every day and just keeping up to date.

Mike Graen:

So we'll make sure I understand, for the 100,000

Mike Graen:

items you've got, your verifiers would literally take a device

Mike Graen:

scan the shelf. Label say the point of sale says it's $4.20

Mike Graen:

the label says $4.20 that one matches go to the second. That's

Mike Graen:

what we're talking about, literally scanning every single

Mike Graen:

shelf item.

Tyler Davis:

Yes, well, that sounds painful. It really was.

Mike Graen:

Wow, wow,

Tyler Davis:

collected and nicely put in a little basket

Tyler Davis:

too here you go. This is what you need to take care of today.

Mike Graen:

That's awesome. People may not understand why is

Mike Graen:

verifying prices important? Okay, so they're off a little

Mike Graen:

bit. What's the what's the I mean, I'm obviously being

Mike Graen:

cynical, because I know what the answer is going to be, but they

Mike Graen:

can be for a retailer perspective, why is pricing

Mike Graen:

accuracy at the shelf? Very, very important?

Tyler Davis:

Well, the customer experience first and foremost.

Tyler Davis:

Yeah, but there are also state auditors that come in, fines can

Tyler Davis:

be assessed if too many pricing errors are found, but I mean

Tyler Davis:

primarily in first focus always the customer. So just making

Tyler Davis:

sure that the accurate price is on their receipt, that they

Tyler Davis:

picked it up off the shelf is number one.

Mike Graen:

So picking up an item off the shelf that says $4

Mike Graen:

and when I get the register, it's $4.80 you could dissatisfy

Mike Graen:

customer. Oh, they're trying their little bait and switch

Mike Graen:

here. I picked it up here, but they're charging me more money

Mike Graen:

they thought I didn't see that, huh? So, all right, Mark, over

Mike Graen:

to you. So what else does this thing do? So walk us through

Mike Graen:

kind of the the beginning, because, because the first thing

Mike Graen:

I don't know that we've even said it, walk us what a run

Mike Graen:

would look like. And we've got this animated video we'll show

Mike Graen:

behind the scenes, but we're talking about a robot that

Mike Graen:

absolutely plugs into the wall by itself, charges itself and at

Mike Graen:

specified times, undocks and goes, does tasks in store. Walk

Mike Graen:

us through what that looks like.

Mark Shake:

Yeah, absolutely. So yeah, as you stated, The robot's

Mark Shake:

fully autonomous. So if you can imagine just a wireless device

Mark Shake:

within the retail space. So whether it's a wireless funnel

Mark Shake:

or, you know, whatever, it's just a simply a wireless device,

Mark Shake:

we just require an area, probably three by three, three

Mark Shake:

foot by three foot, to park the robot in, typically on the main

Mark Shake:

sales floor, and it's stays it plugs in the charger, plugs into

Mark Shake:

a standard, standard outlet, no infrastructure requirements

Mark Shake:

whatsoever on the retailer's side. So we deploy the robot,

Mark Shake:

and really within the robot, we have two primary solutions. The

Mark Shake:

one solution running at Woodman's is references insight,

Mark Shake:

that's giving visibility, collecting on shelf data, around

Mark Shake:

out of stocks, incorrect products and mispriced items.

Mark Shake:

And then the second solution is really that's called our

Mark Shake:

inspect, and that's where the robot can operate throughout the

Mark Shake:

day when it's not scanning the shelf to physically inspect the

Mark Shake:

floor. So from a retailer's perspective, and providing duty

Mark Shake:

of care for a clean, safe environment. The robot now

Mark Shake:

provides a highly compliant store walk program that gives

Mark Shake:

before and after images that risk management teams can

Mark Shake:

reference in the event there's an incident in the store. So

Mark Shake:

really, connection wise, the robot operating the store is

Mark Shake:

very simplistic, not nothing required, at least from an

Mark Shake:

internet connection other than an internet connection at the

Mark Shake:

store level. And then, depending on the retailer, we stand up,

Mark Shake:

you know, our solutions against their in store operations. And,

Mark Shake:

you know, make just for purposes of improving those operational

Mark Shake:

efficiencies around whether it's pricing and auditing or

Mark Shake:

replenishment or even post analytics on the data. Why are

Mark Shake:

these issues occurring in my store and looking more down up

Mark Shake:

the chain, as it relates to supply chain? So again, numerous

Mark Shake:

use cases across the board, depending on how the retailer is

Mark Shake:

leveraging it. And to Tyler's point, right? I mean, retailers

Mark Shake:

are faced with a lot of demands. They have a lot of product, a

Mark Shake:

lot of suppliers, a lot of people in and out of their

Mark Shake:

store. They have customers. They have people they have to manage

Mark Shake:

by leveraging these type of, you know, 10 years ago, you would

Mark Shake:

have looked at it as very disruptive, almost now, you you

Mark Shake:

know, I would envision retailers looking at is this would be a

Mark Shake:

must have, because you're standing up programs that are

Mark Shake:

that are offering greater compliance, as well as conducted

Mark Shake:

more often, And you're collecting more usable data out

Mark Shake:

of your store on a more timely basis, so you can make faster

Mark Shake:

decisions that will help, hopefully be a positive impact

Mark Shake:

to the bottom line.

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