Medtech companies’ focus on supply chain resiliency and mitigating supply chain risk has increased over the last few years as the pandemic triggered extended lead times, delays, and rising costs. Executives must now be able to pivot quickly to changing conditions, and they want to be in control of their ability to successfully serve customers. In reviewing options to meet these objectives, the critical importance of enterprise resource planning (ERP) and related manufacturing and supply chain technologies has risen to the top.

Taking Control of the Customer Experience

One way to take control of manufacturing and the supply chain as well as build resiliency into the customer experience is by focusing on expanding manufacturing and reshoring manufacturing closer to customers. Reshoring Initiative data show the combination of reshoring and foreign direct investment (FDI)-related job announcements last year reached record high levels—a trend that is expected to continue. As companies reshore, there is a significant emphasis on automation, robotics, 3D printing/additive manufacturing, and other supply chain technologies to reduce costs, minimize hard-to-find talent, increase quality, and keep abreast of customer requirements.

Nearshoring also remains popular for companies that want to improve customer performance by moving manufacturing closer to customers. Mexican exports, for example, rose 5.8% to $52.9 billion in May 2023, the second highest reading on record, according to Bloomberg. Mexico is also automating, digitizing, and employing advanced manufacturing methods. Case in point: Global automotive technology firm Luminar announced in April the build-out and ramp up of a new highly automated, high-volume manufacturing facility in Monterrey, Mexico. Moreover, Nuevo León Gov. Samuel García, said at the World Economic Forum in January that an “advanced manufacturing platform” would soon be launched in the state to focus on process digitization and automation.

Besides supporting reshoring and nearshoring initiatives, medtech firms also are interested in deploying advanced manufacturing techniques to augment their competitiveness. With skyrocketing inflation, manufacturers are paying more for materials, components, labor, and freight. In addition, the cost of capital has increased significantly, further decreasing margins, and limiting cash flow. Thus, manufacturers are searching for opportunities to increase efficiencies, automate repetitive processes, utilize robots, and embrace digitization as much as possible to decrease costs, increase margins, and better control customer pricing.

To grow their business, manufacturers are focusing on providing customers with a superior experience. In the current Amazon-impacted business environment, customers expect rapid deliveries, 24/7 service, and quick responsiveness—elements that once were considered forward-thinking and innovative but have now become essential. To stand out from the crowd, companies must go beyond these fundamentals and offer a differentiated or personalized customer experience. Thus, using a modern ERP system is essential to success because it will support these basic needs and augment them with such related technologies as customer relationship management, order fulfillment visibility, warehouse management system, transportation management system (TMS), e-commerce, advanced forecasting and planning, artificial intelligence, and predictive analytics.

A healthcare products manufacturer that distributed products throughout the United States wanted to improve their service levels, lead times, and inventory levels across its various facilities for customers. The manufacturer accomplished this goal by rolling out a vendor managed inventory system with suppliers and set aggressive scorecard metrics. The manufacturer used an ERP system to connect to its key customer’s demand and inventory data, and developed a forecasting and replenishment planning system. Hence, the manufacturer was able to establish an efficient system to maximize service levels for its customer while minimizing inventory levels and costs by utilizing business intelligence reporting to identify forecast exceptions and advanced planning functionality to proactively manage service levels. The software provided visibility into key customers’ distribution centers so the manufacturer could decide how to reallocate inventory to improve service while reducing inventory. Additionally, by integrating the replenishment orders to its customers’ locations with ERP and TMS systems, the manufacturer maximized multiple-stop truckloads and route in an optimal sequence to minimize freight costs.

Manufacturing and Supply Chain Technologies

There are numerous manufacturing and supply chain technologies that yield a substantial return on investment. 3D printing is providing a distinct advantage to manufacturers interested in providing quick prototypes to customers, and it is being used in several medical and industrial applications. According to G2 and Oxford Performance Materials, more than 75% of American patients with damaged skulls from disease or trauma received implants made by Oxford Performance Materials’ 3D printer. GlobalData predicts that customization, lower production costs, and quick turnarounds will drive the medical 3D printing market’s growth. Such benefits, along with the sector’s 23% compound annual growth rate (IndustryArc data), is prompting smart manufacturers to increasingly pursue clinical trials for 3D-printed products.

