Tag Archive: IoT

Survey says Automation Beats IoT

September 19th, 2019

According to Industry Week’s Tech survey, robots are hot! On the other hand, there is a bit of skepticism with IoT and wearables. In talking with mainly small and medium size manufacturers in answering the question of which technology is most important to your company’s success, AI/ automation came in at #1 by a long shot.  It was followed by data analytics software/ERP/MES and then additive/digital manufacturing.

The article discussed the fact that IoT has been quite successful at driving results but the larger companies are the ones pursuing it. Certainly, with our clients, the small and medium size clients have less resources and need to prioritize.  We are seeing the same set of priorities. With that said, there is a lot of interest in IoT as it relates to connecting equipment, vehicles and more.  However, it is a more complex topic with multiple vendors involved. It just hasn’t been rolled out in any significant way because manufacturers and distributors see more potential for customer and bottom line improvement with automation/AI, ERP systems and additive/digital manufacturing. Are you considering any of these options?

What Should We Consider and/or What Impacts Could Arise?
Since we work with clients that are small and medium closely-held organizations to private equity backed to multi-billion dollar enterprises, it is interesting to note what is in common across the board. Certainly, there is no doubt that almost every executive is at least thinking about automation and robots!

Are you keeping up on the latest thinking on the benefits of technology? We NEVER support technology for technology’s sake. In fact, it is a common mistake for clients to get carried away with the latest and greatest concepts and lose sight of the return to the customer experience and the bottom line. With that said, you have to be aware of what’s out there and be continually evaluating what might make sense for your business.

I just talked with a commercial banker about collaborating on a robotics education session. Why not seek out information and figure out which technology will align with your business strategy and objectives? Then, put together a trial to test the concept without a significant financial commitment. There are also resources to collaborate with to share in these learning opportunities.

For example, we are creating a consortium for advanced manufacturing and logistics excellence in the Inland Empire focused on just this topic. Also, our non-profit APICS Inland Empire group, which is a chapter of the Association for Supply Chain Management, provides symposiums, webinars and tours related to these types of topics. You’ll find more information on these types of topics on our resilient supply chain series.

 

 



Blockchain Service Has Gone Mainstream

June 11th, 2019

 

Although according to most experts, blockchain hasn’t lived up to its promise yet especially in comparison with IoT, robotics and more, it has just gone mainstream. Of course, who else but Amazon has just made blockchain service platform generally available. Undoubtedly, that will disrupt many of the techies running around to be the first at blockchain! With that said, big names such as IBM have poured a lot of resources into blockchain, so it is likely to go somewhere. For example, IBM and Syniverse just completed a pilot program for roaming solutions using blockchain technology.  And, IBM has interesting projects going with Nestle, Volkswagen, and Albertsons (the world’s 2nd largest grocery chain).

Have you thought about how blockchain might impact your industry?

What Should We Consider and/or What Impacts Could Arise?
There has been a lot of hoopla about blockchain for several years although progress has been slower than many other technologies. Regardless of how popular, it is important to understand key technologies that might impact your industry or your supply chain partners. Certainly, in blockchain’s case, it is relevant to industries where a chain-of-custody might be needed such as food. That is why two of the companies mentioned above relate to food, Nestle and Albertsons. Yet it doesn’t matter if you relate to food or another blockchain-related industry, it is quite likely your industry or your supply chain will be impacted in some way. For example, you might use the same supplier or transportation system.

The bottom line is to stay abreast of what might impact your industry, company, customers, suppliers and related geographies. Thinking ahead will enable you to take advantage of opportunities and successfully navigate around barriers. You’ll find more information on these types of topics on our resilient supply chain series.

 



Boom or Recession? What is the State of the Economy?

May 6th, 2019

In the last few months, I’ve attended sessions on the global, national and regional state of the economy. Every executive, trusted advisor and colleague wants to know: Are we headed for a recession?

