Tag Archive: consumers

Quoted in Direct Relief About When Supply Chain and Human Behavior Converge

April 23rd, 2020

I talked with the Direct Relief about the global supply chain during the pandemic. We discussed the issues of hoarding, the impacts on the global supply chain and what could be done to realign the supply chain so that consumers had what they needed where they needed it when they needed it. Of course, the question also goes back to the word ‘need’ and how to proactively manage panic buying as well as quickly ramp up the supply chain to respond. I am excited to be quoted in their article “Global Supply Chains and Human Behavior Converge During COVID-19 Pandemic”. Read the article here.

For additional coronavirus information, resources and strategies, please visit the coronavirus resources section of our website.

 



Are You Drinking From a Fire Hose in Managing Supply Chain Disruption?

April 10th, 2020

Every client is experiencing unprecedented disruption! Unfortunately, one had to shutdown since their product is considered non-essential. Most others continue to operate to varying levels. Most manufacturers and distributors are considered critical because they supply defense, the construction/ building industry, the food and beverage industry or the healthcare/ medical products industry.

Every client is experiencing unprecedented disruption! Unfortunately, one had to shutdown since their product is considered non-essential. Most others continue to operate to varying levels. Most manufacturers and distributors are considered critical because they supply defense, the construction/ building industry, the food and beverage industry or the healthcare/ medical products industry.

However, it is NEVER that simple. It matters the type of business/ consumer your customers’ customers serve. For example, in one of my food clients, since many Starbucks stores are closed, the products they sell into this channel are down whereas, the products they sell into grocery stores are up. And this is just the customer side of the equation. Do you know who your suppliers’ suppliers’ suppliers are? They are likely impacting your level of disruption.

Are you drinking from a fire hose, looking for ideas? Tune into our Navigating Through Volatility webinar series to get up-to-date with the latest status, gain ideas to successfully navigate the disruption and strategies to emerge successfully and well-positioned for success.

What Should We Consider and/or What Impacts Could Arise? 

Look no further than our webinars to learn more about the challenges, concerns, ideas and opportunities for navigating through volatility successfully.

Please share your stories, challenges, ideas and successes. Contact us and please join in our free webinar series and listen to our archives.

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Which State Has the Most Manufacturing? The Answer Might Surprise You…

September 25th, 2019

According to an Industry Week article on the US 500: Top Manufacturing States, which state is #1 in terms of having the most manufacturing headquarters? California! Certainly, CA is not a manufacturing-friendly state in most places (although there is an initiative to create an advanced manufacturing consortium of excellence in the Inland Empire which is gaining support across the board). Manufacturers account for 10.93% of total output in the state and employ 7.2% of the workforce. Neither of these figures is #1 but the total output of $300 billion with an average of 1.3 million manufacturing employees does! #2 is Texas, followed by Illinois, Ohio and New York.

One of the reasons manufacturing is bucking the trends so far is that there are a vast number of consumers and companies in California, and in today’s Amazonian environment, rapid, customized deliveries are the norm. Thus, proximity matters. California is larger than all but 6 countries! The powerhouse of manufacturing is Southern CA. Additionally, California and specifically the Inland Empire is #1 in logistics in the U.S. According to research by a University of Redlands professor, logistics is at the center of what’s called an onion structure. It is the lifeline of the economy. Manufacturing co-locates or locates next to the logistics lifeline. Supporting services form the next layer of the onion, followed by all others such as retail, construction, leisure and hospitality.

What Should We Consider and/or What Impacts Could Arise?
For one, all this talk about “manufacturing being dead and gone to Asia” is obviously an exaggeration. In fact, we are starting to see executives look at reshoring as rapid delivery is of paramount importance. After all, everyone is scrambling to provide one-day delivery to keep up with Amazon, and B2B customers are expecting B2C service as well!

Further, we are seeing a SHARP increase in concern over high inventory levels to support these service levels. Some clients are concerned about the cost impact of tariffs and inventory levels and others are just becoming more focused on managing cash so they can better utilize existing resources to launch new products and services, invest in the business and more.

