Tag Archive: manufacturers

Hurricane Dorian & Your Supply Chain

October 13th, 2019

 

Hurricane Dorian certainly took over the news as it threatened devastation. I’ve included YouTube from USA Today of the storm. People were evacuating up and down the east coast. Although the impact on people’s lives is certainly more important, there is a dramatic impact on businesses, as well. As logical as it sounds for east coast manufacturers, distributors and other businesses to be impacted while preparations are underway and the storm passes, it also had a profound impact on customers, suppliers and their extended supply chains. Are you prepared to navigate these types of disruptions?

What Should We Consider and/or What Impacts Could Arise?When I was VP of Operations and Supply Chain for a mid-market manufacturer, a hurricane devastated Greenville, North Carolina, the location of our largest manufacturing facility. Luckily, since the facility used to be owned by P&G, they evaluated risks as a normal course of operations and the facility was on high ground and not affected.  Yet, the facility was closed and nothing could get in or out. That situation alone proved the importance of thinking ahead to key risks, managing proactively and creating a resilient supply chain.

An east coast issue is no longer an east coast issue. For example:

  • Do you use the same carriers that might be tied up on the east coast?
  • Are your servers on the east coast?
  • Do you have any suppliers or customers on the east coast?
  • Do you have suppliers who supply other customers on the east coast? Or do your customers have other suppliers or customers on the east coast? Most likely YES!

The bottom line is 80% of my clients are impacted directly (suppliers, customers, transportation partners) and 100% are impacted through their extended supply chain. At a minimum, don’t wait to think about disruptions until they are imminent. Build agility, flexibility and resilience in your business as well as within your extended supply chain. 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.



The Power of WHY And Your Business

September 26th, 2019

I was always the inquisitive, and sometimes annoying, child in elementary school asking the teacher WHY as it pertained to certain math problems as I wanted to understand how and WHY that answer was correct or WHY my answer wasn’t. In most cases it was easy to understand and absorb but on at least 2 occasions my annoying questions of WHY uncovered mistakes in the grading book, much to the chagrin and embarrassment of my teacher. As I grew I applied the WHY to learning and competing in sports…WHY does that method produce better results than that method. So through my 40+ years of executive sales leadership and business ownership I’ve never lost site of how WHY can be used to succeed. So…let’s talk about how WHY may be the most powerful word you can apply to your business.

  • “WHY do customers buy and not buy our products or services?”
  • “WHY do we exist as a company?”
  • “WHY does our sales team continually miss their sales goals?”
  • “WHY did our competitor take away business from our top customer?”
  • “WHY do our employees like to work here?”

These and hundreds more can be the key to your success if you take the time to understand the power of the word WHY and how you can use it to identify business problems and uncover the solutions to those same problems.

Let’s take a quick look at the first question above: “WHY do customers buy our products or services?” Pretty simple and straight-forward, right? Well…in many cases it’s not that straight-forward and requires you to take a deep dive into every aspect of your business and not be afraid of what you might find. From your Business Value Proposition to understanding how each department impacts the Customer Experience, to how you manage warranty claims, to shipping orders on time, to how you handle delinquent accounts without losing the customer, to how your products or services can make or save money, to something as simple as the tone of your voice when you answer the phone and on and on and on. The Power Of WHY is the single most powerful word you can use in assessing you business.

Let’s look at how the Power Of WHY can be used to identify issues in your business.

COMPANY A – Manufactures plumbing products, have 5 key competitors and have declining sales the past 2 years. WHY are their sales stagnant? The CEO sits down his management team and works through a brainstorming and information gathering event they have called Operation WHY. Here are some of the questions and team answers:

 WHY do customers buy our products?

  • We have a vast line of products so customers can obtain most everything they need from a single source.
  • We’ve been in business 42 years and are known as an industry leader.
  • We ship 97% of all orders the same day.
  • Our products have low warranty claims.

 

WHY are our sales stagnant and not growing?

  • We haven’t stayed ahead of the competition who has developed some new products that our customers want and need.
  • Our company has lost it customer-first commitment.
  • We had turnover in Customer Service and have issues with attitudes and lack of relationship building.
  • Competitor A is targeting our key accounts and offering lower pricing on several of our key products.
  • Competitor B offers an extra 15 day terms to all their larger customers.
  • New account and pipeline development has declined.

Do you see some key trouble signs here? Absolutely…Competition is luring customers or part of their business away because they are In It To Win It. Company A has stopped being the industry leader in many critical aspects of their business and lost out to more aggressive and forward-thinking competitors.