Augmented reality (AR), virtual reality (VR), and digital twins (a digital representation of an intended or real-world physical product, system or process) are some of the promising technologies in manufacturing and supply chain circles. They are particularly valuable in the current business environment as companies grapple with limited high-skilled resources, cost management concerns, and delivering a superior customer experience. AR/VR is used to train employees on ways to use and maintain equipment, about trials and simulations responsibilities, in collaborative product design, and in remote monitoring and factory audits. Digital twins can be used to evaluate “what if” scenarios to optimize the plant floor or data sets. An engineer-to-order manufacturer, for example, can utilize a digital twin to evaluate capacity with various configuration forecast models to stay ahead of customer requirements and result in a more efficient and responsive supply chain.  

The Metaverse can bring together customers’ wants and needs. In essence, it can accelerate the SIOP (Sales Inventory Operations Planning) process. In a metaverse collaborative room, retailers and their suppliers (or any set of customers, consumers, and suppliers) can meet virtually to review sales forecasts, projected production plans, and possible supplier limitations that could affect manufacturing volume. They can also visualize an immersive supply chain network map, see where inventory is, identify issues, and model possible alternatives.

The internet of things (IoT) and artificial intelligence (AI) are transforming the supply chain as well. As ERP systems, machines, and vehicles capture data with IoT, AI will learn how to predict breakdowns and recommend predictive maintenance plans, making preventative plans obsolete. Forklifts and autonomous vehicles will capture many signals and provide alerts to prevent impending safety incidents, and advanced planning systems will utilize machine and operational performance data to predict run rates and provide insights on how to minimize usage.  

Robots are bringing a new level of efficiency and repetitiveness to manufacturing. Industrial manufacturers are using welding robots to produce parts around the clock to minimize labor costs, quality issues, and injuries. Similarly, an aerospace manufacturer developed a robot that could produce on second and third shift with lights-out manufacturing a complex process to address a critical shop bottleneck. The aerospace firm quickly alleviated past due orders and got in front of its customer’s needs.

Manufacturers are also pursuing visibility across the supply chain so that customers can check status around-the-clock and supply chain partners can gain visibility and respond to changing conditions. Thus, digitizing information in the supply chain is a priority. This can range from simple concepts of barcoding/ RFID, lot tracing, and electronic data interchange to complex and collaborative topics such as customer portals, supply chain control towers, and port optimizers. Taken a step further, companies are investing heavily in blockchain to gain an immutable ledger of product and financial transactions across the supply chain.

The Bottom Line

Smart executives will leverage ERP systems as well as manufacturing and supply chain technologies to create a customer service edge. Equally important, they will automate, digitize, and turn data into insights to help their organizations become forward-thinking, resilient, efficient, cost effective, and predictable. Since only these uniquely positioned, innovative manufacturers that can scale up or down rapidly will be prepared for the change and volatility in the global supply chain, they will have the unique opportunity to leapfrog the competition, capture market share profitably, and be in the position to thrive for decades to come.

Lisa Anderson is founder and president of LMA Consulting Group Inc., a consulting firm specializing in manufacturing strategy and end-to-end supply chain transformation that maximizes the customer experience and enables profitable, scalable, dramatic business growth. She is president of the Inland Empire Chapter of APICS, the leading trade organization of supply chain management. Anderson recently released Future-Proofing Manufacturing and the Supply Chain Post COVID-19 as an e-book. 

Originally published in MPO November/December issue.

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Manufacturing is making a resurgence in the U.S. and other countries around the world. According to the U.S. Bureau of Labor Statistics, there is a shortage of 550,000 stable manufacturing jobs to be filled in manufacturing businesses nationwide. There is no doubt the Skills Gap is in full force if you observe manufacturers offloading, prioritizing customers, and struggling to fulfill demand because of a lack of people. In union industries, employees are threatening strikes and across the board, wages are increasing which leads to intense inflationary pressures. It is a tricky time to navigate yet the best will figure out how to scale successfully.

The Resurgence Will Continue

The manufacturing resurgence will continue as businesses address extreme supply chain risk, unpredictable costs, the need to meet changing customer needs, and U.S. incentives ramp up. For example, Joseph P. Quinlan, head of CIO Market Strategy at Merrill and Bank of America Private Bank has described the current environment in the U.S. in a June 2023 market outlook report, as “the early stages of a manufacturing supercycle pivoting around renewable energy, electrical vehicles and batteries/charging stations, and semiconductors, in addition to rising spending in more traditional areas like ports, highways, grids, airports and the like.” As of April, spending on manufacturing construction — new factories was tracking at a $189 billion annual rate, triple the average rate in the 2010s ($63 billion).

