Tag Archive: logistics

Special Report: 2020 Predictions

March 12th, 2020

We received such a positive response to last year’s predictions report that we wanted to add to that value in 2020. It was an exciting process to see what CEOs, executives and thought leaders of manufacturing and logistics organizations think about the current trends, what’s coming, and most importantly, what to do to get ahead of the curve.

A special THANKS goes to our contributors. We’ll be discussing these topics much more in our March newsletter to build upon their predictions and ways we can THRIVE amidst the ambiguity.

For our Profit through People subscribers, we are pleased to provide a direct link. Feel free to forward to your colleagues and friends by sending them our download link.

A Few Highlights
Please pay special attention to my introduction (page 2). I believe we are at a critical juncture in our field. To succeed in 2020, manufacturing and logistics organizations need to become agile, proactive and even disruptive, to merely survive. The most successful organizations are going to do a deep dive into human capital, technologies and strategies that will achieve the trifecta – a superior customer experience, profitable growth and improved working capital, simultaneously.

With the promise of additive manufacturing, artificial intelligence, IoT, robotics and blockchain, technology can play a pivotal role.  However, technology alone is NEVER the answer. Instead, it is the smart application of the appropriate technologies by top talent, aligned internally and across the extended supply chain and following a well-thought out strategy that wins the race.

I thought the insights, predictions and recommendations from our experts are worth noting – and taking action! We were careful to gain perspectives from manufacturing and logistics executives and thought leaders, spanning industries (from food and beverage to building products and logistics), specialties (trade, sourcing, technology, human capital, economic development and more), and size and complexity (from family-owned to private equity to large, complex organizations). I’d love to hear your feedback and areas you’d like to deep dive further.

We will continue our webinar series with future-proofing topics and thought leaders, as well as our video series of timely topics such as the coronavirus. We will continue to explore these topics in our blogs and newsletters, as well.

Please contact us if you’d like to discuss your situation and how you can future-proof your manufacturing operations and create a resilient supply chain.



Future-proofing Your Supply Chain

February 21st, 2020

Disruptions abound in supply chain circles. Just consider any of the following recent events: the tariff war, global unrest, the Coronavirus, natural disasters such as the volcano in the Philippines, the Hong Kong protests and more.

We have never had a client that could claim that 100% of the extended supply chain (from suppliers’ suppliers to customers’ customers) was inside the U.S. So, we have to be prepared to navigate these types of disruptions and the related impacts.

Disruptions certainly go beyond your physical supply chain. What about your human capital, technologies (accompanied with processes) and strategies? Refer to our article on future-proofing your skills gap and assess which risks might be on the horizon in your industry.

When it comes to technologies, there is no doubt that emerging technologies are gaining steam and are starting to transform supply chains. Just consider the application of collaborative robots, automation, RPA (robotic process automation), artificial intelligence, IoT, blockchain, and predictive analytics to name a few. Big name companies are dropping big dollars into these technologies. When thinking about strategy, remember strategy is no longer a multi-year exercise. We must be thinking in terms of strategic sprints. Who knows what will happen beyond a year out!

Several high-level categories should be assessed as you think about your supply chain:

  1. Sourcing – Are you sourcing from China? Is this a viable path forward to source 100% from China? There are increased risk factors to consider. Listen to an interview I conducted with John Tulac, international business attorney, on future-proofing and doing business with China. It is time to reevaluate your supply chain footprint.
  2. Logistics – There are significant disruptors transforming this industry, ranging from e-commerce and the the Omni-channel to robotics, additive manufacturing and the digitization of the supply chain. If you aren’t incorporating these impacts in future-proofing your supply chain, you will be left in the dust. These are concepts of focus for the consortium for logistics success in the Inland Empire to enable companies to stay informed and keep up with the fast pace of change.
  3. Manufacturing – Industry 4.0 is transforming manufacturing and changing the landscape. It will be a pivotal year that separates the winners vs the losers as advances are made. See what the National Association of Manufacturers’ Leadership Council sees as critical issues
  4. Demand & Supply – There is no doubt, there is a keen interest by business owners, executives and private equity leaders on creating predictable demand and forecasting sales. The more we understand our demand plan, the better our operational performance, supplier performance and customer performance. Read about SIOP (sales, inventory, operations planning) and how it can help future-proof this area.
  5. Inventory – As the disruptions abound and executives fear a slow-down, the proactive management of inventory and advanced collaborative programs are gaining in relevance. Pick up some tips and strategies in our recent article ” Inventory Management as Fashionable as Automated Intelligence for Distributors” for ACHR News.
  6. Metrics & Predictive analytics – Keeping a pulse on performance should remain a top priority while forecasting what will be needed.

