Amazon effect Archives - LMA-Consulting Group, a supply chain consulting firm https://www.lma-consultinggroup.com/tag/amazon-effect/ Sat, 17 Feb 2024 02:17:17 +0000 en-US hourly 1 https://wordpress.org/?v=6.5 Supply Chain Automation is Changing the Landscape https://www.lma-consultinggroup.com/supply-chain-automation-is-changing-the-landscape/ https://www.lma-consultinggroup.com/supply-chain-automation-is-changing-the-landscape/#respond Tue, 02 Jan 2024 23:47:18 +0000 https://www.lma-consultinggroup.com/?p=23113 Automation is coming, whether or not we get on board. Most executives do not want to be the guinea pig for new technology as they cannot afford disruption and risk.

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Lisa Anderson was quoted in a SelectHub article on automation changing the supply chain landscape: “Automation is coming, whether or not we get on board. To thrive in today’s Amazon-impacted business environment, customers expect rapid deliveries, 24/7 accessibility, last minute changes and easy returns with innovative service options such as Amazon Key In-Car Delivery. To meet these ever-increasing expectations while increasing profitability and cash flow, executives are looking to technology such as robotics, IoT, artificial intelligence, automation equipment and predictive analytics to accomplish these objectives.”

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When the term automation comes up, most people experience a brief sci-fi laden slideshow in their heads. It’s the year 2021, humanoid robots take to the streets disrupting life as we know it and clashing with their old human masters. Lucky for us, when it comes to the world of supply chain automation, robots are more about increasing efficiency and less the whole enslaving humanity angle.

It’s no secret that demand for flexible, accurate and nimble supply chain logistics is on the rise. As consumer and client bases continue to grow at rapid rates, supply chains will need to adapt to larger, more complex methods of information and product transportation. However, there are many time-consuming processes that go along with managing a successful supply chain.

Here is where automation steps in. Time-wasting processes can fall into automated workflows, and human employees can spend more time forecasting, analyzing trend data and developing relationships with clients.

We spoke to Lisa Anderson, the founder and president of LMA Consulting Group Inc., about her thoughts on automation in the supply chain.  “Automation is coming, whether or not we get on board. To thrive in today’s Amazon-impacted business environment, customers expect rapid deliveries, 24/7 accessibility, last minute changes and easy returns with innovative service options such as Amazon Key In-Car Delivery. To meet these ever-increasing expectations while increasing profitability and cash flow, executives are looking to technology such as robotics, IoT, artificial intelligence, automation equipment and predictive analytics to accomplish these objectives.”

Anderson also had this to say on the subject of the cost of automation: “Most executives do not want to be the guinea pig for new technology as they cannot afford disruption and risk. Thus, as new technologies such as robotization and AI advance, they are starting to put their toe in the water to test these technologies and partner with experts to find ways to utilize these technologies to achieve bottom-line improvements. Most executives are so busy trying to keep up with Amazon-like customer expectations while meeting Board financial objectives, they are waiting until these concepts are proven and implementable before jumping in. Yet, we are seeing a definite uptick in interest, trials and small implementations in the last six months.”

 

To read the full article, click here.

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Manufacturing and Supply Chain Technologies: From 3D Printing to AI

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International Business Academy Workshop https://www.lma-consultinggroup.com/international-business-academy-workshop-i/ https://www.lma-consultinggroup.com/international-business-academy-workshop-i/#respond Wed, 27 Apr 2022 15:54:07 +0000 https://www.lma-consultinggroup.com/?p=18155 Riverside International Business Academy: Supply Chain Resiliency Lisa Anderson, Supply Chain Expert and President of LMA Consulting Group discusses the many layers of supply chain challenges and how to create supply chain resiliency.

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Riverside International Business Academy: Supply Chain Resiliency Lisa Anderson, Supply Chain Expert and President of LMA Consulting Group discusses the many layers of supply chain challenges and how to create supply chain resiliency.

