Tag Archive: supply chains

Is Digitization Hype?

March 8th, 2017

Well, let’s start with a definition of digitization. According to CIO.com, McKinsey defines it as technologies that virtualize and automate products, services and supply chains. We certainly hear about digitization in the news frequently; however, according to McKinsey, even though CIOs embrace it, digitization is a slow-moving process.

On the other hand, don’t see this as an opportunity to take a break. According to McKinsey, 49% of the leading companies are investing in digital more than their counterparts do, compared with only 5% of digital laggards. Perhaps it is an opportunity to leapfrog the competition?

technology

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

Digitization isn’t going to take over our day-to-day operations anytime soon; however, if we want to lead in our industry and provide exceptional service to our customers, we better get ahead of this curve, no matter how slow-moving at the moment. If Amazon has proved anything, it is that everything can change in a heartbeat. Thus, we should get our strategy going and think about what digitization would make sense in our industry. What would help us provide a superior customer experience? I find that is always a good place to start to spur thinking.

It also makes sense to research the best practices in digitization (regardless of industry). After all, if it is a slow-moving process, we cannot rely on our competition and colleagues to be on the leading edge to push us to innovate. Instead, we need to explore what’s working for completely different industries and think about how it could apply these ideas to our industry. With that said, be selective and smart. Do your due diligence but don’t get overly excited about digital technology that won’t provide a competitive advantage or significant value for your organization. Empower your people to open their minds and ideas will flow. You’ll find a gem out there somewhere.

 



Lisa Anderson Named to Business College Board at University of La Verne

January 12th, 2017
Lisa Anderson

LMA Consulting Group’s Lisa Anderson named to the University of La Verne Board of College of Business and Public Management.

Lisa Anderson MBA, CSCP, president of LMA Consulting Group has been named as a board member for the University of La Verne College of Business and Public Management (CBPM), which includes undergraduate programs in business, public administration, and health management as well as masters’ degrees in business, organizational leadership, health, and public administration (NASPAA accredited) and a doctoral degree in public administration (D.P.A).

“I’m honored to have been selected as a board member for the University of La Verne in which the faculty and student are so engaged in business growth,” shares Lisa Anderson. “I am equally excited to share with faculty, students and CEOs how to leverage their supply chains at the upcoming CEO Summit.”

Along with her contribution to the board, Anderson will be leading a panel discussion at the 4th Annual CEO Summit at the University of La Verne. The Summit is focused on helping CEOs and company presidents successfully grow their business and seek remedies for business hallenges. Anderson will tackle the increasing importance of supply chains and how the end-to-end supply chain from your suppliers’ suppliers through manufacturing and to your customers’ customers, can contend with global supply chain forces, innovate and find ways to provide Amazon-like service levels while increasing profitability and accelerating cash flow in her “Leveraging Your Supply Chain for Growth and Profitability” panel discussion.

The 2017 CEO Summit will give area leaders a chance to learn and network and will be held Wednesday, March 15, 2017. For more information, visit the CEO Summit Website or cut and paste this link http://laverne.edu/business-and-public-administration/ceosummit/ into your browser.



Technologies Transforming Supply Chains

December 20th, 2016
artificial intelligence

One of the ways to become cost competitive with lower labor cost countries is to automate. Look for all the new uses for technology in supply chains.

Modern marvels and new information technologies are transforming supply chains. Automation, robots, AI (artificial intelligence), 3D Printing, Bitcoin technology and the IoT (internet of things) are changing the way we look at supply chains. Are you thinking about any of these technologies down-the-line? Or are you thinking about the impacts of your competitors pursuing them? You should!

We partner with clients to keep them at the forefront of these information technologies. At the core, we partner with executives to help them select the optimal ERP system to support their business objectives. Certainly, automation has always been a hot topic. Recently, AI and predictive analysis have become popular as executives think about making strategic decisions. Many clients are also thinking about the strategic value of data and how they can utilize data from their extended supply chain for mutual benefit.