The bottom line answer is that there are no signs of a recession in the foreseeable future in terms of the economy. Instead of worrying, it might be just the time to take advantage of the opportunity. As Roy Paulson, president of Paulson Manufacturing said in our 2019 Predictions from Manufacturing & Logistics Executives report, “…expect to see more talk of tariffs, threats and waving of hands, all the while, those of us in exporting will be busy making deals, signing contracts and getting business done.”

Similarly, in manufacturing, there was concern over the worsening ISM (Institute for Supply Management) index even though it remained far above (54.2) the level that indicates expansion (50) yet the index rose significantly in March to 55.3, signaling great growth and stabilization. The largest contributor was from employment which had the biggest gain in 3 years. All cylinders seem to be firing.

Yet many remain concerned for the next shoe to drop due to the volatility and uncertainty of these tumultuous times. Perhaps it is time for us to get comfortable with volatility and pursue new product introductions, technology (automation, AI, IoT) for those that will add value in our businesses and experiment with innovative ideas. What better time will there be to get in front of the curve so that we can pass by the competition if/when a recession hits?

One tip to implement this week:
There are countless studies that prove that those people who remain calm, invest smartly while others panic and stay the course to what they know will add value to their business thrive. Perhaps we should take a page from their book.

Of course, stay up-to-date on the latest trends and don’t hide your head in the sand as issues arise.  Spend the 80/20 of your day looking for opportunities. What new ideas have you had lately? Have you asked your front line employees for ideas? Are you willing to invest in their education and give them the chance to fail?

When I was VP of Operations at PaperPak, I worked with a CEO who was constantly thinking about the ways for us to succeed. Gas prices rose (which we obviously couldn’t control), which had the potential to create pure havoc with our profitability (with a Board that didn’t consider gas prices a reasonable excuse). Instead of panicking, he would consult with key people throughout the organization and create opportunities to get ahead of the issue. We rose from the ashes more times than I can count because we kept focused, thinking of opportunities instead of becoming defeated by some rather significant curve balls.

Give it a try this week at the next sign of volatility and disaster. How can you turn it into an opportunity?



What do UPS, Shamrock Foods, Amazon & a 3PL Have in Common?

March 14th, 2019

In touring multiple facilities, ranging from package shipments to cold storage food service delivery to the e-commerce behemoth to 3PL organizations, it despite the conversations that take place about labor costs and other daily concerns, the #1 concern across the board is transportation costs. The numbers support this sentiment. According to CSCMP, transportation costs are 65% of total logistics spend.

Logically, it also makes good sense. No matter your business, materials, parts sub-assemblies and/or products need to arrive at your facility. Often, especially in industries such as aerospace, the parts make multiple trips around the area (unless you are unlucky enough to require sourcing outside of your local area) for outside processing services such as anodizing and painting. Lastly, every work-in-process part or finished good must go to the next stop along the way to the customer such as a final assembly customer, your distribution center, your customer’s distribution center or the end customer. That makes for quite a lot of transportation, often involving multiple modes of transport from air freight to ocean freight to rail to trucking.

Given these alarming statistics about transportation costs, the question becomes: What can we do to proactively manage these costs as well as reduce the impact on the environment? After listening to several experts on these tours and experts from Georgia Tech, APICS (learn more about the critical importance of logistics in our APICS-IE CLTD, certified in logistics, transportation and distribution certificate program) and CSCMP SoCal (at the state of the industry event), a few ideas emerged.

