Category: Profit through People

The Talent Transformation: People or Robots?

April 14th, 2019

automationNo matter the industry and geography, the topic of “People vs. Robots” is a hot topic!

Certainly, manufacturing has been focused on technology and automation for quite some time to navigate the path to thrive in the modern environment of high costs, regulations, and elevated customer demands.

The Manufacturing and Technology Expo in Pittsburgh is going back to the theme of the 1939 World’s Fair, “The World of Tomorrow”. The Manufacturing sector has seen positive job growth not seen in 79 years. As Industry Week says, “We don’t have smoking robots but we have ones that perform lung surgery.”

Our APICS Inland Empire Chapter is hosting an executive panel and networking symposium on just this topic, “The Talent Transformation: People or Robots?” on April 13th at Harvey Mudd. We have an intriguing panel of executives and experts to discuss automation, robots, IoT, AI and much more. How do we co-exist successfully? Join us to learn more and probe further.

In logistics circles, there is quite a bit of worry and opportunity. According to a University of Redlands study, most large metropolitan areas are subject to losing 55% of their current jobs due to automation. In Inland Southern CA, that number expands to 62%. However, it depends on your thought process. UPS automated a section of their facility that reduced the number of people they needed by 100 yet they ended up hiring as they absorbed additional volume. Additionally, it depends on whether you are furthering your education and skills. We find proactive employees and employers in our Association for Supply Chain Management (ASCM)’s APICS certification classes who want to learn and grow.

For Inland Southern California, we have a particularly unique opportunity or challenge, depending on how you want to look at it. According to a Brookings study, we must focus on advancing the capabilities and competitiveness of local firms in opportunity-rich manufacturing and logistics industries. What an opportunity for us to leverage technology hand-in-hand with talent to THRIVE.

If you are interested in discussing whether your organization is prepared to leverage these opportunities and what priorities should emerge, contact us. We are experts and would love to see the U.S., California and the Inland Empire take advantage of this tremendous opportunity to enable scalable, profitable growth.

Find out how to navigate disruption and achieve peak performance.

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Profit Through People



The Talent Transformation: People or Robots?

April 10th, 2019

The hot topic in manufacturing, supply chain, healthcare and other industries is the war on talent. No client believes he has enough “high-skilled” resources yet most also feel challenged in finding resources regardless of skill level.

On the other hand, there are statistics and studies showing that there is a talent transformation underway. According to a university of Redlands study, Most large metropolitan areas are subject to losing 55% of their current jobs due to automation. In Inland Southern CA, that number expands to 62%. Thus, what are we doing to get ahead of these trends?

I am the president of the Association for Supply Chain Management (ASCM)’s APICS Inland Empire chapter, and we are hosting an executive panel and networking symposium on this hot topic. We have a powerful lineup of panelists to discuss and debate the talent transformation and the impact of technology and automation.

  • Paul Granillo – CEO of the Inland Empire Economic Partnership (IEEP)
  • Cindy Elliott – Global Go-to-Market Strategy Manufacturing and Supply Chain, ESRI
  • Jerry Hsiung – Robotics expert, Carnegie Mellon & Harvey Mudd
  • Jermaine Waltemeyer – Recruiter/ Practice Lead, Aerotek

Lastly, we will be adding a manufacturing/ supply chain executive to the panel as well. Seats are going quickly. Learn more and register here.

One tip to implement this week: 

Certainly, if you are interested in getting ahead of the curve in manufacturing, supply chain, healthcare and more in terms of technology and talent, join us at our symposium. It is bound to give you a few ideas!

In addition, join us at APICS-IE for our webinars, tours and programs as we will be talking about this topic and seeing it in action. For example, we will be scheduling a webinar on the digital transformation as well as tours of facilities at various stages of automation. There are also other groups that focus on these topics. For example, the Manufacturing Council of the Inland Empire (MCIE) has its annual summit in February, and the IEEP hosts the Supply Chain Summit which will be on April 26th.

Additionally, of course, there are tons of on-line resources such as the National Association of Manufacturers. And, one key to success is to expand your network so that you have resources and connections that can support your growth and advancement. Think about connecting with a colleague and start a conversation.

 



What is More Effective – On-site or Remote?

March 30th, 2019

Lately, I’ve had quite the mix of on-site and remote events.  So, it got me thinking about on-site vs. remote. Which is better?  

  • Manufacturers’ Summit – I introduced the innovation awards and announced the winners at the recent Manufacturers’ Summit. Could this be done effectively remotely? In my opinion, no!
  • Global Strategy Session – I also recently participated in a short check-in session with my global growth group. After resolving my video difficulties so that I wasn’t blurry,  it worked out perfectly. There is no reason I should go across the world for 3 hours!
  • The Society for the Advancement of Consulting –  My business partner, Linda Popky (in Northern CA) and I have participated on multiple Zoom calls with members from the U.S., Canada, Europe and the Pacific Rim to collaborate on increasing member value and related topics. We find these to be ideal remote settings yet we also have in-person regional and global events. You might find me sitting in my car prior to a client meeting on a Zoom call with Australia & Germany.
  • Client workshop with facilities across the U.S. and Canada to implement planning process upgrades – the reason I write this from Minnesota in sub zero temperatures is that this workshop is best done in person. With that said, we have weekly interactions remotely to implement successfully in-between these workshops (which occur about every 6 months). Since MN was chosen for March, perhaps AZ will be in August 🙂
  • ERP Demos – since I currently have several ERP selection projects, I have participated in several demos. Some need to be done in person to ensure project success and others would be a waste of time to attend in person. It depends!
  • Aerospace & Defense speech – the picture shows that clearly I presented in person. Although they record the session for members to listen to afterwards, the value is far more significant with in-person interaction!

