“As we carry into Q4, we do expect to have strong cost performance. We'll probably be up about 1% per piece, which is still going to be less than our rev per piece growth rate.”

In context

“hts. Brian Dykes: Great. Yes, thank you. And yes, it's a great question because the cost performance in the third quarter was outstanding, right? And I think there's a couple of dynamics that are going on. As we said in our earlier remarks, we lapped the contract at the end of July, right? So you start to see that high wage inflation that we talked about in the second quarter as being 12%, now coming down to 5.2% and we will now get a full clean quarter of wage inflation at a normalized level in Q4. But also, as we mentioned, we've accelerated Fit to Serve and are now outperforming our forecast as well, as you'll see from the Network of the Future discussion that -- we've closed more sorts and we've closed more buildings. So we're pulling that forward, which helps in the cost performance. As we carry into Q4, we do expect to have strong cost performance. We'll probably be up about 1% per piece, which is still going to be less than our rev per piece growth rate. So we'll maintain a positive spread, but it'll be a little bit more normal as you go through it. Nando, you want to talk a little bit about network in future now we're pulling things forward? Nando Cesarone: Yes. Thanks, Brian. And look, you may be asking how are we able to have 45 operational closures and nine buildings that we've closed. We are moving much more volume about 5% through our automated facilities and we're also making sure that our legacy of production indices are performing the way we expect them to perform. The teams are doing an excellent job allowing us to really shrink the network and be a lot more productive. Safety of course helped. And at the end of the day, it comes down to hours and people, and we were down about 11 million hours compared to the last year. So real”