Getting ahead of the curve might be the only avenue to success. Consider creating a resilient supply chain and future-proofing your supply chain. Stay tuned and read more about it, and If you are interested in discussing a supply chain assessment, please contact us.

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Amazon Kicks off the New Year by Creating Disruption

January 30th, 2020

According to a Bloomberg article, Amazon kicked off the New Year by creating disruption. They have abruptly stopped buying products from some of their wholesalers, looking for ways to bypass wholesalers or push the cost to down the chain and increase profit. If your business depends on Amazon, hopefully you have been future-proofing your manufacturing and supply chain operations.

If not, you might be in a world of hurt! With that said, if you are heavily dependent on any one customer or supplier, you are in a risk-ridden situation.  It makes me wonder whether FedEx’s move away from Amazon was brilliant or whether they took on too much risk moving away from Amazon. Listen to a recent video where I refer to this topic. Are you taking these types of strategic questions into account in your 2020 plans?

What Should We Consider and/or What Impacts Could Arise?
Although the impact is obvious to wholesalers cut off by Amazon, the impacts are more widespread than that. Will Amazon be able to go direct to manufacturers? Will they be able to increase profits by squeezing their supply chain without impacting service? What happens, if that isn’t as easy as it appears? Will customers just wait? Are they getting too big or will other e-commerce players have an opportunity? It will be interesting to see.

In addition, no matter if you are related to this industry or not, it will impact you! If new players become involved, the manufacturing and logistics footprints will evolve. Will you be ready for opportunities? Undoubtedly, we will be impacted by changes in logistics infrastructure, rates and service requirements. The question is whether we will let this happen to us or if we will proactively address it. It might be too late to future-proof against this particular move by Amazon, but there will be countless more changes coming by Amazon as well as many other disruptors. Will you be ready to navigate changing circumstances and market conditions for a positive customer and bottom line impact or not?

At a minimum, continually re-evaluate your supply chain road map and think through related impacts. These topics certainly relate to our new LMA-i, LMA-Intelligence series including the Amazon Effect, the Resilient Supply Chain and Future-Proofing and contact us if you’d like an assessment path-forward plan to accelerate your bottom line and customer performance.



Will Amazon Pass UPS & FedEx?

January 26th, 2020

According to a CNBC article, Amazon is already delivering half of its packages. It appears that Amazon is on target to pass by FedEx and UPS. They have had distinctly different strategies. FedEx curtailed its contract with Amazon in early 2019, and Amazon just retaliated by not allowing 3rd party sellers to ship via FedEx. On the other hand, UPS is doubled down with Amazon. Which will turn out to be better in the long run? And, as we know, USPS has been delivering packages for Amazon behind-the-scenes. Could they come out on top?

Or will Amazon just crush everyone? In recently touring the Ontario airport (the powerhouse in package shipping), it is clear Amazon has a long way to go to catch up in air freight but they are also known to speed by competitors. Amazon is slowly making inroads to ocean shipping as well. No matter who you think might win this race, if you ship or receive anything, you should pay attention!

What Should We Consider and/or What Impacts Could Arise?
Simply think about Sears. They were Amazon prior to Amazon entering the scene. Unfortunately, they didn’t keep up with changes occurring, and they are largely out of business. That annoying but not worrisome competitor might just speed by you if you aren’t staying relevant!

Additionally, from a supply chain and logistics point-of-view, there are substantial impacts. With the sheer relevance of the last mile, transportation infrastructure, customer perceptions, technology advancements and much more are becoming relevant. Undoubtedly, no matter your industry, it will be impacted since everyone relates to logistics. Not only logistics, but many industries relate to oil and gas prices or would be impacted by delays in materials etc. The impacts are widespread and substantial. Have you thought through your strategy and positioning based on these factors?

At a minimum, continually re-evaluate your supply chain road map and think through related impacts. These topics certainly relate to our new LMA-i, LMA-Intelligence series including the Amazon Effect, the Resilient Supply Chain and Future-Proofing and contact us if you’d like an assessment path-forward plan to accelerate your bottom line and customer performance.



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?

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