Tag Archive: capacity

Transportation Capacity Tight & Rates on the Rise

By
Transportation capacity is tight and rates are on the rise. And,  it doesn’t look like it will change anytime soon!  The lack of qualified drivers, tighter enforcement of driver work rules and the dramatic changes brought on by e-commerce are creating challenges for shippers not to mention higher rates.  According to the Journal of Commerce and the 2018 TPM Conference, impacts abound with “rollover freight”, dropped tenders and longer transit times. The last one is key – in today’s Amazon-impacted market, customers expect quicker deliveries; not extended ones!  Are you thinking about transportation trends and the impacts on your company?  …
View Article




Global Manufacturers Struggle to Keep Up with Demand – Are You?

By
Factories across the globe are showing signs of strain in keeping up with demand. Are you prepared to meet your demand – and your competitors?
View Article




Forecasting: How Far Should You Look into the Future?

By
Whether setting strategy or designing a SIOP (sales, inventory and operations planning) process, one of the most important questions to consider in forecasting is how far into the future will you look? And why? As we think about whether the answer should be 1 month, 1 quarter or 1 year, check your thinking. When assessing the future it is important to think through the elements that may impact your forecast. 10 Questions to Ask When Forecasting and Designing SIOP 1. Do you have customer contracts in your business/ industry? If so, how far out do they go? 2. Regardless of the…
View Article




Reshoring Gains

By
According to Industry Week and the Reshoring Initiative, after two decades of job losses, we have turned the corner. In 2014, we had a net gain of 10,000 reshored jobs. And, clearly, this is picking up steam especially as we are in the thick of 2017. According to the article, South Carolina is the top winner thus far, followed by Michigan and California (surprising; however, since Boeing is the 3rd largest reshoring company, it makes sense), Kentucky and Texas. Walmart and Ford were the top two reshoring companies. There is certainly a buzz with reshoring and near-sourcing. We’ve received calls from several potential…
View Article




Trump’s Major Increase in Defense Spending and Related Impacts

By
Trump has proposed a rather dramatic increase in defense spending. His proposed $20 billion boost in military spending isn’t pocket change and will have a dramatic ripple effect on manufacturers across-the-board. It doesn’t matter what gets approved in the end — the direction is clear. How will defense spending impact your business? Waiting for final approval before considering how to leverage this opportunity seems foolhardy! FYI I love the picture below as it reminds me of one of my all-time favorite shows, JAG. What Should We Consider and/or What Impacts Could Arise? When military spending increases, defense-related manufacturing booms. It…
View Article




Manufacturing Expands at Fastest Rate Since 2010

By
According to the Institute for Supply Management’s Manufacturing Purchasing Managers’ Index, manufacturing is on an upswing. The composite index rose in January, making it the fifth straight monthly expansion. New orders and production grew strongly! And the Dallas Federal Reserve Bank reported that manufacturing activity expanded at its fastest pace since April 2010 — more importantly, leaders are positive about the next six months. In fact, the forward-looking outlook measure jumped to a level not seen in 12 years! Are you ready? What Should We Consider and/or What Impacts Could Arise? Although this is great news for manufacturing, we should make…
View Article




Is Your Supply Chain Ready for Growth?

By
Several of my clients are in the aerospace industry. In that industry, supply chain readiness audits are commonplace. These are especially prevalent today as growth in that market is substantial. Companies must be prepared for significant growth to support the doubling of the world’s fleet in the next 20 years to give their customers comfort in their long-term viability. Although this is especially prevalent in aerospace, I’m finding double digit growth widespread in the marketplace today. Manufacturing is making a comeback. How ready is your supply chain? There are several aspects that should be reviewed to make sure growth will be…
View Article




Types of Capacity

By
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…
View Article