Tag Archive: demand

The Future of Manufacturing & Supply Chain

June 17th, 2020

It is a very exciting time for those of us passionate about manufacturing and supply chain. Undoubtedly, we have never worked harder proactively managing the unprecedented demand and supply volatility, and so appreciate your supply chain resources. I am hearing that they are taking off for better opportunities, and you won’t want to lose your best talent during what will be a lengthy and supply chain intensive COVID-19 recovery!

As manufacturing increasingly returns to the U.S., as consumers and businesses expect a superior, customized, rapid delivery of products and services, as technological advances become commonplace, as the general public sees the value of essential businesses and the diversity of manufacturing and supply chain, it will be a great ride! Are you shaping your future or waiting for it to happen to you? Join me in a webinar to hear more.

One Tip to Implement This Week:

Simply start thinking about the future of manufacturing and supply chain in your industry, your region, and as they relate to technological advances and innovation. Bring your team together to get them thinking about the future, new ideas, and how to proactively position your company for success. A LOT can be accomplished simply by refocusing attention to thinking proactively, creatively and with a focus on the future. Will there be opportunities to pick up new business, design new products and open new markets as firms want to bring manufacturing capability back to the U.S. and closer to customers? What do your customers need that they haven’t thought about yet that would help them be more successful?

 

 Listen to a panel discussion with manufacturing executives related to the electronics industry on the Future in Manufacturing panel to stimulate ideas and flip through my eBook, Future-Proofing Manufacturing & Supply Chain Post COVID-19 to gain new insights to get the ball rolling. We have also launched a rapid Future-Proofing Manufacturing & Supply Chain assessment if you’d like assistance in thinking through your particular situation. Contact us if you are interested. Stay safe and healthy.



Demand & Supply Are Out of Whack!

April 27th, 2020

Demand and supply are out of whack to say the least. Manufacturers that supply toilet paper, food, healthcare products and other essential goods are seeing a surge in demand whereas those that don’t are seeing demand plummet. China was under lock down previously (causing a delay in the pipeline), and they are now operating around 80-90%; however, now we are under lock down. Retail sales are non-existent, and so the warehouses are full of the wrong products. Thus, inventory and transportation assets are typically in the wrong place at the wrong time in the wrong quantity. Watch my webinar on just this topic to learn more…

What Should We Consider and/or What Impacts Could Arise? It will not be business as usual as you ramp back up. Be vigilant in staying on top of what is happening and how quickly you can turn the dial to ramp back up. If you go too fast, you could get your supply chain further out of whack and anger customers. On the other hand, if you ramp up too slowly, not only will you lose money but you will also see your competition speed by. Instead, be proactive prior to the end of the shutdown to start things in motion, pay close attention to what’s happening and adjust accordingly. Stay tuned for my eBook,  Future-Proofing Manufacturing & Supply Chain Post COVID-19 

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

 



Quoted in the Signal on Restocking Shelves Amid the Novel Coronavirus

March 29th, 2020

I talked with the Santa Clarita Valley Signal on the problems keeping shelves stocked amid the coronavirus lockdown. We talked about the end-to-end supply chain and what impacts the supply chain would have on how quickly the shelves would be restocked. See below for the reprinted article from the Signal.

In an effort to replenish empty shelves amid the coronavirus outbreak, Santa Clarita Valley stores have implemented changes they believe will help keep the products in the hands of customers, but it will take cooperation from the shoppers.

Consumers have scrambled at both the staple and mom-and-pop grocers in search of toilet paper, bottled water, cleaning products, medicine, and perishable and dry goods, as fear of COVID-19 continues to affect everyday life.

Rest assured, however, that stores, from Costco Canyon Country to Ralphs in Valencia, are restocking every day and that there is no supply shortage, many said Tuesday.

At Trader Joe’s on Bouquet Canyon Road, for example, refilling shelves is a daily occurrence, but “we don’t have a say of is what’s coming in,” said a store employee who did not wish to provide a name. “For instance, we might have a little less on eggs on a day than the day before by a couple of cases, but every day, we do get a shipment, seven days a week.”

Similarly, local destinations such as Stater Bros., Vons, Target, Costco and smaller shops, such as Friendly Market on Sierra Highway, said they refilled every day, but what was restocked varied based on what is currently available from suppliers.

Who and how distant their suppliers are can affect how swiftly stores restock, said Lisa Anderson, a Claremont-based manufacturing and supply-chain expert and president of LMA Consulting Group Inc.

“It really very much depends on your particular supply chain,” she said Tuesday. “Certainly, overall, there’s going to be some impact. However, right now it’s more of a bullwhip effect,” meaning consumer demands can cause companies in a supply chain to order more goods to meet the new demand.

Several retailers depend on China, where COVID-19 originated, for supplies, but major, direct disruption might be too soon to tell, said Holly Schroeder, president and CEO of the SCV Economic Development Corp.

“I think people are really dealing with the immediate matter at hand,” she said. “Some companies, since the China trade war, have begun moving or diversifying their supply chain but as the virus affects different countries, you don’t quite know how everything will play out, which creates a lot of uncertainty.”

In the face of uncertainty, retailers are working to control what they can, such as reducing store hours to allow for more restocking time and placing a limit on the number of items customers can purchase in one trip, in an effort to deter shoppers from hoarding.