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Industrial Insights: How Consultants Can Help Your Manufacturing and Distribution Business with Lisa Anderson https://www.lma-consultinggroup.com/industrial-insights-how-consultants-can-help-your-manufacturing-and-distribution-business-with-lisa-anderson/ https://www.lma-consultinggroup.com/industrial-insights-how-consultants-can-help-your-manufacturing-and-distribution-business-with-lisa-anderson/#respond Wed, 24 Mar 2021 19:39:43 +0000 https://www.lma-consultinggroup.com/?p=14797 Manufacturing and Supply Chain Expert Lisa Anderson, MBA, CSCP, CLTD, president of LMA Consulting Group Inc. discusses how a consultant can help executives navigate difficult business challenges and adapt in today’s manufacturing and supply chain.  Full Story

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Manufacturing and Supply Chain Expert Lisa Anderson, MBA, CSCP, CLTD, president of LMA Consulting Group Inc. discusses how a consultant can help executives navigate difficult business challenges and adapt in today’s manufacturing and supply chain. 

Full Story

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Made In China or Made in the U.S.A.? https://www.lma-consultinggroup.com/made-in-china-or-made-in-the-usa/ https://www.lma-consultinggroup.com/made-in-china-or-made-in-the-usa/#respond Thu, 21 Jan 2021 21:46:24 +0000 https://www.lma-consultinggroup.com/?p=14464 Made in China or made in the U.S.A.? There is a lot of talk about this critical, hot topic. Said another way, will reshoring increase? According to executive surveys, according to clients, according to top supply chain consultants, the answer is undoubtedly trending to MADE IN THE U.S.A. A few noteworthy points on the topic [...]

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Made in China or made in the U.S.A.? There is a lot of talk about this critical, hot topic. Said another way, will reshoring increase? According to executive surveys, according to clients, according to top supply chain consultants, the answer is undoubtedly trending to MADE IN THE U.S.A.

A few noteworthy points on the topic overall (of course, it depends on your industry, company and unique situation; however, consider these from an 80/20 standpoint):

  • COVID exposed risks: Suddenly, China manufacturing came to a screeching halt with COVID exposing the global risk in the supply chain. Establishing priorities were not necessarily the choice of your supply chain partner. How exposed is your supply chain?
  • Amazon Effect: Customers expect immediate responsiveness, driving the need for speed and resilience in the supply chain. Were you able to respond?
  • Labor is no longer noteworthy: Labor costs have decreased significantly in proportion to the total cost. Wages continue to rise in China. Productivity has increased. Technological advances have made labor less relevant. Did you stay too long in China due to inertia?
  • IP theft: Executives are definitely concerned. What could be more important?
  • Changing laws: China put a new law in place about a year ago that allows the government to see anything that comes across a server. Thus, everything sent to China will be widely known. Are you OK with competitors gaining access to your secrets?
  • USMCA: This new agreement encourages increased collaboration in N.A. so that executives have more control over their costs, speed to market and flexibility and responsiveness to changing conditions. Have you explored new partnership opportunities?

What are your plans for manufacturing? Of course, many organizations moved manufacturing to Vietnam. However, is your Vietnam facility run by Vietnam or by China? You might have simply moved your issue. No one approach is always best. Instead, the key question is as follows: Are you minimally diversifying your supply chain? If not, jump on it. If you are interested in talking through these strategies further, contact us to discuss your situation and objectives.

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Reshoring: Is it All Hype or Action?

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Reshoring in a Post COVID World & Upcoming Expert Panel https://www.lma-consultinggroup.com/sbc-9-28-2020/ https://www.lma-consultinggroup.com/sbc-9-28-2020/#respond Mon, 28 Sep 2020 21:34:06 +0000 https://www.lma-consultinggroup.com/?p=13220 I was just interviewed by SAP Insights about the localization of supply chains and whether reshoring is a pipe dream or reality. Stay tuned for that article although this hot topic continues to arise as manufacturers and product-based companies realize the significant risk of having their full supply chain offshore without a well-thought-out strategy. Listen [...]

