Category: Insights

Assembly Magazine. October 19, 2022 by Harry Moser Geopolitical Forces Drive Record-Breaking Reshoring

Record-Breaking Reshoring
Geopolitical forces drive record breaking

𝗥𝗲𝘀𝗵𝗼𝗿𝗶𝗻𝗴: “Geopolitical risk and the advantages of domestic manufacturing are motivating more and more companies to move production back to the U.S., driving job announcements to record-breaking highs.” Assembly Magazine’s October assessment reflects our own experience: reshoring’s proximity to end-use customers provides compelling relief from logistical issues, risks, and costs....
Resource Utilization Resource Whiplash: From Ferocious "Battle for Talent" to Hasty Job Cuts 80% of CEOs say they are or will consider downsizing their employee base in the next 6 months Rather than cut talent you may not be able to replace, we recommend: - Exploring all cost management levers - Implementing robust SIOP to support timely, informed course correction - Redesigning facilities, processes, and workplow to more effectively match labor with demand

Resource Utilization
Resource Whiplash: From Ferocious "Battle for Talent" to Hasty Job cuts

Got whiplash? We went from a ferocious “battle for talent” to talk of widespread job cuts in the span of just a few weeks. A recent CEO survey found that 80% of leaders are or will consider downsizing their employee base in the next 6 months. But before we resort...
Recession Resilience Fortifying for an Uncertain Future Doomsday talk is everywhere, but businesses that cultivate resilience are positioned to thrive in good times and bad [Screenshots of various news article titles about recessions and the economy] Optimized SIOP extends the horizon of forecast accuracy to minimize risk, increase agility, and improve execution in any business climate.

Recession Resilience
Fortifying for an Uncertain Future

The R-word is everywhere, and advisors are touting tips to make businesses “recession proof.” Unfortunately, that concept is more myth than reality. Instead, our objective – in good times and bad – is to cultivate resilience. A “recession resilient” business has implemented comprehensive sales, inventory, and operations planning (SIOP) to...
Automotive Aftermarket Maximizing Throughput and Flow Kormac helped a leading manufacturer of truck caps, covers, and cargo systems to achieve: - 50% throughput improvement - 32% labor content reduction - Quality: right first time enhancement "Kormac found innovative and cost-effective solutions that improved Right First Time quality, throughput, and employee morale." - Client CEO

Automotive Aftermarket
Maximizing Throughput and Flow

A leading automotive aftermarket manufacturer was facing large impending order volumes and turned to Kormac for help in improving throughput, quality, and facility flow. Together, we developed a future vision for one-piece flow through their entire operation. Because new equipment proved cost prohibitive, Kormac and the client team sought to...
Cost Management Rebalancing the margin tug-of-war Does your organization struggle to achieve financial goals in an increasingly volatile marketplace? [iconography of two teams playing tug of war, with the target margin in the middle. Text above the image reads "Kormac Rebalancing"] Cost Pressures: Labor, Materials, Logistics, Real estate, Technolgy Market Pressures: Pricing, service delivery, quality, lead time, social responsibility Kormac's Surgival Strike Methodology™ delivers the agility you need to meet your financial objectivers.

Cost Management
Rebalancing the margin tug-of-war

As the labor and supply cost rollercoaster continues, we are working with several clients to identify new management levers. Among them: Increasing the frequency of cost reviews to ensure faster customer price adjustments and/or tying customer pricing to component market indices Executing Value Analysis and Value Engineering efforts to drive...
Healthcare Services Maximizing On-Time Delivery "Working with Kormac, you know you can expect a small, focus-driven team that will deliver results." - Vice President, Healthcare Services Company Sales, Inventory & Operations Planning Overhaul Achieved 100% on-time delivery and reduced SKU inventory by half

Healthcare Services
Maximizing On-Time Delivery

Customer delight begins with honoring our commitments. With that truth in mind, a leading healthcare services company turned to Kormac for help in improving its on-time delivery to customers. From forecasting and purchasing to inventory management and product delivery, our client sought to deliver an outstanding experience for its pharmaceutical...
Screencapture of a PDF with the title "Choosing the Best Path Forward: Evaluating Options for Underperforming Organizations. To view contents, download the PDF (https://kormacgroup.com/wp-content/uploads/2022/09/Kormac-Option-Analysis-COO.pdf)

Choosing the Best Path Forward
Evaluating Options for Underperforming Organizations

Inside most companies – no matter how successful – are underperforming units or subsidiaries. When ignored, these underperformers cost more than just money – they consume resources better invested elsewhere. For one recent automotive aftermarket client, Kormac analyzed an underperforming business unit contributing only 3% of company revenue. The unit...
Lean Liberation Lean as Resource Liberator Sample Kormac Lean project outcomes - -50-60% cycle time reduction - -50% WIP inventory reduction - -85% cost of poor quality reduction - +30+% improvement in labor efficiency - +30+% EBITDA improvement - +20+% useable floorspace expansion - Overall improvements in safety performance and employee satisfaction

Lean Liberation
Lean as Resource Liberator

As manufacturers grapple with rising material and labor costs, we’re seeing renewed interest in Lean. Kormac has decades of experience in employing Lean/Six Sigma/Kaizen methodologies to boost quality, productivity, and speed while reducing cost, backlog, and facility floor space. We begin each Lean engagement by analyzing our client’s product line...
Medical Device Supply Chain Complexity & Agility - Addressed $11.1MM+ overage in raw material components and $5.6MM+ overage in finished goods inventory

Medical Device: Supply Chain Complexity & Agility
Addressed $11.1 MM+ overage in raw material components and $5.6 MM+ overage in finished goods inventory

Supply chains have proven a compelling scapegoat, but many of the recent challenges reveal underlying dysfunction that preceded the pandemic. For one medical device manufacturer, supply chain (SC) complexity was creating costly overages in materials and finished inventory. Their build-to-order SC process optimized part and component costs, but did so...