ncof intensive: making your operations more efficient to ... · supply chain management optimizing...
Post on 13-Jun-2020
0 Views
Preview:
TRANSCRIPT
How to run a small / mid-size Operations and reap benefits of a large scale business Page 1
Monday, April 19 (1:30 pm – 4:30 pm)
Intensive: Making Your Operations More Efficient to Generate ROI
Room: Asia 5
Agenda: Current Challenges Companies & Operations are facing
Setting the “Culture” and “Values” in place
Metrics Scorecard---------------Supply Chain Management
Optimizing IT Solutions----------------Practical Ways to Optimize Labor Costs
Smart Sourcing
Collaborative – Take away points
NCOFNCOF
How to run a small / mid-size Operations and reap benefits of a large scale business.
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
Intensive: Making Your Operations More Efficient to Generate ROI
SPEAKERSSPEAKERS• Mr. Charlie Kantz Vice President Logistics / Warehousing – Bakers Footwear
– Bakers Footwear Group – leading specialty retailer of fashion footwear to young women in the $19 billion footwear market
– Nearly 100 year old retailer- Currently operating in 240 stores in 37 states– 20 yrs retail logistics experience working for companies like Venture Stores, Famous Barr (a division of
May Company, and currently Bakers Footwear Group
• Mr. John Medwin President – Definitive Resources
– Definitive Resources – Core competencies Product Fulfillment / Logistics services– Print Solutions / Mail Services / Business Intelligence– Third-party Fulfillment solutions provider for over a decade – Current locations in S. Fla., Atlanta / opening Nevada ( FY 2010)– Operations & Financial roles within Westinghouse Electric Corp / private industry
• Mr. Richard Hopper Chief Business Officer (CBO) – Definitive Resources
– Entrepreneur of Definitive Resources – (sharing the “good” and “not so good” experiences)– Helped introduce Smartsourcing to the Entrepreneurial world– Former Board member of EO ( Entrepreneurial Organization)– Member of South Florida EO Chapter– Mgmt & Business Dev roles within FedEx / private industry– 12 years NCOF participant
How to run a small / mid-size Operations and reap benefits of a large scale business.
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 2
SURVEY
Private
Public
Start - Up$ 0 - $ 2M
Small$ 1 - $ 10M
Mid$ 10 - $ 50M
Large$ 50M +
Company size
Operations size
No. SKU’s
1 - 100 100 – 1,000 1,000 +
Few Moderate Momentous
No. Employees
1-10 10 -100 100 +
Not-for-profit
Intro
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
SURVEYEvolution of Ops
Traditional Progressive Virtual Business Model(Internal w/ select vendors) (In-house with some overseas
vendor supply chain)(Hands-off / Extensive
supply chain)
Primary Reason(s) for Conference Attendance
Software /Enterprise System
S. Fla. /vacation
Process Improvements/
(Ops flow /labor)
Industrykeep pace
trends/Network
Attend this Presentation(hear Charlie /Rich & John)
VendorRelations / Supply chain
Intro
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 3
Setting the “Culture” and “Values” in place
Metrics Scorecard---------------Supply Chain Management
Optimizing IT Solutions----------------Practical Ways to Optimize Labor Costs
Smart Sourcing
Collaborative – Take away points
Intensive: Making Your Operations More Efficient to Generate ROI
Current Challenges Companies & Operations are facingCurrent Challenges Companies & Operations are facingAgenda
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
Current Challenges Companies & Operations are Facing
What are the major issuesaffecting YOU and your OPERATIONS today?
Open / collaborativeOpen / collaborative
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 4
A grim year
a multitude of headache-provoking issuesng contracts, getting trademarks, setting u
worse only 14
for smallbusiness lending …
The SBA loan volume plunged 36% in 2009 as banks slammedtheir vaults shut to small businesses. “USA Today”
Small business challengers tackle legal, logistical hurdles …contend with , such as reviewing lease terms, drafti p back operations, securing licenses, and maintaining websites. “USA Today – Business”
Small banks say they can’twin in business lending…
Across the USA, banks saythere's a big reason they
aren’t lending more: Regulatorswon’t let them. “USA Today”
Is the Economy Really on the Road to Recovery?54% expect things to be the same or going forward, and 46% expect a W-shaped recovery, % expected toHire in the next six months. “All Business”
It’s April 2010 … who’s having fun out there?