In consulting with manufacturers how to leverage SIOP (Sales Inventory Operations Planning), supply chain management, and ERP to scale successfully, it is clear that there is plenty of scrutiny on make vs buy decisions (reshoring, nearshoring, offloading, expanding capabilities), customer and product profitability analyses, and strategies to scale successfully to meet customers’ requests and expansion plans. The resurgence will continue yet talent remains scarce.

Fulfilling the the Need for Expansion & Scale

There are several strategies smart manufacturers are pursuing to fulfill the need for expansion and scale as it relates to talent. The most successful include the following:

• Training & development: There is a renewed interest in training and developing employees to expand their skills and learn about new and advanced methods to perform their roles.
• Mentoring: One of the best ways to accelerate the learning process is to find a mentor. Mentors bring experience to the table and provide insights that cannot be found in a book. Exemplars can show the way forward. If you can entice experienced employees and retired employees to provide guidance, progress will be robust.
• Apprenticeship programs: Manufacturing thrives on apprenticeship type programs with on-the-job training with immediate feedback and corrective information.
• Automation, robotics & digitization of the supply chain: Only the successful will look for ways to automate whatever is repetitive, use robots for those tasks that can run through the night without interaction, and digitize the end-to-end supply chain to bring efficiency and to more quickly meet customer needs.
• 3D printing / additive manufacturing: Why produce what you can print upon demand? If an aerospace engine and a miniature house can be printed, what’s holding you back?
• ERP & related technologies: Every client can better use their ERP system to achieve results and automate mundane tasks. Prioritize utilizing this already-existing asset and expand the use with related technologies such as artificial intelligence (AI), IoT (internet of things), digital twins, AV/VR (audio visual/ virtual reality), and much more.
• Retention: Often, the most successful clients are simply those that retain key talent. It sounds easy, but it requires effective leadership, flexibility, investment into employees (training, cross-training, experiences, etc.), and competitive compensation. People follow people. People do not follow companies.
• Supplement your employees: We are not the typical supply chain consultants as we will jump into the details with a client and partner with key resources to bring results to fruition. More and more clients are pursuing this type of strategy to supplement their workforce by providing support to key talent while advancing their capabilities and ensuring results. To learn how to select a supply chain consultant, read our article.

As the manufacturing resurgence accelerates, the need for talent will increase. Employ key strategies to fulfill this demand for talent and address the Skills Gap. Please contact us with your success stories and your questions for how to succeed during these volatile times. And, please keep us in the loop of your situation and how we can help your organization get in a position to thrive for years to come. Learn more about these topics in our blog and download your complimentary copy of our recently released special report: The Road Ahead: Business, Supply Chain & The World Order

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What is clear is that VUCA (volatility, uncertainty, complexity, ambiguity) is continuing in the forefront and will continue to be our “new normal”. As I recently debated with the Wall Street Journal, we are in an era of non-stop disruptions. Look no further than the escalating war of Russia and Ukraine (with Russia making even more money to fund the war with the higher prices of oil and their increased sales to China and India), China sending spy balloons over US critical infrastructure while Zero-COVID policies disrupted supply during 2022, weather events, strikes, bloated inventories, and much more. The bottom is that if you don’t take control of your manufacturing, you will be at the mercy of these non-stop disruptions.

Ways to Take Control of Your Manufacturing

The good news is that there are many ways to take control of your manufacturing. The key is to stop leaving your ability to fulfill customer demands to chance. If you do, you will continue to be deterred, delayed, and derailed in servicing your customers and have no hope in taking advantage of opportunities as they arise.

