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To start, could you briefly tell me about your role at GXO? How were you involved with warehouse management software?

We had proprietary software, and in my opinion, it was challenging because we had six different versions. Instead of iterating on the primary one, we had version one and many different names. For simplicity, let's call it version one. When they developed version two, it was almost a standalone upgrade, and they never retrofitted version one. When I arrived, we had six different versions of proprietary software. We were just finishing the newest version, called WMx, which created numerous challenges.

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What prevented the customers on version one from migrating to version two?

Some of it is a costing model. Imagine signing a five-year contract, and by year three, we complete version two. Now we want to shift everyone to version two, but some customers remember delays from version one, like a three-month delay to reach 100% ramp. It's not as simple as flipping a switch; it involves both the customer and provider spending time testing, piloting, launching, and refining to meet agreed rates. Many didn't want to do that. From a monetary perspective, we wanted to be paid for a better version, but they didn't want to pay more.

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