While they restock, however, customers are asked to do their part, at least one company said Tuesday.

“Now the company is asking for help from its local communities,” Stater Bros. said in a statement. “Please refrain from purchasing items you won’t need for the coming week. Be assured we are working closely with our manufacturers and suppliers to replenish our store shelves daily.”

These efforts can help across the nation, but in the SCV with a huge community-feel presence, now’s the time to “pull together and share some resources that might go a long way,” said Anderson.

“It doesn’t mean that we should be going around standing next to everybody, but find a creative way to help someone out.”

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



Future-proofing Your Supply Chain

February 21st, 2020

Disruptions abound in supply chain circles. Just consider any of the following recent events: the tariff war, global unrest, the Coronavirus, natural disasters such as the volcano in the Philippines, the Hong Kong protests and more.

We have never had a client that could claim that 100% of the extended supply chain (from suppliers’ suppliers to customers’ customers) was inside the U.S. So, we have to be prepared to navigate these types of disruptions and the related impacts.

Disruptions certainly go beyond your physical supply chain. What about your human capital, technologies (accompanied with processes) and strategies? Refer to our article on future-proofing your skills gap and assess which risks might be on the horizon in your industry.

When it comes to technologies, there is no doubt that emerging technologies are gaining steam and are starting to transform supply chains. Just consider the application of collaborative robots, automation, RPA (robotic process automation), artificial intelligence, IoT, blockchain, and predictive analytics to name a few. Big name companies are dropping big dollars into these technologies. When thinking about strategy, remember strategy is no longer a multi-year exercise. We must be thinking in terms of strategic sprints. Who knows what will happen beyond a year out!

Several high-level categories should be assessed as you think about your supply chain:

  1. Sourcing – Are you sourcing from China? Is this a viable path forward to source 100% from China? There are increased risk factors to consider. Listen to an interview I conducted with John Tulac, international business attorney, on future-proofing and doing business with China. It is time to reevaluate your supply chain footprint.
  2. Logistics – There are significant disruptors transforming this industry, ranging from e-commerce and the the Omni-channel to robotics, additive manufacturing and the digitization of the supply chain. If you aren’t incorporating these impacts in future-proofing your supply chain, you will be left in the dust. These are concepts of focus for the consortium for logistics success in the Inland Empire to enable companies to stay informed and keep up with the fast pace of change.
  3. Manufacturing – Industry 4.0 is transforming manufacturing and changing the landscape. It will be a pivotal year that separates the winners vs the losers as advances are made. See what the National Association of Manufacturers’ Leadership Council sees as critical issues
  4. Demand & Supply – There is no doubt, there is a keen interest by business owners, executives and private equity leaders on creating predictable demand and forecasting sales. The more we understand our demand plan, the better our operational performance, supplier performance and customer performance. Read about SIOP (sales, inventory, operations planning) and how it can help future-proof this area.
  5. Inventory – As the disruptions abound and executives fear a slow-down, the proactive management of inventory and advanced collaborative programs are gaining in relevance. Pick up some tips and strategies in our recent article ” Inventory Management as Fashionable as Automated Intelligence for Distributors” for ACHR News.
  6. Metrics & Predictive analytics – Keeping a pulse on performance should remain a top priority while forecasting what will be needed.

Getting ahead of the curve might be the only avenue to success. Consider creating a resilient supply chain and future-proofing your supply chain. Stay tuned and read more about it, and If you are interested in discussing a supply chain assessment, please contact us.

Did you like this article?  Continue reading on this topic:

Made in Vietnam

Forget About Reducing Inventory; Perhaps You Have the Wrong Supply Chain Strategy



Do You Know Your Demand?

October 23rd, 2019

This has been emerging as a hot topic. As clients are interested in meeting ever increasing and changing customer expectations while managing long supply chains, changing rules and regulations (including tariffs), and concerns over the cash flow implications of high inventory levels have resulted in discussion around the critical importance of demand. Do you have a handle on your demand plan over the next 12 months?

According to Gartner, every 1% improvement in forecast accuracy will result in 7% less finished goods inventory and 9% reduction in inventory obsolescence. A 1% improvement is imminently doable! Also, according to the experts, a 15% improvement in forecast accuracy will drive a 3%+ increase in pre-tax performance. Last but not least, in our experience, it is one of the best ways to drive a simultaneous improvement in customer service, cash flow and profit.

Every client we talk with says the same thing: Our sales are unpredictable. We have a custom business. We follow lean principles and produce in concert with customer demand. Or, our sales team is on top of it and are already doing everything they can to give us a heads up on demand. We don’t doubt that. However, we have also never come across a situation that couldn’t be improved. With the dramatic results that follow, it proves well-worth the effort.

Instead of brushing off the idea of focusing attention on demand, just think about what could be improved. It isn’t an exercise to beat up sales or planning. In the end, if that is what happens, there is no doubt that is part of the issue. The forecast must be collaborative with input from sales, marketing, customers, planning and anyone who interacts with customers or has input relevant to future demand. With that said, the best forecasts start with a simple statistical base. What do you do?

I’d be remiss if I didn’t point out that you should use your forecasts in your S&OP/SIOP process (sales, inventory, and operations planning) to align your demand with your supply so you can maximize your customer value and your bottom line. If you’d like to discuss your situation further, please contact us.

 

What bottlenecks exist in your organization?