Tag Archive: transportation

Collaboration is NO LONGER a Fluffy Topic

February 16th, 2020

I facilitated an executive panel discussion on “Collaboration for Advanced Manufacturing & Supply Chain Success” with diverse viewpoints from transportation (Ontario airport), manufacturing (AMETEK Ameron), technology for manufacturing and logistics from the global leader in GIS (ESRI), and innovation, incubator and accelerator gurus.  It was a fascinating discussion on the value of collaboration, to innovate or not, robots or people and other controversial hot topics.

The key takeaways included the following:

  • The Value of Partners – Several panelists talked about the value of choosing your partners wisely. No one person and no one company can do it alone. In fact, we often collaborate not only with “usual suspects” but also with ones we might not suspect, such as our competition. When you can find a way to collaborate with competition where you both “win”, a powerful outcome will result.
  • Fail Forward – This was a powerful insight from one of the panelists. As I always say in speeches on innovation, you have to fail to be successful in innovation. Do we see our failures as ‘failing forward’? Or do we hide under a rock?
  • Robots or People? – We had a bit of debate. Will robots replace jobs? Absolutely! But can they also create jobs? Fill gaps left by the retiring baby boomer? Increase the quality of manual tasks? And enable far greater capacity? Absolutely!
  • Is all Innovation Good?  –  Of course not! Again, if a topic is a good one, it will stir up debate.  Wasting lots of time innovating for non-existent returns on investment isn’t a smart move. On the other hand, the pure nature of innovation will require failure. How do we navigate when to innovate and when not to innovate?
  • Is all Collaboration Good? Again, absolutely NOT! Wasting time collaborating when a quick decision must be made is worse than a waste of time. On the other hand, if we can turn 1 + 1 + 1 = 33, it certainly seems worth it. Just don’t think about your standard partners only. Why not industry groups, educational institutions, and more?

Take a few minutes to think about collaboration. What have you seen work best? Actually, back up. No one should just think about collaboration. Instead, we should be thinking about our end result. Where do you want to go and what do you want to achieve? Now, think about the best use of collaboration, innovation, technology and other topics that will accelerate success.



Will Amazon Pass UPS & FedEx?

January 26th, 2020

According to a CNBC article, Amazon is already delivering half of its packages. It appears that Amazon is on target to pass by FedEx and UPS. They have had distinctly different strategies. FedEx curtailed its contract with Amazon in early 2019, and Amazon just retaliated by not allowing 3rd party sellers to ship via FedEx. On the other hand, UPS is doubled down with Amazon. Which will turn out to be better in the long run? And, as we know, USPS has been delivering packages for Amazon behind-the-scenes. Could they come out on top?

Or will Amazon just crush everyone? In recently touring the Ontario airport (the powerhouse in package shipping), it is clear Amazon has a long way to go to catch up in air freight but they are also known to speed by competitors. Amazon is slowly making inroads to ocean shipping as well. No matter who you think might win this race, if you ship or receive anything, you should pay attention!

What Should We Consider and/or What Impacts Could Arise?
Simply think about Sears. They were Amazon prior to Amazon entering the scene. Unfortunately, they didn’t keep up with changes occurring, and they are largely out of business. That annoying but not worrisome competitor might just speed by you if you aren’t staying relevant!

Additionally, from a supply chain and logistics point-of-view, there are substantial impacts. With the sheer relevance of the last mile, transportation infrastructure, customer perceptions, technology advancements and much more are becoming relevant. Undoubtedly, no matter your industry, it will be impacted since everyone relates to logistics. Not only logistics, but many industries relate to oil and gas prices or would be impacted by delays in materials etc. The impacts are widespread and substantial. Have you thought through your strategy and positioning based on these factors?

At a minimum, continually re-evaluate your supply chain road map and think through related impacts. These topics certainly relate to our new LMA-i, LMA-Intelligence series including the Amazon Effect, the Resilient Supply Chain and Future-Proofing and contact us if you’d like an assessment path-forward plan to accelerate your bottom line and customer performance.



Lisa Anderson, Manufacturing & Supply Chain Expert, Sees Innovation & Collaboration Key to Advanced Manufacturing Success

June 7th, 2019

Manufacturing and Supply Chain Expert Lisa Anderson, MBA, CSCP, CLTD, president of LMA Consulting Group Inc. identifies innovation as a key driver in advanced manufacturing throughout 2019 and beyond. Driven by technology, AI and robotics, manufacturers are becoming more sophisticated in their response to changing customer needs.

“Customer expectations have changed as a result of what I call, The Amazon Effect. They want customized products with shorter lead times at ‘reasonable’ costs. This is a huge opportunity for manufacturers who make a commitment to reevaluate their processes, systems and the way they think about their product and customer” notes Ms. Anderson.

Successful manufacturers are turning their processes upside down from the inside out and strategizing new ways to proactively anticipate customer needs. “Manufacturers who choose to collaborate with their suppliers, as well as their customers, are making great strides.  From advanced customization and rapid response to distributive inventory, transportation and logistics, innovation and collaboration are becoming the cultural norm. In addition, there is a trend toward near-sourcing, vertical integration and agile strategies that proactively address these elevated expectations” she stated.

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. With the rise of e-commerce, increasing transportation costs and global risks, sourcing experts are re-evaluating their global supply chains. Logistics is gaining in relevancy as transportation costs increase, sustainability efforts expand and managing inventory becomes a hot topic, and, accelerating cash flow becomes more relevant.

The outlooks and attitudes are positive as manufacturers rise to the challenges of ever-changing customer needs and increased expectations, tight labor and transportation markets and rapid growth. LMA Consulting Group recently released findings of executive predictions for 2019:  “Manufacturing & Supply Chain in the New Normal” (available at no charge).  “Technology goes hand-in-hand with innovation and collaboration resulting in customer success stories and bottom-line results” 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 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. She recently was recognized as a Woman in Manufacturing by Inland Empire Magazine. For information, to sign up for her Profit Through PeopleTM Newsletter or for a copy of her book, visit LMA-ConsultingGroup.com.