Current Challenges Companies & Operations are Facing
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
Unemployment tops 20%
7 million
Lost Jobs
minus 3.7million ublican”
in eight California counties…The state was one of five, along with Florida …that reached their highest unemployment rates since the government began keeping track in 1976. “LA Times”
lost jobs: Gone forever?...
Most economists don't expect the employment picture to significantly improve anytime this year -- or overthe next few years for that matter. “Money”
49 of 50 States HaveSince Democrats’ Stimulus …
While the President recently claimed his February 2009 stimulus billwill save … as of Feb 2010 the actual jobs lost cum was at
vs. the forecasted +3.5 million by Dec. 2010. “Rep
It’s April 2010 … who’s having fun out there?
Current Challenges Companies & Operations are Facing
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 5
EconomyEconomy
GlobalizationGlobalization TechnologyTechnology
Current Challenges Companies & Operations are Facing
At the macro level:
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
EconomyEconomy
GlobalizationGlobalization TechnologyTechnology
At the micro level:Capital: restricted sources of funding Capital: restricted sources of funding BB--22--C: consumer spending curtailedC: consumer spending curtailed
BB--22--B: Business cutB: Business cut--backs / closingsbacks / closings
Keeping paceKeeping pace
Internal vs. ASPInternal vs. ASP
Virtual world: processes / laborVirtual world: processes / labor
Internal resources vs. outsourcing
Quality / Service levels
Supply chain: schedules / managing
Current Challenges Companies & Operations are Facing
Compliance: GovCompliance: Gov’’t Interventions / Obamacaret Interventions / Obamacare
Culture / Performance Enabler or headacheEnabler or headache
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 6
Economy
Globalization
Restricted sources of funding / capital
Consumer spending curtailed
Business cut-backs / closings
Internal resources vs. outsourcing
Quality / Service levels
Supply chain / schedules / managing
Operations
Capital equipment reqmts – deferred / cancelled
Inventory levels minimal
Sporadic work loads
Clients / product lines - gone
More regulatory / permits / paperwork changes
Business
Coordination diverse work force / Systems integration
Cost trade-offs: short term vs. life cycle
Cost benefits vs. total quality / time
Fewer internal resources – support / 24 x 7
Fewer internal resources – support / direct labor
Dependable / reliant / reactive vendor relations
Security / regulatory / paperwork protocols
Government compliance
Culture / performance
Current Challenges Companies& Operations are Facing What it means to us in this room:
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
Technology
Keeping pace
Virtual world – business / labor
Internal vs. ASP
Operations
Seemingly exponential growth rate
Your own internal I.T. department
Security / Network / Privacy issues
Fewer internal resources – support / direct labor
Business
Enabler or headache?
Current Challenges Companies& Operations are Facing
Glitz or results: mission critical / preferred / wish
Entitlement –or – ownership mentality
Flexibility / Agility
Cross-training / multi-tasking
Skill sets
Fewer internal resources – direct labor
Performance / incentivizing
Inside (legacy) or Out (new)
Labor
Getting things done
Virtual workforce / Quality of work life
3 – 4 careers
Motivators / Entrepreneur vs. employee
What it means to us in this room:
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 7
It’s April 2010 … where are you headed?
Oh boy!Oh boy!
O. K.!O. K.!
Oh s#*&t!Oh s#*&t!
Current Challenges Companies & Operations are Facing
The entrepreneur always searches for change, responds to it, and exploits it as an opportunity.
Peter Drucker
The only thing we know about thefuture is that it will be different.
Peter Drucker
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
Current Challenges …
Metrics Scorecard---------------Supply Chain Management
Optimizing IT Solutions----------------Practical Ways to Optimize Labor Costs
Smart Sourcing
Collaborative – Take away points
Intensive: Making Your Operations More Efficient to Generate ROI
Setting the Setting the ““CultureCulture”” and and ““ValuesValues”” in placein place
Agenda
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 8
Setting the Culture & Values in place
So … What is your Company culture
and WHO sets it?
