ASCM Phoenix Forum Blog

How the CPIM Helps Improve Day-to-Day Operations

Tony Davis — Thu, 28 May 2020 17:38:21 GMT

Today’s supply chains are more complex than ever before. This complexity arises from several factors, some that have existed throughout time and some that are unique to this era. From extreme weather to a global health crisis – today’s market is perpetually subject to volatility. This is only compounded by shifting consumer expectations and demands, with one-day delivery and personalized offers becoming the norm for many suppliers.

Technological advances make it easier for suppliers to satisfy this shifting demand but can also be challenging for those who struggle to keep up with the times. The key to success in this digital era? An understanding of the systems, methodologies, and concepts that are connected to on-demand order fulfillment, near-instant delivery, and increased demand.

A CPIM education provides a framework and tools for synchronizing, optimizing, and continuously improving an organization’s end-to-end supply chain. It is a key prerequisite to embarking on an enterprise resource planning (ERP) system implementation.

With a CPIM education, supply chain professionals master Lean, Six Sigma, Theory of Constraints, and project management concepts. They also study many components of the Manufacturing Planning and Control hierarchy of demand and supply planning and execution, all combined to provide enhanced visibility and control. CPIM stresses the value of a consistent use of terms, as defined by APICS, the global standard for the entire Supply Chain Body of Knowledge. The certification is a key to individual and enterprise success through excellence in supply chain management.

Engaging Everyone in Supply Chain

Tony Davis — Fri, 15 May 2020 19:46:22 GMT

A few weeks ago, on my way to the kitchen, the TV was on national news and this popped, “…only a third of American workers are engaged”. Here we go again. This put me on reflection mode. I am aware of the reasons many workers are not engaged, e.g., they are not valued, inadequate human resources, poor data and systems, dysfunctional organizations, etc. One of these I know well—lack of proper training. As a supply chain professional for over two decades, I have seen my fair share and then some.

Too often companies place people into supply chain roles without training and thrown into a costly haphazard learn-as-you-go system. Most likely the individual did well in a certain area in the past so it is then assumed that he or she will do well again. And so, it goes…if all you have is a hammer, treat everything as if it were a nail. When I pivoted my career from chemical engineering to supply chain, I knew it was comparatively simpler and somewhat more intuitive. I also knew I had to learn the right way to apply it. Just because a business discipline appears to be simpler or about the same as the one you experienced, does not mean you can walk in and be successfully engaged and productive. This is true whether you are a manager or an individual contributor. Supply chain is dynamic and quite often moves very fast. Therefore, you need to know what you are doing, with confidence. Mistakes can be expensive and irrecoverable—lost or dejected suppliers, excessive and or obsolete inventory, missed opportunities, expensive contracts put in place, etc. Almost everyone knows that supply chain operations directly affect the enterprise finances—cost of goods sold, working capital, and cash flow to mention a few metrics. Without proper training, supply chain can be intimidating which in turn contributes to the problem.

Proper training and knowledge bring the confidence that promotes successful engagement. A bonus—efficient teams can then be formed hence enhancing the overall organizational engagement level. There are no short cuts here. Enterprises must properly train their employees to unlock their full potential and help them attain the confidence that follows.

I’ll leave you with a popular bit of humor circulating the Internet. A CEO tells the CFO to budget for employee training. CFO: What happens if we spend the money and they leave? CEO: What happens if we don’t and they stay?

Ramon A. Diaz, MBA, PMP, CPIM, CSCP

Reference: Click here

APICS knowledge = X Ray Vision!

Tony Davis — Fri, 15 May 2020 19:28:50 GMT

As I finish instructing my current inventory management class, I was reflecting on the various remarks given by the students throughout the course— one stood out. An experienced plant manager was retaking CPIM because his certification had lapsed years ago. During the first session when we do introductions, the individual made this emphatic comment— “Going through the CPIM certification classes will give you X-Ray vision!” I could not help but to chuckle. I always tell students that supply chain touches everything and everything touches supply chain followed by, if there is a factory meeting going on, you probably need to be there. Yet, his remark summarized it much better.

Going through the course, I realized that APICS certifications classes are like a mini MBA. The sessions cover many aspects of management such as: operations, sourcing strategy, planning, logistics, manufacturing, supply chain as it relates to the financial statements, lean, analytical techniques and even dealing with people. It enables individuals to see around the corners and anticipate problems as well as to exploit opportunities well in advanced. As we moved along the coursework, the students were able to identify problems and root causes they were experiencing in their workplace. A few became eager to turns things around immediately. I advised them to slow down, take on a small project, collect solid data and present the data in an organized and convincing manner by using well-devised graphs and statistical analysis tools covered in our coursework. More importantly, I reminded them that we all work with people and we need to gain them over for change to take effect; use a change management and communication approach. Besides, if you do not have good data, all you have is an opinion. With our tight employment situation, enabling the organization with the right knowledge and training is critical to perform or even outperform the competition whichever the situation might be. This is even more so with the current pandemic situation.

From the instructor’s perspective, I am always thrilled to see the empowerment that comes from knowledge. This fuels my energies and pushes me to go beyond by providing additional material to enhance the sessions and ensure students have a good start. We were a bit behind on the syllabus, but it was fine. We all had fun learning.

Ramon A. Diaz, MBA, PMP, CPIM, CSCP

Published on March 12, 2020

Reference: Click here

Spend Management Experts Examine Reverse Loop in Supply Chain

Christon Valdivieso — Fri, 02 Feb 2018 20:50:04 GMT

Original Post: SCMR.com

By: Brian Braodhurst

Traditionally, many of the efforts with initiating a shipment have been concentrated to a finite number of locations (i.e. shipments originated at the shippers’ facilities). In the parcel industry, this often means a dense delivery location, as opposed to a dense pickup location for outbound shipments.

Reverse Logistics requires that shipment creation to be available at all potential customer locations

This requires everything from technology enabled shipment label creation, to customer instructions for shipping a package
In addition, shippers need to decide if they want to collect payment for the return shipment, and decide how to collect that payment if they elect to charge the customer for return shipping

As the e-commerce industry expands into more markets, returns are increasing at a rapid pace and therefore making reverse logistics a primary focus area for parcel shippers.

To expand on that, outbound shipments are typically tied to revenue and shipping is an acceptable cost of doing business. However return shipments are often less time sensitive and at most indirectly tied to revenue, thereby making them a very cost-sensitive part of the supply chain.

Done correctly, reverse logistics can enhance the customer experience and drive brand loyalty.

Additional Market Information

When managing small parcel costs, you, as the retailer, need to not only worry about delivery to the end customer but also any potential returns. According to CBRE, returns of items bought online could be as much as $32 billion in 2017.
UPS deemed January 3, as its National Returns Day, with expectations of 1.4 million packages returned, an 8% annual gain and a new record for the fifth straight year.
Items returned in-store cost as little as $3 for a retailer to process and are often available for resale within a day, but items shipped back to a distribution center or to a 3PL can cost twice as much to process and take at least four days before they’re available for resale, according to AlixPartners. That’s if the returns aren’t damaged or opened, in which case they might be written off as a loss.
Data from U.S. Census Bureau and National Retail Federation show that the return rate is about 8% for the entire retail sector, although the percentage rises to between 13% and 30% for e-commerce sales. The difference: shoppers can inspect, sample or try an item at the store before buying it.
To encourage in-store returns, FedEx teams with Walgreens to bring discarded items back to more than 7,500 convenience stores nationwide. This past September, Amazon Inc. joined with Kohl’s to accept returns at 82 stores in Los Angeles and Chicago. In November, Wal-Mart Stores Inc. began “Mobile Express Returns” at about 4,700 stores nationwide. Shoppers initiate the return on the Wal-Mart app, then scan a QR code at a express station in the store and leave the item.
“Speed and efficiency in processing e-commerce returns, with an eye toward preserving as much value of the merchandise as possible, often separates the top-performing retailers from the not-so-successful ones in the weeks after Christmas,” CBRE’s Egan said.
Returns cost retailers $260 billion in 2015, according to the NRF. Retailers can ease the expense if they can convince customers to return web-purchased items to stores in person. On average, returns to stores cost companies half as much as returns to distribution centers, and allow retailers to get the items back on shelves faster, according to research from AlixPartners, a consulting firm.

The “Secret Sabotage” Supply Chain Managers May Do Everyday

Christon Valdivieso — Tue, 26 Dec 2017 20:36:52 GMT

By Christon Valdivieso CSCP, SSBBP on SCMR.com

It is no secret that over the past several years the American economy continues to strengthen. As a result, the unemployment rate has steadily declined and more Americans are finding work or growing into better positions. By all accounts this is good for both people and business. However, as the economy grows, and the American workforce continues to rise through the hierarchy, they perpetuate an insidious condition that is sabotaging the modern business landscape.

There is a foundational belief that the customer is always right, and it constrains modern leaders because it prevents them from saying “No”. Saying “No” to a customer is difficult.

Fear of losing the customer or an opportunity usually drives leaders to acquiesce. Luckily, the internal customer—our employees and business partners—is the main group that needs to be told “No”. How often, for example, does your IT team find legacy hardware at employees’ desk because someone wanted to keep their old set-up? Similarly, how many organizations find themselves with various ERP or business intelligence tools because a small sub-set of the team has an attachment to a particular system? The reluctance to say “No” kills efficiency and creates waste, yet managers go it daily.

Read Full Article

Half of Millennial Shoppers are Better Connected than Retail Associates

Christon Valdivieso — Wed, 06 Dec 2017 04:38:56 GMT

Zebra Technologies Corporation, today revealed the results of its 2017 Global Shopper Study, the 10th annual survey analyzing shopper satisfaction and retail technology trends.

The body of research revealed that while 44 percent of surveyed shoppers are still not satisfied with staff availability and customer service, overall shopper satisfaction has significantly improved since the study’s inception a decade ago.

While four in 10 shoppers surveyed in Zebra’s tenth annual retail survey cited being better connected to consumer information than store associates, more than half believe store associates armed with the latest technology improve the overall shopping experience.

Read Full Article Here

Smart Glasses New Standard in Order Picking

Christon Valdivieso — Thu, 16 Nov 2017 18:05:04 GMT

From: SupplyChain247

DHL Supply Chain successfully completed its global augmented reality pilots and is expanding its "Vision Picking" solution in more warehouses around the globe, establishing a new standard in order picking for the industry.

The smart glasses provide visual displays of order picking instructions along with information on where items are located and where they need to be placed on a cart, freeing pickers' hands of paper instructions and allowing them to work more efficiently and comfortably.

The international trials have shown an average improvement of productivity by 15 percent and higher accuracy rates. The user-friendly and intuitive solution has also halved onboarding and training times.

Markus Voss, Chief Information Officer & Chief Operating Officer, DHL Supply Chain says;

"Digitalization is not just a vision or program for us at DHL Supply Chain, it's a reality for us and our customers, and is adding value to our operations on the ground. Customers have been very happy about the productivity gains and are equally excited about using innovative technology at their warehouses."

After having completed a pilot program across the U.S., Mainland Europe, and the UK throughout different industries such as technology, retail, and consumer, DHL has now established the Vision Picking solution for the long run.

The technology has matured to become a standard, replicable solution for customers, allowing faster and easier implementation in their operations, helping them to benefit from productivity gains with increased speed of operations and better picking accuracy.

Employees have been enthusiastic about being able to use state-of-the-art technology and are pleased with how light the smart glasses are, and how much more comfortable the process is now with hands-free picking.

"We are very satisfied and happy that the pilot phase went so well and that we can now say augmented reality technology is one of our standard offerings at DHL Supply Chain," Voss adds.

"As one of the first logistics companies using the technology, we have truly established a new way of order picking in the industry."

DHL has been working alongside three partners in the pilot phase. Ubimax provided the augmented reality software xPick, whereas the recently announced Glass Enterprise Edition and Vuzix M100 and M300 glasses were used as hardware.

Further proofs of concept running in Asia and Australia with other partners show similar promising benefits.

Following the success of its Vision Picking program, DHL is looking into additional applications for augmented and virtual reality such as training, maintenance, dimension calculations and more.

5 Reason why Your Finance Manager is Amongst Your Key Supply Chain Stakeholders

Christon Valdivieso — Tue, 10 Oct 2017 21:37:33 GMT

By: Muddassir Ahmed

As most of us know, finance is an important function to any organisation as the company has to know how viable its balance sheet and profit and loss (P&L) statement is. The head of this function generally titled as Finance Manager is amongst the key supply chain stakeholders in my opinion.

Generally finance managers are responsible for business activities like budgeting and sales forecasting, accounting, reporting, bookkeeping, audits, payables and receivables, pay employees wages and salaries, prepare and plan internal financial information and prepare for never ending audits!

However, nowadays they are require doing more to involve in innovation initiatives, helping create vision and strategy and get involved in employee engagement initiatives. In my opinion it is important that supply chain folk have a good understanding of finance. And how this function can contribute to the success of the jobs we are in. This will ensure that the business can effectively manage the money we are saving as supply chain and procurement individuals, else we are spending in various commodities.

So if you need slightly better chance of succeeding at your business goals and mission here are 5 good reasons why your finance manager is amongst your key supply chain stakeholders:

1. Finance can help you to show impact on bottom line

As supply chain professionals we are always involve in cost reduction, inventory management, sales forecasting, supply management and many other activities which impact companies’ bottom line. If you are good friends with finance they can help you present the numbers in user friendly way, that highlight the saving you are making and making a solid impact to bottom line. The can also help you show solid audit trail of these savings.

If you are driving any E&O and Inventory reduction initiatives they can help you create provisions for dead inventory, identify cost elements which impact most or even stock accuracy! These are just one of the very few examples why finance colleagues are one of your key supply chain stakeholders and how they can help you showing impact to bottom line.

2. They can help you in your budgeting and profit planning

All supply chain and procurement managers have to submit or give their input annual budgeting and profit planning. In the early days of my Supply Chain Manager role, I found this task daunting, to the extent that I often questioned my manager with why exactly was I having to do this? You can guess the answer!

Your finance manager can help you with the process and provide your right guidance on how you can work through the input data, how you can sanity check your output and give you comparatives to validate your data.

For example entries like direct labor in warehouse, employee salaries, office suppliers, training and travelling budgets, Inventory budget, capital expenditure are typical items you have to deal with when you’ve been ask to put your annual budget! If you know them all great, if you don’t then you might want to tell your finance colleagues they are one of very important supply chain stakeholders!

3. They can help you fit in with business culture

When you are new in a company or someone new in the job it is important to understand the culture of the business. Considering supply chain and procurement are mostly viewed as cost center, adding little value apart from year-on-year saving. As these diminish, supply chain folks are forced to critically understand the wider business. Your finance leader can help you understand wider business and culture to learn what else is important.

4. You can make them look good!

Yes, we can also make finance guys look good. Not just our friends, in sales, customer service or marketing. For example, one of the task finance managers has to provide most accurse sales forecast for next year. So if you are running a well-oiled Sales & Operations Planning process you can provide sales forecast date for next 12-18 months which can be the most reliable input to profit planning.

Furthermore, in most businesses finance folks are responsible to providing forecast of inventory, cash flow, profit and loss all these financial aspects where we as supply chain professionals as massive impact (link to point 1 above). If we can provide reliable data which help them forecast these financial schedule with increased reliability and in turn we can make them looks good. What is in it for us as supply chain team? As they say in English…

“You scratch my back and I’ll scratch yours”

5. Finance can help you priorities strategically.

In my experience most supply chain jobs are very operational and tactical in nature. Someone is wrong somewhere every day. The only day when something is not wrong, it is either or Christmas Eve, Christmas Day or New Year’s Day! This makes our job very ‘reactive’ and ‘tactical’.

It is not all about avoid price increase, increased performance, service levels, and implications of risk. We ought to be responsible for giving input to strategic direction to business. So in all the day to day chaos around us, a day with finance guys off site just to discuss strategic topic can do wonder!

Conclusion:

There are many other reasons why finance managers and their teams are amongst your supply chain stakeholders which could be very specific to your business. I have only tried to mention a view based on my experience.

We as supply chain and procurement professionals should be seen as promoting integration with other functions and ingrain themselves into stakeholder communities, acting as advisers and internal consultants, and generate outside the box ideas.

11 Supplier Selection Factors to Establish JIT Supply Chain

Christon Valdivieso — Mon, 14 Aug 2017 18:09:05 GMT

By: Muddassir Ahmed

In a JIT supply chain, reliable suppliers will reduce supply uncertainty and make the supply chain more effective, therefore supplier selection is crucial. However, Purchasing in JIT environment is different and therefore it requires a slightly different mindset for selecting suppliers who can survive in JIT Supply Chain long term. Researchers¹ suggested that the selection and evaluation of supplier’s ability to delivery in JIT Supply Chain should be based upon the following factors:

JIT Supply Chain- Quantitative & Qualitative Supplier Selection Factors

1. Delivery of a Quality Product

2. Delivery On-Time.

3. Frequent Deliveries.

4. Delivery in Small Quantities.

5. Delivery of Exact Quantities.

6. Supplier’s Management Policy and Philosophy

7. A Willingness and Openness to Share Data and Information

8. Attitude towards Partnership

9. Willingness to Undertake Continuous Improvement

10. Desire to Develop New Products

11. Ease of Communication at All Levels

Hall (1983) suggested capacity and willingness to improve as additional criteria to the above list.

