Tag Archive: customization

What Should We Be Thinking for the 2nd Half of the Year?

August 15th, 2018

As hard as it is to believe, we are almost half-way through the year.  As a result, we should be thinking NOW about what to stop, start and continue for the second half of the year.  I learned this exercise from my HR mentor (a P&G-trained guru) as we performed it with our team with great results (thanks Debra!).

Stop, Start, Continue  

Here are the questions to ask yourself and your team:

  1.  Stop – What should we stop doing?  This is actually the hardest. Not only do I find it hard to stop doing things I’ve included in my daily and monthly routines, my clients seem to find this quite challenging as well.  Are you selling to a customer and losing money? Or, does this customer always create some sort of hardship for your team? Is your team putting together reports because they always have even though they are no longer necessary?  Do you open them and make decisions based on them? If not, stop. Are you hanging on to that so-so supplier because you’ve developed a nice friendship even though they are no longer delivering or are at high cost? Perhaps you should have a discussion with them about it.
  2.  Start – Let’s assumed you’ve stopped something.  Now you have time to start something new. I am bad at this sometimes as well – just add, add, add but not stop.  Are you falling into that trap as well? I am going through my activities currently and making sure to stop more (or at least equal) to the start activities.  Start those activities that you think will yield an improved return on investment. Undoubtedly, there are several of these opportunities if you look. We find that our clients have many more ROI opportunities than they realize when we perform an assessment – every time without fail.
  3.  Continue – Thank goodness, not everything we are doing should stop or start.  Continue those activities that add value and contribute a result. Do you measure success by activity (time) or by result?  I definitely advocate for the latter – you’ll double your success.

Put it in Context with Market Forces
Although it is always a good idea to take stock of what you should start, stop and continue, it will be helpful to put it in context with market forces.  Here are a few questions/priorities to consider.

  • Amazon Effect – No matter your business, you are being impacted by the Amazon Effect.  Elevated customer expectations, immediate deliveries, 24/7 accessibility, easy returns and more.
  • Customization – Who doesn’t want a product or service tailored just for them?  We all would. I am an executive platinum status on American Airlines and they always offer me a complimentary meal as a thank you for my status.  It’s a small thing but I do appreciate it.
  • Resurgence of Manufacturing – Somewhat in response to the Amazon Effect and the desire for customization, executives are discovering it makes sense to locate manufacturing and last minute customization close to the customer.  For example, even though California is not the state anyone would think for manufacturing, it makes imminent sense when you consider that it is the 5th largest economy in the world. If only we could get CA politicians to support us!  
  • Additive manufacturing – What could be closer to your customer than 3D printing on the fly?
  • Logistics rules -Again, when considering the impacts of the Amazon Effect and customization, it is quite clear that warehousing close to the customer is also desirable.  However, there are vast cost pressures.  So, you need to be thinking about how to take performance to a new level.  The same is true with transportation – if you even can source a carrier. The last mile is certainly gaining a lot of attention. “Last mile. Last minute” is my new favorite expression.
  • Global – We are in a global world.  Are you making global considerations as well as local ones?

What else do you think we should consider?  Drop me a line as I’m interested. No matter what – give the second half of the year some thought and you’ll increase your chances of success.

 



Supply Chain Management Is Evolving: How Will It Affect Your Enterprise?

June 12th, 2018

Operational efficiencies, productivity improvements, and cost savings are the top-three strategic advantages of cloud-based supply chain management, according to an IDG survey of senior managers and directors around the world. To gain these advantages, enterprises need to have infrastructure that helps them cost-effectively harness their large data workloads and move to the cloud easily.

In fact, the biggest challenge for most companies is figuring out how to have their on-premises infrastructure engineered in such a way that it mirrors the capabilities of the cloud. This way, when companies are ready, they can take their supply-chain data and make a seamless, fast migration to the cloud. Whether you’re a manufacturer, retailer, or large corporation, companies looking to gain real-time, complete visibility in their supply chain require integrated infrastructure with scalable data storage, processing, and computing power to get the job done.

To better uncover these benefits and how innovation and infrastructure are changing the supply chain, I spoke with Oracle and shared insights around helping businesses maximize value.

You’ve said that the customer experience continues to play a role in the transformation of supply chain management. How is it impacting both B2C and B2B industries?

We’ve all become accustomed to getting whatever we need, whenever we need it, with frequent status updates and easy returns. We’ve raised the bar. And it leads to a host of challenges for vendors, mainly in the sense that they need a wide breadth of products available to meet customer demand at any time.

