Tag Archive: near-sourcing

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



Manufacturing is HOT!

February 19th, 2018

Supply Chain Briefing

In the last week, not only have there been several articles about the positive strides manufacturing is making but it also has come up in several presentations we’ve attended such as the Inland Empire Economic Forecast.  

Here is a compilation of just a few of the HOT topics and trends:

  • There are plenty of customers and consumers are in the U.S. – with the Amazon Effect (customers expecting rapid deliveries, customized product and 24/7 accessibility), locating closer to the customer is advantageous.
  • Automation and technology are gaining rapidly – the more technology that makes sense in our factories, the less lower-skilled people required.  That makes U.S. factories more competitive!
  • High-tech resources are in the U.S. – the more technology and automation, the higher skill level required.  Those folks are close by.
  • According to Industry Week, the NAM Manufacturers’ Outlook Survey, 95% of manufacturers are are optimistic at their company’s prospects.
  • According to an economic forecast I attended by a professor at Claremont McKenna, manufacturing is vital to the economy and  jobs since it pays well, similarly to construction.  Clients are hiring.
  • Deregulation and tax reform are definitely positive for manufacturers and improve manufacturers’ competitiveness vs. other countries.
  • Harvey Mudd (the #1 engineering school in the U.S.) has seen a significant increase in the popularity of manufacturing careers.

    Manufacturing is attractive once again….

Are you ready to grow your manufacturing presence?

What Should We Consider and/or What Impacts Could Arise?
Let’s sum this up with the following question:  Are you ready to achieve scalable, profitable growth?  

There are many aspects to consider in answering this question:  

1) Are your people prepared?  Do they have the appropriate skills, education and experiences?  Are they cross-trained?  Are they prepared for growth?  Do you have enough people?
 2) Will your processes support 25% growth before hitting the wall?  50%?  100%?  How agile are you?  Would you have to throw people at it (typically because you haven’t prepared in advance) or can you address with a combination of people, processes and technology?
3) Will your systems and technology infrastructure support your growth?  This is one of the most challenging as it can appear overwhelming in terms of the cost to upgrade your system; however, it can also become pennies in the scheme of things if you cannot keep up and service suffers, let alone margins suffer.  Also, are you considering new technologies and automation to keep your costs in line?
4) Are you thinking through in-sourcing, outsourcing, near-sourcing and keeping all of your options open?  It is rare that I run across a client considering both in-sourcing and out-sourcing simultaneously but it just might make sense….
5) Are your finances in order to support growth?
6) Are your supply chain partners and trusted advisors ready for growth?

Gather your team and start discussing these topics because it is coming!

 



The Latest Trends

January 26th, 2018

I spoke at APICS San Fernando Valley a few days ago on the latest trends and what’s in store for 2018.  We had a great discussion on topics ranging from people (or lack thereof) to technology.  

For manufacturers and distributors, a few of the highlights included:  

1) The Amazon Effect – the customer experience is the ultimate!  

2) Near-sourcing – I go beyond the mainstream and am boldly saying “Southern California is “the” place to be!  

3) The skills gap – if I could only convey how much trouble several clients are having finding the right fit for open positions…..!!!!!  

4) Technology (with lots of details behind this one!) and a few more.  

Have you thought about what trends are most likely to impact your business?

One tip to implement this week:
I also attended a Board meeting with a client a few days ago, and this topic is quite relevant.  Staying on top of what is likely to impact your business gives you the clarity of priority!  

Start by taking a few minutes with your top team to brainstorm.  Give a few customers a call to find out what’s happening with them.  Check in with a few of your key suppliers.  Drop in on your trusted advisors and attend a trade association and/or alumni networking meeting.  You’ll soon be well-versed to come up with what is trending AND relevant to you.

Once you have thought through the trends most likely to impact your business, it might make sense to think about how to transform these impacts into opportunities.

Profitable and scalable growth is the common thread among every single one of my clients – how can you leverage these opportunities to aid in creating scalable, profitable growth?   