Let’s look at a few good options:

• Domestic manufacturing/ reshoring: Expand domestic operations and/or move your operations back to where they came from (assuming your customers are there as well). This is the ultimate in taking control by fully taking control of your manufacturing process. There are several U.S. companies’ reshoring. For example, I was recently quoted in Sports Business Journal about Daktronics on their domestic sourcing strategy. Several big companies like Tesla, Intel, and others are investing in domestic manufacturing whereas mid-market companies are as well but are less likely to promote these moves until complete.
• Nearshoring/ Friendly shoring: Expand your sourcing to nearby countries (to your customer base), and, most importantly, ensure you expand and/or move to countries with friendly relations to the U.S., Europe, and other allies. If you move supply and get turned off at the next disruption, you have wasted an enormous amount of money and given intellectual property and capabilities to unfriendly nations.
• Backup sources of supply: If you cannot quickly reallocate your manufacturing capabilities, it must be a critical priority to develop backup sources of supply. Even if you have control of your manufacturing, you should develop backup sources of supply. The next decade will not be for the faint of heart, but it will be full of opportunities for those who are proactive and forward-looking.
• Build partnerships with regional/ local suppliers: Instead of taking full control of your manufacturing operations, you can source regional/ local supply partners. For example, a client has greater sales opportunities than their existing facilities can supply, and so they are proactively qualifying suppliers and offloading volume to regional manufacturers.
• Outsource a portion of your manufacturing process: Instead of fully outsourcing a product or group of products, you might have an opportunity to outsource a manufacturing operation. For example, a client is outsourcing machine shop work and completing the remaining operations steps in-house. Similarly, they outsource the weld process to a different group of suppliers for certain products. These actions allow them to fulfill their sales volume with high service levels while maintaining control of service and quality to the customer.
• Leveraging technology like 3D printing: For certain types of products, companies are using 3D printing/ additive manufacturing to rapidly produce close to customers and/or next step manufacturing operations.

Priorities to Keep in Mind

As you reevaluate your manufacturing footprint, you should be keeping several priorities in mind:

• Raw material supply: It might be obvious, but as you move or reallocate manufacturing operations, it is important to consider your raw material, component, and ingredients supply base.
• Transportation infrastructure: If anything has become clear since the pandemic, it is that container shipping, trucking, rail, air and last mile delivery must be in sync with the end-to-end supply chain. Otherwise, nothing else will matter as your customer will not receive their product.
• Distribution network: Similarly, to transportation infrastructure, as you reallocate manufacturing capacity, consider impacts and requirements for your distribution network. Is your distribution network flexible?
• Technology: There is no way to succeed if your technology infrastructure is not supporting your end-to-end supply chain visibility and performance. Is your ERP system agile? Do you have business intelligence, dashboards, and reporting? Are you connected to supply chain partners with EDI, Blockchain, etc.? Are you automating as you expand domestic capacity?
• Talent: Certainly, there is no chance for success without the manufacturing and supply chain talent to execute these changes. Have you reallocated responsibilities? Expanded capabilities? Provided training? Supported in-house resources with supply chain consultants, trusted advisors, etc.?
• Capital & cash: Do you have access to capex (capital expenditures) and the working capital to fund whatever actions you need to take? It isn’t free to take control of manufacturing. There will be investments and cash required to support long-term success.
• SIOP / S&OP: Smart executives are rolling out Sales, Inventory & Operations Planning programs to get in front of customer demand, how they will fulfill that demand (reallocating manufacturing capacity, make vs. buy), and whether they should make changes to their pricing, supply chain footprint, cost reduction programs and other execution plans.

Please contact us with stories, issues, and opportunities on what you’re doing to take control of your manufacturing. And please keep us in the loop of your situation and how we can help your organization get in a position to thrive for years to come. Learn more about these topics in our blog and download your complimentary copy of our eBooks including our new release, SIOP (Sales Inventory Operations Planning): Creating Predictable Revenue and EBITDA Success.

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CLAREMONT, CA— Companies are clearly looking to technology to push their post-pandemic productivity and boost growth—accelerating the adoption of new technology and associated behaviors—according to The Society for the Advancement of Consulting® (SAC).

The Pandemic has Driven Adoption of Advanced Technology

“The adoption of technology accelerated tenfold during the pandemic,” points out Lisa Anderson, president of Claremont, CA-based LMA Consulting Group, Inc and manufacturing expert known for creating supply chain resiliency. “Clients are turning to technology to keep up with the rise in e-commerce, rapidly changing customer buying behaviors, and the volatility of both demand and supply.”

“Additive manufacturing (3D printing) allows production on-demand for the customer,” notes Anderson. “Artificial intelligence (AI) enables predictive analytics and sales forecasting. The Internet of Things (IoT) and AI allow manufacturers to predict when machines will fail. So maintenance and repair can be scheduled before failure occurs. Plus, digital twins are poised to transform manufacturing processes and offer new ways to reduce costs, monitor assets, and optimize performance. Blockchain is the future of supply chain transparency.”

