Tag Archive: growth

B2B, B2C & Associated Technology

September 25th, 2020

B2B
According to 99 Firms, B2B e-commerce will hit $1.8 trillion by 2023. They have also stated that over 80% of B2B buyers visit a website before making a purchasing decision. Wow! It puts a new perspective on B2B portals and the associated customer experience and their criticality to growth plans. One final compelling statistic is that mobile is expected to be used for 70% of the queries in 2020. By all means, you should consider your B2B customer experience and the technology and marketing initiatives to support your growth plans.

B2C
According to eMarketer, B2C e-commerce will surge by 18% in 2020 whereas brick and mortar will decline 14%. The net gain is that e-commerce will increase to almost 15% of total retail sales (20% if excluding gas and auto sales). Of course, household essentials lead the way with the impacts of coronavirus. Orerlo projects e-commerce at 16.1% in 2020. No matter which statistic becomes a reality, the bottom line is e-commerce is surging! According to 99 Firms, global retail e-commerce will hit $4.13 trillion in 2020 with over 2 billion digital buyers. Not pocket change! An eye-opening statistic is that by 2040, 95% of all purchases is expected to be via e-commerce. Undoubtedly, you should jump on setting your e-commerce strategy.

Technology
There are many e-commerce system options available. Executives are realizing the importance of their B2B and B2C e-commerce strategy. Our most proactive clients have been pursuing e-commerce technology for quite some time. In some situations, it helps to start with a strong foundational base, your ERP system.  In other situations, clients cannot wait for ERP and decide to hook into ERP down-the-line. Of course, all the ERP software suppliers have jumped on the B2B/B2C bandwagon (at least in terms of preferred software partners) which adds a layer of complexity to ERP selection. With these powerful statistics, it isn’t an area you can afford to miss. There are several mainstay names such as Magento and Shopify, as well as some simpler options and intriguing newer names to the scene. Of course, similar to ERP selection, what is best “depends” on several key factors.

According to 99 Firms, credit cards are the most preferred form of payment for online with shoppers around the globe. Thus, credit card software and payment processors are also of relevance in ERP selection projects. The second most preferred form of payment is electronic payment, led by PayPal. Do you know what makes the most sense for your situation?

At a minimum, start thinking through your B2B and B2C roadmap. Start with your growth plans, understand your customer preferences and build a roadmap to support a successful path forward. If you are interested in a B2B/ B2C assessment and/or B2B/ B2C software selection, contact us.

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Manufacturing Expert, Lisa Anderson, Recommends Stabilizing Supply Chains to Capture Opportunity

July 31st, 2020

CLAREMONT, CALIFORNIA – July 31, 2020 –  Manufacturing and Supply Chain Expert,  Lisa Anderson, MBA, CSCP, CLTD, president of LMA Consulting Group Inc., recommends that manufacturers and distributors increase the focus on stabilizing supply chains. 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.

“During the last six months, manufacturers and distributors have experienced unprecedented volatility of both demand and supply. Risks that were not fully considered have resulted in supply chain disruptions, extra costs and/or customer service challenges,” stated Ms. Anderson. She insists that customer needs be the driver to proactively managing demand and supply. “Start with your customers and your customers’ customers. Talking with them is key to realigning manufacturing operations and the extended supply chain.  No matter the circumstances, these conversations can lead to opportunities for growth, improved profitability and increased inventory turns and associated cash flow. Simultaneously, increase the cadence and visibility of your Sales, Inventory and Operations Planning (SIOP) process to realign demand with supply and stabilize your supply chain,” she continued.

The COVID-19 pandemic forced most companies to reassess their business model and customer base.  Many found new and different ways to improve upon existing products and services.  Others found ways to leverage existing resources to expand.  “It is about constantly building for the future.  What do you want your business to look like in six months, one year and beyond? Who are your ideal customers? Creating opportunities for these future customers and products will lead to reassessing market plans and product supply strategies.  Revisiting sourcing options, evaluating regional versus global manufacturing platforms, and exploring innovative ideas and the expanded use of technology and automation should all be on the table and analyzed.  Opportunities exist if you look for them. But first, the supply chain must be stabilized and resilient. We can learn a lot from diving deep into critical elements of demand and supply both for the present and more importantly, the future,” she concluded.

LMA Consulting recently sponsored Navigating Through Volatility, a webinar series for APICS (Supply Chain Professional Community) and hosted a recent session: The Future of Manufacturing. Ms. Anderson has also released, Future-Proofing Manufacturing & the Supply Chain Post COVID-19, an eBook that provides practical go-forward insights, advice and experiential value for manufacturers and their supply chains.