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Supply Chain Briefing
I was just interviewed by SAP Insights about the localization of supply chains and whether reshoring is a pipe dream or reality. Stay tuned for that article although this hot topic continues to arise as manufacturers and product-based companies realize the significant risk of having their full supply chain offshore without a well-thought-out strategy. Listen to my What’s Happening video and read my recent article in Brushware magazine, Reshoring: Is it All Hype or Action? In addition, I moderated a panel of global manufacturing and supply chain experts about Reshoring in a Post COVID World. Listen to our recordings here.

While talking with SAP, we covered the gamut of issues related to reshoring.
  1. Momentum already underway pre-COVID – the Amazon Effect, the decreasing importance of labor cost, the increasing importance of technology, the impact of trade wars and ability to reduce risk in your supply chain.
  2. The turning point from talk to actionCOVID has pushed us over the edge from “all talk” to tangible steps forward. Proactive clients were already moving from China to Vietnam (for labor intensive products), India (also for labor intensive products), Mexico (to gain a customer edge for higher labor intensity products) and the U.S. for a superior customer experience and rapid customization. COVID has made everyone stop and think.
  3. What’s involved in moving? – It isn’t a ‘no-brainer’ to pick up from China and simply move to the U.S. You have to consider your assets a sunk cost (largely) although hopefully you have sales in the Asia region to allow for a ramp down. Depending on whether you are going to partner, have a manufacturing base to expand or are building from scratch, there are vastly different plans that must be put in place. Talent, suppliers, infrastructure, local regulations and much more must be considered.
Read more about these types of topics in my eBook,  Future-Proofing Manufacturing & Supply Chain Post COVID-19. Gain ideas and strategies to successfully emerging from coronavirus and thrive long-term. If you are interested in doing an assessment and rapid roadmap tailored to your company, please contact us about this new service offering.
 
Please share your stories, challenges, ideas and successes.

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Interview with Fender Guitar Executive https://www.lma-consultinggroup.com/interview-with-fender-guitar-executive/ https://www.lma-consultinggroup.com/interview-with-fender-guitar-executive/#respond Fri, 07 Feb 2020 16:04:20 +0000 https://www.lma-consultinggroup.com/?p=10701 Can people and robots work side-by-side? It seems to be the hot topic lately.  Fender Guitar’s Senior VP of Operations, Ed Magee and I talked about talent, technology and transition after the Manufacturing Summit. At Fender, skilled craftsmen and craftswomen are critically important.  Yet, Fender also automates where it makes sense. Technology working hand-in-hand with [...]

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Can people and robots work side-by-side? It seems to be the hot topic lately.  Fender Guitar’s Senior VP of Operations, Ed Magee and I talked about talent, technology and transition after the Manufacturing Summit. At Fender, skilled craftsmen and craftswomen are critically important.  Yet, Fender also automates where it makes sense. Technology working hand-in-hand with your #1 asset, your people, can assist in improving the craftsmanship, as well as safety. Ed considers training and development to be a key to success.

We also talked about potential recessions and disruption. Certainly, in today’s Amazon-impacted environment with global volatility, there will be continued ebbs and tides to navigate. Ed mentioned the importance of creating community and flexibility. Invest in your employees during times of boom AND bust. Don’t be afraid of the cycle and keep the lessons in mind as you think through your business cycle, and you’ll future-proof your manufacturing operation. Maintain focus, don’t cut back on training and development when everyone else does and you’ll be likely to speed by the rest.

Watch our interview to learn more and gain a few insights. What are you doing to future-proof your manufacturing operation and related supply chain? What should you be doing? Ed and I concur. If you aren’t starting with your people, nothing else will matter.

No matter how high tech key clients go, the most successful and sustainable clients accompany high tech with high touch. You’ll gain some strategies for people in our Profit through People archives as well as with our new LMA-i, LMA-Intelligence series, Future-Proofing Your Manufacturing & Supply Chain. Contact us to discuss further.

