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Students & the Future of the Profession

March 22nd, 2019

In the last few weeks, our APICS Inland Empire students have been on fire! As the president of APICS Inland Empire and Chair of the MCIE (Manufacturing Council of the Inland Empire) Innovation Awards, I am absolutely thrilled to announce:

Cal Poly Pomona Global Student Challenge

Cal Poly Pomona Global Student Challenge

 

 

 

 

 

 

 

Harvey Mudd MCIE Innovation Award

Harvey Mudd ASCM_ APICS

 

 

 

 

 

 

 

Feeling optimistic about the future of our profession? Absolutely!

One tip to implement this week:
Who wouldn’t love to send this newsletter? We are on a roll! It certainly gives us hope and excitement about the future of our profession. As an APICS Inland Empire chapter, our Board of Directors and members collaborate closely with many student chapters (CSUSB, Cal Poly, UCR) student teams (Harvey Mudd, University of LaVerne, Drucker) and community colleges (Norco). Often, we learn more from the students than vice-versa.

Not only are they “go-getters” but they also have technical skills and can present powerfully to a mock board of directors. These students know that to succeed, they need to do things differently, think about things differently and stand out from the crowd. After all, innovation isn’t for the faint of heart! It requires failure and persistence, just the qualities that go into resiliency.

Interested in joining us? We would love to have additional participation with our students. One way you can get started is to join us at our spring executive panel and networking symposium for discussions on the topic “Talent Transformation: People or Robots?“. We always learn just as much as we share. Speaking of which, if you have a top notch executive or expert to recommend for our panel, please contact us.

 

 



Trump Signs Order Prioritizing AI Research

March 18th, 2019

According to the White House, President Trump signed an executive order directing the U.S. Government to prioritize artificial intelligence in its research and development spending. The focus is on ensuring that AI develops in sync with U.S. values and that training for the future workforce is prioritized. This is a culmination of meetings with Google, IBM and Microsoft and reflects the  commitment to focus on leading edge technologies. From an industry point-of-view, this focus is applauded.

The talk is that AI will transform entire industries. There is no doubt that without a focus on advanced technologies and the associated training and workforce efforts, you will be left in the dust, similar to looking for a payphone along the side of the road. Whether in a meeting with CEOs or the consortium for supply chain and advanced manufacturing excellence or at a client focused on increasing demand, AI is a part of the discussion.

I just so happen to be attending a Microsoft Dynamics Day to stay up-to-speed on the latest technologies.  AI has already arisen as a key topic and focus area. Microsoft is building AI into their tools. Here is a press release explaining AI in the recent release of the software. Of course, Microsoft is just an example as every leading edge technology player has at least some level of focus on AI.

What Should We Consider and/or What Impacts Could Arise?
There is no doubt about it. AI will impact every industry in some way, whether directly, through suppliers or customers or in terms of service and cost expectations. I never recommend jumping on a bandwagon blindly. After all, how many companies outsourced when it was “the craze” and now regret that decision because it didn’t make sense when looking at the full picture? Plenty! On the other hand, you must be informed and consider the options and implications for your business.

There are many opportunities to learn about AI and its potential impacts so that you can integrate in your strategy. For example, our APICS Inland Empire chapter‘s upcoming Executive Panel and Networking Symposium will be on the topic, “Manufacturing & Supply Chain Talent Transformation: People or Robots?“. Join us for this education and networking opportunity. However, this is just one option. Ask your CEO group. I see this as a valuable benefit from collaborating with peers! Contact me if you’d like a referral. Attend a trade or industry conference. Read industry magazines and the Wall Street Journal. Pay attention to the news related to your industry, your suppliers, your transportation partners and your customers. Talk with an expert and/or ask your expert to assess your situation and provide recommendations.

In our view, keeping key technologies such as AI top of mind is part of creating a resilient supply chain. Without a doubt, those with a resilient supply chain are far more likely to succeed in these changing times. To learn more about how to create a resilient supply chain to navigate disruption and achieve peak performance, check out our new series or contact us for customized expertise.

 

 

 



What do UPS, Shamrock Foods, Amazon & a 3PL Have in Common?

