Lisa Anderson was quoted in Food Logistics’ Top 10 Trends to Shape Cold Food Chain in 2024 recently. With the help of some supply chain visibility, sustainable measures, more focus on people and the ability to pivot at a moment’s notice, 2024 is anyone’s and everyone’s game to succeed.

Top trends to watch in 2024

Nearshoring, risk mitigation and building resiliency. The top supply chain trends to watch in 2024 include a keen focus on mitigating supply chain risk, reshoring and nearshoring to source reliable production closer to customers, finding backup sources of supply, creating resiliency in the end-to-end supply chain, digitizing the supply chain, and keeping an eye on cybersecurity threats, according to Lisa Anderson, president, LMA Consulting Group, Inc.

“Since there is heightened risk in the global supply chain due to geopolitics, conflicts over natural resources, ongoing concerns related to the Russia-Ukraine war, South China Seas, new threats in the Suez Canal related to the Israel-Hamas conflict, Panama Canal issues related to drought, and concerns about natural disasters, labor negotiations/labor shortages, and cyber threats, smart executives are taking control,” she adds.

Sustainability. Despite all of the challenges and disruptions the supply chain industry faces, sustainability still remains a key trend for 2024, especially as companies race to deliver on their net-zero commitments by 2030.

“In many sectors, Scope 3 emissions can account for up to 80% of a company’s total emissions. Lowering Scope 3 presents one of the most significant opportunities for decarbonization, and the industry will look for opportunities to gain operational efficiencies,” Gerdeman says. “For example, our clients are using our analytics to optimize the mode, route, and equipment selection for temperature-sensitive goods, saving money by protecting products from freezing or spoilage, reducing refrigeration costs when cold blankets do the trick, reducing fuel costs, and lowering their carbon emissions.”

In fact, global food and beverage production accounts for roughly 34% of global greenhouse gas emissions (GHG), and according to the Food and Agricultural Organization, the food and beverage supply chain is on track to become the industry’s largest polluter. OXFAM found that the emissions of 10 of the largest food and beverage fleets equaled the total emissions of all Scandinavian countries combined.

State of transportation

The driver shortage still exists, diesel fuel costs are still on the rise and U.S. container imports continue to experience an uptick month-over-month.

The Yellow Freight bankruptcy also created a ripple effect on the industry, one that is still somewhat being felt.

“Customers had to scramble, opportunities arose for competitors, and the supply chain evolved,” Anderson says. “Similarly, the threat of a potential rail strike and West Coast port strike caused customers to transition to alternate modes of transportation and pursue alternate routes. The same is occurring with the UPS strike and the UAW strike as supply chains are moving to account for these types of issues.”

State of e-commerce

E-commerce in grocery didn’t really become a thing until COVID-19 forced several supermarkets and grocery retailers to create a B2C arm of their business almost overnight.

Fast forward to what will be 4 years later, and the rise of e-commerce in grocery is here to stay.

Similarly, B2B channels are also growing.

“For example, cold chain needs will explode as computer chip capacity comes online with the expansion of manufacturing with the CHIPS Act,” says Anderson. “Thus, cold chains are expanding at a rapid rate and will continue to thrive in 2024. Cold storage is limited, and even though there are inflationary pressures escalating the cost to build cold storage facilities, growth will be robust. Innovation will be essential to meeting these needs in a way that will provide customer value in a sustainable and profitable manner in 2024.”

What’s to come in 2024?

While 2023 may have been the Year of Bottlenecks, 2024 opens the door to longevity, peace and prosperity.

Yet to achieve those elements, companies must be more proactive, more agile and more forward-thinking.

“Instead of being reactive, forward-thinking executives are making the shift to being proactive. Thus, they are setting up a resilient supply chain with the ability to scale up/ down quickly, utilize backup sources of supply, alternate logistics and transportation providers and routes, and educating a cross-functional workforce. They are also rolling out proactive and predictive demand and supply planning programs such as SIOP (Sales Inventory Operations Planning), forward positioning of inventory and capacity, and predictive analytics. As no client has enough high-skilled talent, the best organizations are automating, digitizing, and using robotics, autonomous vehicles, artificial intelligence, IoT and the metaverse (AR/VR) to best utilize limited resources while supplying customer needs,” says Anderson.

Read the full article here

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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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As originally published in Cision PR Newswire on May 9, 2023

CLAREMONT, Calif., May 9, 2023 /PRNewswire/ — Manufacturing and Supply Chain Expert Lisa Anderson, MBA, CSCP, CLTD, known as the Strongest Link in Your Supply Chain® and President of LMA Consulting Group Inc., has published a Special Report – The Road Ahead: Business, Supply Chain & The World Order. 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.