Carr and Truesdale (1992) stated that Nissan’s supplier selection team visits supplier factories frequently. They evaluate delivery reliability similar to those above. They evaluate products from design and development through to the manufacturing processes.

The Nissan team also looked at planning, operation, tidiness, appearance of workshop, working situation and professionalism. For professionalism they looked at engineering management attitude, the number of engineers employed, how they are structured, their technical capability and their influence within the organisation. Supplier’s location and market size is of less importance to Nissan.

Aleo (1992) described the supplier selection procedures of Kodak. A selection team is formed by Kodak consisting of multi-discipline specialists. They developed a suitable decision matrix for the particular product under the evaluation. The suppliers are ranked numerically according to their ability to meet Kodak’s programmed needs.

The selection process started with a review of current documentation pertaining to their suppliers. A comparison of supplier capabilities is then recorded in the decision matrix. The team review all historical data, quality, delivery and inspection procedures. Kodak maintained an open communication with its suppliers in the area of quality improvement and advised suppliers who failed to achieve the expected quality standards. A follow-up inspection is undertaken to ensure that the agreed changes have been carried out.

Southey (1993) described the current practices of supplier appraisal as more encompassing than before. The appraisal can be divided into two areas namely quantitative and qualitative. Quantitative includes location, financial position, facilities and capacities, technical capability and standards of quality, whereas Qualitative consists of items 6-11 in list above.

Southey (1993) also suggested other general evaluation criteria when there are numerous suppliers, for example, comparison with the level and quality of similar suppliers, supplier’s relationship with competitors, supplier’s track record and potential for future improvements to sustain JIT Supply Chain.

In JIT Supply Chain, ‘Lean supply’ requires additional supplier selection criteria. Particularly in the sense of sourcing parts close to the points of manufacture so as to keep logistic cost to a minimum. The supplier must be ready to provide a service ‘locally’ wherever the manufacturer requires it in the world. As lean production develops globally, manufacturers tend to find local suppliers prepared to compete to improve leanness.

Summary:

There has been huge amount of research done to identify suitable supplier selection criteria. The above mentioned 11 quantitative and qualitative factors are just one aspect which has been identified with keeping JIT Supply Chain only in mind.

Fast Fashion Speeds Up Supply Chain

Christon Valdivieso — Mon, 14 Aug 2017 18:06:09 GMT

Original Post on APICS.org

Apparel supply chains used to be known for producing high-fashion designs with slow response times. Designers and retailers forecast demand a year in advance and tailored their releases by season. As consumer trends have swung toward demanding low prices and fast response times, the apparel industry has shifted dramatically. Today, many businesses are trying to satisfy consumers who expect the products they want to be available right now. And for the most part, companies are succeeding in this endeavor.

This newest phase of the apparel supply chain life cycle is called fast fashion, which recognizes attempts to provide the latest styles quickly and at low prices. Because prices are so low, consumers are less concerned about how long the product will last. Instead, they are willing to make impulse buys and continuously purchase new items to keep up with the latest trends. Companies therefore are shortening the length of the fashion cycle and integrating sustainable innovation into the core product design and manufacturing process (Amed et al. 2016). The companies most cited as being in the forefront of fast fashion are Inditex, parent of Zara; H&M; Forever 21; and Primark. A study by Bloomberg Businessweek reports that Zara grew sales by 240 percent and H&M sales jumped 180 percent between 2004 and 2015 (Baker 2016). By comparison, Gap, which has a more traditional fashion supply chain, experienced level sales during the same period.

It’s interesting to think about early apparel supply chains and how far this industry has come. Hundreds of years ago, materials were sourced from local shepherds, designs were simple, and clothing was created for function instead of fashion and often handed down from generation to generation. Improving economic conditions helped that industry grow from a local to a regional one, encompassing consumers in neighboring communities or within the same country. Materials started being sourced from larger ranchers, and designers focused on high-fashion dresses that were modeled in exclusive fashion shows and sold as unique pieces to the rich and famous. To make the designs available to the public, regional manufacturers created imitation items. This also lured consumers into retail establishments, creating a more formalized business process. Still, most participants in this supply chain were within the same region, so response time was not a critical issue.

Designers soon found that there was a huge market in clothing and began to develop their own brands. Styles were scheduled to fit the seasons, so designers and retailers had to plan a year in advance. The apparel usually was sold through department stores, although a few designers established their own retail outlets. However, as more brands flooded the market, apparel companies learned that they needed to keep their prices low in order to stay competitive. As a result, supply chains expanded as companies outsourced to countries with lower labor costs, especially China.

In addition to competing on price, retailers found that response time became a competitive advantage. Those trying to operate on the four-season schedule had difficulty forecasting types and amounts of individual styles, sizes, colors and brands. Consequently, these businesses usually ended up with excess inventory that had to be sold at even lower prices or eventually scrapped. This gave rise to the fast-fashion model, which focuses on more-frequent releases of low-cost apparel throughout the year that deliver on consumer product interests. However, this shift stretched supply chains even further as apparel companies worked to keep up with the new requirements of quickly changing styles, continued lower costs and faster deliveries while juggling emerging environmental and working-conditions concerns. Zara, for instance, hires local and regional suppliers to fulfill time-sensitive orders and uses remote, low-cost suppliers for its evergreen products (Kowsmann 2016).

Fast fashion also has integrated the roles of design and manufacturing. Designers have to not only create the items but also consider how they can be manufactured and how these processes will affect the supply chain (Khan, Christopher and Creazza 2012). Again, Zara is the generally acknowledged leader in responding to design changes. Its designers work with the company’s production and logistics teams to review daily data feeds from retail stores. This feedback, along with comments from customers, store managers and country directors, help the design team decide what products to make (Baker 2016).

Supply chain implications

What does all of this mean for supply chain managers? First, there is increased pressure to establish and maintain supply chains that can deliver quality, low-cost goods quickly and efficiently. At the same time, they must be agile enough to change as market conditions change. Successful supply chains must be tightly integrated in order to be transparent to all participants, from the various tiers of suppliers to consumers. This level of integration demands a level of collaboration not found in many of today’s supply chains. It requires

systems and processes linked together to enable complete and rapid flow of information
policies and procedures that are clearly issued, understood and followed
consistent and fair transactions
technology that is appropriately matched to the functions being performed
a clearly recognized leader — whether a retailer, a manufacturer, a third-party logistics professional or even a broker who coordinates all of the steps in the supply chain
the ability to ensure the flow of goods while maintaining the smooth transitions among supply chain members.

In addition, the use of low-cost labor and the short life cycles of products have created corporate social responsibility challenges for supply chain professionals. As buyers discover the working conditions in some supplier organizations, this increases awareness about employee pay and safety. Concerned consumers expect companies to source from suppliers that support workers’ rights while offering low-cost products.

Similarly, supply chain managers must consider the end of their products’ life cycles. The flood of clothes being sold is overwhelming the reverse supply chain. About 10.5 million tons of clothes end up in American landfills each year because resale shops can only handle about 20 percent of the clothes being discarded (Bain 2015). This creates environmental waste that eventually will have to be addressed.

Fast fashion still is an emerging model in the apparel industry, but it quickly is becoming a concern for department stores and other large retailers, which are rapidly losing apparel consumers to these fast-fashion leaders. To be most effective in the future, apparel companies must consider both the market demand and the supply chain. This will enable the industry to keep up with consumer style preferences, appropriate response times and price points, and social and environmental implications created by an evolving market.

Recruiters Explain Which Types Of Messages They Actually Reply To

Christon Valdivieso — Mon, 07 Aug 2017 15:25:30 GMT

By: Lars Schmidt

You’re looking for a job—which means you’re networking your pants off. Wisely, you’re focusing on contacting recruiters and human-resources folks in particular, and you’re (just as wisely) taking a two-pronged approach: paging through LinkedIn for all it’s worth, and piecing together the email addresses of the contacts you identify, whenever you’re unable to send them an InMail message.

You realize it’s a bit of a crapshoot, since a lot of the time, this means reaching out to people you don’t know, so it’s all the more crucial that you nail your introductory message. But how do you do that? Recruiters and HR professionals receive loads of unsolicited notes from jobseekers, and yours needs to stand out.

So Fast Company asked five recruiters which types of messages—via email and LinkedIn alike—make them reach for “delete”, and which ones they actually respond to. Here’s what they said.

What They Ignore

Questions that five minutes of research can answer. “Are you hiring?” “What jobs should I apply to?” “What’s the best way to apply?” These are all straightforward questions that take mere minutes to answer just by checking out a company’s careers page. If you pose an easy question to a recruiter, it sends the message that you may not be willing to put in the effort needed to perform at their company.

Anything too generic. Don’t fire off an obvious mass email—to a recruiter or anyone. While recruiters may rely on template emails themselves, that’s all the more reason why they’ll spot yours in a second. Sure, you might cry hypocrisy here, but the fact is that if you’re shotgunning canned messages and hoping for a response, don’t expect to get one.

Instead, do a bit of homework on the recruiter you’re contacting. Do you have any shared connections, alumni, or interests? “Personalized, tailored outreach with a warm intro is easier than ever with data at our fingertips,” LinkedIn’s VP for global talent acquisition Brendan Browne points out. That means there’s no excuse for errors. “I received a few recent ones saying, ‘Your experience at Google is impressive’—I never worked at Google.”

Show recruiters you take networking seriously enough to deserve their attention. Also, be sure to check the recruiter’s profile to see if they list the types of roles they recruit for (sales, tech, etc.) so you can target recruiters who actually work in your field.

Anything that makes them look up basic info on you. Just as you need to take the initiative to do your homework on them, don’t make recruiters hunt down easy-to-find data on you. When you reach out, always cover the basics: Say who you are, where you work, and what you’re looking to do next.

Anything too long. Don’t write an essay: Be brief and get to the point. “The great messages that get my attention are short, sweet, convey genuine interest, and clearly connect their background to our hiring needs,” says Duo Security senior recruiter Jasmine Burns. Pro tip: Adding hyperlinks lets you add more content and context without adding length.

Blanket requests for job-search help. Not all recruiters are the same. Agency and executive recruiters represent candidates and help connect them with employers; corporate recruiters focus mainly on hiring for their own organizations. That distinction matters. “I’m a corporate recruiter, not a headhunter,” says Pete Radloff, principal technical recruiter at the media analytics company comScore. “While I’d love to help everyone find a job, asking me to generically ‘help with your job search’ isn’t realistic.”

What They Respond To

A clear objective, request, or call to action. Don’t be vague about why you’re connecting. On LinkedIn, it isn’t rude to send a connection request and then immediately follow up with an ask or a pitch as soon as it’s accepted. Same goes for email: Include a call to action in your very first message. Most recruiters are turned off by vague messages that dance around the point they know you want to make. Be clear about why you’re getting in touch and what you hope to gain.

Modesty. Check your ego. If you include awards or accolades on your LinkedIn profile, trust that recruiters will see them. Lead instead with your work and what you offer, otherwise it’ll sound like an oversell. As Lyst’s head of talent Matt Buckland puts it, “It’s important to maintain a calm certainty of your own skills and how they’ll benefit the company.” There’s a balance here, he explains: “Too modest and you risk sounding needy or desperate, too far in the other direction and you may sound arrogant.” So stick to the facts. “Tell us what you did, how you did it, and what you learned. Your skills will become obvious, and you’ll sound measured and confident.”

Messages that are personal, accurate, and specific. Be specific about the type of job you’re interested in (even if you haven’t spotted an opening for that precise role), and why you feel your background and experience would benefit the company. “I prefer [candidates being] very specific on parameters, such as why they’re interested in my company’s stage, location, and scope of job,” says Anna Ott, an HR expert at the incubator hub:raum.

Mentioning outright that you’re excited to work in an organization that’s in the middle of a “restructuring phase” or “growth/scaling,” Ott explains, combined with your “functional skills and/or industry expertise, helps me gauge alignment.” Recruiters get a lot of outreach emails, so the sooner you can get to your value proposition, the more likely your message is to be read.

A measure of polish. Your initial outreach is all a recruiter may have to make an initial assessment of you. That means typos, punctuation, and grammar matter. This shouldn’t really need saying, but recruiters say they encounter basic writing errors all the time. So take a moment to perfect your message. Proofread it twice—or even ask a friend for help—because you probably only have one shot.

Does Supply Chain's Image Need To Catch Up With The Times?

Christon Valdivieso — Thu, 03 Aug 2017 17:11:49 GMT

Original Post

It’s our perpetual hobby horse here at Argentus that Supply Chain needs to be doing more as a field to attract young people. And the industry has started to pick up the slack. Whether it’s organizations partnering with universities to provide information and educational opportunities, or industry associations holding informative events aimed at the wider public, many Supply Chain leaders are using creative strategies to develop the next generation of talent in the field.

But is there something about Supply Chain’s image that’s holding it back from being seen as the crucial, strategic function with tremendous career potential it is today?

This is an issue that popped up in our discussion of why there aren’t more Women in Supply Chain Leadership roles: it’s the question of Supply Chain’s popular image and whether it’s preventing women and others from viewing it as a lucrative and vibrant career option.

On company websites, magazines, promotional videos, and industry association pages, the Supply Chain industry has always employed imagery of the nuts-and-bolts of how products get to market. We’re all used to images of hard hats, warehouses, trucks, trains, shipping containers, boxes, and palettes as a sort of visual shorthand for Supply Chain as a function. We use plenty of these images here at Argentus in our blog posts, service pages, etc.

We get it: there needs to be some kind of imagery to associate with an industry or function. But it’s worth considering: does imagery of trucks and boxes adequately convey the strategic edge that Supply Chain offers to companies? Does it offer a realistic vision of what Supply Chain Directors, Planners, Strategic Sourcing professionals and others do every day to uncover efficiencies and integrate global processes across a business?

Or does it send a message to young people that a career in Supply Chain is, let’s face it, boring?

We all know that’s not the case. We recruit for jobs in Supply Chain every day, and we hear this from candidates all the time: A progressive career in Supply Chain is fast-paced, with tons of variety. It’s very closely tied to both technology and globalization, so it’s rapidly evolving. And it’s rewarding, both intellectually and financially. But many people outside the field have a persistent perception that is rooted in Supply Chain’s origins: that it’s a blue-collar, transactional function. And the imagery that we often employ hasn’t caught up with how the field has evolved.

Let it be said: we fully support and admire all the front-line individuals who make Supply Chains run effectively. Distribution centre staff, drivers, and transactional buyers are all crucial components of Supply Chain success. But it can’t be denied that images of trucks and warehouses end up reinforcing an image of Supply Chain as a purely “blue collar” function. Beyond that, they often don’t show the people themselves who really provide the value. Maybe part of the difficulty is that Supply Chain offers value as a connector. It connects suppliers with businesses, manufacturers with distributors with customers. And it’s harder to depict the connections between things than it is to depict the things themselves.

We’ve written before about how Supply Chain isn’t the flashiest business function, and it rarely gets recognition in the news. In fact, many in the wider public aren’t even familiar with what Supply Chain is. But at all levels of business all the way up to the C-suite, more and more people are noticing that Supply Chain offers a strategic edge that allows companies to succeed in a global context. It brings business functions together, streamlines operations, and ensures positive customer experiences.

Isn’t it time that Supply Chain’s image caught up to the times?

Collaboration is Key to Successful Supply Chains – So Why Aren’t More Companies Doing It?

Christon Valdivieso — Tue, 11 Jul 2017 15:00:27 GMT

By MGravier · on SCMR.com

Companies depend more than ever on collaboration with suppliers and customers, yet they’re terrible at it. According to a recent study from 3M, 70-percent of suppliers claim that half their customers do not have systems in place for collaboration – this leads to inefficiencies.

Only 43-percent of suppliers feel fully empowered to collaborate, and half have held back on strategic innovations because the customer does nothing to encourage or facilitate improvements. The result is unresponsive supply chains, particularly in the current economic environment characterized by volatility with unpredictable peaks and troughs of demand. Staying profitable requires finding new efficiencies.

The biggest opportunity is operational: companies need operational processes that translate collaboration into bottom line supply chain performance. Here are some operating techniques you can implement to try to manage to manage collaboration to ride the wave of demand uncertainty.

On-site assembly and inventory – Keeping a small store of finished or semi-finished product on-site is a powerful method that requires active collaboration to create flexibility and adaptability to customer demands. A widespread approach in healthcare and trade crafts, the method does require some skilled workforce and a degree of modularity.

Centralized planning/information, decentralized execution – Long a staple of military doctrine, this approach is a hallmark of Seven Eleven where store managers use local knowledge to make ordering decisions in the uncertain convenience store environment. The centralized information and analytics tools help store managers at the same time it more tightly integrates the supply chain.

