Category: Organizational Development

Navigating Through Volatility Webinar Series

April 6th, 2020

Clients, Colleagues, Business Partners & Friends,

As you know from our recent newsletter, we are providing several resources for businesses and individuals to help navigate this coronavirus pandemic AND prepare for when business ramps back up. Manufacturing and supply chain professionals have a particularly challenging job as we navigate how to meet customer needs, keep the business running during these volatile times (or moving forward in whatever way possible) and prepare for the future.

Because we wanted to provide strategies, ideas and tips for how to navigate through this period successfully, we have sponsored the Association for Supply Chain Management (APICS) Inland Empire Chapter‘s “Navigating Through Volatility” webinar series. The APICS Inland Empire Chapter has been working hard behind the scenes to bring together resources that can further support your efforts in a webinar series designed to bring practical perspective, guidance and information on a range of topics to manufacturing and supply chain leaders.

Upcoming Webinars include:

For more information about our upcoming webinars, visit the APICS Inland Empire website.

We will be adding webinars as we confirm speakers. If you are interested in a topic that you do not see, please let us know so that we can reach into our networks to find an expert in that area. You can register for the webinars using the registration links above or with the links included on our website. 

At LMA Consulting Group and APICS Inland Empire Chapter, we are here to provide practical value and resources to our clients and members. We hope you find this webinar series of value during these unprecedented times and wish that you and your families are safe and healthy.

Lisa Anderson

President

 



Where is the Toilet Paper?

April 6th, 2020

I started receiving calls after the lockdown with the key question on reporters’ minds, “Where is the Toilet Paper?”. Thus, I thought I’d share a few conversations with you. First, I was on Rip City Sports Radio about just this topic. It was a lot of fun! I love the fact that we talked about toilet paper on sports radio!

Next, I was on Supply Chain Chats on the supply chain implications of coronavirus. Of course, we talked about toilet paper as well, and we went into more detail about the supply chain impacts and potential lasting effects.

Last but not least, toilet paper is also of keen interest in written news. I was quoted by the Santa Clarita Valley Signal on “Restocking shelves amid the novel coronavirus” and I’m thrilled to be quoted in a positive article related to toilet paper by Courthouse News Service, “Texas Grocery Chain Does a Bang-Up Job Against Coronavirus“.  Did you ever think we’d have so many conversations about toilet paper?One Tip to Implement This Week:

I’m in the process of putting together a whitepaper / e-book on successfully navigating the manufacturing and supply chain impacts of coronavirus, and so stay tuned. With that said, all the conversation about toilet paper brings up the significant impact of spikes in demand on the supply chain. We have been schooled for quite some time to think about lean philosophies. If you took that literally, you would be out of toilet paper almost immediately as supply shortages arose due to the spike in demand.

Thus, my first tip is to remember common sense. Don’t take any concept literally or 100%. It doesn’t matter if it is good or bad, anything in extreme is likely to have gaps. Instead, listen to the experts and apply common sense for your situation, your team, your family etc.  As my brother said, I guess this is when his hoarding tendencies come in handy! But, of course, hoarding in general creates a new set of problems.

Stay safe and healthy. We continue to post coronavirus resources, write blog articles on navigating coronavirus as well as “beyond lockdown” strategies, and we are sponsoring APICS Inland Empire‘s “Navigating Through Volatility” webinar series. Join us and learn more here. As an executive director of SAC, we are also hosting a “Thriving Through Ambiguity” webinar series with a nominal fee for non-SAC members. Let us know if you have topics you’d like addressed. We would love your feedback.



Supply chain strategy: Modernization tips from Lisa Anderson

March 27th, 2020

As Published in:  Ratelinx

For business leaders looking to modernize their supply chain, the technology investment is the easy part: Evaluate solutions, calculate the ROI, make your business case, and take delivery. Sure, it can be tricky to get sign off on these tech investments, but it’s a business problem with a logical solution.

The more challenging part is preparing your organization to take full advantage of that investment. That means getting people on board, ready for the change, and developing new processes that take full advantage of the new tech.

“High tech must be accompanied with high touch,” says Lisa Anderson, supply chain consultant and President of LMA Consulting Group, Inc. “The most successful supply chain leaders will remember that people are their number one asset.”

We asked Lisa for her perspective on the current state of supply chain, the key trends that are driving change, and how you can prepare your team for what comes next. Read on to learn what she had to say.

