Tag Archive: logistics

The Often Overlooked Value of Reverse Logistics

November 7th, 2019

While recently at the Association for Supply Chain Management International Conference, I attended a session related to reverse logistics that contained several ideas for how to achieve significant savings and customer value through reverse logistics.

What I thought was even more compelling were examples of innovative ideas that a friend of a colleague discussed that will provide superior customer service AND a significant margin improvement with a common sense idea gained by collaborating with her team. It again proves that results go to those who take the time to listen, observe and collaborate to test new ideas.

One example related to shipping boxes: This aerospace manufacturer received complaints from their customer that they didn’t want hefty shipping boxes as they had to dispose of them. However, there are legal and security requirements that had to be addressed.  So, a creative solution was required.

A team brainstormed ideas and developed a way for the customs officials to look inside the crate without breaking into the crate and created a way to return and reuse the crates also saving the customer disposal costs. Collaboration was a key theme as the supplier, customer and internal team were involved. As this top notch manager commented, there are countless numbers of these types of opportunities out there if we just listen, observe and collaborate.

When is the last time you have visited your shipping operation to ask for common sense ideas that can achieve a dramatic return on investment? Even more importantly, the team feels a part of an important success.

Turning to the e-commerce world, according to a presentation by the Reverse Logistics Association, returns are 25-35% for on-line sales vs. 8-9% in stores. What a dramatic difference! And, of course, handling these returns is inefficient. Traditional labeling is the limiting factor in achieving higher throughputs. Have you thought about your labeling recently? Who knew it could become a differentiator!

When looking at reverse logistics related to food, collaboration was again a key theme. Costa Farms resolved cart and rack issues with both the customer and supplier by moving to consolidated rack return. The idea of collaborating across supply chains is just gaining momentum. For example, as a part of the consortium for logistics success in the Inland Southern California, we are collaborating with Georgia Tech. They are bringing collaboration of strange bedfellows across Southern CA to the table as a way to create a win-win-win for each company involved as well as the environment and more. Stay tuned for the latest trends and ideas emerging from this supply chain consortium over the next few years.

Perhaps the common theme is to pay attention to collaboration opportunities and reverse logistics. There can be a significant hidden opportunity in this topic.

Why not focus attention and see what can be achieved with some common sense and collaboration?

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

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Which State Has the Most Manufacturing? The Answer Might Surprise You…

September 25th, 2019

According to an Industry Week article on the US 500: Top Manufacturing States, which state is #1 in terms of having the most manufacturing headquarters? California! Certainly, CA is not a manufacturing-friendly state in most places (although there is an initiative to create an advanced manufacturing consortium of excellence in the Inland Empire which is gaining support across the board). Manufacturers account for 10.93% of total output in the state and employ 7.2% of the workforce. Neither of these figures is #1 but the total output of $300 billion with an average of 1.3 million manufacturing employees does! #2 is Texas, followed by Illinois, Ohio and New York.

One of the reasons manufacturing is bucking the trends so far is that there are a vast number of consumers and companies in California, and in today’s Amazonian environment, rapid, customized deliveries are the norm. Thus, proximity matters. California is larger than all but 6 countries! The powerhouse of manufacturing is Southern CA. Additionally, California and specifically the Inland Empire is #1 in logistics in the U.S. According to research by a University of Redlands professor, logistics is at the center of what’s called an onion structure. It is the lifeline of the economy. Manufacturing co-locates or locates next to the logistics lifeline. Supporting services form the next layer of the onion, followed by all others such as retail, construction, leisure and hospitality.

What Should We Consider and/or What Impacts Could Arise?
For one, all this talk about “manufacturing being dead and gone to Asia” is obviously an exaggeration. In fact, we are starting to see executives look at reshoring as rapid delivery is of paramount importance. After all, everyone is scrambling to provide one-day delivery to keep up with Amazon, and B2B customers are expecting B2C service as well!

Further, we are seeing a SHARP increase in concern over high inventory levels to support these service levels. Some clients are concerned about the cost impact of tariffs and inventory levels and others are just becoming more focused on managing cash so they can better utilize existing resources to launch new products and services, invest in the business and more.

Since manufacturing is directly correlated to logistics, trusted advisors and other industries, it is worth paying attention. Start thinking about potential impacts such as the following:

  • Will your supply base change or move with the changing times?
  • Will capacity be available? Suppliers, transportation partners, manufacturing operations, equipment, skilled resources etc.
  • Are you agile so that you can meet changing conditions rapidly and without a significant hit to your customer experience or bottom line?
  • Do you have a skills gap? Please take our brief survey.