Replace inventory with rapid replenishment – A staple case study in supply chain classes, the use of expedited transportation to reduce both pipeline and on-site inventories has yet to achieve its full potential as indicated by Amazon’s rapid expansion. Customers are willing to wait for a variety of products, particularly if the wait is only a day or two.

Refer customers to competitors – Not a first line of defense, but customers that see that you help take care of their needs are more motivated to return. After all, if you don’t have it but know where to find it, you preserve your role as the go-to supplier. And too many companies are oblivious about when customers order from someone else—you want to know when and why this happens.

Collaboration is a necessity in today’s supply chain and companies need to better embrace it in order to be successful. Managing your demand uncertainties may be as simple as asking your paid experts to offer their expertise.

WHAT ARE YOU PASSIONATE ABOUT?

Christon Valdivieso — Thu, 06 Jul 2017 19:32:13 GMT

Original post on LI by Nainsi Jain

I came across this question when I was preparing for the behavioral questions for an interview. While thinking about the answer, I actually discovered my personality trait. I am passionate about Improvements. During my career of almost 9 years, I always strived for continuous process improvements, even after making an improvement I start identifying another loophole into the system to make the system more efficient. My team members used to call me 'Ms. Perfectionist', who is never satisfied with the present system.

I never knew I was following lean concepts of eliminating Mudas, Kanban, 5S etc. while making those improvements. These fancy words were taught to me at ASU and I actually start relating my past experiences while learning the concepts. So, in a way it was a reverse education for me wherein I applied concepts earlier while working and learned the terminologies later.

Yes, the question helps me discover my hidden passion. A passion which I follow even when I am at home. A passion which is an integral part of my thinking. A passion which defines me completely. A passion which explains my curiosity of learning new skills, attention to details, taking initiatives and ownership, the foresight for eventuality.

Find out your hidden passion!!!

Supplying Thought: The [Supply Chain] Monster Under The Bed

Christon Valdivieso — Thu, 22 Jun 2017 18:40:59 GMT

By: Christon Valdivieso, CSCP, SSBBP and Afton Knight, CSCP, SSBBP

The Beyond the Horizon (BH) supply chain research project, a joint venture between APICS and Michigan State University, recently released a report which investigates the focus and “current business practices” of supply chain executives. One key questions they asked supply chain executives was, “What keeps you awake at night?” Not surprisingly, one of the top six answers was capacity and resource availability.

Over the past decade most American industries have experienced some level of contraction followed by consolidation. Now, after several years of soft, yet steady, growth, companies are starting to outperform their operations.

Read full article

Supplying Thought: Advanced Planning and Scheduling

Christon Valdivieso — Thu, 25 May 2017 18:16:15 GMT

By: Christon Valdivieso, CSCP, SSBBP and Afton Knight, CSCP, SSBBP

Making strategic business decisions can be stressful and difficult in the best of situations. Having good data and insight provide objective support and fact-based grounds for those decisions. I was able to work on a project recently with a California-based beverage company that was looking to develop an advanced planning and scheduling (APS) system. Manufacturers have historically relied on experienced production managers for their planning and scheduling needs but, as complexities increase within manufacturing processes and the supply chain as a whole, companies, including the beverage company we worked with, are moving toward automating their production planning and scheduling functions. After reviewing the benchmark data, we supply this thought: How advanced is your APS system?

The APICS dictionary defines an APS system as "any computer program that uses advanced mathematical algorithms or logic to perform optimization, and/or simulation on finite capacity scheduling, sourcing, capital planning, resource planning, forecasting, demand planning.” Our initial step in the project was to benchmark industry standards by spending time with planning teams from various operations. Through this process we developed three key factors needed for a successful APS system implementation: 1) Communication, 2) Visibility, and 3) Integration.

Read Full Article

All Block and No Chain

Christon Valdivieso — Wed, 10 May 2017 21:11:08 GMT

By: Christon Valdivieso, CSCP, SSBBP and Afton Knight, CSCP, SSBBP

Recently a friend and I were discussing the value of blockchain technology to businesses. He pointed out that blockchain has the potential to increase visibility and decrease processing time allowing businesses to operate faster and with greater integration. My point is that businesses are not ready for it and thus it’s a pointless technology.

While blockchain is a great technology that can increase speed and visibility, companies are already way too much “block” with no desire for the “chain”. Working with different companies I have found that most companies do not share data cross-functionally well, making the idea of sharing information across companies laughable.

Read Full Store Here

Supply Chain Tips for Small Businesses

Christon Valdivieso — Mon, 08 May 2017 23:00:33 GMT

By: Abe Eshkenazi

Last week, The Telegraph highlighted examples of supply chain strategies for small businesses that are ready to grow. “Suppliers can make or break a smaller business, especially when it’s scaling up,” Lucy Douglas writes. “Securing sufficient product or service to support expansion is a minimum requirement for growth.”

The three entrepreneurs featured in the article offer the following supply chain advice:

Focus on sales forecasts.
Have a backup plan.
Invest in your suppliers.

Tim Westwell is the co-founder and chief executive of Pukka Herbs, an organic tea producer. He stresses that it is important to look two to three years ahead in terms of sales forecasting and planning. This strategy has enabled the company to grow in its 16 years to produce 1.5 million teabags every day. Pukka Herbs sources its ingredients, including more than 150 herbs, from about 30 countries around the world.

Westwell also explains how weather can create a risk to his supply chain. One year, in India, the weather changes at harvest time rendered Pukka Herbs’ field mint unsalvageable. Westwell could rely on backup inventory and an alternate supplier, which reduced the delay in manufacturing the company’s Three Mint tea to only a few weeks rather than an entire year.

Frontierpay, which was founded in 2009, is an international money exchange broker. As the company has grown, its main business interest has also created its biggest obstacles. The company must keep up with the different and often changing financial regulations in the countries to which it delivers payments. To ensure that it appropriately follows these regulations and manages this risk, Frontierpay works with banks and other payment providers in 109 countries around the world.

Nat Davison, a Frontierpay partner, says the company was able to grow because it has multiple partner options in each country. “We always look to multiple partners and solutions per country to make sure that if one thing falls over in our supply chain, we’ve got a plan B, C and D.”

Similarly, Portview, which creates interiors for shopping, dining, working, living and entertainment spaces, sources its materials and products from all over the world. However, because of the deadline-driven nature of its work, Portview strives to work only with trusted suppliers.

“We’ve been in a few situations where, for example, a client has recommended [a supplier], then they go bust or don’t deliver,” said Simon Campbell, Portview managing director, in the article.

After some challenges in the beginning, Portview now also utilizes a systems approach to supplier management, which alerts company executives when supply might become problematic.

Lastly, when it comes to investing in suppliers, Pukka Herbs ensures that partners in its supply chain have the tools and know-how they need to meet specifications. The company spends time educating producers about organic farming. This enables the tea company to meet many requirements related to its organic certification. Efforts include simple books written in native languages that explain to farmers how to plant, maintain and harvest organic herbs.

Scaling up

As businesses grow, the ability to meet demand is a critical component of success. Consider the first definition of scalability from the APICS Dictionary, 15th Edition: “How effectively a company can grow its business in order to meet demand.” A key component of scalability is lean production practices, which help ensure that a company manages its resources and reduces waste in terms of material, time and overall costs. Lean practices boost efficiency and enable growing companies to accommodate growing production needs.

Now think about the definition of sales and operations planning (S&OP): “A process to develop tactical plans that provide management the ability to strategically direct its businesses to achieve competitive advantage on a continuous basis by integrating customer-focused marketing plans for new and existing products with the management of the supply chain. The process brings together all the plans for the business (sales, marketing, development, manufacturing, sourcing, and financial) into one integrated set of plans.”

Supplying Thought: Cloud 9

Christon Valdivieso — Sun, 30 Apr 2017 08:37:00 GMT

Co-Authored by: Christon Valdivieso, CSCP, SSBBP and Afton Knight, CSCP, SSBBP

With seemingly weekly news of data breaches, it can be tempting to bring data security in-house and off the cloud. But will that make your data safer? Cloud computing—services offered over the internet—can be a scary decision, but as business advisor Carol Roth points out, “[cloud computing] technology can help make your small business safer.”

Most businesses are continuing to streamline workflows and increase workforce demands. This creates more pressure to get tasks done effectively. For many small businesses who cannot afford top-tier talent, this puts an even greater strain on their workforce. In the middle of this struggle for associate’s energy is the company’s systems. Having secure, reliable data and systems is paramount to an operation’s success and Carol points out four undeniable reasons why cloud computing makes that a better option:

1) You’re not a security expert

2) Your staff members wear enough hats

3) Cloud providers have better safeguards than you do

4) It’s not just about data protection

While business leaders have experiences that qualify them to run an operation, “does that background include intensive knowledge of cybersecurity?” As for associates, Experian predicted in a 2015 data breach analysis “that the largest threat to businesses will be employee errors.” In effect, maintaining data and processes in-house puts operations at greater risk due to lack of cybersecurity training. Cloud providers have a core competency in cybersecurity. Pulling these functions from local operations allows for increased focus on business operations while decreasing the operation’s vulnerability.

Carol’s final point is possibly the most poignant. Cloud computing is more than data protection. Similar to the difference in e-retailing and e-commerce, cloud computing goes beyond data protection. Cloud computing—through its various forms—increases transparency, efficiency, and business continuity.

In the end, “no matter how impressively cloud providers protect data, security is a team effort” and “small business owners still have to take common-sense measures”. Companies spend vast sums of money to recruit and train associates, but that cannot be the end of the story. Companies must ensure they have the best tools in place to allow their associates to be successful. That being said, I supply this thought: Is fear of the cloud keeping you grounded or rooted?

Tip: Reduce Turnover by Avoiding 'Warm Body Syndrome'

Christon Valdivieso — Fri, 28 Apr 2017 19:32:03 GMT

Original post: MDM.com

In order to reduce turnover, focus on hiring the right person for the job, not just someone to fill a vacant seat, according to Nancye Combs, president and CEO of HR Enterprise, in 5 Tips to Reduce the Cost of Employment, from the 2016 Distribution Trends Special Issue.

Too many distributors suffer from “warm body syndrome,” Combs says. “They hire someone who’s there, breathing and alive because we’ve got a vacant seat and we’ve got to fill it right now.”

Too often that person isn’t a right fit for the job, and you end up spending even more money to fill it again later. “The minimum cost of replacing an employee, any employee, is $4,000,” Combs says. If your turnover rate is 30 percent, that can add up quickly.

Focus on hiring the right people at the start to reduce that rate and lessen the amount you spend on hiring and onboarding.

Read more HR advice in 5 Tips to Reduce the Cost of Employment.

What profitability can be gained through optimising pallet flow performance?

Christon Valdivieso — Thu, 27 Apr 2017 00:31:38 GMT

Author: Dale Benton

When it comes to pallet racking, flow storage is essential for managing perishable, time-sensitive products on a first in, first out (FIFO) basis. Since its design eliminates aisles and fills the space with additional pallets, it provides many times more storage than selective rack. In addition, forklift travel is greatly reduced because drivers only need to place and retrieve loads from either end of the system - significantly reducing operating costs, maintenance, and accidents. Better space utilization also minimizes the need to light, heat and cool the facility, further decreasing expenses.

While the advantages are numerous, due in part to its design and moving parts, there are additional considerations for those operations looking to improve production with a flow storage system. These 10 tips can help prolong the life of the equipment, cut maintenance costs, and enhance safety with the proper design, selection, and operation of the system.

Read full article here

Tip: Understand Customer Demand Before Investing in Mobile

Christon Valdivieso — Mon, 24 Apr 2017 18:01:11 GMT

Original Post: MDM

Smartphones and apps have permeated every aspect of business. But before you invest in mobile technology, make sure you understand what your customers want from mobile, says Senthil Arumugam, vice president of distribution, US LBM Holdings LLC in Making the Case for Mobile.

“Our app user base has continually grown over the last three years, and customers have clearly indicated this to be a time saver for them at the jobsite," Arumugam said. "Our investment in customer-facing technologies reflects this belief.”

While not every company needs to invest in mobile apps and other tools that help customers do their jobs away from the office, it is critical to know if mobile is something your customers want.

MRO or safety products, for example, lend themselves to mobile because they can be set up with one-click reordering. Even if ordering remains low, customers who know they can navigate to a mobile-friendly platform for other services will be less likely to start browsing elsewhere.

While a mobile app might not work for every distributor, gauging your customers’ demand for it is critical to keeping pace. According to a Google study, 52 percent of users are less likely to engage with a company if it has no mobile site. Does that include your customers?

Read more about how to make mobile work for you in Making the Case for Mobile.

Uberizing the Manufacturing Industry

Christon Valdivieso — Mon, 17 Apr 2017 17:19:07 GMT

Original Post: APICS.org

Companies within the service industry are changing the concept of ownership and the ways consumers access goods and services — from movies and TV shows to places to stay and means of transportation. Now this trend is making its way into the manufacturing industry to connect small businesses in need of prototypes and products to manufacturers with idle machines.

In her April 8 article for Quartz, Ellen Sheng highlights MakeTime, a Kentucky-based start-up that specializes in distributed or on-demand manufacturing. Companies, entrepreneurs and inventors can engage MakeTime’s services to rent time on nearby manufacturing equipment — including CNC (computer numerical control) milling machines, water jets and laser cutters — to build their prototypes or complete their production runs.

MakeTime Founder and CEO Drura Parrish was inspired by his own professional experiences to create this service. As an architect, he spent time in machine shops creating custom items and noticed that expensive machinery often sat idle, instead of making the company money. Some manufacturers might have overinvested in equipment after winning big jobs in the past, but as the contracts ended or the products and market changed, the equipment became surplus for these companies. As a result, U.S. manufacturing equipment sits unused about half the time, on average, Sheng writes.

There also is a group of small businesses that do not have the funds to invest in their own manufacturing equipment. This is where MakeTime comes in: The firm connects companies that need machine time with manufacturers that have it. Basically, the customer uploads parts files into a MakeTime product library, adds the order to the online cart, and specifies the project lead time. Within one business day, MakeTime will match the project with a manufacturer and follow up with a data-driven quote. If the quote is satisfactory, the customer signs the purchase order and submits payment. During the process, the customer can track parts from the start of machining to delivery, staying informed every step of the way.

The process helps clients make their products in a quarter of the time it usually takes with traditional manufacturing processes, Parrish tells Quartz. “We streamline [the process], so 100 to 200 machine shops can operate with the same level of control as one,” he says. In addition, the service cuts down on some of the administrative aspects of orders, including the time it takes to find manufacturers, request price quotes, receive and evaluate them, and negotiate the best deal.

In addition to changing the way small businesses access manufacturing services, this Uber-style model could transform the manufacturing industry as a whole. Sheng points out that this industry has been slow to digitize and standardize. For example, there is no universal file type used in manufacturing. Instead, different companies use different software and file types, standards, and descriptors. Some even still stay away from technology and rely on pencil-and-paper drawings.

This particular industry also is very siloed and specialized. Various certifications and specialized machines and processes for working with certain types of materials often result in manufacturers sticking to the types of parts they know best. For example, an auto parts manufacturer likely won’t also make parts for the oil and gas industry, even if the equipment is similar, Sheng notes. MakeTime hopes to break down these silos and properly align supply and demand in machining.

Transformation ahead

Although MakeTime’s model is new to the manufacturing industry, this innovation has the potential to transform the way manufacturers function, find customers, and meet their production needs. Right now, though, the industry is slowly accepting the change and only using this method for small orders of noncritical parts. This slow, methodical progress is in line with recommended change management processes for individual businesses. The APICS Dictionary, 15th edition, defines change management as follows: “The business process that coordinates and monitors all changes to the business processes and applications operated by the business, as well as to its internal equipment, resources, operating systems, and procedures. The change management discipline is carried out in a way that minimizes the risk of problems that will affect the operating environment and service delivery to the users.”

Supplying Thought: C is for Collaboration

Christon Valdivieso — Mon, 27 Mar 2017 23:21:40 GMT

Authored by: Christon Valdivieso

Edited by: Afton Knight

In my last article, I wrote about ASAP management and SOPs. I identified four steps to creating lasting SOPs, and wanted to add some clarity concerning Step 1. The first step to implementing lasting SOPs is to ensure the SOP is clearly understood by leadership and personnel. However, this principle is easier said than done. To elaborate, there are two important elements that should be discussed. The first is to obtain buy-in. The second element is to clearly communicate that vision. Obtaining buy-in, the first element, is the more difficult and most critical one. In fact the major reason “70% of all organizational change efforts fail” is due to leadership not getting enough buy-in.

What makes the buy-in process difficult is the changing business landscape. Businesses are increasingly headed toward more collaborative cultures. Companies are realizing the true cost of operating within silos and are seeking to break down functional barriers and develop cross-functional practices. This new landscape requires a collaborative intelligence focused on inclusion and respect.

In a silo or independent operation, collaboration often means asking associates for input before making a final decision. In a cross-functional role, collaboration entails a team-based development process. In both cases, collaboration is instrumental in obtaining buy-in. Professionals need to develop their collaborative intelligence to understand which environment they are in and how to successfully include the appropriate stakeholders. Professor John Kotter of the Harvard Business School explains:

“Buy-in is critical to making any large organizational change happen. Unless you win support for your ideas, from people at all levels of your organization, big ideas never seem to take hold or have the impact you want.”

