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July 1, 2010
At Productivity Constructs, we want to change the way you think about leadership. It is not about position. Leadership is everybody's business. It is for men, women and children. It is for families, business and communities. It is for you. We need leadership now. Increasingly, people must influence without formal authority. Changing our lives and thinking from where we are. We need people of all ages from all backgrounds to take advantage of the myriad of opportunities that exist to make a difference. We all possess the capacity for leadership, but only those who cultivate it will ever become truly effective leaders. With the resources provided on this site, we would like to encourage you to develop the leader in you — to become an active participant in shaping your future and the future of others. Life doesn’t happen to us, it happens through us. Leaders don’t have all of the answers, they know the questions. They create an environment where the questions can be answered. The world needs you to live up to your potential. Imagine yourself leading. Where is your leadership needed … now? Be the change you expect in the World! Ten Major Supply Chain Risks for 2010; What you can do about it?
We have already experienced significant disruptions in our supply chains resulting from the downturn in the global economy. We are now facing a number of significant new issues that will impact sourcing strategies, goods movement, and the flow of working capital to your business. Several of these issues are hangovers from 2008's economic turbulence; however, others are in the early stages of development. The degree to which your organization can properly address these critical issues may help your company avoid significant unexpected cost increases and potential disruptions in your supply chain. This white paper will examine these ten trends in detail and define the manner in which they may add complexity to your global business over the next few years. Lack of Working Capital Instability and lack of liquidity in the traditional banking sector will cause capital to dry up and become more expensive. Businesses will have to look for non-traditional sources of working capital, often these will be found in internal operations through improved efficiency and inventory reductions. Many businesses will be forced to reduce inventory, rationalize product lines and lower operating costs in an attempt to generate working capital. Buyers will attempt to extend payment terms, while suppliers will focus on collecting receivable, these actions will result in a need for supply chain financing as a liquidity buffer to neutralize these conflicts. The current credit environment is pushing buyer and supplier partnerships to look at their trade flows to drive the creation of additional liquidity. These supplier consortium's will include requirements for working with your supply chain partners and jointly finance the flow of materials to the marketplace.
Economic Downturn Risks The global economic downturn will create significant risks and opportunity for most businesses. This will translate into major restructuring of supply chain operations in an attempt to better position themselves for additional market share and profits as economies around the world begin to recover. These efforts will focus on driving inefficiencies out of the supply chain while minimizing risk. Supply chain risk mitigation will receive increased focus due to the following factors: Instability in energy cost resulting in fluctuating commodity, labor and operating expense. Businesses must plans for variable energy and commodity prices, as well as labor and currency exchange rates. Business categories such as industrial goods and construction equipment, are likely to see robust price increases as major economies around the world announce economic stimulus packages focusing on major infrastructure programs resulting in another run of sharp increases in some commodities and energy prices. These dynamics will be difficult to manage and will impact their global supply chain. The dynamics of fluctuating energy costs and resulting uncertainty will cause businesses to compress their supply chains through additional local manufacturing and "near-shoring" in Mexico and the Caribbean which will result in lower inventories and leaner organizations.
Financial risk. Due to financial risk in the market we are seeing a rise in supplier bankruptcies. Companies will need to reevaluate their supply chains to identify and support their key partners and reduce the number of potential "weak link" suppliers. At the same time multiple suppliers for a single product or part must be secured to ensure supply chains keep running. Global supplier bankruptcies will result in increased domestic activity having a positive effect on short term commercial real estate.