March 14th, 2019

In touring multiple facilities, ranging from package shipments to cold storage food service delivery to the e-commerce behemoth to 3PL organizations, it despite the conversations that take place about labor costs and other daily concerns, the #1 concern across the board is transportation costs. The numbers support this sentiment. According to CSCMP, transportation costs are 65% of total logistics spend.

Logically, it also makes good sense. No matter your business, materials, parts sub-assemblies and/or products need to arrive at your facility. Often, especially in industries such as aerospace, the parts make multiple trips around the area (unless you are unlucky enough to require sourcing outside of your local area) for outside processing services such as anodizing and painting. Lastly, every work-in-process part or finished good must go to the next stop along the way to the customer such as a final assembly customer, your distribution center, your customer’s distribution center or the end customer. That makes for quite a lot of transportation, often involving multiple modes of transport from air freight to ocean freight to rail to trucking.

Given these alarming statistics about transportation costs, the question becomes: What can we do to proactively manage these costs as well as reduce the impact on the environment? After listening to several experts on these tours and experts from Georgia Tech, APICS (learn more about the critical importance of logistics in our APICS-IE CLTD, certified in logistics, transportation and distribution certificate program) and CSCMP SoCal (at the state of the industry event), a few ideas emerged.

  1. Collaborate with strange bedfellows:As recently published in an I’ve Been Thinking article, collaborating with strange bedfellows can achieve 1+1+1 = 25 minimally. In terms of transportation, there is no doubt maximizing the space used in your truck, container or plane is vital. Why not collaborate with another business to increase your utilization?
  2. Take the holistic or systems view: It is quite challenging to see the forest for the trees as the old slogan goes. We have all been there! I have worked with clients for extended periods of time and found myself with this same issue.  So, I have to deliberately shake it up to maintain the systems or bird’s-eye view. For example, don’t worry about saving a few pennies on a non-essential element of your transportation infrastructure when you are missing the key point that your mix of modes of operation or something like that is costing you millions.
  1. Utilize technology that focuses on the critical transportation factors: In every case (at every tour, event and in every conversation), leveraging technology where it makes sense came up. Certainly, artificial intelligence is the new craze since it has the potential to transform entire industries including logistics. However, robotics are being considered even in industries such as 3PL where they never were previously due to the nature of managing different customers and products. Of course, IoT is prevalent in the world of logistics and transportation as well as topics such as alternative fuels and automation. And what about the basics of a solid ERP system and TMS (transportation management system)? Don’t panic over the horror stories. Contact us if you want to overcome them.
  1. Be customer friendly:Interesting how often being customer friendly arises, no matter the industry or size company (small family owned to private equity backed to large complex organizations).  With rising truck rates and a shortage of drivers, if you aren’t a preferred shipper, you might just be out of luck no matter how much you spend. What does it take to be a preferred shipper? It depends on your business, carriers, locations and more. However, it starts by thinking about what is important to your carrier (not you). Are they looking for flexibility? A quick turnaround time? Fast payment? Good treatment for their drivers?

Since transportation costs are, at minimum, 65% of your total logistics spend, it requires further thought. With the vast amount of technology options available, the best approach is to start with your foundation (your ERP system) and ensure it is stable. Once you have a scalable base, find the ‘right’ technology for your situation to maximize the value of your logistics infrastructure. However, remember the 80/20 goes back to people. What are you doing to develop strategic partnerships and to ensure you are customer friendly and a preferred shipper? Given the impact, don’t leave this to chance or make assumptions. We all like to think we are preferred but what can we do to take it an extra step further?

Did you like this article? Continue reading on this topic:

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Have You Thought about Increasing Demand?

March 8th, 2019

If you are reading our newsletter, I have no doubt you are interested in increasing demand. Whether an owner, executive or key player, increasing demand for your products and services has to be top of mind. Let’s put it this way. No matter the position of my client (typically a CEO, Owner, CFO, General Manager or Board member), he/she is interested in increasing demand.  Consequently, the projects we work on are typically related to increasing demand, either directly or indirectly.

