Tag Archive: SIOP

Why Inventory Will Matter Again

June 8th, 2019

I was on a bit of a trip down memory lane over the holidays as I reconnected with former colleagues from when I was VP of Operations and Supply Chain at PaperPak, an absorbent products manufacturer for healthcare and food products.  I recently talked about healthcare manufacturing with a group of powerful women (and a few brave men) at the Professional Women in Healthcare event.  When inventory arose as a hot topic, I thought about paper rolls (pictured).

Actually, inventory was a hot topic as we partnered with key customers to develop collaborative forecasting models, implement vendor managed inventory programs to dramatically reduce inventory and free up cash while improving service levels and to maximize storage and efficiencies in our operations, distribution centers and, most importantly, throughout our transportation system (since absorbent products are bulky and freight intensive).

In our view, inventory is circling back in importance and will become a hot topic again as customers expect immediate, customized deliveries with the expectation of easy returns and last-minute changes to orders in production, in the warehouse or in transit. What are you doing to get ahead of this ‘new normal’ assumption?

To throw out a few ideas to get your juices flowing:

  • Get demand further into your supply chain – what are your customers’ customers selling or using of your product?
  • Be collaborative with strange bedfellows – I’ve written several articles recently on this topic as the most successful executives see the value in finding the ‘win-win-win’
  • What talent do you have focused on having the ‘right’ inventory at the ‘right’ place at the ‘right’ time? You could double your inventory and decrease service if you don’t know how to navigate these treacherous waters.
  • How sure are you that your demand and supply (labor, skills, machine capacity, buildings/ storage capacity, cash flow) are aligned and will remain aligned (review your SIOP plans)?

This topic reminds me of one of my early articles, the Million Dollar Planner. Although that sounds insane, it might be worth thinking about conceptually. If you maximize your customer experience, profitability and cash flow, the return is frequently in excess of a million dollars. Most importantly, what could you do with an extra million dollars? Invest in new products and services to spur growth? Build your infrastructure to enable scalable growth? Build your talent base to create sustainability? The possibilities are limitless.

Contact us if you’d like to discuss further.



The Value of Alignment: Sales, Operations & Finance

May 30th, 2019

Alignment might sound like a fluffy concept, but it delivers bottom line results. Our most successful clients have achieved the most substantial results from alignment. Although SIOP (Sales, Inventory, Operations Planning) gets a wrap as a technical topic, in our experience, it is the alignment portion of SIOP that delivers the bacon!

For example, in one client project, the Sales Leader was concerned about service levels. He knew that service was the differentiator in the marketplace, and if they didn’t have quick lead times and responsive customer service, it would negatively impact his ability to grow the business. On the other hand, planning knew that sales tended to come in dramatic spikes which were hard to predict in advance and so strategic inventory could make sense. Operations wasn’t too keen on inventory since they had a lean mentality with the view that inventory was ‘bad’, and they were concerned about capacity and staffing. Accounting set rules on overhead rates as a percentage of sales on a monthly basis which caused HR and Operations to hire and fire temps continually (and sometimes full-time resources). Overtime wasn’t used as a rule of thumb and was seen as costly by management, In fact, it was the only client we’ve ever worked with that didn’t use at least some percentage of overtime on a continual basis. And, of course, R&D created new products and had no idea about the volume and the impact on capacity and staffing. In essence, no one was on the same page!

We created a demand plan based on historical forecasts with sales input, confirmed the capacity and staffing levels required to meet that forecast and determined that if we level loaded the forecast over a quarter, we could create a win-win: improved service during the sales spikes with improved margins (lower temp turnover, improved efficiencies etc.). But it didn’t matter if we didn’t align the team. That was the 80/20 to creating success (and is ALWAYS the hardest part). Fast-forward 3-6 months down-the-road: We shortened service dips from the sales spikes, increased the service levels and reduced costs.

These types of client results are commonplace with alignment no matter your position in the supply chain or the world. Have you considered whether your teams are saying they are aligned or whether they are truly using the same playbook? It often will make the difference between a happy customer and a disgruntled one (which isn’t something anyone wants in today’s on-line era), let alone the profit impacts. If you are interested in an alignment assessment, please contact us.

 

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

The Strongest Link in Your Supply Chain

SIOP: How Collaboration & Judgement Can Achieve Wonders

What’s Ahead for Supply Chain?



Buried in Data. Dig Your Way Out & Leverage for Success

June 7th, 2018

90% of the world’s data has been created in the last two years. Mind boggling!  Of course, we are getting buried in data and aren’t sure how to dig our way out and leverage for success.

If you just think about your first few hours after waking up in the morning, you’ve received millions of messages and data:  1) News reports from the radio. 2) Text messages and emails on your phone. 3) Most likely you’ve driven by billboard messages on your way to work.  4) The TV might have been on in the background while getting ready for work. 5) People are calling on the phone. 6) Nightly reports arrived in your inbox.  7) Customer orders came in overnight. 8) Your machines have provided data on breakdowns, waste etc. 9) And more….

How can we dig our way out of all this data?  As with almost everything in business, the key is which data to prioritize.  

Have you thought about the strategic use of data?