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Manufacturing Expert, Lisa Anderson, Gauges Last Decade Advancement to Position the Next https://www.lma-consultinggroup.com/press-release-1-30-2020/ Mon, 03 Feb 2020 18:59:05 +0000 https://www.lma-consultinggroup.com/?page_id=8521 CLAREMONT, CALIFORNIA – January 30, 2020 –  Manufacturing and Supply Chain Expert,  Lisa Anderson, MBA, CSCP, CLTD, president of LMA Consulting Group Inc., reaffirms that advancements in manufacturing during the 2010’s has positioned manufacturing for exponential growth in the 2020’s. LMA Consulting Group works with manufacturers and distributors on strategy and end-to-end supply chain transformation [...]

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CLAREMONT, CALIFORNIA – January 30, 2020 –  Manufacturing and Supply Chain Expert,  Lisa Anderson, MBA, CSCP, CLTD, president of LMA Consulting Group Inc., reaffirms that advancements in manufacturing during the 2010’s has positioned manufacturing for exponential growth in the 2020’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.

“There was so much advancement going on in manufacturing during the last decade that it is almost a blur.  The Amazon Effect, Skills Gap and Digital Revolution have all uniquely impacted manufacturing and the supply chain,” Ms. Anderson comments. 

The Amazon Effect has pushed manufacturers to accommodate ecommerce-like orders – more frequent and smaller.  Rapid delivery has also become the new normal.  “The Amazon effect highlighted the need to raise the bar on the customer experience. 24/7 accessibility, customized product and service with a quick turnaround and easy returns have become commonplace, creating a shift in inventory strategy and an increased interest in advanced manufacturing,” she said.

The Skills Gap has grown over the last decade, exacerbated by the low unemployment rate.  “Manufacturers are in a perfect storm, the Baby Boomers with a significant knowledge-base are retiring at the rate of 10,000 a day.  That, coupled with the advancements in technology that have changed the types of jobs in the sector, make it difficult to find the right people with the skill sets needed,” she noted.

The Digital Revolution transformed manufacturing. “There was little ramp up to 3-D printing, IoT (Internet of Things), Artificial Intelligence (AI), Robotics and Automation.  It was almost like one day they were proven and appeared.  This took many by surprise and was a little intimidating.  Yet, those who have taken time to integrate digitization into their organization are already seeing results,” she said. 

In 2020, the customer experience and future proofing manufacturing and the supply chain will fast-track proactive manufacturers to stand ahead of the competition and position them for exponential growth. “There are opportunities to export. And, while in the last decade we thought outsourcing overseas was the answer, the trade wars and tariffs along with recent requirements that China put into place has been giving manufacturers pause. Future-proofing requires looking at the business at 360° and driving change,” she concluded. 

Ms. Anderson was recently appointed to the Department of Commerce, District Export Council of the Inland Empire. Her collection of 2020 Predictions from Manufacturing & Logistics Executives will be released in February 2020.

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

Lisa Anderson is the founder and president of LMA Consulting Group, Inc., a consulting firm that specializes in manufacturing strategy and end-to-end supply chain transformation.  She focuses on maximizing the customer experience and enabling profitable, scalable, dramatic business growth. Ms. Anderson is a recognized Supply Chain thought leader by SelectHub, named a Top 40 B2B Tech Influencer by arketi group, 50 ERP Influencer by Washington-Frank, a top 46 most influential in Supply Chain by SAP and named a top woman influencer by Solutions Review. She recently published, I’ve Been Thinking, 101 strategies for creating bold customer promises and profits. A regular content contributor on topics including a superior customer experience with SIOP, advancing innovation and making the supply chain resilient, Ms. Anderson is regularly interviewed and quoted by publications such as Industry Week, tED magazine and the Wall Street Journal.  For information, to sign up for her Profit Through PeopleTM Newsletter or for a copy of her book, visit lma-consultinggroup.com.            

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Originally published on PR Newswire on January 30, 2020

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Future-Proofing Your Customers https://www.lma-consultinggroup.com/future-proofing-your-customers/ Thu, 30 Jan 2020 22:28:42 +0000 https://www.lma-consultinggroup.com/?p=8517 In thinking about future-proofing your people, it makes sense to start with your customers. Have you thought about future-proofing your customers? The statistics are staggering. According to Outbound Engine, acquiring a new customer can cost five times more than retaining an existing customer. We wouldn't be surprised if the actual cost is far greater if [...]

