Tag Archive: strategy

Should We Be Reshoring?

August 14th, 2020

Are you thinking about your product supply strategy? You certainly should be! I was asked to talk on Bloomberg’s “What’d You Miss?” about reshoring since it is a hot topic in the news. I was also on a webinar with other CEOs and thought leaders recently about the Future of ManufacturingThe reshoring conversation took the majority of the hour because it was top of mind for manufacturers as well.

The surveys are ‘adding up’:

  • According to an EY survey, 83% of executives expect a regionalization of the supply chain.
  • According to Supply Chain Dive, 64% of manufacturers say reshoring likely following the pandemic.
  • According to Thomas Industrial Survey, 64% of manufacturers are likely to bring manufacturing production and sourcing back to N.A.

It doesn’t matter which survey is your favorite, at least review your product supply strategy in light of your current and most likely future conditions. As I said in my eBook on product supply strategies, there are many reasons compelling manufacturers to look at this topic. A few highlights include:

  • Customer demand: Customers don’t care where we produce or source what. They expect immediate delivery of customized products and services.
  • Customer changes: Customers expect to change their orders as their customers’ demand changes.
  • Total cost: Total cost is in alignment for non-commodity products. Mexico and the U.S. provide good alternatives for customer demand in N.A.
  • Working capital: Cash is relevant.  When you account for disruptions in your end-to-end supply chain as well as changing demand, it can become a significant number to watch.
  • Risk & Disruption: Look no further than COVID-19 to understand the impacts. Asia shut down for a few months. Mexico and Europe were unable to supply essential businesses in the U.S. according to multiple panels (aerospace executives, large CPG etc.)

With all this said, as I commented on Bloomberg, NOT all situations make sense for reshoring (and certainly not at 100% by tomorrow morning). Instead, use uncommon common sense, conduct a rapid assessment and develop a strategy and path forward. Also, put triggers in place to proactively manage and adjust as needed. If you’d like to discuss further, please contact us.



What’s Going on in Logistics & the Upcoming E-commerce & Logistics Summit

July 30th, 2020

The most recent webinar in our APICS Inland Empire webinar series featured Frank Moullet from Shamrock Foods talking about distribution, food service and how they’ve navigated through COVID-19. We had an engaging discussion on how they made a sharp right turn pivot early on and why people remain critical to success.

 

       

The world is changing rapidly. E-commerce is rising rapidly as consumers gain comfort ordering for home delivery instead of venturing out to the store. Of course, this is creating ripples throughout the supply chain. Distributors are re-thinking inventory strategy. Almost every executive is realizing that agility and resilience are vital to success. According to a National Association of Manufacturers’ recent webinar with CFO and COO experts, automation is top of mind, as well.

Join me on July 22nd as I moderate a panel discussion, Building Resiliency in Supply Chain at the E-Commerce & Logistics Summit. There is a special rate for APICS members for $30. Use special rate code BODshares708.

What Should We Consider and/or What Impacts Could Arise?
In manufacturing and logistics, we have been quite preoccupied trying to keep up with volatile demand and supply swings, let alone how to do that keeping profitability and cashflow intact. So, it makes good sense to take a few minutes and take a step back to listen to folks who have found paths to success and/or are piloting/researching new concepts that could “work” in your industry or company. I definitely recommend listening to our APICS webinar with Shamrock Foods Branch Operations Manager Frank Moullet and/or join us at the E-commerce and Logistics Summit.

Additionally, keep abreast of what is going on in your industry, your profession and within the end-to-end supply chain that will impact you. Read industry magazines, keep an eye out for noteworthy news and key trends. We address these topics as well as many others in my eBook,  Future-Proofing Manufacturing & Supply Chain Post COVID-19. Gain ideas and strategies to successfully emerging from coronavirus and thrive in 2021. If you are interested in doing an assessment of your global supply chain footprint, associated risks and opportunities and how to navigate changing conditions, please contact us.

 



My Favorite Pre-COVID Travel Destination & Travel During Lockdown

July 26th, 2020

As my long-term newsletter subscribers know, I enjoy traveling. Of course, during lockdown, I haven’t even gone to visit my Mom in Arizona since you never know what unintended germs you might bring along for the ride. So, I thought I’d go back to my favorite recent (within the last few years) travel destination. What do you think about Taormina, Sicily?

 

 

What’s not to like? The smell of citrus trees, cobblestone streets, beautiful seascapes, Mt. Etna serving as a backdrop, and excellent food… I was fortunate to stay both on the hilltop at the edge of town and on the beach with a beautiful view and relaxing atmosphere (favorite hotel thus far in my travels). I saw it as a win-win! I had effective strategy discussions and toured around the area enjoying the country. Because I really enjoyed the trip, I plan to return someday although I’d also like to see new places. Where do you want to travel when the coronavirus is no longer a concern? What should we do in the interim?

One Tip to Implement This Week:
Well, certainly, when it is safe, I look forward to visiting my Mom and family again. With that said, a few short road trips might be a nice option in the interim.

And, you can ‘travel’ around the world on Zoom. I participate in a global strategy group with consultants from Australia, New Zealand, Japan, Canada and the U.S. I am co-Executive Director of the Society for the Advancement of Consulting.  We have Zoom calls with members around the globe (15 countries and counting). I also participate in a Global Supply Chain Think Tank with supply chain experts from the Pacific Rim, Europe, and North America. The list could go on….

