People & Skills

Innovative supply chain solutions inbound from Apriso

2013-05-17T22:30:00Z

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Reflecting the success of the company’s FlexNet Warehouse application, Apriso’s recognition coincides with its ability to effectively address the top challenges facing materials management professionals.

Through the use of FlexNet, material flow is synched with production and other manufacturing operations on a global, enterprise scale; with the enhanced visibility improving inventory accuracy and efficiency. Lead times and idle inventory are also reduced, raising margins and customer satisfaction.

Apriso’s Senior Product Manager, Tadeusz Dyduch commented:

“Apriso’s FlexNet has traditionally been recognised as a Manufacturing Execution System. It’s great to be recognised by Inbound Logistics as a leading warehouse and inventory management solution, pointing to the depth of capabilities FlexNet can deliver.

“As a global solution, FlexNet helps manufacturers to better comply with enterprise-wide traceability and regulatory requirements which includes tracking product quality from components through finished goods.”

Annually, the Inbound Logistics Editors recognise the Top 100 Logistics IT Providers that support and enable logistics excellence. Drawn from a pool of more than 300, based on questionnaires, phone calls, face-to-face interviews and other research, each company reflect leadership by responding to industry’s need for simplicity, ROI and efficient implementation.

The announcement follows on from Apriso’s recent introduction of its Packaging Solution for Global Manufacturers, an effective method of managing complex packaging operations and conversion processes.

Apriso’s Industry Director, Rick Hallisa said at the time:

“As a solution designed specifically for global conversion operations, implementations across multiple sites can go live and add value quickly. Our new Packaging Solution provides an ideal framework to manage production and quality operations while also delivering the capabilities needed to quickly extract manufacturing data, and turn it into valuable information for informed decision support.

“This way clients can instead focus more on improving performance while driving continuous improvement.”

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PwC's hot tips for currying favour in India

2013-05-17T12:42:43Z

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Organised by one of the world’s largest professional services and accountancy firms, PwC’s Through the Looking Glass: What Successful Businesses Find in India report highlights how companies must create the right value proposition, design the appreciate operating model, invest in financial and human capital and understand the local business environment.

According to the firm, India has the potential to be the world’s fastest-growing large economy over the next four decades, but businesses are finding its economical and cultural diversity, complicated policy-making processes and uneven development difficult to navigate.

PwC’s US Retail and Consumer Sector Advisory Leader, Lisa Feigen Dugal commented:

“India is a great prospect, as a new demographic of consumers is now driving economic growth. Seventy percent of Indians who live in rural areas are now spending at a faster rate than urban Indians, while many Western companies have targeting upper or middle-class income consumers.

“Companies who can determine the needs and preferences of this new group of consumer will find their tailored strategy to be the key to success.”

PwC’s US Industrial Products Sector Advisory Leader, Robert Pethick said:

“India’s labour and research capabilities are proving to be valuable to global business, and as the Indian government is looking to expand their infrastructure, many companies have the opportunities to export goods to help develop those initiatives.

“The patterns we’ve identified are extremely pertinent to industrial products companies, including the increasing importance of creating a supply chain infrastructure they need for long-term growth in India.”

Pattern One: The market is highly segmented– companies must have a deep understanding of the socio-economic trends across the different states in India, while determining what offering might best meet their customers’ needs in those regions.

Pattern Two: Niche segments demand tailored solutions– while companies ideally would like to enter a new market with established products and services, this strategy may not always succeed in India where local preferences and desires must be considered and addressed for sustained success.

Companies should customise their products and services, providing a differentiated offering to command a price premium over an array of substitutes already available on the market.

Pattern Three: Relationships can make or break channel strategy– building long-term partnerships with channels is a critical element of success in the Indian market. Investing in customised partner management programs and building the capabilities of the internal sales-force are very important in a relationship-driven market like India.

Pattern Four: Integration and collaboration are central to strong supply chains– companies operating in the Indian market should build supply chains that respond to evolving demand and supply patterns.

This requires the flexibility that comes from partnering and collaborating more with suppliers, which will help companies effectively and efficiently navigate through infrastructural and regulatory challenges.

Pattern Five: In India, think operating models for India– the operating model (organisational design, IT, sales-force structure, etc.) for entering and expanding business in India must be able to support differentiators such as agility, speed to market and ability to drive low-cost innovations.

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Namibian Manufacturers to be recognised at awards event

2013-05-14T15:26:46Z

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Through the awards ceremony, the NMA hopes to recognise and reward those Namibian manufacturers who are putting in the extra effort needed to successfully compete against international competition.

Scheduled to be held on 20 June, the event is the first the NMA has organised since coming into being almost 20 years ago. The NMA’s 140-strong membership will also be given the opportunity to participate in a project geared towards showcasing their products at the ceremony.

Awards up for grabs include the NMA Corporate Manufacturer of the Year, NMA SME Manufacturer of the Year, NMA New Manufacturer of the Year, NMA Innovator and Designer of the Year, NMA Ambassador for Manufacturing, NMA Most Environmentally Friendly Manufacturer of the Year and the inaugural NMA Manufacturer of 2013.