Modernizing Your Supply Chain Strategy

The right supply chain strategy includes technological investments, process refinements, and a change management plan for your team. It should be detailed enough to act upon, but flexible enough to account for changing trends. Here’s how to get started.

Key Trends Driving Supply Chain Modernization

For most businesses, there are two factors that make modernization essential. First, there’s sustainability: Consumers are looking to buy from sustainable companies. That means companies are under pressure to not only work with sustainable suppliers, but to prove they’re doing so.

The second factor is perhaps an even bigger driver for change: The demand for near-instantaneous, free shipping for ecommerce. “In the next five years, customers will be expecting Amazon-like service levels at affordable rates, regardless of the high levels of disruption,” Lisa says. “Reshoring, near-sourcing, and sourcing reevaluation will be major concerns.”

Lisa predicts high levels of adoption for new technologies to meet these demands. “The use of technology such as artificial intelligence, IoT, predictive analytics and other technologies will enable meeting these customer needs while maximizing profit and cash flow,” she says.

 

“In these early stages, it’s important to focus in on the
most relevant data to drive decision-making. ” 

Getting Started with a Modernization Strategy

The actual nuts-and-bolts process of building a strategy is the same as solving any problem in your organization. “Start with the outcomes you’d like to achieve,” Lisa says, “then perform an assessment and gap analysis of your people, processes and technology. Assess your change management capabilities to achieve your outcomes. Finally, design the solution and build an implementation team.”

The process may be familiar, but knowing where to start can be a challenge. The first step should be getting a clear picture of your current supply chain. “Start simply and create a dashboard or availability screen that shows your supply chain status; however, remember that if you don’t pay attention to process disciplines, garbage in will result in garbage out,” says Lisa.

In these early stages, it’s important to focus in on the most relevant data to drive decision-making. But don’t try to boil the ocean: “Data plays a vital role; however, do not get sidetracked and overwhelmed with data. Start with your No. 1 priority, find directionally correct data and enable visibility,” Lisa says. “Once your team and supply chain partners understand this data, move to the second largest priority.”

Once you have your supply chain mapped out, you can start to implement solutions that will pay off in the short term and in the long run. A.I. and IoT initiatives have the potential for a quick win. Lisa says in her consulting work, she’s seeing “Artificial Intelligence and IoT used in predictive analytics and forecasting as top priorities. Getting ahead of customer demand drives significant supply chain value.”

Train and Hire the Right Skill Set

For Lisa, the human element is an often-overlooked, but crucial, part of supply chain modernization. “I’ve found that a more dramatic ROI can occur by aligning the people, even more than the data and the process,” she says.

When bringing in new talent, Lisa recommends looking for data science fundamentals. “Data analytics, the ability to leverage ERP systems and think through down-the-line impacts as well as tying business process to systems design are all part of the equation,” she says. “But we should also look at soft skill requirements, such as the ability to collaborate.” Collaboration, big-picture strategizing, and lateral thinking are all essential characteristics of a modern supply chain expert.

The ROI Potential of Supply Chain Modernization

Remodeling your supply chain is not without risks, and it’s a process that takes time and resources to ensure success. But the rewards are worth the effort. “It depends on the situation, of course,” says Lisa, “but it isn’t uncommon to see a five or 10:1 return on investment from supply chain transformation improvements.”



Supply Chain Heroes: How CFOs Can Help Save the World

March 25th, 2020

As Published in: Oracle/Modern Finance

Early this year, the largest asset-management company in the world made a bold announcement: It would start redirecting investments away from fossil fuels because of climate change. In his annual letter to CEOs, BlackRock CEO Larry Fink stated that “climate risk is investment risk,” and that risk is driving a fundamental reshaping of finance.

“Because capital markets pull future risk forward, we will see changes in capital allocation more quickly than we see changes to the climate itself,” he wrote. “In the near future—and sooner than most anticipate—there will be a significant reallocation of capital.”

For manufacturers, retailers, and others that move business or consumer goods, a reallocation of capital will require tighter alignment between the CFO and supply chain leaders. This is already happening among the leading-edge CFOs I meet because they recognize the end-to-end supply chain is driving customer experience, profit performance, and working-capital improvements.

As more companies start reshaping strategy in response to climate change risk, this CFO/supply chain alignment will become more critical to achieving business and environmental goals. In fact, CFOs could find themselves being the heroes of the next decade’s climate-change success stories.

Assessing the payoff for climate change initiatives

CFOs will need to be front-and-center to assess climate change initiatives related to packaging, material handling, transportation, and logistics because changes in these areas tend to have widespread impact.

