Tag Archive: transformation
Reshoring was at record levels in 2018! Manufacturers are starting to return as they see the total costs of offshoring combined with the rising costs in China and improved competitiveness of the U.S.
According to an Industry Week article by Harry Moser, almost 1400 companies announced the return of 145,000 jobs in the last year. This trend was starting to occur prior to the tariffs. Now, the tariffs are expediting the return. Manufacturers are also realizing they can gain a competitive edge with rapid customization close to their customer base.
Additionally, even in commodity products, companies are reevaluating how to remain competitive and diversified. Hasbro is the latest company to look at diversifying away from China. According to Industry Week, Hasbro, the largest toy maker globally, said that it planned to move from 75% to 50% production in China by the end of 2020. They are looking at Vietnam and India.
There is a transformation occurring. Executives are more concerned about relying on any one source of production (China), and are diversifying. Intel is reviewing its global supply chain. And, there are rumblings that Apple and Amazon are working on a plan B.
What Should We Consider and/or What Impacts Could Arise?
Speed and agility are critical to thrive in today’s marketplace. Start thinking about how you can radically reduce lead times while accelerating cash flow (reducing inventory levels) and increasing profitability. It is no easy task . Yet, it is what is required to thrive in today’s Amazon-impacted world. What can you do to get ahead of this curve?
Like the big dogs from the Industry Week article, should you be thinking about diversification? Or should you be re-shoring? Or should you buck the trend and offshore while everyone else is re-shoring? There are many companies who would be in far better shape if they had taken that approach 10-20 years ago when every Board member wanted to see an increase in outsourcing. There are no perfect answers except to be thinking about these impacts on your industry, your supply chain partners and on your company so that you can take a proactive stance instead of a reactive one. What will you do to successfully navigate these waters?
Certainly, re-shoring, near-shoring and diversifying are topics related to creating a resilient supply chain. If you are interested in an assessment of your situation, contact us. You’ll find more information on these types of topics on our resilient supply chain series.
Manufacturing Expert Lisa Anderson Presents 2019 LMA Advocate Award to Executive Peer Group Leader, Ron PenlandAugust 8th, 2019
Manufacturing and Supply Chain Expert, Lisa Anderson, MBA, CSCP, CLTD, president of LMA Consulting Group Inc., presented the 2019 LMA Advocate Award to Ronald Penland, President, Renaissance Executive Forums.
“It is a pleasure to recognize Ron Penland with our 2019 LMA Advocate Award. Ron and I both work with manufacturers and distributors. We have and continue to collaborate for the mutual benefit of our respective clients and are also part of several service organizations” Ms. Anderson commented. 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.
Business building, collaboration and experience is a hallmark of Ron Penland and his Renaissance Executive Forum groups. “I really enjoy helping people grow their business. From insights into managing the business, its growth and people to helping them find experts who can set a laser focus on a particular aspect of the business, I’m all about helping them grow. Working with Lisa is always a pleasure. She knows how manufacturers and distributors work and she is also aligned to help them maximize profits. It’s an honor that she values our relationship” commented Mr. Penland.
Advocates, partners and centers of influence are key to LMA Consulting’s continued growth and success, as they work together to advance manufacturing and the global supply chain. “Over 14 years, I have learned that it takes more than hard work and intention to affect growth. It’s important for me to be connected with other professionals who can lend value to my clients and who can provide me with another perspective. LMA Advocates help me do just that and more. I value Ron’s collaboration, as well as referrals for speaking engagements and client projects. He is well-respected by his members who have received great value from his leadership. I’m happy that he is also on my team” Ms. Anderson 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.
Kathleen McEntee | Kathleen McEntee & Associates, Ltd. | p. (760) 262 – 4080 | KMcEntee@KMcEnteeAssoc.com
No matter the industry and geography, the topic of “People vs. Robots” is a hot topic!