I was on a panel about increasing demand at the Anti-seminar Executive Luncheon. We had interesting discussions about demand from several diverse points-of-view. Thanks to Chase Photography, you can see them as a livestream on Facebook – video 1 and video 2 (about 60 minutes total). In thinking about how to increase demand, a few highlights include:

  1. Observe how your customer uses products and services –An often-overlooked gem is to follow Apple’s lead and observe how your customers are using your products and services and look for ways to enhance their experience. Have you taken a step back lately to look for areas where you can further help your customer?  Do you make working with your company onerous? That’s an obvious one yet commonplace. Imagine if you looked further!
  1. Do you provide a superior customer experience? If you ‘shopped’ your business, would you want to buy from it? Do your customers receive their products and services as ordered and in good quality/ condition? On-time? Quicker than the competition? Do you allow for easy returns? Hopefully you answered yes to each of these. We’ve found that this solely achieves a base level of customer service. Thus, the question becomes, “What are you doing to go over and beyond to make your customer compelled to return to you?”.
  1. Are you referable? First, people buy from people; not companies. Are you people referable? The #1 strategy to increase demand is referrals. No matter whether we are talking about a manufacturer, distributor, transportation partner or service organization, referrals can generate more business than any other method. Just as much as we enjoy buying the latest technology based on the referrals from our friends, the people working at companies also refer. When is the last time you attended an industry event or conferred with local CEOs? You better believe business gets done based on word of mouth.
  1. What can you take over for your customer? We have found that whether the industry is aerospace and defense, food and beverage, building products or healthcare products, there are opportunities to take over tasks for your customer. One common and prevalent one is to figure out what your customer needs at each of their branches/facilities and keep them replenished so that they have the ‘right’ inventory at the ‘right’ place at the ‘right’ time. We see this as gaining relevance.  Distributed inventory is becoming an essential element of the end-to-end supply chain plan as customers expect Amazon-like service and will find someone else if you cannot meet their needs.

When at PaperPak, we won supplier of the year for two years in a row with our #1 healthcare products customer because we implemented vendor managed inventory and were able to maximize their service levels while minimizing their inventory levels (cash tied up throughout their system). It didn’t hurt that we also grew the business by partnering further with them while reducing our costs and inventory levels as well. Have you thought about taking a request from a customer and turning it into increased demand for you?

Our most successful clients are thinking about these types of strategies to increase and manage demand. Why not spend a few minutes to listen to the expert panel and walk away with a few insights? If you’d like an expert to assess your situation to partner with you to achieve these types of results, contact us.

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What is at the Cross-Section of Success?

March 4th, 2019

In thinking about the tours and events in which we’re recently participated, spoken or led, the audience represented a great cross-section of manufacturing and logistics industries, as well as company size:

  • Professional Women in Healthcare – spoke on the Amazon Effect
  • Aerospace & Defense Forum – spoke on the resilient supply chain
  • Anti-seminar themed Executive Luncheon – was a panelist on the topic of increasing demand
  • CSCMP state of the industry event – listened to the president of CSCMP discuss the latest statistics and timely topics in logistics
  • ProVisors manufacturers and distributors event – featuring a City National Bank expert discussing an economic forecast
  • The Founder of the UGG brand – talking about how he created the UGG brand and grew the company from the back of his van to what it is today
  • Tours of UPS, Amazon, Pacific Mountain Logistics, Shamrock Foods, Goodwill, Lifestream, ESRI and more.
  • Meetings with 9 academic institutions in the Inland Empire and surrounding areas
  • Harvey Mudd executive roundtable event –  M&A and preparing for sale
  • Webinars with APICS-IE on IoT and with the Society for the Advancement of Consulting on overcoming obstacles, leveraging PR and more.
  • And more…

So, what is at the cross-section of ALL of these tours, events and/or interactions?

The need for a resilient end-to-end supply chain!

What is in common is the sheer amount of volatility and disruption. Whether the disruptor or the disrupted, entire industries are transforming the way business is done. Some are preparing to have artificial intelligence and automation take over. For example, according to research performed at the University of Redlands, 60%+ of jobs are subject to automation by 2025. Others are dealing with massive benefits or disruption from changes in trade, depending on their role, while others choose to ignore the hoopla and are growing while everyone else is caught up in the chaos! And, this is just the beginning. Trade wars or not, many companies are near-sourcing, and looking at additive manufacturing and vertical integration.

What’s next? If you develop a resilient supply chain, the idea is you don’t have to worry because you’ll successfully navigate disruption to achieve peak performance. Contact us if you’d like to find out how to create a resilient supply chain.

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