Recovery Predictions. Economic recoveries will likely be unpredictable; the ability to quickly react to global shifts in demand will be critical for success. Redundant manufacturing capability should be established across multiple geographies in order to improve time-to-market for end customers and to be able to balance and buffer demand globally. Redundant manufacturing also can serve as a hedge against currency swings and future inflationary pressures in different economies. This redundancy will have a positive impact on commercial real estate in the U.S. and on the border with Mexico
Supply Chain Compression U.S. manufacturers are reconfiguring their supply chains by moving plant operations and sourcing vendors closer to home and away from Asia. Limited free trade agreements, high energy costs, and rising labor and production costs in Asia all contribute to companies reevaluating extended supply chains. Mexico has become an increasingly popular source for manufactured goods as companies compete on time-to-market strategies, seek financial advantages found in Mexico's multiple free trade agreements and capitalize on Mexico's investment incentives. This will impact commercial real estate and cross boarder trade as companies have to re-size their facilities in accordance with the requirements of the new demand. Searching for Working Capital As traditional sources of capital, such as bank lending dry up or become more expensive, companies will look for alternative sourcing of working capital and looking at internal operations is a logical direction. This trend will bring increased scrutiny to the supply chain as companies look to reduce inventory and lower operating or carrying costs. In addition, buyers will look to extend payment terms, while suppliers will drive to collect receivables more quickly, creating the need for a liquidity buffer such as supply chain financing, too mitigate this brewing payable and receivable conflict. The current credit environment is pushing buyer and supplier partnerships to look to their trade flows to drive the creation of additional liquidity. This will impact commercial real estate because foreign and domestic suppliers will have to partner in using global resources to get goods to market, this will include real estate transactions. Improved Speed and Savings in Mexico Mexican customs officials have been piloting a new customs regime that seeks to attract more foreign investment by improving importers' supply chain speed and mitigating the delays frequently associated with time-intensive processes and procedures at the port of entry. A customs regime is a country's specific set of trade regulations, processes and practices that regulate the actions of importers and exporters. The government believes that this new customs regime, known as Regimen de Recinto Fiscalizado Estratégico (RFE), will decrease logistics cost in terms of dollars per container and numbers of days in transit which, in turn, will help attract additional production to Mexico. Other highlights: goods can remain in a Mexican warehouse for up to two years on a tax-free and duty-free basis; the elimination of customs inspection at the port of entry, resulting in cost reductions and reduced time-to-market; no secondary customs inspections required; a simplified customs clearance process resulting in reduced Customs Brokers fees; and a three-day grace period for importers within which to correct import declarations. The commercial real estate impact will be to see more Boarder based distribution centers and cross dock facilities. More Free Trade Agreements More than 200 bilateral and multilateral Free Trade Agreements (FTAs) exist around the world today. In 2009, more growth and duty savings opportunities will arise for manufacturers, but with a new administration soon in power in the United States, will FTAs continue to prosper? The United States is expected to finalize three new FTAs in 2009 with Colombia, Panama and South Korea. Whether or not the existing FTAs on the table will be a priority for the new US. administration, many companies still risk leaving millions of dollars worth of duty savings unclaimed with the FTAs already in force. In addition, US. Customs and Border Protection is expected to increase scrutiny of FTA claims and the ability of importers to substantiate their claims. The complexity associated with understanding and leveraging FTAs is beyond the scope of many companies because they either lack the expertise, resources, technology, or all of the above to do it efficiently and cost-effectively. Many companies eventually come to a decision point: either invest internally or outsource to a global trade expert. The impact on commercial real estate will result in additional Port based distribution requirements. Consumer Product Safety In August, the United States signed into law the Consumer Product Safety Improvement Act (CPSIA), presenting certain manufacturers and importers with a new set of regulations to manage. Considered to be the most sweeping consumer product safety law enacted in decades, the new law is expected to usher in similar regulation around the world to addresses safety standards and requirements for childcare products, such as mandatory testing, the reduction in the use of lead paint, and more visible cautionary statements related to choking hazards. In November, representatives from China , the European Union and the United States met in Brussels for the first high-level trilateral summit on product safety to discuss key developments and further joint activities to improve cooperation and the exchange of information relating to consumer product safety. Upon import, products must be accompanied by certification that they comply with all applicable consumer product safety rules and similar rules, bans, standards and regulations under any other laws administered by the importing nation. Commercial real estate will see the development of more US based testing facilities to insure the foreign suppliers are in compliance. US Exports A falling US$ Dollar is good for business in the Unites States. In 2010 the United States will see a significant increase in the exports of manufactured goods and services. The effects of a low dollar on our economy will reduce the amount of high priced and imported foreign goods and increase low-cost domestically manufactured materials. This will fuel job growth and have a positive impact in the commercial real estate arena as it applies to established distribution facilities specific to the export of specific goods and services, The downturn in global markets will reduce demand for commodities and associated goods and services. However, the reduction in available credit for trade financing will result in resurgence in Letters of Credit as a means of risk mitigation. J. P. Morgan has seen resurgence in the use of letters of credit to facilitate the financing of international trade. In these uncertain times, letters of credit are a traditional, secure way of doing business and of financing the underlying trade between buyers and suppliers. Recently, fewer banks have been willing to extend and guarantee credit, so supply has been declining, and in some cases, the cost has risen dramatically. This will result in companies finding new sources for capital including the the development strategic partnerships and co-ops as a viable means of financing inventory. If you would like additional information regarding the manner in which these major supply chain trends will impact your commercial real estate business contact Dr. Edward Knab for free consultation regarding the opportunities in this environment. If your client companies are attempting to cope with turbulence in their supply chain; the Supply Chain Experts can help design a program that satisfies their requirements and likely will initiate a discussion regarding space utilization and the actions your customers while can take today to benefit from these trends. More Supply Chain Experts Blogs Dr. Knab is an academic practitioner, expert in distribution center and supply chain design. His company, Productivity Constructs, Inc., is focused improving global supply chain leadership and thereby creating more efficient organizations. Dr. Knab can be contacted for speaking engagements, coaching, or consultation at efk@productivityconstructs.com, ed@ewardknab.com or www.edwardknab.com.
