Tag Archive: resilient

Stabilizing Supply Chains: Supply Chain Brain Video

September 16th, 2020

Robert J. Bowman, editor-in-chief of SupplyChainBrain and I recently talked about how to stabilize the supply chain. We talked about your customers’ customers, your suppliers’ suppliers, how to access them, whether they’ll share data, how technology can help, how SIOP can help and more. Listen to our conversation.

       

 

What Should We Consider and/or What Impacts Could Arise?
Although there are many steps every manufacturer or distributor should take to stabilize during these unprecedented times, there are a few critical and common steps everyone should pursue. A few highlights we discussed on Supply Chain Brain include:

  1. Your customers’ customers – Establish trust with your customers so that you can get information about what is going on further into your supply chain.  Explain that you’ll use the information to improve your customer’s experience and their success with their customer.
  2. Your suppliers’ suppliers – Establish trust with your suppliers so that you can build stronger relationships, gain information further into your supply chain and better understand how you can help to ensure a stable source of supply.
  3. How can technology help– Predictive analytics, business intelligence, simple demand planning/ forecasting and ERP functionality can go a long way.
  4. SIOP– Better align and manage your demand and supply (SIOP) at an accelerated pace (weekly instead of monthly) while still taking the longer view at the top level in terms of dollars, capacity, etc., so you can plan into the future. For example, if you need to move buildings, you have to know LONG before a week or quarter prior to the event but the 80/20 of your time should be spent on weekly exceptions.
  5. Future-proof your supply chain– Set your supply chain up to be agile and resilient so that you can evolve at a breakneck pace.

Read more about these types of topics in my eBook,  Future-Proofing Manufacturing & Supply Chain Post COVID-19. Gain ideas and strategies to successfully emerging from coronavirus and thrive long-term. If you are interested in doing an assessment and rapid roadmap tailored to your company, please contact us about this new service offering.



What is at the Cross-Section of Success?

March 4th, 2019

In thinking about the tours and events in which we’re recently participated, spoken or led, the audience represented a great cross-section of manufacturing and logistics industries, as well as company size:

  • Professional Women in Healthcare – spoke on the Amazon Effect
  • Aerospace & Defense Forum – spoke on the resilient supply chain
  • Anti-seminar themed Executive Luncheon – was a panelist on the topic of increasing demand
  • CSCMP state of the industry event – listened to the president of CSCMP discuss the latest statistics and timely topics in logistics
  • ProVisors manufacturers and distributors event – featuring a City National Bank expert discussing an economic forecast
  • The Founder of the UGG brand – talking about how he created the UGG brand and grew the company from the back of his van to what it is today
  • Tours of UPS, Amazon, Pacific Mountain Logistics, Shamrock Foods, Goodwill, Lifestream, ESRI and more.
  • Meetings with 9 academic institutions in the Inland Empire and surrounding areas
  • Harvey Mudd executive roundtable event –  M&A and preparing for sale
  • Webinars with APICS-IE on IoT and with the Society for the Advancement of Consulting on overcoming obstacles, leveraging PR and more.
  • And more…

So, what is at the cross-section of ALL of these tours, events and/or interactions?

The need for a resilient end-to-end supply chain!

What is in common is the sheer amount of volatility and disruption. Whether the disruptor or the disrupted, entire industries are transforming the way business is done. Some are preparing to have artificial intelligence and automation take over. For example, according to research performed at the University of Redlands, 60%+ of jobs are subject to automation by 2025. Others are dealing with massive benefits or disruption from changes in trade, depending on their role, while others choose to ignore the hoopla and are growing while everyone else is caught up in the chaos! And, this is just the beginning. Trade wars or not, many companies are near-sourcing, and looking at additive manufacturing and vertical integration.

What’s next? If you develop a resilient supply chain, the idea is you don’t have to worry because you’ll successfully navigate disruption to achieve peak performance. Contact us if you’d like to find out how to create a resilient supply chain.

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

Eagle Eye Strategic Focus

What’s Ahead for Supply Chain?

Collaboration in the Supply Chain

 



How Resilient Are Your Business Partners?

December 20th, 2018

As we kick off our new series “The Resilient Supply Chain”, we are thinking about resiliency from all angles that will impact success.  One of the first that pops to mind is the resilience of your business partners.  You and your company could be 100% proactive and resilient; however, if your business partners aren’t, you’ll still crash and burn!

