I was talking with a Los Angeles Times reporter about the coronavirus a few days ago, and it spurred several thoughts about down-the-line impacts beyond the obvious. According to the Epoch Times, the coronavirus impacts will hit within the next few months. This makes perfect sense since lead times are typically between 2-3 months for our clients. So, expect current shutdowns to have impact in a few months. While you should obviously spring to action if impacted, you should be thinking about future-proofing your supply chain regardless!
Tag Archive: resilient supply chain
Lately, we have noticed that the next “big thing” will be future-proofing. Although everyone seems concerned about potential recessions in one of the greatest periods of growth ever on record, that isn’t why we have chosen to focus on the topic of future-proofing. Instead, what we have noticed is that the future is simply unknown.
It has an equal or better chance to be ideal for growth. Yet clients will not be able to take advantage of the opportunity if they haven’t been future-proofing their business and customer base. Also technology is a big unknown. Certainly waiting on the sidelines for someone else to figure it out will not cut it! In today’s era of the Amazon Impact, the Skills Gap and the need for a Resilient Supply Chain, your future will still not be secure if you haven’t thought about future-proofing. So, we are excited to launch our next LMA-i, LMA Intelligence topic, “Future-proofing Manufacturing & Supply Chain
As we explore this new strategic topic, we always start with the fundamentals. It does not matter how much you spend on the latest and greatest, energy efficient windows for your house if your foundation is cracked, letting in air and sinking. People must be your foundation. No matter how high tech your company, it must be accompanied with high touch.
Have you taken a step back lately to evaluate your people?
- Do you have the right players on your team?
- Do they understand where they are going and why?
- Do they have a coach, mentor and/or adviser?
- Are there opportunities for career progression for key roles?
- Have you identified your stars and have a fast-track program in place?
- Are you recognizing your team?
- Do you have bench strength?
- Is your team prepared for where you are going currently or are they thinking about where they need to be in a year?
- How about your customers, suppliers and trusted advisors? Do they understand their value and how they can contribute?
- Are you willing to invest in people before investing in equipment and technology? Why or why not?
To future-proof your manufacturing business, you must know these answers. Of course knowing the answers is not sufficient. Is your team on board? How about your supply chain partners? Moreover, as unfortunate as it seems, being smart isn’t enough. You must apply this knowledge in a way that enables you to successful navigate the future while continually creating scalable, profitable growth.
Did you like this article? Continue reading on this topic:
Walmart & Costco Moving Towards Farmer-to-Shopping Cart Strategies
The squeeze continues. During my Aerospace & Defense speech recently on the Resilient Supply Chain, the concept of vertical integration arose as Boeing and Airbus are expanding and squeezing the middle in a noteworthy fashion. Similarly, according to Journal Star Walmart and Costco are moving to eliminate the middle man by moving towards farmer-to-shopping cart strategies.
Walmart started bottling milk in its new Indiana facility. This move eliminated Dean Foods and their 100 dairy farmers and replaced them with 30 farmers and cooperatives. Walmart is controlling the entire supply chain from farm to shopping cart including transportation, a vertical integration strategy rarely seen to this extent and scale in agriculture. Similarly, Costco established a chicken farm to grow, slaughter and distribute chickens in Nebraska, eliminating suppliers like Tyson Foods and Pilgrim’s Pride. Both of these initiatives could create significant disruption as well as opportunity.
Are you staying comfortable, waiting to be disrupted or taking the proactive approach to create disruption?
What Should We Consider and/or What Impacts Could Arise?
Getting to the top and/or to a comfortable position and riding the wave isn’t a viable strategy if you wish to be around for the long-term. Stay up-to-speed on what is going on with your industry, competitors, customers, suppliers, region and more. Don’t hide your head in the sand. Instead, choose to take the realistic yet optimistic view and turn it into reality.
In addition, start looking at how to build an agile and resilient end-to-end supply chain. There is no telling when your supply chain might be squeezed or something will change. The more agile and resilient you become, the more successful you’ll be! If you’d like some tips for managing disruption, take a look at our resilient supply chain series.
