Priming Your Supply Chain for the Amazon Effect. By Lisa Anderson, CSCP
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1 Priming Your Supply Chain for the Amazon Effect By Lisa Anderson, CSCP
2 About the Speaker Lisa Anderson, MBA, CSCP 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)
3 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
4 Why Focus on Customer Service? Only do so if You want to maintain your current customers You want to grow your customers
5 Why Now? = The New Normal Latest trends 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)
6 Why Do We Care? To Sum up the new normal: 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
7 How to Succeed in the New Normal? Find and implement ways to provide Exceptional service At a high value/return for the customer At higher margins We must create a competitive advantage
8 How to Succeed in the New Normal? Leverage your #1 asset = Relationships network Potential Business results increase/ Opportunities to innovate increase 80% Opportunity 20% Current utilization
9 How to Succeed in the New Normal? Leverage your relationship network Internal team and networks Distribution partners Feedback/ Continuous improvement Suppliers Customers
10 The Amazon Effect Research Study Amazon Effect Research Study Results What do you think?
11 The Amazon Effect Research Study Bottom Line: Customer Service Matters
12 The Amazon Effect Research Study 67% Feel customer service gaps vs. Amazon-like offerings Consensus concludes: A game changer!
13 The Amazon Effect Research Study 67% Feel customer service gaps vs. Amazon-like offerings A majority of respondents use websites to display products and services at a minimum
14 The Amazon Effect Research Study Websites are gaining is criticality Gaps abound from viewing and ordering products and services to order tracking, paying invoices and managing returns
15 The Amazon Effect Research Study Service expectations are rising Order tracking, delivery, 24/7 accessibility, pricing and sales support all vital
16 The Amazon Effect Research Study Service expectations are rising However, don t overlook the importance of the increasing requirement for product customization
17 The Amazon Effect Research Study Service expectations are rising A majority of respondents feel customers have become more apt to negotiate price and do price shopping
18 The Amazon Effect Research Study Service expectations are rising And, most importantly, delivery and lead time expectations are increasing!
19 The Amazon Effect Research Study Service expectations are rising Quality and service must be an assumption. Options are expected.
20 The Amazon Effect Research Study Service expectations are rising Tracking your customer service is no longer enough; the customer will tell you!
21 The Amazon Effect Research Study Service expectations are rising If you are not capturing demand data, you are missing an opportunity.
22 The Amazon Effect Research Study What are we doing in response? Redesigning website, providing more data and extending hours are the top three ways respondents have met increasing service needs
23 The Amazon Effect Research Study What are we doing in response? 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
24 The Amazon Effect Research Study What are we doing in response? Spreadsheets still win the race; however BI is gaining popularity
25 The Amazon Effect Research Study Greatest challenges It s a tie: Understand what customers want and balancing what customers want with the costs are respondents greatest challenges
26 The Amazon Effect Research Study Greatest challenges Resources are a close second the skills gap is alive and well
27 The Amazon Effect Research Study Respondent feedback on the Amazon effect Customers want it now Customers expect 24/7 availability Customers expect customization Customers expect over and beyond service
28 How to Prime Your Supply Chain Create a customer service edge People Sweet spot Sweet spot Process Systems Tie to culture and strategy
29 How to Prime Your Supply Chain People Have you ever seen an organization with happy customers and unhappy employees? People are at the heart of service Empowerment Engagement Innovative service
30 How to Prime Your Supply Chain 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
31 What is SIOP? 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 31
32 How to Prime Your Supply Chain Systems and technology ERP E-commerce Websites Order fulfillment technologies multi-channel, WMS Big data/business intelligence Collaborate with customers and suppliers
33 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
34 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!
35 If you are interested in learning more Go to my special APICS 2015 webpage: 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.
36 Contact the Speaker Lisa Anderson Phone: Website: Twitter: LinkedIn:
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