Tag Archive: profitable

Will Technology Gain Critical Mass in Manufacturing in 2020?

January 6th, 2020

 

 

 

 

 

 

 

According to an Industry Week article, recent predictions say we are headed into the year where technology gains critical mass!  That is truly exciting for manufacturers as people and robots work in collaboration to achieve profitable growth and success. Of course, it isn’t all about robots but it provides a good visual for the conversation.

 

There are all sorts of technologies to consider including robots, collaborative robots, wearables, IoT, additive manufacturing, 5G, AI and more. By NO means should we jump on the next fad.  Yet, we should be aware of these technologies, the progress of the technologies and be ready to take advantage of opportunities. Your smart competition will be! When technology gains critical mass, not only will your competition have the edge but it will accelerate the rate of progress.  This means you will be left inching your way from the start gate when your competition passed you in the victory lap with profitable growth, superior customer experiences and happy employees. Are you considering your technological footprint?

What Should We Consider and/or What Impacts Could Arise?
Without a doubt, shift into high gear when it comes to getting educated on the technologies that support your industry and your supply chain partners. You do not need to throw bunches of money at this issue but gaining prudent proactive knowledge is a must. Understand your landscape and which technologies might provide an advantage in the marketplace. Be willing to invest in testing and trials.

Involve your team and extended supply chain partners in collaborating and brainstorming on win-win-win strategies to achieve key objectives. We live in a collaborative world.  We need to see our partners as partners – not vendors and the competition. From this point-of-view, in my ProVisors group of trusted advisors, the most successful members believe in referring business they could do themselves if they think it is slightly better off with their competitor. It is counter intuitive and ends up turning 1 + 1 into 4 with more business for all. The same will hold true with your supply chain partners.  With that said, being collaborative is not an excuse to be negligent. You have to watch out for cyber security and a host of other issues that could arise.

At a minimum, re-evaluate your technology roadmap.  Remember, this is identical to strategy in 2020. A strategy looking 5 years out is pointless, even a year out is suspect. Instead, you need a roadmap of guidelines with the flexibility to be resilient and the attentiveness to take advantage of opportunities as they arise. In essence, future-proof your manufacturing organization and extended supply chain.

Check out our new LMA-i, LMA-Intelligence series including Future-Proofing and contact us if you’d like an assessment path-forward plan to accelerate your bottom line and customer performance.



Collaboration for Advanced Manufacturing & Supply Chain Success

November 30th, 2019

Our Association for Supply Chain Management (ASCM/ APICS) Inland Empire Chapter is knee-deep in planning for our fall executive panel and networking symposium on the topic, “Collaboration for Advanced Manufacturing & Supply Chain Success“. We are finding this to be a powerful topic as executives must not only collaborate with their customers and suppliers to achieve scalable, profitable growth but they also need to collaborate with industry groups, trusted advisors, software providers (ERP experts), and other partners if they want to succeed in today’s Amazon-impacted, globally volatile, complex regulation environment.

We’d love for you to join in on the discussion and Q&A with experts in the end-to-end supply chain. We have manufacturing experts, logistics experts, technology experts and end-to-end supply chain experts on our panel to talk about trends, issues, and how they have collaborated to drive results. Our attendees include students, planners, buyers, operations and supply chain managers, finance and IT resources related to the supply chain as well as executives and the media.

One Tip to Implement This Week:
When I first started consulting over 14 years ago, collaboration was seen as a “fluffy” topic. I always found that the most powerful results came via collaboration but it wasn’t seen as important. Fast-forward 14 years, and if you aren’t collaborating, you aren’t thriving. No one can handle the level of complexity in today’s manufacturing and logistics environments alone while still servicing customers and driving profitable growth.
Of course, there is no point to collaborating for the sake of collaboration. In fact, as my consulting mentor says, if you want someone to like you, get a dog. Instead, collaboration is for turning 1+1 = 22 by taking the best of different ideas and combining into exponential success. For example, when I was VP of Operations & Supply Chain for a mid-market manufacturer, we had to redesign products to show customers we were on the leading edge and “back” (a force in the market) while offsetting significant material price increases due to oil and gas price pressure as well as optimizing our ability to save money on freight. There was no way for one person, 1 department or even 1 company to accomplish this task without collaboration. Instead, we involved customers, material suppliers, freight carriers, packaging experts, equipment suppliers and more. In the end, we achieved the trifecta. You should even add competitors to your thought process as the most successful executives consider this option for certain situations.
Why not pick a “hot topic” and start thinking about collaboration partners where you could achieve a win-win-win? Just asking folks to think outside the box in new ways can stir some powerful energy and bottom line results. If you are interested in discussing an assessment to help find a few of these powerful ideas to prioritize, contact us. Let us know how it goes!

