CLAREMONT, CALIFORNIA – February 26, 2024 –  Lisa Anderson, Lisa Anderson, MBA, CSCP, CLTD, President of LMA Consulting Group Inc., a leader in supply chain optimization and transformation, has recently launched the innovative Supply Chain Profitability Assessment. This cutting-edge tool prompts supply chain professionals, operations executives and senior leaders to introspect and critically assess various facets of their supply chains that affect customer performance, with a focus on flexibility and efficiency.

Participants respond to targeted yes/no questions, encouraging them to reflect on their current practices and identify potential areas for enhancement. The assessment covers critical factors such as order fulfillment tracking, production data accuracy, on-time delivery rates and inventory level forecasting,

“In today’s volatile supply chain environment, it’s crucial for professionals to focus on agility and thinking ahead strategically. Customers have high expectations. Keeping the supply chain optimized and agile can meet and even exceed expectations, resulting in continued profitability,” commented Ms. Anderson. “Even high-performing supply chains have room for improvement. The key is planning, communication and establishing contingencies to mitigate long-term effects of disruptions.”

The Supply Chain Profitability Assessment is built on LMA Consulting’s extensive experience in helping businesses navigate and thrive amidst supply chain disruptions and growth. It is an invitation for professionals to critically evaluate their supply chain operations and identify opportunities for strategic improvement.

LMA Consulting invites supply chain professionals to take the Supply Chain Profitability Assessment and embark on a journey toward optimized supply chain excellence. To take the Assessment, click this link. The tool serves as a gateway to transforming supply chain operations, ensuring they are maximized for efficiency and profitability.

LMA Consulting specializes in guiding businesses through turbulent times with strategic formulation, comprehensive supply chain transformation and resilience-building solutions. For more insights, download Ms. Anderson’s eBook, SIOP (Sales Inventory Operations Planning): Creating Predictable Revenue and EBITDA Growth.

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.  A recognized supply chain thought leader, Ms. Anderson has been named a Top 40 B2B Tech Influencer by arketi group, a Top 16 ERP Expert to Follow by Washington-Frank, among 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.  Her primer, “I’ve Been Thinking.” offers strategies for creating bold customer promises and profits. An expert on the SIOP process, advancing innovation and enhancing supply chain resilience, Ms. Anderson is regularly interviewed and quoted by leading publications. For information, sign up for her Profit Through People® 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

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Clients that focus on providing a superior customer experience along with achieving optimal bottom-line results will perform better than competitors.

As companies are searching for ways to successfully navigate these turbulent times, the best ones are achieving a win-win focus on the customer and costs. Since the pandemic, there has been a heightened awareness of the customer experience as companies struggled with supply chain disruptions, delays, shortages, and the lack of resources. Similarly, as inflation has continued to be a drag on profits, companies are focusing additional efforts on cost reduction and margin improvement programs. Best yet, finding win-win solutions that improve the customer experience and cost will achieve substantial business results.

According to Zendesk CX Trends 2023 report, more than 50% of consumers will switch to a competitor after only one bad experience. This trend is not limited to consumers, as Zippia confirms with the finding that companies focusing on the customer experience increase their revenues by 80%. These are powerful statistics and demand attention. Clients that focus on providing a superior customer experience perform better than the rest.

Improving the customer experience without also improving the cost and margins will not support profitable growth. Thus, forward-thinking clients ensure cross-functional teams continually search for cost-reduction opportunities, experiment with new ways of doing business, and trial strategies to take performance to a new level. Continuous improvement alone will no longer cut it. The best companies focus on continuous iterative improvement as well as what can be seen as radical change.

Pertinent Examples

A healthcare products manufacturer wanted to grow sales after a prolonged period of product stability without an upgrade. In addition, key raw material costs increased significantly due to rising input costs derived from oil and natural gas. However, the company was owned by a private equity firm that wanted aggressive growth and a rapid increase in profitability, and they expected price increases to be offset as well as cost reductions to occur while increasing service levels. These conflicting goals could only be resolved with a cross-functional innovation team.

The leadership team empowered a cross-functional team including R&D, Packaging Engineering, Operations, Supply Chain, and Logistics. The primary focus was on redesigning the product so that it would provide improved performance for the customer while using less materials, optimizing packaging, and improving operational costs. The team involved both customers and suppliers in a collaborative design effort to find opportunities to redesign materials to work better yet reduce usage and scrap, optimize how the product ran on the production lines, and minimize warehousing and shipping costs with compressed packaging optimized for storage and transportation. The team launched an upgraded product line that spurred a 30% increase in sales while reducing costs by 20% in addition to offsetting key input price increases.

