Category: supply chain

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A Hurricane and the Port Workers Strike Force Conversation About Business Resilience and Continuity

Hurricane Helene is one of the biggest storms to have hit the Gulf Coast in years. An analysis done by a scientist at Colorado State University, Helene was larger than almost every storm that has hit the gulf since 1988. Only Opal and Irma were bigger than Helene. The toll in life and property is not small, nor is the disruption of services. There are troubles enough getting help and supplies to impacted areas, so the focus on doing everyday business just isn’t a thing.

To make matters worse, there is a strike going on right now. A big strike that is already impacting supply chains nationwide, and things will only get more strained the longer it lasts.

“The 2024 United States port strike is a labor strike involving over 45,000 port workers who are part of the International Longshoremen’s Association (ILA), impacting 36 ports across the United States primarily along the East Coast and the Gulf Coast.” (Wikipedia)

While there are many people currently facing larger life issues, the entire nation is forced to consider what happens now, and if they weren’t directly impacted by these events, what would they do if they were? It is a bit of a wake-up call for many business owners, because business interruptions can come from all angles, and it is always best to have made at least some attempt at a set of plans for when things happen.

One critical type of plan is about making the business more resilient and better able to recover or adapt. It’s a broad strategic plan that focuses on overcoming unexpected disruptions and adapting to changing conditions or circumstances. This includes addressing business continuity, which is about how operations may be maintained during a crisis. Business continuity planning is part of what makes a business resilient.

The Importance of Business Resiliency

Business resiliency has become a critical factor for success. In today’s rapidly changing world, the ability to stand up to or quickly recover from disruptions is no longer a luxury but an imperative. Resilience means being able to adapt to changes and challenges swiftly, maintaining continuity and minimizing losses. Customers want reliability, so a business that can continue to deliver products and services despite disruptions will build trust and loyalty, leading to long-term relationships and a strong reputation.

A resilient business will have contingency plans for finances, creating buffers to mitigate the impacts of short-term shocks so investments in long-term growth continue. Also, where competitors may struggle to cope, resilient companies may not simply continue to operate but even capitalize on new opportunities that arise from the changing landscape. When a business is prepared for disruptions, it can focus on growth and innovation rather than mere survival.

Technology plays a big role in developing resilience. Cloud solutions can ensure data is backed up and accessible from anywhere, cybersecurity solutions help protect businesses from cyber threats, and automation technologies streamline operations while reducing dependency on manual processes.

Prioritizing resiliency is crucial for small businesses to navigate uncertainties and thrive.

Mendelson Consulting and Noobeh cloud services help businesses of all sizes improve their agility, streamline operations and implement the technologies and services necessary to shore up business and operational continuity and improve overall resilience.

jm bunny feetMake Sense?

J

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Data Gets Lonely When It’s Isolated

EDI Helps Manufacturers Increase Efficiency and Improve Profitability

More efficient processes yield more revenue, it’s that simple. Imagine being able to seamlessly integrate data across the entire supply chain and then imagine how that integration could increase the efficiency and deliver more revenue to each link in the chain.

Every manufacturing CEO wants to increase operational efficiency and lower costs, helping to boost revenues and improve profitability. Yet there is an area which has often been overlooked by businesses, and this is the area of B2B integration. While some methods have delivered degrees of success, broad-based solutions remain elusive to many.

The problem is in the number and types of data sources a manufacturer deals with on a regular basis. With a network of partners and suppliers, each using their own data formats and transfer methods, the volume and variety of information flowing can be overwhelming. The result is siloed data, increased pressure on information technology and management resources, disconnected workflows and slower processes.

IDC’s Manufacturing Insights’ webcast IDC FutureScape: Worldwide Manufacturing Predictions once suggested that nearly 30% of manufacturers would make significant investments toward increasing visibility and analysis of information exchange and business processes, within the company and with partners. That was in 2015. Today, data integration and process improvements continue at a fevered pace as technology is helping businesses gain new data that brings new insight and sparks change.

