Tag Archive: supply chain

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?

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!



Let’s Manage Inventory for Our Customers

May 16th, 2019

inventory managementAmazon is propelling this age-old topic into a new realm. Since the CEO of the Ontario Airport Authority used the phrase “last mile” has become “last minute” on a panel I facilitated last year, I have shamelessly reapplied his brillant quote.

If customers don’t even know what they want, how can we? Interestingly, we have found that many customers, even the seemingly most confused and  volatile ones, have a pattern to their demand. If we take a holistic view of their demand and inventory planning processes from beginning to end and from high level to the minute detail, solutions emerge.     

One strategy that has proven quite effective is to “remove the middleman”, the customer himself. Instead, with access to demand information direct from the customers’ customer or end user, you can not only manage the extended supply chain inventory better for a happier customer but you also can improve margins, efficiencies and cash flow to boot.

In consumer products circles, this strategy often termed, vendor managed inventory is usually dictated by the “big guys”.  In aerospace, it is also expected but termed differently, customer based ordering, min max and other names. It is also common in healthcare as we won “supplier of the year” for two years in a row because of what we accomplished with VMI for Cardinal Healthcare when I was VP of Operations at PaperPak. We decided to make it a strategy for key customers at PaperPak, even though Cardinal is the only one who requested it. Should you consider a strategy like this to get ahead of your customers’ demand?  It is just another aspect in creating a resilient supply chain. Check out our series on the topic.

 

 



Manufacturing & Supply Chain Expert, Lisa Anderson, Garners Executive Predictions for 2019: Opportunity Abounds

February 26th, 2019

CLAREMONT, CALIFORNIA, February 25, 2019 –  Manufacturing and Supply Chain Expert Lisa Anderson, MBA, CSCP, CLTD, president of LMA Consulting Group Inc. asked key business owners and executives about their predictions for the state of business in 2019. From aerospace and defense to food and beverage to building products, the perspectives may be different, but the outcome is the same: Opportunity Abounds.

“During these volatile, Amazon-impacted, ever-changing ‘new normal’ times, executives are responding in new and creative ways to proactively address business risks such as global trade tensions and cyber security concerns. They do this by maximizing vast opportunities arising from changing business conditions and embracing technology advancements,” Ms. Anderson commented. LMA Consulting Group works with clients on manufacturing strategy and end-to-end supply chain transformation that maximizes the customer experience and enables profitable, scalable, dramatic business growth.

From a focus on ever-changing customer needs and increased expectations driven by the Amazon-effect to tight labor and transportation markets and responding to rapid growth, the outlooks and attitudes are positive. LMA Consulting Group just released the findings of the executive predictions for 2019.  “Manufacturing & Supply Chain in the New Normal” can be downloaded at no charge from the LMA website.  “While we saw innovation, IoT, artificial intelligence, big data predictive analytics and additive manufacturing as game changers in 2018, companies are starting to turn these technologies into customer success stories as well as bottom line improvements. Yet, with the increased volatility, uncertainty and distraction of key talent, organizations must raise the bar and innovate to thrive in 2019.

With innovation being a key driver of success for manufacturers, Ms. Anderson recently participated in the Manufacturing Council of the Inland Empire’s Annual Manufacturing Summit where she presented innovation awards to manufacturers.  Winners included:  Ingram Micro, Process & Resource Efficiency Award; Phenix Technology, Inc, Human Capital & Talent Award; Brenner-Fiedler, Product Innovation Award and Harvey Mudd College for work with Laguna Clay Company, Innovation by Students Award.

“We predict that the successful manufacturers and distributors will put their employees first to create a customer-centric and resilient end-to-end supply chain. Opportunity abounds” she concluded.

 

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



Resiliency & Innovation Go Hand-in-Hand

February 22nd, 2019

With the high level of volatility and disruption that is commonplace in today’s business environment, creating resiliency has become a must. What we’re seeing is that creating resiliency and an innovative culture go hand-in-hand. If we find a resilient team, they are also innovative, and if we find one that is fixed in nature, it is very unlikely to be resilient. Do you have an innovative culture?

Innovation is very misunderstood. It doesn’t require “new” in most cases.  It is rare to find something completely new unless you are in certain industries such as the pharmaceutical industry.  Even Apple didn’t create the original idea behind the iPod which has now been incorporated into the iPhone.  It actually came from the Sony Walkman (remember those?). At that time, no one knew they needed to walk around with music. We have come a long way, and Apple has made that easy!

Since the Innovation Awards at the Manufacturing Summit provide a good example of different areas of innovation, I thought it would be beneficial to list them below to spur thinking:

Take a quick look at the video as well which talks to the innovation awards.  Of course, these are just those recognized at the Manufacturing Summit currently (and we are always interested in feedback and ideas).  There are many more categories. Perhaps it will stimulate a few ideas though.

innovation for project successInnovation doesn’t have to be complicated and complex.  What unexpected successes have you had?  Can you find ideas in those?  I just returned from a global consulting strategy group meeting, and one of our members did exactly that to spur one of his companies forward from struggling with intense competition and no way to stand out from them to rapid and significantly more profitable growth.  I am confident that this same type of success can be found in almost every client. Are you looking?

We can help you with that. Contact us if you’d like to discuss further.