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In thinking about future-proofing your people, it makes sense to start with your customers. Have you thought about future-proofing your customers? The statistics are staggering. According to Outbound Engine, acquiring a new customer can cost five times more than retaining an existing customer. We wouldn’t be surprised if the actual cost is far greater if direct and indirect costs are combined. It certainly should give us pause. How do we future proof our customers?

One way is to focus on the Amazon Effect and providing lighting speed delivery and tirelessly differentiated service. There is no doubt customers expect more. The bar gets higher with each passing day. Thus, we must be ahead of our customers to take a proactive approach to providing a superior customer experience while being cognizant of profitability and working capital.

How will you know what your customers see as differentiated service? Start by listening. Observe your customers and see what might provide value. Ask questions and tailor your solutions to be special for key customers. Find ways to provide these differentiated services while proactively managing the process efficiently and effectively from the internal point-of-view.

To accomplish this feat, it is wise to keep in mind that you are only as good as your #1 asset, your people. We have yet to meet a client with unhappy employees and happy customers. Start by getting your house in order. What do your employees need to be successful? It is more than a training course or occasional pat on the back. Do they know they are making a difference? Are they empowered within reasonable guidelines? Do they know leaders value performance and are willing to address the tough topics?

Investing in employees is the best way to future-proof your manufacturing and supply chain. Expand your thinking on people to your trusted advisors, customers, suppliers and other business partners. Are you taking the time to ensure a prepared yet agile end-to-end supply chain? Remember, the people within the end-to-end supply chain count in providing an exceptional customer experience! If you’d like an assessment of where you should invest (time, resources, money) to deliver lightning speed delivery and tirelessly differentiated service, contact us. There are also plenty of free articles and resources on our website. Let us know your thoughts and questions.

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Amazon Kicks off the New Year by Creating Disruption https://www.lma-consultinggroup.com/scb-january-2-2020/ Thu, 02 Jan 2020 20:26:31 +0000 https://www.lma-consultinggroup.com/?page_id=8473 According to a Bloomberg article, Amazon kicked off the New Year by creating disruption. They have abruptly stopped buying products from some of their wholesalers, looking for ways to bypass wholesalers or push the cost to down the chain and increase profit. If your business depends on Amazon, hopefully you have been future-proofing your [...]

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Supply Chain Briefing

According to a Bloomberg article, Amazon kicked off the New Year by creating disruption. They have abruptly stopped buying products from some of their wholesalers, looking for ways to bypass wholesalers or push the cost to down the chain and increase profit. If your business depends on Amazon, hopefully you have been future-proofing your manufacturing and supply chain operations.  

If not, you might be in a world of hurt! With that said, if you are heavily dependent on any one customer or supplier, you are in a risk-ridden situation.  It makes me wonder whether FedEx’s move away from Amazon was brilliant or whether they took on too much risk moving away from Amazon. Listen to a recent video where I refer to this topic. Are you taking these types of strategic questions into account in your 2020 plans?

What Should We Consider and/or What Impacts Could Arise?
Although the impact is obvious to wholesalers cut off by Amazon, the impacts are more widespread than that. Will Amazon be able to go direct to manufacturers? Will they be able to increase profits by squeezing their supply chain without impacting service? What happens, if that isn’t as easy as it appears? Will customers just wait? Are they getting too big or will other e-commerce players have an opportunity? It will be interesting to see.

In addition, no matter if you are related to this industry or not, it will impact you! If new players become involved, the manufacturing and logistics footprints will evolve. Will you be ready for opportunities? Undoubtedly, we will be impacted by changes in logistics infrastructure, rates and service requirements. The question is whether we will let this happen to us or if we will proactively address it. It might be too late to future-proof against this particular move by Amazon, but there will be countless more changes coming by Amazon as well as many other disruptors. Will you be ready to navigate changing circumstances and market conditions for a positive customer and bottom line impact or not? 

