supply chain trends Archives - LMA-Consulting Group, a supply chain consulting firm https://www.lma-consultinggroup.com/tag/supply-chain-trends/ Sat, 30 Mar 2024 06:32:06 +0000 en-US hourly 1 https://wordpress.org/?v=6.5 Supply Chain Shortages Remain a Concern: Strategies for Success https://www.lma-consultinggroup.com/supply-chain-shortages-remain-a-concern-strategies-for-success/ https://www.lma-consultinggroup.com/supply-chain-shortages-remain-a-concern-strategies-for-success/#respond Wed, 20 Mar 2024 15:16:42 +0000 https://www.lma-consultinggroup.com/?p=23662 Manufacturers wish they left supply chain shortages behind after the pandemic, but they remain top of mind. Concerns remain. According to KPMG, “71% of global companies highlight raw material costs as their number one supply chain threat for 2023.”

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Supply Chain Briefing

Supply Chain Shortages Remain a Concern: Strategies for Success

Manufacturers wish they left supply chain shortages behind after the pandemic, but they remain top of mind. Concerns remain. According to KPMG, “71% of global companies highlight raw material costs as their number one supply chain threat for 2023.” And the trend isn’t ceasing. According to a survey by LeanDNA and Wakefield Research, supply chain shortages remain a leading concern for manufacturers as they look to the future.”

In fact, if you look at the pharmaceutical industry, shortages have been creating havoc. For example, there have been shortages of over-the-counter drugs and prescription medications for ADHD, cancer and diabetes have been widespread. There has been commentary about a spike in demand, but there are also comments about manufacturing delays. Of course, this is before we discuss the state of logistics disruption.

In addition to product, material and healthcare shortages, clients are experiencing a severe shortage of high-skilled talent and are struggling to upgrade ERP systems and related technologies. These issues are aggravating the shortage situation as multiple clients have the lack of system support creating further shortages and work stoppage in addition to frustrating their employees.

It is simply creating havoc as people jump into jobs they are not prepared to execute, and Executives are struggling to understand why their resources no longer seem to have the expertise they used to have. Worse yet, if they don’t realize this is occurring, the situation gets worse as employees make poor decisions and struggle to keep up. Refer to our article, Where the Talent Has Gone & Strategies for Success.

Strategies for Success

Customers will not suffer endlessly as shortages persist. They will find alternative sources of supply, source from different regions of the world, find backup sources, search for suppliers that can provide visibility and status of the end-to-end supply chain and invest in reshoring, nearshoring, and expanding regional manufacturing footprints.

Thus, proactive executives are getting ahead of these challenges. We have no doubt that the companies that can supply critical items in the next several years with uninterrupted supply will lead their industries for decades to come. What are some of the best practice strategies being deployed?

  1. Go back to the basics: It is simply surprising how many clients are running into problems with the fundamentals. Who knew a best practice was to return to basics! According to a leading authority on the subject of generational diversity in the workplace, the younger generations is struggling with ambiguity and decision making. This has proven to be “on the mark” as clients have employees stuck and struggling as they don’t know why the computer is spitting out answers that are wrong and what to do about it. Thus, we are jumping in to define processes, educate on concepts and help clients over this unexpected bottleneck. Perform a supply chain assessment to quickly size up where to focus. Take our complimentary supply chain assessment quiz.
  2. Planning best practices: There is no doubt that production planning, materials management, replenishment planning, and each planning expertise is in limited supply yet is cornerstone to mitigating shortages and getting in front of demand. Refer to recent examples of how this topic can make or break success in our recent article.
  3. SIOP (Sales Inventory Operations Planning): One of the single best strategies to get in front of changing conditions and ensure profitable growth is to rollout a SIOP process. A SIOP process will align Sales with Operations, demand with supply, and, most importantly, it will provide a proactive view into changing circumstances with recommended solution options, impacts on product and customer profitability, heads up to capacity bottlenecks, and sales funnel changes. Read our book, SIOP: Creating Predictable Revenue and EBITDA Growth.
  4. ERP, advanced technologies & automation: No client will succeed with manual spreadsheets long-term. The most successful clients are better utilizing their ERP systems to provide enhanced visibility, flexibility, and service while also pursuing advanced technologies (digital twins, artificial intelligence, IoT, robotics, meta) and automation to improve efficiencies, reduce errors, and increase scalability and profitability.
  5. Innovation: Continuous improvement is no longer enough. Only those companies that innovate and turn 1+1 into 22 with collaborative partnerships will succeed.
  6. Trends & Metrics: Although it is essential to review progress and results by tracking key performance indicators like OTIF (on-time-in-full), production output, and inventory turns, it is even more important to be focused on “where the puck is going” (not where it has been). Tracking trends, listening to diverse perspectives, researching and trialing new and potential trends is the focus of our most successful clients.
  7. Regional manufacturing: Although this topic should arise through your SIOP process, our money is on regional manufacturing. Clients must take control over their ability to service customers. Reshoring, nearshoring, expanding manufacturing and collaborative partnerships are hot topics. For example, even industries such as medical device, pharmaceutical, and computer chips are joining aerospace, food & beverage, industrial equipment, and building products to produce close to customers.
  8. Talent: We’d be remiss not to mention that talent will “win” in the end. Attract, hoard, develop, train, and mentor talent!