Certainly, manufacturing has been focused on technology and automation for quite some time to navigate the path to thrive in the modern environment of high costs, regulations, and elevated customer demands.
The Manufacturing and Technology Expo in Pittsburgh is going back to the theme of the 1939 World’s Fair, “The World of Tomorrow”. The Manufacturing sector has seen positive job growth not seen in 79 years. As Industry Week says, “We don’t have smoking robots but we have ones that perform lung surgery.”
Our APICS Inland Empire Chapter is hosting an executive panel and networking symposium on just this topic, “The Talent Transformation: People or Robots?” on April 13th at Harvey Mudd. We have an intriguing panel of executives and experts to discuss automation, robots, IoT, AI and much more. How do we co-exist successfully? Join us to learn more and probe further.
In logistics circles, there is quite a bit of worry and opportunity. According to a University of Redlands study, most large metropolitan areas are subject to losing 55% of their current jobs due to automation. In Inland Southern CA, that number expands to 62%. However, it depends on your thought process. UPS automated a section of their facility that reduced the number of people they needed by 100 yet they ended up hiring as they absorbed additional volume. Additionally, it depends on whether you are furthering your education and skills. We find proactive employees and employers in our Association for Supply Chain Management (ASCM)’s APICS certification classes who want to learn and grow.
For Inland Southern California, we have a particularly unique opportunity or challenge, depending on how you want to look at it. According to a Brookings study, we must focus on advancing the capabilities and competitiveness of local firms in opportunity-rich manufacturing and logistics industries. What an opportunity for us to leverage technology hand-in-hand with talent to THRIVE.
If you are interested in discussing whether your organization is prepared to leverage these opportunities and what priorities should emerge, contact us. We are experts and would love to see the U.S., California and the Inland Empire take advantage of this tremendous opportunity to enable scalable, profitable growth.
Find out how to navigate disruption and achieve peak performance.
Did you like this article? Continue reading on this topic:
The hot topic in manufacturing, supply chain, healthcare and other industries is the war on talent. No client believes he has enough “high-skilled” resources yet most also feel challenged in finding resources regardless of skill level.
On the other hand, there are statistics and studies showing that there is a talent transformation underway. According to a university of Redlands study, Most large metropolitan areas are subject to losing 55% of their current jobs due to automation. In Inland Southern CA, that number expands to 62%. Thus, what are we doing to get ahead of these trends?
I am the president of the Association for Supply Chain Management (ASCM)’s APICS Inland Empire chapter, and we are hosting an executive panel and networking symposium on this hot topic. We have a powerful lineup of panelists to discuss and debate the talent transformation and the impact of technology and automation.
- Paul Granillo – CEO of the Inland Empire Economic Partnership (IEEP)
- Cindy Elliott – Global Go-to-Market Strategy Manufacturing and Supply Chain, ESRI
- Jerry Hsiung – Robotics expert, Carnegie Mellon & Harvey Mudd
- Jermaine Waltemeyer – Recruiter/ Practice Lead, Aerotek
Lastly, we will be adding a manufacturing/ supply chain executive to the panel as well. Seats are going quickly. Learn more and register here.
One tip to implement this week:
Certainly, if you are interested in getting ahead of the curve in manufacturing, supply chain, healthcare and more in terms of technology and talent, join us at our symposium. It is bound to give you a few ideas!
In addition, join us at APICS-IE for our webinars, tours and programs as we will be talking about this topic and seeing it in action. For example, we will be scheduling a webinar on the digital transformation as well as tours of facilities at various stages of automation. There are also other groups that focus on these topics. For example, the Manufacturing Council of the Inland Empire (MCIE) has its annual summit in February, and the IEEP hosts the Supply Chain Summit which will be on April 26th.
Additionally, of course, there are tons of on-line resources such as the National Association of Manufacturers. And, one key to success is to expand your network so that you have resources and connections that can support your growth and advancement. Think about connecting with a colleague and start a conversation.