Tag Archive: collaboration

Lisa Anderson, Manufacturing & Supply Chain Expert, Sees Innovation & Collaboration Key to Advanced Manufacturing Success

June 7th, 2019

Manufacturing and Supply Chain Expert Lisa Anderson, MBA, CSCP, CLTD, president of LMA Consulting Group Inc. identifies innovation as a key driver in advanced manufacturing throughout 2019 and beyond. Driven by technology, AI and robotics, manufacturers are becoming more sophisticated in their response to changing customer needs.

“Customer expectations have changed as a result of what I call, The Amazon Effect. They want customized products with shorter lead times at ‘reasonable’ costs. This is a huge opportunity for manufacturers who make a commitment to reevaluate their processes, systems and the way they think about their product and customer” notes Ms. Anderson.

Successful manufacturers are turning their processes upside down from the inside out and strategizing new ways to proactively anticipate customer needs. “Manufacturers who choose to collaborate with their suppliers, as well as their customers, are making great strides.  From advanced customization and rapid response to distributive inventory, transportation and logistics, innovation and collaboration are becoming the cultural norm. In addition, there is a trend toward near-sourcing, vertical integration and agile strategies that proactively address these elevated expectations” she stated.

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. With the rise of e-commerce, increasing transportation costs and global risks, sourcing experts are re-evaluating their global supply chains. Logistics is gaining in relevancy as transportation costs increase, sustainability efforts expand and managing inventory becomes a hot topic, and, accelerating cash flow becomes more relevant.

The outlooks and attitudes are positive as manufacturers rise to the challenges of ever-changing customer needs and increased expectations, tight labor and transportation markets and rapid growth. LMA Consulting Group recently released findings of executive predictions for 2019:  “Manufacturing & Supply Chain in the New Normal” (available at no charge).  “Technology goes hand-in-hand with innovation and collaboration resulting in customer success stories and bottom-line results” 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 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. She recently was recognized as a Woman in Manufacturing by Inland Empire Magazine. For information, to sign up for her Profit Through PeopleTM Newsletter or for a copy of her book, visit LMA-ConsultingGroup.com.

                                                                      
Media Contact                                                            
Kathleen McEntee | Kathleen McEntee & Associates, Ltd. | p. (760) 262 – 4080 | KMcEntee@KMcEnteeAssoc.com



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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Are You Achieving Profitable, Scalable Growth?

 

 



What’s Ahead in Technology?

January 30th, 2019

To think about what’s ahead in technology, it is important to put it in perspective with what’s ahead in business.  Read our article, “What’s Ahead in Business?” for details on the key trends impacting business:

  1. Importance of the customer experience
  2. Taking the holistic view has become a “must”
  3. Volatility is the new norm
  4. The coming power of manufacturing and supply chain

What’s ahead in technology lines up with these same themes. In order to achieve scalable, profitable growth, technology is an important enabler. The most relevant technology trends include:

  1. ERP Upgrades – More and more companies are realizing that their system infrastructure must keep up with business requirements and customer expectations. As tough as an ERP upgrade can be, it is one of the only ways to make the leap from manual, labor-intensive processes to providing a superior customer experience efficiently.
  2. E-commerce/ Customer Portals – Amazon. Alibaba. Customer collaboration. Need we say more?
  3. Business Intelligence & Data Analytics – We are overwhelmed by mountains of data. We are so anxious to gather data yet we don’t seem to have the appropriate information at our fingertips when we need it. That’s where data analytics comes into the picture. Beyond that, predictive analytics is gaining steam.
  4. Artificial Intelligence – Even my Mom counts on Alexa! In addition, who wouldn’t want a car that self corrects? Predicting customer patterns and behaviors is becoming more important. AI is set to transform many industries over the next several years.
  5. IoT– Smart factories. Smart homes. Connected devices and machines. According to NEWGENAPPS, 60% of global manufacturers will use analytics data tracked using connected devices to analyze and and optimize processes.
  6. Robotics & Automation – Robots may not be taking over the universe tomorrow morning, but they are working hand-in-hand with people to achieve many benefits – improve safety, increase speed and consistency, improve customer satisfaction, fill capacity shortfalls and and increase productivity.
  7. Autonomous Vehicles – Beyond self-driving cars and trucks, autonomous vehicles are used widely in manufacturing and distribution environments.