Shortages are persisting. Geopolitical tensions remain high. Critical supplies such as computer chips, medical supplies, and aerospace and defense products are providing evidence that it isn’t just a lack of “nice-to-have” items. Pursue strategies to ensure you are ahead of the curve, and your business will thrive.

If you are interested in reading more on this topic:
Why Manufacturing Matters and Will Thrive in the Next Decade

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Pitfalls and Solutions: Common Supply Chain Issues in Manufacturing and Distribution https://www.lma-consultinggroup.com/pitfalls-and-solutions-common-supply-chain-issues-in-manufacturing-and-distribution/ https://www.lma-consultinggroup.com/pitfalls-and-solutions-common-supply-chain-issues-in-manufacturing-and-distribution/#respond Thu, 05 Oct 2023 15:45:53 +0000 https://www.lma-consultinggroup.com/?p=21953 Lisa Anderson joined Food and Beverage Talk podcast to discuss supply chain challenges and opportunities in the food and beverage industry.

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Lisa Anderson joined Food and Beverage Talk podcast to discuss supply chain challenges and opportunities in the food and beverage industry.

The complex and under-appreciated topic of production planning and supply chain optimization is the focus of this episode of F&B Talk. Lisa Anderson takes a look at the different components of production management and how they fit into the supply chain world. She discusses the steps of the production planning process, the importance of the sales forecast, common issues in the supply chain on the manufacturing and distribution sides of operations and keeping all the elements and players on the same page.

During this interview, Lisa talks through supply chain trends and where clients should focus to succeed in the current environment. Most importantly, she discusses food and beverage client examples and provides insights and tips for how to handle these common supply chain issues.

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Novigo Supply Chain Expert Series https://www.lma-consultinggroup.com/novigo-supply-chain-expert-series/ https://www.lma-consultinggroup.com/novigo-supply-chain-expert-series/#respond Wed, 27 Jul 2022 16:53:18 +0000 https://www.lma-consultinggroup.com/?p=18178 Supply Chain Series - Lisa Anderson Supply Chain Expert Series featuring Lisa Anderson - Founder and President, LMA Consulting Group, shares her insights on what is impacting supply chains today and how supply chain leaders can future-proof their supply chains.

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Supply Chain Series – Lisa Anderson Supply Chain Expert Series featuring Lisa Anderson – Founder and President, LMA Consulting Group, shares her insights on what is impacting supply chains today and how supply chain leaders can future-proof their supply chains.

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The Big Shift: Nearshoring Trends In Medtech Manufacturing | Medical Product Outsourcing https://www.lma-consultinggroup.com/the-big-shift-nearshoring-trends-in-medtech-manufacturing-medical-product-outsourcing/ https://www.lma-consultinggroup.com/the-big-shift-nearshoring-trends-in-medtech-manufacturing-medical-product-outsourcing/#respond Tue, 19 Jul 2022 16:37:40 +0000 https://www.lma-consultinggroup.com/?p=18171 MPO Magazine: The Big Shift: Nearshoring Trends in Medtech Manufacturing "Medical device companies are on the move," said Lisa Anderson, president of LMA Consulting Group, a Claremont, Calif.-based consulting firm that specializes in manufacturing strategy and end-to-end supply chain transformation."For example, Costa Rica continues to gain significant nearshoring opportunities".