Open / collaborativeOpen / collaborative
Definition: A blend of the values, beliefs, taboos, symbols, rituals and myths all companies develop over time
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
Legacy“the way its’been”
Collaborative -“we make the
difference”
“They do” “We do”
“Who” sets your OPS culture
“PerformanceOriented”
“What” is your OPS culture“ActivityOriented”
Busy “not myjob”
Efficient “get it’done”
Setting the Culture & Values in place
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 9
Setting the Culture & Values in place
CULTURE
Customer centric – first viewing the issues thru eyes of customer
Pro-active nature – anticipative solutions perspective
Optimize teamwork – internal and external
Actions: EnsureOperators have broader awareness Understand customer requirement, need, delivery
“PerformanceOriented”
“ActivityOriented”
Actions: EnsureWhy --- not just howUnderstand entire scope – not just current process
Actions: EnsureHand off – to – pass offUnderstand operator impact to entire team effortDialogue / meet with team – NOT individuals
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
Setting the Culture & Values in place
VALUES
Accountability with Responsibility – job role with job resultsActions: Ensure
Cost smartOperationally efficient
“Wedo”
“Theydo”
Demonstrated commitment – entitlement is historyActions: Ensure
Continuous improvement Understand
Difference Makers – make a difference – for your company & for yourselfActions: Ensure
Feedback from customersRecognize
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 10
Right players on the bus – players first – then processes
Company Manual / H R guidelines – setting and defining expectations
Setting the Culture & Values in place
BEST OF BREED PRACTICES
Performance Valuations – timely, meaningful, and candid!
Standard Operating Procedures – if you don’t have – develop them!
Focus on Leadership – Leaders do the right things – Managers do things right
Strategic then Tactical – Don’t lose sight of the forest – when in the trees
Lead
Manage
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
Components in a Company Culture
• Create value and belief statements
• Practice effective communication– Daily Huddles, weekly meetings, Monthly reviews
• Have or Create an organizational structure
• Rewards and Recognition– You can not cannot just reward individual performance if the
requirements of your organizational culture specify team work
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 11
Low Cost Ideas to build cultures
• Celebrate the new hires– Send a welcome card before they start– Have cake the 2nd day they start
• Sing off key on birthdays• Seasonal events
– Baseball lunch– Favorite football team apparel day– Olympic department events
• Recognize results• Others?
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
Is all this culture worth it?????
• Whatever shape it takes, your company culture plays a big role in determining how well your business will do and can do in the future.
• Companies with an adaptive culture that align to their business goals routinely outperform their competitors. Some studies report the difference at 200% or more.
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 12
Current Challenges …
Setting the “Culture”
…---------------Supply Chain Management
Optimizing IT Solutions----------------Practical Ways to Optimize Labor Costs
Smart Sourcing
Collaborative – Take away points
Intensive: Making Your Operations More Efficient to Generate ROI
Metrics ScorecardMetrics Scorecard
Agenda
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
METRICS SCORECARDMETRICS SCORECARD
What drives YOUR Operations?
Metrics ScorecardMetrics Scorecard
“How to run a small / mid-size Operations and reap benefits of a large scale business.”
Open / collaborativeOpen / collaborative
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 13
Metrics ScorecardMetrics Scorecard
# orde
rs pro
cess
ed velocity
raw material
finished goods
Work-in-process
purchase orders
receiving
turn-around time
Manufacturing cycle time
On-time delivery
Average hours O/T
Capacity utilization
Average days inventory
Efficiency rate
?
??
?
?
OSHA safety incidentsSupply chain delivery
ROI
Margin contribution
Cost variances
Capital assetutilization
Labor cost per unit
Labor hours
No. e
mpl
oyee
s
product sales?
?
Q&A index
Customer reject ratesGetting orders out!
Cost cuts / savings
Vendor compliance
That which gets measured … gets managedPeter Drucker
Most of what we call management consists of makingIt difficult for people to get their work done. Peter Drucker
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
Metrics ScorecardMetrics Scorecard
Maybe more reasonable to ask what doesn’t?