Additionally, the manufacturer implemented a demand planning and vendor managed inventory (VMI) program for its number-one customer. By looking into its customer’s demand data and inventory position at its distribution centers across the United States, the company was able to optimize its replenishment plans and reallocate products in a way that maximized customer service levels and reduced lead times while minimizing inventory levels internally and at its customer. In addition, the company was able to plan, which enabled it to optimize truckloads, utilize ideal routes, and maximize the volume of product per truckload, thereby saving 20% in freight costs. Most importantly, it soared to the top category on its customer’s scorecard.

Another medical device manufacturer followed the same path by working closely with its key customer to optimize product designs to provide innovative customer solutions while making the product less expensive to manufacture. It also invested significantly upfront in upgrading to ISO 13485 to ensure compliance and customer satisfaction while expanding the value internally across the entire shop (medical and non-medical) to standardize and promote efficiencies throughout the product flow. The company expanded business with its key customers and improved efficiencies with standard processes and automation wherever possible. Additionally, it assessed customer and product profitability and reviewed operational improvement ideas to reduce scrap rates and improve efficiencies.

Forward-thinking companies think strategically about creating a win-win of enhanced customer value and bottom-line results. Clients that focus on the customer and develop innovative and collaborative solutions tend to also outperform their competition in profitability and performance. During times of volatility, the companies focused on customers and cost will rise above the noise.

Originally published in Adhesives & Sealants Industry, December 2023

Did you like this article?  Continue reading on this topic:
Proactive Backlog Management to Dramatically Improve Service

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In the last month, clients have been proving the critical importance of SIOP (Sales Inventory Operations Planning), also known as S&OP or IBP (Integrated Business Planning) time and again. From process (such as food & beverage), job shop (such as aerospace) and ETO (engineered-to-order such as windows & doors) manufacturers to value-add distributors (such as lawn & garden tools), the SIOP process brings focus to the appropriate areas to align demand with supply and ensure execution success. SIOP spans the end-to-end supply chain and includes resources from Sales & Marketing to Manufacturing, Engineering and Supply Chain to Finance & Accounting.

How Does the SIOP Process Work?

The SIOP process facilitates a monthly cadence that starts with the sales forecast and demand planning process, translates those requirements into a manufacturing and supply chain plans, and highlights critical decisions and actions that need to be taken to support the successful execution of those plans. The process results in a predictable revenue plan, a reliable operations and supply chain plan, and a resulting inventory and profitability forecast. The process enables customer and product profitability reviews, make vs buy decisions, and it facilitates the assessment and actions surrounding supply chain risk. To learn more about how to use the process to achieve profitable growth, read our book, SIOP (Sales Inventory Operations Planning): Creating Predictable Revenue & EBITDA Growth.

SIOP Results

Clients gain substantial results by staying committed to a SIOP process. We frequently hear “we already discuss these topics”. However, the organizations that follow a strict cadence in demand and supply reviews, involve executives in the process and communicate across the organization find opportunities and pivot to what’s coming long before those clients that do not follow a SIOP process. The bottom line is they change from reactive to proactive, and bottom line results follow (profitable growth, accelerated cash flow, high customer service levels, operational efficiencies, etc.).

If you are interested in reading more on this topic:
Predictable Revenue & Resilient Operations for Manufacturing Success

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I am thrilled to announce that I have published a book on SIOP (Sales Inventory Operations Planning), also known as S&OP and IBP (Integrated Business Planning).

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CLAREMONT, CA—Smart companies are keeping an eye on the impending economic downturn but not prepared to bring everything to a grinding halt, according to The Society for the Advancement of Consulting® (SAC). Opportunities exist—in providing better customer value, retaining talent, and using technology smartly—but only for companies that have the right momentum.

The Four Big Opportunities You Can Take Now

“Aside from tax planning, our most successful clients are not thinking about year-end,” points out Lisa Anderson, president of Claremont, CA-based LMA Consulting Group, Inc. and manufacturing expert known as the Strongest Link in Your Supply Chain. “Instead, they’re focusing on the opportunities ahead.”

“The big concern now is a potential downturn in demand, driven by continuing supply chain disruptions and surging inflation,” she explains. “But opportunities exist too. As more owner-operators retire, companies are purchased, supply chains move, and economic volatility provides challenges for the competition.”

