“How are you doing?” seems like a very simple, non-threatening question. Right? 

But consider the following responses I have received to this straightforward question recently:

Wow, folks are a little sensitive to this question. Let’s reflect on why we are getting some over-the-top answers to this simple question.

In the autumn of 2010, folks are sensitive to what they have been through over the last few years. But I believe they are also eager to get on to 2011 – a time when we stop playing defense and for the first time in 30 months get to play some offense. 

In 5 months, I look forward to asking you the same question, “How are you doing?” and you telling me, “GREAT!” 

GoGoGo! 

Jim 

According to a recent article in World Trade magazine, supply chain executives think that risk to supply chains today is higher than it ever has been – whether this means realistic expectations or the perception of risk. 

What can someone trying to manage all of this risk do?

Valerie Bonebrake, the Senior VP for Global Supply Chain Services here at Tompkins, says in the article that organizations need to work backwards from consumption to source in order to map the supply chain and identify points of risk. And simply playing the “what if” game works well too!

As you can tell from the long list of them on the right side of my blog, I collect quotations. At the Supply Chain Leadership Forum earlier this month in Dallas, I heard a good one relating to risk management: “Surviving the unexpected is not an accident.” Supply chain managers should be prepared for anything; whether it’s going for a walk around the distribution facility or trying to summit Mount Everest, preparation will help face down challenges that disrupt supply chains.

This quote originated from Roger Paulson’s presentation on Risk Management Tools and Techniques at the Leadership Forum. Roger is the director of the University of Wisconsin’s E-Business Consortium’s supply chain management, customer service and sales operations areas. It was a great discussion between Roger and the group.

Luckily, there’s a way for you and all the rest of the blog readers who could not attend the forum to “listen in” on the key points and issues covered in this risk management session. After Roger’s presentation, the executive director of the Supply Chain Consortium, Bruce Tompkins, interviewed Roger in a live podcast format.

You can hear Bruce and Paul explore risk management techniques and proven best practices, as well as the common challenges and supply chain disruptions that companies face. Listen to the podcast here or see the text transcript.

GoGoGo! And prepare for risk. 

Jim

Resources:

Guest Blogger: Greg Hazlett, Principal, Global Supply Chain Services, Tompkins Associates  

Greg lives in the San Francisco Bay Area and is an expert in helping high-tech companies – including manufacturers and distributors of computer hardware and software, consumer electronics, semiconductors, components and peripherals, and capital equipment – improve their global supply chain activities. 

As high-tech companies continue to find their way in this new economy, many have either circled back around to, or discovered for the first time, Strategic Market Planning. Below are a few words of wisdom on the subject from a recent Tompkins’ article entitled, Top 10 List of Issues/Opportunities Facing High-Tech Companies.

It’s no secret that high-tech companies thrive on innovation. This innovation creates products that are “first to market,” “feature rich,” “easy to use,” “low cost,” or sometimes simply “trendy.” Success comes from gaining a leading and sustainable position in the served markets. 

To achieve this position, a strategic market plan will combine market and competitor intelligence, assessment of the addressable opportunity and a penetration strategy. 

It is an execution plan to compete in the selected markets to maximize profitable growth by answering the following questions:

Many high-tech companies develop great strategic market plans, but fall short in the execution. You see this a lot today. With the strong economic rebound, demand for many products often exceeds supply, resulting in allocation for many manufactures, distributors and retailers. 

When a company finds itself on allocation, it adversely affects sales, margin realization, and can even disrupt or cut short the life cycle of the product(s). By performing a thorough strategic market plan, high-tech companies: 

For high-tech companies, the rapid pace of technology advancements and market acceptance place a premium on the speed in which they can enter markets and react to forces that impact the balance between demand and supply. 

The old cliché, “time is money,” still holds true. In the high-tech industry, how well the product meets market expectations and how prepared the organization is to meet these challenges will often dictate to what degree a product achieves its full potential. More on strategic market planning.

-- Greg

Photo Credit: alancleaver_2000 

This time of year is always extra busy– Supply Chain Leadership Forum, ensuring that client’s goals are met before the year end, traveling, speeches, etc. So, I apologize for not posting a blog post last week.

Speaking of the Leadership Forum, we found Dallas to be a great location for this conference. Attendees were blown away by the insider’s tour of the Dallas Cowboys’ Stadium. So was I! You don’t have to be a Cowboy’s fan to appreciate the huge effort that went into planning and building the stadium and now operating and promoting it as a venue for football and other events.

We learned that: the stadium is the world’s largest indoor domed structure of its kind at 6 million square feet; it seats 80,000-plus people; it was built at a cost of $1.1 billion; it has a TV scoreboard that is 60 yards long and hangs 90 feet above midfield. 

But what I found most impressive was the operation itself – the supply chain and people behind it all. They employ about 3,000 people on a non-game day, with that number ballooning to about 3 times that number during an event or game. During the next Super Bowl, it’s estimated that nearly 30,000 employees will be working at the stadium. It literally takes a village to run that place.

Carter Helwig, stadium beverage director, spoke to our supply chain leaders about the challenges of keeping thirsty football fans happy. It helps, of course, that they have a room dubbed “the biggest beer cooler in Texas” that is large enough to keep almost a quarter million bottles chilled and ready to be consumed. 

As I listened to Carter spout off figures, I started wondering if an operation of this size would even be possible without the evolution of the global supply chain. No, not possible!  And since I was presenting a keynote speech at the Leadership Forum the very next day, I could really see how the dots were connected to the Texas stadium.

Globalism encourages technological advances, innovation, competition, productivity growth and entrepreneurism. These are things that the Cowboys could not live without. In fact, I would bet you four prime Dallas tickets on the 50-yard line that globalism had a hand in helping to building and now operate what many call “Jerry’s house.” 

So I hope you enjoy these photos of the stadium and encourage you to share your own examples of how global supply chains benefit the world today.

Go!Go!Go! 

Day 2 of the Supply Chain Leadership Forum, and I’m on a quick break from attending sessions on inventory optimization, benchmarking transportation, and risk assessment. 

Earlier in the day, we heard a great keynote presentation from Steve Ganster, Managing Director of Technomic Asia and a top-notch expert in all things involving business in Asia. And what timing! China recently took over as the second biggest economic power in the world. 

Steve’s talk, “China’s Evolution and Impacts on You,” clearly demonstrates that although China has officially arrived as a major world economic power, there are still some challenges for US companies to overcome. GDP growth within China is the best it has been in 15 years, and the country stands out as a huge consumer of resources as well as a prolific breeding ground for global companies as urbanization expands. Another plus: China’s warehousing industry is entering a high growth phase.

On the other hand, the country has a poor infrastructure to support all this growth. Logistics services are expensive, and there’s a shortage in railroad capacity and uncertainty in supplier bases. Technology within facilities and among suppliers is also an issue – with low technology levels in warehouses and more than half of all logistics services companies lacking proper IT systems.

Opportunities in China are abundant, but the road is often littered with mistakes.  Steve cited seven painful mistakes to avoid:

It all goes back to the saying, “In China, everything is possible but nothing is easy.” True, so true. 

Stay tuned for a report on the Leadership Forum’s insider’s tour of the Dallas Cowboy’s Stadium. 

Go!Go!Go!

Jim

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