  1. Collaborate with strange bedfellows:As recently published in an I’ve Been Thinking article, collaborating with strange bedfellows can achieve 1+1+1 = 25 minimally. In terms of transportation, there is no doubt maximizing the space used in your truck, container or plane is vital. Why not collaborate with another business to increase your utilization?
  2. Take the holistic or systems view: It is quite challenging to see the forest for the trees as the old slogan goes. We have all been there! I have worked with clients for extended periods of time and found myself with this same issue.  So, I have to deliberately shake it up to maintain the systems or bird’s-eye view. For example, don’t worry about saving a few pennies on a non-essential element of your transportation infrastructure when you are missing the key point that your mix of modes of operation or something like that is costing you millions.
  1. Utilize technology that focuses on the critical transportation factors: In every case (at every tour, event and in every conversation), leveraging technology where it makes sense came up. Certainly, artificial intelligence is the new craze since it has the potential to transform entire industries including logistics. However, robotics are being considered even in industries such as 3PL where they never were previously due to the nature of managing different customers and products. Of course, IoT is prevalent in the world of logistics and transportation as well as topics such as alternative fuels and automation. And what about the basics of a solid ERP system and TMS (transportation management system)? Don’t panic over the horror stories. Contact us if you want to overcome them.
  1. Be customer friendly:Interesting how often being customer friendly arises, no matter the industry or size company (small family owned to private equity backed to large complex organizations).  With rising truck rates and a shortage of drivers, if you aren’t a preferred shipper, you might just be out of luck no matter how much you spend. What does it take to be a preferred shipper? It depends on your business, carriers, locations and more. However, it starts by thinking about what is important to your carrier (not you). Are they looking for flexibility? A quick turnaround time? Fast payment? Good treatment for their drivers?

Since transportation costs are, at minimum, 65% of your total logistics spend, it requires further thought. With the vast amount of technology options available, the best approach is to start with your foundation (your ERP system) and ensure it is stable. Once you have a scalable base, find the ‘right’ technology for your situation to maximize the value of your logistics infrastructure. However, remember the 80/20 goes back to people. What are you doing to develop strategic partnerships and to ensure you are customer friendly and a preferred shipper? Given the impact, don’t leave this to chance or make assumptions. We all like to think we are preferred but what can we do to take it an extra step further?

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

Systems Pragmatist

 The Sheer Relevance & Impact of Transportation (a Billion Here, a Billion There)The Resilient Supply Chain: Should We Invest in Technology?

 



Manufacturing & Supply Chain Expert, Lisa Anderson, Garners Executive Predictions for 2019: Opportunity Abounds

February 26th, 2019

CLAREMONT, CALIFORNIA, February 25, 2019 –  Manufacturing and Supply Chain Expert Lisa Anderson, MBA, CSCP, CLTD, president of LMA Consulting Group Inc. asked key business owners and executives about their predictions for the state of business in 2019. From aerospace and defense to food and beverage to building products, the perspectives may be different, but the outcome is the same: Opportunity Abounds.

“During these volatile, Amazon-impacted, ever-changing ‘new normal’ times, executives are responding in new and creative ways to proactively address business risks such as global trade tensions and cyber security concerns. They do this by maximizing vast opportunities arising from changing business conditions and embracing technology advancements,” Ms. Anderson commented. LMA Consulting Group works with clients on manufacturing strategy and end-to-end supply chain transformation that maximizes the customer experience and enables profitable, scalable, dramatic business growth.

From a focus on ever-changing customer needs and increased expectations driven by the Amazon-effect to tight labor and transportation markets and responding to rapid growth, the outlooks and attitudes are positive. LMA Consulting Group just released the findings of the executive predictions for 2019.  “Manufacturing & Supply Chain in the New Normal” can be downloaded at no charge from the LMA website.  “While we saw innovation, IoT, artificial intelligence, big data predictive analytics and additive manufacturing as game changers in 2018, companies are starting to turn these technologies into customer success stories as well as bottom line improvements. Yet, with the increased volatility, uncertainty and distraction of key talent, organizations must raise the bar and innovate to thrive in 2019.

With innovation being a key driver of success for manufacturers, Ms. Anderson recently participated in the Manufacturing Council of the Inland Empire’s Annual Manufacturing Summit where she presented innovation awards to manufacturers.  Winners included:  Ingram Micro, Process & Resource Efficiency Award; Phenix Technology, Inc, Human Capital & Talent Award; Brenner-Fiedler, Product Innovation Award and Harvey Mudd College for work with Laguna Clay Company, Innovation by Students Award.

“We predict that the successful manufacturers and distributors will put their employees first to create a customer-centric and resilient end-to-end supply chain. Opportunity abounds” 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 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 and named a top woman influencer by Solutions Review. 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 providing 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.
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