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

 

January 2, 2020

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Manufacturing Expert, Lisa Anderson, Confirms Manufacturers Focused on Customer Experience Drivers https://www.lma-consultinggroup.com/press-release-12-19-2019/ Tue, 24 Dec 2019 18:59:25 +0000 https://www.lma-consultinggroup.com/?page_id=8462 Originally published on ExpertClick on December 19, 2019 CLAREMONT, CALIFORNIA – December 19, 2019 –  Manufacturing and Supply Chain Expert,  Lisa Anderson, MBA, CSCP, CLTD, president of LMA Consulting Group Inc., confirms that manufacturers are flexible and responsive to changing customer needs and demands. LMA Consulting Group works with manufacturers and distributors on strategy and [...]

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Originally published on ExpertClick on December 19, 2019

CLAREMONT, CALIFORNIA – December 19, 2019 –  Manufacturing and Supply Chain Expert,  Lisa Anderson, MBA, CSCP, CLTD, president of LMA Consulting Group Inc., confirms that manufacturers are flexible and responsive to changing customer needs and demands. 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.

“2019 has been a pivotal year for manufacturers.  As turbulence with tariffs, the need to provide immediate response to customer needs and demands and improvements in automation have required capital investments, manufacturers that have responded are coming out ahead. They are near-shoring, reshoring, customizing and focusing on sales forecasting almost to the point of being predictive of demand. And, they are leading in their respective industries,” Ms. Anderson commented.  Nimble response has not traditionally been a term associated with manufacturing.  Artificial intelligence, robots, IoT and 3-D printing have become more mainstream and allow manufacturers to make immediate improvements and reduce lead times.  “We see manufacturers excited about future adaptations of their products, processes and services as well as their collaborations with their extended supply chain to create innovations and make a greater impact,” she said.

The customer experience drivers, awareness of the Amazon effect and the need for a resilient supply chain are messages that Ms. Anderson focuses on when working with clients.  “It’s about differentiating the customer experience while enabling profitability and growth. It may seem that these are diametrically opposed.  Yet, when a collaborative focus with a commitment towards innovation takes place in an organization, great things happen.  Our clients are feeling the impact. Recently, we worked with a client to help them initiate a vendor managed inventory program for their customers, managing the inventory and ordering process.  This allowed for better insight into the extended supply chain which helped them proactively position inventory and build more agile capabilities.  The result was better response to changing customer demand patterns, establishing resiliency in the supply chain and, most importantly, achieving bottom line performance, ” she concluded. 

As the calendar rolls to 2020, customers will continue to become more sophisticated and demanding.  The recent squabble between FedEx and Amazon is proof that even the largest of client relationships can change.   In 2020,  future proofing manufacturing operations and the supply chain will fast-track proactive manufacturers to stand ahead of the competition.  Initiatives to position manufacturing are underway, especially in Inland Southern California where Ms. Anderson is involved with the Inland Empire Economic Partnership which is developing a consortium for advanced manufacturing and logistics success. She is also active with the Manufacturing Council of the Inland Empire where she heads the Innovation Awards for the Annual Summit.  “Manufacturing remains a core industry in the U.S. The time is right, and the time is now to focus on future-proofing manufacturing and the supply chain for success” she concluded.

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

Lisa Anderson is the founder and president of LMA Consulting Group, Inc., a consulting firm that specializes in manufacturing strategy and end-to-end supply chain transformation.  She focuses on maximizing the customer experience and enabling profitable, scalable, dramatic business growth. Ms. Anderson is a recognized Supply Chain thought leader by SelectHub, named a Top 40 B2B Tech Influencer by arketi group, 50 ERP Influencer by Washington-Frank, a top 46 most influential in Supply Chain by SAP and named a top woman influencer by Solutions Review. She recently published, I’ve Been Thinking, 101 strategies for creating bold customer promises and profits. A regular content contributor on topics including a superior customer experience with SIOP, advancing innovation and making the supply chain resilient, Ms. Anderson is regularly interviewed and quoted by publications such as Industry Week, tED magazine and the Wall Street Journal.  For information, to sign up for her Profit Through PeopleTM Newsletter or for a copy of her book, visit lma-consultinggroup.com.            

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