“While the visible signs of supply chain chaos have dissipated, business volatility and disruptions remain high. With the world order in a state of flux, risk is high. Yet because everything is interconnected, companies have an opportunity to stay ahead of their ideal customers’ needs. They can do this by reconfiguring their supply chains, leveraging technology and attracting and continually developing talent to leapfrog their competitors to secure a lead position in their marketplace,” commented Lisa Anderson.

The Road Ahead: Business, Supply Chain & The World Order is a special report that captures comments from trusted advisors and experts from various disciplines about what their most successful clients are doing and what companies should do to take advantage of opportunities in 2023 and beyond. “In talking with my colleagues, it became apparent that the same challenges, issues and opportunities resonate among business disciplines. Each discipline requires attention. Making required changes is not for the faint of heart. The opportunity in front of companies today is the greatest since the Great Depression,” she said.  

From cybersecurity, logistics, insurance and talent acquisition to nearshoring, reshoring and friendshoring, the tasks are many, but the opportunity is significant. “The only question will be whether your company is ready to take advantage of the opportunities to grow profitably or if you’ll struggle for survival. I hope that our Special Report sheds light on these opportunities,” she concluded.

Ms. Anderson also recently released: SIOP (Sales Inventory Operations Planning): Creating Predictable Revenue and EBITDA Growth to help organizations understand the value of a proven process.  The book is complimentary on the LMA Website. It can also be found on Amazon digitally and on-demand print at:  SIOP at amazon.com and on iTunes: Apple. Ms. Anderson also provides supply chain updates through Supply Chain Chats, a series of short videos that address current topics, issues and challenges related to supply chains.

About LMA Consulting Group – Lisa Anderson, MBA, CSCP, CLTD
Lisa Anderson is the founder and president of LMA Consulting Group, Inc., specializing 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, a Top 16 ERP Expert to Follow by Washington-Frank, in the Top 10 Women in Supply Chain by Warner PR, in the top 55 Supply Chain & Logistics Experts by flexport, and a woman leader in Supply Chain by RateLinx. She has been interviewed by Fox News, published the special report: Thriving in 2022: Learning from Supply Chain Chaos – Insights from 22 Trusted Advisors and the eBook, Future-Proofing Manufacturing & the Supply Chain Post COVID-19, Her primer, I’ve Been Thinking, provides strategies for creating bold customer promises and profits. An expert on the SIOP process (Sales, Inventory Operations Planning), advancing innovation, and making the supply chain resilient, Ms. Anderson is regularly interviewed and quoted by publications such as Industry Week, Bloomberg, and The Wall Street Journal. For information, sign up for her Profit Through People® Newsletter or for a copy of her book, visit LMA-ConsultingGroup.com. 

Media Contact
Kathleen McEntee
Kathleen McEntee & Associates, Ltd.
760-262-4080
358715@email4pr.com 

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Lisa Anderson, manufacturing and supply chain expert and president of LMA Consulting Group comments that supply chains are becoming more sophisticated and are ever changing in an article which was picked up by Southern CA CEO.

‘“The pandemic was a wake-up call to the importance of visibility. While supply chains were starting to be stretched pre-pandemic, many simply broke when crushed by supplier and delivery challenges. Manufacturers realized they needed better visibility. “Manufacturers set up dashboards for a more global picture of the many moving parts. This allowed them to see suppliers upstream and make adjustments.  First, for incoming materials and sources of supply. Were they produced, in transit, or stuck at a port? Then, for finished products. When was it scheduled for production? Was it waiting for shipment or in transit to a DC or customer? When was delivery expected? All are critical to the supply chain,” Ms. Anderson commented.

The more each supply chain partner can gain visibility, the better they can plan, and the more resilient they will be with changing conditions. Supply chain visibility includes the manufacturer, supplier, logistics providers, and in many cases, the customer. This is especially helpful to logistics providers (the furthest downstream) when production locations are switched. All are equal partners in the process.’

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CLAREMONT, CALIFORNIA – August 9, 2022 –  Manufacturing and Supply Chain Expert Lisa Anderson, MBA, CSCP, CLTD, known as the Strongest Link in Your Supply Chain and President of LMA Consulting Group Inc., works to protect client supply chains by focusing on supply chain visibility and driving the SIOP (Sales Inventory Operations Planning) process. 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 pandemic was a wake-up call to the importance of visibility. While supply chains were starting to be stretched pre-pandemic, many simply broke when crushed by supplier and delivery challenges. Manufacturers realized they needed better visibility. “Manufacturers set up dashboards for a more global picture of the many moving parts. This allowed them to see suppliers upstream and make adjustments.  First, for incoming materials and sources of supply. Were they produced, in transit, or stuck at a port? Then, for finished products. When was it scheduled for production? Was it waiting for shipment or in transit to a DC or customer? When was delivery expected? All are critical to the supply chain,” Ms. Anderson commented.

