“We are looking to drive 2% net productivity, so 2% net of inflation across all those elements, including in supply chain.”

In context

“to all on a good start here. Yes, I want to talk a little bit about this operational transformation, it seems like a pretty heavy lift, but obviously, you’re making some progress, but last quarter, you spent some time on supply chain, not in prepared remarks, not as much this quarter, how big of an opportunity? Is that kind of step two or step three down the road and kind of getting the supply chain reoriented? And how big of an opportunity do you think that is, Bill, now that you have had a little bit more time in the seat? Bill Brown: So, Scott thanks for the question. Look, we continue to make good progress across all of the elements in our operations. Our cost of goods sold is $13 billion, a piece of it, a big piece of it is supply chain. So obviously, that is a high degree of focus. We are looking to drive 2% net productivity, so 2% net of inflation across all those elements, including in supply chain. We have about 25,000 direct suppliers, including 4,000 contract manufacturers. Our teams are working hard to consolidate that, drive performance. And we continue to do a good job on this. I think we are at the front end of what I would say to be a long journey. I think we get a lot of value out of basic negotiations. I think we have a lot more opportunity as we think more about value engineering in our product, that’s a relatively small component of our overall supply savings. So, the teams are working, I think, very, very hard on this. Again, as I step back across all the $13 billion, if you drive and get 2% net, you’re talking $650 million more or less of $250 million, $260 million worth of net productivity. There is a lot of value there that we can capture year-over-year. I spent a lit”