Tag Archive: logistics

Automation or Autonomous?

August 16th, 2020

While leading a panel “Building Resiliency in the Supply Chain” with gurus from Georgia Tech, the leading experts in global logistics and associated research, several intriguing concepts arose.

My Association for Supply Chain Management group led a series of webinars on “Navigating through Volatility” including discussions with several logistics experts from distribution, the ports, transportation, technology and more. Many strategies for success arose during these sessions.

And, last but not least, both my top-notch trusted advisor network, ProVisors and our clients have brought strategies to light. A a result, it seemed prudent to share a few highlights.

Automation vs. Autonomy
Automation is definitely on the rise as organizations determine how to thrive post COVID-19. Statistics show that the automation market is expected to almost double in the next 5 years, and experts show that plans to automate are being accelerated. For example, the automation expected in the Inland Empire in the next 10-15 years will likely be compressed into the next five. On the other hand, automation isn’t all its cracked up to be! For example, when one part of the production line breaks down, you could end up with a pile up of product and waste at the bottleneck. On the other hand, will you be the last person typing on a typewriter? What are your automation plans?

The Georgia Tech experts made the case that automation is analogous to the typewriter. The new concept is autonomous so that machines and vehicles can operate independently of human control or supervision. Could these autonomous vehicles take on roles not previously possible, practical or cost effective? Almost all modes of transportation are candidates for autonomous vehicles. We typically think about trucking convoys, cars, drones and sometimes aircraft but are you also considering the impact of autonomous fork lifts, container ships, high speed trains, cranes, last mile delivery, cargo resupply and more? With the dramatic rise in e-commerce, autonomous drone resupply could be quite the win.

What are the Impacts?
Client examples abound. A small aerospace manufacturer automated a critical production process. Prior to automating this process, the area was a constant bottleneck. Work-in-process was stockpiled in front of the work station as high-skilled workers tried to keep up with the incoming flow of material. They ran as much overtime as feasible to try to keep product flowing to the next process step so that they could meet the customers’ ship date, but it was a never-ending battle with no end in sight. After automating the manufacturing process, the high-skilled resources set up the machines to run throughout the night autonomously. Suddenly, our client was running a three shift operation with the same resources, and customers didn’t experience delays. There was upfront investment in machinery and equipment as well as setup and education.  However, it paid back almost immediately with increased output and sales.

From a logistics point-of-view, WMS systems are gaining traction in the current environment. There are countless options for automation, as well as autonomous capabilities within the warehouse. For example, clients have installed conveyor systems which connect directly to the WMS systems and shipping systems which connects to ERP systems to manage order fulfillment processes. With the rise in e-commerce (and the number of small packages and associated labor requirements), automation can be even more relevant to the bottom line. In fact, there are several options to replace pickers with automated processes. The future will look to automation and autonomy. Will a drone resupply trucks that delivering e-commerce orders?

What Should We Do?
Get up to speed on the possibilities and potential of automation, as well as autonomous machinery and vehicles. As you hear about additional examples, think through the concepts, look for additional applications and brainstorm with colleagues on how these concepts could help your company and/or industry. The best ideas come from those who are willing to voice their ideas, test them under controlled conditions and move forward no matter the obstacles. Create this type of environment at your company, and soon suggestions for automation and autonomous processes will rise to the surface.

We discuss these types of strategies in our eBook on Future-Proofing Manufacturing & Supply Chain Post COVID-19. Additionally, follow IEEP, APICS Inland Empire and LMA Consulting as we communicate progress on the consortium for logistics and advanced manufacturing success Check out our articles and webinars, and contact us if you’d like to brainstorm these concepts further.

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Drones are More Than a Pipe Dream

The Strongest Link in Your Supply Chain



Why SIOP is Critical to Thriving During & Post COVID

August 12th, 2020

COVID-19 has disrupted every business. Some are growing far faster than supply can keep up, while others have dropped like a rocket. Still, others have almost identical dollar volume yet double the number of orders at half the order size, creating significant disruption in warehousing, shipping and transportation. And yet others might have less severe changes in volume with certain customers thriving and others dormant – all creating mix disruption.