The more each supply chain partner can gain visibility, the better they can plan, and the more resilient they will be with changing conditions. Supply chain visibility includes the manufacturer, supplier, logistics providers, and in many cases, the customer. This is especially helpful to logistics providers (the furthest downstream) when production locations are switched. All are equal partners in the process. “With better planning comes better service, profitability, cash flow and, ultimately, a superior customer experience. It’s all about having the right product, at the right place, at the right time to meet customer demand,” she said.

“The SIOP process, which balances sales, inventory and operations planning processes across the supply chain enables visibility success and ultimately, the desired customer experience. It’s complex. It extends beyond your organization to your customers and suppliers. It takes time. Yet, it works,” she concluded.

Supply chains have become sophisticated and are ever-changing. Ms. Anderson recently introduced Supply Chain Chats, a series of short videos that address current topics, issues and challenges related to supply chains. Ms. Anderson also released: Thriving in 2022: Learning from Supply Chain Chaos – Insights from 22 Trusted Advisors, a Special Report to provide supply chain insight and strategies for manufacturers.

About LMA Consulting Group – Lisa Anderson, MBA, CSCP, CLTD

Lisa Anderson is the founder and president of LMA Consulting Group, Inc., specializing 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, a Top 50 ERP Influencer by Washington-Frank, one of the most influential in Supply Chain by SAP and a woman leader in Supply Chain by RateLinx. She was recently interviewed on Fox News, in early 2021published a Special Report, Emerging Above & Beyond: 21 Insights from Manufacturing, Supply Chain & Technology Executives, the ebook, Future-Proofing Manufacturing & the Supply Chain Post COVID-19, and her primer, I’ve Been Thinking, strategies for creating bold customer promises and profits. A 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, Bloomberg, 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.

As originally published on ExpertClick

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Manufacturing and Supply Chain Expert Lisa Anderson, MBA, CSCP, CLTD, President of LMA Consulting Group Inc., shares her thoughts on 3D printing.

Whether you’re a mass clothing company crafting the latest fashions or a mid-sized facility baking and packing bread for local bakeries, manufacturing ERP software can streamline production, keep all eyes on your supply chain and provide compliance adherence. It’s also critical to invest in technology-based manufacturing trends to maintain your competitive edge and boost your KPIs.

Many manufacturing industries saw significant growth in 2021: Beer, heavy-duty trucks, automobile engines and parts, and respiratory ventilators and medical devices. The COVID-19 pandemic substantially impacted medical devices and respiratory ventilators because of the hospitals’ high demand to keep their patients alive. The pandemic has also, directly and indirectly, trickled down into other industries and subsets.

However, you don’t want to invest in every trend you see because it’s popular or your colleagues use them. Like software, if the trend doesn’t mesh with your practices, it’ll cause friction and harm instead of helping revenue. We took the time to craft a solid list of these technological innovations and received opinions from manufacturing experts. Before we begin, let’s examine popular processes and growing industries.

There are several processes manufacturers consider when they craft products. Some companies may implement more than one.

3D printing is considered the sixth primary manufacturing process for numerous reasons. It can produce parts and models much more swiftly than waiting to receive them from other facilities. You also reduce waste.

We asked Lisa Anderson, founder and president of LMA Consulting Group Inc., to weigh in on how 3D printing turns production on its head

Click here for the full story.

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The global logistics industry will grow from its current hefty size of $8 trillion to $23 trillion by 2023 – what a sharp contrast!  Have you thought about how to be viable with these massive shifts going on?  If not, you sure should as it is coming and will just pass you by.  

What is noteworthy in logistics innovation?  Several keys to success include:

1. Interestingly, blockchain arose again.  It could completely change the landscape so it’s worth paying attention.
2. Next generation technology and machine learning – there is more and more discussion on this topic everyday.  This gets into artificial intelligence as well.   
3. Autonomous vehicles – last we heard, it will be here by 2020.  Time flies – undoubtedly, it will be here before we realize it.  There is vast opportunity to address a critical component of speed in the supply chain – keep trucks moving more frequently to deliver goods more quickly in a safe and automated way with minimal human intervention.  It isn’t all theory; there are road tests being performed in Southern California in conjunction with governmental entities.
4. Capacity aggravation / visibility – there is a large potential for this topic.  One example in in reviewing large amounts of data for carriers.  Convoy has built an app to match trucking companies with shippers that need to move freight.  The speaker talked about how they could even tell which trucker might be interested in a particular route or to get home for a special occasion that they could take into effect.  Very interesting!

There is vast disruption with emerging technologies in this rapidly growing $8 trillion dollar industry.  Perhaps we should pay attention.

© Lisa Anderson

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