How you approach getting buy-in is, then, also critical. True buy-in is more than support. Lasting buy-in is a result of co-creation. Thus, getting key stakeholders involved earlier will help ensure you have support later.

Once buy-in is achieved, the second element—ensuring everyone understands the vision—is simplified as there is an established coalition of support for the new standard or process. The second part requires clear communication of the vision and the ‘why’; which, if you haven’t clearly developed the ‘why’, you probably do not have much buy-in. How you communicate is also important. Printing and posting a new policy for rank and file associates without an announcement or explanation would be as ineffective as a reference slide in a slide deck to senior leadership. When communicating a vision, how you communicate is just as important as what you communicate.

Before going down the SOP implementation steps take a second look at step 1 and consider this thought: Do you have a clearly defined vision and a coalition of support?

Supplying Thought: SOP vs. SOP

Christon Valdivieso — Mon, 20 Mar 2017 20:38:35 GMT

Authored By: Christon Valdivieso

Edited By: Afton Knight

Recently, I wrote about the seven complexities (7Cs) and how they add waste and increase costs. The solution to most of the 7Cs is to create standards to help increase effectiveness and reduce waste. It is only natural, then, that we take some time and talk about SOP's as well. Most of us know that SOP stands for standard operating procedure and understand the value of having them implemented. Unfortunately, for many operations—especially those with un-managed complexities—SOP means “Sometimes Our Policy.”

The problem originates with organizational focus. Companies with ASAP management approaches are inherently reactive and usually cannot be proactive. Leadership is generally too focused on the now to develop SOPs that proactively drive the future. This is because ASAP management is exception based management focusing on current needs while SOPs create a standards-based management system that can focus on future needs. This truth forces two basic questions:

1) Is my company an ASAP company?

2) How do I institute lasting SOPs?

The first question is relatively simple. Begin by looking at deadlines, lead times, and planning horizons. If they consistently seem too short, are always rushed or interrupted, or if they are "floating" and do not actually exist, you probably operate in an ASAP environment. This is frequently synonymous with "do whatever it takes" and sometimes even the "just make the customer happy" environments as they engender exception based operations.

Take Robert, for example. Robert works in a warehouse for a wholesale company providing goods to box stores in Northern California. This company prides itself on next day delivery to its customers and requires its sales team to have orders in by 2 pm to ensure they can pick, pack, and stage orders for the next day. Frequently, however, orders continue to roll in until 3 pm and the end of each day is usually a scramble—regardless of how much planning went into it. While the company believes it has established a 2 pm cut-off “standard,” the cut-off is floating and thus exceptions are made almost daily in order to “make the customer happy.”

Question two requires a bit more work. SOPs provide a solid foundation for training and allow organizations to hold people accountable. SOPs provide associates and supervisors a reliable reference for how tasks need to be done, and teaches team-members that the organization is serious about their processes and expects them to be followed. To ensure lasting SOPs are instituted, three main steps should be followed:

1) Ensure the purpose of the SOP is understood by leadership and associates

2) Engage appropriate stakeholders

3) Ensure the SOPs are distributed and read

4) Monitor Compliance

While these four steps seem simple, the reason SOPs fail most often is because one of these four steps are violated. When supervisors are promoted—especially from a different department—do they understand the purpose of the SOPs or even where to find them? Are the trainers passing on the SOPs as intended or are they teaching their own version? Is the training documented?

When I worked in restaurants, we talked about the same SOPs at every shift meeting all week before going to the next topic and circled back to them several times a year. This ensured every person—new or seasoned—understood the standards and did not deviate from them over time. How well are SOPs re-visited at your organization? Are you in an ASAP company? The truth is SOPs are easy to implement, but sustained SOPs require a commitment to teach and re-teach as time goes forward. Without the commitment, SOPs will quickly go from “standard operating procedures” to “sometimes our policy.” With that said, I supply this thought: What does “SOP” mean at your organization?

Maersk & IBM Use Blockchain to Streamline International Trade

Christon Valdivieso — Fri, 17 Mar 2017 22:38:51 GMT

Authored by: Zach Cohen

www.linkedin.com/in/zacharyacohen/

Maersk is the first multinational supply chain company to announce its foray into utilizing blockchain technology to streamline its operations. Maersk has partnered with IBM to launch a version of Hyperledge Fabric, an IBM blockchain solution that has been developed as part of the Linux Foundation’s Hyperledger Project. Maersk and IBM are by no means the first companies to utilize blockchain technology the supply chain space. This credit duly goes to pioneers like OpenTradeDocs, Provenance, SkuChain and Wave that have been diligently working on the application of blockchain technology to supply chain finance, bills of lading and transparency to supply chains.

Potential Impact of Maersk & IBM's Solution

Maersk and IBM’s solution is the first large scale solution for cross-border shipping and logistics. Specifically, their solution makes the process frictionless for customs officials and logistics providers involved. What struck me about Maersk’s and IBM’s solution was that it could integrate and operate with multiple customs systems at several ports and with various types of products. With the current paper-based system, there are numerous problems with supply chain visibility, supply chain finance, potential for corruption, human error and fraud. Besides these problems, there are numerous direct and indirect costs attributed with an international shipment that each impact the shipments lead time. Each direct and indirect costs impacts a shipment's lead time differently, this is shown in the diagram blow.

Source: Maersk

Pilot Project

Kenyan Flowers Sent to Holland

Maersk looked at a single shipment of flowers being sent from Mombasa to Europe in 2014. This single shipment generated 200 separate communications between about 30 different organizations including the grower, logistics companies, government agencies, banks and Maersk [1]. These 200 communications created a stack of documents that measured about 25 centimeters in height [2]. Maersk and IBM tested their solution by adding all the actors to a blockchain solution that utilizes smart contracts.

Once the growers submit a packing list via a computer or mobile device a smart contract is initiated. This starts an export approval workflow with the relevant Kenyan government agencies. As soon as an export agency signs the relevant document, its status is automatically updated within the blockchain. All relevant parties can view the status of each export document. At the same time, simultaneous status updates about inspection of the flowers, sealing of the refrigerated container, pickup by the logistics company and approval by the customs company are sent to the Port of Mombasa. This enables the Port to prepare for the arrival of the container. Further, all documents and actions related to the physical goods are shared. Permitting tracking of where the flowers are and who has possession of them as well as the next steps on their journey. This is particularly important due to the perishable nature of flowers.Source: IBM

Challenges

Still challenges remain as Maersk and IBM rollout for this solution. Getting buy-in from governments, major 3PLs and land-based logistics providers is crucial. Customers will want to know that the major logistics companies are also using this solution enabling ease of use and assurance. Further, expansion will be limited by the number of governments, customs agencies and port authorities willing to adopt this new system. Other challenges:

· Buy-in from other government agencies need in the export/import process

· Varying import and export

· Ease of use for customers

· Teaching all relevant government agencies involved in the export/import process how to use the system

· SCM Finance platform linkages will they be a part of the platform?

· Linkages with 3PLs and land-based logistics providers

Does Blockchain = Cost Savings?

The big question is will blockchain truly generate significant cost savings for Maersk, other ocean carriers, logistics services providers, ports and customs officials? For a short answer yes. IBM conducted a use case with a shipment of avocados on the same shipping route Mombasa to Rotterdam, and calculated that the cost of the shipment was $2,000. However, the cost of the paperwork for the shipment cost $300, or 15-20% of the shipment's cost, which can be attributed to inefficiencies in visibility and timing in the export process [3]. When you consider that the cost of processing the documentation for a single shipment cost approximately twice as much the shipment itself, reducing the cost of processing trade related documents related by 15-20% would greatly reduce overall costs. This is just in terms of processing the documentation, not even with regards to the impact that the blockchain solution has on supply chain barriers. Additionally, reduction in document processing times impact overall shipment lead times.

Blockchain's Future at Maersk and Beyond

Blockchain has other advantages besides reducing the costs of processing trade related documents. Fully unlocking the true potential of smart contracts via blockchain has the latent potential for a frictionless trade platform where supply chain finance, customs processes and import/export licensing can be optimized for all parties throughout the supply chain. Further, it enables a chain of custody to be created for shipments so that all actions, documents, location and custody of the shipment are known to both the supplier and buyer creating complete transparency. Other added benefits are verification of certifications from third parties, which are particularly important in the case of food safety, conflict free minerals and pharmaceuticals. It will be interesting to see how Maersk utilizes the blockchain solution with these items that require more scrutiny from export and import officials with regards to certification.

If the Linux Foundation is developing other blockchain solutions for supply chain aimed at overcoming supply chain barriers and this is the first of many products to come, the future is very bright indeed. However, Maersk and IBM's product still has to scale their product. It has proven with successful with a challenging and time sensitive perishable good. Maersk's expansion of the blockchain solution to products that face the most numerous obstacles during the export and import processes are the ideal place to start. If they can conquer the most challenging products to ship, then routine shipments will give them little difficulty as they continue to onboard clients to the blockchain solution.

Potential Global Impact?

Let's think about this in a more global context for a second. The International Maritime Organization and the UNCTAD estimate that approximately 90% of the world's trade was transported by sea in 2016 [4]. With so much of the world's trade stuck in processes that are so inefficient, inconsistent and ambiguous they impact not only businesses but also consumers through higher costs. A 2013 study by the World Economic Forum, World Bank and Bain Capital found that reducing supply chain barriers to international trade could increase world trade by 15% and world GDP by 5% . The report goes on to further state that "reducing supply chain barriers to trade could increase GDP up to six times more than removing tariffs [5]." The estimates in the report are based on if every country in world improved only two supply chain barriers - border administration and transportation and communication infrastructure - to even half of the world's best practices. Maersk and IBM's solution directly affects both of these areas. Further, their solution maybe the first of many to start reducing the supply chain barriers to international through blockchain.

Sources

[1] IBM. “Maersk and IBM Unveil First Industry-Wide Cross-Border Supply Chain Solution on Blockchain.” IBM News Release. (March 5, 2017) https://goo.gl/9sZr0D

[2] Ian Allison. “Shipping giant Maersk tests blockchain-powered bill of lading,” International Business Times. (October 14, 2016) https://goo.gl/OI5e6b

[3] Ian Allison. "Maersk and IBM want 10 million shipping containers on the global supply blockchain by year-end." International Business Times. (March 8, 2017). https://goo.gl/Uayxaj

[4] International Maritime Organization. “IMO Profile.” United Nations. https://goo.gl/yzn7lM

United Nations Conference on Trade and Development. Review of Maritime Transport 2016. UNCTAD Secretariat, 2016: New York.

[5] World Economic Forum, Bain Capital and the World Bank. “Enabling Trade: Valuing Growth Opportunities.” 2013. World Economic Forum: Geneva.

Supplying Thought: The Company You Keep

Christon Valdivieso — Mon, 20 Feb 2017 19:16:08 GMT

Authored By: Christon Valdivieso

Edited By: Afton Knight

A subway station in Chicago has two escalators. One only goes up, the other only goes down. Your company wants to build another single direction escalator. It has done the research and it comes down to your decision. Do you build one that goes up or one that goes down?

I came across this question recently and found the various answers I got to be quite interesting. Some initially took the easy way out and said, “I don’t know” while others, like myself, sought the most profitable solution for the company. Most of the supply chain people I discussed this with took a while before considering flow, bottlenecks, queue time, or even variability of demand. Each is a reasonable—and understandable—response, but the supply chain focus seemed to be secondary? Many of us are quick to relate to the bottom line, but not the process by which we achieve it.

It is said, “You can tell a lot about someone by the company they keep.” In the office, we work with various departments and colleagues to reach some bottom line objective. While leadership initiatives come and go, there is always the push to maximize the bottom line. There is nothing inherently wrong with this “bottom line” mindset, but it easily becomes “the company we keep.” If supply chain professionals are to grow and add value, they need to remain in the mindset of how the supply chain, and their process, impact the bottom line. The fact is while entry and secondary managers learn about and get certified in supply chain, they get immersed in a world of profitability.

The shift, then, needs to be towards an immersion into the mindset and language of our profession. Similar to a language immersion, a mindset immersion has two main benefits:

1) Familiarity with real-world, practical applications of the language and concepts; and

2) In-depth understanding of inhibitors and processes

Just like learning a new language, immersion adds benefits that a classroom cannot provide. It not only reinforces learned principles, it demonstrates aspects of the language that simply cannot be replicated in the classroom. For industry professionals this equates to participating in professional organizations, reading blogs, teaching concepts to others, attending conferences, etc. In these settings industry professionals are surrounded by the language and the concepts that create success without the pressure of leadership direction. Understanding the benefits of immersion I supply this thought: How does the company you keep describe you?

2017 Outlook: Win the Mid-Market

Christon Valdivieso — Thu, 09 Feb 2017 21:00:23 GMT

Authored by: Thomas P. Gale

Originally Published on: MDM.com

2017 is setting up a market stability that we haven't seen in many years. That's the good news. But, of course, I can't leave well enough alone. There are also good arguments that 2017 will be a tipping point for wholesale distribution, as our recent reports in MDM have outlined.

The tipping point won’t be a moment in time; it won’t happen overnight. This tipping point will be felt by distributors and suppliers at very different rates based on the unique market characteristics across all 19 wholesale distribution sectors in the US and the types of customer segments served.

But it’s important to talk about the canaries in the coal mine.

There is one key driver for everyone: customers. And markets are converging on one segment – mid-market customers. Every company defines what the mid-market is for them, but it ranges from companies of 10 employees up to 500 – and for some it's even up to 1,000. These mid-market customers are the competitive prize driving convergence.

I’m not a big fan of the term “convergence,” but it describes more accurately what is happening today than any other term. It includes what every business is seeing in terms of digital impacts and how a multichannel approach to sales and marketing is a critical competitive shift driven by customers.

Convergence is taking place across all sectors of the channel, in technology and to the very nature of what a productive workforce looks like. Customers are driving how their suppliers position to capture and engage their attention and business. These are fundamental shifts.

In our 60-minute Industry Outlook webcast last week, I outlined examples of how both Grainger and Staples have developed multichannel strategies to target small- and mid-market customers. Both have reduced store locations and strengthened digital channels. Staples’ strategy is to move from being an office products retailer to a solutions partner for mid-market customers. It’s aggressively growing its product portfolio and already expanded its share of safety, jan/san supplies and increasingly broader MRO and facility maintenance product categories.

Amazon also continues to expand and impact channel dynamics as both a convergence driver and enabler as a digital utility or platform across every sector.

The key question in 2017 is how to protect and grow core customers. In a scenario with improving market conditions, there will be more powerful competition for the sweet spot of mid-market customers. We’re in a continuing cycle where there is a growing gap between companies adapting to these trends and those that aren’t.

Some talk about a tipping point where that gap becomes a cliff for non-adapters. All of these factors combine to offer a two-sided story – good growth is more likely than the past few years, but competition will be tougher from all sides.

For a modestly optimistic economic outlook for 2017, I recommend that you watch our 60-minute on-demand webcast of last week. Dave Manthey of Baird shared his economic snapshot and outlook for key markets across industrial, electrical and building products and facilities maintenance sectors. He also reviewed upbeat results from our fourth-quarter survey of more than 500 distributors.

Why Blockchain is a Game Changer

Christon Valdivieso — Thu, 09 Feb 2017 16:51:34 GMT

Authored by: Estelle Rossman

Original Post on: https://www.linkedin.com/pulse/why-blockchain-game-changer-estelle-rossmann

Within Supply Chain there are many different strategies and trends that companies use to have a competitive advantage over the competition. Paul Dittmann identified seven trends that should be addressed in any supply chain strategy. These trends are called Game Changers which are Collaboration, Lean and Six Sigma, Aggressive Management of Complexity, Network Optimization, Global Supply Chain, Sustainability, and Focus on Cost and Working Capital. Dittmann’s Seven Game Changers move the strategy focus from internal to an external focus on the firm. Although all of these game changers are essential for a company to identify with, I believe that there are some new game changers that companies can benefit from. With so much new technology emerging and there are some new trends that are being introduced in the market. Blockchain technology was introduced to help with financial security and reliability by creating a distributed database that holds records of transactions.

The use of Blockchain is a new trend in the marketplace that has the ability to help strategically serve your customers but also helps by identifying strategic methods to improve tasks such as recording, tracking, assigning, linking and sharing data. Blockchain makes it easier and safer for firms to work together over the internet. Information is shared and continually reconciled on the database, allowing all information to be public and verifiable.

This technology was introduced in 2009 by Bitcoin, a company that is a leading innovator in the financial sector. Bitcoin is the first company to decentralized global currency with the creation of Blockchain. With the use of cryptocurrency or digital currency, it opens up a wide market to provide a new generation of internet interaction, through online payments and transactions for digital assets. This new company is gaining a lot of attention from the financial and technological sectors by being able to access an underground economy which attracts close to $1 billion in venture capital. Bitcoin creates a new game changer in the business to enhance transparency which helps to reduce delays due to human error.

