Modeling Piece Price Comparisons for Local & Regional Suppliers v Low-Cost Country Initiatives
Art Koch’s Profit Chain® Tips | Volume 5 | Number 24 | December 2024
As a procurement officer, you’ve possibly been in the crosshairs of debate between sourcing locally and regionally versus from low-cost countries endorsed by many executive staff and boards of directors. Piece price isn’t the total cost of ownership of the item purchased. Everyone agrees with this view, including executives and boards. The common phrase is: Cheap is expensive.
My article appeared recently in SCM Dojo … read more
The Supply Chain Revolution: Unlocking the Sustainable Profit Chain – Ch 10, 11 & 12
Art Koch’s Profit Chain® Tips | Volume 5 | Number 23 | November 2024
I’m going to do my ‘What’s Inside the Book’ series slightly differently this month. Here I cover three chapters – what you’ll find in Chapters 10, 11 and 12! It’s all about the phases of Entropy Busters®.. … read more
The Book Revue – Celeste Hann
Art Koch’s Profit Chain® Tips | Volume 5 | Number 22 | December 2024
Celeste Hann from The Book Revue kindly gave my book, The Supply Chain Revolution: Unlocking the Sustainable Profit Chain, 5 stars. You can read her full review here. … read more
The Supply Chain Revolution: Unlocking the Sustainable Profit Chain – Ch 9
Art Koch’s Profit Chain® Tips | Volume 5 | Number 21 | November 2024
Returning to sharing what’s inside my book The Supply Chain Revolution: Unlocking the Sustainable Profit Chain! Let’s have a look at what’s inside Chapter 9: Turbocharging Supply Chain Sustainability. Just like divers use tools and techniques to avoid the bends, organizations need to establish strong processes to prevent entropy from creeping into their operations. … read more
Supply Chain Entropy Busters: 3 Phases to Accelerate Processes
Art Koch’s Profit Chain® Tips | Volume 5 | Number 20 | November 2024
Have you ever considered the impact of entropy on your business — let alone your supply chain? If you haven’t, you’re not alone. It was only during my undergraduate studies, while talking with a physics professor about my career, that I began to consider it.
I shared my 3 phases to accelerate processes with YFS Magazine recently! … read more
The Supply Chain Revolution: Unlocking the Sustainable Profit Chain – Ch 8
Art Koch’s Profit Chain® Tips | Volume 5 | Number 19 | October 2024
Back to sharing what’s inside my book The Supply Chain Revolution: Unlocking the Sustainable Profit Chain! Let’s have a look at what’s inside Chapter 8: The Art of Equalization: Achieving Balance in Materials and Inventory Control. I have a special offer for those who listen right through! … read more
Interview: Art Koch and Eric Dye
Art Koch’s Profit Chain® Tips | Volume 5 | Number 18 | November 2024
My comparison of supply chain management with scuba diving struck a chord with many people – including Eric Dye of Enterprise Podcast Network. Listen to our interview here. … read more
The Supply Chain Revolution: Unlocking the Sustainable Profit Chain – Ch 7
Art Koch’s Profit Chain® Tips | Volume 5 | Number 17 | October 2024
Let’s continue with my What’s Inside the Book series with Chapter 7 of The Supply Chain Revolution – Unlocking the Sustainable Profit Chain. In this chapter learn why Forecasting is Always Wrong! … read more
Interview: Art Koch and Scott “Shalom” Klein
Art Koch’s Profit Chain® Tips | Volume 5 | Number 16 | October 2024
I enjoyed chatting with Scott “Shalom” Klein on his show Get Down to Business. We discussed the supply chain and of course my new book “The Supply Chain Revolution: Unlocking the Sustainable Profit Chain”. … read more
Finding Geniuses and Castaways: 10 Rules for Building Super Teams
Art Koch’s Profit Chain® Tips | Volume 5 | Number 15 | October 2024
It’s expensive and risky to make new hires – especially at the senior-most level. But what if you didn’t have to?