Are you thinking about which of these technologies will support your business objectives?  Or which are likely to impact your industry?  Consider technology as a key part of your strategy and plans. If you’d like an expert to evaluate which, if any, of these technologies will be relevant to your business, contact us.

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The Resilient Supply Chain: Should We Invest in Technology? 

AI, Robots, IoT, Blockchain, Hike!



The Resilient Supply Chain: Cross-Organizational Collaboration

January 4th, 2019

I’ve been coordinating a process involving several disparate players, ranging from multiple educational institutions who are not aligned with one another, government players (with many differing goals) and business partners (with a completely different set of needs).  Although there are others, these 3 core groups are more than enough!

Success will only come to those who find common ground with collaboration.  If collaboration was as easy as simple communication, everyone would do it. We would probably have a lot more happy customers and more profits to share with investors, employees and for reinvestment and giving back.

What should we think about if this is the outcome we wish to create?

  1.  Look for the win-win-win –  If someone wins and someone else loses, it isn’t a successful collaboration.  If you think hard enough, there is usually a way to turn a situation into more of a win-win-win with some shared give-and-take.
  2.  Think about positioning –  If your idea is presented in isolation, it has a much greater chance at failing than if it is presented in light of the bigger picture. Why is it important?  How can each person play a role? Does each person know how he/she fits in and provides value?
  3.  Value diversity – Each time I think “I don’t want to be on this person’s team because he/she is annoying or won’t add value”, I find that I am completely wrong (luckily these are just thoughts, not actions).  The best ideas come from the most unlikely places.  And, interesting suggestions that can lead to “big” ideas typically come from someone who is quite opposite and thinking about the situation from a different perspective.
  4.  Recognize progress of the team –  Who doesn’t want to be recognized with a pat on the back as progress is made?  The key to collaboration is not to say positive things about collaboration and then reward individual performance.  Instead, reward team progress, even if that progress is simply gaining an understanding of how much they do not agree with each other yet are willing to listen.  
  5.  Consensus isn’t needed – As much as collaboration can achieve dramatically better results than each superhero individual thinking on his/her own, consensus is overrated.  Set the expectations upfront of how collaboration works. Feedback and input is expected. Discussion and debate participation is mandatory. But consensus isn’t required for every decision.  Otherwise, you might get there eventually but your competition will be LONG gone. More importantly, determine how to collaborate and make decisions upfront.decisions

The importance of collaboration comes up more frequently than almost any other topic.  Since executives are collaborating with customers, suppliers, trusted advisors, other supply chain partners and even competitors, there is just no room for poor collaborators.  

If you’ll notice, many disruptors collaborate with strange partners. Perhaps this core skill is a key ingredient to success…. Or, think of it another way, how will anything get done without it?

 



The New NAFTA & What It Means

December 27th, 2018

 

 

 

 

 

 

Recently, the USMCA (new NAFTA) agreement was signed by the U.S., Canada and Mexico.  It still needs to be ratified by lawmakers but several immediate protections went into effect.  Since I am surrounded by manufacturing and supply chain organizations and professionals in terms of clients, colleagues, trade associations and more, I can say that there is largely positive commentary about this partnership in N.A. and the improvements to the old agreement.  Of course, there was a lot of negative commentary and debate about the particulars and the impact on trade (you’d have to live under a rock not to hear them!), but it is a noteworthy step forward from our current position!

What does this mean for your business?  Are you “ready” to leverage the opportunities and minimize any risks?

What Should We Consider and/or What Impacts Could Arise?
Although most clients and colleagues expected something to work out in terms of NAFTA, many were still in a bit of a waiting pattern.  No matter the final details, it shows that collaboration will take place. I think it is noteworthy that collaboration is an integral part of the business success equation. Many years ago, collaboration was seen as a fluffy topic but it has become key to success. Perhaps we should all think further about how well we communicate and whether we can collaborate with those who don’t see eye-to-eye with us.

From a technical point-of-view, there are bound to be many implications on our businesses,  whether we source materials or products from Mexico or Canada or not. And if you are in another country, there will be an entirely different set of impacts. Think about your extended supply chain, from your suppliers’ suppliers to your customers’ customers and everyone in-between.  Are there opportunities? Risks? Be proactive, and I bet you’ll find at least one opportunity. This is another example of the need for a resilient supply chain.

Check out our new video and article series as well as our soon-to-be offered Rapid Resilient Supply Chain Assessment service: