Tag Archive: opportunities

Paying Attention to Reshoring & USMCA?

July 18th, 2020

 

As supply chain has gained in prominence in the media with the increase in tariffs and the many challenges associated with coronavirus, reshoring has become of keen interest. Surveys are showing it is more than just a passing interest with executives. Instead, it is in motion! Listen to my video on this hot topic.

What’s Happening Video Series

Supply Chain: Reshoring

In addition, the USMCA went into effect as of 7/1. Here are a few of the key components:

1) Automobiles must have 75% of their components manufactured in the U.S., Mexico or Canada to qualify for zero tariffs.
2) 40-45% of automobile parts must be made by workers who earn at least $16/hr by 2023, and Mexico agreed to pass new laws that give greater protection to workers.
3) U.S. farmers gain more access to the Canadian dairy market.
4) Intellectual property and digital trade provisions.
5) Sunset clause after 16 years with a review every 6 years.

What Should We Consider and/or What Impacts Could Arise?
As we are all very distracted with everything going on around us, reshoring and USMCA will change the global supply chain scene. They will impact almost everyone in some way or another. Have you figured out what will change and what you should do differently, if anything? If it doesn’t impact you directly, will it impact a customer, supplier or transportation partner? How will that impact you? Lastly, are there risks and/or opportunities for you to consider?

Have you thought of doing an assessment of your global supply chain footprint? What risks exist? More importantly, what opportunities exist with changing conditions? 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 emerge from coronavirus and thrive in 2021.

Please share your stories, challenges, ideas and successes. Contact us and please join in our free webinar series and listen to our archives.



The Value of Diversity

July 5th, 2020

Diversity has always been core to success. Are you gaining different viewpoints? It has certainly been proven that deliberately bringing diverse viewpoints into projects and teams will lead to greater levels of success. Men will have different perspectives than women. People with different nationalities and backgrounds will bring different viewpoints into the mix. People of different ages will have differing priorities and opinions. Are you bringing diversity into the conversation?

I can definitely tell you it isn’t as easy as it sounds. I didn’t even realize I was the only woman (and also the youngest person) attending the Board of Directors meetings when I was VP of Product Supply until one of my team members brought it to my attention. You’d think it would be hard for me to miss! I also remember a time during my consulting career when I really enjoyed participating in a group. We had a good working relationship and were quite successful. A potential new member came onto the scene. My first thought was “NO!”; however, I agreed, and she turned out to add great diversity, and the group was better for it. Good thing I ignored my inner voice!

One Tip to Implement This Week:

Simply pay attention for opportunities to insert diversity into your projects, events etc. You’ll be surprised by what you miss while focusing on the task at hand. Again, during my career with APICS Inland Empire Chapter (Association for Supply Chain Management), I missed the lack of diversity on our panel. Our audience noticed and commented in our survey. In this case, it was an all male panel. Our chapter has held 15 executive panel and networking symposium events, and this panel was the ONLY panel without a woman. Of course, over time, we have improved upon this metric in addition to male/female (although that can sometimes be tough on its own!) with panelists from multiple countries, backgrounds, age groups, work backgrounds (in addition to manufacturing and distribution, we’ve added healthcare, technology and more), etc.
Start by simply paying attention and giving a diverse group a chance. Be open to the idea, and you might just gain significant value.
Stay safe & healthy.


Immediate Strategy

May 7th, 2020

Do you want to be Amazon or Sears? Sears used to be the Amazon of its time, but they failed to change with the times. There is little life left in this former powerhouse of retail. On the other hand, Amazon continues to evolve and is clearly doing quite well in these trying times. In fact, our clients are experiencing growth across the board in only one category – e-commerce. Amazon continues to rule the day!

As I state in my eBook, Future-Proofing Manufacturing & Supply Chain Post COVID-19, if you want to be more like Amazon, you will rethink strategy but NOT like you might think. It should not be a lengthy process that looks across multiple years. Instead, create an ‘immediate strategy.’ What does that look like? Read about an immediate, 3 and 9-month strategy in the eBook:

  1. Immediate Strategy: Focus on establishing immediate priorities, assessing risks and understanding your customers, suppliers and other partners.
  2. 3-Month Strategy: Focus on how to keep moving forward and increasing value
  3. 9-Month Strategy: Focus on how to redesign to take advantage of the opportunities

As you think through the strategies outlined and determine your path forward, please keep us in the loop. We are interested in your journey, what works, and what pitfalls to avoid so that we can share insights and ideas. Don’t worry. We will protect the innocent; however, keep in mind one of the tenets of the eBook is to fail forward with innovation. Those who innovate will have a unique opportunity to sail past the competition as the world creates a new normal over the next year. If you’d like to discuss your strategy, please contact us.

