Category: Organizational Development

Risk in Global Supply Chain Is on the Rise

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According to the Chartered Institute of Procurement and Supply (CIPS) risk index, risk is the highest since 2013. It is easy to become complacent. Are you adding risk into your supply chain conversations and plans? The increase is driven by supply chain risk in Western and Central Europe, Eastern Europe, the Middle East, Latin America and Sub-Saharan Africa. Specifically: Western Europe – This trend is clearest in Western Europe, where risk rose to 2.63 in Q3 from 2.60 in the previous quarter. The uncertainty around the post-Brexit relationship between the UK and the European Union has had a negative impact on trade…
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Why Marketing Shouldn’t be Overlooked with SIOP

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I’ve been partnering with clients to design and implement SIOP (sales, inventory and operations planning) programs the last several years as I’ve found them to be a GREAT way to achieve several results simultaneously: 1) Support growth, 2) Improved service levels/quicker turnaround of deliveries (shorter lead times), 3) Improved margins and efficiencies, 4) Accelerated cash flow; and 5) Improved employee morale and teamwork. Although the technical side plays an important role (figuring out future demand and aligning with manufacturing, staffing, suppliers etc.), the aspect that generates the best results is that it aligns the executives and functions within the organization (and…
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Empower Your People to Grow

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Businesses must capture opportunities rapidly to outpace their competition. Thus, it is even more important to be the best at identifying, prioritizing, and implementing opportunities which will deliver bottom line business results. The time to leapfrog your competition is now. Why is empowerment the key to success?  Empowered employees achieve substantial results which also tie directly to what’s required to succeed in the new normal: 1) Reduce costs & delays. 2) Deliver exceptional service. 3) Innovate in alignment with vision. Or, just think about the Ritz Carlton. Their employees are empowered and will make sure their customers are happy. If you’ve experienced the…
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Building a World Class Workforce

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Customers in the global economy are more demanding than ever before. They can be; there is more competition than ever before. Customers take it for granted that you will deliver a low cost and high quality product or service. Now on top of that, they demand it faster and customized to their individual needs. To be a survivor in the marketplace today you must produce world class quality products and services, designed to meet the specific customer’s needs, deliver them quickly anywhere in the world at a competitive price.  The company that seeks to become world class will have to create…
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Executive Summaries on Enterprise Apps© Number 6: Managing Differently After Implementing ERP

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What do you, yes you, the senior executives of the company do differently the day after your new ERP is up and running? The correct answer is everything, but we’ll focus on three specific items. Organizational Design Process Design Business Metrics
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Executive Summaries on Enterprise Apps© Number 2: Three reasons to implement a new ERP system

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A new Enterprise Requirements Planning (ERP) system can be an expensive and risky undertaking. I advise my executive clients that the decision to replace the existing system or to implement their first ERP system should be driven by one or more of the following three Decision Drivers. To improve profitability and cash flow To solve problems with existing systems To improve operations
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Manufacturers See Critical Importance of Collaboration

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According to a recent KPMG survey on the Global Manufacturing Outlook, executives are thinking about innovation. 81% are altering their business models to encourage collaboration with customers, suppliers and other partners to “improve the value of their innovation investments”. Speed is critical. Thus, a key question is how to speed up the innovation cycle – and how do we make sure results follow? Are you collaborating with your customers and suppliers? How about internal resources? SIOP (sales, inventory and operations planning) is a great vehicle for ensuring this collaboration occurs. I’ve seen dramatic improvements in lead time, service levels, capacity preparedness for growth,…
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Build a Solid Foundation with Data Integrity

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I recently was talking with a key client about the importance of building a foundation for new processes, and it sparked the idea for this article. If there is one common problem my client’s experience, it is the desire to rush “building the foundation” – whether of a process, system, culture, etc. Don’t give in to the temptation; instead, invest in building a solid foundation and you’ll end up with a better – and typically quicker – result than the rest. When it comes to systems, the key to the foundation is addressing data integrity. Garbage in creates garbage out…
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Types of Capacity

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Capacity is a critical element for any business – and especially those interested in growth! A good place to start is to understand your capacity, which can mean different things to different people. The traditional definition relates to the total output you can expect from a machine, group of machines or facility. I view capacity as all of the following: 1. Machine – if your machines were running 24/7, what is the output you would expect? 2. Machine staffing – given your staffing levels, what is the output of your machines? 3. People – what resources and skills do you have…
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Smart Succession Planning: Getting Ready for Your Next Move

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What if you lost one of your key employees unexpectedly? Happens all the time. “We really need to get better at succession planning.” A common desire expressed by many executives. But the reality is that it takes time and brainpower. Succession planning often gets put on the backburner. Sometimes it’s easier to see how far you can run without addressing succession issues. After all, you could strike some sensitivities. What if you position one person for advancement, and not her co-worker? You could upset the applecart. Nothing’s broken. But if you’re serious about growing your business, it’s probably time to…
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