The supply side is no different. Previously reliable suppliers can be suspect at best. Previously high-quality, low-cost suppliers have skyrocketing costs as airfreight is required to keep customers’ satisfied. Risks have increased dramatically with the uncertainty of cash flow and long-term ‘institutions’ of the industry are disappearing overnight. With this high level of disruption across both demand and supply, misalignment has run rampant, costs are increasing and customers are frustrated.

SIOP (Sales, Inventory Operations Planning) Cuts through the Disruption
You know the story. The busier we get, the less we have time for improvement yet we spend double or triple the time to achieve the same outcome because we can’t set aside the time required to start or maintain an improved process. I’ve been there and am familiar with the excuses! With that said, STOP and look around you. You are on a hamster wheel with no end in sight. Implementing SIOP, even if simplified to what is achievable under current conditions, cuts through the disruption to stabilize your supply chain.

What is SIOP?
Quite simply, SIOP is about finding a way within your environment to realign demand with supply. You have to start with demand or you will forever chase your tail. To simplify the best practices across industries (aerospace and defense, building and construction products, food and beverage, healthcare products), geographies, company sizes that apply to manufacturing, supply chain, logistics and service organizations with supplies, you should focus on these keys:

  1. Proactive management of demand: Talk with customers.  Find out about your customers’ customers and every customer type within your channel until you get to the end customer (consumer, business using your product, patient). Ask about and observe evolving customer needs. Review historical trends.  And, put a stake in the ground with a starting point forecast. Outcome: typically 12-18 month rolling forecast
  2. Proactive management of internal supply: Talk with your internal teams. Understand changing capacity and staffing levels (manufacturing, warehousing). Realign temporary and contract assistance.  Understand your resiliency to changing demand (overtime, increasing staffing, efficiency improvements, maintenance and engineering support, etc.). Realign with R&D/product development requirements and your support resources. Outcome: typically a capacity plan (production, storage), high-level staffing plan and key decision plan (make versus buy, product/customer transitions, machinery and equipment plans) for at least as long as your longest lead item – 12-18 months.
  3. Proactive management of supply partners: Talk with suppliers. Find out about your suppliers’ suppliers capabilities, their likelihood to meet schedules, ability to meet cash flow needs and risk of shutdown (whether temporary due to COVID-19 or another disruption or permanent (going out of business)). Outcome: typically a sourcing and supply plan by key suppliers/ commodities for at least as long as your longest lead item – 12-18 months.
  4. Proactive management of your logistics network partners: Talk with transportation partners, brokers, 3PL/ 4PL partners and understand the extended supply chain, potential risks, possible options as disruptions occur, etc. Outcome: typically a logistics network and goods movement plan for at least as long as your longest lead item – 12-18 months.
  5. Take stock of inventory: Do you have strategic stock of critical items? Items without a robust backup supplier? Items in countries of higher risk of shutdown? Are you so busy running in circles that your slow moving and obsolete is expiring under your nose? Outcome: typically an inventory investment plan for 12-18 months.

Pre-COVID-19, clients went through a SIOP cycle with a monthly cadence. The typical processes included:

  1. Demand review meeting
  2. Supply review meeting
  3. Alignment of demand and supply (not always requiring a meeting)
  4. Inventory review meeting (often incorporated into the supply meeting)
  5. Executive SIOP review meeting (in some cases, quarterly made sense)

During COVID-19, we have taken these same concepts and adjusted to changing conditions. No two clients are alike in what makes sense to rapidly realign demand and supply and maintain this alignment.  Yet, there is one item in common across the board:

A weekly alignment on just the critical customers, internal resources, suppliers, logistics network partners and review of inventory

Read more about SIOP and related concepts in our eBook, Future-Proofing Manufacturing & Supply Chain Post COVID-19. If you’d like a rapid assessment and recommendations for your situation, please contact us.

