Dan Marino

🎯ATS Aerospace Outcomes   Cost Reduced by Tens of Millions of Dollars, Production Increased, Efficiencies Implemented, Best Practice Supply Chain Processes Implemented …   30+ years serving many in procurement, project finance readiness consulting, and management consulting.   ☑ https://ats-business.com   #consulting #finance #investment

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July Manufacturing Metrics The Institute of Supply Management (ISM) has issued its July recap. The Manufacturing PMI® dropped to 46.8%, marking the fourth consecutive month of contraction and the 20th in the last 21 months. Key metrics showed declines: New Orders Index fell to 47.4%, Production Index to 45.9%, and Employment Index to 43.4%. Conversely, the Prices Index rose slightly to 52.9%, and the Supplier Deliveries Index indicated slower deliveries at 52.6%. Imports came in at 48.6, still in contraction mode, but up a tick from June's 48.5. For what it's worth, by import friends are telling me that they feel the uptick. Overall demand and production declined, reflecting weak output and reduced headcounts. Despite this, inputs like supplier deliveries, inventories, prices, and imports were generally accommodating. The manufacturing GDP contraction expanded to 86%, with 53% of sector GDP showing significant weakness. All major manufacturing industries contracted, with only five industries, including Printing and Petroleum & Coal Products, reporting growth. Economic conditions, federal monetary policy, and other factors kept companies hesitant to invest in capital and inventory, further pressuring profitability.

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The crucial step most buyers skip when quoting new suppliers . . . Even in the best of times, purchasing teams are under enormous pressure to deliver costs savings. Manufacturing purchasing leaders are saying that cost reductions are even more urgent in 2024. Quoting new suppliers has become the norm for most manufacturers looking to reduce costs on their purchased material. But don’t pull the trigger on the RFQ’s too quickly – it’s vitally important to make sure you’re quoting the right suppliers first. Without a robust process for vetting suppliers, you’ll either end up with a bunch of “savings opportunities” that are really false hopes or even worse, wasting time and resources on supplier audits and customer validations that end up failing. Here’s three simple steps to vet suppliers before you include them in RFQs: 1.     Identify the important supplier attributes that make their way into supplier selection. These should be a combination of capabilities (right manufacturing processes, experience in your industry), desire to do business with your company (fit for product mix and volumes, willingness to achieve target costs), and available capacity. 2.      Get consensus on what you’re looking for in a new supplier. Work with stakeholders to develop an “Ideal Supplier Profile” with best case targets for each important attribute. Then circle back and define the least acceptable condition for each. 3.     Interview potential new suppliers and score them against the Ideal Supplier Profile. We use a red/yellow/green designation – for each attribute, if a supplier doesn’t meet the least acceptable condition, it’s a red. If they meet the best case targets, it’s a red. Anything in between is a yellow. You’ll find this simple step – vetting potential new suppliers before quoting – will save you considerable time after quotes have been evaluated and decisions need to be made. While it won’t ensure that every supplier you include in the RFQ will be a perfect supplier partner, it will prevent 80% of the mismatches that you’re already discovering later in the process. Under pressure to implement more savings in 2024 than your team can deliver? DM me to discuss if you might have untapped opportunities to implement $200k - $500k savings (with fees based on savings achieved). #CostReduction #FastTrackSavings #Procurement

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🔎 Clue: This survey showcases trends in the manufacturing sector, prompting executives to consider strategic initiatives for business growth. 🔔 Answer: What is... the Sikich Manufacturing Pulse Survey? 💡 Correct! This survey offers invaluable insights into the manufacturing landscape, guiding executives towards strategic decisions for a brighter future. Keep up with the Pulse for success! Take a look below - thanks for posting, Steven Randall! #PulseSurvey #ManufacturingInsights #StrategicDecisions #accounting #audit #tax #manufacturing #business #economy #SiteSelection #Incentives

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Today on CPO Rising — “Procurement News” https://lnkd.in/eimz8738 Today on Procurement News, we’re congratulating several procurement leaders on their new hirings as well as their retirements. Those featured include Todd Huetinck who joins Whataburger as CSCO; Tuomas Tiilikainen who was appointed CSCO for Oriola; Fabio Grazioli who was named CSCO for SIG; Dan Rosckes who announced his retirement from Apple Inc.; and industry veteran Michael Papaleo who retired from C&S Wholesale Grocers, LLC. Check out more details about our featured procurement executives as well as supply management news. #procurement #chiefprocurementofficer #procurementnews #promotions #procurementexecutives #supplymanagementnews