NMA Chairperson, Brian Black commented:

“Prior to independence, Namibia simply did not have a manufacturing industry. Everything was happening outside; even water was imported from South Africa. Obviously the NMA, with government and various stakeholders’ support, has to start somewhere in encouraging local manufacturing.

“We believe that the time has now come to start showcasing what our members are capable of. We are looking forward for these specific awards to grow year on year.”

Keen to address the challenges facing Namibian manufacturers, NMA Chief Executive Officer, Ronnie Varkevisser said:

“Retailers should buy from local manufacturers and not import all their products from South Africa. I can state that there are certain retailers in Namibia that don’t carry one Namibian manufactured product on their shelves.”

Varkevisser added:

“The time frame to get the VAT refund paid back to manufacturers, the time frame to put in an application for a work permit to import skilled workers – it takes a long time. We now the government is busy looking at (certain tenders to be exclusive to Namibian manufacturers).

“We had a discussion with the Trade & Industry Minister, Calle Schlettwein two weeks ago and we brought up this issue of tenders.”

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Underestimating the power of MBAs in industry

2013-05-13T09:11:02Z

Written by Matthew Marriott, Commercial Director of Hellmann Worldwide Logistics

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Although traditionally the highly educated may not have always considered the logistics industry, times are changing, and the vast accountancy, analytical and administrative skills that are required are coming to the fore. And further education is one of many ways that could give you the upper hand when applying for such roles.

A Master’s Degree in Business Administration (MBA), which is an internationally recognised qualification, is often undervalued in the context of the logistics industry. Common specialisms include Economics, Business Management and Global Management, although there are a wide range of possibilities.

Less to do with business than the name suggests, MBAs are designed to train people for senior management positions and are increasingly seen as a necessity to excel in the business world, particularly in an executive or senior position.

Skills

An MBA gives you a vast array of skills, which can help you flourish in the logistics industry. These include complex business skills such as finance, operations and management, which can come in incredibly useful when managing a variety of clients and ensuring operations run smoothly and efficiently.

The ‘soft skills’ of business will also be taught, which can be of equal importance and will see leadership, teamwork and communication skills focused on; all of which are critical tools when it comes to successful management and a successful career in the freight industry.

While MBA fees can be relatively high, if money is a preventative factor, some companies now offer candidates sponsorship opportunities, granting access to higher levels of education without financial worries.

At Hellmann, we have a strong respect for employees with natural business acumen and believe that further education can serve to enhance their skill set. We are currently sponsoring a young employee who’s already in a senior position, through his MBA in Economics and Accounting, and have no doubt that this will benefit the business as well as the employee personally.

Qualifications

Typically lasting for two years on a full-time basis, there are various other ways to gain an MBA qualification such as an Accelerated MBA Programme or a Distance Learning MBA, which can be suitable for busy and working professionals, allowing people to take classes from their computer.

During this time, particular skills that are gained include analytical, adaptability, problem solving and time management; as well as learning how modern businesses run, all of which are ideal skills to apply in the logistics industry.

While an MBA should not be taken on lightly due to the associated workload, they can influence progression and salary expectations in the long-term. Some universities, such as the London Business School, publish information on expected post-MBA salaries.

Recruitment

Its 2012 employment report showed an average base salary for an MBA graduate going into consulting of £74,000 and, as consulting companies have now started to offer logistics services, this is definitely a viable way to get into the industry.

Additionally, as MBAs are globally recognised qualifications, the opportunities are endless, with international companies such as our own constantly looking to recruit talented, committed business minds.

A key learning that needs to be seriously considered by students is that logistics should never be dismissed as a low level career. Logistics, by its very nature, is a truly global enterprise, with larger companies having offices around the world and it can certainly offer a challenging, intellectually stimulating career that promises to be highly rewarding in today’s often difficult economic climate.

About Hellmann Worldwide Logistics:

One of the largest privately owned and family run logistical global networks, currently employing over 16,500 dedicated people to serve customers worldwide, Hellman operates from 443 branches across 157 countries.

For more information on Hellmann Worldwide Logistics please visit www.hellmann.net and to follow Hellmann on Twitter go to www.twitter.com/HellmannUK

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Safeguarding future skills in composite engineering

2013-05-08T13:57:17Z

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Developed by employers for employers, and something which could prove critical to the future of the composites industry, the new Composite Engineering Apprenticeship Framework is to be overseen by Semta’s employer-led Composite Sector Strategy Group.

With Level 2 and Level 3 pathways, the framework employers a robust training programme with true flexibility. Level 2 is aimed at semi-skilled operator occupations, which manufacturing currently has serious and persistent skills shortages in. Level 3 geared towards developing craft skilled and technician occupations, critical if the UK is to maintain its competitive manufacturing advantage overseas.