Embracing Technology Means Embracing a New Digital Culture

“Having embraced work from home policies, organizations now need to transform faster to address the impact of the COVID-19 pandemic. Businesses recognize that digital transformation is driven by a change in mindset, embracing open principles, processes, and culture.” says Dr. Maynard Brusman, a San Francisco Bay Area consulting psychologist and executive coach.

“Organizations need to nurture collaboration and empower employees to bring their best ideas and selves to work, which accelerates innovation in an agile manner,” he notes.

“Cultural change and technology modernization are of critical importance for digital transformation,” advises Dr. Brusman. “Cultural characteristics that are key for transformation include adaptability, inclusion, transparency, and collaboration.

Successful Tech Adoption Puts Customers First

“New platforms are being introduced every day to help businesses and consumers maximize their reach,” explains Kathleen McEntee, president of Kathleen McEntee and Associates, Ltd. (KMA), a full-service marketing firm that helps companies reach their target markets with the right message, through the right media, for the greatest impact. “But there’s a blurred line between what businesses want and what their customers expect. Businesses want customers—both new and existing ones—to buy larger quantities, more often. Consumers want to find products easily and immediately.”

“As the workforce settles into new ways of working, novel tools are needed to support them,” adds McEntee. “Healthcare is an example where implementing easy-to-use project management systems and creating central patient records repositories will allow multiple providers to collaborate, diagnose, and provide the appropriate treatment.

“To keep up, existing tools need to constantly evolve. Services need to be more flexible for their customers,” she notes. “It’s fascinating to consider what the jolt of the pandemic has done to accelerate practical creativity.”

Necessity is the Mother of Technological Reinvention

Many of the technologies recently adopted by businesses and consumers have been repositioned or reintroduced as a result of the pandemic—sometimes creating totally new market opportunities, according to Linda Popky, president of Redwood Shores, CA-based strategic firm marketing firm Leverage2Market Associates, and author of the book Marketing Above the Noise: Achieve Strategic Advantage with Marketing That Matters.

“It was simple for Uber to refocus on Uber Eats—they put drivers to good use while food was more likely to need a ride than people. But Zoom, which has become the accepted verb for video conferencing, was conceived as a business-to-business platform. The pandemic drove millions of consumers to flock to Zoom for personal use, while it became the platform of choice for remote schooling,” she notes. “That required the Zoom team to add functionality for the consumer market, upgrade security features, and rework their support model.

“COVID tracking and vaccination passports are just two new applications that have developed as a result of the pandemic. Expect to see more of these appear as we settle into the new hybrid work environment.,” she adds.

Who’s Monitoring the Customer Pulse?

“We’ll see ‘high tech, high touch’ on steroids,” says SAC Founder Alan Weiss, PhD. “The late John Nesbitt was right, way back in 1985—but even he couldn’t envision ‘live chats’ in a computer, individually customized ordering pages, or tele-health.

“If an iPhone can check its owner’s pulse, why can’t every company check the pulse of its customers?” Weiss asks.

Originally published on Expert Click, June 1, 2021.

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The Future of Technology

Technology is a tricky topic. On one hand, almost everyone has put technology and ERP implementations on hold due to concerns about COVID impacts and to conserve cash. On the other hand, it is the best time to gain employees’ attention and focus to upgrade technology to scale the business, create a superior customer experience and deliver bottom line results.

Kellogg or Post?

As I said in my eBook, Future-Proofing Manufacturing & Supply Chain Post COVID-19, the Kellogg vs. Post story from the Great Depression provides an excellent example to ponder. In the 1920’s, Kellogg and Post dominated the market for cereal which was still a relatively new and untapped market. Post reigned in expenses and Kellogg doubled its ad budget and pushed its new cereal. Even as the economy hit bottom, Kellogg’s profits rose 30% and they become the dominant player.  Do you want to be Kellogg or Post? The morale to the story is NOT about dollars invested. It is about the opportunities of investing resources (which can be simply in the form of employees’ focus) in future success.

Which Technologies Provide Immediate and Long-Term Value?