Since manufacturing is directly correlated to logistics, trusted advisors and other industries, it is worth paying attention. Start thinking about potential impacts such as the following:

  • Will your supply base change or move with the changing times?
  • Will capacity be available? Suppliers, transportation partners, manufacturing operations, equipment, skilled resources etc.
  • Are you agile so that you can meet changing conditions rapidly and without a significant hit to your customer experience or bottom line?
  • Do you have a skills gap? Please take our brief survey.

If there ever was a topic related to the resilient supply chain, this would be it! We have recently upgraded and added content to our resilient supply chain series.



Manufacturing & California are on Fire!

August 1st, 2018

According to Industry Week and the National Association of Manufacturers, manufacturing is on fire!  

Manufacturers’ optimism registered 95.1% – the highest level EVER recorded! Manufacturers are projecting historic growth in investments (4.1%), hiring (3.1%) and wages (2.7%).  Projected wage growth is the fastest in 17 years.

The bottom line – manufacturing is on fire!

 

 

 

 

 

Now to turn general perceptions on its head, Industry Week did a study of the top states for manufacturing jobs and California was #1! Clearly, this was accomplished in a state that doesn’t favor manufacturing jobs (even though they pay well).  Manufacturing accounts for 11% of the total output of the state, and the state is larger than all but 5 countries (if it were a country). Why aren’t we singing this from the rooftops?!? Are you thinking of ways to leverage this advantage?

What Should We Consider and/or What Impacts Could Arise?
It is our passion that not only is Southern CA #1 in terms of manufacturing but it is “THE place to be”!  You are probably wondering if I had too many Mai Tai’s in Hawaii. Yet, there is a compelling story behind this passion:

  • Customers and consumers –  Southern California is the epicenter of manufacturing and can supply consumers and customers of what would be the 5th largest country in the world same-day
  • Mass customization – The ability to meet changing customer expectations rapidly and customized on the fly
  • More than 40% of imports come in through the Los Angeles ports – Many of these are raw materials and components to supply manufacturers
  • Access to a significant talent pool in Southern California
  • Access to high tech, automation, robotics and more
  • Access to logistics networks
  • Additive manufacturing changes the game
  • Innovation is prevalent – just to overcome the environmental standards, we have to be better!  Imagine if we can get some help with our laws….
  • With wages increasing in Asia, freight costs going up and customers demanding immediate deliveries and frequent changes, manufacturers are seriously considering bringing non-commodity manufacturing back to the U.S.  Why not Southern CA?

Think about how to leverage this massive opportunity and blaze a trail.  If you’d like to strategize with us about how to achieve scalable, profitable growth and maximize your manufacturing power, contact us.

 



Why Customers Rule

September 28th, 2016

supply chain

Last weekend, I attended APICS 2016 in Washington DC, and one of the keynote speakers was Bill McDermott, SAP’s CEO (pictured below with Abe, APICS’s CEO). He gave a motivating talk about a variety of topics. One of the key themes is that customers (consumers) rule! And, if you think about it, one set of customers includes your employees. Thus, you need to know what both think and want!

One of his stories from his younger career is when he was sent to lead the worst performing division of Xerox. Listening to his employees and customers turned it from last to first in one year. Talk about powerful!

Bill McDermot SAP CEO

In essence, all businesses should be concerned about what their customers – both up and down the supply chain (including consumers) — want. The better understanding you have of demand, the more successful you’ll be in exceeding expectations — with the opportunity to do so at the lowest cost, driving win-win profit.

One tip to implement this week:

So, this week, start asking your customers and employees what is important to them. You might not even have to open your mouth — start listening to what is said AND what isn’t said. I guarantee you will learn something new that could prove invaluable. Look for win-win opportunities. How can you make sure they become raving fans without spending a dime?

Once you talk with a group of customers, look for trends. What do you see and hear? And, how about your employees (and peers)? I’ve yet to meet a client with happy customers and unhappy employees. What does that tell you?

Looking for more ideas to keep your supply chain connected? Access more tips and resources on my blog. And keep connected by subscribing to my newsletter and email feed of “I’ve Been Thinking…”