One tip to implement this week:
Don’t just assume remote or in-person is always better. The answer is: “It depends”. If you are bringing together cross-functional participants in a workshop-like setting, perhaps you should invest in travel to get together. On the other hand, if there is an expert who can participate remotely to contribute as needed, that also can be value added and cost effective.

Don’t just do what you’ve always done. I used to drive 60+ miles each way to clients for a few hours frequently. Sometimes it was exactly what I should have done.  Other times it was because I defaulted to doing what I typically do. Then one day, I tried to call or do the meeting via Zoom, and I realized the value was equal yet the wear and tear was now non-existent! Thus, I always ask myself about what will achieve the desired outcome. Sometimes remote is better.  Other times, in-person is better. Use common sense.

Assuming you decide to test out the remote option, there are a few items to keep in mind:

  • Act as though you are sitting in a meeting, and don’t allow distractions to take over.
  • Make sure you keep ambient noise down
  • Use video to your advantage so that you can show each other items or emphasize your communications with non-verbal language.
  • Test out technology in advance
  • Just give it a try. What’s the worst that will happen?

And, keep in mind that in-person still provides value. The higher tech we become, the higher level of touch required!

 



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.

 

 



Ideas to Fill Peak Capacity Periods

February 27th, 2019

As we toured several e-commerce facilities such as UPS and Amazon, it became obvious that the sheer volume during peak season presents a huge dilemma. For example, UPS goes from 250-300 containers per night to 450 during peak season. Now that is quite a surge! Amazon has similar surges and stated facts such as 68 million orders on Cyber Monday.

Peak season occurs in other industries, as well. For example, building products companies tend to have a summer season since there are more issues to navigate in winter conditions. Since working with a large number of these companies, we’ve seen it range from a low of around 10-20% surge to almost 70% of the year’s volume sold during the summer. That can definitely be a challenge to navigate!

In this case, we are talking about labor but the same issues relate to machine capacity, storage capacity, transportation capacity and many others. We find that this area alone can achieve a significant return on investment as companies better align demand with supply. In fact, in 80% of our clients, these types of programs do the best job of achieving bold customer promises and profits simultaneously.

We have found several ideas to fill peak capacity periods. Of course, there is no one formula for success.  Each company has unique circumstances that require different solutions. However, a few ways to meet peak capacity include:

  1.  Hiring temporary workers for the peak season – of course, this strategy sounds like an easy win. If only it were that easy! UPS starts hiring seasonal workers prior to the holiday season in order to provide training. In 2018, they expected to bring on 100,000 seasonal workers. Over the last 3 years, 35% were hired into a full-time role after the peak season, creating an interesting enticement. Since every e-commerce related business needs seasonal workers, you need to provide some sort of benefit or enticement to fill these positions.
  1.  Overtime – of course, this is commonly used throughout manufacturing and logistics organizations. We’ve seen many aerospace firms running at high rates of overtime for many months, even years, in a row. It can be a tricky issue as employees become accustomed to higher paychecks, and the costs add up. On the other hand, people get tired and can get less productive and want a break. Counter-intuitively, it can also be the better financial decision given the learning curves associated with complex manufacturing roles. Of course, the answer is, “It depends”.
  1.  Hiring people with developmental disabilities – as our Inland Empire Economic Partnership leadership regional academy toured Goodwill and we have worked with clients such as Oparc, we have learned that people with development disabilities can be an ideal solution to fill peak capacity.  Thanks to Oparc for their research statistics: 1 in 7 people have intellectual or developmental disability, yet, only 19% participate in the labor force, leaving a significant opportunity to supplement the labor force. Studies show that these folks rate higher in reliability, productivity and loyalty. For example, a DuPont study showed that 90% of employees with Disabilities rated average or better on job performance. According to Walgreens, disabled employees had 40% lower accident rate, 67% lower medical treatment costs and 78% lower overall costs associated with accidents. And, Marriott shows a 6% turnover rate vs. 52% overall. It is worth checking this option out! Please contact us for a referral.
  1.  Partnering with companies with counter cyclical peak seasons – again, have you thought about partnering with strange bedfellows? Why couldn’t an e-commerce company with a winter peak season collaborate with a company in the building products industry with a summer season? In a way, the 3PLs follow this model. Having counter cyclical clients is an important aspect of maintaining a strong workforce as a 3PL.
  1. Outsourcing – one of the advantages of outsourcing and overflow capacity is that you can use it when you need it. Of course, you’ll pay a premium but it can still provide maximum value in several cases and meet the peak season requirements.
  1. Leveraging your extended supply chain – you never know what collaboration might make sense with your suppliers, customers and other supply chain partners until you ask. Explore the possibilities.

One thing is definitely true. You will not succeed during peak season if you wait until it hits to address your capacity shortfalls. Be clear on your strategy and make sure to build it into your plans. It isn’t all about peak season. Perhaps off-peak is “the time” to upgrade your infrastructure such as your ERP system, your business processes and to explore your customer collaboration opportunities. If you’d like an expert to weigh in on your plans, contact us.

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