Of course, the answer depends on your industry, company, current infrastructure, your customers’ evolving needs, your suppliers’ evolving needs and more. Why not perform a rapid assessment of what makes the most sense for your business and take one important step forward? As I said in my eBook, Newton’s Law is relevant. Objects in motion stay in motion whereas objects at rest will stay at rest. You must take steps forward, no matter how small. Let’s highlight a few of the more likely technologies to provide immediate value and long-term value:

1. Further utilize & expand your ERP system: No one uses 80% of their system; however, most organizations utilize only 20%. Find that next 1% that will yield a significant benefit to your customers or bottom line. Clients are gaining significant value from this simple step.
2. B2B customer portal/ B2C e-commerce: No doubt about it. The ONLY growth area across the board is e-commerce. In addition, what could be more important than visibility of orders for your B2B customers? Delays will result in lost opportunity!
3. Business Intelligence (BI): We are overloaded with data. The issue isn’t having data, it is making meaningful decisions and formulating plans based on the interpretation of data. BI will bring meaning to your data that translates into customer and profit opportunities.
4. Artificial intelligence (AI) & Human Learning: In today’s environment, predictive capabilities produce VASTLY greater results than simply analysis and static plans. Demand planning/ forecasting, predictive maintenance, cash flow forecasting, and the automation of tasks are enhanced with AI.
5. CRM: There has never been a time when understanding, staying in touch with and being on top of evolving customer needs has been more important.
6. Digital Twins: virtual replicas of physical devices that technology gurus can use to run simulations before actual devices are built and deployed. Read a fascinating article about the applications in logistics.
7. Systems to gain efficiencies: WMS (warehouse management), TMS (transportation management), rate shopping, MPS (master production scheduling)/ MRP (material requirements planning) / Inventory planning, replenishment including VMI (vendor managed inventory) and more.
8. 3D Printing/ Additive manufacturing – if you can produce a customized product on demand close to customers, you win in today’s Amazonian environment. Either way, it speeds up R&D.

Read our eBook, Future-ProofingiManufacturing & Supply Chain Post COVID-19 to read more about technology as it relates to successfully emerging and thriving post-COVID-19. Explore these concepts further as you start thinking through your technology roadmap.

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CLAREMONT, CALIFORNIA – June 30, 2020 –  Manufacturing and Supply Chain Expert,  Lisa Anderson, MBA, CSCP, CLTD, president of LMA Consulting Group Inc., forecasts a resurgence of manufacturing in the U.S.  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.

“The COVID-19 pandemic turned the supply chain on end.  It forced manufacturers to rethink their strategy, their products and their future.  Those who took the time to identify opportunities and used this unique circumstance to leverage technology and innovate are already seeing results. Innovation has always been the key driver to manufacturing success.  We are now seeing it pay off, and, it’s just the beginning,” stated Ms. Anderson.

Innovation has opened not only new product possibilities for manufacturers, but also new relationships for cost reductions and improving the customer experience.  From suppliers and 3-D printing to transportation options due to reshoring, manufacturers have an abundance of opportunity for differentiation and growth.   

“China has fallen from favor not only due to COVID-19 and the supply chain disruption, but also because of the arduous policies they implemented early in the year which essentially removed all protections of intellectual property and patents. There has been talk about doing more business with Mexico, but Mexico is best at assembly,” she said.  Manufacturing shifted to China and other countries due to high labor costs in the U.S.  Technology and robotics have leveled U.S. manufacturing costs.  “It clearly comes down to innovation and leveraging technology. U.S. manufacturers are strong and smart.  Sometimes it just takes an extra push or, in this case, an event to force out-of-the-box thinking,” she concluded.

Ms. Anderson recently recorded another video in her What’s Happening in Manufacturing & the Supply Chain series highlighting Reshoring.

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 People^TM 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

Originally published on ExpertClick on June 30, 2020

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“As manufacturers realize what can be achieved with technology such as AI, IoT, robotics, and additive manufacturing, they are sourcing manufacturing closer to the customer to create a customer experience advantage (rapid customization and delivery) with a lower cost base” points out Lisa Anderson, president of Claremont, CA-based LMA Consulting Group, Inc. and president of LMA Consulting Group, Inc., Claremont, CA.

