Tag Archive: supply chain

The Value of Collaborating with Strange Bedfellows

February 19th, 2019

The topic of collaborating with strange bedfellows has recently come up repeatedly. There can be significant value and strategic advantage created in collaborating with unlikely partners if there are clear objectives, trust and an open mind. Just think about Amazon’s collaboration with the U.S. Postal service. Amazon is clearly famous for rapid, same-day, even Sunday deliveries whereas the U.S. postal service is definitely not known for agility and speed yet they understand and are proficient with the ‘last mile’.

Kash Gokli & I host the Harvey Mudd executive roundtables, and the topic of collaborating with competitors as well as unlikely partners arose in our recent roundtable. In the ‘right’ situation at the ‘right’ time, it can maximize service and value. Also, I am a Board member of the Inland Empire Economic Partnership and member of the Southern CA Logistics council, and this topic of collaboration has come up on multiple occasions. We recently led a collaboration session with 10 academic institutions. Of course, they all compete from several respects yet there are opportunities for 1+1+1 = 25. And this is just the beginning. When it is put together with collaborations with industry and government, perhaps 25 can turn into 100 or 1000. Last but not least, I met with UCR students last night to encourage their involvement in manufacturing and supply chain and invite their participation in APICS-IE. We had this exact conversation about collaborating with their competitors (Cal Poly Pomona, CSUSB etc.).

Are you exploring collaborations with strange bedfellows?

One tip to implement this week:
Perhaps it is as simple as opening your mind to new possibilities. Think about the person or entity you would most want to avoid joining your collaboration. What if you gave it a chance? For example, I remember a distinct time a few years ago when I was involved with a group. Someone in the group brought up a new member who would be the last person I’d want to join our group. I felt like I was collaborating with a diverse set of people, and we were making great progress. I just didn’t like this person. Although I didn’t say it, I cursed my bad luck on the way home because I just wasn’t excited about collaborating.

Fast-forward several months and it turned out that the new participant added unique value that probably would not have occurred otherwise. Although I still wouldn’t want to have dinner with this person outside of our work together, I’m glad I gave it a chance or I would have missed out on fantastic benefits and a learning opportunity. We have all been there, and sometimes we are right to be hesitant. Can you achieve a shared goal? Is trust possible as it relates to the objective? Assuming so, I vote for exploring the opportunity. Perhaps it is the next Amazon/ U.S. Postal Service collaboration.

Collaboration goes hand-in-hand with resilience. In today’s marketplace, there is no doubt the resilient will thrive. If your key supplier or customer is devastated by a natural disaster, power outage or unexpected shutdown or other disruptor, have you thought about collaborating with strange bedfellows to serve your customers? You cannot wait until the issue occurs! Creating a resilient end-to-end supply chain is of paramount importance.

For more information, check out our new resilient supply chain series and contact us if you’d like to have an assessment of your organization.



The Global Logistics Landscape

February 15th, 2019

In the past two weeks, I attended the CSCMP State of Logistics event, am preparing for the Future of Supply Chain & Logistics reception event as part of the leadership team and have debriefed with LMA Associate, Elizabeth Warren who attended the State of the L.A. Port and the State of Long Beach Port events. To summarize, I’ll borrow from the Port of L.A.: “Busier, safer, greener”.

Still number 1 and 2 in the U.S., the ports of Los Angeles and Long Beach increased volume last year to 9.5 million TEUs (twenty-foot equivalent units) and 8.1 million TEUs respectively.  With the threat of tariffs, there was a surge of imports around the holidays, creating record-breaking days in both locations and the second busiest month in history at Long Beach.

Significant progress has been made in terms of air emissions. From 2005 to 2017, diesel particulate matter has decreased by 88%; nitrogen oxide has decreased by 56%; sulfur oxide decreased by 97%; and greenhouse gas by 18%. In terms of targets, there is a goal to reduce greenhouse gasses by 40% in 2030 and 80% in 2050. Certainly, California leads the way when it comes to green and sustainability.