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MPO Magazine: The Big Shift: Nearshoring Trends in Medtech Manufacturing “Medical device companies are on the move,” said Lisa Anderson, president of LMA Consulting Group, a Claremont, Calif.-based consulting firm that specializes in manufacturing strategy and end-to-end supply chain transformation.”For example, Costa Rica continues to gain significant nearshoring opportunities”.

“For many decades, medical device manufacturers (MDMs) established operations in low-cost countries (primarily China) to take advantage of inexpensive labor overseas. However, escalating labor costs in China continue to erode this cost advantage; in response, over the last 10 to 15 years, nearshoring to Latin America, Mexico, and the Caribbean by U.S. companies has grown steadily. Now, with COVID-19 causing serious, long-duration supply chain disruptions, MDMs are even more motivated to shorten their supply chains and reduce operational costs through nearshoring.

Now, more than two years into the COVID-19 pandemic, supply chain shortages are still rampant and delays continue to disrupt manufacturing processes—in fact, for some components and materials, lead times are longer now than they were during the peak of the pandemic. Further, when supply chains finally do settle down, how long will the calm last, and what will happen when the next international crisis erupts? Medical device companies are definitely rattled.”

 

Click here for the full story.

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Today’s Medical Developments: What Will the Supply Chain Look Like in 2022? https://www.lma-consultinggroup.com/todays-medical-developments-what-will-the-supply-chain-look-like-in-2022/ https://www.lma-consultinggroup.com/todays-medical-developments-what-will-the-supply-chain-look-like-in-2022/#respond Wed, 08 Dec 2021 20:04:20 +0000 https://www.lma-consultinggroup.com/?p=15912 Manufacturing and Supply Chain Expert, Lisa Anderson, MBA, CSCP, CLTD, president of LMA Consulting Group Inc., will talk about the current state of the supply chain, and more importantly, what executives should be doing to survive – and thrive – during these volatile times.

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Manufacturing and Supply Chain Expert, Lisa Anderson, MBA, CSCP, CLTD, president of LMA Consulting Group Inc., will talk about the current state of the supply chain, and more importantly, what executives should be doing to survive – and thrive – during these volatile times.

If you missed the live event, tune in now to hear from Lisa Anderson, founder and president of LMA Consulting Group Inc. The end-to-end supply chain challenges are exacerbated with the great resignation of people. Unfortunately, these issues are not going away anytime soon. Lisa talks about the current state of the supply chain, and more importantly, what executives should be doing to survive – and thrive – during these volatile times.

Click here for the full story.

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Looking at Supply Chain Heading into 2022 https://www.lma-consultinggroup.com/ibt-11-8-2021/ https://www.lma-consultinggroup.com/ibt-11-8-2021/#respond Tue, 16 Nov 2021 19:11:29 +0000 https://www.lma-consultinggroup.com/?p=15233 I will be speaking on a webinar for Today's Medical Developments, Aerospace Manufacturing & Design, and Today's e-Mobility on looking at the supply chain heading into 2022 (the webinars will be archived as well). Supply chain is the hot topic across the board. The answer is NO, supply chain [...]

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I spoke on a webinar for Today’s Medical Developments, Aerospace Manufacturing & Design, and Today’s e-Mobility on looking at the supply chain heading into 2022. Listen to the webinar here. Supply chain is the hot topic across the board. The answer is NO, supply chain will not get caught up anytime soon, certainly not before year-end and the holiday season. With that said, if you are waiting for supply chain to get caught up, you will be left in the dust. The proactive executives are not waiting for things to go back to normal. Instead, they are creating a next normal.

One Tip to Implement This Week:

In the webinar, we’ll address what will happen in supply chain in 2022:

  • Reconfiguration: Smart clients are reevaluating and reconfiguring the supply chain to be more responsive to customer needs while mitigating risk and scaling successfully.
  • Rules and regulations: As rules and restrictions change and evolve, the supply chain changes. For example, drivers have had many new regulations in picking up at the CA ports. There is a federal law dictating how many hours a driver can be “on” during the day (which is problematic with port delays). There are CA laws dictating how new the truck must be which is a large issue for owner operators (the majority of truckers picking up). And there are many more….. If it is simply too hard to navigate, businesses find alternatives.
  • Evolving customer needs: Customers will not wait for these extended lead times for extended periods of time. Customer needs will evolve, and we will need to get ahead of what the changing situation will look like.
  • Rapid innovation: The most progressive clients are innovating with speed and fury. Are they in lock step with customer needs?
  • Great resignation: How will the great resignation impact the supply chain?
  • Digitization of the supply chain: How will digitization impact the supply chain? And in which areas? For example, some ports (unions) will not allow digitization and most (if not all) of the current legislation and funding for ports will not support infrastructure if not unionized. A bit of a catch 22.