“About 120 KPI’s are reported and of those, a handful is important”anonymous quote
More relevant question:
Are you good at what you do “efficiency” --- and ---are you good at making money (“profitability”)?
What drives YOUR efficiency anddrives YOUR profitability?
Restated:
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 14
Metrics ScorecardMetrics Scorecard
Question 1:
As the Operations manager, when do you know your month’s performance?
-- or stated another way -- when should you know your month’s performance – and perhaps as importantly, when should others know?
Who in this room is an
OPERATIONS MANAGER ?
Efficiency
Who in this room is an
ACCOUNTING MANAGER ?
ProfitabilityQuestion 3:
How do you talk – “convert” – to one another?
Question 2:
Out of the drivers, which single criteria most defines your performanceto your ownership stakeholders?
Questions…
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
Metrics ScorecardMetrics Scorecard
Answers
When should you know your month’s performance –
On a CURRENT basis (i.e., daily /weekly)
Which single criteria most defines your performance to ownership:
MARGIN CONTRIBUTION
How do you talk to Accounting:
CONVERT
Conversionfactor
Labor Hours / Units Produced“Margin Contribution”
(1- Labor Costs) / Sales $ of Units
Ops “talk” Finance “talk”
“Efficiencies” Convert “Profitability”
Answers…
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 15
Metrics ScorecardMetrics Scorecard
TOOLS
Operations Accounting
Job Order System
Time entries / job account
Orders Shipped (“sales”)
Payroll labor rates
Employee
Unit sale pricing
Monday MetricsWeekly Scorecard
Daily / Weekly reporting capabilities
Current + ConvertOps units to Acctg SalesOps labor hours to Acctg costs
= “snapshot” margin contribution
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
NCOF -- SAMPLE WEEKLY METRICS REPORTProducts Division - TEAM B
JOB COSTING / RATE ALLOCATIONS
EmployeeName jobname TaskName HRS $/hr Total Costs Receiving Kitting Pick/Pack Other/Misc TotalG. Tim Comp A Pick/Pack 20.3 $14.40 $292.75
T. Twana Comp A Pick/Pack 3.6 $13.20 $47.52A. Keith Comp A Receiving 0.0 $13.20 $0.00G. Tim Comp A Receiving 1.5 $14.40 $21.31G. Tim Comp A Shipping 0.7 $14.40 $10.37
T. Twana Comp A Shipping 0.5 $13.20 $7.00 $21.31 $340.27 $17.36 $378.95
A. Keith Misc M Pick/Pack 0.3 $13.20 $3.30B. Earl Misc M Pick/Pack 0.5 $12.50 $6.25
W. John Misc M Pick/Pack 0.5 $15.35 $7.37 $16.92 $16.92
A. Keith Comp B Pick/Pack 6.2 $13.20 $81.84G. Tim Comp B Pick/Pack 0.4 $14.40 $6.05
T. Twana Comp B Pick/Pack 7.2 $13.20 $95.04W. John Comp B Pick/Pack 8.7 $15.35 $133.22G. Tim Comp B Receiving 3.5 $14.40 $50.40
W. John Comp B Stocking 0.5 $15.35 $7.98 $50.40 $316.15 $7.98 $374.53
W. John Comp C Receiving 4.5 $15.35 $69.07A. Keith Comp C Pick/Pack 0.7 $13.20 $9.24
B. German Comp C Pick/Pack 1.1 $15.12 $17.09G. Tim Comp C Pick/Pack 10.9 $14.40 $156.96B. Earl Comp C Pick/Pack 20.4 $12.50 $255.00
T. Tawana Comp C Pick/Pack 0.4 $13.20 $5.02W. John Comp C Pick/Pack 13.9 $15.35 $213.80W. John Comp C Stocking 0.2 $15.35 $3.53 $69.07 $657.10 $3.53 $729.70
W. John Comp D Pick/Pack 9.4 $15.35 $143.96 $143.96 $143.96
A. Keith Def Res15 Min Break 0.3 $13.20 $3.56
B. German Def Res15 Min Break 0.2 $15.12 $3.48
A. KeithDirect 2
Fulfillment
Inventory Maintenen
ce 0.4 $13.20 $5.02
G. TimDirect 2
Fulfillment
Inventory Maintenen
ce 4.5 $14.40 $64.08
T. TawanaDirect 2
Fulfillment
Inventory Maintenen
ce 1.0 $13.20 $13.60
T. TawanaDirect 2
Fulfillment Misc/Other 0.3 $13.20 $4.36 $94.09 $94.09
