Tag Archive: resilient supply chain

Walmart & Costco Moving Towards Farmer-to-Shopping Cart Strategies

May 1st, 2019

 

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.



Manufacturing & Supply Chain Expert Lisa Anderson Predicts Resilient Supply Chain Key to 2019 Manufacturing Success

January 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.

Media Contact                                                             
Kathleen McEntee | Kathleen McEntee & Associates, Ltd. | p. (760) 262 – 4080 | 207843@email4pr.com



Top Two Issues According to Wells Fargo Customers

January 18th, 2019

In listening to a Wells Fargo commercial banking executive’s speech, he mentioned that the two top issues as we head into 2019 according to clients are:  labor (shortages) and cyber-security. This isn’t surprising, given what our clients face. We cannot think of a client who isn’t experiencing some sort of talent shortage.  Luckily, the same is not true for cyber-security.  Yet, it is a relevant, pressing and serious topic. When it rains, it pours BIG TIME when it comes to cyber-security.  Are you proactively addressing these topics?

What Should We Consider and/or What Impacts Could Arise?
For talent and labor shortages, it is often more complex than our clients need “2 more people”.  Invariably, they might have the “right” number of people in total.  Yet. they may not have what they need.  One of the following is often the issue: 1) Skills aren’t allocated properly. 2) There isn’t enough of specific skills and more than needed in others.  3) Cross-training is lacking. 4) People are not working to their maximum (or even regular) potential.

One of the best places to start is to understand your situation.  Don’t think about whether you can afford it or where you’ll cut back to afford it.  Just start by understanding your situation. We often go into clients and find “hidden” talents. Actually,m it occurs more frequently than you’d think. The good news is that these “hidden” talents can often be reallocated for the benefit of the organization almost immediately – at least a lot quicker than hiring and assimilating new talent.  We also typically find people who are not working to regular, let alone, maximum potential. Why? Because they might be working in an area that doesn’t align with their best skills or they work for someone who is stifling their progress. Finding these hidden opportunities can avoid making new hires for the vast majority of clients.

Beyond talent, you had better protect your company from cyber-security threats.  It is as simple as “get an expert immediately if you aren’t already working with one”, no matter your organization’s size.  Small organizations are more likely to be attacked! I’m happy to refer you to a top notch organization. Contact me if you are interested.

Are you searching for these opportunities and addressing risks?  They will certainly create a more resilient organization. For additional strategies to create a resilient supply chain, check out our new series:

 



What’s Ahead for Supply Chain?

January 18th, 2019

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:

  1.  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.  
  2.  Distributed Inventory Management will be Key to Manufacturing 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.   
  3.  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.
  4.  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.
  5.  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.  
  6.  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.
  7.  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.

What will you do to get ahead of the curve in the New Year?

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

The Strongest Link in Your Supply Chain

What’s Next in Supply Chain?

Is Your Supply Chain Ready for Growth?



Holiday Sales are Expected to be UP by Double Digits in E-Commerce

December 17th, 2018

Black Friday has already gotten off to a strong start!  According to Coresight Research, holiday sales are expected to be up by 4% whereas e-commerce will be up 16%!   Target had a goal to hire more than 120,000 people for the holiday season which is a 20% increase. UPS planned to hire 100,000 which is up 5,000 from last year (maybe because they had to spent $125 million extra last year to fix delays because they were short staffed).  And FedEx planned to hire 55,000 additional seasonal workers which was a slight increase from last year (and they expect a record-breaking year).

Is your business seasonal?  What are you expecting? Is anyone in your supply chain focused on seasonal business?  Perhaps you should find out!

What Should We Consider and/or What Impacts Could Arise?
Are you prepared for the holiday season?  I find this is somehow a common issue among clients.  The smartest of clients tend to miss holiday season trends.  For example, I worked with one client for several years and key workers took off during the holiday season for extended vacations every year.  Yet, it seemed to be a constant surprise when we struggled to keep up with demand.  Of course, our customer’s demand didn’t decrease, even in a non-holiday industry. Of course, clients focused on consumer products always struggle to predict holiday sales as you cannot start producing in December! When I worked with Coca-Cola Enterprises, employees only got Christmas day off because holidays were always BIG.  

Think beyond your company.  Given the statistics above, do you think your carriers might be a bit busy during the holiday season?  How about your suppliers that might supply other holiday-intensive industries? Your trusted advisors? No matter the supply chain partner, perhaps a heads up surrounding holiday activity and expectations would be a good idea. Holiday season volatility is another good example of why you should create a resilient supply chain to navigate disruption and achieve peak performance.

Check out our new video and article series as well as our soon-to-be offered Rapid Resilient Supply Chain Assessment service.