Tag Archive: strategies

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.



Have You Thought about Increasing Demand?

March 8th, 2019

If you are reading our newsletter, I have no doubt you are interested in increasing demand. Whether an owner, executive or key player, increasing demand for your products and services has to be top of mind. Let’s put it this way. No matter the position of my client (typically a CEO, Owner, CFO, General Manager or Board member), he/she is interested in increasing demand.  Consequently, the projects we work on are typically related to increasing demand, either directly or indirectly.

I was on a panel about increasing demand at the Anti-seminar Executive Luncheon. We had interesting discussions about demand from several diverse points-of-view. Thanks to Chase Photography, you can see them as a livestream on Facebook – video 1 and video 2 (about 60 minutes total). In thinking about how to increase demand, a few highlights include:

  1. Observe how your customer uses products and services –An often-overlooked gem is to follow Apple’s lead and observe how your customers are using your products and services and look for ways to enhance their experience. Have you taken a step back lately to look for areas where you can further help your customer?  Do you make working with your company onerous? That’s an obvious one yet commonplace. Imagine if you looked further!
  1. Do you provide a superior customer experience? If you ‘shopped’ your business, would you want to buy from it? Do your customers receive their products and services as ordered and in good quality/ condition? On-time? Quicker than the competition? Do you allow for easy returns? Hopefully you answered yes to each of these. We’ve found that this solely achieves a base level of customer service. Thus, the question becomes, “What are you doing to go over and beyond to make your customer compelled to return to you?”.
  1. Are you referable? First, people buy from people; not companies. Are you people referable? The #1 strategy to increase demand is referrals. No matter whether we are talking about a manufacturer, distributor, transportation partner or service organization, referrals can generate more business than any other method. Just as much as we enjoy buying the latest technology based on the referrals from our friends, the people working at companies also refer. When is the last time you attended an industry event or conferred with local CEOs? You better believe business gets done based on word of mouth.
  1. What can you take over for your customer? We have found that whether the industry is aerospace and defense, food and beverage, building products or healthcare products, there are opportunities to take over tasks for your customer. One common and prevalent one is to figure out what your customer needs at each of their branches/facilities and keep them replenished so that they have the ‘right’ inventory at the ‘right’ place at the ‘right’ time. We see this as gaining relevance.  Distributed inventory is becoming an essential element of the end-to-end supply chain plan as customers expect Amazon-like service and will find someone else if you cannot meet their needs.

When at PaperPak, we won supplier of the year for two years in a row with our #1 healthcare products customer because we implemented vendor managed inventory and were able to maximize their service levels while minimizing their inventory levels (cash tied up throughout their system). It didn’t hurt that we also grew the business by partnering further with them while reducing our costs and inventory levels as well. Have you thought about taking a request from a customer and turning it into increased demand for you?

Our most successful clients are thinking about these types of strategies to increase and manage demand. Why not spend a few minutes to listen to the expert panel and walk away with a few insights? If you’d like an expert to assess your situation to partner with you to achieve these types of results, contact us.

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

The Strongest Link in Your Supply Chain

UGG Founder, the Amazon Effect in Healthcare & Why Demand is Key 



The Resilient Supply Chain: Video Interview on Global Competitiveness

October 26th, 2018

To kick off our supply chain resiliency value series, we are excited to share an interview with Mirna Elnar, CEO Acura Spa Systems Inc.  Thanks to Mirna for sharing her expertise at the  APICS Inland Empire Executive Panel & Networking Symposium panel is Spring!   

Mirna is responding to a question related to supply chain resiliency.  In essence, the key question for manufacturers is how to be competitive with overseas manufacturers in low cost countries.  Clearly, we are NOT likely to be competitive on cost (especially labor cost) alone.  However, all is not lost!

In her comments, Mirna provides several ideas and strategies for how to navigate these rough waters successfully.  

                                                   

Success Responds to Resilience and Repetition
Our most successful clients build innovation into their daily routine.  It is no accident that they are the most resilient as conditions change.  In today’s Amazonian environment which is full of volatility and changing conditions, resiliency has become a “must”!

Mirna also gave a compelling story about exporting to Brazil.  Instead of giving up when she found out the tariffs were unfair, she devised a way to collaborate with a company in Brazil and find a win-win opportunity.  We walked away thinking if she could turn an unfair advantage into an opportunity, why aren’t we looking further for these innovative ideas?

 



APICS-IE Symposium & Key Take-Aways on GROWTH

June 14th, 2018

Supply Chain Briefing

Our APICS Inland Empire chapter hosted the 12th executive panel and networking symposium (over 7 years) on the theme of “Managing Rapid Growth when Manufacturing and Distribution are HOT”.  We had a fabulous panel (clearly enjoying the conversation – see below) of manufacturing and supply chain CEOs and experts.  Thanks to the APICS BOD and Kash Gokli and the Harvey Mudd team for putting on such a value-packed day!