Logistics is around 7.7% of GDP or $965 billion. It has increased around 20% since 2006 yet decreased as a percentage of GDP by 30%. In comparison to other countries, we are far lower with Japan the closest around 11% and China the furthest around 18%. E-commerce is increasing around 15% per year, and it carries high supply chain costs around 25-30% of e-commerce sales.

All modes of transportation were up (airfreight, rail, trucking)! With that said, trucking is 76% of transportation spend and is the 100 pound gorilla. Rates have been on the rise, capacity is tight and shippers have to be more proactive. There are lots of technologies being explored but no near-term, viable solutions to resolve the issues. Again, similar to the ports, there are countless conversations about sustainability.

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

Global logistics is relevant to GDP and to every business that produces, distributes and sells products. Whether an aerospace manufacturer with multiple outside service steps all requiring transportation or Walmart, requiring a supply chain sourced both locally and from afar as well as grocery delivery on the customer side, without logistics, business will cease.

In today’s Amazon-impacted marketplace where quick turnaround, short lead times and frequent order changes are the norm, re-thinking your manufacturing and extended supply chain footprint is becoming a necessity. Whether re-evaluating make vs. buy decisions, re-configuring sales channel structures or revising inventory fulfillment practices, logistics is one component that can no longer be an afterthought.  

In our view, those clients with a resilient supply chain will thrive in this new normal business environment.

To learn more about how to create a resilient supply chain to navigate disruption and achieve peak performance, check out our new series or contact us for customized expertise.



Guest Blog by Jyoti Sharma

January 22nd, 2019

3 Ways AI is Transforming the Supply Chain

Artificial intelligence is increasingly becoming a vital part of the leading supply chain companies and is transforming the supply chain system at a very fast rate, even though many companies aren’t ready for it. The new inventions in the logistics IT solutions & various supply chain technologies are leading the organisations to leave their mark of presence in the race of digitisation. The inculcation of AI in the supply chain will help in collecting the data from various different sources and generate that intelligence, which will further help in making the predictions based on the historical pattern of that particular data. This will help in a smooth running of a cognitive supply chain.

The following trends are responsible for transforming supply chain business:

              1. Autonomous vehicle

Various Automotive Industries that are using artificial intelligent applications involve driverless cars that have received the most attention during the rise of this era. Driverless cars are no more a dream. With the development of technology where powerful computers, GPS systems and other small but distinct notable improvements have come up, Driverless cars are no longer a dream. Making all the procedures technology pro and highly efficient.

              2. Robotic solutions

Robotics solution is the one taken up by many distinctive companies for managing warehouse automations. Companies are using artificial intelligence to forecast what order inventory will arrive and leave the warehouse, allowing the pallets to be placed in the correct positions, boosting efficiency in moving products. Such technologies work best under the influence of efficient warehouse management system only.

            3. Drone deliveries

The popularity of drones is swiftly increasing across various industries like e-commerce and logistics. But still, the growing number of drones is posing new challenges like increasing air traffic, laying optimum air routes, dealing with emergencies like collision and managing drone swarms, among others etc. AI enabled drones are eliminating the last mile delivery challenges as it allows drones and other machines to make decisions and operate on their own on your behalf. AI enabled drone delivery is going to be very beneficial for the local deliveries.  

AI is driving the evolution of digital supply chain networks. As we step into the future, there are various AI powered supply chain analytics softwares that empower you to make decisions proactively based on the diverse data across your supply chain. It helps in making your supply chain responsive and enables you to have a real-time control on your supply chain.

This initiative can help supply chain managers to be more dynamic and efficient in designing strategies. Investing in AI is an important next step for supply chain companies looking to lower costs and improve productivity. Supply chains can also use AI to minimize the repetitive manual tasks and begin automating processes. This can enable the companies to reallocate time and resources to their core business.

Author Bio-

I am a budding and aspiring blogger and my area of interests are Supply Chain, Logistics, Retail Logistics, international Freight etc. Being a writer by profession and by choice I like to contribute to various quality websites especially those who talk about my area of interests.

