Tag Archive: ism

What Tours Have You Gone on Lately?

August 27th, 2018

In the last month, I have attended quite a few tours of manufacturing and distribution operations.  The pictures below were taken at an APICS Inland Empire and ProVisors tour of Southwest Traders Foodservice Distribution and Do It American Manufacturing.  Both were excellent.  And I walked away with great tips!

Tours are a great way to see different ways of doing business and gain insights and ideas to apply in your company.  I find that what I see and learn will provide value to clients somewhere down the line.  As often as I hear clients request a consultant with knowledge in their specific industry, I have found that we often-times provide even greater value when we can apply a concept that we’ve seen in a completely different industry that looks like it could be an ideal solution.

What Should We Consider and/or What Impacts Could Arise?
How recently have you gone on a tour?  You might want to start by going on a tour of your company.  As strange as it sounds, it can be eye opening if you take the view of an external tour and see what you observe.  Better yet, take others with you and see what they observe.

Beyond your facility, there are many options for tours of manufacturing and distribution operations.  You can go to customers and suppliers to better understand their operations. Not only will you gain ideas, but you’ll learn about companies that tie directly to yours and collaborate with supply chain partners.

You can also tour by joining a trade association like APICS (trade association for supply chain and operations management), the DMA (distribution management), ISM (supply management), CSCMP (transportation) and more.  Last but not least, why not ask friends and colleagues for a tour.

While you are touring, observe and ask questions.  You are likely to see new techniques, learn about new technologies, see different equipment (such as narrow aisle forklifts which we saw at Southwest Traders), observe robots in action (which we did at Do It American), discuss metrics and dashboards and much more.

Step out.  Take a Tour.  Learn from Others.



Manufacturing Expands at the Fastest Rate in 14 Years

March 21st, 2018

Supply Chain Briefing

According to ISM (Institute of Supply Management), manufacturing expanded more than it has in 14 years in February – it is on fire!  Improving global economies and firm business investment are fueling this expansion. The factory index climbed to 60.8 from 59.1. Export orders are also up from 62.8 from 59.8 which is the fourth consecutive improvement and the longest stretch in six years.  Are you taking advantage of this manufacturing boom? How can you? Coincidentally a recent article was on exports – perhaps that is one area of opportunity? It appears to be for the vast majority of U.S. companies.

 

What Should We Consider and/or What Impacts Could Arise?

Let’s start by taking a look at your latest trends.  Has your volume increased? If not, why not? Are you in an industry that has been negatively impacted?  How do you perform vs. your competition? Most likely, you are growing. Do you know how your growth compares with the industry’s growth?  Could you be growing more quickly? Perhaps it would just take a small tweak….

If you are set up to be agile and are positioned to grow, you are likely to grow faster than your competitors.  In today’s Amazon-impacted marketplace, no matter your industry, if you cannot deliver on-time and within the expected time frame (which is quicker and quicker with each passing month), you will lose the order to your competition.  Even in contract-oriented industries, you have to be alert. Not only might you lose the order, you could lose the next contract.

Are your manufacturing facility and supply chain ready for growth?  Have you provided your suppliers with updated forecasts? Are they able to keep up?  Do you and your extended supply chain have the staffing, training programs, equipment, cash, and more in place?  If you aren’t sure, find out!