Tag Archive: supply chain

Hurricane Dorian & Your Supply Chain

October 13th, 2019

 

Hurricane Dorian certainly took over the news as it threatened devastation. I’ve included YouTube from USA Today of the storm. People were evacuating up and down the east coast. Although the impact on people’s lives is certainly more important, there is a dramatic impact on businesses, as well. As logical as it sounds for east coast manufacturers, distributors and other businesses to be impacted while preparations are underway and the storm passes, it also had a profound impact on customers, suppliers and their extended supply chains. Are you prepared to navigate these types of disruptions?

What Should We Consider and/or What Impacts Could Arise?When I was VP of Operations and Supply Chain for a mid-market manufacturer, a hurricane devastated Greenville, North Carolina, the location of our largest manufacturing facility. Luckily, since the facility used to be owned by P&G, they evaluated risks as a normal course of operations and the facility was on high ground and not affected.  Yet, the facility was closed and nothing could get in or out. That situation alone proved the importance of thinking ahead to key risks, managing proactively and creating a resilient supply chain.

An east coast issue is no longer an east coast issue. For example:

  • Do you use the same carriers that might be tied up on the east coast?
  • Are your servers on the east coast?
  • Do you have any suppliers or customers on the east coast?
  • Do you have suppliers who supply other customers on the east coast? Or do your customers have other suppliers or customers on the east coast? Most likely YES!

The bottom line is 80% of my clients are impacted directly (suppliers, customers, transportation partners) and 100% are impacted through their extended supply chain. At a minimum, don’t wait to think about disruptions until they are imminent. Build agility, flexibility and resilience in your business as well as within your extended supply chain. If there ever was a topic related to the resilient supply chain, this would be it! We have recently upgraded and added content to our resilient supply chain series.



Do You Have a Resilient Supply Chain?

August 11th, 2019

supply chain strategyThere is extreme volatility in today’s end-to-end supply chain.  Are you keeping up with all the changes?  For example, think about the following:

  • Tariffs & trade impacts
  • Data & security breaches
  • The Amazon Effect
  • New technologies such as 3D printing
  • Natural disasters, port strikes and more

The Resilient Supply Chain
Instead of allowing each of these incidents to impact you, we must create a resilient supply chain.  Are you proactively thinking about these topics?

  1. Agility– Instead of seeing agile as an IT or project management concept, we should be thinking about how to incorporate agility into every step / every piece of our end-to-end supply chain.  If a customer changes his mind, are we flexible enough to handle it?
  2. Speed – Is your supply chain set up for speed?  Customers are unwilling to wait.  I’ve found that I’m unwilling to wait anymore.  If I wait for a trusted advisor, service provider, subcontractor or even a client, it delays LMA Consulting. For us to be on the leading edge with clients, we must be ahead of the curve; not waiting for something that will be obsolete before we get it!  That is one thing we appreciate about our webmaster; he is speedy and understands priorities which is how we are able to announce a major content upgrade (thanks Scott).
  3. Predictive – In today’s complex world, we must also be predictive so that we are prepared from an 80/20 standpoint for the most likely unexpected events, trends and bumps in the road.  Thinking three steps ahead can go a long way in creating resilience.
  4. Collaborative – One of key components to creating a resilient supply chain with multiple partners is to collaborate.  There is no time to establish relationships and find ways to navigate volatility together if you haven’t already set a collaborative tone.
  5. Adaptive team – No doubt; the core to resilience is having an adaptive team where each members understands where he/she is headed and feels empowered to handle obstacles as they arise.

Have you thought about each interrelated partner, piece or parameter in your end-to-end supply chain?  How can you set it up to be resilient?



Manufacturing and Distribution Expert, Lisa Anderson, Confirms Inventory, Cost and Logistics Pressures in Supply Chain

July 12th, 2019

CLAREMONT, CA,  July 9, 2019 –  Manufacturing and Supply Chain Expert Lisa Anderson, MBA, CSCP, CLTD, president of LMA Consulting Group Inc. confirms that supply chain resiliency requires acute attention to inventory and cost pressures for manufacturers and distributors.  As predicted in her 2019 forecast, “Manufacturing & Supply Chain in the New Normal”, ever-changing customer needs, increased expectations, tight labor and transportation challenges are the ‘new normal’ and key issues for manufacturing and the supply chain.

Economic volatility and what Ms. Anderson calls the Amazon Effect – high customer expectations requiring rapid deliveries, accessibility and flexible, customized service – is putting pressure on costs and inventory levels.

“It’s like the perfect storm, tariffs, last minute changes, rapid delivery requirements and increased customer demands are challenging the supply chain. In turn, inventory levels are increasing.  Add in elevated labor and logistics costs and it gets tougher and tougher to control costs,” Ms. Anderson explains.

The result is an increased focus on improving inventory turns to accelerate cash flow, as well as an emphasis on re-shoring and near-sourcing.

“Aligning sales forecasts with operational capabilities is critical for manufacturers to thrive. In our 14 years of consulting, sales, inventory and operations planning (SIOP) has consistently delivered the strongest increase in business value. Leveraging best practices in demand planning and better aligning sales forecasts with operational capabilities will drive significant improvements in customer performance and the bottom line,” she says.

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. As a result of her work with manufacturers and distributors and financial knowledge of factors affecting the bottom line, Ms. Anderson has been appointed by the Logistics Council of the Inland Empire Economic Partnership (IEEP) to lead the effort to develop a consortium for logistics, supply chain and advanced manufacturing success.

“Inland Southern California leads California in job creation and manufacturing growth. We are in an ideal situation to become a global leader in logistics, advanced manufacturing and export excellence. I’m very excited to be spearheading the effort with the IEEP to create a Consortium of Excellence to support the future of the industry and accelerate regional growth,” she says.

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.
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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 Beauty of the World & Why It Relates to Work

June 5th, 2019

This is the Piazza IX Aprile in Taormina, Sicily, which is a square known for the breathtaking view of the azure Ionian Sea and of the Mount Etna. I adored this night view from a nearby rooftop (of course while sipping limoncello, an Italian lemon liquor known in Southern Italy).

I came to Sicily to meet my strategy group.  We had some excellent sessions.  However, that isn’t the tie that I refer to in the title of this blog. Seeing the world absolutely relates to business. Of course, this would be done ideally in person but you can also absorb quite a bit watching TV or by reading magazines. Understanding different cultures, business customs and what’s relevant to a country or area will come in handy. We live in an interconnected world with customers, suppliers and other trusted partners throughout the world. I cannot think of a client that doesn’t have a material that originates in another country somewhere down-the-supply chain or one that sells to other countries at least somewhere up-the-supply chain. Can you?

Understanding what is important to your customers, suppliers, employees (as they also come from around the world or have related interests) or colleagues is quite relevant to bottom line business results.

One tip to implement this week:
Why not ask your top customer, supplier, employee or colleague about what is important? You could ask about materials relevant to your supply base. Undoubtedly, you’ll find out about something relevant or interesting to build a stronger relationship at a minimum. You could ask your customers about where they sell your product or how it is perceived in another country, etc.? Of course, your question will relate to what type of product or service you provide, so you should make it relevant to your business.

And, lastly, why not talk bring the topic up with your employees and colleagues. You might find that they have customs that are important to them or something quite relevant to doing business in that country or area. Just by posting pictures on Facebook, I found quite a few contacts who love Taormina. Who knows what will happen when I ask them about it!