The Composite Sector Strategy Group has also announced a change of leadership, with new Chairman, Graham Mulholland stepping in. He commented:

“I am delighted to be taking over as Chair of Semta’s Composites Sector Strategy Group at such an exciting time for our industry. (Previous Chairman) Ken Wappat has helped to create this essential and robust framework which we now must deliver.

“I am also very keen to work with the strong networks forming within our industry to help accelerate these frameworks to the front line through Composites UK, National Composites Centres and Composites Skill Alliance, to name a few. We certainly have to pull this together and push these new apprenticeships into our industry quickly.”

Mulholland is the Managing Director of rapidly expanding epm:technology, a leading producer of carbon fibre components for high performance engines and Formula One Motorsport.

The UK-based manufacturer designed bespoke composite solutions for Team GB at the London 2012 Olympics, Channel 5’s The Gadget Show and a number of specialist parts for the aerospace industry.

Mulholland added:

“I have seen real benefits of my partnership with Semta first hand and what it has to offer directly and in partnership with the Composite Skills Alliance. It has paid huge dividends and I expect it go strength to strength.

“I’m looking forward to working with other employers in my role as Chairman to ensure more businesses , particularly SMEs, work with Semta to ensure the skills talent pipeline for composites is increased, understood and overflowing. “

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ISO 13849-1 raises the standard of machinery safety

2013-05-05T22:30:00Z

Written by Andrew Ryder, an expert in machinery safety at Bosch Rexroth

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The new EN ISO 13849-1 machinery safety standard may well have passed many machine builders in Europe by, but it would be misguided for them to assume that all responsibility for safety continues to rest with the end-user.

EN ISO 13849-1 is a significantly more complex and time-consuming standard to administer in comparison to the earlier EN 954-1, particularly in terms of the risk assessment procedures and technical file documentation that machine builders will be required to store and provide to customers or the relevant authorities, when necessary.

EN ISO 13849-1 uses a risk graph to accurately assess the Performance Level required (PLr) by the new standards. It also requires the machine builder to identify the Performance Level achieved by designing, assessing, modelling, calculating and then evaluating the machine in line with the standard.

The danger for machine builders is the temptation to take short-cuts with the new standards and award themselves the CE mark, in the knowledge that the end-users which are usually the focus of any investigation into a workplace accident.

This would be a mistake as, in the event of an accident, the end-user or the Health and Safety Executive (HSE) is likely to ask for evidence that the machinery operates in line with the new directive.This should detail all potential risks and the steps taken to mitigate them.

The key to compliance with the new directive is to design out any risk before the machine is built. Completing a risk assessment once a machine is in service is likely to prove too late and very costly. This will be a cultural and mindset change for engineers which will prove uncomfortable for many, but the benefits of this approach will become clear over time.

So what practical steps do machine builders need to take to ensure compliance with EN ISO 13849-1?

At the heart of EN ISO 13849-1 lies risk assessment. Depending on the machinery this can range from mechanical hazards and working at height issues, through to the risk of electrical shock and the potential for a platform to cause serious injury.

Fortunately, there are a number of software packages available, including the Bosch Risk Assessment Tool, which can help machine builders collate and store the relevant information.

The first stage of the risk assessment is to determine when the potential risk event is likely to occur. This could be during the manufacture of the machine, its transportation, assembly, commissioning, maintenance, de-commissioning, disassembly and end-of-life disposal.

Danger zones during all of these life-cycle phases need to be identified. All the different areas which could cause danger need to be assessed by the relevant experts in design, manufacture and engineering.

Next we must determine the type of hazard that the machine could potentially pose. This could be mechanical, electrical, noise related, vibration, up to and including an ergonomic hazard for the operator

Once potential risks have been assessed, each individual risk has to be examined separately and documented in line with any relevant standards.

A risk score is then awarded which identifies the severity of the risk, potential exposure, the probability of the risk occurring and the potential for avoidance.

Exposure of an operator to the risk needs to be assessed along with the potential frequency, designated on an hourly, daily, weekly or annual basis.

The individual measures implemented to avoid any risk event then need to be documented. Finally, user information needs to be provided detailing the steps that must be taken by operators.

My advice to any machine builders concerned at the prospect of assessing their machines in line with the new standard is to seek out expert advice. The depth of information required in the technical file means that compliance with the new standard is neither an easy matter nor a quick one.

However, ensuring compliance from the design stage is likely to save machine builders significant time and cost in the long run compared to retrospective attempts to comply once a machine is in service and being marketed to customers.

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White House supports industry jobs for service members

2013-05-01T13:04:56Z

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The American Jobs for America’s Heroes (AJAH) campaign, comprising more than 80 trade and professional associations, non-profit organisations and state Chambers of Commerce – representing 150,000 companies, aims to help National Guard members, veterans and spouses find skilled jobs in the private sector.

Energy manufacturing and logistics company, Phillips 66 is the lead national sponsor for the campaign which seeks to support the approximately 20 percent of the National Guard force – approximately 60,000 – currently unemployed

First Lady Michelle Obama’s announcement earlier this week regarding the new IT credentialing and training effort highlights the ongoing challenge of “translating military experience in hundreds of disciplines to match private sector jobs requirements,” said Steve Nowlan, President of Center for America, a non-profit coordinating the AJAH campaign.