The integration of Electronic Data Interchange (EDI) is a fundamental first step in improving how a business works with trading partners as well as internally. EDI has been around for many years and refers to the transfer of structured data between two organizations or “trading partners” using a set of standards that define common information formats to facilitate the exchange. By adhering to the same standards, two different organizations can electronically exchange documents (POs, invoices, shipping notices etc), seamlessly and regardless of geographic location.

Simplifying business processes, reducing operating costs, increasing end-to-end visibility, reducing errors, and speeding up operations and responsiveness… these are the many benefits to be experienced when EDI and non-EDI information streams are processed in the same manner when it comes visibility, exception-handling, notifications, role-based access etc.

Unfortunately, not all trading partners use EDI (or implement it in the same manner). To get their documents into a usable format, manufacturers find themselves using manual processes or writing custom scripts. Either way, it means that documents are flowing through entirely different processes for EDI and non-EDI business partners, which significantly complicates matters and adds unexpected costs and complications. Addressing this is one of the reasons why modern manufacturers are finding an increased need for connecting with organizations like Mendelson Consulting who can help identify and address situations that out-of-the-box EDI does not.

The pressure is mounting for manufacturers to produce more with less resources. Mendelson Consulting understands what makes EDI complicated and has the experience and expertise to help growing enterprises overcome challenges in design and implementation, making broader integration possible and greater improvement achievable.

jm bunny feetMake Sense?

J

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Preparing Your Business for Exploding Growth

Preparing for exploding growth in a business requires careful planning and strategic decision-making. To develop the information necessary to support these activities, businesses must implement their processes and systems to properly collect the data required. Unfortunately, many organizations fail to develop the systems which will support increased activity and business growth, only recognizing after the fact that the process support and the data they need isn’t there. To prevent being caught off guard with more business demand and not enough organization to support it, follow these recommendations to set the business up for success over the long run.

Set clear goals and adjust as required. You need to know what the business purpose is… the objective you hope to achieve with all this activity. Establish SMART goals – specific, measurable, achievable, relevant, and time-bound. With a set of smart goals and a well-defined objective, the business has a clear direction and a guide to assist in decision-making.

Build infrastructure that is scalable. If the business infrastructure can’t handle increased demand, the business can’t grow effectively. Scalable information technology and software systems, robust production capabilities with adequate human resource availability, and increased efficiency in supply chains will help the business meet increasing demand, while improved reporting and business intelligence helps to anticipate potential bottlenecks, allowing for plans to be developed to address them.

Make sure finance and accounting are set for growth. Strengthen overall financial management and review your financial processes to ensure they can accommodate growth. Implementing the right systems and software is necessary to not just optimize production and operations, but to provide a foundation for establishing sound accounting and financial practices which will help the business secure funding and manage cash flow effectively. A good way to evaluate your preparedness for growth is to prepare financial forecasts and stress tests to gauge your business’s financial resilience under various growth scenarios.

Streamline operations and automate where it makes sense. Evaluation of businesses processes is an ongoing task if your business is to continuously work to improve efficiency and effectiveness. Where opportunities for optimization and improvement exist, consider using automation and technology solutions to help streamline operations and reduce manual effort while remaining focused on enhancing customer experience and satisfaction through streamlined processes and improved service delivery.

Plan for Risk and Contingencies. You should try to identify potential risks and challenges associated with rapid growth, such as increased competition, supply chain disruptions, or changes in customer preferences. Develop contingency plans to mitigate these risks and ensure continuity of the business and operation. It may even make sense to consider diversifying your revenue streams to reduce dependency on a single market or product.

Monitor, adjust and adapt as needed. Key performance indicators (KPIs) should be regularly monitored, as should market trends, to stay informed about your business’s progress and to stay on top of industry developments. Use data analytics and reporting tools to gain insights and make data-driven decisions instead of operating on emotion. The business that plans for growth must remain agile and adaptable, adjusting strategies and operations as needed to accommodate changes in demand as they occur.

Preparation for rapid growth requires a proactive approach and continuous evaluation of your business’s readiness. Regularly reassess your strategies, make necessary adjustments, and stay focused on delivering value to customers as you scale.