All transactions done through Bitcoin is permanently recorded in the Blockchain for anyone to see. This technology has the ability to provide total visibility and eliminate the middlemen used to typically conduct, authorize or verify transactions.

"Blockchain could reduce banks' infrastructure costs by $15-20 billion per year by 2022." -Kevin Petrasic (Petrasic and Bornfreund, 2016)

A company named Bitwages uses Blockchain to make their international payroll cheaper, quicker, and more reliable by being able to remove banking intermediaries. With the use of Blockchain, the company is able to reduce time delays in the process by two to three days and saving on average about 8% in costs. Many of these companies are using big data and cloud technology rather than going to tellers and branches to have faster access to lending. Banking organizations are realizing that they are in danger of this disruption to their traditional financing sector. Banks must quickly respond to this technology if they want to remain on the grid in a digitally centric world.

The Blockchain is a versatile technology that can create value and improve processes when applied to different industries. Tierion was the first company to create a Blockchain in the healthcare industry. With the use of Blockchain technology, it creates a strong data integrity and security to share information regarding patient data from hospitals, doctors, and insurance companies. It has the potential to optimize interactions between health care records, insurance claims, and patient data. As the healthcare technology is known to move slowly due to its high risk and consequences of failure, Tierion applied the technology towards the medical system manufacturers. This would allow Blockchain to record the usage of maintenance history of MRI machines, providing transparency and sharing the data to hospitals for prevention.

Blockchain is also being applied at a startup company called PeerTrack. The company created its own system called MUSE Blockchain which is specifically designed for the music industry. PeerTrack is making is making it easier and convenient for artists to manage royalties and revenues in a sort of equity trading system.

With the use of MUSE Blockchain, the company allows artists to "instantly claim 90 percent of their sales income" instead of only receiving about 15 percent which is currently what they get. -Ben Dickson (Dickson, 2016).

Sources:

Chester, Jonathan. "Why Innovative Companies Are Using The Blockchain." Forbes. Forbes Magazine, 11 Jan. 2016. Web. 27 Jan. 2017. <http://www.forbes.com/sites/jonathanchester/2016/01/11/why-innovative-companies-are-using-the-blockchain/#1fc219b52d93>.
Dickson, Ben. "How blockchain can change the music industry." TechCrunch. TechCrunch, 8 Oct. 2016. Web. 04 Feb. 2017. https://techcrunch.com/2016/10/08/how-blockchain-can-change-the-music-industry/.
"How Blockchain Technology Will Disrupt Financial Services Firms." Knowledge@Wharton. University of Pennsylvania - Wharton, 24 May 2016. Web. 04 Feb. 2017. <http://knowledge.wharton.upenn.edu/article/blockchain-technology-will-disrupt-financial-services-firms/>.
Petrasic, Kevin, and Matthew Bornfreund. "Beyond Bitcoin: The blockchain revolution in financial services." White & Case LLP International Law Firm, Global Law Practice. N.p., 7 Mar. 2016. Web. 04 Feb. 2017. <http://www.whitecase.com/publications/insight/beyond-bitcoin-blockchain-revolution-financial-services>.
Vorabutra, Jon-Amerin. "Why Blockchain is a Game Changer for Supply Chain Management Transparency." Why Blockchain is a Game Changer for Supply Chain Management Transparency - Supply Chain 24/7. N.p., 3 Oct. 2016. Web. 27 Jan. 2017. <http://www.supplychain247.com/article/why_blockchain_is_a_game_changer_for_the_supply_chain>.

Supply Chains Strengthened On “Silk Road” With New Navis Implementation

Christon Valdivieso — Tue, 22 Nov 2016 04:38:22 GMT

Authored by: Patrick Burnson

Original Post on: SCMR.com

Navis, a part of Cargotec Corporation and provider of operational technologies and services that unlock greater performance and efficiency for the world’s leading organizations across the shipping supply chain, recently announced that Khorgos Gateway Dry Port in Kazakhstan is live with Navis’ industry leading N4 terminal operating system (TOS) in place.

In concert with China’s major “One Belt One Road” initiative, which aims to rebuild trade links across Eurasia to Western Europe, Khorgos is investing in the a high standard of terminal hardware and software under the expansion of this transcontinental trade and infrastructure project.

“This development offers more transparency for supply chain managers and pulling back the lens for terminals, carriers, and shippers,” says Andy Barrons, Navis Sr. Vice President and CMO.

Khorgos Gateway Dry Port is strategically located on the Kazakhstan-Chinese border, along the New Silk Road, and is under the management of DP World, which was chosen to oversee the development and maintenance of this important terminal. The revival of the Silk Road has been a key initiative for Kazakhstan since 1990 and is a major step in advancing transcontinental commerce.

In an interview with SCMR, Barrons noted that the opening of this trade route has strong economic implications, as it not only bolsters land-trade between Europe and Asia, but will also be the site of a new trade-hub city that many are likening to the Jebel Ali Free Trade Zone in Dubai.

“Ultimately, Khorgos is expected to become a central trade destination for manufacturing, transshipping, warehousing, importing, and exporting,” he says.

Importantly, the Dry Port also supplies the local markets and currently serves as a transshipment hub for the cargo arriving from China and destined for Western Europe and CIS nations. Khorgos Gateway expects to close out 2016 with an annual TEU of between 45,000 and 50,000 and expects that number to dramatically increase in 2017, projecting between 175,000 and 200,000 TEUs.

“The development and expansion at Khorgos Gateway represents a major stepping stone for Kazakhstan’s history and future. We are putting all of our focus on making Khorgos the epicenter of this new trade hub that in five years could be on par with cities like Dubai,” says Jayant Lanjewar, Operations Director for Khorgos. “With such ambitious growth goals, it is vital that our operations surpass industry standards and thus, Navis was the clear choice when selecting our TOS, as its solution is the most comprehensive in the industry.”

The implementation of N4 allows Khorgos a smoother and faster exchange of data among terminal functions, including the recording of all TOS services, clear communication of process-oriented operations and efficient planning for higher productivity. The terminal is focused on building the most modern dry port operation possible to meet increasing transshipment volume and is committed to implementing the best software to complement its high-level automation.

“Khorgos’ operations are among the most advanced in the region and serve as a leading example for terminals world-wide that are looking to achieve cost-efficient and consistent automation,” says Guenter Schmidmeir, VP & General Manager, EMEA for Navis.

“The terminal is not only prepared to roll out its fully automated equipment, but has also built an effective software infrastructure to support it. Navis is looking forward to this ongoing partnership with Khorgos as it spearheads the continued growth and development of a new trade gateway between Asia and Europe.”

Supplying Thought: Back to the Future

Christon Valdivieso — Wed, 09 Nov 2016 17:05:01 GMT

Authored By: Christon Valdivieso

Edited By: Afton Knight

Technology has always had a way of working its way into society. From concept to maturity, technology slowly works into our lives as the shiny new thing and then fades into ubiquity. Take the recent examples of blockchain supported crypto-currency and autonomous automobiles. Less than five years ago both were “neat” ideas that only a small subset of the population was focused on. However, in the last year-and-a-half major financial institutions have begun experimenting with blockchain technology. Similarly, companies like Ford and Chevy have realized the imminent change in the auto industry and as a result, have started focusing on autonomous vehicles. The past couple weeks might have marked the next tipping point.

Hyperloop One, a company based upon an idea from Elon Musk to quickly transport people across the country, recently made headlines for its new round of funding and appointment of a new financial executive. Taken by itself, the recent news might not seem like a game changer, but their new direction is a different matter. According to the Wall Street Journal’s Georgia Wells, Hyperloop One has reached an agreement to explore “a hyperloop system to move containers”.

The original goal of Hyperloop One was to transport people from Los Angeles to New York City within 30 minutes, but with a focus on containers Hyperloop One could disrupt the transportation industry. Rail and OTR (over-the-road) operators will find it difficult to sell a seven day Los Angeles to New York transport time when Hyperloop One is offering the same lane for less than 2 hours. In a world where same-day delivery is growing in popularity, Hyperloop One—if successful—is poised to be the railroad industry of the future.

This new transit system could also help smaller cities become tax-free zones as containers can be unloaded in Los Angeles and then transported and stored in places like Oklahoma within hours. The cost will undoubtedly be exorbitant, but the ROI would be significant.

With disruptions like Hyperloop One lurking on the horizon for almost every industry, how can companies stay on the frontline? The answer might be easier than it seems. Professional athletes are faced with a similar situation every year as new recruits come into the system. Yet athletes like Kobe Bryant, Petyon Manning, and Michael Phelps remain at the top of their respective sports.

I have read many articles by millennials suggesting an about-face from current practices to invigorate the company with youth and new ideas. However, we can learn about the folly of this thinking from people like Mike. Mike is a father of two. In his youth he loved playing sports. His favorite was basketball. Although he was not extremely tall he prided himself in the fact that he was once able to dunk. As his kids grew up he was eager to share his passion. One day when his kids were old enough, Mike decided to impress them by showing them that their dad could dunk. Realizing his age, Mike stopped to stretch before attempting the feat remembering the importance of staying limber. Somewhere in the process of showing-off in front of his kids, Mike tore his meniscus—and was not able to dunk the ball.

The critical difference between Mike and the professional athletes is that the athletes continue to train and stay limber. Furthermore, they adjust their training to their body’s needs. The same is true for companies. Hiring a new generation of leaders is not enough to remain at the forefront. Companies that balance innovation and moderation in their culture, workforce, and systems will be more able to see the disruptions on the horizon and react accordingly.

The business landscape constantly reminds us that there is a cost to ignoring market disruptions; but there is also a cost to pivoting to those disruptions too quickly. Thus, I supply this thought: is your company’s process meant to invigorate or innovate?

Five Questions CEOs Should Ask about their Supply Chain

Christon Valdivieso — Tue, 27 Sep 2016 20:50:14 GMT

Authored by: Brian Nolf and Gerhard Plenert, Wipro Consulting Services

Original Post on: Industry Week

Recent news reports about flaws in diverse products—from a leading smartphone application to a highly anticipated aviation product, to the recent “horsegate” affair in Europe—have focused on the large number of suppliers in the chain, potentially creating the impression that the scale of the supply chain might in and of itself have been a contributing factor in these quality control failures.

While there’s no question that the number of suppliers in a supply chain can, in some instances, result in a product flaw, for almost any product there’s far more involved in quality control than just the number of suppliers.

If all the recent media attention to quality control has made you think twice about your own supply chain’s capabilities, it’s worth stepping back to take a fresh look at how it compares to best practices.

Supply chains can be defined as the movement of three critical resources: materials, information and money. A failure in the movement of any of these can lead to a failure of the entire chain, whether there is only one supplier or hundreds. If a payment is late, a part held up, or there’s no data or misleading data available to track a component, the supply chain will fail.

And, to build on this, if you think quality in a supply chain is just having the right materials in the right place at the right time, you’re not thinking broadly enough. Supply chain management must also focus on the quality of the materials, the accuracy and content value in the information shared between supplier and customer, and the accuracy and timeliness in the financial transactions.

As a CEO, you may not be directly responsible for the inner workings of your company’s supply chain. But your supply chain is a huge contributor to the safe and timely delivery of your goods to customers—which means it’s critical to your financial success. It literally pays to be proactive in making sure your supply chain is designed for success, and that means asking some key questions about it:

1. Is quality built into your supply chain, or do inspection and correction occur after the fact?

2. Is supply chain management a strategic senior level position in your organization or is it a part of an operations activity?

3. Is the movement of information and money as critical in your supply chain as the movement of materials? In other words, does it take longer to create paperwork and process payments than it takes to deliver the goods?

4. Do you have a built-in change management process that constantly reviews the elements of your supply chain and looks for opportunities to improve quality and operational efficiency—or do your systems, policies and procedures block improvement?

5. Does your supply chain minimize the amount of touches and the touch time in supply chain transactions, so as to reduce the number of potential failure points?

Supplying Thought: Continuous Education

Christon Valdivieso — Mon, 05 Sep 2016 23:46:42 GMT

Authored By: Christon Valdivieso

Edited By: Afton Knight

Pop Quiz!

Question 1: If a close friend of family member needed a reasonable amount of money to take a class to help them succeed at work, would you lend it to them?

Question 2: If possible, would you start an education savings account for your children?

Question 3: Which would you prefer, a doctor that has completed continuing education over the past decade or one that has not?

Take a look at these three question, is it realistic to believe that the majority of people A) find it reasonable to give money so that others to help them better themselves, and B) are more willing to give money (at least to friends and family) for education? However, according to the National Center for Education Statistics for 2001, only 46% of adults 16 years or older participated in continuing education (college, work-related courses, vocational programs, etc). For the record, this number dropped to 44% in 2005 according to the same organization. Of this population only 27 percent (2005 numbers) participated in work-related courses. Presumably, most people want a doctor who has taken continuing education in the last decade, but why? The human body has not had any significant evolutions in the last 100 years, why does it matter if doctors refresh their education. The answer is simple: because technology and advancements have been made and doctors should know about it. Why then does the general working population not impose this same value on themselves?

Recently I went back to school to obtain my masters for global logistic/supply chain. In one of my classes the professor asked, “…given the data, how many employees do we need to hire to run this example operation?” Having had almost a decade running front line operations I did the math in my head and responded, “Technically you need 19, but to accommodate for holidays, sick time, fatigue, etc. you need about 24 associates.” After 30 minutes of setting up a model and solving it turned out the answer was 23. Later we created another model to help determine a schedule. Imagine if I could have done this when I was running an operation. If I could have provided my leadership team a method for determining employee levels or created a model to develop schedules! I could have saved hours of my time and possibly saved thousands of dollars on recruiting and labor by staffing correctly.

On a simpler level, if you are seeking a new job in 2016 or 2017, when was the last time you wrote a resume? Take a class. Do you know how to effectively use job search tools? Take a class. Are you seeking a promotion but lack the technological skills? Take a class.

Having said all this, I supply this thought: If you could increase your value and/or marketability, would you commit to taking a class in 2017?

https://www.linkedin.com/in/csvaldivieso

How effective is your fiscal year end?

Christon Valdivieso — Tue, 30 Aug 2016 04:40:26 GMT

Authored by: Luis Valdivieso

Now that the end of the U.S. Government’s budgeting fiscal year is almost over, it’s time to ask some difficult questions. Where you successful in gaining any new contracts? Did you meet your goals? The question I feel is the most important of all is did you execute your capture plan? This last one has the implied question of “do you have a capture plan”? As the saying goes, failing to plan is planning to fail.

Most of us understand the basic need for plans. We understand business plans, transition plans, budgets, or marketing plans as essential to being successful. All too often what’s left out is the planning for your sales activities. Depending on the organization that can include which databases to use, sales script, and of course goals. After evaluating sales processes, it makes it easier to create a worthwhile and timely pipeline.

Far too many businesses looking to supply the U.S. Government simply believe they can be successful by waiting for a RFP to be released, and that’s usually too late in the process. To be successful, we need to plan ahead of time. Something you have thought through already that can help you execute throughout the year. That goes as much for a budget, as a sales pipeline. With a plan you can prioritize. With a plan you can hold people accountable. With a plan you can improve processes. Most importantly, with a plan you can have success.

Do you have a plan?

https://www.linkedin.com/in/luis-valdivieso-pmp-267b976

Supply Chain Performance and…Sleep?

Christon Valdivieso — Fri, 26 Aug 2016 23:33:03 GMT

There is a growing body of knowledge that suggests without a full 7-8 hours of sleep, none of us are working to our potential.

By Rosemary Coates

original post on SCMR.com

It’s no surprise that supply chain planning and operations are among the most complex processes in business. This is because everything in supply chains are based on cause-and-effect relationships across multiple supply chain partners and often multiple regions of the world. Add to this, the complexity of optimizing planning, production, logistics and inventories with complicated algorithms, software, and decisions and you can see why the brightest and best performers are often found in company supply chain functions.

To be a top performer takes the right education, experience and brainpower to make the supply chain respond to ever-changing global business conditions. Supply chain personnel must be in tip top mental shape, alert and available to handle the inevitable challenges and emergencies which are part of our daily life. But getting enough exercise, fresh air, healthy food and sleep are often challenges in our busy lives balanced with family and other commitments. Yet all of these ingredients are essential for top performance.

I will be the first to admit that I skipped the gym on many occasions due to my workload and ate less than healthy meals. I lived for years on 4-5 hours of sleep per night (normal in the consulting world) and was proud of my stamina and ability to work 18-hour days. I am notorious for middle-of-the-night Skype calls with China. But there is a growing body of knowledge that suggests without a full 7-8 hours of sleep, none of us are working to our potential. Which makes me wonder what more I could have accomplished over my 35-year career if only I had gotten more sleep.

I just finished reading The Sleep Revolution by Arianna Huffington, CEO of theHuffington Post. She makes a great case for how we have become a culture that treats sleep as wasted time and as optional. But more and more professionals are making the connection between sleep and performance. We already know that truck drivers and airline pilots can be dangerous when they don’t get enough sleep. Collegiate and professional athletes and Olympians are now tracking their sleep patterns against improved performance results. Some athletes have recorded as much as 8-10% improved batting averages, basket shots made and race times when they get eight or more hours of sleep. In addition, academic scores improve and in a corporate setting, decisions are better.