 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 is a recognized Supply Chain thought leader by SelectHub, named a Top 40 B2B Tech Influencer by arketi group, 50 ERP Influencer by Washington-Frank, a 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, 101 strategies for creating bold customer promises and profits. A regular content contributor on topics including 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.                                                                                                                                              ###

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



What’s Going On Around the World?

July 11th, 2020

After receiving questions from multiple people about “What’s going on in Asia?”, we dug into what’s going on around the world (at a high level). In today’s globally-connected world, it isn’t a question you can ignore!

Starting with Asia, from a supply chain point-of-view, product continues to move. All three China ports are open and the volume has picked up. China’s capability was back up to at least 80% of the pre-coronavirus levels. However, once China started ramping up after the first infection wave, N.A. and Europe were under lockdown, impacting customer requirements. According to CEOs from across the U.S., they experienced delays initially but it is largely back to ‘normal’. On the other hand, we are also hearing that some folks are experiencing extended lead times. It certainly can depend on the product, material, specific supplier, etc.

Customers that switched supply to Vietnam prior to coronavirus have experienced high levels of service and are generally happy. While there aren’t a lot of numbers coming from Vietnam, it appears as though manufacturing has largely carried on to the levels needed. Of course, if you were in process of transitioning to Vietnam when coronavirus hit, it probably has been put on hold. India shut down for a month during coronavirus but started up essential manufacturing early in the ramp up. India hopes to ramp up manufacturing as companies accelerate the de-risking process from China whereas Vietnam is already in that position and hopes to expand. Japan and South Korea largely carried on through coronavirus. The only noteworthy disruptions were caused by shortages of supplies from their extended supply chain. Overall, there were initial delays with Asian supply, and the degree varied quite significantly based on the source of supply.

With that said, there are increasing levels of concern about a second wave of coronavirus hitting the Asian supply chain. Beijing has been in lockdown with surging cases of coronavirus. Although not integral to the supply chain, it is a bad sign of potential negative impacts to come. It is recommended to bring inventory in ahead of the holiday season and to be cautious with paying cash upfront as several small and medium size Chinese suppliers are struggling.

In Europe, it varied significantly by country. German manufacturers kept operating throughout the coronavirus lockdown. Since they saw the virus coming from what happened in Asia, they implemented social distancing and other protocols throughout rapidly. Certainly, Spain and Italy were impacted more severely and shutdown for a period of time. Several European and U.K. car manufacturers shutdown due to lack of demand and significant disruption in the supply chain. Aerospace companies in the U.S. experienced issues receiving essential components from Europe during the pandemic. Overall, CEOs across the U.S. said that supply from Europe wasn’t interrupted significantly.

U.S. manufacturers of essential products were largely able to continue producing. Of course, depending on the customers’ served, volumes dropped dramatically and disappeared (suppliers to hospitality for example) or experienced aggressive growth (lawn and gardening, toilet paper, PPE).  However, on average, volume dropped to 50-70% of the pre-coronavirus levels. CEOs from multiple industries have said the biggest issue has been disruptions in the supply chain. There are examples of essential U.S. manufacturers experiencing issues receiving materials/component parts from Mexico, Europe and Asia. Not every country had the same definition of essential. Consequently, there is a lot of talk about regional manufacturing and reshoring.

Brazil has been hard hit with the coronavirus recently, and manufacturers have been forced to shutdown. No part of the world has escaped this pandemic! Thus, the global supply chain has come into the forefront and is taking a seat at the table. Are you going to chase your supply chain or build appropriate diversification and flexibility and identify acceptable levels of risk upfront in your strategy discussions?

We are seeing a surge of supply chain strategy assessment and roadmaps. Are you evaluating your supply chain so that you can take charge of your future? There is no such thing as no risk.  Understanding your customer profiles, changing customer requirements and associated product supply strategies is a place to start. If you’d like to discuss your strategy, please contact us.

 

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Beware of New Data Law in China & Its Impacts

February 27th, 2020

According to the Epoch Times and International Business Attorney, John Tulac, China’s new cybersecurity law poses a big risk for anyone doing business in China. In essence, if you send data to or from China, your data can be audited at any time. It certainly is concerning from many standpoints such as intellectual property, trade secrets, and more. Listen to my short video on this new law and impacts to consider.

