Tag Archive: priorities

Manufacturing Expert, Lisa Anderson, Predicts Proactive Approach to Demand and Diversification of Supply is Key to Future-Proofing Manufacturing and the Supply Chain

May 27th, 2020

CLAREMONT, CALIFORNIA – May 27, 2020 –  Manufacturing and Supply Chain Expert,  Lisa Anderson, MBA, CSCP, CLTD, president of LMA Consulting Group Inc., predicts that a proactive understanding of customer demand and diversification within the supply chain will prevent a next round of guffaws as the effects of COVID-19 disruptions to the supply chain begin to subside and the world faces the uncertainty of the return of COVID-19. 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.

The importance of the supply chain took front and center stage as the COVID-19 pandemic raged throughout the world. “The wrong products were in the wrong places at the wrong time. From bumper crops of vegetables, eggs and other foodstuffs to the infamous toilet paper capers, consumers became very aware of the fine balance within the worldwide supply chain.  Crops and dairy products originally destined for restaurants soon saw their demand disappear while grocery stores had to limit demand to keep up. Hoarding of consumer paper goods like toilet paper and paper towels caused weeks’ delay in replenishments.  And, after nine weeks of shortages, manufacturers are still having challenges in aligning demand with supply,” stated Ms. Anderson.

The key is future proofing the supply chain so that it is resilient to disruptions.  That requires taking a proactive approach to putting strong secondary and tertiary backups in place for every element within the supply chain.  “The supply chain is both simplistic and complex. It is all about satisfying the customer, even before they know what they want.  The complexities start when managing equally important priorities.  From developing strong relationships with core suppliers and identifying customer buying patterns to forecasting inventory needs to satisfy demand, the details are many, balanced with having the right products in the right place at the right time for the right price, all while being profitable. COVID-19 has highlighted that even if your supply chain is complex, it also must be nimble,” she continued.

“We’ve seen the consequences of wringing too much out of the supply chain.  The winners have been those manufacturers who had strong relationships with multiple suppliers, good insights into customer demand, multiple options for transportation and dedicated teams willing to pivot to new ways of doing business to keep and expand the business. We have seen new business opportunities emerge and stalwarts struggle. The good news is that we have, once again, rallied to a challenge,” she said.  The video conferencing tech explosion, brick and mortar retailers becoming online behemoths to satisfy at-home demand and manufacturers retrofitting production lines to make ventilators and sanitizers have demonstrated the strength, innovation and ingenuity of manufacturing during a crisis. “Now, it’s time to take what we have learned and quickly adapt it to the new un-normal.  Manufacturers are already making inroads with new suppliers, forming unusual partnerships to expedite progress, building speed and resiliency into their operations, pursuing industry 5.0 and reshoring production closer to ever-changing customer demand. As much as these initiatives sound proactive and thorough, they are not enough. Manufacturers need to get ahead of the curve and create disruption to thrive in this new un-normal she concluded.

Ms. Anderson recently released, Future-Proofing Manufacturing & the Supply Chain Post COVID-19, an eBook that provides practical go-forward insights, advice and experiential value for manufacturers and their supply chains.

 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



Priorities, Priorities, Priorities

November 21st, 2019

When teaching a CSCP class for a large Target distribution center recently, one of the managers asked me about what drives results across all clients. One of the great benefits of speaking and teaching is that attendees stimulate new ideas and/or insights. I gave him what popped to mind immediately.

However, it got me thinking. Why not share these with my clients as it might stimulate ideas across the board! Here’s what popped into my mind: We gained the biggest benefit when figuring out where to focus attention to achieve the desired end result (such as increasing revenue, profit or cash flow). In essence, what is the priority?

Unfortunately, this sounds so obvious that most people think they have it covered but they do NOT! I’ve yet to meet a client with the following situation:

  • Just a few key priorities that were best suited to drive the results they desired
  • Key players in the organization (and perhaps key supply chain partners) were aligned on this same page.

More typically, there are FAR too many priorities AND the issue is that they all sound like priorities.

  • The Board wants x.
  • Our key customer is demanding y.
  • There are projects to launch new products.
  • There are projects to save costs.
  • Employees need education and training to know how to grow the business.
  • And the list goes on.

So what should we do? If it were easy, it wouldn’t be so commonplace. Yet, it is doable. We start at the end and work our way back. What are the desired results we need x months or years into the future? Then we look at how we get from where we are to where we need to go. Again, it sounds quite simple but, of course, it isn’t. And then, we look over what we see as priorities and how they fit into what we need to get from here to there.

Next, we look at three aspects:

  • What is the impact of the priority?
  • How urgent is the priority? This is often confused with impact. Often, they are NOT the same.
  • If we did nothing, what would happen? Would the situation get better on its own, stay the same or get worse?