We grow by making people happy and successful.

Jyoti Sharma

Consultant/Writer

Holisollogistics.com



The News is Paying Attention to Manufacturing: Are You?

January 21st, 2019

It wasn’t too long ago that no one talked about manufacturing. In fact, people thought it had moved to China.  Now, we see it in the headlines frequently. A quick glance in just the past few weeks yields:

  • Airbus is pulling out all the stops to try to make their 800 plane target before year end
  • Durable goods orders rose .8% in November
  • Manufacturing is key to New York’s job creation of 27,000 in energy storage
  • Manufacturing is driving Vietnam’s decade-high growth
  • China’s industrial profits drop for the first time since 2015

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

If you are in manufacturing or relate to manufacturing, pay attention!  There is plenty of opportunity to grow and thrive in today’s business environment. What are you doing to take advantage of the vast potential? It might be that time to take a risk and speed by your competition. Who else will be able to customize and deliver rapidly with a superior customer experience if not you?

Are you searching for these opportunities?  If you create a resilient supply chain, you’ll have a far greater chance to “see” the opportunities as they arise AND you’ll be well-positioned to take advantage of them.  Very few companies predict well but the best ones are agile and navigate quickly and successfully to achieve peak performance while the rest fall by the wayside. For additional strategies to create a resilient supply chain, check out our new series:



What’s Ahead for Supply Chain?

January 18th, 2019

To think about what’s ahead in supply chain, it is important to put it in perspective with what’s ahead in business.  Read our article, What’s Ahead in Business? for details on the key trends impacting business:

  • Importance of the customer experience
  • Taking the holistic view has become a “must”
  • Volatility is the new norm
  • The coming power of manufacturing and supply chain

Given these trends, we predict our most successful clients will be thinking about these themes in the end-to-end supply chain:

  1.  Manufacturing is the Place to Be: Manufacturers are uniquely positioned to thrive. I have to say, I love that manufacturing is getting its due. According to NAM, for every $1 spent in manufacturing, $1.89 is added to the economy which is the highest multiplier of any economic sector.  
  2.  Distributed Inventory Management will be Key to Manufacturing Success: In today’s Amazon-impacted business environment, the customer expects rapid, low cost delivery. Given that the “last mile” has also become “last minute” with customers changing their mind frequently, predictive, distributed inventory management has become a differentiator.   
  3.  Additive Manufacturing will Rise to the Top: Customers want customized products on the fly. Yet, distributors cannot stock everything near every manufacturer, end user and the like. 3D printing can achieve this goal.
  4.  Customized, Rapid Delivery with Amazon-like Service and Efficiency is the Norm: In addition to additive manufacturing, re-shoring and near-sourcing (locating close to customers) are viable solutions to achieve Amazon-like service. The question is how to be efficient, cost effective and visible while serving customers.
  5.  Amazon Prime for Manufacturers is More than a Pipe Dream:  Subscription based models are becoming relevant to manufacturing, just as to Netflix and ERP systems. According to my friend, colleague and author Robbie Baxter, the membership model is just as relevant in manufacturing in transitioning from a one transaction/one-way communication to an ongoing relationship with the customer with a constant stream of feedback.  
  6.  We are Moving to a Digitized Supply Chain:  To address customers’ elevated expectations while continuing to make a profit, manufacturers and supply chain organizations are moving to a digitized supply chain. Artificial intelligence, IoT, the smart factory, robots and more. Don’t embrace technology as a fad.  Instead, embrace technology as a way to achieve a result.
  7.  To succeed, We Must Create a Resilient Supply Chain: Disruptions and volatility abound. Customers expect more. Boards expect more. People are harder to find and retain. Creating a resilient supply chain enables a proactive response to the current environment.

What will you do to get ahead of the curve in the New Year?

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

The Strongest Link in Your Supply Chain

What’s Next in Supply Chain?

Is Your Supply Chain Ready for Growth?