US manufacturing recovered slightly in January but isn’t out of the woods

Dive Brief:

• The U.S. manufacturing sector showed signs of life in January, with the Institute for Supply Management’s purchasing manager’s index (PMI) rising from 47.8% in December 2019 to 50.9% last month. A reading above 50% marks sector expansion, while a reading under 50% signals contraction. 
• “Rising demand from households has helped support production in recent months, but January saw a marked slowing in new orders for consumer goods,” Chris Williamson, chief business economist at IHS Markit ​said in a statement. “Production of capital goods such as business equipment, plant and machinery meanwhile fell for the first time in almost four years, hinting at weakened business investment.”
• In 18 of the manufacturing sub-sectors ISM tracks, eight reported seeing some growth in January, namely consumer electronics, furniture, food and beverage, and tobacco products. Eight saw a contraction including apparel, leather and allied products; textile mills; electrical equipment, appliances and components; and petroleum and coal products.

Dive Insight:

January marked the first month of expansion since July 2019, however, the manufacturing sector isn’t out of the woods just yet.

“US manufacturing limped into 2020, with falling exports dampening output growth and causing a pull-back in hiring,” Williamson said. “The survey data are consistent with factory production falling moderately, meaning the manufacturing sector looks set to act as a drag on the overall economy once again in the first quarter.”

Click here to read more.

Published in Supply Chain Dive on Feb. 3, 2020

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As hard as it is to believe, we are almost half-way through the year.  As a result, we should be thinking NOW about what to stop, start and continue for the second half of the year.  I learned this exercise from my HR mentor (a P&G-trained guru) as we performed it with our team with great results (thanks Debra!).

Stop, Start, Continue  

Here are the questions to ask yourself and your team:

1.  Stop – What should we stop doing?  This is actually the hardest. Not only do I find it hard to stop doing things I’ve included in my daily and monthly routines, my clients seem to find this quite challenging as well.  Are you selling to a customer and losing money? Or, does this customer always create some sort of hardship for your team? Is your team putting together reports because they always have even though they are no longer necessary?  Do you open them and make decisions based on them? If not, stop. Are you hanging on to that so-so supplier because you’ve developed a nice friendship even though they are no longer delivering or are at high cost? Perhaps you should have a discussion with them about it.
2.  Start – Let’s assumed you’ve stopped something.  Now you have time to start something new. I am bad at this sometimes as well – just add, add, add but not stop.  Are you falling into that trap as well? I am going through my activities currently and making sure to stop more (or at least equal) to the start activities.  Start those activities that you think will yield an improved return on investment. Undoubtedly, there are several of these opportunities if you look. We find that our clients have many more ROI opportunities than they realize when we perform an assessment – every time without fail.
3.  Continue – Thank goodness, not everything we are doing should stop or start.  Continue those activities that add value and contribute a result. Do you measure success by activity (time) or by result?  I definitely advocate for the latter – you’ll double your success.

Put it in Context with Market Forces

Although it is always a good idea to take stock of what you should start, stop and continue, it will be helpful to put it in context with market forces.  Here are a few questions/priorities to consider.

• Amazon Effect – No matter your business, you are being impacted by the Amazon Effect.  Elevated customer expectations, immediate deliveries, 24/7 accessibility, easy returns and more.
• Customization – Who doesn’t want a product or service tailored just for them?  We all would. I am an executive platinum status on American Airlines and they always offer me a complimentary meal as a thank you for my status.  It’s a small thing but I do appreciate it.
• Resurgence of Manufacturing – Somewhat in response to the Amazon Effect and the desire for customization, executives are discovering it makes sense to locate manufacturing and last minute customization close to the customer.  For example, even though California is not the state anyone would think for manufacturing, it makes imminent sense when you consider that it is the 5th largest economy in the world. If only we could get CA politicians to support us!  
• Additive manufacturing – What could be closer to your customer than 3D printing on the fly?
• Logistics rules -Again, when considering the impacts of the Amazon Effect and customization, it is quite clear that warehousing close to the customer is also desirable.  However, there are vast cost pressures.  So, you need to be thinking about how to take performance to a new level.  The same is true with transportation – if you even can source a carrier. The last mile is certainly gaining a lot of attention. “Last mile. Last minute” is my new favorite expression.
• Global – We are in a global world.  Are you making global considerations as well as local ones?

What else do you think we should consider?  Drop me a line as I’m interested. No matter what – give the second half of the year some thought and you’ll increase your chances of success.

The post What Should We Be Thinking for the 2nd Half of the Year? appeared first on LMA-Consulting Group, a supply chain consulting firm.