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🔍 Deep Dive into September’s ISM Manufacturing Report: Understanding the Three Pillars – Demand, Output, and Input September’s ISM® Manufacturing PMI® holds critical insights for those navigating the current manufacturing landscape. Let’s break it down into the three key areas: Demand, Output, and Input. (For reference- 50 is the baseline. Any score below 50 is in contraction (except supplier deliveries) and anything above 50 is growing.) Demand: The weak demand environment remains a significant challenge. The New Orders Index stayed in contraction territory at 46.1%, showing only a slight improvement over August’s 44.6%. Export orders continued their downward trend, reflecting global economic uncertainty. Manufacturers are sitting on the sidelines, likely due to ongoing concerns around U.S. monetary policy and upcoming elections. Output: While demand struggles, production is showing signs of stabilization. The Production Index rose to 49.8%, up 5 percentage points from August, just shy of the expansion threshold. However, employment remains a concern, as companies continue right-sizing their workforce in line with projected demand. This balancing act between production and labor is a clear indication that manufacturers are cautiously optimistic but unwilling to make bold moves just yet. Input: On the input side, suppliers are managing to keep pace, but there are still some areas of concern. The Supplier Deliveries Index is slowing, at 52.2%, indicating longer lead times. Inventories, however, dropped sharply, with the Inventories Index at 43.9%, down from 50.3% in August. The sharp contraction in inventories signals potential future supply shortages if demand spikes unexpectedly. Additionally, prices entered contraction territory for the first time this year, dropping to 48.3%. This may offer a temporary relief on cost pressures, but it’s another indicator of broader market weakness. Manufacturers are walking a fine line as they adjust to weak demand while maintaining a flexible supply chain. The question remains: how long can manufacturers hold on before seeing a real recovery? What’s your strategy to manage these uncertain times? #MaterialsManagementMonday #ISM #ManufacturingPMI #SupplyChainChallenges #DemandManagement #InventoryControl #OperationalExcellence #Manufacturing

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GPO vs. direct negotiation comparison Compare GPOs and direct negotiation in procurement strategies to understand their strengths and weaknesses for your organization. The post GPO vs. direct negotiation comparison appeared first on Tier 1 HUBZone Certified Woman-Owned Office and Industrial Supplier.

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I interviewed five manufacturing purchasing leaders recently, and I heard a consistent theme: Cost savings is a top priority in 2025, but it's become harder than ever to meet savings goals. Suppliers are still demanding price increases based on rising labor and energy costs. Purchasing teams are overwhelmed by tactical challenges and some are under-skilled. A real rock-and-a-hard-place scenario. Click through to learn 5 steps to quickly deliver purchasing cost savings. Are you a manufacturing leader looking to quickly implement cost savings? DM me, and let's discuss your untapped opportunities. You could implement $200k - $500k in savings in as little as 14 weeks, with fees based on the savings achieved.

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2025 will be a foundational year for manufacturing innovation. 2024 brought a host of challenges for manufacturing organizations marked by increased issues with securing critical supply, labor shortages and dynamically shifting market demand and pricing (for everything from autos to furniture) - it was a year of unprecedented volatility. As we transition into 2025 we are entering a new era of manufacturing growth and digital maturity - one that will be defined by considerable investment to modernize shop floors, reskill and upskill industrial operators, and unlock industrial data to drive engineering and process improvements. 2025 is the beginning of a manufacturing renaissance. As I think through what the year ahead will look like for manufacturers, several key themes are emerging as significant: 1. Re-Shoring / Near-Shoring to increase supply chain resilience - to reduce risk and smooth volatility, organizations should rethink their sourcing strategies and prioritize proximity to critical component supply. Unlocking data across the extended enterprise will be a key enabler here as resilience will come through increased transparency and an ability to pivot quickly when the need arises. 2. Re-Skilling and Upskilling the industrial workforce - the role of the operator is changing as digital innovation takes hold in manufacturing. As the role evolves into one of higher-value process execution, triage and real-time data analysis operators will need to be retrained and upskilled to ensure that critical, embedded functional knowledge is captured and codified. 3. Advancing industrial automation for value chain impact - data generated at the point-of-activity will be critical to improving maturity and activating high-value AI use cases. Now will be the time to improve data management processes and governance practices, mature data management platforms, and improve data aptitude across manufacturing organizations. This will be a game-changer in 2025. 4. Getting serious about the use of digital twins to accelerate time-to-market, repair, and refresh - manufacturers need to make strides in 2025 to adopt a simulation-first approach to product development, production process improvement and quality. Digital twins will unlock an agility across operations that hasn't been seen in manufacturing. While many manufacturers have begun selectively adopting simulation, now is the time to drive real capability maturity in this area. It's hard not to be excited for what's in store for manufacturers in 2025. This should be a year marked by foundational improvement, growth and innovation. What an exciting time to be involved in this industry! #manufacturing #digitaltransformation #supplychain #digitaltwins #transformation

