Jeffrey Bechar

The Over the Hill Gang Building products companies that are utilizing older PP&E   The analysis of any industrial company should include an assessment of the age of the company’s PP&E base. We often come across companies that are delaying refreshing their equipment, as evidenced by lagging capital expenditures, an unusually high and rising average age of PP&E, and depreciation expense that is lower than what it should be given the company’s accounting assumptions. While keeping older machines working past their prime may temporarily inflate a company’s free cash flow and earnings, the company will inevitably have to upgrade its equipment or risk sacrificing profitability due to obsolete equipment and excessive downtime, When the upgrade begins, both capex and depreciation will begin to jump which may not be anticipated by the market.   Out latest examines what to look for when evaluating a company’s equipment base before giving examples of five companies that appear to be on the brink of seeing the financial reporting benefits from using older equipment reverse. https://lnkd.in/g5dCD23Z

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𝐓𝐫𝐮𝐦𝐩𝐬 𝐯𝐨𝐰 𝐨𝐧 𝐧𝐞𝐰 𝐭𝐫𝐚𝐝𝐞 𝐰𝐚𝐫 𝐬𝐞𝐧𝐝𝐬 𝐬𝐡𝐨𝐜𝐤𝐰𝐚𝐯𝐞𝐬 𝐭𝐡𝐫𝐨𝐮𝐠𝐡 𝐬𝐮𝐩𝐩𝐥𝐲 𝐜𝐡𝐚𝐢𝐧* Whether you are happy or not with this morning's result, you are likely trying to understand its impact on your supply chain, both the risks and the opportunities. The below article from CNBC provides some analysis on what is and could happen 👇 ▪️Companies are front-loading deliveries to get ahead of any potential tariffs ▪️Based on 2018 data front-loading of shipping contributed to the 70% inflation in freight rates ▪️ Potential tariffs provide cost risk on global supply chains ▪️Increased demand for containers and freight could drive shipping costs ▪️Uncertainty around USMCA renegotiation in 2026 potentially impacting trading with Canada and Mexico It is going to be an interesting few months. Have you built these scenarios into your commodity/category strategies? What factors are you considering in your supply chain with this news? #macroeconomics #tariff #categorymanagement #catman

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Listen to my colleague Andrew Kerr highlight the importance of the relationship between sales teams and supply chain teams. The full podcast, Talking Supply Chain with host Brian Straight of Supply Chain Management Review Magazine, is available in the link below with more insights and questions answered. https://lnkd.in/eQ23Mw75 #supplychain #supplychainmanagement #podcast #WhenItReallyMatters

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I have been trying to explain Supply Chain Management to high schoolers. It’s not that easy. Parents like to see this: the number of US job postings for supply chain managers on LinkedIn more than doubled between 2019 & 2022: https://lnkd.in/gyWH5gxt. The U.S. supply chain accounts for 37% of all domestic jobs, according to the Harvard Business Review: https://lnkd.in/gbV_aMT7. WMU SCM grads have a median wage range of $65-$75K. https://lnkd.in/dkGr4_uX. Good ROI, right? Which College Degrees Have the Best Return on Investment: https://lnkd.in/e_7Ge3qG. Not becoming a victim of technology?...The ultimate SCM minor…Business Data Analytics: https://lnkd.in/eqiqSMRb & https://lnkd.in/gwHynAZB & https://lnkd.in/dtqV-HqE. Are students satisfied with their college experience?...Students have overwhelmingly positive reactions to their college experience: https://lnkd.in/gR5pNeDe. How To Become A Supply Chain Manager: Salary, Education Requirements And Job Growth: https://lnkd.in/gtXUfBJg. Goals of an internship (it’s not job shadowing): https://lnkd.in/gMtdr92u. Women in Supply Management: https://lnkd.in/g8bpMTq9. If you look at this 2020-2030 job growth chart closely, all things supply chain related scored VERY well: https://lnkd.in/g8n-dCz2

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Things that require speed require proximity. That's the post-- something to consider when designing your Supply Network. #Reshoring #Onshoring #Nearshoring #InventoryManagement #Procurement #SupplierManagement #Agility Thoughts?

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Great insights from Matt Priest and Footwear Distributors and Retailers of America (FDRA) on consumer sentiment on price increases from #tariffs.