So how is our performance as supply chain professionals affected when we don’t get enough sleep? Are we alert to the changes that affect our supply chains? Are we making the best decisions? Are we as productive as we can be throughout the day?

Are you up for a challenge? Try sleeping 8 hours every night for a week and see for yourself how much better you feel and how much your productivity improves. Just like me, I think you will be quite surprised.

original post on SCMR.com

Supply Thought: Can You Hear Me Now?

Christon Valdivieso — Sat, 13 Aug 2016 06:14:25 GMT

Over the last couple years, consolidation and M&A have dominated headlines. Ocean liners are consolidating to stay competitive, logistics companies are merging as weak demand is straining smaller operators. Sadly, the market has remained skeptic about M&A and profits have largely remained anemic. That’s what makes Verizon’s recent purchases so interesting.

If you missed the $4.4bn acquisition of AOL last year, or the $4.8bn purchase of Yahoo last week, then you probably missed the $2.4bn planned purchase of the cloud based fleet management firm Fleetmatics Corp—along with the purchases of nPhase, Hughes Telematics, and Telogis. What makes the recent moves interesting is that they are not consolidation moves so much as strategic steps toward repositioning. Facing a saturated mobile market and difficult margins to maintain, Verizon—a global communications company—is focused on staying at the forefront of how we communicate. Enter IoT.

For the average consumer, IoT (or the internet of things) provides control of lights, garage doors, and cursory home security systems. For a communication provider this represents a rise in machine to machine (M2M) communications. The GSMA, an international organization tasked with uniting and advancing the mobile communication industry, reports that while, “mobile is at the heart of the new digital future…smartphone adoption is already reaching critical mass in developed markets.” More importantly, “the mobile ecosystem is a major driver of economic progress welfare globally.” Therein lays the problem for companies like Verizon. If mobile is the key to the future and is oversaturated, how can the brand grow? Worldwide data traffic and cellular M2M connections is on pace to increase from 243 mn in 2014 to almost 1 bn by 2020. This growth is expected to originate from several key verticals including utilities, healthcare, commerce (what GSMA calls M-Commerce), and automotive.

Verizon’s planned purchase of Fleetmatics strengthens their position as a partner of traditional automakers, driverless automakers, third-party logistics companies, and various fleet operators. It seems Verizon has learned from companies like Kodak and Blackberry who failed to see the shift in technology and adjust their business scope.

If you’ve watched or read the news the last couple years—not that the news should be trusted (read “Old McDonald”)—it is apparent that the way we do business and the business environment has changed. Verizon has illustrated how using industry specific knowledge and company trends can be used to pivot a business’ strategy. The thought I supply is this: What is your company’s role in the new economy?

Authored by: Christon Valdivieso

Edited by: Afton Knight

#Jointheconversation

Christon Valdivieso — Mon, 08 Aug 2016 05:09:54 GMT

With all the news about logistics making, or breaking, companies don't miss this PDM.

OnTrac Senior Industrial Engineering Manager Mike Harris has 14 years of career experience in the transportation and logistics industry, which includes creating, managing, and improving Standard Operational Procedures (SOP.) A West Virginia University alumnus, Mike began a career with FedEx Ground following college and later returned to school in conjunction with his career to obtain his Masters of Business Administration from Mount St. Mary’s University. Mike strongly believes in continuous education and professional development. He has a proven track record of improving overall performance and employee productivity, as well as developing and leading teams through community service and peer-to-peer mentoring groups.

Global Retail Supply Chains Remain Healthy

Christon Valdivieso — Sun, 07 Aug 2016 18:37:15 GMT

By Patrick Burnson

Original post on SCMR.com

The official launch of the ASEAN Economic Community (AEC) has created a $2.6 trillion market with a population of more than 622 million – and although implementation will be a long process – it represents an important milestone, say analysts with A.T. Kearney in a recent report.

China, one of the most dynamic retail markets in the world, is ranked as the top country in the 2016 Global Retail Development Index (GRDI), titled “Global Retail Expansion at a Crossroads.” India’s high market potential, fast growth, improved regulatory environment, and ease of doing business pulled it up to second in the rankings.

The 2016 GRDI marks the 15th annual edition of the report. During the past 15 years, developing markets have seen tremendous growth both in terms of population, which has grown 21 percent to 6.2 billion, and in terms of retail sales, which have increased 350 percent in developing countries and now represent more than half of total global retail sales.

The GRDI ranks the top 30 developing countries for retail investment worldwide. The Index analyzes 25 macroeconomic and retail-specific variables to help retailers devise successful global strategies to identify emerging market investment opportunities. The study is unique in that it not only identifies the markets that are most attractive today, but also those that offer future potential.

In the unlikely event that the Trans-Pacific Partnership (TPP) will be ratified, analysts say it could boost GDP in several Asian countries, including Vietnam (#11) and Malaysia (#3).

Conspicuous by its TPP absence has been China, of course. That nation was deliberately left out of the agreement to counter its dominance in the region. But does that have anyone worried? Certainly not Ben-Shabat, A.T. Kearney partner and co-author of the study.

“Despite China’s slowing economic growth, the GRDI’s top-ranked country remains one of the most attractive global retail markets,” he says. “The economy is gradually shifting from an investment-driven model to one driven by consumer consumption. The growing middle class coupled with strong demand from inland and lower-tier cities and the loosening of the one-child policy will continue to drive growth over the next 10 years.”

Come Out Swinging
Elsewhere in the world the financial volatility due to the aftermath of the Brexit vote may have pushed some spending from the end of June into July, especially for big ticket items and luxury spending, says HS Global Insight Economist Chris Christopher. But he contends that real consumer spending growth is likely to be slightly above 3.0 percent in the third quarter.

“Consumers came back into action in the second quarter after being cautious in the first three months of the year due to volatility in the equity markets,” he says. “Americans were shaken up by the poor performance of the stock market in the first quarter, sending the saving rate from 6.2 percent in March to 5.3 percent in June.”

But in April, consumers “came out swinging,” followed by a relatively good showing in May and then again in June. Real consumer spending accelerated to a 4.2 percent growth pace in the second quarter from a 1.6 percent reading in the first quarter, reflecting sizable gains across the board. Second quarter real GDP advanced 1.2 percent; it is obvious that consumers are doing almost all of the heavy lifting in the American economy.

“Consumer spending growth will moderate in the second half of this year, but will be supported by gains in real disposable income, jobs added to the economy, increasing housing asset values, and modest consumer price inflation,” adds Christopher.

Political Uncertainty
With increases in consumer spending expected to remain solid during the remainder of the year, the National Retail Federation today said retail sales for 2016 are now expected to grow 3.4 percent over last year rather than the 3.1 percent forecast earlier.

Online and other non-store sales, which are included in the overall figure, are expected to increase 7-10 percent year-over-year rather than the 6-9 percent forecast earlier.

“Economic indicators are showing positive trends for retail,” says NRF President and CEO Matthew Shay, citing the improved housing market, job growth, higher wages and other factors that have boosted consumer spending.

“Challenges remain, with some greater than others depending on the retail category, but consumer confidence remains high and we believe that retail customers will continue the positive trends we have seen in the first two quarters of the year,” he adds.

Retail sales in the first half of 2016 performed at a solid pace, growing close to 4 percent on a year-over-year basis, according to NRF calculations, which exclude automobiles, gasoline stations and restaurants. NRF expects gross domestic product to grow between 1.9 and 2.4 percent.

“There are many factors that could prove to be hurdles but our overall outlook is optimistic,” observes NRF Chief Economist Jack Kleinhenz. “Uncertainty surrounding the presidential election could make consumers more cautious, and the combination of a rising dollar and global slowdown have impacted exports, but other factors like favorable weather patterns that will help move winter merchandise support our outlook.”

Meanwhile, the nation’s supply chain managers are watching economic developments closely, and we can bet that the NRF and will evaluate any changes to its forecast as necessary. If needed, the next update will come as part of the retail association’s annual holiday predictions in October.

Next PDM - August 18, 2016

Kerrell Dunsmore — Sat, 06 Aug 2016 22:45:33 GMT

Supplying Thought: Hablamos Idiomas Diferentes (We Speak Different Languages).

Christon Valdivieso — Tue, 02 Aug 2016 04:17:51 GMT

Authored By: Christon Valdivieso

Edited By: Afton Knight

You could tell they do not understand what I am talking about,” Ray, a recent graduate student, said as he summed up his workplace frustrations. Like many professionals, Ray works at a company that promotes cross-functional alignment. His day consists of lots of meeting with lots of people from different functions collaborating to streamline and improve a given set of processes. Many students today, Ray included, learn all about how cross-functional teamwork is critical to alignment and success. What educators and change managers forget is that these groups all speak different languages.

Whether the company has recently changed leadership, IT systems, or just a report type, the language inside a company is frequently evolving. Last week’s TPS report is now the CAR report for instance; and, just like a resume with industry-specific jargon on it, most of it is incomprehensible to other departments.

Historically, kings and emperors set the national language and religion to ensure commonality and peace amongst a nation. But who sets the language at the modern day enterprise?

Emily, a replenishment professional, said that she spent the first few weeks after starting her job focusing on using the “right” words for her actions but during her first meeting with buyers received blank stares. In order to increase collaboration and break down silos in the workplace, it is important to be aware of these communication gaps and focus on gaining understanding. One way to do this is by paying attention to how other groups talk during meetings and try to find out the synonyms for words you are familiar with.

Sadly, direction from most change managers and industry leaders focus on performance, vision, and information sharing to build trust. Only when dealing with IT integration does language uniformity come into play. However, if people do not understand each other are cross-functional teams truly productive? The truth is, not understanding jargon places a communication and informational gap that is detrimental to the team. Understanding what each member does and how allows each member to add more value during every interaction. Knowing other functions ensures members will understand the needs of teammates and can thus be better prepared which makes the entire team more productive.

What Emily and Ray experienced is not unique. While cross training and job shadowing is often effective in ameliorating the confusion it is not the only solution. It takes a commitment from leadership and the associates to bridge language gaps and unify cross-functional teams. Thus I supply this thought: What language does your company speak?

Supplying Thought: Talent Supply Chain Management

Christon Valdivieso — Thu, 28 Jul 2016 01:41:41 GMT

Authored By: Christon Valdivieso

Edited By: Afton Knight

Companies are finding an increasingly complicated environment in today’s recruitment world. PwC’s19^th Global CEO Survey illustrates that 93% of CEOs recognize the importance of developing new talent acquisition strategies. Unfortunately, 61% of respondents admitted they haven’t taken the necessary first steps. Today, many companies have moved toward computer assisted screening programs that—in their efforts to sift through hundreds and thousands of applicants—often block good candidates. At the University of Tennessee there is a different approach taking root.

SCMR contributor and director of marketing at University of Tennessee, Dianne Marshall, reports on a concept University of Tennessee is promoting where companies get to know students and develop relationships prior to hiring. “Developing early relationships with students…helps companies identify the diamonds in the rough that other companies miss,” Marshall reports. A Pepsi recruiter describes the value of relationship building even more succinctly, “there is a lot of information about undergraduates that they aren’t capable of conveying in a resume”

In the previous system often recruiters found that while coordinating second interviews recruits, “were already entertaining another offer.” Under the new system, besides allowing companies to better understand recruits, engaged companies become the “first booth they go and talk to,” another Pepsi recruiter explains. This is the essence of the talent supply chain. The goal is more than finding potential candidates. The talent supply chain’s goal is to create a pipeline of engaged, eager, and qualified star performers. Just as vendor relationships are better with those that are engaged and aligned to a company’s business strategy, so are associates.

This is not to say that college recruiting is the only avenue for recruiting. Recruiters, including leadership at every level, are challenged to use every interaction as a recruiting tool. Everyday companies engage with internal and external customers through social media, e-commerce, and open doors. Those relationships can drive new business as well as new associates.

As Dianne Marshall indicates, this process is often a four-year commitment. For small business owners this may seem unrealistic. If done properly, time can be spent finding new associates and leading the company’s direction instead of accepting unengaged associates because they fill an open position. While this practice of talent supply chain management, in general, seems time intensive I supply this thought: How much business are you loosing due to a re-active talent supply chain?

Supplying Thought: Old McDonald Had A...Supply Chain?

Christon Valdivieso — Tue, 26 Jul 2016 05:49:13 GMT

Authored By: Christon Valdivieso

Edited By: Afton Knight

I was warned when we had our first child that life would change. While I did not doubt my friends and family, I suppose I did not fully appreciate them until last week. Last week, while reading another article about e-commerce (e-comm), I found myself singing ‘Old McDonald’ in my head. Sure ‘Old McDonald’ teaches children about animals and their corresponding sounds, but the facts about e-comm seem to be ‘here’, ‘there’, and ‘everywhere’. What is worse, far too many people in the workforce accept what they hear as fact. As managers, making the leap to leaders involves building the critical thinking muscle.

In today’s supply chain the major hurdle is a profitable e-comm wing. To create an e-comm solution businesses need to know what is really going on and how the supply chain can adjust? The problem, as indicated above, is that “research” is inconsistent and often misleading. For instance, The Philadelphia Business Journal recently reported on a study that found only 26% of businesses are using their websites for e-comm. From a consumer trend point of view a WWD article indicated “96 percent of Americans are shopping online…allocating 36% of their shopping budgets to e-commerce”. Taking these studies as fact, most companies would call a meeting to discuss how they are going to close the gap in their e-comm presence and capitalize on a booming field.

Unfortunately, these facts are misleading. First, e-comm is more than a “Pay Here” button on the website. E-comm is the digitalization of all the various steps of business including online catalogues, EDI communications, forecast and demand transmitting, and POS data sharing as well as online purchasing. The online purchasing and corresponding delivery service, e-sales, is a small part of the total e-commerce ecosystem. Additionally, the data on e-sales habits mentioned above was sponsored by an e-comm platform provider and directly conflicts a timetrade article that states 85% of consumers prefer to shop at brick-and-mortar stores. When it comes to e-comm data, businesses are exposed to a myriad competing information. Namely, while most conversations and articles headline e-comm, they really mean e-sales.

Supply chain leaders can create strategies despite inconsistent information through critical thinking and data-driven information. Critical thinking is imperative in creating a robust strategy that mitigates risk and is profitable. Throwing together an e-sales strategy to be “competitive” without thinking through the repercussions on logistics and distribution channels has proven disastrous for companies. While investments into logistics solutions have ballooned recently, less than 20% of major retailers are profitably executing Omni-channel supply chains. Thinking critically requires an ability to sift through the chaos to find the truth—relative to your business.

Nike, for instance, saw a 50% increase in online sales in 2016 and the consumer packaged goods (CPG) industry saw a 42% increase in 2015. Using actual data allows Nike and CPG companies to look at their supply chain with an honest and critical microscope. One Northern California wholesaler was recently purchased by a team that faced this issue. The former owners were eager to sell product through their online catalogue and online retail marketplaces. What the new owners found, was that 40% of the products offered online sold for a loss. What do these three scenarios have in common? Each example required companies to look at what is actually happening to their business. Instead of creating solutions based on information pulled from outside sources, they looked inward. For many companies this could involve hiring, contracting, or reassigning a data analyst to create data collection protocols and sift through large sums of data. Regardless of how relevant data—which can then be supported by outside articles and research—is collected, it is critical to creating a sustainable strategy.

Assuming your company has delineated the difference between e-sales and e-commerce, I supply this thought: Does your strategy resemble a nursery rhyme by following headlines or does it consist of a data-driven, well-supported plan of attack?

Are You Entertained?!

Christon Valdivieso — Mon, 11 Jul 2016 18:24:01 GMT

I had to take a minute and tell everyone why I am excited about the second half of the year for APICS Phoenix. If you've looked at the schedule for the past year you will no doubt notice that our events were lacking. This fiscal year—starting in July—we already have five dynamic events booked. Keep an eye out for more details and remember to block off your calendars for the third Thursday of every month.

OnTrac's Mike Harris will be our speaker in August. I met Mike on a site tour a few months back. Not only does he have an approachable personality, he is very knowledgeable. Most of us are dealing with a transition from intuition based decisions to data driven decision making. Mike was open about what that meant for his team and gave my group a great view of the OnTrac world. Later in the year we have two partner events with other organizations in health care and quality management. These will provide a great opportunity to network and hear business solutions from a different perspective. Be sure to keep an eye on the calendar for what's coming up and when to register.

Also, APICS Phoenix is actively on Twitter (@APICSPhoenix)! APICS Phoenix is driven to be, "the leading marketplace provider of knowledge and education for operations and supply chain management" and @APICSPhoenix is an extension of that goal. Highlighting industry trends, news, and thought, make sure you are following @APICSPhoenx to stay up-to-date with the supply chain industry.