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The supply chain management (SCM) field impacts virtually every type of business. Although many people believe the supply chain function only impacts manufacturers and purchasing agents, this situation simply is not the case. https://ow.ly/Ngof30sGUyr

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What an incredible experience! Just wrapped up our hands-on Performance Playbook Workshop focused on enhancing profitability, driving unit volume growth, optimizing inventory and mastering pricing strategies. We shared benchmarking and practical solutions for pressing challenges faced by manufacturing and distribution teams, especially given the current environment of margin pressures, aging inventory and the need for growth. A huge thank you to everyone who participated and brought insightful questions that enriched our discussions. Special shoutout to John Gunderson and J Schneider for their expert contributions! Missed the live session? Don't worry! You can register to watch the full recording. (Registration Link in the Comments section) #businessgrowth #inventorymanagement #pricingstrategy #profitability #workshop

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In this episode of Interlinks, Lisa Anderson of LMA Consulting talks about manufacturing in the USA. Covering topics like skills, capabilities and AI and effective approaches to resolving the apparent dichotomy between resilience and efficiency such as Sales, Inventory and Operations Planning (SIOP). Give it a listen now: https://ow.ly/EIrl50SFxLn #InterlinksPodcast #SupplyChain #SIOP

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Where are the skill gaps holding you back in your career? What skills should you look to polish or add in 2025 for yourself or your supply chain team? How might that be accomplished? Listen to this month's Dynamic Dialog webinar to learn more.

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Strategic Tips for Manufacturers Navigating Economic Challenges Yesterday, we talked about the ISM Report for Manufacturing, based upon May's data. Essentially a split report: Overall, the aggregate index is 48.7. There has only been one recent month March) where this metric was at 50 or higher. The majority of the metrics are over 50, but the overall metric is still below 50. Here is what you can do as manufacturers to navigate these waters: Focus on Efficiency: With the Manufacturing PMI indicating contraction, it's crucial to streamline operations and reduce costs. Implement lean practices to maintain profitability. Monitor Demand Closely: As new orders continue to decline, stay agile and responsive to market demand fluctuations. Adjust production schedules accordingly. Optimize Inventory Management: With inventories and backlogs declining, ensure inventory levels are balanced to avoid excess or shortages. Use data to forecast demand accurately. Enhance Supplier Relationships: Supplier deliveries are stable, but monitor closely for any potential disruptions. Strengthen relationships and consider diversifying suppliers to mitigate risks. (Remember the focus on resiliency coming out of Covid?) Invest Wisely: Be cautious with capital expenditures and focus on investments that enhance efficiency and innovation. Prioritize projects with clear ROI and align with long-term goals. Leverage Export Opportunities: With new export orders showing marginal growth, explore international markets and expand export strategies to offset domestic demand challenges. Manage Labor Effectively: The employment index shows growth, indicating potential opportunities for skilled labor. Invest in workforce development and training to enhance productivity. Adapt Pricing Strategies: Despite easing, the Prices Index remains high. Evaluate pricing strategies to manage rising costs without compromising competitiveness. Stay Informed: Keep abreast of economic policies and market conditions. Regularly review industry reports and adjust strategies based on the latest insights. By focusing on these areas, you can navigate the current economic challenges more effectively and position themselves for future growth. Good luck!!

