Manufacturing Expert, Lisa Anderson, Presents 2019 LMA Advocate Award to Executive Peer Group Leader, Ronald Penland

September 16th, 2019

Manufacturing Expert, Lisa Anderson, Presents
2019 LMA Advocate Award to
Executive Peer Group Leader, Ronald Penland

CLAREMONT, CALIFORNIA – August 7, 2019 –  Manufacturing and Supply Chain Expert,  Lisa Anderson, MBA, CSCP, CLTD, president of LMA Consulting Group Inc., presented the 2019 LMA Advocate Award to Ronald Penland, President, Renaissance Executive Forums.

“It is a pleasure to recognize Ron Penland with our 2019 LMA Advocate Award.  Ron and I both work with manufacturers and distributors.  We have and continue to collaborate for the mutual benefit of our respective clients and are also part of several service organizations” Ms. Anderson commented. LMA Consulting Group works with manufacturers and distributors on strategy and end-to-end supply chain transformation to maximize the customer experience and enable profitable, scalable, dramatic business growth.

Business building, collaboration and experience is a hallmark of Ron Penland and his Renaissance Executive Forum groups.  “I really enjoy helping people grow their business.  From insights into managing the business, its growth and people to helping them find experts who can set a laser focus on a particular aspect of the business, I’m all about helping them grow.  Working with Lisa is always a pleasure.  She knows how manufacturers and distributors work and she is also aligned to help them maximize profits.  It’s an honor that she values our relationship” commented Mr. Penland.

Advocates, partners and centers of influence are key to LMA Consulting’s continued growth and success, as they work together to advance manufacturing and the global supply chain. “Over 14 years, I have learned that it takes more than hard work and intention to affect growth. It’s important for me to be connected with other professionals who can lend value to my clients and who can provide me with another perspective.  LMA Advocates help me do just that and more. I value Ron’s collaboration, as well as referrals for speaking engagements and client projects.  He is well-respected by his members who have received great value from his leadership.  I’m happy that he is also on my team” Ms. Anderson concluded.

About LMA Consulting Group – Lisa Anderson, MBA, CSCP, CLTD
Lisa Anderson is the founder and president of LMA Consulting Group, Inc., a consulting firm that specializes in manufacturing strategy and end-to-end supply chain transformation.  She focuses on maximizing the customer experience and enabling profitable, scalable, dramatic business growth. Ms. Anderson is a recognized Supply Chain thought leader by SelectHub, named a Top 40 B2B Tech Influencer by arketi group, 50 ERP Influencer by Washington-Frank, a top 46 most influential in Supply Chain by SAP and named a top woman influencer by Solutions Review. She recently published, I’ve Been Thinking, 101 strategies for creating bold customer promises and profits. A regular content contributor on topics including a superior customer experience with SIOP, advancing innovation and making the supply chain resilient, Ms. Anderson is regularly interviewed and quoted by publications such as Industry Week, tED magazine and the Wall Street Journal.  For information, to sign up for her Profit Through PeopleTM Newsletter or for a copy of her book, visit LMA-ConsultingGroup.com.
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Media Contact
Kathleen McEntee | Kathleen McEntee & Associates, Ltd. | p. (760) 262 – 4080 | KMcEntee@KMcEnteeAssoc.com   
                                                         

                                                                    
                                                         

 



Is there an ROI on a Forecasting System?

September 12th, 2019

A Client Question
Since forecasting can deliver significant benefits with increased levels of service, inventory turnover and margin improvement, the question that inevitably arises is whether it makes sense to purchase a forecasting or demand planning system. Of course, the answer is: “It depends”.

In one client situation, goods were manufactured in Mexico and purchased from Asia. Key customers were large retail outlets. Demand seemed to change daily.  Yet, lead times were in the months if the ‘right’ stock wasn’t in the ‘right’ place at the ‘right’ time. Of course, they could cover some small changes by adding freight costs but that isn’t a recipe for profit. Improving the forecast would improve their success. So, the question turned to whether a system would have a ROI.

