Tag Archive: clients

The Strategic Benefit of SIOP

June 26th, 2019

SIOP (Sales, Inventory, Operations Planning) should not be relegated to the Planning Department. Although the planning group is a key participant and might lead the process, SIOP touches upon several strategic issues while creating alignment with Sales, Operations, R&D/ New Product Development, Finance, Purchasing, and others. As a CEO, you must become interested!

We have worked on countless SIOP projects with clients across industries as diverse as building products, food and beverage, healthcare, and aerospace.  It has proven to be the most effective at achieving the win-win-win of enabling growth while maximizing service, cash flow (inventory) and profit. For example, at one aerospace client, we put the fundamentals in place to support SIOP (scheduling, planning systems MRP/MPS, forecasting) and then rolled out a SIOP process involving all key aspects of the organization. Although our objective was to bring service levels from the 60%’s to the high 90%s, we not only accomplished that metric but we also improved margins by 5% and increased morale and engagement. What’s not to like with these results!

Critical Aspects of SIOP
Let’s start with just those elements that are most important to achieving results:

  • Can you get executives involved? Of course, it is better to gain executive involvement upfront.  However, I have found that it is quite doable to gain the involvement over time as well. For example, in one client situation, a key executive was not on board at any level at the start.  So, as we rolled out a pilot process, we convinced him to give the process a try. Once he sat in on the executive SIOP meeting, he became more interested because strategic issues arise such as make vs. buy, changes in sourcing, impacts to sales strategies and more.
  • What do you have to do to get directionally-correct information for making decisions? By NO means do you need perfect information.  In fact, if you wait for perfect information, your decision will be long past. Yet directionally correct information is imperative so that you can make fact-based decisions and/or gain approval from corporate or your Board for what you know must be done to succeed. I cannot think of a client situation where I couldn’t gain access to at least directionally correct information after an assessment, no matter how ancient their ERP system.
  • Will you involve all relevant departments in the SIOP process? If you focus on data and not the people, you will not succeed. The 80/20 of success is to bring typically disparate groups together to align on 1 plan/ path forward. It is much easier to say than to accomplish, and so those clients that do this well have a far higher success rate than the rest. You should involve Planning, Purchasing, Operations, Logistics, Customer Service, Sales, Finance, New Product Development, and any key area of your operation.

SIOP is not a quick resolution.  However, you can make quick interim progress . Similar to safety, it must become part of your day-to-day culture. As business conditions change, roadblocks naturally arise through the process. We’ve found that they have a FAR higher chance of being averted or minimized when they arise as part of the process instead of related to one person or department who typically is seen as the “problem”. Strategic issues also arise naturally through the process so that they are proactively addressed instead of resulting in a reactionary panic.

You can start the SIOP journey with an assessment of readiness with recommendations for improvement. Several clients have started with this approach so that they knew which building blocks to put in place and whether the benefits would drive a substantial return on investment at this juncture. If you are interested in this type of assessment, contact us.

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Manufacturing & Supply Chain Expert, Lisa Anderson Considers ERP, CRM and Related Systems Key to Enabling Growth

May 7th, 2019

Originally published on ExpertClick on May 2, 2019

CLAREMONT, CALIFORNIA (May 2, 2019) –  Manufacturing and Supply Chain Expert Lisa Anderson, MBA, CSCP, CLTD, president of LMA Consulting Group Inc. considers internal and collaborative systems to be critical to short- and long-term growth for manufacturers and distributors. Systems must be able to support scalability and sustainability, enabling a resilient supply chain, superior customer experiences and peak financial performance.

“In today’s Amazonian environment, customers expect rapid delivery, over and beyond cradle to grave, collaborative service, 24/7 accessibility and last-minute changes. Executives are realizing their technology infrastructure must be able to meet and exceed these customer expectations while driving bottom line improvement” notes Ms. Anderson.

ERP, CRM, e-commerce, customer portals and related technologies are integral to success. “Many times, the systems are blamed for internal issues or challenges. Sometimes, it’s because they are out of date or a hodgepodge and don’t support the business.  Other times, the systems have the capabilities but are just not being used properly. We have seen clients ready to ‘throw out’ a perfectly suitable ERP system because they think the system is the problem rather than how it ties with the people and process” she continued.

Ensuring that the executive team is involved in ERP and system evaluations from a strategy viewpoint is critical.  “Since the system will impact market share, customer experiences and bottom line results, it is key treat ERP as a strategic priority,” she said.  Internal systems should reflect business objectives, cultural norms (entrepreneurial vs. approvals) and multi-department requirements and priorities. In today’s Amazonian environment, the only way to thrive is to leverage advanced functionality to automate, collaborate and utilize predictive analytics to make sound business decisions to set strategy,” Ms. Anderson concluded.

LMA Consulting Group works with clients on manufacturing strategy and end-to-end supply chain transformation that maximizes the customer experience and enables profitable, scalable, dramatic business growth, including ERP evaluation and selection. “ERP is a tough topic. Clients worry they are too small, or it will be too expensive. Meanwhile, the competition passes them. Using technology that supports a superior customer experience without breaking the bank is a “must”, regardless of size or industry” she concluded.