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

Coronavirus and the Economic Impacts
The Strategic Use of Data



NOW is the Time to Invest in Employees

January 13th, 2020

Are you investing in your employees? If you have employees who want to do a good job but who don’t have the tools and skills to accomplish this goal, you’ll end up with frustrated employees who are not engaged. What percentage of your employees do you think are in this position? In our client experience, 70% of employees fall in this category!

Frustrated and not actively engaged employees do not deliver results. Not only are you wasting incredible talent, but you have unhappy employees to boot. There are countless statistics that tell us the dramatic impact of unhappy employees. According to a SHRM article, highly engaged employees were 5 times less likely to have a safety incident. In a separate example, increased employee engagement at Caterpillar saved the company millions in decreased attrition, absenteeism and overtime. It is certainly noteworthy!

According to our featured interview with the EVP of Operations at Fender Guitar, investing in employees in all seasons is key to success. Listen to our interview and how many of the core takeaways relate to investing in employees. It should give us pause to re-think our focus on all sorts of programs that don’t seem to deliver results. Instead, we should focus on our employees.

So, what are some ways we can invest in employees? Here are a few we’ve seen to deliver exceptional value:

  1. Gratitude – A simple thank you can go a long way!
  2. Specific feedback – Although all managers seem to fear providing feedback, the best employees value constructive feedback as well as genuine and specific positive feedback.
  3. Assign a mentor – This can bring meaningful and profound change and results. People learn by watching examples and trying new ideas with immediate feedback. That is what mentoring is all about when done well!
  4. Training programs – Building skills and gaining fundamental concepts are the essential building blocks of success. For example, for supply chain and operations professionals, the Association for Supply Chain Management’s APICS certificiations are best in class.
  5. Special programs for the “best of the best” – Instead of investing in our under performing employees by default, why not take the proactive approach and put together a special program with special experiences and training opportunities for your stars?
  6. Opportunities to try new approaches – One of the most important pieces to invest in employees is to allow employees to try new ideas. We must expect failure in our quest for success. Thus, it will require an investment of time, resources and potentially resolving the consequences of failures along the way.
  7. Celebrate success – Lastly, we should celebrate progress and success. As obvious as this seems, it isn’t commonplace.

Investing in employees is the best way to future-proof your manufacturing and supply chain. In fact, it is also the best way to future-proof your technology road map. Perhaps it is time to re-think your approach to investing in employees AND automation. These are not separate concepts as robots and autonomous vehicles will not work separately from human capital and talent. The most successful executives understand that the secret to success is how to invest strategically into both.

If you’d like an assessment of where you should invest (time, resources, money) to maximize your employee engagement and your business value, contact us if you’d like to assess your situation.

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

How to Keep Your Team Engaged

Do You Treat Your People as Critical Assets to Your Success?

Profit Through People



Why Join A CEO Group?

December 6th, 2019

We recognized Ron Penland as our 2019 LMA Advocate. Ron has added value to our business in many ways over the years ranging from insights on what’s relevant to manufacturers and distributors and their bottom line to valued connections. Since Ron runs CEO groups, I thought it made for a good segue to discuss the value of interacting with peers. Are you drinking your own Kool-Aid or do you get push back when you need it?

You might want to consider the unpleasant idea of gaining input even when you don’t want to hear it. The proof is in the pudding. Certainly, Ron’s CEOs have been FAR more successful than even the average CEO group as his CEOs get 2 to 3 times the multiples for the sale of their businesses when compared to the industry averages. That alone is noteworthy. I joined one of his groups simply to better understand what is on our clients’ minds. Of course they tell me what relates to our project but if I understand more about the broad spectrum of issues, I can ensure LMA provides an even more powerful return. That is an important win-win – the more value we help our clients create, the better for both of us!

Do you have any venues for interacting with top notch peers? After all, just interacting with someone in a peer position willing to talk to you could be even worse than being a hermit! Kash Gokli, head of Harvey Mudd’s manufacturing practice and Director of their clinic program and I gather CEOs a few times a year to help foster a community of executives and to discuss timely topics in our Harvey Mudd executive roundtables. Of course, we don’t go into depth and specifics of company performance like you do in a CEO group. Yet, it can add definite value. Contact us if you are interested in joining us.

There are other options as well for building these invaluable connections. Think about volunteering for a community benefit to provide expertise. In the Inland Empire and surrounding areas of Southern CA, we are starting a consortium for advanced manufacturing and supply chain success. We are currently looking for manufacturers and exporters who would be interested in being involved from the ground up in an advisory capacity. Please contact the Inland Empire Economic Partnership (IEEP) or me if interested. And a local manufacturing executive asked me to participate in CAIEDEC which is an organization supporting export. CEOs are involved in both of these initiatives and these groups are the first to pop to mind.

There are plenty of opportunities to gain ideas, insights and push back. Are you seeking them out? If not, why not? Wouldn’t you like to exceed corporate objectives to fast-track your career or sell your company for double the industry average? Pick just one item to test this month, and results will follow.