The bottom line is we need to be thinking ahead, innovating, and collaborating to be successful – or perhaps to simply survive. Please keep us in the loop of your situation and how we can help your organization successfully navigate the current volatility and 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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SAP SAPPHIRE NOW: SAPPHIRE NOW Midmarket Keynote: Lessons learned and looking ahead https://www.lma-consultinggroup.com/sap-sapphire-now-sapphire-now-midmarket-keynote-lessons-learned-and-looking-ahead/ https://www.lma-consultinggroup.com/sap-sapphire-now-sapphire-now-midmarket-keynote-lessons-learned-and-looking-ahead/#respond Wed, 27 Oct 2021 18:22:13 +0000 https://www.lma-consultinggroup.com/?p=15004 Lisa Anderson, President and Founder of LMA Consulting Group, discusses challenges and opportunities.

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What did your business learn from a year of unprecedented disruption that saw shifting customer expectations, disrupted supply chains, market uncertainty, and a rapid switch to remote working?

How quickly were you able to respond? And what can you do now to help your business regain and accelerate its growth trajectory?

After watching the SAPPHIRE NOW Midmarket keynote, Ursula Ringham spoke with several industry experts to hear their predictions for 2021 and beyond. You can watch the discussion here.

Interconnected approach drives agility and growth

Many midsize companies this past year quickly realized the importance of connecting business systems and data across their organization. An interconnected business approach can help you position your business for more resilience and faster growth.

It lets you streamline decision-making, drive quality and reliability, speed up your operations, and compete with companies of all sizes, from large corporations to smaller, more nimble digital natives.

“Technology solutions are essential to help midmarket brands pivot, scale, and get closer to their customers.” –Martin Newman

Strengthening the supply chain through collaboration & integration

You also have to collaborate with external partners to ensure both a resilient supply chain and an adaptable business network that connects with employees and business processes.

Click here for the full story.

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Adaptability and Resiliency: Trends to Emerge Above and Beyond in 2021 https://www.lma-consultinggroup.com/adaptability-and-resiliency-trends-to-emerge-above-and-beyond-in-2021/ https://www.lma-consultinggroup.com/adaptability-and-resiliency-trends-to-emerge-above-and-beyond-in-2021/#respond Mon, 31 May 2021 21:47:49 +0000 https://www.lma-consultinggroup.com/?p=14854 In our eBook Emerging Above & Beyond: 21 Insights for 2021 from Manufacturing, Supply Chain & Technology Executives, many executives discuss the critical importance of adaptability and resiliency. The pandemic kicked off with volatility of customer demand (toilet paper and hand sanitizer were in scarce supply whereas aerospace and hospitality fell of the cliff as [...]

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In our eBook Emerging Above & Beyond: 21 Insights for 2021 from Manufacturing, Supply Chain & Technology Executives, many executives discuss the critical importance of adaptability and resiliency. The pandemic kicked off with volatility of customer demand (toilet paper and hand sanitizer were in scarce supply whereas aerospace and hospitality fell of the cliff as the lockdowns started). During the pandemic, customers changed buying patters (moving to e-commerce, trying new channels). Buying behaviors evolved with changing customer perceptions. And the supply chain tried to keep up.

Executives tried to adjust to the changing conditions. Some laid off employees; others pulled back on production schedules and found new projects to keep employees involved while the rest could barely keep up and were challenged to find enough people to keep up with customer demand. If they thought ahead, they innovated and found ways to create new products and service offerings to meet changing needs. Proactive clients explored new technologies to support adaptability and resiliency, rapidly re-evaluated their supply chain network, thought about insourcing and reshoring, and took action to reconfigure their supply chain with a regional focus.

Michael Smith, President and Managing Director at George Fischer Signet talked about the fact that 2020 highlighted the need for adaptability and cooperation. He said that continuing to develop the company culture and aligning with processes and systems will be key to success. He also talked about the importance of adopting new technologies and new solutions to foster growth and set a strong foundation for the future.