 

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Future-Proofing Your Supply Chain

Eagle Eye Strategic Focus



What’s Going on in Logistics & the Upcoming E-commerce & Logistics Summit

July 30th, 2020

The most recent webinar in our APICS Inland Empire webinar series featured Frank Moullet from Shamrock Foods talking about distribution, food service and how they’ve navigated through COVID-19. We had an engaging discussion on how they made a sharp right turn pivot early on and why people remain critical to success.

 

       

The world is changing rapidly. E-commerce is rising rapidly as consumers gain comfort ordering for home delivery instead of venturing out to the store. Of course, this is creating ripples throughout the supply chain. Distributors are re-thinking inventory strategy. Almost every executive is realizing that agility and resilience are vital to success. According to a National Association of Manufacturers’ recent webinar with CFO and COO experts, automation is top of mind, as well.

Join me on July 22nd as I moderate a panel discussion, Building Resiliency in Supply Chain at the E-Commerce & Logistics Summit. There is a special rate for APICS members for $30. Use special rate code BODshares708.

What Should We Consider and/or What Impacts Could Arise?
In manufacturing and logistics, we have been quite preoccupied trying to keep up with volatile demand and supply swings, let alone how to do that keeping profitability and cashflow intact. So, it makes good sense to take a few minutes and take a step back to listen to folks who have found paths to success and/or are piloting/researching new concepts that could “work” in your industry or company. I definitely recommend listening to our APICS webinar with Shamrock Foods Branch Operations Manager Frank Moullet and/or join us at the E-commerce and Logistics Summit.

Additionally, keep abreast of what is going on in your industry, your profession and within the end-to-end supply chain that will impact you. Read industry magazines, keep an eye out for noteworthy news and key trends. We address these topics as well as many others in my eBook,  Future-Proofing Manufacturing & Supply Chain Post COVID-19. Gain ideas and strategies to successfully emerging from coronavirus and thrive in 2021. If you are interested in doing an assessment of your global supply chain footprint, associated risks and opportunities and how to navigate changing conditions, please contact us.

 



Manufacturing Expert, Lisa Anderson, Releases Manufacturing and Supply Chain Predictions for 2020

March 16th, 2020


Manufacturing Expert, Lisa Anderson,
Releases Manufacturing and Supply Chain Predictions for 2020

 CLAREMONT, CALIFORNIA – March 12, 2020 –  Manufacturing and Supply Chain Expert,  Lisa Anderson, MBA, CSCP, CLTD, president of LMA Consulting Group Inc., has released, Future-Proofing Manufacturing & the Supply Chain, Manufacturing and Supply Chain predictions for 2020.  Ms. Anderson asked business owners, executives and industry professionals for their insights and predictions for the state of business in 2020.  From a wide range of industries like food and beverage, building products and logistics to specialties such as trade, sourcing, technology, human capital and economic development, the experts represent a wide range of businesses in size and complexity.

“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 provide,” Ms. Anderson commented.  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 influence of additive manufacturing artificial intelligence, IoT, robotics and blockchain, technology can pay a pivotal role.  Yet, technology is not the sole answer.  “It’s the smart application of the appropriate technology by top talent, aligned internally and across the extended supply chain who follow a well-thought out strategy that wins the race,” she said.

While experience can direct future activity, it is important to be prepared for the unexpected. “The hyper influence of the coronavirus has radically disrupted supply chains.  This puts a spotlight on the need to proactively future-proof the supply chain.  It’s more than focusing on vendors and the source of supply.  It’s the integration of all of the pieces from raw materials through delivery and measuring the customer experience along the way with backups in place along every facet of the supply chain,” she concluded.

Ms. Anderson is an active member of the Inland Empire Economic Partnership, was recently appointed to the Department of Commerce, District Export Council of the Inland Empire and is sought out by organizations such as Oracle for her manufacturing and supply chain insights. Future-Proofing Manufacturing & the Supply Chain can be downloaded here.

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

 



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.