Re-think your priorities. Why are you doing what you are doing? I was just reminded of this recently by a partner. She asked about the results we were achieving jointly and wondered if the level of effort was worth the outcome. I had to say, she was right! What were we thinking? Consequently, we are re-evaluating our priorities.

How about you?  It also often takes an outside view to stir the pot to re-think priorities. Are you comfortable? If so, you might want to take another look.



Which Business Best Practices Do Top Notch Trusted Advisors See?

October 5th, 2017

In my ProVisors ODAM (Ontario-hosted Distributors and Manufacturers group – don’t you love the play on words?) meeting this month, we discussed business best practices we’ve seen with our manufacturing and distribution clients. It was a fascinating discussion as our group is diverse and consists of the most respected attorneys, CPAs, commercial insurance, business financial advisers, and consultants from around Southern California. Yet, we agreed rather quickly on core best practices. Thanks to Ron Penland for making the meetings engaging and trend-worthy.

Best business practices, this way….

Here are some of the top themes surrounding best practices:

  • Start by understanding financial statements and cost – it’s interesting how often this arises with our clients.
  • Look for the value add.
  • Find ways to scale without increasing costs. There are many options such as leveraging technologies, best practices, trade associations and more.
  • Leadership equals profit improvement. End of story.
  • Don’t start planning your exit “too late”.
  • Consider process improvement techniques such as lean manufacturing, SIOP (sales, inventory and operations planning), etc.
  • Be aware of your indicators and metrics.

More Best Practices

Are you reliant on figuring everything out yourself? We hope not! The most successful people find groups, attend seminars and conferences, engage with trade associations and interact with others who are up-to-speed on the latest trends and timeless success traits. If you think you might need to go a step further, feel free to contact us and we’ll suggest a few strategies for you.

 

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

100 Best Practices, Tips to Elevate Business Performance in Manufacturing

 



IBM, MIT & Artificial Intelligence

September 15th, 2017

Supply Chain Briefing

IBM has announced it plans to spend $240 million over the next ten years to develop an artificial intelligence (AI) research lab with the Massachusetts Institute of Technology (MIT). Anytime these two powerhouses collaborate and put their money where their mouth is, we should at least pay attention and consider the significance. AI is popping up in conversations everywhere as all type of organizations and industries are seeing the significance of AI technology. I don’t even have to look very far. My mom said her Amazon Alexa was one of the best presents she has ever received. (And that’s solely for the ease of the alarm!)

The future of artificial intelligence

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

Artificial intelligence is certainly a hot topic! However, it isn’t just hype. Proctor & Gamble improved unplanned downtime by 10-20% with AI. Siemens is using AI to optimize industrial facilities and is employing it for a wide variety of other applications in areas such as energy distribution, electric motors, and rail technology. There are a vast number of uses. It’s time to start thinking about how it could affect your industry.

Are any of your current partners (suppliers, IT/ERP etc.) researching AI?  You do not have to do it alone. Do you want to lead these efforts or pay attention to what is going on around you? Or, perhaps like IBM and MIT, you want to create a new partnership? It is a strategic decision. One way or another, if you aren’t at least paying attention, you will be passed by.

 

Read more about technology trends in supply chain.

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Even The Best System Will Fail Without Talent

September 8th, 2017

As an ERP expert, it is quite clear to me that even the best systems will fail miserably if they don’t possess talent. Don’t even bother to select and implement an ERP system if you don’t have the “right” people on the bus. Start with executive support and continue on down through every position – everything is a team effort.

Teamwork is everything

It’s paramount in business to have the “right” people at the table.

Since we’ve worked with many clients on ERP projects, it is crystal clear what impact people will have on your business’s success. Throw out the notion that ERP is a technical topic! Instead, start thinking of it as a transformation initiative of substantial importance to business success.

Talent Leads the Way to Success

There are countless ways in which talent will affect success. To name just a few:

  • The sales team at the ERP software provider. Let’s start with the people selling the system. If they aren’t geared to educate you on their system and its fit, you can be sold “a bill of goods”.
  • The implementation team at the ERP software provider – there is little as important as the particular resources you partner with to implement your system. Set it up sub-optimally and you’ll have enduring issues.
  • Your ERP team – since ERP can be such a time intensive process, the temptation is to assign non-integral people to the team since the day-to-day must carry on; however, this team is designing your future!
  • Your executive sponsors – these folks are in a critical position to understand the status, make critical decisions, consider the fit with strategy, supplement resources as required and much more. It is not for the faint of heart!

If you’d like to ensure success with your ERP system, you’ll START by considering the people.  Put more time and thought into your talent. As much as or more than you put into evaluating functionality and you’ll be grateful down-the-line.

 

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

Why ERP Success Has Little to Do with Systems