Tag Archive: profitable

The Resilient Supply Chain: Does Your Environment Support Fear?

November 27th, 2018

In today’s Amazonian environment, customers expect rapid delivery (same day/next day is preferred regardless of industry), 24/7 accessibility, easy returns, innovative collaborations and much more.  Add disruptors popping up all over (such as Uber, Netflix and more), trade war impacts and technology disruptors to entire industries (such as artifical intelligence to the accounting industry), it is quite clear we are in a new ballgame.  One of the keys to successfully navigate this environment is to rely on your people.

When it comes to your people, if they don’t feel empowered, they will not take a leap of faith and bring up ideas, test theories etc.  In essence, they need to overcome fear to rise to the occasion. What is the environment like in your office? Here are a few questions to ponder:

  1.  Will employees be shunned if they go against the grain?  For example, if employees bring up an idea that isn’t popular or one that the manager thinks puts him/her in not-as-good a light, will they get shunned?  Before leaping to the answer of “of course not”, perhaps take a second look one or two levels below you. You might find a different answer than you wish.
  2.  Is failure celebrated?  Of course, we don’t mean multiple failures repeating the same mistakes but is a single failure/learning experience celebrated?
  3.  Would failure still be celebrated if it impacts month-end numbers? Unfortunately, that is when it will occur.  It is just luck of the draw.
  4.  Is it OK to help a project team?  For example, if an employee helps a project team that requires his/her expertise even if it isn’t relevant or supportive to his boss’s success, will it be OK?  Worse yet, if this person is busy (which will always be true), is it OK if he diverts a few hours to help the project team for the greater good even if it doesn’t help his manager?  Will the manager answer the same way if he didn’t know you were listening?
  5.  Do you provide tools and training?  Some employees will take the leap on their own whereas others want the extra support to feel qualified to provide ideas and advice.  Are you willing to invest in these?
  6.  Will you provide mentoring and support? Beyond tools and training, ongoing mentoring and encouragement is needed to facilitate the process.  Whether formal or informal, do you have a process in place that provides this support?

It is definitely much harder than it appears to have your employees overcome fear when you aren’t looking.  

Are you willing to invest time and money into this effort to enable the growth of your employees and the scalable, profitable growth of your business?

 



According to the Industry Week U.S. 500, Manufacturing is STRONG!

September 21st, 2018

 

According to the Industry Week U.S. 500 (America’s largest manufacturers), manufacturing is STRONG!  In fact, the author uses the words VERY STRONG – most likely the largest opportunity for manufacturing since the end of World War II.   Now that is saying something….

The economy is strong and is supplemented by a tax overhaul that supports manufacturers combined with a deregulation focus.  The key is to leverage the opportunity. Even though there are lots of worries about trade wars and skill shortages, thus far, manufacturing continues to outperform.  Get ready for agile and speedy manufacturers with high tech tools to outpace the pack and further spur the economy! Will you be in the fast lane or watching them race by?

What Should We Consider and/or What Impacts Could Arise?
Take a pragmatic look:  Are you in the fast lane, driving with the pack or in the slow lane?  

With the VAST opportunities for manufacturers to succeed, perhaps it is time to put on your turn signal and step on the gas!  As one of our LMA Associates has been saying lately, perhaps we should all “make hay while the sun shines”. Are you?

Making It Happen
Strangely, one of the most important to-do’s should be to not get carried away with all the negative “what if’s” (such as trade wars).  Of course, don’t hide your head in the sand. Stay up-to-date on what’s most likely and relevant to your industry.  Focus 95%+ of your energy on how to distinguish your company from the competition while providing superior customer experiences and enabling scalable, profitable growth.  

Make hay while the sun is shining. Bring your best team players together.  Bring in experts to accelerate progress.  Ignite innovation.  Create the environment to ensure success.  Remember your supply chain partners.  AND THEN, “get out of the way”. Success will follow.



Technologies: Paying Attention to What is Important

September 6th, 2018

There are so many new technologies and combinations of technologies, it is extremely hard to keep up.  How do you know which to pay attention to and which to ignore? Unfortunately, some clients have told us they get overwhelmed by it all and just go back to what they are expert in (running the business) and postpone the technology decision.

As much as we find that technology is NOT #1 to success, achieving scalable, profitable growth without technology is an uphill battle to be sure!  We also find some technology enthusiasts who get so bogged down in technology as the “be all, end all” to success that they actually struggle. Instead of either of these extremes, use a bit of uncommon common sense and determine which technologies are important.  A few points to consider:

  1.  Your Industry:  There is no point being an early adopter if unnecessary in your industry unless it is your competitive advantage.  Where is your industry headed? What would provide a benefit?
  2.  Your Position:  If your competitive edge is being on the forefront of delivering an exceptional customer experience, you better figure out what you need to succeed in this differentiator.  If this is the case, we bet you would need to invest in technology that would enable a superior customer experience. But it is unlikely you’d need other technology advances.
  3.  Return on Investment: As exciting as new technology can be, it pays to ensure you’ll gain an ROI.  Go through the exercise to determine if technology will enable growth, profitability, cash flow or another bottom line benefit.
  4.  Your Current State: A few of our clients have been in a position where they were limited in growth prospects without enabling technology.  Of course, they could grow by brute force with a stellar sales and marketing team; however, to grow in a scalable way, they will need to leverage technology instead of hiring just to ‘keep up’ with growth.
  5.  Your Strengths:  As with most priorities, focus on your strengths.   It can be tempting to “keep up with the Joneses” and buy the latest and greatest technology you think your competition is using.  However, instead of throwing good money after bad, think about your company’s strengths, your teams’ strengths and what makes the most sense to align those strengths with customer requirements.