Hopefully this exercise was a wake-up call for the management of Company A and they re-commit themselves to being the best in every aspect of their business as just having a great product is only a part of WHY customers buy from you. Like Lean Manufacturing Best Practices, you must constantly evolve and improve as a business and the Power Of WHY is a great place to start.

Another aspect of business is understanding who contributes to a positive customer experience. This is part of your “WHY do they buy from us analysis?”. Since People Do Business With People, the first exposure to your company may be the salesperson BUT…they aren’t the only ones who contribute to the overall Customer Experience. Anyone that interfaces with your customers such as the Receptionist, Customer Service, Delivery Person, Accounting, Technical Support, Operations and more are representatives of your company and your reputation is in their hands. You will succeed by making sure that everyone who interfaces with customers have the same commitment to treating customers as they would want to be treated themselves. If your first cultural business change is the Customer Experience then you are off to a great start.

WHY CHANGE? – WHY NOT?

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Manufacturing Expert, Lisa Anderson, Presents 2019 LMA Advocate Award to Executive Peer Group Leader, Ronald Penland

September 16th, 2019

Manufacturing Expert, Lisa Anderson, Presents
2019 LMA Advocate Award to
Executive Peer Group Leader, Ronald Penland

CLAREMONT, CALIFORNIA – August 7, 2019 –  Manufacturing and Supply Chain Expert,  Lisa Anderson, MBA, CSCP, CLTD, president of LMA Consulting Group Inc., presented the 2019 LMA Advocate Award to Ronald Penland, President, Renaissance Executive Forums.

“It is a pleasure to recognize Ron Penland with our 2019 LMA Advocate Award.  Ron and I both work with manufacturers and distributors.  We have and continue to collaborate for the mutual benefit of our respective clients and are also part of several service organizations” 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.

Business building, collaboration and experience is a hallmark of Ron Penland and his Renaissance Executive Forum groups.  “I really enjoy helping people grow their business.  From insights into managing the business, its growth and people to helping them find experts who can set a laser focus on a particular aspect of the business, I’m all about helping them grow.  Working with Lisa is always a pleasure.  She knows how manufacturers and distributors work and she is also aligned to help them maximize profits.  It’s an honor that she values our relationship” commented Mr. Penland.

Advocates, partners and centers of influence are key to LMA Consulting’s continued growth and success, as they work together to advance manufacturing and the global supply chain. “Over 14 years, I have learned that it takes more than hard work and intention to affect growth. It’s important for me to be connected with other professionals who can lend value to my clients and who can provide me with another perspective.  LMA Advocates help me do just that and more. I value Ron’s collaboration, as well as referrals for speaking engagements and client projects.  He is well-respected by his members who have received great value from his leadership.  I’m happy that he is also on my team” 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 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   
                                                         

                                                                    
                                                         

 



Manufacturing is on the Move

August 17th, 2019

 

Reshoring was at record levels in 2018! Manufacturers are starting to return as they see the total costs of offshoring combined with the rising costs in China and improved competitiveness of the U.S.

According to an Industry Week article by Harry Moser, almost 1400 companies announced the return of 145,000 jobs in the last year. This trend was starting to occur prior to the tariffs. Now, the tariffs are expediting the return. Manufacturers are also realizing they can gain a competitive edge with rapid customization close to their customer base.

Additionally, even in commodity products, companies are reevaluating how to remain competitive and diversified. Hasbro is the latest company to look at diversifying away from China. According to Industry Week, Hasbro, the largest toy maker globally, said that it planned to move from 75% to 50% production in China by the end of 2020. They are looking at Vietnam and India.

There is a transformation occurring. Executives are more concerned about relying on any one source of production (China), and are diversifying. Intel is reviewing its global supply chain.  And, there are rumblings that Apple and Amazon are working on a plan B.

What Should We Consider and/or What Impacts Could Arise?
Speed and agility are critical to thrive in today’s marketplace. Start thinking about how you can radically reduce lead times while accelerating cash flow (reducing inventory levels) and increasing profitability. It is no easy task . Yet, it is what is required to thrive in today’s Amazon-impacted world. What can you do to get ahead of this curve?

Like the big dogs from the Industry Week article, should you be thinking about diversification? Or should you be re-shoring? Or should you buck the trend and offshore while everyone else is re-shoring? There are many companies who would be in far better shape if they had taken that approach 10-20 years ago when every Board member wanted to see an increase in outsourcing. There are no perfect answers except to be thinking about these impacts on your industry, your supply chain partners and on your company so that you can take a proactive stance instead of a reactive one. What will you do to successfully navigate these waters?

Certainly, re-shoring, near-shoring and diversifying are topics related to creating a resilient supply chain. If you are interested in an assessment of your situation, contact us. You’ll find more information on these types of topics on our resilient supply chain series.



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