Supplying Thought: Inventory Management Part 2

Christon Valdivieso — Mon, 20 Jun 2016 21:47:24 GMT

Authored By: Christon Valdivieso

Edited By: Afton Knight

As a proponent of challenging what we “know” to be true, last year I wrote about continuing education. Inevitably, I recently found myself at a loss for words when a professor challenged me. I mentioned the importance of forecasting and how forecasting error often leads to poor inventory management. The professor interrupted and began to tear down the notion of forecasting. I could not believe it. How could a professor not support forecasting? Considering the role of the supply chain, isn’t the forecast instrumental? The point our professor was challenging us to consider is while most companies use forecasting to align cross functional strategies, when it comes to inventory management, forecasting is part of a bigger issue.

In Part 1 I talked about strategy and alignment; but, let’s not be naïve and pretend business is neat and simple. Tesla, for instance, had a strategic vision to generate cash flow in 2016; however, when orders for the Model 3 surged they pivoted to a time-to-market strategy. How can we as supply chain managers align inventory practices with business strategies that keep changing? We start by looking at the problems that distract us.

Looking online, most articles about inventory management problems talk about the Big Five Distractions (Big Five):

Bad forecasting
Bad data
Communication
Personnel
Software

The problem with the Big Five is that they place zero ownership on the inventory manager; and, that is the main problem with forecasting. Telling your boss, you cannot do your job because other people were wrong will not help you keep your job. The fact is, forecasting is almost always wrong. And If forecasting is always wrong, why do we blame others when inventory—aligned with the forecast—is off?

This is what my professor was implying. Issues with forecasting and bad systems or data will always exist. Leaders have to take these issues into account and create solutions. As competition increases and profits get squeezed supply chain strategy is the next frontier for growing profitability. Thus, when it comes to inventory management, leaders have to be agile and creative.

The inventory manager cannot hide behind systems, forecast, or people. In my experience there are two main causes of inventory issues: communication and poor decision making. I focus primarily on the latter—decision making.

Poor decision making is generally a product of a lack of focus leading to costly or short sighted initiatives. With numerous supply chains and shifting business strategies loosing focus is easy, but it is not permanent. Take Target, after years of being a “fast follower” and coming in a distant third, Target recently decided to focus their efforts on an improved supply chain. This entailed re-coding its e-commerce platform to improve visibility and capacity. They also cracked down on vendors to increase supply chain reliability. Similarly, Ralph Lauren recently took steps to improve its profitability through reduced store foot prints and shipments.

Each action is a practical step taken by the supply chain team to allow them to better react to demand, but first they had to accept ownership of the problem. Not only do the above instances illustrate the need to align the supply chain strategy with the business, they also show what can happen when we push beyond the Big Five Distractions. With all this in mind, I supply this thought: Are you or your forecast responsible for inventory decisions?

June Speaker

Christon Valdivieso — Fri, 27 May 2016 23:07:32 GMT

My good friend Taimur Matin has agreed to speak with us for our June Professional Development Meeting (PDM). He grew up in Pakistan and worked in Dubai for a number of years and has an international perspective that I think we all should be exposed to. The June PDM will be small so sign up early. Check out a brief bio on Taimur below:

Taimur Matin has spent the last 5 years working with APL in Dubai, UAE on international trade. Specializing in containerization and ocean freight, Taimur, has unique knowledge dealing with customs, INCOTERMS, commodities, and international relations. Taimur took a break for international shipping to complete his Master of Science in Global Logistics/Supply Chain from Arizona State University.

Taimur will give his presentation on international trade and commodities including process for international trade, how companies can ensure profitability and reduce risk, and how the commodities market effects both the macro and local economy. Join us for a great discussion on June 16^th as we take a deeper look into what it takes to successfully manage an international supply chain.

Supplying Thought: Inventory Management Pt. 1

Christon Valdivieso — Mon, 16 May 2016 05:11:00 GMT

Authored By: Christon Valdivieso

Edited By: Afton Knight

During my professional career, I have had the opportunity to work with various different inventory management systems and strategies and it is likely you have or will too. The primary focus of an inventory manager seems simple on paper: control raw materials, work-in-progress (WIP), and finished goods. The complexity arises from understanding how and when to balance lean (pull) strategies against slack (push) strategies.

Everyone in their various positions that you deal with will undoubtedly have the “correct” answer for you, but as Deming[i] tells us, “knowledge depends on theory” and “information is not knowledge.” Thus, it is important to understand how (and why) one should arrive at a certain inventory management solution.

Lean strategies

When I first started as an inventory manager, I had no idea what I was doing. Demand was seasonal, variable, and emotionally driven. Furthermore, my inventory sustained a quick rate of obsolescence. To make matters worse I had limited data to support strategic decisions and POS data was unreliable and rarely mirrored data from the floor. Needless to say the inventory management process was time consuming and arduous. I adapted a Just-In-Time (JIT) strategy for my category A inventory items and maintained low safety stock to reduce holding and obsolescence costs. Substitutes were easily sold during periods of stock outs, making stock out costs low. Demand for category B and C goods were mainly dependent, thus correct A item planning captured the majority of issues.

Slack Strategies

When I moved to the next company, the pattern was different and I had a steep learning curve. Demand was less seasonal yet significantly more variable. Stock out costs were very high and I had a rude awakening when I attempted to implement my lean strategies of JIT and low safety stock levels. I had to increase my safety stock levels, use my sales data to determine peak periods to ensure coverage and high customer service levels (CSL), and train my team to ensure product availability. Thankfully, we had a fully integrated system that collected accurate sales data in real time and increased inventory visibility.

Even though I adapted my strategies, I still did not understand the theory behind my decisions. My actions were reactionary at best. So what do you do when you decide it is time to be proactive?

The simple answer is to seek alignment. The supply chain and its practices must be aligned with the business strategy. A Quality Digest[ii] article recently pointed out that a common mistake is maintaining a narrow focus on performance (more on this in Part 3), but I would take it further to say there is too narrow a focus on the supply chain. Remember:

“optimization of the parts does not optimize the whole.” -Deming

Take a look at your company and the market space it operates in. Where is its success derived? Consider these elements and how they relate to your company.

· Does your company focus on being responsive or having inventory available?

· What are your company’s CSL KPIs?

· What is your voice of the customer (VOC) research telling you is important from your customer’s prospective?

There are various other questions, but these will capture a large portion of your inventory design needs.

Responsive or Available?

Like it or not Amazon is changing the game for everyone, but not always in the same way. For many retail and B2C companies, availability is the name of the game. If your supply chain cannot have product in the right place at the right time, you lose a customer. Do it twice and you’ve lost that customer, and some of their friends, for life. For some companies, mainly B2B, the emphasis is on delivering product on schedule after receiving an order. Understanding which one of these you are is your first step. Yes, this one is simple but common knowledge is not always common. Additionally, many companies are actually responsive but use safety stock to sell themselves as available. How your company behaves and how they see themselves will often lead to frustration as you plan your lean/slack strategies.

CSL KPIs

If this section’s heading does not make sense to you, it is important to do some research because the concept is integral to monitoring your supply chain’s alignment strategy. Customer Service Levels (CSLs) and how they are measured (KPIs) will drive structure. CSL refers to how often customers receive complete, accurate, and on time order deliveries. This is the part that causes rush orders, upset salespeople, and “unpleasant” emails. While most companies have some way of interpreting their CSL, they will not always have a clear measurement of it. If there is a mismatch in your responsive/available value proposition, you will be faced with an unclear and misunderstood CSL. Your CSL (measured in percent orders) will be a balance between the cost of not getting your customers’ orders correct and the cost to do so every time. While it can be cost prohibitive to seek a 100% CSL, in instances like successfully landing a plane, it is impossible not to.

VOC

The voice of the customer—their needs, wants, and feedback—is so critical it is a wonder how it is missed. I have seen sales people so focused on what they need to close a deal that they miss what the customer is actually saying. Even more often, I have seen salespeople make promises the operations team cannot deliver (or did not know they needed to deliver). Therefore, it is integral that processes and relationships are in place to ensure that the VOC is communicated with the inventory manager. Having a supply chain that is integrates and aligns departments throughout the company will begin to break down barriers and open up communication between necessary parties. Part 3 will have more on the customer relationship management (CRM) processes that will facilitate VOC communication.

Understanding the VOC, CSL, and nature of your company are the keys to understanding the theory behind your lean/slack inventory decisions. If you have not yet taken a minute to look at these, I supply this thought: Is your inventory management strategy reactive or proactive?

[i] http://www.maaw.info/DemingExhibit.htm

[ii] http://www.qualitydigest.com/inside/quality-insider-article/ten-common-inventory-mistakes-and-how-avoid-them.html

Supplying Thought: The Gig Economy Meets TSCM

Christon Valdivieso — Mon, 02 May 2016 18:20:23 GMT

Authored By: Christon Valdivieso

Edited By: Afton Knight

If you have not heard about the gig economy, welcome to the 21^st century. I have heard it used interchangeable with the “Uber Economy” but I will not give Uber all the credit. In fact, according to a NY Times article[i]the gig economy has been building for some time. The shift to less traditional employment (including freelance, contract labor, and temping) saw a spike during the 2009 downturn. Today it is not uncommon to find an Uber driver that has a house or room on Airbnb. As Amazon continuous its quest for world domination (or at least a sustainable logistics program), we will no doubt see more resumes with ‘Amazon Delivery Consultant’. In the past, HR managers have frowned about multiple jobs on resumes, but as the Gig Economy continues, multiple jobs during short periods of time will be the norm.

If you haven’t heard of Talent Supply Chain Management (TSCM)[ii]…welcome to 2016. TSCM focuses on treating talent pipelines like the supply of product. Just as companies have yearly strategic planning meeting involving suppliers, they should have strategic meetings involving talent. Consider how ludicrous it would be for a company to plan its marketing or distribution goals after a need presented itself. Yet this is what most companies do with talent.

This is where the two concepts intersect. What most companies are headed towards is a mixture of traditional full time employment and flex labor. These flex labor roles represent up to 30% of projected labor which means there is a huge potential for those who want to be their own boss. Similarly, there is a huge potential for people looking to gain exposure and experience in various facets of a company. The key will be creating value through quality versus quantity “gigs”.

Have a need for on call fulfillment/customer service/delivery drivers? Why not make the on call lead a temporary or flex position too? Generally, front line hourly associate roles are dissected to create various FTE (Full Time Equivalent) needs. Unfortunately, this creates a knowledge and talent utilization gap. Many associates are not afforded the opportunity to move up due to long term full timers that are already in line for a select few leadership roles. Most companies combat this by aggressively growing the company’s footprint. Making the leadership roles flexible (i.e. part-time, contract, or rotational) allows companies to add the societal benefit of employing and training more locals while allowing them to interview and select proven top performers.

Whether your role in the supply chain handles distribution, logistics, procurement, or any number of roles along the value chain this gig workforce cannot be ignored. At the same time, it has to be managed correctly. A major element of the gig economy is the sharing of ideas and information. Adopting a turn-and-burn mentality will tarnish your company’s reputation. Aligning your gig workforce with values that are shared between your company and workers will further uphold the brand.

With that in mind I supply this thought: What is your value proposition, more importantly, how can you leverage the Gig Economy to meet your professional goals?

[i] Scheiber, Noam; “Growth in the ‘Gig Economy’ Fuels Work Force Anxieties”; The New York Times; online; http://www.nytimes.com/2015/07/13/business/rising-economic-insecurity-tied-to-decades-long-trend-in-employment-practices.html?_r=2

[ii] Carroll, Teresa; Kelly Outsourcing & Consulting Group; online; http://www.kellyocg.com/uploadedFiles/7-KellyOCG/2-Knowledge/Talent_Supply_Chain/Talent_Supply_Chain_Management_Readiness.pdf

Supplying Thought: Resilience

Christon Valdivieso — Wed, 20 Apr 2016 23:30:54 GMT

Authored By: Christon Valdivieso

Edited By: Afton Knight

The APICS Dictionary defines supply chain resilience as “the ability of a supply chain to anticipate…avoid or mitigate, and/or recover from disruptions to supply chain functionality”. Supply chain disruptions are more than just the daily annoyances from a late truck or an interrupted production schedule. According to new research, supply chain disruptions cost companies millions of dollars every year[i]. A single disruption can cost anywhere from US$100,000 to US$1 million[ii] and most of them are preventable! The two major tools for creating resilience are redundancy and flexibility. I should note here that I prefer the concept of agility (mental nimbleness) to flexibility (mental yoga) as agility implies the ability to see and maneuver into different ways to achieve success. Flexibility, on the other hand, implies an ability to fit success into a changing picture. Think of it like this: a flexible supply chain manager might keep their staff late to finish a project whereas an agile supply chain manager cuts non-essential associates incurring less OT to finish the task. While a flexible leader argues the glass is half full, the agile leader puts the same amount of water into a smaller glass and fills it up. For this discussion let’s focus on redundancy (i.e. repetition or having multiple of the same thing).

Redundancy is a great way to protect your operation from disruptions. The most common types of redundancy are safety stock and utilizing multiple suppliers. Given that the U.S. Census Bureau[iii] reports a yearly growth of retail inventories of 5.5% (1.6% overall) for November 15, I would propose that most supply chain managers understand the need for safety stock. They will, no doubt, come under fire from their “lean” minded senior leadership, but will supply chains be reactive and cut safety stock or find an appropriate balance? Also, what about multiple suppliers?

Most businesses achieve scale by leveraging larger business needs for lower costs. Thus, a reduction in suppliers is useful; however, there is a risk of increased disruption susceptibility (I would like to note that risk management is a key factor in all this as well, but I will save that discussion for another day). Recently, Toyota revealed[iv] a shutdown of its Japan operations for a week due to a supplier-related issue. Strikes at the port of LA/Long Beach and New York[v] have impacted almost every US business. Many companies decided to utilize the New York port after the LA strike, but New York’s recent strike illustrates the need to innovate multiple supply chain solutions. Is air freight a potential secondary option? Can a 3PL help open your supply chain? Is there a free app for improved inventory management? Can the top two bids be utilized to reduce procurement risks? Most of these question shouldn’t be new, but the answers might be.

And so, I supply this thought: How resilient is your supply chain and has it been tested?

[i] Hanna, Sheree; “Research reveals supply chain disruption cost UK manufacturers 58 million”; Supply Chain Digital; Online; http://www.supplychaindigital.com/procurement/32/Research-Reveals-Supply-Chain-Disruption-Cost-UK-Manufacturers-58-million

[ii] Christ, Andrea; “Costly Supply Chain Disruptions”; insurancenewsnet.com; online; http://insurancenewsnet.com/oarticle/COSTLY-SUPPLY-CHAIN-DISRUPTIONS-a-516674

[iii] US Census Bureau: http://www.census.gov/mtis/www/data/pdf/mtis_current.pdf

[iv]Horie, Masatugu; “Toyota Supplier Behind Production Shutdown Pulls Forecasts”; Bloomberg; online; http://www.bloomberg.com/news/articles/2016-02-03/toyota-supplier-behind-production-shutdown-pulls-profit-forecast

[v] Online; “NRF: Strikes at East, Gulf Coast Ports Not the Way to go”; World Maritime News; https://worldmaritimenews.com/archives/182169/nrf-strikes-at-east-gulf-coast-ports-not-the-way-to-go/

Principles Workshop

Luke Laliberte — Wed, 30 Dec 2015 05:30:13 GMT

The Phoenix APICS chapter completed a custom Principles workshop at Interface Products in Scottsdale, Arizona. These workshops included operations and materials planning, MRP and inventory management. These workshops were 8 sessions (3 hours in duration) which included education, training and practical applications. The following is a testimonial to the effectiveness of these workshops.

This is feedback from Scott Dunne our host at Interface Products.

The Principles Workshops at Interface provided a great deal of relevant background and detail on MRP terms and how the computer "thinks". Our people saw meaning in the types of production concepts and how they may relate to Interface's operations. People who have worked here for years finally understood the mechanics behind the MRP messages they work on every day.

Indeed, having the class on-site provided a sense of team and many insights were shared on how things work and WHY...

Why You Should Be Using Twitter and How to Get Started

Wed, 28 May 2014 03:16:56 GMT

Take it from me, I know that you hear a lot of overblown hype about social media and hypothetical futures revolving around social media that never take a hold. And I know that if you are a working professional, you are probably on LinkedIn, and maybe on facebook, and maybe one or two other platforms, and you also may feel that that is quite enough as it is. So you may be wary of a social media nut like me telling you that you need yet another profile. But stick with me as I explain the required effort is minimal and the benefits are great.