Even though the vast majority of my clients are not in the retail or B2C world, they’re all impacted by this elevated experience. I was recently talking with a couple of distribution executives who said that, several years ago, there was a small percentage of deliveries that were due on the same day, if any. Now, roughly 80 percent of the orders they receive are expected on the same day. They’ve had to start working on Sundays because customers—including business customers—are expecting these extremely rapid deliveries.

There are several other ecommerce themes that are changing supply chain management. One is 24/7 accessibility: the ability to place orders and look up your order status whenever and wherever you are. Another is rapid customization. One of my clients has become number one in his industry by making sure his company provides not just rapid deliveries, but also quickly customized orders. His company does things like paint on the fly, which doesn’t normally happen in manufacturing.

What is the technology that is making this supply chain management transformation possible?

Blockchain impacts supply chain management by allowing for immediate visibility and transparency of global financial transactions—like electronic data interchange (EDI) on steroids. When products require traceability, such as if you have a recall, you can use blockchain to immediately see where your products are in the supply chain and who paid for what. That traceability can certainly be achieved within ERP software already, but if you require the next layer of complexity and immediate transparency, then blockchain technology could be useful.

Big data is another aspect of technology that is changing the supply chain landscape because companies can better tailor the customer experience when they know more about what the customer wants. IoT comes down to data, because you’re trying to attach the data together between different devices. In manufacturing, IoT shows up in preventive maintenance and anticipating when a machine might break down before it happens. When you see how different elements are working together, you can target what needs to be fixed or maintained, without just following a schedule that may or may not be addressing a real problem. This can reduce waste and improve efficiency.

But data is just as challenging as it is helpful. Before we get to work every day, we receive lots of messages between emails, texts, videos, billboards, and messages from our cars—everything is connected these days. The biggest challenge that my clients face is that they’re overwhelmed with data, but they also want and need the data to provide a better customer experience and understand what their customers really need. And they also want to figure out how to do that in a scalable and profitable way.

The challenge is how to sift through all the data that’s collected and put it all together into something meaningful and provide information at your fingertips. My clients are very interested in solutions like dashboards, and it’s a key ingredient in selecting the software; however, getting it implemented correctly is difficult.

 

It sounds like the right infrastructure that can manage multiple data sources and provide actionable insights can improve the entire supply chain process. What about the role of the ERP system in supply chain management? 

We’ve improved supply chain performance significantly by focusing a lot of effort on the demand plan. Instead of using the older perspective of a monthly forecast and whether it’s accurate as is, we’re looking at how we can do this in a more agile, flexible way. The ERP system needs predictive analytics to be able to modify a demand forecast on the fly.

Also, by using vendor-managed inventory systems, we’ve been able to reduce lead times. We’re able to meet short lead time orders that we couldn’t previously meet, with the same or slightly lower inventory levels, at a 5 percent margin improvement. It wasn’t solely due to demand planning, but that was the first step.

Once you get beyond demand planning, the next element is going to be a more agile production schedule geared to the customer—one that’s going to offer suggestions, give you notices, and be exception-based, so that you don’t have to put as much manual effort into it. The demand plan flows down into the production schedule, and then capacity analysis is the next key topic.

What steps can enterprises do to modernize their supply chain management?

We’re in the era of the customer, so start with the demand side of the equation. There are ways, regardless of what your tool set is, to improve upon your demand now and your prediction of future demand. You may not have a system in place to do this yet, but regardless, you should be doing more to look at the demand within your supply chain.

One other quick tip is to look at what information you are getting out of your system and how you can better utilize that information. I find that no matter what client I’m working with, we can always do a better job of accessing information and taking the most relevant information to make better decisions. Even if your system isn’t yet modernized to the point of predictive analytics, you want to move in that direction. You can do this by just getting information from multiple sources and creating a simplified database.

What will supply chain management look like in five years or 10 years from now, and what technology can help take enterprises there?

We’re going to continue seeing the ecommerce effect: the importance of speed, responsiveness, and agility, and the rise of smaller, more frequent orders. All of my clients are interested in managing their vast supply chain networks with lower costs, but better service. They’re trying to find technology to support these goals and figure out how to automate using AI and data.

One ideal future is with 3D printing, because you can print what you need, where you need it, when you need it, and further extend your supply chain. Even then, distribution is going to have costs associated with it, and the last mile will continue to be one of the biggest challenges. Delivering all these smaller, more frequent orders to both consumers and businesses impacts transportation negatively and your distribution network significantly. You need your inventory strategically located closer to a customer, or to have flexible manufacturing capabilities that can respond quickly to demand. The system comes into the picture when you want to set up your network to have what you need, where you need it. How to improve delivery metrics will continue to be a key consideration in the future.

