priming your supply chain for the amazon effect -...

Priming Your Supply

Chain for the Amazon

Effect

By Lisa Anderson, CSCP

#APICS2015

Founder and President of LMA Consulting Group, Inc. and formerly VP of Operations for a mid-market manufacturer

Known as the Manufacturing Connector as she ties strategies and plans to results

As a business consultant, she partners with manufacturers and distributors to ELEVATE BUSINESS PERFORMANCE

Known as having an eagle-eye strategic focus, Lisa is a leading expert in selecting strategic priorities, bridging the gap with execution and partnering with clients to “make it happen”

As Lisa’s practice is known for doubling inventory turns, slashing lead times and increasing productivity and margins, Lisa is talked about in those circles as the strongest link in your supply chain.

Lisa is the creator of the dynamic approach to supply chain excellence TST which combines torque, speed and traction to create high speed organizations that maximize performance

Lisa is the author of Leverage Social Networks to Drive Business Results, has been a featured speaker at several industry conferences such as the Global Supply Chain & Logistics Summit and has been quoted in the Wall Street Journal, ABC News, and the Los Angeles Times.

She was rated in the top 20 supply chain influencers by SAP and is board approved in supply chain strategy by SAC (Society for Advancement in Consulting)

About the Speaker

Lisa Anderson, MBA, CSCP

#APICS2015

Overview

Why focus customer service

Why this is especially critical in the new normal

Amazon effect survey results

How to prime your supply chain for the amazon effect

Case studies

#APICS2015

Why Focus on Customer Service?

Only do so if …

− You want to maintain your current customers

− You want to grow your customers

#APICS2015

Why Now? = The New Normal

Volatility is the new norm

Customers expectations high (more for less – and quicker)

Time matters

New ballgame for sales growth

Cash is king – perception is reality

Information overloaded society (e-commerce, big data)

Increasingly complex needs (global, regulations, risk,

sustainability)

Latest trends

#APICS2015

Why Do We Care?

Baselines must be an assumption

− Cash is king

− Service is paramount

− Execution is everything

Innovate or die

Collaborate to thrive

Image will make or break you

To Sum up the new normal:

#APICS2015

How to Succeed in the New Normal?

We must create a competitive advantage

Exceptional service

At a high value/return for the customer

At higher margins

Find and implement ways to provide

#APICS2015

Business results

increase/

Opportunities to

innovate increase

Potential

Opportunity

Current utilization

80%

20%


Leverage your #1 asset = Relationships network

#APICS2015

Feedback/Continuous

improvement

Internal team and networks

Customers

Distribution partners

Suppliers


Leverage your relationship network

#APICS2015

The Amazon Effect Research Study

Amazon Effect

Research Study Results

What do you think?

#APICS2015


Bottom Line:

Customer Service Matters

#APICS2015


67% Feel customer service gaps vs. Amazon-like

offerings

Consensus concludes: “A game changer!”

#APICS2015

A majority of respondents use websites to display products

and services at a minimum


67% Feel customer service gaps vs. Amazon-like

offerings

#APICS2015


Gaps abound from viewing and ordering products and

services to order tracking, paying invoices and managing

returns

Websites are gaining is criticality …

#APICS2015

Order tracking, delivery, 24/7 accessibility, pricing and sales

support all vital


Service expectations are rising …

#APICS2015


However, don’t overlook the importance of the increasing

requirement for product customization


#APICS2015


A majority of respondents feel customers have become more

apt to negotiate price and do price shopping


#APICS2015


And, most importantly, delivery and lead time expectations

are increasing!


#APICS2015


Quality and service must be an assumption. Options are

expected.


#APICS2015


Tracking your customer service is no longer enough; the

customer will tell you!


#APICS2015


If you are not capturing demand data, you are missing an

opportunity.


#APICS2015


Redesigning website, providing more data and extending

hours are the top three ways respondents have met

increasing service needs

What are we doing in response?

#APICS2015


Looking to the future, which of the following are you considering to help you success in

meeting/exceeding customer expectations

Building out technology infrastructure key to meeting

customer expectations


#APICS2015


Spreadsheets still win the race; however BI is gaining

popularity


#APICS2015


It’s a tie: Understand what customers want and balancing

what customers want with the costs are respondents greatest

challenges

Greatest challenges …

#APICS2015


Resources are a close second – the skills gap is alive and

well

Greatest challenges …

#APICS2015

Respondent feedback on the Amazon effect


Customers want it “now”

Customers expect 24/7 availability

Customers expect customization

Customers expect “over and beyond” service

#APICS2015

People

Systems Process

Sweet spot

How to Prime Your Supply Chain

Sweet spot

Create a customer service edge

Tie to culture and strategy

#APICS2015


People

Have you ever seen an organization with happy customers and

unhappy employees?

People are at the heart of service

Empowerment

Engagement

Innovative service

#APICS2015


Process

Order fulfillment

Service options

Seamless and easy processes – website, returns, high tech/ high

touch, etc.

Continual eye for process improvement - Lean

VMI

Sales and Operations Planning/SIOP

#APICS2015

What is SIOP?

31

Demand(Customer Needs)

Supply(Production &

Purchasing Plans)

How Does SIOP Benefit You Long-Term?

Growth

Service levels

Turnaround time

Inventory turns

Collaboration

Margins

Efficiencies

Who is involved?

• All internal

functions

• Customers

• Suppliers

#APICS2015


Systems and technology

ERP

E-commerce

Websites

Order fulfillment technologies – multi-channel, WMS

Big data/business intelligence

Collaborate with customers and suppliers

#APICS2015

Case Studies

A mid-market manufacturer struggled with service levels to its key

customer, following a merger and new system deployment. If they

were to keep their #1 customer, service must improve dramatically

and rapidly

A building products manufacturer and value-add distributor had to

find a way to slash costs during the recession without losing

additional sales. Customers would move for 5% improvement in

delivery lead times

A value-add distributor was in the midst of upgrading their ERP

system to support base business requirements and wanted to

further leverage the process to drive growth and margins

A distributor has been seeing the need to support multiple channels

with the explosion of e-commerce and had to find a way to support it

successfully

#APICS2015

Conclusion

Service and quality must be an assumption

Going the extra mile is no longer a differentiator

Time matters

Leverage your data and technology

It all goes back to your people!

#APICS2015

If you are interested in learning more…

1. Sign up to receive the Amazon Effect Research Report

2. Drop your card or sign up on-line to be entered to win a free book

especially for APICS 2015 attendees.

3. Sign up to get an APICS 2015 discount on Amazon Effect book

4. Continue to build on your knowledge with strategies and tips for

success by receiving my monthly Profit through People & weekly

I’ve Been Thinking newsletters.

Go to my special APICS 2015 webpage: www.bit.ly/AmazonEffect

http://www.bit.ly/AmazonEffect

#APICS2015

Contact the Speaker

36

Email: [email protected]

Phone: 909-630-3943

Website: http://www.lma-consultinggroup.com/index.html

Twitter: http://twitter.com/LisaAndersonLMA

LinkedIn: http://www.linkedin.com/in/lisaandersonlma

Lisa Anderson

priming your supply chain for the amazon effect -...

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