Did you like this article? Continue reading on this topic:
Collaborative Partnerships & Creating Resiliency

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Mass Customization & Personalization: Rising Trends https://www.lma-consultinggroup.com/mass-customization-personalization-rising-trends-in-2021/ https://www.lma-consultinggroup.com/mass-customization-personalization-rising-trends-in-2021/#respond Thu, 01 Apr 2021 20:27:11 +0000 https://www.lma-consultinggroup.com/?p=14710 In our eBook Emerging Above & Beyond: 21 Insights for 2021 from Manufacturing, Supply Chain & Technology Executives, two technology executives discuss the critical importance of personalization. With the dramatic rise in e-commerce during the pandemic and experts agreeing that it will only accelerate, hyper-personalization has emerged as a differentiator. Kalon Stephen, Regional Vice-President at [...]

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In our eBook Emerging Above & Beyond: 21 Insights for 2021 from Manufacturing, Supply Chain & Technology Executives, two technology executives discuss the critical importance of personalization. With the dramatic rise in e-commerce during the pandemic and experts agreeing that it will only accelerate, hyper-personalization has emerged as a differentiator.

Kalon Stephen, Regional Vice-President at Salesforce, Inc. talked about the importance of investing in digital commerce technology and optimizing order management capabilities. He also discusses the importance of personalization with artificial intelligence. In fact, a progressive client completely aligns with this position and is investing in an ERP upgrade as well as a B2B/ B2C platform for growth because they believe it will drive growth and differentiation.

Tim Harris, Chief Strategy Officer at Arbela Technologies focused on the trend of hyper-personalization with the rise of e-commerce. He also said the right customer data platform to understand your prospective buyers and customers increased in importance with this trend of hyper-personalization. Innovation in this arena was the more robust in 2020 than in any other year.

Did you like this article? Continue reading on this topic:
Modern ERP Launchpad for Growth

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Manufacturing Expert, Lisa Anderson, Releases Manufacturing and Supply Chain Predictions for 2020 https://www.lma-consultinggroup.com/press-release-3-13-2020/ Mon, 16 Mar 2020 15:12:52 +0000 https://www.lma-consultinggroup.com/?page_id=8594 CLAREMONT, Calif., March 13, 2020 /PRNewswire/ -- Manufacturing and Supply Chain Expert, Lisa Anderson, MBA, CSCP, CLTD, president of LMA Consulting Group Inc., has released, Future-Proofing Manufacturing & the Supply Chain, Manufacturing and Supply Chain predictions for 2020. Ms. Anderson asked business owners, executives and industry professionals for their insights and predictions for the state [...]

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CLAREMONT, Calif., March 13, 2020 /PRNewswire/ — Manufacturing and Supply Chain Expert, Lisa Anderson, MBA, CSCP, CLTD, president of LMA Consulting Group Inc., has released, Future-Proofing Manufacturing & the Supply Chain, Manufacturing and Supply Chain predictions for 2020. Ms. Anderson asked business owners, executives and industry professionals for their insights and predictions for the state of business in 2020. From a wide range of industries like food and beverage, building products and logistics to specialties such as trade, sourcing, technology, human capital and economic development, the experts represent a wide range of businesses in size and complexity.

“We are at a critical juncture in our field. To succeed in 2020, manufacturing and logistics organizations need to become agile, proactive and even disruptive to merely survive. The most successful organizations are going to do a deep dive into human capital, technologies and strategies that will achieve the trifecta – a superior customer experience, profitable growth and improved working capital provide,” Ms. Anderson commented. 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.

With the influence of additive manufacturing artificial intelligence, IoT, robotics and blockchain, technology can pay a pivotal role. Yet, technology is not the sole answer. “It’s the smart application of the appropriate technology by top talent, aligned internally and across the extended supply chain who follow a well-thought out strategy that wins the race,” she said.

While experience can direct future activity, it is important to be prepared for the unexpected. “The hyper influence of the coronavirus has radically disrupted supply chains. This puts a spotlight on the need to proactively future-proof the supply chain. It’s more than focusing on vendors and the source of supply. It’s the integration of all of the pieces from raw materials through delivery and measuring the customer experience along the way with backups in place along every facet of the supply chain,” she concluded.

Ms. Anderson is an active member of the Inland Empire Economic Partnership, was recently appointed to the Department of Commerce, District Export Council of the Inland Empire and is sought out by organizations such as Oracle for her manufacturing and supply chain insights. Future-Proofing Manufacturing & the Supply Chain can be downloaded here.

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.            

 

Originally published on PR Newswire on March 13, 2020

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