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Ralph discusses the importance of using indentations and tab stops correctly for bullet and numbered lists. He refers to a report template from the University of Wellington, pointing out inconsistencies in the alignment of bullets with headings in different sections. Specifically, he notes that bullets in Appendix B are not properly lined up, creating a visual inconsistency. Ralph demonstrates this issue further in an example of an executive summary where the bullets for different sections are also not aligned properly. He emphasizes the importance of making these corrections to ensure consistency in formatting.