“Those who understand their customers’ world are best placed to take advantage of these opportunities. That means determining their ideal customers, the value proposition in the marketplace, and investing in talent and technology. Together, this delivers a superior customer experience to those ideal customers,” adds Anderson.

Why Not to Let Your Talent Walk Out the Door

“What things are you doing in 2022 to ensure your talent sticks around in 2023?” asks Diane L. Garcia of Lorraine Consulting, LLC, who has over 15 years’ experience in operations and supply chain management and is an expert in helping clients improve their unique business processes. Diane applies cutting-edge supply chain optimization knowledge and implements best practices with manufacturing and distribution companies in North America.

“My manufacturing clients across every industry are experiencing some degree of talent constraints,” notes Garcia. “The best way to obtain talent is to retain what you have within your organization. Alongside supporting year-end financial and customer service goals, I recommend you make your teams feel valued. Hint: People enjoy time off during the holidays.”

Best to Make Tweaks in the Final Weeks

“Preparing for year-end should have taken place earlier in the year,” according to Kathleen McEntee is President of Kathleen McEntee and Associates Ltd, a full-service marketing firm focused on distinguishing businesses with practical marketing strategies and tactics that deliver results. “Goals established. Game plans developed. Team determined. ROI identified. Measurements in place so that tweaks could be made along the way. Now is the time to make any last-minute tweaks to encourage customers to engage, so as not to get caught short—this is the time to update messaging and plan additional communications.”

“It’s also the time to begin the planning process for 2023,” advises McEntee. “Nobody has a crystal ball, but planning for the expected and the unexpected will put companies ahead of their competition.”

Time to Invest, Not to Panic

Successful companies use economic disruptions and market volatility as an opportunity to invest in customers and marketing, 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, and year end is a perfect time to demonstrate support.

“This is the time when customers need to know they are valued, their needs will be met, and they can count on their partners and suppliers to come through as needed,” she notes.

“This means taking the time to help customers prepare for the activities they need to be successful in the new year, and to ensure they aren’t derailed by the latest news,” Popky adds. “Markets go up and down. Inflation causes price hikes. Customers will continue to support those companies who provide them consistent ongoing value—regardless of external events.”

Get this Mindset into Your Managers for 2023

“Stop preparing for year-end,” said SAC Founder Alan Weiss, PhD. “Despite the financial requirements of a fiscal year that coincides with the calendar year, there is nothing magical about year-end. In fact, the attitude might better be “year beginning.” Too many companies come to a screeching halt and then have to restart their engines from a standing stop in the new year. Full speed ahead.”

Originally posted on SAC website: October 1, 2022

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Lisa Anderson, manufacturing and supply chain expert and president of LMA Consulting Group states in this article for AWCI Construction Dimensions, there are operational and supply chain priorities required to be ready to absorb additional sales. One of the most important components is to have planning and scheduling processes required to be ready to absorb capabilities.

“Inflation has taken root. Businesses everywhere are dealing with annualized cost increases of nearly 7%—the fastest pace in 40 years and significantly higher than the 1.8% average of the past decade. The resulting upticks in operating costs can cause serious damage to the bottom line.

Experts don’t see relief any time soon. They point to a number of root causes, one of which is energy.

Of all the steps businesses can take to mitigate the bottom-line effects of inflation, the most important is better management of cash flow. Inflation tends to accelerate the drain of money from company coffers, and throttle the flow that comes in. If left unaddressed, these battling trends can gut profits and threaten business survival. Experts advise looking at the coming months with an eye toward estimating what will happen to cash balances.

Historic data, of course, may provide a less than reliable foundation for future forecasts. Whatever the estimates for what lies ahead, businesses can avoid cash squeezes by accelerating accounts receivable and stretching accounts payable. For the former, experts advise running regular aging reports. How much do customers owe in increments of two weeks, 30 days and 60 days? Any growth in the numbers over time might indicate a steady deterioration of cash flow.”

Click here for the full story.

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In this episode of Interlinks, I am joined by my colleagues from the Supply Chain Special Interest Group at the Society for the Advancement of Consulting:

• Lisa Anderson, President of LMA Consulting Group Inc. in the Los Angeles metro area in California
• Dr. Karen Y. Wilson-Starks, President and CEO of Transleadership Inc, in Colorado Springs

In this discussion we explore some of the challenges and remedies that companies across the sectors are encountering as they face into the post-COVID future and the challenge of a never normal world with ongoing supply chain disruptions, geopolitical tensions, and climate change.