If we can reduce the cost to manufacture and distribute inventory by leveraging supply chain management tools, we can reduce prices and actually do something as radical as bringing more manufacturing back to the U.S.

Take a Deeper Dive…

Supply chain management professionals are eager for new ways to leverage data to drive business value. It is important to understand, however, that successfully using big data requires the right infrastructure designed to manage multiple data sources and provide the computing power to deliver actionable insights across the entire supply chain process. The key to gaining business value from supply chain data is by using big data infrastructure that can acquire, store, process, and analyze huge amounts of data workloads for supply chain insights.

 



Manufacturing Strategy Expert, Lisa Anderson, Predicts Innovation as Catalyst for Inland Southern California “Place to Be” for Manufacturers and Distributors

April 26th, 2018

CLAREMONT, CALIFORNIA – April 25, 2018 –  Supply Chain and Manufacturing Expert,  Lisa Anderson, MBA, CSCP, CLTD, president of LMA Consulting Group Inc., sees innovation as key to the success of manufacturing.

“In order to be ahead of the curve and the competition, continuous improvement is no longer enough. Companies must innovate. Innovative products, processes, ideas, collaboration techniques, and technologies such as IOT, block chain and business intelligence allow manufacturers to maximize the customer experience and enable profitable, scalable, dramatic business growth.” explained Ms. Anderson.  In today’s Amazonian environment, we are in the era of the customer.  Innovation, rapid customization and manufacturing agility have led to a resurgence.

“Since the Inland Empire of Southern California is located in an epicenter of the population (larger than 25 states and part of California which would be the 6th largest country), it is an ideal location to provide a superior customer experience, highly customized product and service with rapid delivery. When added with its many advantages – access to high-skilled talent, technological and automation prowess, lower-cost space and labor costs vs. surrounding areas and top-notch manufacturing and supply chain programs and education such as Harvey Mudd, there is no better place to be” she said.

Ms. Anderson recently chaired the Innovation Awards at the 7th Annual Manufacturers’ Summit hosted by the Manufacturers’ Council of the Inland Empire. Awards were given for innovation in process, product, human capital and marketing, and included a special award to students.

“There is tremendous opportunity for manufacturers to thrive.  After all, we have set the standards for innovation since manufacturing became a powerhouse in the 1920’s. There’s every reason to believe that we can continue raising the bar and make Inland Southern California “the” destination of choice for manufacturers around the world” she concluded.

In support of manufacturing and the related industries, Ms. Anderson is President of the APICS Inland Empire Chapter and is taking on a greater role in Inland Southern California by becoming a board member for the Inland Empire Economic Partnership. She is moderating a panel at the Southern California E-Commerce and Logistics Summit on April 26th.

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 that maximizes the customer experience and enables 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, named a top woman influencer by Solutions Review and subject matter expert by HowDo. 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 supply chain, ERP and SIOP, Ms. Anderson is regularly interviewed and quoted by publications such as Industry Week, tED magazine and the Wall Street Journal.  For more information, to sign up for her Profit Through PeopleTM Newsletter or for a copy of her book, visit LMA-ConsultingGroup.com.



McKinsey Report Predicts 20% Growth in Manufacturing by 2025

November 20th, 2017

Supply Chain Briefing

McKinsey Report Predicts 20% Growth in Manufacturing by 2025
According to Industry Week, a McKinsey report predicted manufacturing GDP would grow to $3 trillion by 2025  – a 20% increase!  Large U.S. firms have outperformed their global counterparts, according to the new survey, “Making it in America: Revitalizing U.S. Manufacturing” by The McKinsey Global Institute.  What we knew all along!  

Of course, it has been tougher for the smaller firms supporting these larger firms which has negatively impacted the middle class.  However, there is hope.  Demand is rising at home and abroad with VAST opportunity to export.  Value chains are evolving to a U.S. advantage especially those in advanced industries.  Rapid customization and consumer preference can drive additional firms to manufacture in the U.S.  Are you ready?

 

Who, What, When and Where Will Impact Manufacturing?
Are you ready for the coming wave of manufacturing?  Do not wait until you miss your opportunity as customers expect QUICK deliveries, RAPID customization and a proactive, excellent customer experience.  Have you thought about which technologies to leverage to get ahead of the curve so that you can take advantage of the opportunities as they arise?  What can you automate?  

And although technology is paramount to success in this new world, the core tenets remain intact.  Do you know your customers?  Why will they purchase from you vs. your competition?  How can you stand out from the crowd?   Can you create an experience for them?   Although important to ponder, don’t bother unless you have also thought about your human capital.  Where should you shore up your talent to get ahead of the curve?  Plan for success; don’t wait for it to pass you by.