Tags: Chain, customer, Distribution, efficiency, Management, satisfaction, Supply, System, Warehouse, WMS
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© Productivity Constructs, Inc. 2010
Are There Weak Links in Your Supply Chain? For over 20 years software companies have developed sophisticated technology tools to improve the coordination and control of material moving through the supply chain. Companies have purchased an enormous amount of technology promising end-to-end supply chain visibility; however, there remain a significant number of weak or broken links in the supply chain where shipments simply drop out of sight for considerable amounts of time. Most often organizations either ignore or deny the existence of these information gaps, however, inevitably these weak supply chain links results in excess inventory or poor customer service. Over the past two decades North American companies have significantly increased their outsourced manufacturing to Chinese vendors. This trend has amplified the number of partners in the supply chain, the interdependencies of subcontractors and raw material suppliers, and the distance that material and information must travel to close this gap. The information gaps in the form of weak supply chain links are most often found at the outer edges of the supply chain. Any time that raw materials, production parts or finished goods change hands is a potential for communication breakdown which have traditionally been addressed through expense internal enterprise resource planning system (ERP) rather than addressing them through collaboration with their trading partners. Of course, physical goods are not the only thing getting temporarily lost in the supply chain; financial flows and critical supply-chain data also contribute to organizations inability to manage their inventories. Organizations need an information system that links disparate applications across multiple partners, languages, geographies and cultures. The emergence of the software-as-a-service (SaaS) model in the form of project management and collaboration tools is a positive step in the right direction because it gives everyone in the supply chain and opportunity to identify these weak links and take action to mitigate their impact. However, today there is a plethora should note these tools all with different capabilities and degrees of difficulty in terms of implementation. If you or your organization would like some help identifying weak links in your supply chain and identifying the appropriate collaboration tools necessary to fill those gaps contact a Supply Chain Expert, their motto is “you are only as good as your weakest link”. They can help you design a program that delivers both immediate and long term benefits to your organization. The program will be designed to shift your organizations thinking, improve innovation, and implement a program that will optimize operational performance and satisfy the requirements of your customers. Dr. Edward F. Knab
Productivity Constructs, Inc.
800 660 8718 office
949 413 7333 mobile
ed@edwardknab.com
www.productivityconstructs.com
Free Supply Chain Intelligence Reports Dr. Knab is an academic practitioner and seasoned supply chain expert whose company, Productivity Constructs, Inc., is focused improving global leadership and thereby creating more effective organizations and higher levels of job satisfaction. Dr. Knab can be contacted for speaking engagements, coaching, or consultation at efk@productivityconstructs.com, mailto:ed@ewardknab.com or www.edwardknab.com. Tags: Chain, EMS, ERP, Software, Supply, efficiency, information Why Hire a Consultant? In the complex environment of business “usually, there is more than one approach or solution available to most any problem”. The identification of potential solutions is normally affected by time, resources, and knowledge. There can be a range from short-term solutions to long-term solutions; the financial considerations can range from minimal cost to significant cost, and similarly, knowledge can range from the organization needing little to requiring significant amounts of new knowledge.
Knowing the client and client’s organization is essential for two reasons; one concerns what advice is given, and the other affects how the advice is given. The first is about substance, and the second about process. Good advice must always meet the client’s needs and circumstances, and the client is usually the best source of that information. A second reason for knowing your client’s needs and concerns is the manner in which the consultant goes about giving advice. An effective advisor or consultant shapes the process to fit the client’s abilities and background and to do that, he/she must know the client’s requirements. A relationship can develop only if the consultant and the client know something about each other. Effective consulting requires a good working relationship.