In today’s Amazon impacted environment, evaluating technology to best support your business objectives is a “must”.  As much as can be accomplished through people and process alone, you will not thrive without at least thinking about technology.  

You want to be aware of what’s coming down the pike in terms of technology before you head over the edge in complete denial with your typewriter in hand.  After all, who would have thought network TV would trend towards becoming obsolete?



When is it the ‘Right’ Time for a Supply Chain Network Assessment?

September 4th, 2018

Supply Chain networks that are not set up to support scalable, profitable growth have a high likelihood of negatively impacting your customers, impeding your growth and consuming far more resources than they were ever imagined to sustain.  What is ideally mapped out one year is likely to change the next in today’s Amazonian marketplace. Thus, assessing your supply chain network from your suppliers’ suppliers through your manufacturing and logistics networks to your customers’ customers with an eye to customers, cost and cash will undoubtedly yield results.  

What are some hints to know when it’s the ‘right’ time?

  1.  Renew your lease, buy or move? – As your lease comes due, it is a natural time to re-evaluate your supply chain network to make sure you are positioned ideally to support your customer base at maximum value for your customers and your organization.
  2.  Cost considerations – As you think about how to reduce your cost base, re-evaluating your supply chain network is a ‘must’.  Most likely, you can save a few pennies here or there.  But, for substantial savings, you may need to review your infrastructure.
  3.  Customer demands – In today’s Amazonian environment, customer demands are ever-increasing.  Is your supply chain network positioned to support your customers’ needs, delivery points and sales growth expectations?
  4.  Space constraints – As you start to think about space, it might be an opportune time to re-evaluate your supply chain network.  First, do you know how much space is needed to support your growth plans (and where)? Do you have the opportunity to maximize space?  Or should you re-position?
  5.  Insourcing/ outsourcing– As you think about whether you should insource, outsource (ex. 3PL) or utilize a combination of both, it is definitely an opportune time to evaluate your supply chain network and logistics infrastructure.
  6.  Supply chain partners – If you are re-evaluating key supply chain partners, it is likely a good time to do a quick assessment of your supply chain network.   

We have found that a supply chain network assessment can be valuable even if you decide not to change a thing.  Performing a quick review of customers, suppliers, operations and logistics infrastructure from a customer, cost and cash flow viewpoint can provide substantial benefit every so often.  Contact us if you’d like to talk further.



What’s Next in the Supply Chain?

August 10th, 2018

Our most successful clients always ask “What’s next?” as they want to stay ahead of the curve.  It is quite clear that staying on top of current trends and what is expected down-the-road is essential to successfully navigating your business to scalable, profitable growth.

For example, if you think your industry might develop a new way of servicing customers, you need to attack it quickly as you afford to be left in the dust.  Clearly, providing an exceptional customer experience is important but so is developing this new service method in a scalable, profitable way. It will be much harder if behind the eight ball. Are you thinking about what is next?

With our definition of the supply chain from creation to customer, there are countless topics to be thinking about when it comes to What’s Next:

  • New Products and Services: What new products and services will your customers want?  We have found that most customers (just like most of our clients) might not know yet.  You better be thinking about it and prompting ideas!
  • Suppliers: What new materials, components and supplies will you need to improve performance at a lower cost? (These win-win successes require innovation and collaboration.)
  • Transportation: What’s next in transportation?  Think of the relevance – from suppliers to manufacturers, from manufacturers to manufacturers, from manufacturers to distributors, from distributors to end customers, from one facility to another facility, and so on.
  • Technology:  What’s next in technology as it connects each of these people along with equipment, and much more (think IoT) with data and information flows.  We find that this often-times can be the bottleneck to achieving scalability.
  • Manufacturing:  What’s next in manufacturing?  Even if you aren’t thinking about using 3D printing, you should be considering the impacts if your competition, your suppliers, your customers and more start using this additive manufacturing capability.  It is likely to impact every step of the supply chain. What else is likely to happen in your industry?
  • Distribution:  What’s next in distribution?  In your industry, what is essential?  To think about distribution, you must think about your customers’ needs.  You also should be thinking about the rest of your supply chain. For example, if 3D printing takes off, it changes the distribution model.  If e-commerce continues to be important, your entire setup would change if you are more traditional currently. Do customers want you to take over worrying about what to stock and where to stock it?  Perhaps you should suggest taking on VMI/ replenishment.
  • Customers: What’s next with your customers?  How about your customers’ customers? Are you even talking with your customers’ customers?  Do you understand the industry trends throughout your chain? If you aren’t getting out of your office with an internal focus, you won’t.  Who have you called lately? Who have you visited? Do you ask questions? Attend conferences?
  • People:  What’s next with your colleagues and partners?   Nothing else will be achievable if you don’t have the best people on the team.  It wasn’t that long ago we thought virtual meetings were a big deal. Now they occur daily.  (Remember, illennials often-times like coming into the office for the community – and prefer the Google-like environment.)

Thinking about what’s next can distinguish you from your competition.  Eventually, a decision will arise that requires this knowledge. If thinking of the future is part of your daily culture, you’ll pass by the rest!