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



Walmart & Costco Moving Towards Farmer-to-Shopping Cart Strategies

May 1st, 2019

 

Walmart & Costco Moving Towards Farmer-to-Shopping Cart Strategies

The squeeze continues. During my Aerospace & Defense speech recently on the Resilient Supply Chain, the concept of vertical integration arose as Boeing and Airbus are expanding and squeezing the middle in a noteworthy fashion. Similarly, according to Journal Star Walmart and Costco are moving to eliminate the middle man by moving towards farmer-to-shopping cart strategies.

Walmart started bottling milk in its new Indiana facility. This move eliminated Dean Foods and their 100 dairy farmers and replaced them with 30 farmers and cooperatives. Walmart is controlling the entire supply chain from farm to shopping cart including transportation, a vertical integration strategy rarely seen to this extent and scale in agriculture. Similarly, Costco established a chicken farm to grow, slaughter and distribute chickens in Nebraska, eliminating suppliers like Tyson Foods and Pilgrim’s Pride. Both of these initiatives could create significant disruption as well as opportunity.

Are you staying comfortable, waiting to be disrupted or taking the proactive approach to create disruption?

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

Getting to the top and/or to a comfortable position and riding the wave isn’t a viable strategy if you wish to be around for the long-term. Stay up-to-speed on what is going on with your industry, competitors, customers, suppliers, region and more. Don’t hide your head in the sand. Instead, choose to take the realistic yet optimistic view and turn it into reality.

In addition, start looking at how to build an agile and resilient end-to-end supply chain. There is no telling when your supply chain might be squeezed or something will change. The more agile and resilient you become, the more successful you’ll be! If you’d like some tips for managing disruption, take a look at our resilient supply chain series.



What do UPS, Shamrock Foods, Amazon & a 3PL Have in Common?

March 14th, 2019

In touring multiple facilities, ranging from package shipments to cold storage food service delivery to the e-commerce behemoth to 3PL organizations, it despite the conversations that take place about labor costs and other daily concerns, the #1 concern across the board is transportation costs. The numbers support this sentiment. According to CSCMP, transportation costs are 65% of total logistics spend.

Logically, it also makes good sense. No matter your business, materials, parts sub-assemblies and/or products need to arrive at your facility. Often, especially in industries such as aerospace, the parts make multiple trips around the area (unless you are unlucky enough to require sourcing outside of your local area) for outside processing services such as anodizing and painting. Lastly, every work-in-process part or finished good must go to the next stop along the way to the customer such as a final assembly customer, your distribution center, your customer’s distribution center or the end customer. That makes for quite a lot of transportation, often involving multiple modes of transport from air freight to ocean freight to rail to trucking.

Given these alarming statistics about transportation costs, the question becomes: What can we do to proactively manage these costs as well as reduce the impact on the environment? After listening to several experts on these tours and experts from Georgia Tech, APICS (learn more about the critical importance of logistics in our APICS-IE CLTD, certified in logistics, transportation and distribution certificate program) and CSCMP SoCal (at the state of the industry event), a few ideas emerged.

  1. Collaborate with strange bedfellows:As recently published in an I’ve Been Thinking article, collaborating with strange bedfellows can achieve 1+1+1 = 25 minimally. In terms of transportation, there is no doubt maximizing the space used in your truck, container or plane is vital. Why not collaborate with another business to increase your utilization?
  2. Take the holistic or systems view: It is quite challenging to see the forest for the trees as the old slogan goes. We have all been there! I have worked with clients for extended periods of time and found myself with this same issue.  So, I have to deliberately shake it up to maintain the systems or bird’s-eye view. For example, don’t worry about saving a few pennies on a non-essential element of your transportation infrastructure when you are missing the key point that your mix of modes of operation or something like that is costing you millions.
  1. Utilize technology that focuses on the critical transportation factors: In every case (at every tour, event and in every conversation), leveraging technology where it makes sense came up. Certainly, artificial intelligence is the new craze since it has the potential to transform entire industries including logistics. However, robotics are being considered even in industries such as 3PL where they never were previously due to the nature of managing different customers and products. Of course, IoT is prevalent in the world of logistics and transportation as well as topics such as alternative fuels and automation. And what about the basics of a solid ERP system and TMS (transportation management system)? Don’t panic over the horror stories. Contact us if you want to overcome them.
  1. Be customer friendly:Interesting how often being customer friendly arises, no matter the industry or size company (small family owned to private equity backed to large complex organizations).  With rising truck rates and a shortage of drivers, if you aren’t a preferred shipper, you might just be out of luck no matter how much you spend. What does it take to be a preferred shipper? It depends on your business, carriers, locations and more. However, it starts by thinking about what is important to your carrier (not you). Are they looking for flexibility? A quick turnaround time? Fast payment? Good treatment for their drivers?

Since transportation costs are, at minimum, 65% of your total logistics spend, it requires further thought. With the vast amount of technology options available, the best approach is to start with your foundation (your ERP system) and ensure it is stable. Once you have a scalable base, find the ‘right’ technology for your situation to maximize the value of your logistics infrastructure. However, remember the 80/20 goes back to people. What are you doing to develop strategic partnerships and to ensure you are customer friendly and a preferred shipper? Given the impact, don’t leave this to chance or make assumptions. We all like to think we are preferred but what can we do to take it an extra step further?

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

Systems Pragmatist

 The Sheer Relevance & Impact of Transportation (a Billion Here, a Billion There)

The Resilient Supply Chain: Should We Invest in Technology?