George explains how a complex system like the supply chain can be disturbed by external factors like government lockdowns, resulting in oscillations that can affect the entire system. He suggests that the best way to minimize the impact of supply chain crises is by becoming more time-based in the supply chain. By taking time out of the supply chain, companies can insulate themselves from these oscillations and have higher in-stocks and fewer out-of-stocks, which ultimately leads to more profits.