President of the 900-member strong Precision Metalforming Association (PMA), which represents the $113 billion Metalforming industry in North America, Bill Gaskin said:

“The men and women who serve in the National Guard or have served in the military branches are trained, skilled and equipped to move into private sector employment in many fields, including manufacturing.”

President of the 2,000-member strong National Tooling and Machining Association (NTMA), and represents the $40 billion tooling and machining industry, Dave Tilstone commented:

“The process of transitioning from the military to private sector agreements presents obstacles that our industry, the AJAH campaign and the federal government’s current push will address.”

How the AJAH campaign works:

AJAH provides direct, hands-on support for both employers and job applicants, serving both as an important stand-alone programme and a crucial complement to existing employment efforts and initiatives.

Job postings are automatically entered into a case management system that brings together the National Guard Employment Network and voluntary state support groups around the nation onto a converged infrastructure, improving matching and follow-through.

Companies registered are assigned case managers who help support recruitment, with no fees to participating companies or job candidates.

Employers seeking further information can visit www.CenterforAmerica.org/register.html

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Making It campaign to promote manufacturing innovation

2013-04-30T09:53:16Z

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A sector which provides 53,000 jobs and adds £2.7 billion to the LCR economy, the Local Enterprise Partnership (LEP) is leading the way for a manufacturing revival, amid growing competition from overseas.

The LCR LEP is working with dozens of local manufacturing business leaders, the two leading Liverpool Universities, the six Merseyside local authorities, and the University of Cambridge Institute for Manufacturing on Making It, a campaign looking at what the areas of local expertise are, what should be manufactured in the future and how greater collaboration can make that happen.

LEP Executive Director, Key Growth Sectors, Alan Welby commented:

“Making It will provide real support to make our manufacturing sector globally competitive. Manufacturing makes a vital contribution to the LCR economy and this campaign will priorities our most valuable manufacturing opportunities and ensure the future of a thriving local manufacturing economy.”

The first of four Making It industry workshops has already set the scene for the project and participants from leading City Region manufacturing companies were asked to consider the vision for the future of their sector.

The next workshops will identify possible focus areas, how they present the best opportunities and how those areas can be better supported. The conclusions will be linked into a national study with an action plan for the region’s next steps to be drawn up and presented at a conference in the autumn.

The project is being overseen by a Steering Group to provide strategy guidance and advice, led by Nigel Weatherill, Vice Chancellor of Liverpool John Moores University. Professor Weatherill explained:

“The Making It Programme will look at the future of manufacturing, what we make, how we make it and what we should be making in the future. Liverpool has always been an innovative city and now is the time to work out how we can build on that innovation and establish ourselves as market leaders once more.

“We are working closely with the private sector to make sure that we develop the right plans for the future and offer the best support to grow our manufacturing industries.”

Dr Malcolm Hannaby, Lead Technologist in High Value Manufacturing at the Technology Strategy Board said:

“Last year the Institute for Manufacturing worked with us to take input from industry at a national level to give insights into the future UK manufacturing landscape. We are now using this work to target Government investments in manufacturing innovation. The LCR LEP Making It campaign will give companies in the region clear line of sight to these investments. ”

Alan Fox, Relationship Manager in Scottish Power’s Cities Team, attended the first workshop which he described as a very well structured, intense day:

“One of the important future considerations to emerge was the need to retain expertise in the area and to make it an attractive place to stay and work, or to move to. All the regions are in competition so retaining business and expertise in the area helps us all. By planning a strategy to deal with this now shows real foresight and I am very pleased to be part of the study.”

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Challenges facing the infrastructure investment market

2013-04-26T22:30:00Z

Written by Reyno Norval, Senior Associate at Altius Associates

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Rising asset prices, especially for core brownfield assets

This sector of the market is being seen as a safe haven and the promised yield is viewed as an attractive replacement for low-yielding fixed income securities - though the truth here, to quote Oscar Wilde, is rarely pure and never simple. As a result we have seen capital rushing into the space, bidding up asset prices and likely reducing future returns.

Divergence in expectations of returns that core brownfield infrastructure will provide to a portfolio

Some managers, often unrealistically, project mid-teen IRRs (Internal Rate of Return) and yields of 5 percent, while more conservative managers target an 8-10 percent IRR with a similar yield. We believe that investors entering the asset class with an expectation of the higher return profile are likely to be disappointed.

Regulatory risk is also alive and well in the sector

A recent example is Norway’s proposal to cut tariffs for future Gassled gas transportation contracts by 90 percent. Gassled is a true regulated monopoly located in oil rich Norway and transporting about one-sixth of the gas consumed in the EU.

Gassled seemed like a safe investment with a risk profile. Today, however, the risk/return profile has changed dramatically. Combine this risk with the rising assets prices and one is left with very little downside protection should regulation negatively impact on a project’s revenue stream.