The process of identifying the appropriate solution to any problem can only come after some form of due diligence or discovery. A consultant must understand the problem and issues thoroughly; he/she must consider the perspective of the client as well as understanding what the potential solutions will mean to the organization. One of the primary roles of a consultant is to help the client define the problem. In many cases clients have not defined the problem accurately; which resulted in their inability to resolve the issues and caused them to solicit help from consultants. Appropriately understanding the problem is an essential element for developing effective solutions.
Productivity Improvements
A the major challenge for any business is how to continuously improve productivity. This must be an ongoing process designed into the culture of the organization.
If your productivity per employment is stagnant you can be certain that your competition is not. Failure to meet targeted productivity can result to high costs per unit, hence higher prices, making your good, services, or commodities not competitive enough in the market place. Many businesses try very hard to remain competitive in the market. Therefore, it is important for businesses to implement strategies to make improvements in productivity levels. Businesses can make productivity improvement by asking themselves the following questions:
About the Business itself:
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Research and Analysis – Has the business done any research on the targeted markets and analyze the result on the approaches best fit?
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Smart Investment – Has the business calculated the amount of financial resources available to allocate to research and analysis, production cost, labor cost, and marketing?
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Productive Risks – Are there any risks that the company should know of during production?
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Innovation and Originality - Is your product something original and in a new market?
About Employee:
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Safe and Friendly Work Environment – What sort of environment are you providing your employees?
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Use of Employees – Is the business maximizing its' use of employees to best suit the business needs?
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Employee Knowledge – How familiar (what knowledge) are your employee with the running of machines/equipment, products of the companies? Does employee require training?
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Employee Happiness - Are the employees happy with their wages, rewards and hours of work given?
All these factors mention above will assist you and your business to strive to achieve your target.
Leadership
Leaders who can stay optimistic and upbeat, even under intense pressure, radiate the positive feelings that create resonance. By staying in control of their feelings and impulses,they craft an environment of trust, comfort, and fairness. Not surprisingly, self-management is also important for competitive reasons. In the current ambiguous environment, where companies continually emerge and break apart and technology transforms work at a dizzying pace, leaders who have mastered their emotions are better able to roll with the changes and help the organization adjust to the dynamics of the market place. Self-management also enables transparency, which is not only a leadership virtue but also an organizational strength. Transparency--an authentic and veracious openness to others about one's feelings, beliefs, and actions-- allows integrity or the sense that a leaders can be trusted. In a trust-based environment,integrity hinges on impulse control, keeping us from acting in ways that we might regret. Integrity also means that a leader lives his values. Such leaders strike others as genuine because they are not making a pretense of being other than they are. Live in the moment of today with an eye to the future and a reflection of the past.
Discovering your veracious leadership requires a commitment to developing yourself. Like musicians and athletes, you must devote yourself to a lifetime of realizing your potential. The advice I give to individuals in our company is not to expect the company to hand you a development plan. You need to take responsibility for developing yourself.
Are you a leader?
What does it take to be a leader?
What does it mean to be a leader?
Who can help me become a better leader?
We build better leaders, join the movement.
We concentrate on people's strengths. Some other cookie cutter approaches teach people to put on masks - to act in certain prescribed ways. We take the opposite approach. We help your leaders to develop the best of their authentic selves.
Whether this is through training, assessment feedback or leadership coaching, we help people to understand themselves, to know their strengths, and then to build upon those strengths to become effective leaders in a way that is true to who they are.. to what they stand for... and to how they intend to lead.
After a multi-dimensional assessment of each person's leadership talent, we map out a path for leadership development
Through our one-on-one coaching process, leaders learn to build upon their strengths and develop their skills in the way that is most effective for them. This is normally a six-to twelve-month undertaking. Coaching sessions are held by telephone or in person twice per month.
In organizations, success as a leader is measured by the degree to which we’ve mastered the external environment and delivered results in the form of revenues, profits, new product breakthroughs, cost savings, or market share increases.
External results, of course, are important. But trying to define leadership by its external manifestations misses the core question: What is the essence of leadership—the foundation that underlies external success and achievement?
Leadership is not simply something we do. It comes from somewhere inside us. Leadership is a process, an intimate expression of who we are. It’s our being in action. At its deepest level, leadership is authentic self-expression that creates value.
Core Principles
Viewing leadership from this essential vantage point, we can see there are three core principles to guide us:
Are we Veracious? Blog: http://edwardknab.spaces.live.com | |
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