Nellson partnered with LMA Consulting Group to improve demand visibility and create more effective production plans. Through SIOP and longer-term planning, the company established a stronger operational rhythm, reduced inventory by 50%, improved OTIF performance into the high 90% range, and strengthened operational performance across the business.
A building products company missed several million dollars in revenue last year because they couldn't meet the demand. Unfortunately, this was a common occurrence. Sales increased dramatically, and they couldn't scale up their manufacturing operations and adapt their purchase requests quickly enough to take advantage of the opportunity.
Supply chain disruptions will continue throughout 2022. In fact, we need to accept that supply chain challenges will be commonplace in the next normal. Each link in the supply chain will continue to blame the others while the end-to-end supply chain will only be as strong as its weakest link. Manufacturers will continue to experience shortages of materials and labor while prices escalate.
Supply chain disruptions will likely persist well into 2024 and beyond as hospitals, healthcare providers, and medical device companies continually pivot to address the market's immediate needs, creating further disruption and misalignment comments Lisa Anderson, founder and president of LMA Consulting Group Inc., a consulting firm specializing in manufacturing strategy and end-to-end supply chain transformation.
Global supply-chain disruptions are rampant. Manufacturers and business owners now routinely deal with triple and quadruple lead times, widespread shortages, escalating prices, and transportation delays. Every link in the supply chain is out of alignment. Think of the imbalance as a sixth-grader on one end of a teeter-totter and a kindergartner on the other—only worse.
Sales and operations planning is a dark art, and most organizations typically have a very ad-hoc process of forecasting due to its nature. But it's critical to be directionally correct with your plan. Or you might end up missing opportunities or losing customers. [...]
At least 80% of clients contact us to find out how to predict the unpredictable. This is especially true in custom manufacturing, high growth and promotion-heavy industries; however, it remains accurate across the broad spectrum of manufacturing and distribution companies. Predicting the unpredictable demand plan starts by asking common [...]
To thrive post COVID, manufacturing resilience will be cornerstone. Customers expect personalization, customization, and rapid deliveries without disruption, and they will change suppliers, substitute products and do whatever is required to satisfy their customers or get what's needed. For example, although the preference is for online purchasing, consumers will return to stores to ensure quick, reliable supply of critical items.
2021 was plagued with shortages. As discussed in clients’ demand planning/ forecasting meetings, history is not representative of the future. In one example, the client experienced material shortages and couldn’t sell what customers requested, and so carrying that forecast into the New Year would deliberately carry that issue into 2022.
Supply chain disruptions and shortages continue to plague the news. Unfortunately, as I said in a recent press release, there is no end in sight. I thought this topic was worth addressing as it has been particularly frustrating lately. I went to Starbucks recently. After getting stuck in a [...]