Determining which geographies provide the optimum risk/return profile for an infrastructure allocation

With few exceptions, emerging markets have not produced returns commensurate with the additional risks involved. Therefore what should be the allocation to these markets? Should there be one at all? Will we miss out on the upswing if we don’t invest in these markets right away?

Or consider Europe, the so called ‘more developed’ economy, and the uncertainty it has created for investors over the past few years. For example will Greece leave the Euro? What is happening politically in Italy and Spain, which for so long looked like a great place to deploy capital in renewable energy generation projects?

These are all questions being asked and creating uncertainty for investors.

Infrastructure, excluding energy, is an emerging asset class

Therefore there is limited historical return series to analyse which, in turn, makes it much more difficult to evaluate managers because of limited operating history and short track records. In addition there have been very few clean exits or fully realised funds to date. Therefore, sourcing, analysing, and selecting the best managers requires as much judgment as analysis, and requires more time, effort, and expertise than normal.

Selecting a benchmark for private infrastructure investments

There are no widely-accepted industry standards. Given that real assets are expected to hedge against inflation, one benchmark that might be appropriate is a premium over an inflation Index. Another potential benchmark is simply the investor’s absolute expected return target.

There are also a few publicly-traded indices designed to track real assets such as infrastructure. However these indices are heavily weighted towards publicly-traded electric, gas and water utility companies, which is not representative of the infrastructure sector in general.

Environmental and social impact

May cause a challenge for certain types of investors, especially regarding headline risk. Infrastructure projects planned on greenfield sites could cause environmental degradation, the clearing of forests, or diversion of water flows from their natural path, to mention but a few.

The impact on a society can be equally damaging as some residents may be relocated or neighbourhoods disrupted. Objections to infrastructure projects on environmental and social grounds can block or delay matters indefinitely.

Acquiring and retaining the necessary resources and expertise to properly assess the investment opportunities, as well as to maintain/monitor them over a long life

Especially true for investors exploring direct investment into infrastructure assets or projects, the two most prominent attractions for investing directly are reduced fees and more operational control. Many investors underestimate the time, cost, and experience required to build the internal capabilities necessary for both of these attractions to add any value.

We have highlighted the challenges, but we believe there are many advantages to investing in infrastructure. These include attractive risk/return characteristics, inflation hedging, diversification from modest correlation with other asset classes; the cash yield component, and a good duration match for pension/insurance liabilities.

However, these are long term, capital-intensive projects that have risks associated with them that must be addressed. The best managers and advisors understand these underlying assets and have the necessary expertise to construct an infrastructure allocation with the optimal risk/return profile.

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Manufacturing skills are walking out the door

2013-04-25T11:17:27Z

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Organised by one of the world’s leading executive search companies, the 2013 Harvey Nash Manufacturing Leadership Survey shows that 62 percent of executive staff believe they are being starved of skills. A further 40 percent of those dissatisfied are planning to change jobs as a result.

The report was produced with help from sector skills organisation Semta, who is urging employers to invest in training and grow their own, more loyal, talent through apprenticeships.

Semta’s current forecasts shows that the UK manufacturing and engineering industry needs to develop 363,000 of the current technical workforce who are qualified below world-class standards and to recruit and train 82,000 engineers, scientists and technologists by 2016.

CEO of Semta, Sarah Sillars OBE said:

“For the last three years business leaders surveyed have cited their top operational concerns as an inability to recruit good people and a lack of available skilled workers.

“Money may be tight right now but skills gaps and shortages impact on companies’ ability to deliver and stay competitive. It’s clear employers risk losing experienced staff unless they invest in skills. Hiring skilled workers can be expensive so we are urging employers to come to Semta. We can help them not only upskill their current workforce but also develop tomorrow’s talent through apprenticeships.

“Contrary to popular myth, apprentices tend to be more loyal than other staff.”

Of those surveyed 73 percent said their organisation is not actively trying to increase the number of women employees within their business. And of the 27 percent who are, only 40 percent are looking to increase the number of women employees throughout the entire organisation, with 15 percent focusing purely on board level appointments and 31 percent focussing on senior/middle management appointments.

Sillars added:

“It is puzzling that when only 20 percent of the sector’s workforce is female so few companies are actively trying to increase the number of women within their business. While no is suggesting that candidates should be selected on anything other than merit, perhaps employers facing skills shortages should consider how to nurture this untapped talent.

“As this report makes clear, skills are the foundation of competitiveness. The government is encouraging employers to take ownership of skills and thankfully help is at hand not only to recruit, train and retain top talent, but also to prevent a lost generation of young people, who need enthusing to join the UK’s world-beating manufacturing industry.”

Director of Harvey Nash’s Industrial Executive Search Practice, Rob Lanham commented:

“A key competitive advantage of the UK’s industrial and manufacturing base has been the combination of pioneering innovation and the exploitation of high technology manufacturing and practical expertise by a highly skilled workforce.

