Tag Archive: requirements

What’s Going On with Asia Supply Chains

June 25th, 2020

 

Supply chains are quite tenuous, and China drives the most volume:

  1. Coronavirus: Beijing is under a soft lockdown with a surge of virus cases. Although Beijing doesn’t impact trade, it is another sign that China vastly under reported previously and it is likely to have a new surge of coronavirus and plant closures.
  2. Manufacturers in China: Small and medium size manufacturers are not doing well. They are struggling to keep up since they had to continue paying people even when they weren’t producing. Are you watching your quality and cash?
  3. Vietnam: so far, they are faring pretty well and companies that moved prior to coronavirus and quite happy with service; if they hadn’t yet moved prior to coronavirus, it is likely on hold due to the disruption.
  4. Global transportation: Volume has picked up at all 3 ports in China (although they are dealing with a short-lived vessel shortage) and we aren’t seeing goods movement issues.

International rates are rising: they are up a hefty 12% from Asia to Northern Europe & 32% on the Transpacific route. They have taken capacity out and are slow to add it back. We’ll have to stay tuned to see what will happen.

 

 

Are you taking the continued disruption into account in your supply chain plans?

 

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

Undoubtedly, you should be thinking about how to proactively manage your global footprint:

  1. Re-evaluate your sourcing strategy: as many are already doing, the least you should do is re-evaluate your sourcing strategy. Generally speaking, the total landed cost for non-commodity products is less expensive in the U.S. than in China. Check your total cost and review multiple sourcing alternatives.
  2. Review your customers’ needs: Undoubtedly, consumer and business buying behaviors are changing during these unprecedented times. What is happening with your customer base? What can you do to get in front of the changes and see opportunities for expansion?
  3. Review your customers’ requirements: Understanding where your customers are located is a good start. It can have a profound impact on your supply chain, where you should produce and how you should set up your supply chain infrastructure. In addition, what expectations do they have? Are they expecting immediate delivery? Are their preferences changing to deliver at home? These questions will have a profound impact on your supply chain setup.
  4. Understand your transportation options: Clearly, understanding the speed, cost and effectiveness of your transportation options will be integral to your supply chain infrastructure.
  5. Understand likely disruption: Do a risk assessment to understand the likely disruption and risk associated with your options. You certainly have a different situation in China vs. Europe vs. Brazil.

Read more about this topic as well as your strategy, priorities, key trends, and your restart recipe for success in my eBook,  Future-Proofing Manufacturing & Supply Chain Post COVID-19 . If you are interested in a rapid assessment, please contact us.



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
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