Tag Archive: leverage

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



Top Trending Client Request: Reduce Inventory

October 7th, 2019

More than 50% of client requests in the last several months have related to inventory. In fact, it seems to be a trending hot topic! In today’s era of the Amazon Effect where customers expect more and have ZERO patience to wait, there are challenges like a volatile environment with tariffs and concerns about space, costs and more, more inventory is needed to grow the business yet businesses cannot afford it. Learning how to reduce lead times and improve service levels while reducing inventory and costs is of utmost importance.

In partnering with several clients on just this topic, we’ve found the same ingredients to success yet the mix and proportions can be quite different. Several of the top contributors behind inventory success include:

  1. Demand planning: It turns out there is a lot to be said for fine tuning your demand plan (sales forecast). How well do you understand your customer requirements? We’ve seen that even in the best of clients, there is a gap between perception and reality. In 80% of our clients, there is a path to significantly improve the forecast with a direct correlation to inventory reduction
  2. Production &/or material planning: Not surprisingly, there is no ‘magic process’ that works for every client.  However, there are general themes that are identical. In every case, there is some sort of logical combination of master scheduling/material requirements planning (MPS/MRP) and kanban processes. How we figure out the right mix, proportions and formulas is the trick. It depends on the manufacturing/distribution type, people, processes, systems, customers, suppliers and related capabilities and more.
  3. Distribution planning: Similar to production and material planning, we’ve seen a significant opportunity with several clients to leverage a more proactive yet simpler distribution planning approach. The process will involve concepts from DRP (distribution requirements planning) and kanban. Often, this simple process can provide the visibility required to better manage inventory levels.
  4. Lead Times: Certainly, none of these can be viewed in isolation. Customer lead times will dictate the requirements of your network, whereas supplier lead times must be built into your planning processes. Distribution lead times and options (mode of transportation) could also make the difference between OTD (on-time delivery) or OTIF (on-time-in-full) and late delivery as well as profit and loss.
  5. Capacity: Understanding your capacity (skills, labor, machinery, space, and more) and how it relates to your requirements is of paramount importance. This process of aligning demand with supply across your organization and supply chain is termed SIOP (sales, inventory and operations planning).

In our experience, clients can reduce inventory by 20-30% on average without negatively impacting customer service. In fact, we often find that a win-win-win can be created: improved service, inventory turns and cost/margins simultaneously.

Read more in an upcoming article I’ve written for Distribution Trends.  Feel free contact us to discuss your situation in detail.

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

Will Inventory Matter Again?
Warehousing Strategies for Success

 



A Once-in-a-Lifetime Opportunity for Manufacturing, Logistics & CA to Align

July 15th, 2019

Last week, I went to the California Capitol building as a part of the Inland Empire Economic Partnership’s (IEEP) regional leadership academy. It was interesting to hear how the process works. I also am also representing the IEEP’s Logistics Council as it relates to moving forward with the Brookings report recommendations to create a consortium of logistics and advanced manufacturing excellence in the Inland Empire.

We are positioned ideally to scale up and partner with industry, academia and government/non-profit partners to achieve this once-in-a-lifetime opportunity of aligning seemingly disparate goals of manufacturing, logistics, California government and the federal government’s interests to achieve a win-win-win-win. Wouldn’t that be a feat!

The idea is simple. The Inland Empire’s predominant high-paying professions include logistics and manufacturing. The IE has been outpacing all of California in job creation due to these industries yet they are not typically supported (to say the least!). Since they are contributing vitally to the IE community and jobs, we have the cards stacked in our favor:

  • IE logistics is #1 in the U.S.
  • IE manufacturing is strong and vast (SoCal is #1 in manufacturing in the U.S.)
  • The IE has access to great talent in the local and surrounding area universities (CSUSB, UCR, Drucker, Harvey Mudd, Cal Poly, Redlands), community colleges (Norco, Chaffey etc.), and partners such as GA Tech
  • And, the IE is in the unique position to leverage advanced technology to increase customer value, improve profit and create clean technologies as a win for the environment, X.

Thus, we are scaling up and collaborating for success.

This opportunity didn’t just fall into the IE’s lap. The leaders saw potential and ‘went for it’. Are you looking for opportunities?

One tip to implement this week:
In our work with clients, it is commonplace for clients to ignore vast opportunities such as this exciting initiative. There are always roadblocks, different interests, money flows to address and lots of other issues that arise. The key question is whether you are looking at each issue as a detriment or if you see the big picture and train your eye to ‘see’ a successful path forward.