“As executive recruiters, we see first-hand how leadership is fundamental ro a company’s success and there is no doubt apprenticeships have a key role to play; not only do the manufacturing leaders we speak to see apprenticeships as an important source of new talent, but also many of them talk about how their own experience of working on the shop floor makes them the talented leaders they are today.

Lanham concluded:

“It is essential we have a strategy that continues to grow these skills from the bottom up but more importantly, that we attract more talent into the sector and specifically we harness the vast untapped resource of bringing more women into the engineering and manufacturing sectors.”

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Amir Khan enters the ring for UK manufacturing

2013-04-24T14:18:47Z

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In a project supported by the Manufacturing Advisory Service (MAS), the rigorous testing was carried out by the Sport Science Team at Manchester Metropolitan University (MMU) and compared several of Piranha Guard’s latest mouthguards against its leading competitors.

After getting in the ring to put the mouthguards to the test, Khan said:

“After taking stock of my career and changing trainers I felt that I also needed to look at the type of mouthguard I was wearing. Over the years I’d tried a number of products that weren’t right for me. I was even perhaps a little naive on the use of the correct type of mouthguard when boxing.

“When Piranha Guard approached me with the idea of testing their products I jumped at the chance. They have rapidly become a leading company in mouthguard technology and supply a variety of world-class athletes with their products; they can even put your logo on then.

“The Piranha mouthguard I have chosen is their 5mm occluded product which has the greatest balance between comfort, protection and oxygen intake in boxing, helping me to improve my performance.”

The UK-based Piranha Guard manufactures a range of custom-designed and fit mouthguards, handmade by registered dental technicians using innovative techniques to provide ultimate comfort and maximum oral and facial protection for athletes.

Managing Director of Piranha Guard, Simon Nixon commented:

“We were delighted with the success of the testing program and would to thank everyone involved for making it possible. Our biggest challenge as a company is to educate athletes at every level as there seems to be a naive misconception regarding dental injuries and the use of protection in sport.”

“The fact Amir took the time to undergo the testing shows just how important the products really are in contact sport. As a result of this initial trial, we have now signed up to a continuous testing programme with MMU to ensure we remain at the forefront of scientific development in the long term.”

MAS manufacturing advisor, Nick Brandwood added:

“Piranha Guard is an exciting, innovative company; they are fast moving and ambitious and we were able to go in and understand what was key to their business and agree and organise the support they needed quickly.”

Piranha Mouthguards start from £39.99 and can be purchased from www.piranhaguard.co.uk

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Positivity surrounds US manufacturing says PwC survey

2013-04-18T15:28:10Z

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Compiled by PwC US, over half of the senior executives interviewed for its Q1 2013 Manufacturing Barometer expressed optimism pertaining to the 12-month outlook, up seven points from the Q2 2012; with only five percent expressing pessimism.

US Industrial Manufacturing Leader for PwC, Bobby Bono said:

“Overall sentiment regarding the direction of the domestic economy remained upbeat among US industrial manufacturers in the first quarter. However, management teams are taking a more conservative approach to forecasting top line performance for the year ahead, given the moderate recovery underway and uncertainty pertaining to fiscal policy.”

Continuing in a positive vein, 78 percent forecast revenue growth for their companies over the next 12 months, while only five percent expect negative results. Comparatively, optimism for international markets was considerably lower at 36 percent, with 45 percent expressing uncertainty.

Bono commented:

“Views pertaining to the world markets have remained muted, with close to half of survey respondents expressing uncertainty. As a result, we have witnessed a consistent pull back in overseas expansion plans during the past four quarters, with the first quarter of this year being at a low of 10 percent, the lowest it has been in almost a decade.

“Instead, management teams are planning to spend more on R&D, new product launches and IT as they focus on building market share and boosting revenues in a competitive domestic market.”

A solid 43 percent of industrial manufacturers said they were planning major new capital investments over the next 12 months, four points lower than Q4 2012 and 10 points lower than this time last year. New hiring plans for 2013 were reported by 45 percent of participants, considerably lower than the 58 percent projected from the previous quarter.

With plans for expansion to new markets abroad decreasing 14 points to nine percent, Bono concluded:

“Overseas expansion plans have fallen off notable during the past four quarters, with the first quarter showing a 26-point reduction from last year. It is clear that companies are keeping their cash closer to home and are waiting for clarity on the world stage before making decisions on investing internationally.”

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The future of supply chain management

2013-04-13T01:00:52Z

Written by Jonny Williamson

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MD: What do you sense are the growing challenges logistics managers around the world are facing?

SK: Every company is critically dependent on a unique network of business partners to operate their supply chain. Today, many companies never really take inventory or touch the products that bear their names and that’s introducing a new set of challenges in the supply chain.

You need only look at the recent horsemeat scandal or use of African conflict minerals or the reports coming out of Foxconn to see examples.

Historically, companies have been able to deflect responsibility and pass the buck, but the public aren’t willing to accept that any more, they expect those at the top of the supply chain to take responsibility for its entirety.