In thinking about recent client examples of disruptions and volatility, there are many!  Here are a few, along with some questions to think about:

 

  • Tariffs started impacting suppliers.  If/when this happens to you, do you know broadly how to handle it?
  • Capacity shortages starting to increase throughout the supply chain.  This has been especially true in aerospace.  Do you know in advance and have backup plans and partners? Or, are you surprised when this occurs?
  • Sales revenues increased more than expected.  A bit of unexpected success can be a nice lift but it also can create several unintended consequences to keep service levels intact. Are you proactively communicating with your supply chain partners?  And, how about your trusted advisors, such as your bank?
  • Transportation shortages have been creating havoc.  The conversation is no longer about price and saving pennies, it is about finding trucks.  Moreover, the key question is whether you will get the truck or whether your competitor will.  Are you the preferable partner to do business with?
  • Shifts in e-commerce and direct to customer have been changing industries. What are you doing to stay on top of these trends and share them with your business partners?
  • New technologies are creating disruption, obsoleting industries and bringing profit opportunities to the surface.  Do you have a plan?  Are you talking with technology trusted advisors, as well as finding ways to collaborate with supply chain partners to find the win-win?
  • And, what about your negotiations with suppliers?  According to APICS 2018 International Conference speakers from companies like Cisco, AkzoNobel, McDonald’s and NASA, it is no longer about negotiation.  It is about win-win collaboration.

This list could go on and on.  At our most recent Harvey Mudd executive roundtable, the CEOs discussed how culture (with employees and business partners) was the key to growth.  Making sure you are partnered with the “right” business partners who share your goals and are resilient might just make or break your success.

It pays to give it some thought!

 



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?

 



Are You Able to be Resilient in Your Decision Making?

November 12th, 2018

 

As we kick off our new series “The Resilient Supply Chain”, we are thinking about all the aspects of resiliency.  It is overwhelming as to the volatility of almost every aspect of the end-to-end supply chain. Just in the last month, there have been many events/ factors that have created disruption:

  • U.S. and Mexico reaching a trade agreement
  • U.S. and Canada still at an impasse with respect to trade negotiations
  • U.S. and China still imposing tariffs on each other
    • Ford cancelled plans to produce a small car in China based on these tariffs.
  • Fires have and are plaguing California – the worst in history
  • The Big Island in Hawaii is just starting to pick up the pieces after the volcano
    • We’ve heard about severe impacts on the businesses and customers in that areAnd earlier this week, although not serious (thank goodness), there was an earthquake in the next town over from our office

The Resilient Supply Chain
Instead of panicking as each of these events or disruptors occur, creating a resilient supply chain can provide a proactive approach to this current state market condition.  One of critical aspects of taking a proactive approach instead of a reactive one is to think about whether you are able to be resilient in your decision making.

Here are some considerations:
1.  People – Good decisions stem from good people.  Thus, it always makes sense to start there.  Do you have people in leadership positions and other key roles that you would want to make decisions in your absence?  (Just this past week, a potential client was killed by a drunk driver while he was on a motorcycle. We would certainly rather be prepared for winning the lottery but the question remains:  Are your people ready to make decisions?)

2.  Data – Although good people can make up for a lot, you also need the “right” information and relevant background to make key decisions.  Do your systems allow you to retrieve meaningful data for decision making? Every single ERP selection client prioritizes business intelligence/dashboard reporting tools as high on their list of priorities for good reason!

3.  Input – Although this can be considered part of people and data, it’s worth calling out on its own.  Do you gain input from trusted sources (colleagues, customers, suppliers, trade association colleagues, industry groups and more)?  Recently, our APICS-IE instructors had an issue arise with updated learning materials – in essence, they were not set up for learning to occur.  Clearly a BIG issue for an education and value-focused organization! Fortunately, after 3 or 4 calls, we had several ideas on how to dramatically improve the process and overcome the obstacle.  In another example that occurred recently for a client project, we had a significant challenge in explaining a complex concept that was critical to success. If we didn’t get past that barrier, results would NOT follow.  It took 5 or 6 calls with excellent input from all as well as testing out ideas before we came up with the ideal way to convey the concept, and it “worked”!

4.  Speed – Slow decision making is worse than no decision making.  In today’s Amazonian marketplace, your customers will be LONG gone if you are slow to make decisions.  I’ve noticed that I am a LOT less tolerant of slow responsiveness even in my own business (and for things I would have been fine with a year ago).  I have to be to remain viable, and so do you! Thus, as it relates to having the ‘right’ people with the ‘right’ data and ‘right’ input, you must also have them at the ‘right’ time.

Have you put thought into your decision-making process before decisions must occur?  Ponder these critical elements, put them in place and you’ll be prepared to successfully navigate the volatility of today’s business decisions.