The Answer
In their case, they could achieve a rapid return on investment by using a forecasting system. However, let me say upfront that more often than not, I do not recommend a system. It completely depends on whether it will drive the appropriate level of improvement and associated results or not. In this case, we could easily drive dramatic forecast accuracy improvement since we started out at such a low level of accuracy due to the business environment, industry and key customers. The people understood the importance of the providing forecast feedback and although the key customers didn’t have “good” forecasts to provide, they could provide data we could analyze. In these types of situations, we are able to reduce inventory by a minimum of 20%.  It should be noted, though, that results can be far greater.

Food For Thought
Although forecasting systems can be a great idea to drive service, inventory and margin improvement, they do not always provide a return. Take a step back to understand your industry from a forecasting point-of-view:

  • Is demand constantly changing?
  • Are you supporting small numbers of customer/location points with less than 25 items or is it 100 fold?
  • Are you able to gain key customer input and/or point-of-sale data?
  • Do you have anyone familiar with demand planning and forecasting to be able to make sense of what a system is telling you?
  • And, last but definitely not least, have you found the appropriate scale for your forecasting system?

Trying to kill a fly with an assault rifle is overkill. If you are interested in running your situation by us, contact us.

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Is Demand Planning/ Sales Forecasting Hype or Valuable?

September 9th, 2019

According to Gartner statistics,significant bottom line results can occur with just a 1% improvement in forecast accuracy. In fact, there are staggering improvements in lead time, inventory reduction and margins, so why not at least explore the idea? There are lots of worries expressed by clients and contacts:

  • We cannot predict what our customers will order!
  • Customers don’t even know what they will order! (And, in seeing these ordering patterns, I concur that this is often-times an accurate statement.)
  • Since we are using lean, our lean consultant told us we no longer need forecasts.
  • We are a small company and don’t have resources to focus on forecasting
  • And my favorite, “Why in the world would our significant sales team listen to you?”

I just have one question, if depending on the industry and study, a 1% improvement can lead to a 2.7% to 7% improvement in cash flow and minimally a few percentage points cost improvement in key categories such as freight, wouldn’t you be remiss if you didn’t consider your forecasting process? Of course you would be!

We have yet to run across a client that couldn’t improve the forecast, no matter how daunting the task seemed. Since the outcomes are substantial, it was worth the effort.  And, the effort was typically minimal compared to aligning the people on the forecast.

A few tricks of the trade in driving results with forecasting:

  1. Let your tool (whether Excel or a sophisticated system) do the work for you – From an 80/20 standpoint, there is no doubt that a simple tool will perform far better than even your best person. Develop your base.
  2. Focus on exceptions – On the other hand, your team is best equipped to provide insights and feedback on exceptions. Use their strengths.
  3. Drive results, not blame – Remember, the definition of a forecast is that it will be inaccurate. I’ve yet to run into a client with a perfect forecast. With that said, the three most impressive were across the board – a $100 million dollar facility of a multi-billion dollar aerospace organization with a manually generated forecast, a close to billion dollar consumer products company with a home grown system and smart people, and a rapidly growing <$10 million dollar manufacturer with an Excel-based system with smart, agile and process-oriented people. None of these folks ran around blaming anyone with forecast inaccuracy yet they all outperformed their competitors.

Perhaps it’s time to take a second look at your sales forecasting process. Who is responsible? How does it work? You never know what you’ll discover as you shine a flashlight on the process. If you’d like to discuss forecasting and demand planning further, contact us.

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Strategy Isn’t Long Term!

September 6th, 2019

As I meet with countless CEOs and P&L leaders at clients, via connections, at speeches, etc., I pay attention to what is top of mind. Strategy is always top of mind for the most successful business leaders! After all, if a CEO makes in the millions (the top 10 paid CEOs from 2018 made between $66 million and >$500 million), he/she is being paid for more than just executing the plan. Certainly, strategy is integral to the future success of the organization.