T. Tawana Comp F Pick/Pack 5.3 $13.20 $69.96W. John Comp F Pick/Pack 0.5 $15.35 $6.91 $76.87 $76.87
Costing
perspective“Convert Ops to Acctg”
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 16
Products Division - TEAM B RECEIVING Actual Program
ORDERS / SALES # OF HRS RATE TTL REC # KITS RATE TTL KIT # OF PCS RATE TTL P/P Labor Costs Margin Margin %Comp A 1.50 25.00$ 37.50$ 0 25.00$ -$ 37 22.00$ 814.00$ 851.50$ 37 $378.95 472.55$ 55.50%
Comp B 0.50 18.00$ 9.00$ -$ 515 1.42$ 731.30$ 740.30$ 117 $374.53 365.77$ 49.41%
Comp C 3.50 25.00$ 87.50$ CONSUMER 0 25.00$ 156 0.55$ 156
CORPORATE 0 0.05$ 250 1.60$ 225 $729.70 593.60$ 44.86%SALES/TRADE 0 50.00$ 625 1.20$ 567
Comp D - 30.00$ -$ 0 25.00$ -$ 17 3.00$ 167 2.25$ 67 $143.96 57.79$ 28.64%
Comp F 25.00$ -$ 25.00$ -$ 85 1.45$ 123.25$ 123.25$ 85 $76.87 46.38$ 37.63%
Comp G 6.70 25.00$ 167.50$ 18.75$ -$ 594 2.15$ 1,277.10$ 1,444.60$ 555 $733.16 711.44$ 49.25%
Comp H - 25.00$ -$ 0 25.00$ -$ 33 2.40$ 79.20$ 79.20$ 33 $47.27 31.93$ 40.31%
Comp L - 25.00$ -$ 25.00$ -$ 346 2.05$ 878.05$ 567 $483.45 394.60$ 44.94%675 0.25$
Comp M - 30.00$ -$ -$ 306 1.45$ 443.70$ 443.70$ 306 $322.92 120.78$ 27.22%
Comp N - 25.00$ -$ 0 25.00$ -$ 8 12.50$ 100.00$ 100.00$ 1 $37.44 62.56$ 62.56%
25.00$ -$ -$ 0 -$ #DIV/0!
Comp P - 25.00$ -$ -$ 55 1.85$ 101.75$ 101.75$ 55 $57.82 43.93$ 43.18%
TOTAL 12.20 301.50$ 0 -$ 3,769 5,985.90$ 6,287.40$ 2,772 $3,386.06
6,601.35$ # OF PKGS RATE
DEPARTMENT NAME $/HR Reg Hrs OT Hrs TOTAL - $ Misc 299 1.05$ 313.95W/ H - Team B A. Keith 13.20$ 40.0 527.34$ Misc 0 0.35$ W/ H - Team B B. German 11.25$ 38.3 431.21$ Misc 0 1.05$ W/ H - Team B G. Tim 14.40$ 51.1 11.1 859.68$ -$ W/ H - Team B T. Tawana 13.20$ 31.8 419.76$ TTL 313.95W/ H - Team B W. John 15.35$ 48.0 8.0 797.94$ W/ H - Team B B. Earl 12.50$ 39.9 498.75$
249.0 19.1 3,534.69$
TTL MARGIN 3,066.66$ Variance to Objective
3,534.69$ MARGIN % 46.5% Wk Objective 42.5% 4.0%
NCOF -- SAMPLE WEEKLY METRICS REPORT
Trade Show Order --> 201.75$
Total
Consumer Orders -->
Orders
201.75$
Orders
NOTES
1,323.30$ Sales & M
TTL WH LABOR
Orders
Notes
TTL WH REVENUE
8.0 O/T - authorized
Consume
KITTING PICK/PACK
$0.00 1,235.80$
Orders
Orders
Orders
Orders
8.0 allocated to Div A
TTL CUST REV # OF ORDERSOrders
ConsumeCorporate
Trade/Cor
Orders
Orders
878.05$
OTHER REVENUE
8.0 O/T - authorized
Acctg Revenue Ops costs
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
Metrics ScorecardMetrics Scorecard
Monday MetricsWeekly Scorecard
Can be prepared “seamlessly” thru systems integration export capabilities
Prepared WITH and FOR the Operations Mgr prior to presentation
Allows for “real time” management decision making by Ops Mgmt
Four weeks a month – fosters the managing of expectations along with results
Not waiting until end of month financial reporting to find out YOUR contributionmargin to the company’s financial position
Becomes “the” working document between Operations and Accounting
Enables “current” resolution of reporting glitches and/or jobs “fall thru cracks”
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 17
Current Challenges …
Setting the “Culture”
Metrics Scorecard…---------------
Optimizing IT Solutions----------------Practical Ways to Optimize Labor Costs
Smart Sourcing
Collaborative – Take away points
Intensive: Making Your Operations More Efficient to Generate ROI
Supply Chain ManagementSupply Chain Management
Agenda
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
Supply Chain Management
• Movement of goods from origin to final destination.