To run a business more effectively you really need to have a tighter control over that network of business partners in order to exchange information more frequently, be that sale forecasts, inventory locations, component orders or any number of different data. That’s where fully integrated supply chains, and GXS comes in.

What are the key characteristics of a fully integrated supply chain?

No-one has a map of global supply chains, where you can track who’s trading with whom for a particular product, where all the components are being sourced from and how they are being connected to create the final product.

GXS helps companies to manage supply chain information connecting them to their suppliers, contract manufacturers, distributors and their customers. We operate a network of 550,000 businesses around the world who are connected for that exact purpose; a network which exchanges 14 billion transactions a year.

As there are so many companies connected to our network, we have been working on developing a supply chain map, which we call a business partner graph, to show who’s trading with whom across five or six levels in any one particular area; something we’re hoping to officially launch in the next 24 months.

What are the economic benefits of a fully integrated supply chain?

A better brand name in both the industry’s and public’s eye, contributing to a lift in sales; lower inventory, carrying costs and working capital by operating distribution centres and plant stores more efficiently; optimised labour and ultimately greater visibility, leading to better decision-making and less wasted material or products.

Why is the concept of a fully integrated supply chain so hard to realise?

Mostly it’s not a case of the desire, but the difficulty and time it would take to achieve. Many companies are working from severely fragmented ERP and SCM systems that have been designed for an individual company, and that’s not how the world works anymore.

There is a constant struggle to get the system behind your firewall to synch with all this information coming from outside, and so many people have been questioning whether manufacturing will go the way of the airlines.

About 25 years ago several of the major European airlines came together to address the challenge of constantly having to keep up-to-date, synchronised records of flight reservations, ever-changing flight schedules and seat availability. Their discussions resulted in a centralised computer reservation system called Amadeus which each had remote, real-time access to, saving them all precious time and money.

Might we see manufacturing companies take a similar approach?

How do fully integrated supply chains feed into the current wave of cloud computing?

Companies are beginning to look at a shared SCM system which multiple others can access via the cloud. For example, a large OEM and 20 of its key suppliers could use a cloud-based SCM application which contains master data for all 21 companies. This would eliminate the challenges of constantly trying to keep pricing, forecasting, inventory and logistics data synchronised across buyer and supplier systems. It would certainly seem to be one viable method to achieve a fully integrated supply chain in a timelier fashion.

Companies are still wary about placing sensitive data which could hold a competitive advantage onto the cloud, but as privacy regulations become more detailed and specific I think we are going to see the movement grow. Once an innovative company, say Wal-Mart or Amazon, creates this sort of eco-system with its supply partners, you’ll see other companies chasing it more seriously.

The increase of BYOD and mobility is also going to make it so much easier to keep up-to-date with your supply chain in terms of approving purchase orders, checking inventory or sales levels, and really begin to move information faster.

What do you think is next in terms of supply chain innovation?

It will be interesting to see how far we move into this cloud model and I think the Internet of Things is going to provide a wealth of big data that’s going to allow companies to make much faster and smarter decisions.

Though at the moment studies show that fewer than 10 percent of invoice in Europe are sent electronically, I think e-invoicing is going to become ever more prevalent as it can save a company upwards of 30 percent compared to traditional paper systems.

I also think collaborative logistics, where companies put rivalries aside to share space in distribution centres, or on trucks/ships/planes, is going to become more common as companies aim to perform not only smarter, but more sustainable too.

GXS is the world’s largest B2B integration services provider and operator of the world’s largest integration cloud, the
GXS Trading Grid®

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Times - they are a-changing

2013-04-12T08:05:51Z

Written by TopTenREVIEWS

To read the latest issue of Manufacturing Digital, click here

On 25 July, 1965 Folk music icon Bob Dylan walked out on stage at the Newport Folk festival with an electric guitar and single-handedly changed the face of popular music. Though the incident catapulted Dylan’s career into the stratosphere, many fans turned away, shocked at the young performer’s blatant disregard for his more traditional roots.

Many businesses are currently facing a similar dilemma, having to weigh up the decision to transfer traditional paper-based management methods, methods which staff have become comfortable with, over to digital alternatives.

Nowhere is this more relevant than in manufacturing, with managers often juggling a large workforce, tight deadlines and numerous projects simultaneously; and that’s where time tracking and management software (TTMS) can help.

Well-made TTMS prevents wasted time, stop projects from slipping through the crack and helps ensure deadlines are met; effectively monitoring what is being accomplished on the clock so you can better manage the time and productivity of your employees.

Providing businesses with time tracking, reporting, invoicing, assigning, billing and contacts management to name just a few, here are our top three time tracking and management software choices that can help eliminate wasted time and boost productivity:

Replicon

Featuring a management suite consists of six applications to track and mange different parts of a company, Replicon offers an easy-to-use interface combined with a system that will streamline the tracking and managing processes of a company.

Tenrox Timesheet

From time tracking to reporting, Tenrox Timesheet is a comprehensive management application which is compatible with accounting and payroll programs including QuickBooks, ADP, Ceridian and Paychex. There is a learning curve, but it’s small; with practice, anyone can master this software.