Recently, our APICS Inland Empire chapter had the opportunity to provide training and education to Target (thanks to our partnership with the University of LaVerne). When the opportunity arose, we didn’t know how we would scale up and fulfill it successfully. However, we took the leap of faith to create value and had the confidence that we’d figure it out.

At first, we were worried about executing against our commitments.  Yet, it all fell into place. It forced us to be a bit more creative.  So, when the next leap of faith opportunity arose to provide manufacturing and logistics education to high school students to help bridge the gap to a profitable career, we went for it. We continue to evolve as we go but it has allowed us to make a difference in a way we would never had pursued or been involved with previously. Are you taking a leap of faith?



According to the Industry Week U.S. 500, Manufacturing is STRONG!

September 21st, 2018

 

According to the Industry Week U.S. 500 (America’s largest manufacturers), manufacturing is STRONG!  In fact, the author uses the words VERY STRONG – most likely the largest opportunity for manufacturing since the end of World War II.   Now that is saying something….

The economy is strong and is supplemented by a tax overhaul that supports manufacturers combined with a deregulation focus.  The key is to leverage the opportunity. Even though there are lots of worries about trade wars and skill shortages, thus far, manufacturing continues to outperform.  Get ready for agile and speedy manufacturers with high tech tools to outpace the pack and further spur the economy! Will you be in the fast lane or watching them race by?

What Should We Consider and/or What Impacts Could Arise?
Take a pragmatic look:  Are you in the fast lane, driving with the pack or in the slow lane?  

With the VAST opportunities for manufacturers to succeed, perhaps it is time to put on your turn signal and step on the gas!  As one of our LMA Associates has been saying lately, perhaps we should all “make hay while the sun shines”. Are you?

Making It Happen
Strangely, one of the most important to-do’s should be to not get carried away with all the negative “what if’s” (such as trade wars).  Of course, don’t hide your head in the sand. Stay up-to-date on what’s most likely and relevant to your industry.  Focus 95%+ of your energy on how to distinguish your company from the competition while providing superior customer experiences and enabling scalable, profitable growth.  

Make hay while the sun is shining. Bring your best team players together.  Bring in experts to accelerate progress.  Ignite innovation.  Create the environment to ensure success.  Remember your supply chain partners.  AND THEN, “get out of the way”. Success will follow.



Technologies: Paying Attention to What is Important

September 6th, 2018

There are so many new technologies and combinations of technologies, it is extremely hard to keep up.  How do you know which to pay attention to and which to ignore? Unfortunately, some clients have told us they get overwhelmed by it all and just go back to what they are expert in (running the business) and postpone the technology decision.

As much as we find that technology is NOT #1 to success, achieving scalable, profitable growth without technology is an uphill battle to be sure!  We also find some technology enthusiasts who get so bogged down in technology as the “be all, end all” to success that they actually struggle. Instead of either of these extremes, use a bit of uncommon common sense and determine which technologies are important.  A few points to consider:

  1.  Your Industry:  There is no point being an early adopter if unnecessary in your industry unless it is your competitive advantage.  Where is your industry headed? What would provide a benefit?
  2.  Your Position:  If your competitive edge is being on the forefront of delivering an exceptional customer experience, you better figure out what you need to succeed in this differentiator.  If this is the case, we bet you would need to invest in technology that would enable a superior customer experience. But it is unlikely you’d need other technology advances.
  3.  Return on Investment: As exciting as new technology can be, it pays to ensure you’ll gain an ROI.  Go through the exercise to determine if technology will enable growth, profitability, cash flow or another bottom line benefit.
  4.  Your Current State: A few of our clients have been in a position where they were limited in growth prospects without enabling technology.  Of course, they could grow by brute force with a stellar sales and marketing team; however, to grow in a scalable way, they will need to leverage technology instead of hiring just to ‘keep up’ with growth.
  5.  Your Strengths:  As with most priorities, focus on your strengths.   It can be tempting to “keep up with the Joneses” and buy the latest and greatest technology you think your competition is using.  However, instead of throwing good money after bad, think about your company’s strengths, your teams’ strengths and what makes the most sense to align those strengths with customer requirements.

In today’s Amazon impacted environment, evaluating technology to best support your business objectives is a “must”.  As much as can be accomplished through people and process alone, you will not thrive without at least thinking about technology.  

You want to be aware of what’s coming down the pike in terms of technology before you head over the edge in complete denial with your typewriter in hand.  After all, who would have thought network TV would trend towards becoming obsolete?