Tag Archive: supply

Demand & Supply Are Out of Whack!

April 27th, 2020

Demand and supply are out of whack to say the least. Manufacturers that supply toilet paper, food, healthcare products and other essential goods are seeing a surge in demand whereas those that don’t are seeing demand plummet. China was under lock down previously (causing a delay in the pipeline), and they are now operating around 80-90%; however, now we are under lock down. Retail sales are non-existent, and so the warehouses are full of the wrong products. Thus, inventory and transportation assets are typically in the wrong place at the wrong time in the wrong quantity. Watch my webinar on just this topic to learn more…

What Should We Consider and/or What Impacts Could Arise? It will not be business as usual as you ramp back up. Be vigilant in staying on top of what is happening and how quickly you can turn the dial to ramp back up. If you go too fast, you could get your supply chain further out of whack and anger customers. On the other hand, if you ramp up too slowly, not only will you lose money but you will also see your competition speed by. Instead, be proactive prior to the end of the shutdown to start things in motion, pay close attention to what’s happening and adjust accordingly. Stay tuned for my eBook,  Future-Proofing Manufacturing & Supply Chain Post COVID-19 

Please share your stories, challenges, ideas and successes. Contact us and please join in our free webinar series and listen to our archives.

 



Are You Drinking From a Fire Hose in Managing Supply Chain Disruption?

April 10th, 2020

Every client is experiencing unprecedented disruption! Unfortunately, one had to shutdown since their product is considered non-essential. Most others continue to operate to varying levels. Most manufacturers and distributors are considered critical because they supply defense, the construction/ building industry, the food and beverage industry or the healthcare/ medical products industry.

Every client is experiencing unprecedented disruption! Unfortunately, one had to shutdown since their product is considered non-essential. Most others continue to operate to varying levels. Most manufacturers and distributors are considered critical because they supply defense, the construction/ building industry, the food and beverage industry or the healthcare/ medical products industry.

However, it is NEVER that simple. It matters the type of business/ consumer your customers’ customers serve. For example, in one of my food clients, since many Starbucks stores are closed, the products they sell into this channel are down whereas, the products they sell into grocery stores are up. And this is just the customer side of the equation. Do you know who your suppliers’ suppliers’ suppliers are? They are likely impacting your level of disruption.

Are you drinking from a fire hose, looking for ideas? Tune into our Navigating Through Volatility webinar series to get up-to-date with the latest status, gain ideas to successfully navigate the disruption and strategies to emerge successfully and well-positioned for success.

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

Look no further than our webinars to learn more about the challenges, concerns, ideas and opportunities for navigating through volatility successfully.

Please share your stories, challenges, ideas and successes. Contact us and please join in our free webinar series and listen to our archives.

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JIT Might Not Be What it is Cracked Up to Be?!

April 2nd, 2020

Just-in-time might not be what it is cracked up to be! Certainly, the coronavirus impacts should give us reason to question this rule at face value. Are you running so tight that you only have one bin, pallet or small supermarket to keep your facility running? If so, the question extends to your end-to-end supply chain.

Let’s assume you are a critical manufacturer struggling to produce key items during this coronavirus pandemic. Your suppliers should not be on lockdown since they support a critical infrastructure business; however, that doesn’t mean you’ll be fine. There are many considerations to review:

  1. Source of supply: Are your suppliers located in Asia and unable to staff during the peak of the coronavirus? Do you know what type of delays you’ll experience? Do your suppliers have contingency plans?
  2. Your suppliers’ suppliers: Even if you have a good handle on your suppliers, do you know the status of your suppliers’ suppliers? In an interconnected supply chain, we are only as strong as our weakest link. Who is your weakest link?
  3. Your transportation infrastructure: Even if your suppliers have product, can it get to you? Within what timeframe?
  4. Backups: No matter how well you’ve planned, the question is whether you have backups for critical materials/ ingredients that will ramp up rapidly as needed. Hopefully your supply chain is diversified geographically.
  5. Your customers: Are you in lockstep with your customers so that you are proactively managing demand or are peaks and valleys a surprise? Of course, the coronavirus was unexpected but the degree you fully understand your customers will determine your reaction time to changes in demand.
  6. Positioning of inventory: Do you have critical inventory positioned throughout your end-to-end supply chain?
  7. Your digital supply chain: Are you able to see into your extended supply chain? It could provide quite a benefit at this point.
  8. Additive manufacturing & robotics: Are you able to keep running with less people, socially distanced people and/or print on demand?

Using JIT (or any concept for that matter) without taking a 360 degree view is a bad idea! The cousin of JIT is lean manufacturing. I gained the attention of Wiley by writing that lean is just uncommon common sense (which of course simplifies it in order to make a point), but perhaps it is something to think more about. Have you put all these trendy concepts through a common sense filter? How about a risk filter? Let’s hope so! Otherwise you can be in a critical business and still not producing and running customers out of stock.

What is the answer? It depends! If you have put thought into your supply chain strategy upfront, considered risks, diversified your supplier base, invested in quality checks and top talent, and treated your employees well, it is likely your version of JIT will prove successful. On the other hand, if you saw JIT as a way to reduce inventory and were short-sighted in looking at your end-to-end supply chain and treating your employees and partners as trusted colleagues, you will likely suffer.

