2016 Smart Manufacturing Summit: Solutions Exchange Takeaways and Best Practices
Raw material inventory
How much raw material inventory do you maintain relative to revenues—what is the balance between what is in the “attic versus what is in the garage”?
• The customer expectation is to maintain the same order size even if it is in excess, but they expect the vendor to store the excess inventory at their expense.
• Inventory is considered a competitive advantage through reverse auction pricing;
• Vendors can be pre-qualified through an accurate quality and capacity audit.
• Check “Attic” for tooling and organization of tooling—get functional capacity down to the “Garage”.
Global suppliers
Finding good global suppliers is a challenge. Few manufacturers in our group felt they could find suppliers that could service outside North America well. There is a significant pricing and distribution differential.
Global risk
Supplier globalization costs have increased in China. It is challenging picking good suppliers and distributors globally. Have “What if” contingencies in place. Will a customer accept a commodity product if a custom solution is not possible because of a disaster? Make sure to have catastrophic plans and back up actions in place. Have a friendly agreement with your competitors. They have your back in a catastrophe and vise-versa.
• Review your insurance policies, particularly reflecting overseas exemptions. Review coverage frequently and know details.
On-demand production
This is great in theory, but difficult in execution. The additive process is excellent for some industries, but not mature enough to scale. Yet, the customer wants “just in time” products and services.
• Look to additive manufacturing for customized, small run solutions needing 24-hour turnaround.
Accurate forecasting
Customers are consistently pushing back on mistakes on order size and want the manufacturer to bear the risk when they miss their forecasts.
• Slow-moving inventory needed to be moved within a year or it should be written off.
• One manufacturer wrote it off to the Product Managers’ margin so that it could be addressed within the quarter. Otherwise the costs would get too big. Maintaining off -products is too costly and difficult.
• Analysis of risk management of overstock and obsolete products is essential and manufacturers must determine who in the supply chain is holding it.
Speed of delivery
Improve speed of delivery by manufacturing smaller batches and keep suppliers domestic where possible as global presents supply chain challenges. “Consignment Inventory” works well to manage market intelligence.
Facilitator: Rick Smith, President Additive Manufacturing Council
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1:00 - 5:00 pm
Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process
Executives expressed frustration with their current strategic planning process. Issues include:
Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns. They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning. Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process. This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented. If you are ready for a Strategic Planning tune-up, select this workshop in your registration form. The additional fee of $695 will be added to your total.
2:00 - 5:00 pm
Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations.
Limited space available.
10:30 - 5:00 pm
General’s Retreat at Hermitage Golf Course
Sponsored by UBS
General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.
The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.