Job search

When looking for a new job, there are many different approaches and tactics. Many tactics are important no matter what your overarching job search strategy is, like getting your LinkedIn profile updated and looking good and sharpening your resume. But Twitter provides a unique way to identify potential jobs which is one of the most tedious aspects of job search. Job boards are limited to the specific companies, recruiters and managers that use them. Thus, to see every job, one would have to be on every job board. Twitter, on the other hand, can be used as a universal search tool to see postings that you might not see in the job boards that you use. So I'm not advocating to use Twitter as your only job search tool, or even your primary one, but in conjunction with traditional job boards. There are certain Twitter users that are dedicated to propagating job postings in a specific field, like supply chain management. When you find such an accounts that fit your specific field and/or locale, follow them so that their posts will show up on your home feed. Then you can scan your home feed when you have a moment and get immediate results. Here's how to get started: once you have created your account, use the Twitter search bar and type this in to see supply chain jobs:

#supplychain #job

Note that this brings up different results than using Google to search for the same term; the search algorithms are very different. The results on Twitter will point you to a multitude of job postings and accounts that you may want to follow. You can also try variations of this, like for #operationsmanagement or for #logistics. Depending on if you are casually looking for jobs or are more seriously in need of a new job, you may want to consider setting up an account with a social media manager like Hootsuite. With Hootsuite and similar social media managers, you can set up streams that contain the searches that you find work best for you. That way you can scan multiple feeds very quickly.

News

There are many places to get news, but I find that Twitter is a great way to get the stories I'm most interested in. And unlike subscribing to a specific website or daily email, Twitter news stories show up as they are posted and each post could be from a different source in rapid succession. Much like using the search function for job search, you can also use specific searches to get news about specific topics of interest. When you find accounts that seem to have a lot of valuable posts, you can then follow them.

Deals and Opportunities

There are certain deals and opportunities that are only offered on social media platforms, so you have to be watchful of the companies, organizations, celebrities and brands that you admire or strive to interact with. For example, I had the chance to go behind-the-scenes for a SpaceX rocket launch with NASA last year, primarily because I saw a NASA post about on Twitter and applied; I was selected because I am engaged on social media and have my own blog, but I would have never even known of that opportunity had I not been following NASA and reading posts on Twitter that fateful day. So many of the people I met are now great contacts to follow on facebook and Twitter, and keep me updated in the world of space travel, which I was barely an observer of before that trip. It was an amazing opportunity, and it is only open to people who tweet.

Getting Help

There are people, especially celebrities or experts in very niche fields of interest, who cannot be reached easily by phone or email. But they can be found tweeting, and will respond to tweets they are mentioned in. Maybe not every tweet, but tweets they find worthy. I was trying to help a startup launch in the arena of medical marijuana vapors, and in brainstorming marketing campaign ideas, someone mentioned how it would just be fantastic if Cheech and Chong would promote it. One tweet from them would make a world of difference for this startup! So I took a chance, and wrote a tweet briefly explaining what we were doing, and mentioned their Twitter handle. They didn't respond right away, but one day I checked my alerts and found that they were FOLLOWING me! They don't follow many people, so for them to follow me was a huge achievement, and I knew I'd be able to use that to my advantage when the time was right. But you don't always have to target a specific person; you can also ask for help on a specific brand of product or general questions. People who are searching for that topic will see your tweet and lend you their 140-characters of advice. I've gotten advice on how to get good sound while shooting basic video on a standard digital camera, what mics are the best to use, what software to edit it with, etc. I also had one person refer me to someone else who would actually meet up with me and show me how to use the laser cutter at a public workspace, all arranged through Twitter.

Seeing What Others Don't

Twitter isn't just about blasting today's news over and over again; it's also very personal. People tweet about what they're up to, and if those people happen to be doing interesting things, then you get to be a part of that journey. I like to follow the astronauts at the International Space Station; some of them post pictures of the supply rockets as the approach, with a part of Earth in the background, or the sun setting over an exotic part of the world and the light catches it just so, or selfies of them inside the return vehicle as they prepare for their descent back to Earth. You just don't see that stuff on the front page of Yahoo! or your favorite news journal, and every day, sometimes every hour, is something new!

Getting Recognized

When I went to Disneyland for the first time since I was a little girl, I couldn't help but tweet about it. And Disneyland tweeted back! Who doesn't want to be personally welcomed by such a big, public entity? It was a simple, warm greeting, but it added to the magic of being there for the first time as an adult, and it kind of made me feel like a kid again. Companies are trying to engage their customers all the time, both to fix what has gone wrong and to celebrate a happy customer. It's a great way to get problems fixed, or at least acknowledged, which is what a lot of us want when something goes wrong. It's also fun when a company thanks you or gives you kudos for something you said or achieved.

Learning to be Concise

I take this one to heart, my friends! I have known for a very long time that I am a wordy writer. And for that reason, I resisted Twitter for a long time. But there really truly is an art to being concise - by limiting us to 140 characters, a new language has evolved which is more efficient and less clunky than ever before. In fact, I recommend using less than the 140 characters, because I want my people to RT my posts, or re-tweet in long hand, and they need so many characters to give me credit or they will have to cut something out. There is a time and place for articles, and there is a time and place for headlines, quick thoughts, shout outs, and short blurbs. Having to post on Twitter regularly means honing the ability to get to the point, be exciting, and entice readers to click. That is truly a greater art than writing a novel, in my opinion.

Find Out What's Going on Right Now at This Event

When people post updates about a specific event as its happening, that is known as Live Tweeting. If you're attending, say, the APICS 2014 International Conference, or some other large event with like-minded people, there are bound to be live tweeters. By following an event's hashtag, those live tweeters become secondary eyes and ears to point you to the most interesting presentations, tours, quotes, speakers, etc.

Let's Get Started

Hopefully by now I have convinced you that it is worthwhile to (a) create (yet another) account, (b) invest time in researching and using Twitter as a tool, and (c) commit to using it regularly to enhance your job search, news awareness, know-how, or personal experience. I never want to leave anyone hanging with a compelling reason to do something but no first steps. Here's my recommendation to get started:

(1) Go to Twitter.com and create a user name that is meaningful to you. This is called your Twitter "handle".

(2) Folllow the steps Twitter mandates of you (yes, they too want your experience to be of value, so they kind of force feed you into certain steps).

(3) When you've completed the Twitter mandated steps, look for some or all of these Twitter handles and follow them if you like them:

@BusinessInsider

@guykawasaki

@APICSPhoenix

@Phoenixtoday

@CNN

@Cmdr_Hadfield

@Inc

@Cerasis

@FastCompany

(4) Add a profile picture - it doesn't have to be super professional, but don't make it too lame either. Just something that says, this is me, I'm on Twitter now.

(5) Write your first tweet. It can be your favorite quote (if its not too long), or a picture of something interesting you saw last week, or a link to an interesting article or video that you want to share - the important thing is to add your own spin on it.

(6) Post something new every day for about a week or two. When you see something you like in your Home Feed, retweet it or quote it and add what you like about it. Reply to others' tweets when you have something to add to the conversation.

(7) Search for topics of interest, and see who is posting valuable content on those topics. Follow those people / accounts. Remember to use hashtags (#) for key words.

(8) If you have a SmartPhone, download the Twitter app and sign in to it. Use that when you're in line at a store or restaurant, or at the doctor's office waiting to be called, etc. Whenever you have a minute, you can scan your home feed and post at will.

(9) Reply to at least one celebrity's post, even if its a "Wow, that's awesome!" or "Thanks for posting!" or "Congrats!"

(10) Tweet about a company or brand that you like, tell the world why they are great.

(11) Tweet to me if you'd like, @APICSPhoenix or @Lowa84, and ask me how you're doing.

Senior Management Night 2014 Recap

Tue, 20 May 2014 03:53:11 GMT

Every year, APICS Phoenix dedicates one dinner meeting to the executives and senior managers of our companies and leaders in our field, and present our annual awards.

This year's Senior Management Night featured Subba Nishtala as the speaker. We had a large number of first-time PDM attendees, including several of our invited managers. There were also a couple recent graduates who attended the PDM, and we are always happy to see students and college grads among our PDM attendees.

Subba led us through a discussion on engagement between functional work groups. Specifically, in order for IT to provide a satisfactory solution, they must engage and be engaged with the internal customer they are providing it to. Likewise, is a specific function, like purchasing, needs an IT solution, they must engage their IT counterparts to work together on the best possible solution. It is not about assigning projects or specifying solutions and demanding adherence, it is about adding value so that the important players get a seat at the table. While the conversation was focused around supply chain and IT, the principles we discussed could be applied to any pairing of traditionally silo'd departments.

Kicking off our annual awards presentation, the Company of the Year went to Coco-Cola. We have had a number of in-house classes this year at Coco-Cola, and their support for APICS and the Body of Knowledge made them a clear candidate for the award.

Member of the Year was awarded, to my surprise, to yours truly, Laura Winger. I am very grateful for the recognition and everything that APICS Phoenix has done for me, and honored to receive the award this year.

Thank you to everyone who invited their managers, brought guests and attended the event! We look forward to seeing you at the next PDM in August!

Visit our facebook page to see all the photos!

April 2014 PDM: TechShop Tour recap

Sun, 13 Apr 2014 20:08:17 GMT

I first learned about TechShop several years ago when it was just a place in the San Francisco area. But the idea intrigued me: dozens of high-end, expensive machines for fabrication available for use by the general public for a minimal monthly membership fee (much like a gym membership model). Tinkerers, inventors, wanna-be entrepreneurs, students, small businesses, and even large manufacturing companies all could utilize the unique capabilities and inspiring environment of TechShop. So when I heard that there was a TechShop opening in near me, it would be an understatement to say that I was excited.

APICS Phoenix got a chance to tour this brand-new TechShop facility in Chandler, Arizona for our April PDM. The tour started with the most popular machines - the laser cutters. These Scottsdale-made powerhouses can make precision cuts and etches in a variety of materials, and were used to etch the APICS Phoenix logo into dogtags for each of our attendees. Other examples of laser cut and etched products were displayed outside the computer classroom. All the computers at TechShop are loaded with Autodesk software, which is generally too pricey for most individuals to afford.

Our next stop was a favorite at our previous tour at Local Motors, the 3D printers. Known as rapid prototyping tools, 3D printers empower members to create custom parts without molds or finished plastic products. Also known as additive manufacturing tools, 3D printers add plastic or other materials layer by layer, guided by 3D models designed on the computer.

"Something for everything," our tour guide said as we ventured over to the sewing area. Front and center is the massive CNC embroidery machine. Around the room are various industrial sewing machines as well as a tools for cutting vinyl and screenprinting.

Further into the workspace is an electronics section, which happened to have some small robots there a recent workshop. Then we peered into the woodshop, which has everything you need to form and work with wood, including lathes and table routers.

The smell of Dickey's Barbecue being set up beckoned to us, but we pressed on, into some of the more heavy duty areas. There are areas for TIG and MIG welding, and powder coating, as well as many tools for metal working. Outside is perhaps the most impressive machine, the CNC waterjet. Keeping guard over the waterjet is a giant wooden T-rex model that was made by a TechShop Dream Consultant.

We headed inside to grab our dinner that was now set up by Dickey's Barbecue, while the CNC waterjet was getting set up for a demonstration. When it was ready, we got to see the power of this machine, as it cut and etched stainless steel right before our eyes.

If you are interested in a Corporate Membership with TechShop through APICS Phoenix, please contact Laura Winger at mktg@APICSPhoenix.org.

Thank you to Dickey's Barbecue Pit and TechShop and all of our attendees for making this inspiring event happen!

New and Different Perspectives: Highlights from the Local Motors Plant Tour

Fri, 21 Mar 2014 19:04:37 GMT

APICS Phoenix visited the Local Motors microfactory on March 20th, and attendees got to see, some of them for the first time, disruptive technologies and business models abundant within Local Motors. It's flagship vehicle, the Rally Fighter, was designed not by Local Motors R&D engineers huddled in a room, but by worldwide crowdsourcing contests. Winning designers are financially rewarded, either with a lump sum upfront or with incremental payments as each product bearing their design is sold. Winning designers are also recognized on the product itself. For example, each Rally Fighter bears a small plate with the name of the person whose sketch of the body became the overall design of the car.

Our tour guide, Tony, walked us through the assembly area where motor cycles and Rally Fighters were built. You can't buy a new Rally Fighter off a lot; buyers participate in the manufacturing and assembly of their own vehicles.

Among one of the most awe-inspiring gadgets were the many 3D printers that were running. The MakerBot Replicator 2 is one of the most popular 3D printer model. The ones at Local Motors were literally printing parts that would be used on the Rally Fighter, as well as protective cases for the tiny quadcopters they sell in The Shop.

Another innovative technology we learned about was their live, on-screen work instructions displayed on iPads that could be mounted on or near the unit being assembled. If there is an error on the work instructions, mechanics can update the work instructions, which then gets routed to the creator for approval. Those work instructions are also available on the web, so anyone working on their unit at home can see how to repair or put something back together, or provide improvements from their experience.

The service area of the microfactory was very small, mainly because, as Tony pointed out, when you build your own vehicle, you know how to fix it. Many of the components used in the Rally Fighter are off-the-shelf products from large OEMs, so that they "don't have to reinvent the wheel." The engines and transmissions carry warranties from the car manufacturers they come from, so you could take your Rally Fighter into a dealership repair shop for, say, if your engine needs maintenance or repair.

Our next stop was the inventory racks, which are right next to the assembly floors. Local Motors assemblers pick their own components, so the inventory racks are organized based on the assembly timeline; what you need for day 1, and 2, etc. of assembly. Procurement is based on a tightly-controlled min/max system.

Through a set of hinged panels we came to an area where more of the fabrication is done. A CNC waterjet and a CNC laser cutter were among the impressive pieces of equipment. All of the designs are open to the public, Tony explained, so you can build your own Rally Fighter at home, if you wanted, "but good luck!"

As the tour came to a close, we got to see the construction of a new wing of Local Motors, a workspace for inventors and tinkerers to bring their projects and utilize the tools and knowhow of other experts.

Local Motors is much more than a car manufacturer, although the cars they make are pretty awesome. They are a big part of the Maker movement, one of the prime examples of crowdsourcing product design and collaborative manufacturing projects, focusing on small-run, niche requirements instead of large, mass assembly manufacturing sites. "GM knows how to make thousands and thousands of cars, but they don't know how to make just a thousand."

3D printers like the MakerBot Replicator 2, as well as CNC machines and other rapid fabrication tools like the ones seen at Local Motors, can also be seen at our next tour in April at TechShop. There, you can take classes on everything from how to use the machines, how to design products in AutoDesk Inventor CAD and CAM programs, and much more.

If you attended, please take our survey here.

Volunetworking: Volunteer first, reap the networking benefits later

Sun, 26 Jan 2014 07:14:52 GMT

I was recently asked about my volunteer experience with APICS and what benefits I saw in it. In my response, I focused on two broad benefits: one, that APICS volunteers have the ability to make their experience what they want it to be, and two, that your APICS network creates serendipitous connections that can help when you least expect them to. I think too often, people come to APICS dinner meetings a few times in a row, hoping to network their way to a job in short time. While I know that has happened, it's certainly not the norm, and I'd hate to mislead anyone into thinking otherwise. On the flip side, I know there are lot of people out there who went to a meeting once or twice, but didn't see a direct benefit immediately, and have stopped coming to meetings. So why do some people stick with APICS for decades and volunteer their time while others let it slip their minds?

Like many things especially in the education realm, I think APICS falls into the category of "you get out of it what you put into it." APICS is a big, broad organization with many functions and needs, but also flexibility to make it what you want. It's not just a certifying institute, but a living, breathing organization that needs things like marketing, finance, and IT solutions. It is also an educational organization, so it needs instructors. So if you want to work on specific skills that you don't use enough in your day job, say accounting, website development, or public speaking, APICS may be one avenue you can utilize to hone those skills. And it doesn't have to be all about your skills: if you want to go on more plant tours, you can volunteer for Programs and help select and arrange the plant tours. There are so many volunteer opportunities, big and small, that you can certainly contribute and make APICS your own. This, I think, is the more tangible, immediate return on your time.

The serendipity comes in after multiple volunteer experiences and ongoing networking. I think the best way to explain it is with examples. At one time, I had my eye on a specific company that I wanted to move to, and applied to a number of jobs I thought I could do, even though I lacked some of the experience in the job descriptions. I actually got the interview for one job, not because of my resume or LinkedIn profile, but because the hiring manager had been my student in an APICS CPIM certification course. In fact, he and his lead employee were both previously in my class, and they had recognized my name and gave me a shot at the position even though they really wanted someone with the experience I didn't have. For another example, when I was interviewing for the company I now work for, I didn't even realize I had two APICS connections at the company and within the group I was interviewing for. I'm not exactly sure how the hiring manager learned of these connections, I'm guessing maybe through connections on LinkedIn, but she ended up asking both people if they would recommend me, and they did! One had actually known me through a mutual connection at APICS Tucson, and one I had met at an APICS PDM. Now, I'll be the first to admit that not all companies seek out individuals with APICS certifications, but all companies prefer internal recommendations, especially on a person they are looking to hire from outside the company. To me, that is the real power of APICS and networking.

But it doesn't happen overnight. What good is handing out your business cards if the people you are handing them to don't actually know what you're capable of? Building your credibility takes time. By volunteering just an hour a month, you can have an impact on your APICS Chapter that then reflects highly on what you can bring to the table. When you volunteer, you don't always know who sees your actions that may be able to help you out in the future, but people do notice, and those people might just be your next boss or the internal referral you need to get your foot in the door.