While on these Zoom calls, I learn about what is going on around the world and with the people next door, in the next state, across the country and across the globe. Are you curious as to what is going on around you? How about how people are holding up? Perhaps try taking a short trip to the next town, next state, next region or next country. Learn something of value that you can share with friends and colleagues. I’d be curious to know what you learn. Drop me a line.

If you are interested in learning about global trends as it relates to manufacturing and supply chain, read my free eBook Future-Proofing Manufacturing & Supply Chain Post COVID-19.



Manufacturing Expert, Lisa Anderson, Forecasts U.S. Manufacturing Resurgence COVID-19 Showcased Technology and Innovation as Key Contributors

June 30th, 2020

CLAREMONT, CALIFORNIA – June 30, 2020 –  Manufacturing and Supply Chain Expert,  Lisa Anderson, MBA, CSCP, CLTD, president of LMA Consulting Group Inc., forecasts a resurgence of manufacturing in the U.S.  LMA Consulting Group works with manufacturers and distributors on strategy and end-to-end supply chain transformation to maximize the customer experience and enable profitable, scalable, dramatic business growth.

“The COVID-19 pandemic turned the supply chain on end.  It forced manufacturers to rethink their strategy, their products and their future.  Those who took the time to identify opportunities and used this unique circumstance to leverage technology and innovate are already seeing results. Innovation has always been the key driver to manufacturing success.  We are now seeing it pay off, and, it’s just the beginning,” stated Ms. Anderson.

Innovation has opened not only new product possibilities for manufacturers, but also new relationships for cost reductions and improving the customer experience.  From suppliers and 3-D printing to transportation options due to reshoring, manufacturers have an abundance of opportunity for differentiation and growth.

“China has fallen from favor not only due to COVID-19 and the supply chain disruption, but also because of the arduous policies they implemented early in the year which essentially removed all protections of intellectual property and patents. There has been talk about doing more business with Mexico, but Mexico is best at assembly,” she said.  Manufacturing shifted to China and other countries due to high labor costs in the U.S.  Technology and robotics have leveled U.S. manufacturing costs.  “It clearly comes down to innovation and leveraging technology. U.S. manufacturers are strong and smart.  Sometimes it just takes an extra push or, in this case, an event to force out-of-the-box thinking,” she concluded.

Ms. Anderson recently recorded another video in her What’s Happening in Manufacturing & the Supply Chain series highlighting Reshoring.

 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 is a recognized Supply Chain thought leader by SelectHub, named a Top 40 B2B Tech Influencer by arketi group, 50 ERP Influencer by Washington-Frank, a 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, 101 strategies for creating bold customer promises and profits. A regular content contributor on topics including 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.                                        


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



What’s Going On with Asia Supply Chains

June 25th, 2020

 

Supply chains are quite tenuous, and China drives the most volume:

  1. Coronavirus: Beijing is under a soft lockdown with a surge of virus cases. Although Beijing doesn’t impact trade, it is another sign that China vastly under reported previously and it is likely to have a new surge of coronavirus and plant closures.
  2. Manufacturers in China: Small and medium size manufacturers are not doing well. They are struggling to keep up since they had to continue paying people even when they weren’t producing. Are you watching your quality and cash?
  3. Vietnam: so far, they are faring pretty well and companies that moved prior to coronavirus and quite happy with service; if they hadn’t yet moved prior to coronavirus, it is likely on hold due to the disruption.
  4. Global transportation: Volume has picked up at all 3 ports in China (although they are dealing with a short-lived vessel shortage) and we aren’t seeing goods movement issues.

International rates are rising: they are up a hefty 12% from Asia to Northern Europe & 32% on the Transpacific route. They have taken capacity out and are slow to add it back. We’ll have to stay tuned to see what will happen.

 

 

Are you taking the continued disruption into account in your supply chain plans?

 

What Should We Consider and/or What Impacts Could Arise?

Undoubtedly, you should be thinking about how to proactively manage your global footprint:

  1. Re-evaluate your sourcing strategy: as many are already doing, the least you should do is re-evaluate your sourcing strategy. Generally speaking, the total landed cost for non-commodity products is less expensive in the U.S. than in China. Check your total cost and review multiple sourcing alternatives.
  2. Review your customers’ needs: Undoubtedly, consumer and business buying behaviors are changing during these unprecedented times. What is happening with your customer base? What can you do to get in front of the changes and see opportunities for expansion?
  3. Review your customers’ requirements: Understanding where your customers are located is a good start. It can have a profound impact on your supply chain, where you should produce and how you should set up your supply chain infrastructure. In addition, what expectations do they have? Are they expecting immediate delivery? Are their preferences changing to deliver at home? These questions will have a profound impact on your supply chain setup.
  4. Understand your transportation options: Clearly, understanding the speed, cost and effectiveness of your transportation options will be integral to your supply chain infrastructure.
  5. Understand likely disruption: Do a risk assessment to understand the likely disruption and risk associated with your options. You certainly have a different situation in China vs. Europe vs. Brazil.

Read more about this topic as well as your strategy, priorities, key trends, and your restart recipe for success in my eBook,  Future-Proofing Manufacturing & Supply Chain Post COVID-19 . If you are interested in a rapid assessment, please contact us.