• International• Domestic• 3PLs
• Process to manage
Supply ChainManagement
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 18
What are Upstream Improvements?
• Things that can be done earlier in the Supply Chain
• Opportunities for you to work closer with your vendor/factory base
• Creates Value Added benefits for you by your vendor.
Supply ChainManagement
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
Examples of Upstream Improvements
• Factory• Labeling merchandise• Labeling cartons• Security Tags
• International Freight Forwarders• Labeling Cartons• Inspections• Cubing and weighing of cartons• Sort and Segregating
Supply ChainManagement
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 19
Examples of Upstream Improvements
• 3PL• Labeling for final destination• Sorting and Segregation• Redirecting of cartons• Inspections• Repacking• Cubing and weighing of cartons• Pick and Pack• Warehousing
Supply ChainManagement
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
Why Upstream Improvements?
• Ability to fix a problem earlier in the chain.
• Ability to do redundant work at a lower cost.
• Ability to flow goods faster to final destination.
Supply ChainManagement
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 20
Why do you want Strategic Partners?
• Allows you to reduce your cost and them to add value added services.
• Makes both of you rely on each other• Working together to find ways of doing
things.• Not necessarily vendors only (carriers,
3PLs)
Supply ChainManagement
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
What Strategic Partners do
• Warehouse operations
• Operation efficiencies
• System enhancements
• Innovation
Supply ChainManagement
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 21
Current Challenges …
Setting the “Culture”
Metrics Scorecard…---------------
Supply Chain Management
----------------Practical Ways to Optimize Labor Costs
Smart Sourcing
Collaborative – Take away points
Intensive: Making Your Operations More Efficient to Generate ROI
Optimizing IT SolutionsOptimizing IT Solutions
Agenda
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
Optimizing IT SolutionsOptimizingI.T. Solutions
VISIBILITY – Full Circle IT
INTEGRATE YOUR PROCESSES
PUSH DATA
GET MOBILE
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 22
What do you get from Visibility?
• Knowledge
• Communication
• Flexibility
OptimizingI.T. Solutions
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
Visibility Supply ChainSupply
BaseConsol Center
LA 3PL Warehouse
RetailStores
BakersHQ
BOOKING CREATED
SCANRECEIPTS
PRINT CARTONLABELS
AVAILABILITY
‘LAST MINUTE’ALLOCATIONS
SHIPMENT LABELS
PLD to SMALL PACKAGE CARRIER
SCAN TOCONTAINER
SCANRECEIPTS
ACCEPT BOOKING
DELIVERSHIPMENT
Accept ‘booking’ if in compliance with Ship Window
STORE DELIVERIES
SHIPMENT LABELS
OR
OptimizingI.T. Solutions
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 23
Full Circle Solution
BAKER’S SCM SOLUTIONDashboardTrackingShipping
OptimizingI.T. Solutions
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 24
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 25
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 26
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 27
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 28
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 29
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 30
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 31
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 32
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 33
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 34
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 35
INTEGRATE YOUR PROCESSESThe convergence of disjointed systems80%+ of Web Site e-commerce engines are disjointed:
e-bay, Yahoo shopping, Volusion, global Web, home-grown.