LMA Consulting Group just released the findings of manufacturing executive predictions for 2019:  “Manufacturing & Supply Chain in the New Normal” (available at no charge). 

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 has been named a Top 40 B2B Tech Influencer by arketi group, a 50 ERP Influencer by Washington-Frank,ranked in the 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, an inspiring collection of 101 strategies for creating bold customer promises and profits. A regular content contributor on topics including providing 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                                                 



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:

Systems Pragmatist

 The Sheer Relevance & Impact of Transportation (a Billion Here, a Billion There)The Resilient Supply Chain: Should We Invest in Technology?

 



Giving Thanks & Why It Matters

December 13th, 2018

Since it is Thanksgiving week, it seems only appropriate to talk about giving thanks.   A BIG THANKS to these people/ groups who have been instrumental in our success – and making it an enjoyable journey along the way:

 

  • Our clients – As much as our clients select us, we also select you.  As my consulting mentor says, it is not worth the efforts you have to go through to run a successful consulting practice if you don’t love what you do and work with people you respect and enjoy!  Thus, a BIG thanks to you!
  • Our associates – When I first started consulting, I dreaded the thought of how to bring someone into a client successfully, and after many years of “collecting good people”, I love it!
  • Our trusted advisors – Just as our clients need experts surrounding them, so do we.  I prefer to stay out of trouble! And we are only as good as the people surrounding us.
  • My APICS Board of Directors & key colleagues – We provide exceptional value to our local manufacturing and supply chain communities, and there is NO way I’d do it without you.
  • My ProVisors executive committee & ONT group – What an invaluable network of trusted advisors.  LMA is exponentially more successful with you!
  • My global consulting strategy group – Nice that I have your support (and kick in the butt) to stay the course, continue to grow and provide more and more value in my consulting practice.
  • And my other professional associations such as the Inland Empire Economic Partnership (IEEP), the Manufacturers Council of the Inland Empire (MCIE), Harvey Mudd executive roundtables, Renaissance Executive Forums group, the University of LaVerne advisory Board for the School of Business and Public Management and more.
  • Students – For keeping us fresh and engaged – from CSUSB, Cal Poly, UCR, Drucker, Harvey Mudd, Pomona College, Univ of LaVerne, Norco and more.
  • My SAC business partner, Linda Popky – We have created a value-packed organization for consulting growth.  I’ve learned a lot along the way that has added valued in many other areas of my practice as well.
  • My parents – Without them, I would never have started a consulting firm because I would not have known that anything was possible (as detailed in my backstory) and I would have listened to all those people who said a young woman couldn’t run manufacturing, have a seat at the table with private equity backers or start a consulting firm from the ground up.
  • Friends & former colleagues – Speaking of starting up a consulting firm while knowing close to no one since I traveled 60% of the time as VP of Operations & Supply Chain, I certainly appreciate these valued colleagues in helping to make it possible.

One tip to implement this week:
Who do you appreciate?  More importantly, do they know?  I’m often surprised by how what we think is obvious is NOT to the other party.  It can go a long way – why not think of at least one person to thank!

Have a Happy Thanksgiving!

 



Do You Live By Values Daily?

August 29th, 2018

We decided to participate in Executive Forums (an executive peer group) and Global Growth Cycle (a global consulting peer group) in order to stay up-to-date on what our clients need (sometimes even before they know they ‘need’ it).  After all, understanding what is successful as well as investing in our continual learning are important factors in long-term success.  

At a recent meetings of both groups, the importance of values arose.  Do you have values? And, more importantly, do you LIVE by values or are they just pasted on your wall (and ignored)?

Because we felt it was important for LMA Consulting to stand for something, we have codified our values.  As a part of our communication efforts, we are sharing them with our clients, colleagues, subcontractors, advisors and more.  Of course, we always welcome feedback and input.

To kick off, we have four core values that happen to start with ‘P’ (which we enjoy because of the alliteration):

 

PEOPLE

PASSION

 

 

 

 

 

 

PERSISTENCE

PERFORMANCE

 

 

 

 

 

 

LMA Values

  1. People – As we continually say (and believe), people are our #1 asset.  Our affiliations, LMA Associates, colleagues, clients and advisors fall into this category.  No matter how perfect the process or ideal the technology, it will not “work” without the people.
  2. Passion – It certainly makes life more interesting to enjoy what you do and have a passion for helping clients achieve bottom line results.  We find that success follows applied passion.
  3.  Persistence – No matter the topic in business (or life), persistence has been core to our success.  There is definitely truth to saying ‘persistence trumps talent’. Having both wouldn’t hurt but we’ll take persistence any day!
  4. Performance  – At the end of the day, keeping focused on delivering bottom line business results matters.  In our case, we deliver BOLD customer promises and profits!

Give your values some thought.  Start at square zero. Do you have them?  Do you agree with them? Do you ‘live’ them?  How about your team? Since this is a beneficial predecessor to setting strategy and ensuring results, it is worthwhile.  If you have questions or are thinking about how to get started, contact us .