Inventory Is Evil!™ - The Classic Inventory Floating Over Problems

This is the classic image of a boat representing inventory. The higher the water level, more inventory. The rocks represent problems within the business. As you lower the water level/inventory the problems are exposed.

Remember, Inventory Is Evil!™ - Because it delays and hides problem resolution.

The three common barriers when planing on inventory velocity improvements.

  1. Fear of the unknown. Making the issues bigger than actually. Nothing is ever as bad as the initial fear.

  2. Lack of total leadership engagement. Inventory velocity improvements are a culture shift requiring total team involvement, not just supply chain.

  3. Where to start? It’s a big elephant. Just one or tow small areas. Get early successes, build momentum and team confidence.

Inventory Floating over Problems

What are your three concerns that are keeping you from starting?

  1. ______________________________________________?

  2. ______________________________________________?

  3. ______________________________________________?

Art Koch's Profit Chain™ - Service Parts Procurement Strategy

How much data do you use to analyze demand when quoting service parts?

If you’re not using at least three years of demand to quote service parts your leaving money on the table.

How are you consolidating the spend? Are you working the rationalize your supply base? Once again, you are likely leaving money on the table. Within in the service parts sector, do your partnership suppliers a favor, consolidate the spend, this will increase their long-term volume and improve total cost of ownership.

Entropy Busters™ - Cheap is Cheap - Buyer Beware!

A quick way of adding Entropy into your organization is via purchasing.

If you’re always buying from the lowest price vendor, you’re running a purchasing department.

If you’re working to understand the TOTAL cost of ownership and rewarding suppliers that support; excellent customer service, flexibility delivery, outstanding quality and jointly deliver ongoing cost reductions, you have a world class procurement function that builds supplier partnerships.

The best way of becoming an Entropy Busters™ zealot. Never open the door and let it in…

Ask yourself and the team these three questions.

  1. What percent do we reward contact to the lowest price bid?

  2. Do we have a supplier score card and are the rankings credible?

  3. What percent of suppliers are jointly working with procurement, supplier quality engineering and design engineering?

If you don’t readily have the answers to these questions, you’re letting entropy into the process.

Remember, Cheap is Cheap - Buyer Beware!

Cheap is Cheap - Buyer Beware!

Cheap is Cheap - Buyer Beware!

Three Powerful Elements Small and Medium Sized Companies can do to improve their Supply Chain Management - Art Koch's Profit Chain™

During a thought leadership meeting I was asked what can small and medium sized companies do to improve their Supply Chain Management.

  1. Increase Professionalism

  2. Have meaningful Key Performance Indices - KPI’s

  3. Improve Inventory Velocity

Art Koch's Profit Chain™ - Tenacity And Will Power Win Every Time

I like to say “If it were easy, it would have been done”. This is what I like to call; Unlock the Art of Change™. These are used to get people to shift their frame of focus and start thinking differently.

Often I see individuals just stop trying, even after two or three attempts. Today we live in a society that craves instant gratification, when coupled with Leaders looking for the next big bang, an organization could be doomed.

It’s easier to quit. It’s socially more acceptable to not dream big.

It’s hard to fail hundreds of times before you get it right the first time. It’s hard to be in the gym, library, or lab when all your friends are at the party.

Tenacity And Will Power Win Every Time

It’s sweet to smell success. It’s sweet to feel the satisfaction of knowing you’re right.

Just ask; Elbert Einstein, Alexander Graham Bell, Thomas Edison, Jim Womack, Edwards Deming, Jonas Salk (Cure of Polio), and many sports figures.

If It Was So Easy, It Would Have been Done Already!

Embrace the challenge!

Be the Leader You Always Believed You Could Be!

Art Koch's Profit Chain™ - Process Improvements

Just completed an excellent two day session for Core User training of team members at Optimas Solutions. We not only were able to train the core team, we also validated our design with significant data for ToolsGroup SO99+ Inventory Optimization and Replenishment Planning modules. Step functional forward for all stake holders.

Here are some photos of the training session.

Claudio imparting his wisdom.

Claudio imparting his wisdom.

Can you “smell” the focus?

Can you “smell” the focus?

After significant hard work and success. It was time for a little fun and team building. Both Supply Chain and IT needed a couple hours to let off some steam and energy. I think bowling did the trick.

Team Supply Chain plotting their strategy for the next game.

Team Supply Chain plotting their strategy for the next game.

We learned Team IT could bowl!

We learned Team IT could bowl!

And Team UK plotting an exit....

And Team UK plotting an exit....

Next step, CRP! Let’s show the same drive, grit and determination. Success has no boundaries!