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.



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?



Manufacturing and Distribution Expert, Lisa Anderson, Confirms Inventory, Cost and Logistics Pressures in Supply Chain

July 12th, 2019

CLAREMONT, CA,  July 9, 2019 –  Manufacturing and Supply Chain Expert Lisa Anderson, MBA, CSCP, CLTD, president of LMA Consulting Group Inc. confirms that supply chain resiliency requires acute attention to inventory and cost pressures for manufacturers and distributors.  As predicted in her 2019 forecast, “Manufacturing & Supply Chain in the New Normal”, ever-changing customer needs, increased expectations, tight labor and transportation challenges are the ‘new normal’ and key issues for manufacturing and the supply chain.

Economic volatility and what Ms. Anderson calls the Amazon Effect – high customer expectations requiring rapid deliveries, accessibility and flexible, customized service – is putting pressure on costs and inventory levels.

“It’s like the perfect storm, tariffs, last minute changes, rapid delivery requirements and increased customer demands are challenging the supply chain. In turn, inventory levels are increasing.  Add in elevated labor and logistics costs and it gets tougher and tougher to control costs,” Ms. Anderson explains.

The result is an increased focus on improving inventory turns to accelerate cash flow, as well as an emphasis on re-shoring and near-sourcing.

“Aligning sales forecasts with operational capabilities is critical for manufacturers to thrive. In our 14 years of consulting, sales, inventory and operations planning (SIOP) has consistently delivered the strongest increase in business value. Leveraging best practices in demand planning and better aligning sales forecasts with operational capabilities will drive significant improvements in customer performance and the bottom line,” she says.

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 a result of her work with manufacturers and distributors and financial knowledge of factors affecting the bottom line, Ms. Anderson has been appointed by the Logistics Council of the Inland Empire Economic Partnership (IEEP) to lead the effort to develop a consortium for logistics, supply chain and advanced manufacturing success.

“Inland Southern California leads California in job creation and manufacturing growth. We are in an ideal situation to become a global leader in logistics, advanced manufacturing and export excellence. I’m very excited to be spearheading the effort with the IEEP to create a Consortium of Excellence to support the future of the industry and accelerate regional growth,” she says.

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

 



Lisa Anderson, Manufacturing & Supply Chain Expert, Sees Innovation & Collaboration Key to Advanced Manufacturing Success

June 7th, 2019

Manufacturing and Supply Chain Expert Lisa Anderson, MBA, CSCP, CLTD, president of LMA Consulting Group Inc. identifies innovation as a key driver in advanced manufacturing throughout 2019 and beyond. Driven by technology, AI and robotics, manufacturers are becoming more sophisticated in their response to changing customer needs.

“Customer expectations have changed as a result of what I call, The Amazon Effect. They want customized products with shorter lead times at ‘reasonable’ costs. This is a huge opportunity for manufacturers who make a commitment to reevaluate their processes, systems and the way they think about their product and customer” notes Ms. Anderson.

Successful manufacturers are turning their processes upside down from the inside out and strategizing new ways to proactively anticipate customer needs. “Manufacturers who choose to collaborate with their suppliers, as well as their customers, are making great strides.  From advanced customization and rapid response to distributive inventory, transportation and logistics, innovation and collaboration are becoming the cultural norm. In addition, there is a trend toward near-sourcing, vertical integration and agile strategies that proactively address these elevated expectations” she stated.

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. With the rise of e-commerce, increasing transportation costs and global risks, sourcing experts are re-evaluating their global supply chains. Logistics is gaining in relevancy as transportation costs increase, sustainability efforts expand and managing inventory becomes a hot topic, and, accelerating cash flow becomes more relevant.

The outlooks and attitudes are positive as manufacturers rise to the challenges of ever-changing customer needs and increased expectations, tight labor and transportation markets and rapid growth. LMA Consulting Group recently released findings of executive predictions for 2019:  “Manufacturing & Supply Chain in the New Normal” (available at no charge).  “Technology goes hand-in-hand with innovation and collaboration resulting in customer success stories and bottom-line results” Ms. Anderson 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. She recently was recognized as a Woman in Manufacturing by Inland Empire Magazine. 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