John and I talk about this law as well as many other topics related to doing business in China, alternatives to China and the new USMCA trade deal. Listen to our new interview in our Future-Proofing Manufacturing & Supply Chain series. Undoubtedly, you’ll pick up a few worries along with ideas/ potential solutions. Let us know what you plan to do.

What Should We Consider and/or What Impacts Could Arise?
Many of our clients do NOT import from China.  So you might be thinking, why does this apply to me? If companies start leaving China in a mass exodus, you will certainly be in competition for new manufacturing options such as Vietnam, skilled labor in the U.S. and Mexico, technical skills to automate, use 3D technology, etc. And this is before thinking about indirect impacts. If the supply chain moves away from China, where will it move? There could be dramatic impacts on ocean lanes, political unrest throughout the world, raw material supply and supply and demand. We have never met a client unconcerned about these topics. After all, profitable growth is the name of the game!

At a minimum, no matter whether your supply chain relates to China, we recommend you re-think your manufacturing operations and extended supply chain. Are you dependent on any core suppliers? Are you spread too thin among suppliers? How are you selecting suppliers? And that is just the first topic in a line of many when re-evaluating your end-to-end supply chain. How about the broader topics of whether your manufacturing and supply chain is agile? Fast?

Start by re-evaluating your manufacturing and supply chain road map and think through related impacts. These topics certainly relate to our new LMA-i, LMA-Intelligence series including the Amazon Effect, the Resilient Supply Chain and Future-Proofing and contact us if you’d like an assessment path-forward plan to accelerate your bottom line and customer performance.

 



Manufacturing Expert, Lisa Anderson, Advises Future-Proofing the Supply Chain

November 26th, 2019

CLAREMONT, CALIFORNIA – November 25, 2019 –  Manufacturing and Supply Chain Expert,  Lisa Anderson, MBA, CSCP, CLTD, president of LMA Consulting Group Inc., is working with clients on Future-Proofing their manufacturing operations and supply chains.   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.

“As manufacturers and distributors respond to changing client needs and expectations, they are also working with other unknowns.  Trade wars, tariffs, civic unrest and speculation of a recession are all considerations when trying to manage and scale for growth and make plans for the future,” Ms. Anderson commented.  Future-proofing the supply chain is top of mind as manufacturers are squeezed by even bigger issues like baby boomer retirement, a limited talent pool and the challenge of how best to leverage technology and artificial intelligence.

Innovation and collaboration are key drivers when anticipating client needs. “We work every day with clients focused on being ahead of customer demand. Yet, the realities are changing expectations, budgets, balance sheets and P&Ls. Despite continued growth, it’s important to be vigilant with inventory levels, margins and operational performance. We find that the most successful companies are looking at their end-to-end supply chain and ensuring that every aspect from suppliers to customers are aligned,” she said. Alignment can be achieved in several ways. By working through a S&OP/ SIOP (Sales, Inventory, Operations Planning) model, demand and supply are not only aligned but the teams associated with these internal functions and others such as R&D, Finance and external supply chain partners are aligned as well.

“SIOP looks at the business through a different lens.  We recently worked with an aerospace manufacturer who was able to gain a better view into customer demand which enabled capacity and operations alignment. The result was improved service levels and reduced lead times, leading to increased customer satisfaction and sales growth. Inventory levels were also reduced, freeing up cash to be invested elsewhere. Lastly, with greater visibility into the supply chain, material, freight and operational costs were reduced. By aligning the key stakeholders and plans, the results are substantial. This is one example of future-proofing,” she said.

Panelists at the recent APICS Inland Empire Chapter’s Fall 2019 Symposium, of which Ms. Anderson is President, discussed the need for technical firms and educational institutions to collaborate with internal functions to elevate the performance of the end-to-end supply chain. Ms. Anderson also sees emphasis on manufacturing and supply chain through her involvement with the Board for the Inland Empire Economic Partnership which is developing a consortium for advanced manufacturing and logistics success. She is also active with the Manufacturing Council of the Inland Empire where she heads the Innovation Awards for the Annual Summit.  “Manufacturing remains a core industry in the U.S. The time is right, and the time is now to focus to future-proofing manufacturing and the supply chain for success” she 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 is a recognized Supply Chain thought leader by SelectHub, named a Top 40 B2B Tech Influencer by arketi group, 50 ERP Influencer by Washington-Frank, a 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, 101 strategies for creating bold customer promises and profits. A regular content contributor on topics including 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.

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