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
Common - Disjointed E-Commerce Processes
OptimizingI.T. Solutions
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 36
Integrated - OptimizedOptimizingI.T. Solutions
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
Which do you want?OptimizingI.T. Solutions
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 37
To change or Not to Change• Data Entry of Order- 100 orders per day
– 3 minutes for entry, verification and correction– 3x100=300 minutes/60 per hour=5 hrs p/day– 5 hrs x $12 p/hr x 250 working days $15,000.00 per year
• Order Import takes 1 hr per day – 1x12 x 250 working days $3000.00 plus a program cost of $2000
Total Savings $10,000
OptimizingI.T. Solutions
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
Push Vs PullValue Added Services
to Your Customers
• Push:– Proactively disseminating information to the
appropriate individual• Pull:
– Requires the individual to retrieve the necessary data
Benefits to your customer: The convenience and up-front timing of getting information versus retrieving data.
OptimizingI.T. Solutions
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 38
Data Push• Vendor > Partner:
» Conversion of shopping cart into Order Entry system» E-mail with new orders» Email from suppliers with new shipment notification
(E-ASN)» SMS to remote users» Dashboard for operational resources
• Internal > Internal: » Email for problem resolution» SMS to remote users
• Partner > Customer/Client: » Email to customer for order status» SMS to remote users
OptimizingI.T. Solutions
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
Mobility
• Wireless Devices:» UPS Tracking» Barcode scanning» Custom (SAAS) apps» Mobile adaptable Websites» Zip code price checkers» Wireless Scanners» RFID tags
OptimizingI.T. Solutions
Bring the data to the moving Masses (Operators, Managers, Customers)
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 39
• Cloud Computing• Corporate Business Continuity Plan• Allows company mobility• Secures Business continuity• Outsourced computing resources• Cost Effective Big Forklift
Clouds in my coffeeUnclouding the information for business growth
OptimizingI.T. Solutions
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
Current Challenges …
Setting the “Culture”
Metrics Scorecard…---------------
Supply Chain Management
Optimizing IT Solutions----------------
Smart Sourcing
Collaborative – Take away points
Intensive: Making Your Operations More Efficient to Generate ROI
Practical Ways to Optimize Labor CostsPractical Ways to Optimize Labor Costs
Agenda
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 40
Practical Ways toOptimize labor costs
Cross Train / Multi-task
Flexible work weeks / less than 40 hour work weeks
INTERNAL – “traditional”
Practical Ways to Optimize Labor Costs
Q&A / Performance – monitor efficiency & quality
Develop and implement incentive programs
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
Practical Ways toOptimize labor costs
INTERNAL – “traditional”
Practical Ways to Optimize Labor Costs
Utilize temps /1099 – for non-critical processes
Seek schedule accommodations – work with Sales
Align compensation practices to induce improvements
Shift away from annual “entitlements” / freeze some benefits
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 41
Practical Ways toOptimize labor costs
Cost savings thru core competent partners
Cost savings with less H R / benefits (e.g. “Obamacare”)
SMART SOURCE – “virtual”
Practical Ways to Optimize Labor Costs
Defer / delay / minimize consulting fees
Eliminate services where practical: cleaning / shredding, etc.
Upstream tasks at most appropriate place / time
Utilize technology to your benefit – integrate out redundancy
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to Streamline processes
• 2nd set of eyes• Better way of doing it• Redundancy• Real need?
• Upstream Process improvements• Innovation• Magazine articles• Trade Shows
Practical Ways toOptimize labor costs
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 42
Working with others inside your company
• Communication with internal team
• What you think is better might have problems down the line.
• Listen and work towards a resolution.
• If at first you don’t succeed, Keep trying.
Practical Ways toOptimize labor costs
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
Current Challenges …
Setting the “Culture”
Metrics Scorecard…---------------
Supply Chain Management
Optimizing IT Solutions----------------
Practical Ways to optimize…
Collaborative – Take away points
Intensive: Making Your Operations More Efficient to Generate ROI
Smart SourcingSmart Sourcing
Agenda
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 43
SMART SOURCE
What’s RIGHT for you?
