Tag Archive: impact

Priorities, Priorities, Priorities

November 21st, 2019

When teaching a CSCP class for a large Target distribution center recently, one of the managers asked me about what drives results across all clients. One of the great benefits of speaking and teaching is that attendees stimulate new ideas and/or insights. I gave him what popped to mind immediately.

However, it got me thinking. Why not share these with my clients as it might stimulate ideas across the board! Here’s what popped into my mind: We gained the biggest benefit when figuring out where to focus attention to achieve the desired end result (such as increasing revenue, profit or cash flow). In essence, what is the priority?

Unfortunately, this sounds so obvious that most people think they have it covered but they do NOT! I’ve yet to meet a client with the following situation:

  • Just a few key priorities that were best suited to drive the results they desired
  • Key players in the organization (and perhaps key supply chain partners) were aligned on this same page.

More typically, there are FAR too many priorities AND the issue is that they all sound like priorities.

  • The Board wants x.
  • Our key customer is demanding y.
  • There are projects to launch new products.
  • There are projects to save costs.
  • Employees need education and training to know how to grow the business.
  • And the list goes on.

So what should we do? If it were easy, it wouldn’t be so commonplace. Yet, it is doable. We start at the end and work our way back. What are the desired results we need x months or years into the future? Then we look at how we get from where we are to where we need to go. Again, it sounds quite simple but, of course, it isn’t. And then, we look over what we see as priorities and how they fit into what we need to get from here to there.

Next, we look at three aspects:

  • What is the impact of the priority?
  • How urgent is the priority? This is often confused with impact. Often, they are NOT the same.
  • If we did nothing, what would happen? Would the situation get better on its own, stay the same or get worse?

Re-think your priorities. Why are you doing what you are doing? I was just reminded of this recently by a partner. She asked about the results we were achieving jointly and wondered if the level of effort was worth the outcome. I had to say, she was right! What were we thinking? Consequently, we are re-evaluating our priorities.

How about you?  It also often takes an outside view to stir the pot to re-think priorities. Are you comfortable? If so, you might want to take another look.



Celebrating Manufacturing Day & Its Impact

October 30th, 2019

In our Manufacturing month Profit through People newsletter, we discussed the relevance of manufacturing on the economy, jobs and quality of life. For example, for every $1 spent in manufacturing, $1.82 is added to the economy which is the HIGHEST multiplier effect of any economic sector. Read our feature article to gain many other compelling statistics.

October is Manufacturing Month.  Specifically ,Oct 4th is Manufacturing Day. And, we are ready to celebrate our significant success. After all, for an industry the general public thought was dead and outsourced to China, it is far from dead. In fact, manufacturing in the U.S. would be the 8th largest economy in the world!

There are many manufacturing events occurring during October. Take a look at a few of the options and consider how you can participate:

What Should We Consider and/or What Impacts Could Arise?
What is the impact of Manufacturing Month?

We could make the difference in not only our economy and quality of life but also on future leaders!
How can you participate in Manufacturing Day? Read through any one of the opportunities listed above. Or, why not start an event of your own? APICS Inland Empire teamed up with the University of LaVerne to offer production and inventory management education to high school students recently. These small steps can transform lives!

We are interested in what you decide to do. Send us feedback, pictures and ideas for continuing to spread the word on manufacturing. Manufacturing is a critical aspect in creating a resilient supply chain and so we thought we’d share a myriad of articles about manufacturing and supply chain to increase your success on our blog.

 

 



Hurricane Dorian & Your Supply Chain

October 13th, 2019

 

Hurricane Dorian certainly took over the news as it threatened devastation. I’ve included YouTube from USA Today of the storm. People were evacuating up and down the east coast. Although the impact on people’s lives is certainly more important, there is a dramatic impact on businesses, as well. As logical as it sounds for east coast manufacturers, distributors and other businesses to be impacted while preparations are underway and the storm passes, it also had a profound impact on customers, suppliers and their extended supply chains. Are you prepared to navigate these types of disruptions?

What Should We Consider and/or What Impacts Could Arise?When I was VP of Operations and Supply Chain for a mid-market manufacturer, a hurricane devastated Greenville, North Carolina, the location of our largest manufacturing facility. Luckily, since the facility used to be owned by P&G, they evaluated risks as a normal course of operations and the facility was on high ground and not affected.  Yet, the facility was closed and nothing could get in or out. That situation alone proved the importance of thinking ahead to key risks, managing proactively and creating a resilient supply chain.

An east coast issue is no longer an east coast issue. For example:

  • Do you use the same carriers that might be tied up on the east coast?
  • Are your servers on the east coast?
  • Do you have any suppliers or customers on the east coast?
  • Do you have suppliers who supply other customers on the east coast? Or do your customers have other suppliers or customers on the east coast? Most likely YES!

The bottom line is 80% of my clients are impacted directly (suppliers, customers, transportation partners) and 100% are impacted through their extended supply chain. At a minimum, don’t wait to think about disruptions until they are imminent. Build agility, flexibility and resilience in your business as well as within your extended supply chain. 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.



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:

 



E-Commerce Drives Industrial Space to New Heights

June 21st, 2018

Supply Chain Briefing

According to the Journal of Commerce, e-commerce is driving industrial space rents to new heights.  Our clients are definitely experiencing the same dilemma! There has been a 12.1% increase in rental rates since 2017, and the L.A. / Long Beach area has the lowest vacancy rate in the U.S. of 1.2%.  Ridiculously, the average price in L.A. was 60%+ higher than the U.S. average in the first quarter! And, stranger yet, e-commerce is driving class B space (not as desirable) to be snatched up. It is becoming the new class A!  Even Class C (even less desirable) is starting to sell like hotcakes.

Are you prepared for these Amazonian type disruptions?

 

What Should We Consider and/or What Impacts Could Arise?
First, are you thinking about the disruptors most likely to impact you?  For example, almost every manufacturer and distributor is certainly impacted by Amazon’s rapid delivery expectation.  Have you thought about what your customers expect from you? How about what is required to satisfy – or delight – them?  Undoubtedly, the bar has been raised.

Speed is a more apparent Amazon-related outcome.  Don’t stop there. In order to support rapid deliveries, what will be needed now?  Six months from now? A year from now? Currently, it has made proximity to the ports and customers of utmost importance.  What other impacts have arisen? In this case, e-commerce has changed our shipping and transportation expectations dramatically and permanently – we expect to receive only exactly what we need (whether 1 box or 1 piece) when we need it.  

This has created the need for e-commerce fulfillment operations.  Where would you prefer to locate your operation? Most likely as close to customers and your supply base as possible.  In this case, it means rates are going through the roof – if you can even get them. What can you do to proactively set up your supply chain to support these likely impacts?  And, are you building these estimates into your projections? How will you make effective decisions – can you bring your suppply chain into the process further?

Don’t delay any further….