Take a tip from the LEAN toolkit and involve your people.  You might be surprised how many opportunities will emerge if you put ALL the brain power in your company on thinking about how to do this.



Considerations to Evaluate Your Business Model for 2018

January 11th, 2018

Do you Evaluate Your Business Model?
Most of us are so busy on a daily basis we don’t have time to think about our business models.  It is the rare client that questions their business model, let alone continually modifies it for success.  Do you question your business model on a yearly basis?

Why is it Important?
There are many reasons to re-evaluate your business models on a frequent basis.  How many of these impact your company?  

  1.  The global economy – Well, if you don’t see constant movement and change in the global economy – which is impacted by countless numbers of events and triggers, some predictable, some uncontrollable (such as the California fires and related impacts) and some multi-faceted and complex – we can’t imagine what bubble you are living in (and sometimes wish we could join you!).
  2.  Demographics Are you thinking about how the baby boomers are impacting your company?  No matter what you think, they are the largest generation ever and will have a profound impact.  Have you thought about what it means?
  3.  Social mores (customs and manners) – What is society thinking and how will it impact your company and personal career?  Do you think we are going back to dressing up in the work place or wearing jeans in a casual environment?  It was just a few years ago that virtual teams was the hot topic but millennials seem to enjoy engagement.  Speaking of millennials, do you think the environment and sustainability are important?  You bet!
  4.  Technology – Have you thought about the changing nature of technology, the latest trends and what is likely to impact your company?  Technology has the ability to obsolete entire industries if you have your head under a rock.  It also has the potential to provide an enabler to success if you keep your eye out.
  5.  Globalization – Not only are our devices connected (internet of things) but our countries are connected in ways you might never think about or take into consideration.  Certainly, currency differences are relatively easy to understand, although not to predict.  Yet, there are vast numbers of connections between countries, economies, politics, natural resources and much more.  Have you thought about what is changing in the globalization landscape?  For example, ten years ago, no one was fired for outsourcing to China (whether it made any sense or not).  What is going on today?  Near-sourcing is certainly a more relevant trend but only when considered in the global view.

Whatever your business model, it’s important to take time to evaluate and assess so that you are ahead, not behind the curve. Where are you?



Samsung Expanding Manufacturing in the U.S.

July 12th, 2017

Samsung announced that it is expanding manufacturing operations and its commitment to American consumers, engineers and innovators. They are putting money where their mouth is by investing $380 million with the plan to hire 1,000 workers for this new state-of-the-art facility that will manufacture appliances. This facility will take over manufacturing being done in Mexico. In this case, near-sourcing to customers in Mexico isn’t enough; they want to be even closer to customers, engineers and innovators!

manufacturing in the U.S.Manufacturing in the U.S. AND locating manufacturing to the U.S. is making sense! In Samsung’s case, there is a commitment to sourcing and collaborating closely with the customer in combination with incentives to relocate. Similarly, bicycle producer Kent International is re-shoring. In addition to the critical nature of customer proximity, offshoring costs were rising significantly (materials, labor, transportation and currency); thus, Kent decided to commit to an expansion of manufacturing in the U.S. Are you keeping an eye on your customers, costs and cash flow?

What Should We Consider and/or What Impacts Could Arise?

Samsung and Kent International are two examples of firms leading the way with a commitment to manufacturing and the U.S. How often are you re-evaluating your strategy and keeping a pulse on your strategy? A once-a-year review no longer suffices! Similarly, a 5-year strategic plan is a waste of energy in most cases. Does anyone know what will occur 5 years out that prohibits making strategy an ongoing priority?!

In addition, manufacturing is definitely on the rise! With that said, let’s not assume it will return fully to the “glory days” and start overreacting in the opposite direction. For example, folks outsourced because it was popular at time (sometimes with only a cursory review), whether or not it actually made sense from a total cost AND total customer experience perspective. As the U.S. and individual states become more competitive and technology and automation continues to evolve, change will occur. Don’t be caught off guard — what impacts will these changes have on your business? Are you prepared for them — or, better yet, are you in front of them so you can be proactive instead of reactive?