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North Texas Global Trade Advantage
Much public discussion has arisen in the past 18 months around topics such as China manufacturing, outsourcing of jobs off-shore and US national foreign trade deficits . . .
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Global Trade Advantage Survey
How well is your company leveraging the North Texas Assets for global logistics?
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Drive ROA with RFID
While the recent attention given to RFID has been interesting, it is useful to step back and examine the RFID business value proposition in light of working capital, or more specifically inventory and Return On Assets (ROA).
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DCRA Inc. Case Study with Siemens Broadband in North Texas
Read this independent case study article that was originally published in Global Logistics and Supply Chain Strategies in late 2004 on the turnaround success at Siemens Broadband.
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Texas Manufacturer Larson Electronics Goes Global
Larson Electronics relies on DCRA to assist with a winning global supply chain strategy.
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Total Order Fulfillment™ and Industry Resources
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Volume 1, Issue 1 |
Welcome to the first issue of the Newsletter for the Texas Logistics Capability Council™ (LCC) and the initial release of LCC KnowledgeBase (www.texaslcc.org).
The LCC™ and the corresponding website has been deployed under the leadership of Jon Kirkegaard and Darren Ward at Dynamic Cycletime Reduction Associates (DCRA Inc.) and is dedicated to providing manufacturing and distribution companies with the information and resources to maximize global competitiveness using North Texas as a base for product fulfillment , manufacturing, value-added services and/or distribution throughout North America. The LCC is led by DCRA Inc. and sponsored by the DFW Regional Workforce Leadership Council and a private advisory board representing manufacturing, logistics, universities, and other value-added capabilities. It is packed with valuable content and organized by company function, industry, and role to facilitate quick access to valuable and relevant information that can supercharge the supply chain of your business!
Special Thanks to the initial group who donated time, resources and money for the initial release of the Logistics Capability Council™ knowledgebase site to include the Texas Manufacturing Assistance Center, Impact Innovations Group, i.think_inc., and DCRA Inc.
Global Trade Advantage™
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As we have all seen and heard much public discussion has arisen in the past 18 months around topics such as China manufacturing, outsourcing of jobs off shore, US national foreign trade deficits, protection of intellectual property when produced offshore, commentators on the national news shows beating the drum of the risk of “Outsourcing of America”, presidential election debate topics, and individual company board rooms and management team discussions on survival and strategy. It is our observation that although much noise has been created describing that there may be a serious problem very few constructive solutions have been put forth. It is our intent in this brief article to provide concrete activities that you a Texas based business can do TODAY to not only survive these challenges- but more likely capabilities to allow your business strategic advantage TODAY. More resources on this topic are available through a public educational effort named the North Texas Logistics Capability Council and a recently released Knowledgebase.
Read the full article>>
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Global Trade Advantage Survey
Take advantage of this quick online survey to let us know where you stand and what you need to make your business more competitive in the global marketplace. All Survey participants will be contacted by an LCC board member who will detail the findings from the survey. We will also provide the results to senior regional, state and national governments to do what we can to encourage the government to provide policies that assist you in being more competitive in the global marketplace.
Click Here to Learn More (~5 minutes to complete survey)
How to drive ROA with RFID
Read the full article > >
While the recent attention given to RFID has been interesting, it is useful to step back and examine the RFID business value proposition in light of working capital, or more specifically inventory and Return On Assets (ROA). It seems that RFID proponents rarely discuss RFID without making claims to dramatic inventory savings; however these savings require a business to first “invest” in RFID and then “wait” long enough for the returns. It also seems that many “RFID experts” have a deep understanding of information technology but a shallow understanding for the statistical science of inventory and supply chain management business solutions.
To evaluate investments to reduce inventory, and hence working capital, we should consider the impact on ROA, which is a proven indicator of financial impact of an investment.
Read the full article > >
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A Case Study in Total Order Fulfillment™
Read or download the Case Study > >
DCRA Inc. the founder of the Logistics Capability Council has worked with numerous clients to provide competitive advantage through their supply chain operations. To see how, read this independent case study article that was originally published in Global Logistics and Supply Chain Strategies in late 2004 on the turnaround success at Siemens Broadband.
Results achieved include:
- Improved inventory turns from 4 to 32.
- Reduced inventory holdings from net $63,000,000 to $8,000,000.
- Lowered transportation costs per unit by 61%.
- Improved operating cash flow from negative $48,000,000 to positive $10,000,000.
- Achieved operational profitability in July 2003.
- Improved DSO from 129 days to 47 days.
- Cut accounts receivables from net $67,000,000 to net $33,000,000.
- Reduced accounts receivables reserves from $11,000,000 to $2,000,000.
- Improved working capital from $64,000,000 to negative $20,000,000.
Read or download the Case Study > >
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Larson Electronics Goes Global
Larson Electronics LLC manufactures spotlights under the brand of MagnaLight and distributes safety equipment for the cable, telephone and electric utility markets. As a small domestic manufacturer, Larson Electronics faces many challenges. Larson’s primary goal is to turn around purchase orders within 12 hours. Today, this is accomplished with high quantities of inventory for a small number of SKUs. In order to grow the business, Larson is extending its product line to include additional products that meet the needs of customers. Many of these products are manufactured in China, including flashlights, batteries, safety vests, hard hats and hand tools. At Larson’s current size, going directly to China creates many complications since Asian manufacturers require container-load orders. Therefore Larson needs to balance growing demand and new product introductions with distributed inventory management, while becoming proficient at landing products into Texas from China.
Larson is also considering moving the bulk of its existing production to China to lower the cost of manufacturing and reduce fixed overhead. To help with addressing these challenges Larson is turning to DCRA and the Texas Logistics Capability Council (LCC). “We are working with DCRA to solve a growing problem,” said Rob Bresnahan, President of Larson Electronics. “Namely, how do we take advantage of lower production costs in China without becoming overwhelmed with excess inventory or giving up intellectual property? DCRA has a proven track record of engineering solutions to these challenges leveraging concepts such as S&OP, postponed fulfillment and intelligent supply chain integration to include leveraging transportation as a strategy rather than a cost center".
"This is exactly the kind of initiative we want to help Texas businesses with", said Fran Means, the government member of the LCC and the regional coordinator at the North Central Texas Workforce Development Board. "By helping companies like Larson Electronics grow their business here locally, we are realizing the goals Gov. Rick Perry's industry cluster initiatives to retain and expand Texas industry".
Ultimately, Larson Electronics realizes supply chain perfection is not required, but that they must be better than their competition to drive growth and profitability. By leveraging the LCC and DCRA, they are on the right track to win. We will report from time to time on Larson's experience in growing their business and competing globally. See Larson Products Online
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