Originally published on Interlinks, June 5, 2022 .

Click here to download.

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Our most successful clients are constantly thinking about how to thrive in ever-changing, volatile conditions.  They cannot afford to wait to see what is working for their competitors and then go “all in”. Instead, only those who are resilient, innovative, and thinking five steps ahead will thrive in the next decade. 

Thus, they are constantly evaluating the marketplace, their industry, impacts related to the geographies they serve, and changes impacting their supply chain partners. They are looking for what trends might impact their business and if there are opportunities they should pursue. In addition, they are scanning the environment for potential bottlenecks and risks that could negatively impact their plans and assessing strategies to mitigate any serious risks. 

We see our role as staying ahead of the curve so that we can help manufacturers and value-add distributors proactively navigate these volatile times while growing the business, increasing EBITDA, and accelerating cash flow.  Thus, we’ve developed a proprietary process to incorporate the following:

• Industry Best practices:  incorporating the best strategies that drive proven results from industries as diverse as aerospace and defense, building and construction products, food & beverage, and life sciences will allow you to use proven techniques for the 80% while focusing extra attention to shine on the 20% that is your unique differentiator
• The Advantage of Size:  whether incorporating the nimble, entrepreneurial spirit of a small or medium size company, the results focus of a private equity backed company to the rigorous process orientation and cross-training advantage of a large, complex, global organization, your organization will gain.
• Global Trusted Advisor: including viewpoints from expert advisors from diverse disciplines (financial, legal, business), global communities, and trade and professional associations, you’ll gain valued insights instantaneously. 
• Practical Results: And, most importantly, we’ve bounced these against “what works”, is immediately pragmatic and has delivered rapid results.

5P Accelerator(SM) is our proprietary process that fast-tracks growth and profits.

Our 5P Accelerator(SM) focuses on the core factors of success:

• People:  Success begins and ends with people.  Clients that consider people their #1 asset far surpass the results – and more importantly, the engagement of their people than those who see them as costs. 
• Processes: Systems, processes, and technologies enable the standardization and automation of best practices while also accounting for the ability to tailor the process on the fly to support changing customer requirements and market conditions. 
• Plan: There is the “right” mix of planning the work; working the plan. Analysis paralysis and getting lost in plan details will lead to quick failure; however, on the other hand, jumping into action before ensuring you have a directionally correct plan will cause you to sprint on a hamster’s wheel getting nowhere. 
• Priorities: No two products, customers, or tasks are created equal, and if everything is a priority, nothing will be a priority. Since focus drives 80% of success, prioritization becomes essential. Think through benefit, impact, urgency, the rate the issue is improving or worsening, and sequencing when evaluating priorities. Choose no more than 3 critical priorities to focus on simultaneously.
• Profit drivers:  To ensure bottom line results, you’ll need to identify profit drivers. Search for those levers you can pull that will increase pricing power, reduce key cost components, apply technology and automation to increase margins, and that will differentiate you from the competition and accelerate growth. 

As you roll out the 5P’s, success will start to follow; however, to accelerate results and ensure sustainability in your rollout, it will be important to also pump up your wheel by understanding the power of focus, why speed is more important than perfection, and how relationships will drive your end-to-end supply chain success, and you will fast-track growth and profits.

Contact us if you are interested in leveraging 5P Accelerator(SM) at your organization.

Updated as of April 20, 2022

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If you don’t have a modern ERP system that will support your business growth and changing customer requirements that also supports your ability to scale profitability and with greater levels of automation and predictive analytics, you need an upgraded ERP system YESTERDAY! Just a few years ago, we could confidently tell clients that although they didn’t have a modern ERP system, they could better utilize what they had and make significant progress; however, it is no longer enough.

To thrive post-pandemic, you’ll need advanced functionality that can support evolving business requirements. There is no time to wait for critical customer information and key data for decision-making. Instead, you’ll need a modern ERP system that supports customer requirements, SIOP (sales, inventory, and operations planning) models, predictive analytics and more. I recently talked with CIO magazine about selecting and implementing an ERP system. I’d love your feedback and insights on this topic.

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

What better to address your questions on selecting and implementing an ERP system than to read the CIO magazine article.

Please keep us in the loop of your situation and how we can help your organization successfully navigate the current volatility and, more importantly, emerge above and beyond. Several of these types of topics are included in our new eBook Emerging Above and Beyond: 21 Insights for 2021 from Manufacturing, Supply Chain & Technology Executives. Download your complimentary copy.

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