 

 



Manufacturing Expert, Lisa Anderson, Considers Exports a Significant Opportunity for Manufacturers

October 23rd, 2019

CLAREMONT, CALIFORNIA – October 22, 2019 –  Manufacturing and Supply Chain Expert,  Lisa Anderson, MBA, CSCP, CLTD, president of LMA Consulting Group Inc., sees exports as a significant opportunity for manufacturers to grow and future proof their business.

“As manufacturers work on customizing products and meeting ever-changing delivery expectations, it’s equally important to consider where the customer is located and their drivers. In today’s manufacturing world, exports are a significant opportunity for manufacturers to grow and diversify their business. In fact, statistics show that 95% of consumers are outside of the United States, and most countries see U.S. exports as highly desirable. That’s staggering and significant,” 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.

Culture, the end user, product use, legal requirements and other factors vary from country to country. These and other aspects must be considered to ensure a resilient supply chain. “There is tremendous opportunity to continue to expand beyond our borders.  But that means that not only must Sales, Operations, New Product Development and Finance be on the same page but also international partners and advisors. And, the end goal must be the same: to maximize the customer experience in the most efficient and effective manner for growth, scale and profits,” she said.

October is Manufacturing month, a time when the spotlight shines on the industry. Manufacturers contributed $2.38 trillion to the U.S. economy.  The National Assn. for Manufacturers reports that for every $1 spent in manufacturing, another $1.82 is added. “Despite reports to the contrary, manufacturing is growing and is significant. U.S. Manufacturing alone would be the 8th largest economy in the world,” Ms. Anderson adds. Over the past 28 years, U.S.-manufactured goods exports have quadrupled.  Over the next decade, 4.6 million manufacturing jobs will be needed.  Latest statistics show that in 2017, the 249,962 manufacturers in the U.S. accounted for $2,244.3B (11.6%) of the total U.S. output and employed 8.5% of the U. S. workforce.

“Despite what people hear about robotics and artificial intelligence (AI) taking over manufacturing jobs, manufacturers will continue to be a key employer. The jobs may change, but the need for talent will not,” she said. Ms. Anderson represents the Board for the Inland Empire Economic Partnership that is developing a consortium for advanced manufacturing and logistics success. She is also active with the Manufacturing Council of the Inland Empire where she heads the Innovation Awards for the Annual Summit.

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.

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

 



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



Pricing & Profits: It’s Not All About Revenue

May 26th, 2019

According to CFO Magazine, Amazon’s profit doubled to a record $3.6 billion in the first quarter yet reported its lowest growth rate in quarterly revenue since 2015. In today’s Amazonian environment, subscription services such as Amazon cloud and Kindle services as well as disruptive forces such as the 3rd party seller services (clients worry about from the opposite viewpoint) are driving profitable growth for a company that once lost money continuously. Are you considering ways to ensure your pricing makes sense and delivers the results you intend?

 

It’s Not All About Revenue
Ask questions of your sales representatives, customers, marketing department, executives and competitors about pricing:

  • When is the last time you raised prices? Why are they at the level they are set?
  • Who sets your prices? Think carefully as this could lead to some interesting discussions.
  • Do you know how your prices compare to your costs? There are lots of reasons NOT to set prices this way but knowing this relationship is relevant.
  • How does your pricing stack up with the competition? Again, high or low is irrelevant but considering your strategy is key.
  • Since it has come up frequently lately, I’ll also throw in this one: Is your pricing so complex that your ERP system won’t support it? That would certainly be something to re-evaluate.

Pricing is an important topic, assuming you are interested in profitable growth. It is worth taking the time to ask a few key questions of your internal and external resources. Gather your executive team and put some focus on whether what you are doing makes sense and supports your strategy or if it is out of date. With the pace of change at an all-time high, reviewing this topic once every few years is by NO MEANS enough. If you’d like an expert to assess your situation to partner with you to achieve these types of results, contact us.

 

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

Eagle Eye Strategic Focus

Strategic Pricing

The Resilient Supply Chain: Global Trade Unrest