I participate in a group of CEOs, a group of the top consultants throughout the world, a group of supply chain professionals, a regional economic partnership, industry groups, and with clients in the Americas, EMEA and APAC, and the only thing in common is the critical importance of people.

Most clients do not have as much talent as they need (at least in key roles or sites). Similar to inventory, many clients might have talent but do not have the type of talent in the right place (or available) at the right time. Classic challenges!

Others are concerned about employee engagement, talent retention, and development. Many are concerned about how to provide flexibility yet ensure results and how that relates to virtual vs in-person. Many are starting to think about how they can use consultants to fill a gap (supplementing their team) while developing a better path forward as it kills 3 birds with 1 stone (fills gap, builds the future, short-term so they don’t have to hire long-term support with pending recessions). Others are experiencing issues because their suppliers or customers have talent shortages. Thus, orders are delayed, meetings postponed, etc. There are countless issues, but the bottom line is talent is top of mind.

Pertinent Examples

In a building products manufacturer, although they tried many different approaches to finding manufacturing talent, they simply couldn’t find enough people to run the full schedule during peak season. This is a compelling example as the leaders were solid and it wasn’t in the middle of nowhere (as most of our clients’ facilities are located in Timbuktu), yet it was still impossible to fill the entire schedule. Thus, they prioritized customers and extended lead times to make it through peak season and decided to build ahead for the next peak season if conditions didn’t change.

In a life sciences manufacturer, growth was limited by lack of talent. In this situation, there were concerns about spending money until the specific product mix was known (thereby dictating the specific skills required). Unfortunately, it was a catch 22. By the time the product mix was known, there wasn’t enough time. In working together, we developed a demand plan and SIOP (Sales, Inventory & Operations Plan) process that enabled us to gain executive alignment to transfer, cross-train, and hire the appropriate people to address near-term concerns while ramping up a new facility so that the aggressive growth targets were fulfilled.

In a food manufacturer, they didn’t have the supply chain talent to work with customers and Sales to develop a demand plan, translate the volume into a master production schedule, get enough materials on order to supply the production schedule with extended lead times, and address changing conditions on a daily basis with the production schedule. Thus, they asked us to jump into the planning process, working in conjunction with their overloaded resources to navigate current conditions and stabilize while upgrading the process and use of systems to create a sustainable process going forward. This solution bridged the gap.

And, in an industrial equipment manufacturer, their growth was limited by engineering talent. They worked with the schools in the area to hire new grads and provide internships. They even jumped on manufacturing day with high school students to introduce them to the profession. They also looked at process and system upgrades to increase efficiencies, supplemented talent from other facilities to fill gaps, and put extensive efforts into HR and recruiting efforts. Although still challenged, they were able to meet the increased volume.

Fast Forward to the Future

Clients are starting to worry about the likely recession (while still dealing with inflation) and what that will mean to their growth plans. Of course, it makes sense to reevaluate customer conditions and reorganize, reallocate, and reshape to meet the new forecasts. On the other hand, our most successful clients are NOT jumping to layoffs. Most likely, there are temporary employees that will provide some ability to ramp up or down rapidly. Clearly, overtime can be reduced. But, be cautious about cutting back and limiting growth potential.

We see a reshaping of the future of supply chains in the horizon. Companies are reshoring, expanding capacity, finding new partners, rethinking market and growth strategies, and much more. I think there will be more opportunity for the forward-thinking, nimble companies than at any other time in history other than during the Great Depression. As family-owned businesses retire, get absorbed into larger companies, and/or decide to close up shop or not serve certain markets due to changing conditions, supply chains will change. As companies reshore, nearshore, friendly-shore and build duplicate capacity to ensure customer success, supply chains will change. As employees retire and decades of experience walk out the door, supply chains will change. As technology gains, supply chains will change. RETAIN your key talent, do not retain your problem employees dragging your best talent down (it is surprising how many companies keep these known challenges), keep your eye out for talent (as you think about needs 2 years out) as weaker companies suffer, and find opportunities to develop and utilize your talent and set your company up for success for decades to come.

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. Several of these types of topics will be included in our forthcoming book, SIOP (Sales Inventory Operations Planning): Creating Predictable Revenue and EBITDA Growth.

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In working with clients across multiple industries including industrial equipment, food and beverage, building and construction products and healthcare products, there is no doubt that clients using a SIOP (sales, inventory and operations planning) and integrated business planning process are pulling away from the competition.

Clearly, we are experiencing extreme demand volatility and supply chain disruptions across the board. It is so bad that the most successful clients are simply losing less revenue than the rest. No one is having an easy time keeping up with demand. Labor shortages, material shortages, trucking shortages, soaring prices and much more is causing further adaptions, creating even more disruption. There are no magic bullets to solve these issues, but one key program that is helping clients far better than their competition is SIOP and Integrated Business Planning processes. Listen to the benefits one of our clients gained with SIOP which is helping them better navigate these crazy times.

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