Tag Archive: The Resilient Supply Chain

Manufacturing Expert, Lisa Anderson, Confirms Manufacturers Focused on Customer Experience Drivers

December 21st, 2019

Manufacturing Expert, Lisa Anderson, Confirms Manufacturers Focused on
Customer Experience Drivers

 CLAREMONT, CALIFORNIA – December 19, 2019 –  Manufacturing and Supply Chain Expert,  Lisa Anderson, MBA, CSCP, CLTD, president of LMA Consulting Group Inc., confirms that manufacturers are flexible and responsive to changing customer needs and demands. 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.

“2019 has been a pivotal year for manufacturers.  As turbulence with tariffs, the need to provide immediate response to customer needs and demands and improvements in automation have required capital investments, manufacturers that have responded are coming out ahead. They are near-shoring, reshoring, customizing and focusing on sales forecasting almost to the point of being predictive of demand. And, they are leading in their respective industries,” Ms. Anderson commented.  Nimble response has not traditionally been a term associated with manufacturing.  Artificial intelligence, robots, IoT and 3-D printing have become more mainstream and allow manufacturers to make immediate improvements and reduce lead times.  “We see manufacturers excited about future adaptations of their products, processes and services as well as their collaborations with their extended supply chain to create innovations and make a greater impact,” she said.

The customer experience drivers, awareness of the Amazon effect and the need for a resilient supply chain are messages that Ms. Anderson focuses on when working with clients.  “It’s about differentiating the customer experience while enabling profitability and growth. It may seem that these are diametrically opposed.  Yet, when a collaborative focus with a commitment towards innovation takes place in an organization, great things happen.  Our clients are feeling the impact. Recently, we worked with a client to help them initiate a vendor managed inventory program for their customers, managing the inventory and ordering process.  This allowed for better insight into the extended supply chain which helped them proactively position inventory and build more agile capabilities.  The result was better response to changing customer demand patterns, establishing resiliency in the supply chain and, most importantly, achieving bottom line performance, ” she concluded.

As the calendar rolls to 2020, customers will continue to become more sophisticated and demanding.  The recent squabble between FedEx and Amazon is proof that even the largest of client relationships can change.   In 2020,  future proofing manufacturing operations and the supply chain will fast-track proactive manufacturers to stand ahead of the competition.  Initiatives to position manufacturing are underway, especially in Inland Southern California where Ms. Anderson is involved with the Inland Empire Economic Partnership which is developing a consortium for advanced manufacturing and logistics success. She is also active with the Manufacturing Council of the Inland Empire where she heads the Innovation Awards for the Annual Summit.  “Manufacturing remains a core industry in the U.S. The time is right, and the time is now to focus on future-proofing manufacturing and the supply chain for success” 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 is a recognized Supply Chain thought leader by SelectHub, named a Top 40 B2B Tech Influencer by arketi group, 50 ERP Influencer by Washington-Frank, a 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, 101 strategies for creating bold customer promises and profits. A regular content contributor on topics including 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                                                 

 



Why Supplier Management is More Important Than You Think

June 17th, 2019

Supplier management has been a theme this week. I taught a CSCP (certified supply chain professional) class session about supplier relationship management and SRM software recently. An attendee had a great example of the impact of poor quality.  Her company was sending an entire container load of product back to Asia with defective parts.  This was bound to have negative impacts on the customer. After all, they were already delayed.  Now, they were spending another month on the water to start over again. That led us to discussions on backup suppliers.

Next, I spent quite a bit of time on webinars and calls one day talking about the critical importance of supplier lead time, reliability, safety stock, lot size and how these factors impact our ability to maximize service, profit and cash flow. And, I presented to APICS Ventura on “The Resilient Supply Chain” We had intriguing discussions on the trends of vertical integration, supplier consolidation, allocation of key materials (and how consumer products are gaining priority access with the leftovers being allocated to industrial companies), the impact of tariffs on sourcing, and several more topics.

The bottom line of each of these discussions is that proactive management of suppliers is of ever-increasing importance in today’s Amazon impacted business environment. If you don’t have what you need, when you need it, where you need it, in good quality, and within cost guidelines, you are likely to lose vs. your competition. And, this includes last minute changes! Do you consider your supplier your partner or someone to negotiate with and gain an advantage over?

What Should We Consider and/or What Impacts Could Arise?
It is NOT all about cost. Of course, the hot topic on executives’ minds is how to achieve scaleable growth, so profit and cost are important topics.  Yet, smart executives realize it is quite easy to sacrifice the future by saving pennies in the present. Similar to the mistakes made several years ago when it didn’t matter whether it made cost-sense or not (ie. Boards were demanding outsourcing regardless of the financials), many Boards are demanding supplier concessions without looking at the extended supply chain impacts. Instead, stick up for looking at total cost and taking the value viewpoint! Of course, this means you’ll be focused on costs but it won’t be your sole focus.

We talked about several scenarios where you had to invest financially upfront in order to achieve longer-term success. For example, we talked about keeping a more expensive backup supplier and giving them 20% of the volume. Boards and private equity backers weren’t too happy with the extra cost yet this risk mitigation technique saved the day on more than one occasion. When the material went on allocation, the main supplier struggled or the ports/transportation infrastructure broke down, those who planned for the inevitable bump in the road had uninterrupted supply from the backup supplier and satisfied customers while the competition fell further behind. Are you thinking about your suppliers like a cost or a partner?  You’ll find more information on these types of topics on our resilient supply chain series.

 



Amazon Disrupts Again

April 5th, 2019

According to Bloomberg, Amazon disrupts again. They have abruptly stopped selling products from their wholesalers and are instead encouraging suppliers to sell on their marketplace, transferring the purchasing, storing and shipping of products to the supplier. The marketplace business is already estimated at $250 billion in value which is more than double the online retail business. They also pulled volume from some suppliers less than $10 million annually. If you are in either of these positions, this could be a substantial disruption especially with no notice!

According to the Journal of Commerce, Amazon is also disrupting container shipping with its increased use of its ocean forwarding arm. For example, with its non-vessel-operating common carrier (NVO), Amazon is gaining greater control over its internal supply chain but the key is whether it is thinking about building a supply chain platform.

Amazon isn’t the only disruptor. Are you proactively thinking about navigating disruption?

What Should We Consider and/or What Impacts Could Arise?
Hardly a day goes by without some sort of disruption, natural disaster or other event such as the Boeing 737 Max concerns. There is no way you can be prepared for every potential issue that will arise. With that said, it is remiss not to consider the most likely and relevant risks. Do you have a process to incorporate these into your strategy and execution plans on a frequent basis? Gone are the days of the 5 year strategy, updated once a year. Business is moving at a much quicker speed!

In addition, start looking at how to build an agile and resilient end-to-end supply chain. Start internally. Are your people prepared for the daily, weekly and monthly changes most likely to impact your business? Do they have backup plans? Or will it take a lengthy approval process to get a critical decision made to navigate disruption? Don’t just assume you are covered. Go and find out. If you’d like some tips for managing disruption, take a look at our resilient supply chain series.

 



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                                                 



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.