Getting ahead of the curve might be the only avenue to success. Consider creating a resilient supply chain and future-proofing your supply chain. Stay tuned and read more about it, and If you are interested in discussing a supply chain assessment, please contact us.

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Beware of New Data Law in China & Its Impacts

February 27th, 2020

According to the Epoch Times and International Business Attorney, John Tulac, China’s new cybersecurity law poses a big risk for anyone doing business in China. In essence, if you send data to or from China, your data can be audited at any time. It certainly is concerning from many standpoints such as intellectual property, trade secrets, and more. Listen to my short video on this new law and impacts to consider.

John and I talk about this law as well as many other topics related to doing business in China, alternatives to China and the new USMCA trade deal. Listen to our new interview in our Future-Proofing Manufacturing & Supply Chain series. Undoubtedly, you’ll pick up a few worries along with ideas/ potential solutions. Let us know what you plan to do.

What Should We Consider and/or What Impacts Could Arise?
Many of our clients do NOT import from China.  So you might be thinking, why does this apply to me? If companies start leaving China in a mass exodus, you will certainly be in competition for new manufacturing options such as Vietnam, skilled labor in the U.S. and Mexico, technical skills to automate, use 3D technology, etc. And this is before thinking about indirect impacts. If the supply chain moves away from China, where will it move? There could be dramatic impacts on ocean lanes, political unrest throughout the world, raw material supply and supply and demand. We have never met a client unconcerned about these topics. After all, profitable growth is the name of the game!

At a minimum, no matter whether your supply chain relates to China, we recommend you re-think your manufacturing operations and extended supply chain. Are you dependent on any core suppliers? Are you spread too thin among suppliers? How are you selecting suppliers? And that is just the first topic in a line of many when re-evaluating your end-to-end supply chain. How about the broader topics of whether your manufacturing and supply chain is agile? Fast?

Start by re-evaluating your manufacturing and supply chain road map and think through related impacts. These topics certainly relate to our new LMA-i, LMA-Intelligence series including the Amazon Effect, the Resilient Supply Chain and Future-Proofing and contact us if you’d like an assessment path-forward plan to accelerate your bottom line and customer performance.

 



Future-proofing Your Supply Chain

February 21st, 2020

Disruptions abound in supply chain circles. Just consider any of the following recent events: the tariff war, global unrest, the Coronavirus, natural disasters such as the volcano in the Philippines, the Hong Kong protests and more.

We have never had a client that could claim that 100% of the extended supply chain (from suppliers’ suppliers to customers’ customers) was inside the U.S. So, we have to be prepared to navigate these types of disruptions and the related impacts.

Disruptions certainly go beyond your physical supply chain. What about your human capital, technologies (accompanied with processes) and strategies? Refer to our article on future-proofing your skills gap and assess which risks might be on the horizon in your industry.

When it comes to technologies, there is no doubt that emerging technologies are gaining steam and are starting to transform supply chains. Just consider the application of collaborative robots, automation, RPA (robotic process automation), artificial intelligence, IoT, blockchain, and predictive analytics to name a few. Big name companies are dropping big dollars into these technologies. When thinking about strategy, remember strategy is no longer a multi-year exercise. We must be thinking in terms of strategic sprints. Who knows what will happen beyond a year out!

Several high-level categories should be assessed as you think about your supply chain:

  1. Sourcing – Are you sourcing from China? Is this a viable path forward to source 100% from China? There are increased risk factors to consider. Listen to an interview I conducted with John Tulac, international business attorney, on future-proofing and doing business with China. It is time to reevaluate your supply chain footprint.
  2. Logistics – There are significant disruptors transforming this industry, ranging from e-commerce and the the Omni-channel to robotics, additive manufacturing and the digitization of the supply chain. If you aren’t incorporating these impacts in future-proofing your supply chain, you will be left in the dust. These are concepts of focus for the consortium for logistics success in the Inland Empire to enable companies to stay informed and keep up with the fast pace of change.
  3. Manufacturing – Industry 4.0 is transforming manufacturing and changing the landscape. It will be a pivotal year that separates the winners vs the losers as advances are made. See what the National Association of Manufacturers’ Leadership Council sees as critical issues
  4. Demand & Supply – There is no doubt, there is a keen interest by business owners, executives and private equity leaders on creating predictable demand and forecasting sales. The more we understand our demand plan, the better our operational performance, supplier performance and customer performance. Read about SIOP (sales, inventory, operations planning) and how it can help future-proof this area.
  5. Inventory – As the disruptions abound and executives fear a slow-down, the proactive management of inventory and advanced collaborative programs are gaining in relevance. Pick up some tips and strategies in our recent article ” Inventory Management as Fashionable as Automated Intelligence for Distributors” for ACHR News.
  6. Metrics & Predictive analytics – Keeping a pulse on performance should remain a top priority while forecasting what will be needed.

Getting ahead of the curve might be the only avenue to success. Consider creating a resilient supply chain and future-proofing your supply chain. Stay tuned and read more about it, and If you are interested in discussing a supply chain assessment, please contact us.

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Forget About Reducing Inventory; Perhaps You Have the Wrong Supply Chain Strategy