Overall, we discussed the power of manufacturing and supply chain in today’s environment.  In the era of the customer, it is all about the customer experience, rapid deliveries, e-commerce and responsiveness.  From that point-of-view, Southern CA has enormous opportunity since it is larger than all but 5 or 6 states in terms of population – and customers/ consumers! We also have access to technology, high-tech skills and more.  The tax law gives us additional great advantages. The only downer is the lack of support from the state California.

In addition, the panel talked about ways to thrive regardless of your circumstances.  For example, Mirna Elnar (CEO of Regal Spas) wanted to sell into Brazil but ran into horrible tariffs.  So, she collaborated with a local Brazilian company to achieve success.  Several of the themes boil down to the following: Innovation. Culture. People. Technology. Metrics.

What Should We Consider and/or What Impacts Could Arise?
First and foremost, we are in the “right” fields – manufacturing and supply chain (along with related disciplines such as IT/technology and Organizational development) are HOT and there is vast opportunity.   However, we must take advantage of the opportunity and have a voice! Would we prefer to leave our future up to the California lawmakers (for example) or take a proactive approach? Certainly our panel encouraged us to be proactive.

Think about your supply chain: How are you positioned in comparison to your customers’ locations, your end users (consumers, patients, or the base player in your industry such as Boeing) and how well positioned are you to create value-added customer experiences?  What do you expect to happen in the future? Are you still positioned effectively? Are you prepared for growth?

One of the most common issues our clients call about is unexpected demand: Are your products and services going to be in the right place at the right time, in relevant ‘packaging’ (meaningful to your customers’ current needs) at the right margins and cash flow?

Many of these questions go back to aligning your demand with your capacity, starting with your people.   It takes a minute to lose a customer – and a LONG TIME to win them back.

Keep innovation and future disruptors top of mind.  The last thing any of us wants is to come up with the best strategies and plans that are outdated by the time they are implemented!  If you’d like to talk about performing an audit of your supply chain positioning, contact us.



APICS Inland Empire Announces Fall Symposium on November 4

October 15th, 2017

APICS Inland Empire Announces Fall Symposium on November 4

“Leveraging Technology for Supply Chain Success” Offers Practical Insights 

CLAREMONT, CA – October 13, 2017  APICS Inland Empire Chapter (APICS-IE), the leading association for supply chain and operations professionals, is proud to announce the Fall 2017 Networking Symposium and Expert Panel focusing on: “Leveraging Technologies for Supply Chain Success”. The event will be held on November 4, 2017 in Corona, California.

 This event marks the fifth year that APICS-IE convenes a Fall conference and expert panel to share insights on global supply chain trends and strategies. In addition to insightful take-aways, engaging dialog and collegial networking, APICS-IE serves as a resource for supply chain professionals seeking certifications and industry connections.

“As the Amazon Effect and the Internet of Things have become day-to-day conversations and challenges for the supply chain, we wanted to show how leveraging technology can be a huge opportunity” comments Lisa Anderson, APICS-IE Chapter Leader and President of LMA Consulting Group. The topic allows for a deep dive into current uses of technology as a main driver in managing the supply chain and its effect on future business processes in the end-to-end supply chain. “It’s important to share experiences and best practices among professionals.  It’s really about sharing for the greater good” she concluded.

The symposium attracts industry professionals from throughout the Inland Empire and Southern California and is supported in large part by sponsors that benefit from and support supply chain professionals.  This year’s sponsors include:  The Manufacturing Executive Institute, Arbela and Reveel.  “The APICS Inland Empire chapter is an important resource for manufacturing executives” comments, Maggie Watson, spokesperson for Platinum Sponsor, The Manufacturing Executive Institute.  “Supporting development for professionals who focus on the heartbeat of a manufacturer – the supply chain – is key to a growing organization.  APICS-IE does just that” she concluded.

The APICS-IE Fall Symposium: “Leveraging Technologies for Supply Chain Success” will be held Saturday, November 4, 2017 from 8:00-11:30 AM at the Eagle Glen Golf Club in Corona. Fees to attend are $15 for members, $25 for non-members and students are free. A breakfast buffet is included. Register online at http://events.r20.constantcontact.com/register/event?oeidk=a07eejzcmlh6e2c67f6&llr=pd7pgykab

About APICS
APICS is the leading professional association for supply chain and operations management and the premier provider of research, education and certification programs that elevate end-to-end supply chain excellence, innovation and resilience. APICS Certified in Production and Inventory Management (CPIM) and APICS Certified Supply Chain Professional (CSCP) designations set the industry standard. With over 37,000 members and more than 250 international partners, APICS is transforming the way people do business, drive growth and reach global customers.

About APICS – Inland Empire
The APICS Inland Empire Chapter (APICS-IE) covers the Inland Empire region of Southern California, which spans the easternmost portion of Los Angeles county and includes San Bernardino and Riverside counties.  The chapter offers educational classes, programs and special events in the hotbeds of manufacturing and distribution activity including Ontario, Riverside and Temecula.  APICS-IE partners with other organizations supporting manufacturing and distribution such as the DMA (Distribution Management Association), neighboring APICS chapters, industry leaders and government officials in support of furthering the region’s workforce development and growth.