Here is a short video of me answering a question on the strategic use of data at an Amazon Effect panel at the Manufacturers Summit:

                             

A few insights into digging your way out of data:

  1. Leverage Technology – Don’t manually try to dig your way out of data.  After all, if 80% of the world’s data has been created in two years, there is no hope to dig yourself out byte by byte.  Employ the appropriate use of technology to synthesize data.
  2.  Remember: Garbage in, Garbage out – Just because you put a fancy collection system in place does not mean you are collecting valuable data.  Perhaps you are just collecting garbage. Develop processes to quickly assess the gems from the junk.
  3. Directionally Correct – We are known for using this phrase because we find it is core to success especially when it comes to data.  Don’t even think about making sense of every byte. Gain a directionally correct conclusion and make progress.
  4. Slice and Dice– Data alone is “too much”.  Set your data up so that you can slice and dice the data to dig into what is meaningful for your business.  For example, if you plan to grow in the northeast by 25%, start with the sales growth figure. Then, view it by state or customer. Check the largest increases and decreases in more detail – are there certain customers or items that are over or under performing?
  5.  Take the Bird’s Eye View – We cannot tell you how many clients end up with a great-looking report that doesn’t “add up” – not necessarily in the literal sense but in whether the information makes sense in conjunction with other indicators.  Take a step back and ask questions to make sure it “adds up”.

Our most successful clients pay attention to data.  A few years ago, an award-winning company asked us to help with a SIOP (sales and operations planning process) and an ERP selection process.  They were fanatics when it came to analyzing sales data. It certainly seemed to correlate to part of their success. If you need help thinking through your data strategy, contact us.

 

 



Lisa Anderson Named in Top 40 B2B Tech Influencers

November 30th, 2017

Originally published on Expertclick on November 29, 2017

CLAREMONT, CALIFORNIA – November 29, 2017 –   Supply Chain Expert and Consultant, Lisa Anderson, MBA, CSCP, CLTD, has been named in the Top 40 B2B Tech Influencers by the arketi group, a high-tech PR and digital marketing firm located in Atlanta, Georgia.  Focused on B2B technology, public relations and digital marketing for business-to-business products and services, arketi believes in influencer marketing. Identifying top tech influencers furthers their strategies.

“I am delighted to be recognized by the arketi group.  Leveraging technologies is key to supply chain success” commented Lisa Anderson, President of the LMA Consulting Group.  Technology has provided instantaneous access to data, maximized operational performance and enabled organizations to deliver Amazon-like customer experiences.  “All aspects of organizations are connected these days. The use of technology allows for collaboration, transparency and transformation.  The ‘Internet of Things’ is driving rapid change by making information more accessible and interconnected.  Robotics is making local products more affordable.  And, machine learning is maximizing efficiencies. Those clients thinking proactively about technology are thriving while the rest will be left in the dust” she said.

Ms. Anderson recently facilitated the Fall 2017 Symposium of APICS Inland Empire Chapter (APICS-IE), the premier professional association for supply chain and operations management and will facilitate Rancho Cucamonga Chamber of Commerce’s Manufacturers’ Forum both titled:  Leveraging Technologies for Supply Chain success.  Instantaneous data, autonomous vehicles, total visibility, block chains, increased capacity, ‘Uberization’ of transit, machine learning and transformative movement were key discussion topics around the dynamics spirited by technology.

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 helps manufacturers and distribution organizations innovate, elevate and transform their end-to-end supply chain to align with customer demand.  Ms. Anderson has been named a Top 40 B2B Tech Influencer by arketi group, a 50 ERP Influencer by Washington-Frank and ranked in the top 46 most influential in Supply Chain by SAP. She recently published, I’ve Been Thinking, an inspiring collection of 101 strategies for creating bold customer promises and profits. She is a regular content contributor on topics including supply chain, ERP and SIOP and is regularly interviewed and quoted by publications such as Industry Week, tED magazine and the Wall Street Journal.  For more information, to sign up for her Profit Through PeopleTM

Newsletter or for a copy of her book, visit LMA-ConsultingGroup.com.

                                            



Which Business Best Practices Do Top Notch Trusted Advisors See?

October 5th, 2017

In my ProVisors ODAM (Ontario-hosted Distributors and Manufacturers group – don’t you love the play on words?) meeting this month, we discussed business best practices we’ve seen with our manufacturing and distribution clients. It was a fascinating discussion as our group is diverse and consists of the most respected attorneys, CPAs, commercial insurance, business financial advisers, and consultants from around Southern California. Yet, we agreed rather quickly on core best practices. Thanks to Ron Penland for making the meetings engaging and trend-worthy.

Best business practices, this way….

Here are some of the top themes surrounding best practices:

  • Start by understanding financial statements and cost – it’s interesting how often this arises with our clients.
  • Look for the value add.
  • Find ways to scale without increasing costs. There are many options such as leveraging technologies, best practices, trade associations and more.
  • Leadership equals profit improvement. End of story.
  • Don’t start planning your exit “too late”.
  • Consider process improvement techniques such as lean manufacturing, SIOP (sales, inventory and operations planning), etc.
  • Be aware of your indicators and metrics.

More Best Practices

Are you reliant on figuring everything out yourself? We hope not! The most successful people find groups, attend seminars and conferences, engage with trade associations and interact with others who are up-to-speed on the latest trends and timeless success traits. If you think you might need to go a step further, feel free to contact us and we’ll suggest a few strategies for you.

 

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

100 Best Practices, Tips to Elevate Business Performance in Manufacturing