For example, consumer packaged goods (CPG) companies are feeling the most pressure from climate change activism right now. Packaging is a big target for waste reduction but switching container sizes or materials can have direct and indirect cost implications. There’s a change in direct costs for replacement packaging, but material handling and transportation costs also could shift because of weight, storage, handling requirements, and other relevant factors.

Another example is investment in technology systems. For instance, buying products that are sustainably sourced and handled is important to a lot of consumers, and trust is essential for companies that want to differentiate themselves on this point. New blockchain applications are enabling this verification down to a granular level. While an ideal investment from a marketing point of view, what will the impact be on logistics? Will shipments slow down or speed up? How will the change affect fulfillment and customer satisfaction?

Cloud applications and other advanced technologies have made it easier to conduct real-time analysis and identify upstream and downstream impacts from business decisions like these. Such decisions will require collaboration and ongoing discussions between finance and supply chain leaders to meet all business requirements successfully.

Supply chain health and environmental health are linked

Even if a company isn’t a leader in climate change-reduction efforts, improving supply chain performance will naturally make operations more environmentally sustainable. I’ve seen this over and over again in my decades of working in supply chain management.

Supply chain services and assets are expensive and don’t usually generate cash, so they’re a frequent target of cost reduction. The outcomes of these cost-reduction efforts reduce environmental impact because fewer miles are traveled, inventory replenishes more often and doesn’t become obsolete, and there’s less material waste in damaged goods and over-packaging.

This might be an obvious example, but when you think about on-the-horizon innovations, such as biofuels made from landfill waste and autonomous vehicle and aircraft deliveries, you can see how supply chains could become proactive enablers of reducing climate impact.

Another reason for CFOs to focus on supply chain when developing an impact-reduction strategy is it could help recruit supply chain talent. We’re experiencing a shortage of supply chain professionals across manufacturing, retail, logistics, and a range of other companies. Having a solid stake in climate change-reduction efforts could help attract limited talent, especially Millennials. A recent survey found that 75 percent of Millennials said they would be willing to take a pay cut to work for a company that is environmentally responsible. And nearly 40 percent said they have chosen one company over another in the past because their choice had a better environmental record.

Millennials will comprise three-quarters of the workforce within six years—so statistically, companies with stellar environmental practices will be a top position to recruit talent.

Finance and supply chain: Teaming up for sustainable operations

First and foremost, CFOs want to be good stewards of business assets. For many companies, the supply chain is central to value creation. So, it’s not surprising that CFOs at these companies are paying closer attention to their supply chains from a cost point of view.

Now, climate change is raising risk in ways that require a rethinking of how to grow and protect those assets. As markets begin to respond and shift, supply chain leaders and CFOs will find themselves facing the challenge together.



Coronavirus: Resources for Businesses & Individuals

March 20th, 2020

What else could we be thinking about this week?!?!

Of course, the coronavirus is top of mind. I met with a group of top notch trusted advisors yesterday (via Zoom) and we shared resources. We had trusted advisors including CPAs, attorneys, HR consultants, bankers, insurance providers and many more. Because it was so valuable for each of us, I wanted to share these resources with you. Click here

We will continue to add links with valuable information in each section. For example, there are articles on FAQs for employers, working remotely, how to keep your sales team motivated and several more. We will continue to add articles as well.

Now that the basics are covered, I’ll also be adding manufacturing and supply chain specific articles and videos. Stay tuned here.

One Tip to Implement This Week:
Although the news is quite unsettling, the key is to follow the guidelines for social distancing, be extra careful but do NOT stop.

Some of our clients cannot keep up with the volume (for example, food processors/manufacturing).  Some have seen a quick slow down (for example, those supporting schools).  Others are concerned with the 90-120 day likely slooooow down from China (The latest reports show that China is back up to around 50%; yet, it depends on your unique situation as some are 70-80% and others much worse) and some are seeing a mixed bag.

No matter your situation, there are strategies you could use to move forward successfully. Spring into action!

Of primary focus is to get in touch with your supply chain. Talk with customers and suppliers. Don’t just stop there. Find out about your customers’ customers and your suppliers’ suppliers. Understand your landscape and put action plans in place. There was never a better time to extend a helping hand into your supply chain. We’ll talk about many more actions in a special series to be launched in the next few days but start here.

Last but not least, it is a stressful time for many and please try to remember with each interaction!