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When a supply-chain meltdown slashed the profits of a multinational auto parts manufacturer, it was easy to blame the limited availability of materials. The real culprit was ineffective communication throughout the organization. O’Brien Associates realized this when the company’s president retained them to help management develop a strategy to bring the company out of its slump. Authentic conversations are essential to effective leadership and a healthy corporate culture, but they weren’t happening here. Employees were reticent to mention problems or suggest improvements because they believed managers would resist such input or, worse, “shoot the messengers.” The solution was comprehensive training to stress the importance of authentic conversations and encourage them at all levels. Managers learned to facilitate such conversations, empowering participants to speak up honestly without fear of repercussions. As transparent communication became the norm, the company was able to resolve its supply-chain issues and improve its bottom line. Contact us today to learn how our training programs can enhance your corporate culture and drive operational excellence. Visit our website for more details https://lnkd.in/eG4vBjGr. #CompanyCulture #LeadershipStyle #ServantLeadership #LeadershipDevelopment #ObrienAssociates

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Supply chain headaches aren’t going anywhere.   90% of companies reporting ongoing disruptions   Traditional sourcing can't keep up.   That being said...   Some companies found a better way.   Leveraging strategic sourcing partnerships to cut lead times & incr. margins   Connected with someone with 18 years of exp. in SCM   Here's what’s working:   1 - Regional supplier clusters to reduce lead times & transp. costs   (reduce shipping costs by 25-35%)   2 - Vertical integration JVs   Joint production facilities, shared R&D spaces, etc.   (30% cost reduction on key components)   3 - Nearshoring partnerships (e.g. cross-border supplier networks)   4 - Inventory sharing networks -- pool resources and reduce excess stock   (15% less working capital needed)   Apply these four tools to strengthen your supply chain going into ‘25

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All of this points toward the need for a strategic and integrated supply chain focus and especially the role of strategic sourcing. Although I have not seen this pan out (yet?) in terms of demand, hiring, needs, I am certainly curious to see what unfolds and welcome any other insight / perspectives!

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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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Derek Knueve and I recently appeared on the Talking Supply Chain podcast to discuss key considerations we're helping clients think through as they evaluate their supply chain design. Great time! #e2esupplychain #strategicsupplychain #supplychainoptimization #whenitreallymatters Brian Straight thanks for having us on! Clink the link below to listen: Talking Supply Chain: Think structurally for margin enhancements - Supply Chain Management Review (scmr.com)

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Supply chain expert Lisa Anderson discusses how to ready your supply chain for a surge in demand amidst the chaos on @Inc’s From the Ground Up podcast. Listen to the full episode to hear Lisa’s advice on how projecting future demand is paramount when facing a demand surge. https://lnkd.in/g7CTrb8e #FromtheGroundUp #SupplyChain #DemandSurge

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If you are considering ESG or sustainability goals for your 2025 budgets, we offer solutions that are within your control and can significantly boost your bottom line. Damaged and returned shipments not only represent a substantial cost for many companies but also have a considerable negative impact on the planet. #Sustainability #Packaging

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The supply chain landscape is evolving at lightning speed. From technology to resilience, supply chain leaders including Efficio's Matthew Lekstutis share their forward-thinking insights: https://lnkd.in/eUnY-MN5

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SUPPLY CHAIN TRICKY INTERVIEW QUESTIONS SERIES: A high-demand product frequently experiences stockouts due to an unreliable supplier, negatively impacting customer satisfaction. The supplier is constrained by long lead times and limited flexibility. What steps would you take to address and resolve this issue? What is the most effective solution?

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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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Your 2024 warehouse wrapped is here! Move over Spotify and Taylor, we want to know what happened with warehouses. With 1.2 billion square feet of warehouse space under management, who better to give us insights on the past year and the year to come than Prologis! Hunter HeLal and Parth Pethani from Prologis Essentials joined me last week live here on LinkedIn to discuss some of the top trends in warehousing for 2024 and what they expect will happen in the warehousing industry in 2025. You can check out the replay on The New Warehouse podcast feed and let us know your thoughts in the comments as well. Here are some of their thoughts: 💡 Cube is king 💡 Used racking was hot 💡 Big project investments coming Q2/Q3 of 25 What do you think were some of the stand out warehousing trends in 2024? Listen here: https://lnkd.in/euJUPjCy

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