We remember robots being tested 25 years ago and so they are not “new” yet they are gaining in popularity. One method to become cost competitive with low labor rate countries, yet source supply closer to customers for rapid delivery, is to automate. Using robots and automated conveyor systems is commonplace in distribution and material handling. Manufacturers are also gaining steam on these topics. Are you evaluating these alternatives? At a bare minimum, my most successful clients are evaluating, testing and trialing. Similar to the outsourcing craze of the last 10 years, there is no reason to jump on the bandwagon for the sake of following the crowd; however, looking into the options is prudent.

The Internet of things is taking over in our interconnected world. Are you looking into what this could mean for your industry? And to throw a somewhat radical-sounding concept out there — how about bitcoin? There are many potential uses for this technology in supply chains today.

 

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ERP Project Success: How to Be Part of the 20%

December 1st, 2016
ERP success

Even as the value of ERP systems becomes more apparent successful implementation is still elusive. Companies that focus on people, design, and testing the limits have better results.

More and more clients are pursuing ERP implementation projects as executives realize they need better tools to support business objectives– growth, service, margins, cash and the like.

When implemented well, ERP systems can support substantial business growth without the additional investment in resources. Certainly, as the minimum wage goes up and workers’ compensation and healthcare are such significant issues, it is something many executives are thinking about! However, ERP systems can do much more – they can help collaborate with customers and suppliers. Those with the best-extended supply chains will thrive in the end, and so it makes sense to take a look at upgrading ERP.

Thus, finding a way to successfully implement an ERP system is of paramount importance, yet the statistics dictate less than stellar performance. Typically, 80%+ of ERP system implementations fail to achieve the expected results. As experts in this space, we can attest that several of these are due to unrealistic expectations without the associated resources and efforts to ensure success; however, either way, ERP success can prove elusive.

Therefore, understanding how to give you a leg up with strategies for success can be vital. Ignore all the best practice mumbo-jumbo and focus on what will really matter:

1. It’s all about the people: As with almost every business success, ERP success is no different. It goes back to the leader – and the team. Have you assigned whoever is available to lead the project team? Or have you put thought into it? Have you freed him/her up from their regular activities or made sure he/she can dedicate the time required? Are you saving your “A” players for growing the business and your day-to-day responsibilities instead of ERP? Sound odd? Well, we come across this on a daily basis in our consulting business. How about the software supplier’s project team? Why should you be worried about them? You shouldn’t unless you are interested in success.

For example, we’ve been involved in several ERP selection projects lately and have stayed involved to ensure the process designs would support business objectives in the best way possible, and, unfortunately, we can convey countless examples of the 80% that run into issues with people. For example, in one case, the project leader was on top of things – truly much better than the average project leader for the size company, yet the project still struggled due to people issues. The software supplier ran into trouble with their project manager. You never know what can go wrong and so it’s smart to remember to keep your eye on the importance of people.

2. Focus on design: The reason we often stay involved with the design process is that this is one of the critical success factors to ensuring ERP implementation success. The quandary is that this type of role requires a broad and diverse skillset, rarely found in project managers.

The skills required include a broad, cross-functional process expertise, an understanding of database design, an understanding of down-the-line impacts of typical system transactions, an understanding of report writing/ programming and the ability to communicate effectively and bridge the gap between the technical and application resources. In our experience, we run across this type of resource 5% of the time in our clients. On the other hand, we run across this type of skillset perhaps 30% of the time with the ERP resources; however, the really bad news is that even though the capability exists 30% of the time, it is used perhaps 10% of the time. The ERP supplier does not want to dictate the design as it will be “their solution” instead of the “client’s solution”, and it is a trick to communicate effectively enough such that the client believes it is their idea or is accepting of the information.

Is it any wonder ERP projects fail miserably?

3. Focus on what could go wrong: It is often rather difficult to keep the ERP project team positive and moving forward because they are causing disruption to the day-to-day success of the business and pushing the envelope with new ideas (sometimes perceived to be threatening or ill-conceived) and process changes which might or might not be accompanied by organizational changes (another key issue with ERP success). Thus, no one wants to create more havoc by deliberately creating tension, thus, forcing practice when mistakes are made and transactions go awry is overlooked. However, this is exactly what must occur to ensure success. Deliberately try to screw up the system when testing. It is not to be a “naysayer” (which can sometimes be the perception) but it is to make sure the team knows how to back out of bad situations. It is far better to “break” the system in test than with your #1 customer!