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Labor strikes and tense negotiations continue to highlight vulnerabilities in supply chains, emphasizing the urgent need for resilience. This article by Lisa Anderson in Supply Chain Xchange explores how businesses can mitigate such risks by investing in flexible strategies like diversified sourcing, robust inventory management and strong supplier relationships. This shift is crucial for companies aiming to maintain stability in uncertain conditions. Check out the full article: https://ow.ly/EmQu50U54nW #LaborStrikes #SupplyChain #SupplyChainXchange

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Did you know, LMA Consulting Group specializes in enhancing demand planning and supply chain performance through our consulting services? In order to best serve your unique challenges, LMA addresses key areas such as sales and operations planning (S&OP), inventory management and demand forecasting. We have a wide range of skills to support all aspects of the supply chain. Leveraging advanced analytics and technology is one of the many ways that LMA Consulting helps businesses optimize their supply chains, ensuring that they can meet customer demands efficiently and effectively. Our expertise in ERP systems and strategic planning supports companies in navigating complex supply chain challenges and achieving long-term operational success. Have supply chain challenges? LMA Consulting can help. #SupplyChain #DemandPlanning #ConsultingServices

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Manufacturing companies are constantly striving for excellence, and sometimes, the key to success lies in "Thinking inside the Box." While embracing new technologies is crucial, focusing on fundamental processes can lead to significant improvements. Areas like Bill of Material Systems, Inventory Management, and Capacity Planning are essential for operational efficiency. Successful companies are integrating 21st-century tools like Lean Manufacturing, Six Sigma, and Industry 4.0 to enhance their operations. By ensuring accurate metrics, formal systems, and employee engagement, companies can drive rapid improvements and innovation. To kickstart this journey, a detailed assessment of key metrics is vital. "Thinking inside the Box" can pave the way for more aggressive strategies and enhanced techniques. To learn more about this approach and assess your processes, contact Marino Associates, LLC for their "Order to Cash" assessment process led by Dan Marino, Senior Partner. #Manufacturing #ProcessImprovement #LeanManufacturing #Industry40 #BusinessStrategy

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U.S. manufacturing activity contracted again in November, but at a slower rate compared to last month. Demand continues to be weak but may be moderating, output declined again, and inputs stayed accommodative. Positive signs for demand include the (1) New Orders Index returning to expansion territory, (2) New Export Orders Index increasing moderately (up 3.2 percentage points but still in contraction territory), (3) Backlog of Orders Index dipping further into strong contraction territory, and (4) Customers' Inventories Index indicating levels were only marginally above 'too low.' (For more, see the Customers' Inventories Index summary section.) Output (measured by the Production and Employment indexes) continued in contraction: Employment shrunk, but at a much slower rate, and production took a small step in the right direction. Foundational industries like Chemical Products and Fabricated Metal Products (that provide products and components across the manufacturing sector) continued to show weakness, indicating that recovery may still be two to three months away. Inputs — defined as supplier deliveries, inventories, prices and imports — generally continued to accommodate future demand growth, with inventories improving and suppliers continuing to improve delivery performance. "Demand remains weak, as companies prepare plans for 2025 with the benefit of the election cycle ending. Production execution eased in November, consistent with demand sluggishness and weak backlogs. Suppliers continue to have capacity, with lead times improving but some product shortages reappearing. Sixty-six percent of manufacturing gross domestic product (GDP) contracted in November, up from 63 percent in October. The share of manufacturing sector GDP registering a composite PMI calculation at or below 45 percent (a good barometer of overall manufacturing weakness) was 48 percent in November, a 2-percentage point increase compared to the 46 percent reported in October. Two of the six largest manufacturing industries — Food, Beverage & Tobacco Products; and Computer & Electronic Products — expanded in November, the same number of industries as in October." The three manufacturing industries reporting growth in November are: Food, Beverage & Tobacco Products; Computer & Electronic Products; and Electrical Equipment, Appliances & Components. The 11 industries reporting contraction in November — in the following order — are: Printing & Related Support Activities; Plastics & Rubber Products; Chemical Products; Paper Products; Transportation Equipment; Fabricated Metal Products; Furniture & Related Products; Machinery; Nonmetallic Mineral Products; Miscellaneous Manufacturing; and Primary Metals. Manufacturing ISM Report On Business. The report was issued Monday by Timothy R. Fiore, CPSM, C.P.M., chair of the Institute for Supply Management Manufacturing Business Survey Committee. Comments include inflation, lower construction, destocking, risk management, caution.

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