Mendelson Consulting and the Noobeh cloud services teams are advisors and consultants with expertise in scaling businesses, and can provide valuable insights, guidance, and support throughout the growth process and beyond.

jm bunny feetMake Sense?

J

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Is Your Business IT Ready for Industry 4.0?

Over the past several hundred years there have been trends which revolutionized industry and manufacturing around the world… steps taken in an industrial revolution which advanced the evolution of civilization and life as we know it. The first revolutionary phase was combining mechanization with steam and waterpower, and the second was the combination of mass production with electricity. The third was the rise of electronics, IT systems and automation. We are now at the start of the fourth phase of industrial revolution.

PwC’s Insights suggests that Industry 4.0 “refers to the fourth industrial revolution, which connections machines, people and physical assets into an integrated digital ecosystem that seamlessly generates, analyzes and communicates data, and sometimes takes action on that data without the need for human intervention.”

This next phase advances on concepts introduced through digitization and connected frameworks, tying in the industrial IoT (Internet of Things) and smart manufacturing. This meshed model relies on interconnectivity of systems, lots of automation at high levels, machine learning and AI… all collecting and generating data in real-time.

Where physical operations and production join with smart digital technologies, big data, and machine learning, businesses can forge systems which focus directly on manufacturing and supply chain management, gaining new insights and getting actionable data at all levels.

Virtualizing physical resources and digitization of analog data is now coupled with improved access to and management of the platforms. Rather than building out on-prem physical servers and systems, businesses are finding that the agility, scalability, and fault-tolerance of the cloud is necessary when designing an operation that connects, communicates and collects data, performs intelligent analyses, and potentially acts without people getting directly involved.

Every company is different, but all face a common challenge — the need for connection and access to real-time insights across processes, products, and people.

The consulting team at Mendelson Consulting and our NOOBEH cloud services group know how to get businesses in the best position to implement the tools and services that will propel the operation forward. From the most popular and powerful small business financial software to cloud platforms which enable connectivity in applications and workflows, we understand what it takes to help small businesses transform.

jm bunny feetMake Sense?

J

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Direct-to-Consumer Causing Manufacturing Logistics Issues

Manufacturers have traditionally been positioned as a link in the long chain of supply. Somewhere between raw materials and finished products is where the manufacturer exists, transforming the materials into products that can be resold via distributors and wholesalers.

The supply chain was linear and relatively predictable, but that is all changing. With the introduction of broad internet connectivity, web-based services, large e-commerce platforms and increasingly innovative and competitive new logistics players, the supply chain is becoming a spiderweb of connectivity and communication, with linear approaches out the window and, to some extent, predictability along with it.

The economy we have today is an environment where customers demand more direct and personal approaches, and producers are being forced to find ways to accommodate. With the huge e-commerce platforms like Amazon and Alibaba, along with more direct-to-consumer channels, manufacturers are being turned into direct-to-consumer suppliers. Acting as drop shippers for the seller, the manufacturer isn’t shipping bulk or volume to distributors or wholesalers but smaller shipments direct to the consumer.

Many retail stores have now become more fulfillment locations than the place where the customer buys. This is causing tremendous change in logistics tools and approaches because the size of shipments is becoming smaller while the number of deliveries – and delivery locations – is only increasing.

Customers can go right to the brand’s website and buy direct, driving increased focus on building brand value and improving the overall customer experience. With the demand from consumers for flexibility in how and where they buy, retailers have shifted their approaches to bring e-commerce into the brick-and-mortar stores. This is where online and offline sales channels come together, creating pressure in ordering and fulfillment systems to offer the flexibility and experience consumers want.

While this converged channel model requires businesses to make new and continued investments in e-commerce and digital solutions to enable the flow of orders and information, it also delivers several potential benefits to the business, including the ability to better manage growing customer expectations, better compete in the digital marketplace, and address disruptions in the supply chain by having alternative options.

Delivering the goods has always been an operational challenge, with success often measured in performance and cost. Today’s marketplace requires more agility and flexibility, which means the role of supply chain managers is more strategic than ever. Simple logistics now has a direct impact on the customer’s decision to buy now, as well as buying again later.

jm bunny feetMake Sense?

J