BillQuick

With exception time tracking features and offering a variety of all-round business management functions, BillQuick also boasts mobile app compatibility and gives employees the ability to submit expenses and timecards.

TTMS should be developed and designed to make your job as a manager easier, helping you to be more organised and make you business or team more profitable.

If you’re considering taking the plunge and investing in a software package, what criteria should you is looking for?

Time Tracking

Time tracking software should monitor and record employee hours, including work hours, vacation time, sick leave, overtime and projects. Top-end products offer the choice between automatically or manually tracking employee time, as well as providing a number of other managerial functions and produce a variety of reports.

Reporting

The best software should produce valuable reports that aid in business and time managements. Additionally, you should be able to print the reports easily and export them as document files as needed.

Other Features

Tracking features should be present, including the ability to track employees, projects, expenses, invoices and customers so that managers have the information they need at their fingertips. The best software also allow you to add notes to projects or due dates, assign work item to employees, create invoices and manage client contact information. In addition, web-based functionality is useful so that you can track your time and projects wherever you are.

Ease of Use

The software should be easy to navigate, with intuitive features, so that anyone would feel comfortable using it. The installation and set-up process should also be straightforward.

Help & Support

With any software product, excellent customer support is crucial. Top-ranking software will include a number of different avenues for customer support, such as email, tutorials, telephone and online chat capabilities.

Time tracking and management software can assist any business. Having a simply way to track, report, assign and create projects and other tasks can save time, money and help improve your business’s efficiency.

TopTenREVIEWS

Giving you the information you need to make a smart purchase, TopTenREVIEWS make a recommendation for the best product in categories spanning software, electronics, mobile, web services, appliances, entertainment and more. Through its side-by-side comparison, charts, news, articles and videos, the site simplifies the buying process for consumers, doing the research so you don’t have to.

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Auto dealers' put the brakes on renovation demands

2013-04-06T22:30:00Z

Written by Mary Ellen Biery, research specialist at Sageworks, financial information company and provider of the Business Credit Report

To read the latest issue of Manufacturing Digital, click here

US auto dealers are pushing back against manufacturers’ requirements for upgraded facilities as a new industry-sponsored study analysing the investment returns confirmed previous concerns.

Meanwhile, recent data from Sageworks Inc., suggests that privately held auto dealers are understandably focused on the programs’ payoff, considering auto dealers historically work with thinner margins than other types of retailers and private companies as a whole.

Sageworks analyst Robb Granado said:

“Privately held auto dealers have been experiencing improving net profit margins in recent years, and in fact, net profit margins have never been higher in the 10 years that we’ve been tracking them. But the money for these kinds of programs comes straight out of the bottom line, so dealers likely have issues with the requirements for a number of reasons.”

Ford Motor Co. and General Motors Co. have some programmes to help dealers pay for renovations. But at the National Automobile Dealers Association’s annual convention last month, industry consultant Glenn Mercer expressed concern that manufacturers’ push for dealers to build more expensive and more brand-customised stores will result in excessive and wasteful spending, according to NADA.

Mercer’s study found that while dealer service expansions can pay off, modernizations are harder to justify and OEM-mandated standardisation “was a bad investment.”

"We're requesting that auto manufacturers redouble their efforts to provide dealers with better business cases before investing in facility upgrades, and especially, to ease off on standardisation demands that seem very hard to justify," he continued.

Auto dealers have notched improvements in net profit margins from 2008, when they were barely at break even, to 2012, when they were at 3.8 percent, according to preliminary estimates by Sageworks. But they’re still making a little less in profit for every dollar of revenue brought in than the average retailer and than the average privately held company across all industries.

The average private company in Sageworks’ database is making about 8 cents a dollar in net profit margin; the average retailer’s net margin was 3.9 percent. The 10-year average for auto dealers’ net margin is slightly below 2 percent, compared with 2.5 percent for all retailers.

It’s unclear why profitability has improved for auto dealers in recent years. But auto dealers’ cost of sales in general are substantially higher than other retailers’, leaving them less padding to absorb overhead costs and still make a profit.

“You see a little bit of squeezing in the gross margin recently,” Granado said. “An interesting thing to see is that net margins have increased even as gross margins have decreased. We always have a hard time getting at exactly what’s at play in those numbers, but to me that means that auto dealers may be handling overhead and borrowing costs and some of those other areas of operations more effectively.”

Gross margins for auto dealers averaged 16.1 percent in 2012 and 15.1 percent over the last 10 years. Retailers overall in 2012 generated an average gross margin of 30.4 percent and 31.6 percent over the last 10 years.

Sales growth, meanwhile, has been healthy for auto dealers in recent years. Sales increased about 10 percent in 2012, nearly 12 percent in 2011 and 13 percent in 2010 following declines in 2008 and 2009.

The figures mentioned in this article are predominantly based on Sageworks estimates based on research and information collated for 2012

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