We cannot tell you how much nonsense we’ve heard about “system XYZ” is set up to perform best practices and so the team just doesn’t want to deal with change. In 95% of the situations, this statement isn’t true. Instead, forget about all the hoopla about best practices and focus on these 3 keys to success; results will follow.

 

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ERP Project Success: How to Be Part of The 20%

November 2nd, 2016
ERP Success

More and more clients are pursuing ERP implementation projects as executives realize they need better tools to support business objectives – growth, service, margins, cash and the like.

When implemented well, ERP systems can support substantial business growth without the additional investment in resources. Certainly, as the minimum wage goes up and workers’ compensation and healthcare are such significant issues, it is something many executives are thinking about! However, ERP systems can do much more – they can help collaborate with customers and suppliers. Those with the best-extended supply chains will thrive in the end, and so it makes sense to take a look at upgrading ERP.

Thus, finding a way to successfully implement an ERP system is of paramount importance, yet the statistics dictate less than stellar performance. Typically, 80%+ of ERP system implementations fail to achieve the expected results. As experts in this space, we can attest that several of these are due to unrealistic expectations without the associated resources and efforts to ensure success; however, either way, ERP success can prove elusive.

Therefore, understanding how to give you a leg up with strategies for success can be vital. Ignore all the best practice mumbo-jumbo and focus on what will really matter:

1. It’s all about the people: As with almost every business success, ERP success is no different. It goes back to the leader – and the team. Have you assigned whoever is available to lead the project team? Or have you put thought into it? Have you freed him/her up from their regular activities or made sure he/she can dedicate the time required? Are you saving your “A” players for growing the business and your day-to-day responsibilities instead of ERP? Sound odd? Well, we come across this on a daily basis in our consulting business. How about the software supplier’s project team? Why should you be worried about them? You shouldn’t unless you are interested in success.

For example, we’ve been involved in several ERP selection projects lately and have stayed involved to ensure the process designs would support business objectives in the best way possible, and, unfortunately, we can convey countless examples of the 80% that run into issues with people. For example, in one case, the project leader was on top of things – truly much better than the average project leader for the size company yet the project still struggled due to people issues. The software supplier ran into trouble with their project manager. You never know what can go wrong and so it’s smart to remember to keep your eye on the importance of people.

2. Focus on design: The reason we often stay involved with the design process is that this is one of the critical success factors to ensuring ERP implementation success. The quandary is that this type of role requires a broad and diverse skillset, rarely found in project managers.

The skills required include a broad, cross-functional process expertise, an understanding of database design, an understanding of down-the-line impacts of typical system transactions, an understanding of report writing/ programming and the ability to communicate effectively and bridge the gap between the technical and application resources. In our experience, we run across this type of resource 5% of the time in our clients. On the other hand, we run across this type of skillset perhaps 30% of the time with the ERP resources; however, the really bad news is that even though the capability exists 30% of the time, it is used perhaps 10% of the time. The ERP supplier does not want to dictate the design as it will be “their solution” instead of the “client’s solution”, and it is a trick to communicate effectively enough such that the client believes it is their idea or is accepting of the information.

Is it any wonder ERP projects fail miserably?

3. Focus on what could go wrong: It is often rather difficult to keep the ERP project team positive and moving forward because they are causing disruption to the day-to-day success of the business and pushing the envelope with new ideas (sometimes perceived to be threatening or ill-conceived) and process changes which might or might not be accompanied by organizational changes (another key issue with ERP success). Thus, no one wants to create more havoc by deliberately creating tension, thus, forcing practice when mistakes are made and transactions go awry is overlooked. However, this is exactly what must occur to ensure success. Deliberately try to screw up the system when testing. It is not to be a “naysayer” (which can sometimes be the perception) but it is to make sure the team knows how to back out of bad situations. It is far better to “break” the system in test than with your #1 customer!

We cannot tell you how much nonsense we’ve heard about “system XYZ” is set up to perform best practices and so the team just doesn’t want to deal with change. In 95% of the situations, this statement isn’t true. Instead, forget about all the hoopla about best practices and focus on these 3 keys to success; results will follow.

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