To think about what’s ahead in supply chain, it is important to put it in perspective with what’s ahead in business. Read our article, “What’s Ahead in Business?” for details on the key trends impacting business:
- Importance of the customer experience
- Taking the holistic view has become a “must”
- Volatility is the new norm
- The coming power of manufacturing and supply chain
Given these trends, we predict our most successful clients will be thinking about these themes in the end-to-end supply chain:
- Manufacturing is the place to be!:Manufacturers are uniquely positioned to thrive. I have to say, I love that manufacturing is getting its due. According to NAM, for every $1 spent in manufacturing, $1.89 is added to the economy which is the highest multiplier of any economic sector.
- Distributed inventory management will be key to success: In today’s Amazon-impacted business environment, the customer expects rapid, low cost delivery. Given that the “last mile” has also become “last minute” with customers changing their mind frequently, predictive, distributed inventory management has become a differentiator.
- Additive manufacturing will rise to the top: Customers want customized products on the fly yet distributors cannot stock everything near every manufacturer, end user and the like. 3D printing can achieve this goal.
- Customized, rapid delivery with Amazon-like service and efficiency is the norm:In addition to additive manufacturing, re-shoring and near-sourcing (locating close to customers) are viable solutions to achieve Amazon-like service. The question is how to be efficient, cost effective and visible while serving customers.
- Amazon prime for manufacturers is more than a pipe dream: Subscription based models are becoming relevant to manufacturing, just as to Netflix and ERP systems. According to my friend, colleague and author Robbie Baxter, the membership model is just as relevant in manufacturing in transitioning from a one transaction/ one-way communication to an ongoing relationship with the customer with a constant stream of feedback.
- We are moving to a digitized supply chain: To address customers’ elevated expectations while continuing to make a profit, manufacturers and supply chain organizations are moving to a digitized supply chain. Artificial intelligence, IoT, the smart factory, robots and more. Don’t embrace technology as a fad; instead, embrace technology as a way to achieve a result.
- To succeed, we must create a resilient supply chain:Disruptions and volatility abound. Customers expect more. Boards expect more. People are harder to find and retain. Creating a resilient supply chain enables a proactive response to the current environment.
Manufacturing & Supply Chain Expert Lisa Anderson Predicts Resilient Supply Chain Key to 2019 Manufacturing SuccessJanuary 22nd, 2019
Originally published on PR Newswire on January 17, 2019
CLAREMONT, Calif., Jan. 17, 2019 /PRNewswire/ — Manufacturing and Supply Chain Expert Lisa Anderson, MBA, CSCP, CLTD, president of LMA Consulting Group Inc., predicts that manufacturing will be a top economic force in 2019. Key to the success will be creating a resilient supply chain
“Economic volatility and uncertainty are the new normal. Instead of lamenting, clients should take advantage of the opportunity. There has never been a better time to stand out from the crowd with a superior customer experience amidst the chaos,” Ms. Anderson commented. LMA Consulting Group works with clients on manufacturing strategy and end-to-end supply chain transformation that maximizes the customer experience and enables profitable, scalable, dramatic business growth. The firm also conducts research to help clients predict future trends and embrace key priorities to succeed.
“Not only has the Amazon Effect driven customers to expect customized product and service offerings with rapid response, creating a greater demand for local manufacturing, it has also made innovation a cultural norm. Drones, robotics, IOT, artificial Intelligence, big data predictive analytics and additive manufacturing are transforming entire industries while providing the tools to create a customer-centric, resilient supply chain,” she said. LMA predicts that creating a resilient supply chain that navigates disruptions and provides a superior customer experience will be key to achieving peak performance.
Based on client engagements and research, LMA has identified 5 areas that manufacturers must address to be successful in 2019. It starts with superior customer service, and continues by taking a holistic, full circle view of the business. Understanding and preparing for volatility as the new normal will become foundational, whereas leveraging the collective power of the end-to-end supply chain and manufacturing capabilities will emerge as a critical priority, culminating in the need to create a resilient supply chain to be agile in these tumultuous yet exciting times that are ripe with opportunity.
“Manufacturing is on the forefront of breakthroughs every day. From making the latest medication to cure cancer to customizing an engine part that will transform space exploration, manufacturing is uniquely positioned to have a lasting impact on our economy and our lives. For those who embrace the opportunity, the rewards will be tremendous,” 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. For information, to sign up for her Profit Through PeopleTM Newsletter or for a copy of her book, visit LMA-ConsultingGroup.com.
Kathleen McEntee | Kathleen McEntee & Associates, Ltd. | p. (760) 262 – 4080 | email@example.com