Yet, I see a lot of confusion about strategy. It isn’t complex. Strategy is figuring out the ‘what’. Whereas, tactics is the ‘how’. Strategy isn’t necessarily long-term. Who says ‘what’ should be long-term? In fact, some of the most successful CEOs are now focusing on rapid and agile strategy. Isn’t that what we need to succeed in today’s Amazon-impacted, rapidly changing business environment?

Focusing on the ‘what’ focuses on the outcomes and goals. In essence, where should your business end up? As Peter Drucker would say, strategy is “doing the right things”; whereas tactics is “doing things right”. Take a step back and think about his profound thinking. It is easy to spend all your time “doing things right”, isn’t it? It certainly is for me, and I am an expert in strategy!

What do you think Jeff Bezos is thinking? How to execute the best logistics plan or how to control the logistics landscape, just like a chess game? Of course, strategists need managers who are good at both strategy and tactics to make any strategy come true. And it is also true that strategies rarely fail in composition. Yet, more often than not, they fail in execution. Thus, it seems we must have both! We better know which is which and not be thinking strategy and tactics are long-term vs. short-term, or we will go the way of Sears and Toys R’ Us. (Quite sad as I still remember going to Toys R’ Us as a child around Christmas to explore all the possibilities. It was truly an experience!)

Have you thought about your strategy lately? If not, you better get on it before the next Amazon passes you by. And, let’s not get cocky, Sears used to be the Amazon in my lifetime. You never know who the next Amazon will be. If you are interested in a strategic assessment, contact us.

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Should You Hold a Meeting?

September 3rd, 2019
There is no doubt about it.  More than 80%  of our clients hold too many meetings that don’t accomplish results. Does your company follow suit? Even if you are following a lean methodology with an odd start time and a standing meeting, the key question is whether anything is accomplished. How would you rate your last meeting?
In our experience, sometimes the ‘lean’ organizations actually accomplish less because people believe they are following “best practices”. Take a step back and map out last week’s meetings.
  • What was the objective of each meeting? Do you even know the reason you attended? Often-times, clients go to meetings because they ‘have to’, not because they get something from them.
  • Did you accomplish the objective?
  • Did the appropriate people attend the meeting? Or was an entire group of people waiting on a key person? Or, worse yet, waiting on a non-key person?
  • Did the meeting start on-time and end on-time?
  • Did you have an opportunity to share meaningful input?
  • Did you feel like it was a productive meeting or a waste of time?
There is a reason the book, “Death by Meeting” is popular. Yet without meetings, would we accomplish goals?
As often as we encourage clients to curtail or shorten meetings, we also encourage other clients to hold meetings. The bottom line is whether the meeting will create value. If you use this simple rule prior to scheduling a meeting, we guarantee you’ll be more successful and productive almost immediately.
Consider a few questions for your next meeting:
  1. Is there anyone on your attendee list that doesn’t need to attend? Perhaps think about the meeting invitees as people you are paying to be there. Instead of a fixed cost, assume their time is variable. Imagine what they can accomplish not sitting in an unnecessary meeting, and take them off the list!
  2. Is anyone missing from the attendee list? I cannot tell you how often I end up in a meeting with a client where a key person isn’t in the meeting, so nothing can be accomplished. Why not wait until that person is available, be more forceful to get that person to the meeting or empower a delegate?
  3. Do you have a clear agenda with outcomes? This is less about a physical piece of paper or an agenda on a meeting request and more about knowing what you will walk away accomplishing in the meeting. Think again before ‘hitting send’ on your meeting request.
  4. Will you encourage feedback to make the next meeting better? In my global strategy group, we have started to not only talk about how to improve the next meeting but we are giving each other feedback. We might not want to hear constructive feedback but we are more successful with it.
  5. Is there a mechanism to track actions? Some clients call this a RAIL (rolling action item list) or something like it. Consider not taking notes and instead focusing on action.
Meetings are necessary in driving results.  Yet, do you need as many as you have? And do they have to be as long? I challenge everyone to reduce their meeting time by 50%. Give it a try, and let us know how it goes and what strategies you find the most successful. Also, even more interesting, how many meetings did you cancel?
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