In-source Out-sourceCombination
costs
processes
employeesschedules
qualitymanagement
investment
liability
Smart Sourcing
delivery
logistics
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
In-Sourcing
• Complexity• How difficult is the process you are doing?• Specialized equipment or knowledge?
• Security• High Value goods that need constant supervision?
• Timing• Cost• Location
Smart Sourcing
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 44
Out-Sourcing• What are your core competencies?
• Once you answer this deceptively simple question, you will begin to shed all activities that take you away from your core competencies.
• Cost – Quality - Time• Evaluate on a three dimension criteria of total value
• Convert fixed costs to variable costs• Utilize a pay for what you use relationship
• Superior Process• Benefit from best of breed processes and depth in experience
• Strategic Partnership• Accrue the benefits that come from resources solely dedicated
• Trust vs. control• Evolve to the transition unfolding globally and technically
• Re-align to manage results – not tasks• Focus on that which is most important – performance
Smart Sourcing
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
Combination
• Multiple locations• Regional locations
• Flow out to customers• Peak times of year, outsource part of business to
flow faster.
• Cost• Look at this from all points.
Smart Sourcing
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 45
Current Challenges …
Setting the “Culture”
Metrics Scorecard…---------------
Supply Chain Management
Optimizing IT Solutions----------------
Practical Ways to optimize…
Smart Sourcing
Intensive: Making Your Operations More Efficient to Generate ROI
Collaborative Collaborative -- Take Away PointsTake Away Points
Agenda
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
Entrepreneurial Principles thatcan be Applied to any Size Business
Take AwayPoints
Make constant change a part of everyday business
Invest in your people and create a culture
Trust in others so YOU can delegate and grow
Focus on your strategy: it’s easier to carve a niche than create a market
Seek advise and input – but follow Collin Powell’s 30%-70% decision making criteria
Listen to customers – they have some of the best ideas
Protect your brand
Think BIG even if you’re small!
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 46
Negotiation Strategies to lower your costs
Take AwayPoints
Negotiate no matter how small you thinkyou are
Always have secondary sources
Write a simple Request for Proposal
Don’t get too comfortable with the status quo
If you’re not embarrassed, you didn’t askfor enough
Money is not the only issue…
Things (VALUE) that can be Negotiated
Palletizing requirements
Time of day delivery
Warehousing additional product for you
Time sequencing product flow / payments
Co-op advertising
Over / under run rate
Discounts / bonus / penalty stipulations
Extended payment terms
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
TODAY’S THOUGHTS to TODAY’S CHALLENGES
Take AwayPoints
Economy
Globalization
Restricted sources of funding / capital
Consumer spending curtailed
Business cut-backs / closings
Government compliance
Internal resources vs. outsourcing
Quality / Service levels
Supply chain / schedules / managing
Culture / performance
Reap the benefits of “upstream” Supply chain– learn to manage and harness
Make decisions on total value, not just short-term costs– Value: Quality + Schedule + Costs
Instill a culture of what you CAN do – not what you can’t
Until things turn around, make the best of what you have– “survive then thrive”
Step up to manage your business– not your business manage you
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
How to run a small / mid-size Operations and reap benefits of a large scale business Page 47
TODAY’S THOUGHTS to TODAY’S CHALLENGES
Take AwayPoints
Labor
Technology
Always be thinking Value Added to your customers - external and internal
Focus on performance and benefits to YOU – not glitz
Integrate throughout your Ops organization– make users “champions”
Candidly recognize your Core competencies - smart source accordingly
Instill flexibility and agility– cross train
Getting things done
Virtual workforce / Quality of work life
3 – 4 careers
Motivators / Entrepreneur vs. employee
Get the right employees on the bus– delegate and empower
Keeping pace
Virtual world – business / labor
Internal vs. ASP
Enabler or headache?
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
It’s April 2010 … where are you headed?
Wahoo!!Wahoo!!
Current Challenges Companies & Operations are Facing
The only thing we know about the future is that it will be different. Peter Drucker
THE PLAN
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
top related