If you’re looking to build a super team, I shared my 10 rules for doing so with Chief Executive magazine recently! … read more
The Supply Chain Revolution: Unlocking the Sustainable Profit Chain – Ch 6
Art Koch’s Profit Chain® Tips | Volume 5 | Number 14 | October 2024
What’s inside Chapter 6 of The Supply Chain Revolution – Unlocking the Sustainable Profit Chain? In this chapter we look beyond the surface and uncover the total cost of ownership. … read more
The Supply Chain Revolution: Book Review – Bob Morris
Art Koch’s Profit Chain® Tips | Volume 5 | Number 13 | September 2024
Bob Morris recently reviewed my book The Supply Chain Revolution – Unlocking the Sustainable Profit Chain for his site Blogging on Business. The book has received some great feedback! … read more
The Supply Chain Revolution: Unlocking the Sustainable Profit Chain – Ch 5
Art Koch’s Profit Chain® Tips | Volume 5 | Number 12 | September 2024
What’s inside Chapter 5 of The Supply Chain Revolution – Unlocking the Sustainable Profit Chain? I debunk the myths around inventory. Inventory is your security blanket? NO! Inventory is evil! … read more
How to Ensure Profit Chain Security – Authority Magazine Interview
Art Koch’s Profit Chain® Tips | Volume 5 | Number 11 | September 2024
I was interviewed recently by David Leichner for Authority Magazine. We covered how to ensure product security in collaboration with external vendors and partners – including my 5 best practices. … read more
The Supply Chain Revolution: Unlocking the Sustainable Profit Chain – Ch 4
Art Koch’s Profit Chain® Tips | Volume 5 | Number 10 | September 2024
What’s inside Chapter 4 of The Supply Chain Revolution – Unlocking the Sustainable Profit Chain? It’s all about being swift yet meticulous – rapid assessment of your supply chain! … read more
The Supply Chain Revolution: Book Review – Hollywood Digest
Art Koch’s Profit Chain® Tips | Volume 5 | Number 9 | September 2024
I was so pleased to learn that my book “The Supply Chain Revolution – Unlocking the Sustainable Profit Chain” was reviewed in the Hollywood Digest. The Hollywood Digest is the premier online entertainment magazine, bringing you the latest news on music, films, TV shows, books and celebrities. They also review business books – and they reviewed mine! … read more
The Supply Chain Revolution: Unlocking the Sustainable Profit Chain – Ch 3
Art Koch’s Profit Chain® Tips | Volume 5 | Number 8 | August 2024
What’s Inside Chapter 3 of The Supply Chain Revolution? Well, it’s all about Mastering the Fundamentals – the bedrock of supply chain management! … read more
4 Key Reasons Executives Wait to Engage Experts
Art Koch’s Profit Chain® Tips | Volume 5 | Number 7 | August 2024
In July I was pleased to have an article I wrote included in The Good Men Project site. The Good Men Project is a men’s site that promotes enlightened masculinity. You can read the article here! … read more
The Supply Chain Revolution: Unlocking the Sustainable Profit Chain – Ch 2
Art Koch’s Profit Chain® Tips | Volume 5 | Number 6 | August 2024
Continuing my ‘What’s Inside the Book’ series – here I share what you’ll find in Chapter 2: Building Professionalism in Supply Chain Management. We’ll cover the critical role of SCM, professionalism, share a case study, and more! … read more
The Supply Chain Revolution: Book Review – ‘Medium’
Art Koch’s Profit Chain® Tips | Volume 5 | Number 5 | August 2024
In July Colin Jordan, a former reviewer for The Hollywood Reporter, reviewed my book “The Supply Chain Revolution: Unlocking the Sustainable Profit Chain”. I’ve included it in full here! You can also find it on Medium!… read more
The Supply Chain Revolution: Unlocking the Sustainable Profit Chain – Ch 1
Art Koch’s Profit Chain® Tips | Volume 5 | Number 4 | July 2024
My book, “The Supply Chain Revolution: Unlocking the Sustainable Profit Chain,” is now available on Amazon and I am thrilled to share with you what’s inside. Here is an introduction to the book and some tips on how to navigate it!… read more
The Supply Chain Revolution: Unlocking the Sustainable Profit Chain
Art Koch’s Profit Chain® Tips | Volume 5 | Number 3 | June 2024
As I mentioned in my February newsletter, I’m thrilled that my book, “The Supply Chain Revolution: Unlocking the Sustainable Profit Chain,” is now available on Amazon June 13th – Pre-order today! Paperback $41.99 and Kindle $17.99. It’s a transformative guide that challenges traditional views of supply chain functions as mere cost centers, proposing they can be dynamic profit engines… read more
In Crisis – America’s Industrial Leadership
Art Koch’s Profit Chain® Tips | Volume 4 | Number 9 | September 2021
Too many executives in corporate leadership misread the substantial risk they were putting their customers and businesses in by moving overseas. We’re also seeing Gen X and Millennials leaving employers in record numbers. … read more
Wuhan’s Butterfly Effect on Supply Chains
Art Koch’s Profit Chain® Tips | Volume 4 | Number 8 | August 2021
It’s rapidly approaching two years now (November 2019), when COVID-19 was circulating in the area of Wuhan, China infecting the first cluster of humans. Since the first reported outbreak of COVID-19, it’s been an incredibly crazy experience all over the world. However, that first cough or sneeze was likely the cause of the current global supply chain disruptions. … read more
The Delta Variant’s Impact on Global Economic Recovery
Art Koch’s Profit Chain® Market Report | Volume 1 | Number 2 | August 2021
By the spring of this year, Americans were optimistic about returning to everyday life after more than a year of shutdowns from the Covid-19 pandemic. Instead, the Covid-19 virus threw us a curve mutating into a more virulent but less deadly Delta variant. … read more
Avoiding Supply Chain Disruptions
Art Koch’s Profit Chain® Tips | Volume 4 | Number 7 | August 2021
A colleague recently joined a new company as their CEO. During the first few weeks on the job and working through the due diligence of the current situation, there was a quick realization of the current state of disruptions engulfing their worldwide supply chains and the potential impact on current profits. … read more
Inflation: Is it Transitory or a Longer-Term Challenge?
Art Koch’s Profit Chain® Market Report | Volume 1 | Number 1 | July 2021
I’m excited to announce a welcome addition to my monthly newsletter family. The MR will be presented in a monthly format in conjunction with Deborah Brown, CEO of DDB Advisory Services. I’ve known Deborah for over fifteen years and trust that her insights will inspire you. Our goal is to highlight the relevant KPIs in the financial markets within the past 30 days, demonstrate how these factors impact supply chains and recommend measures to diminish those impacts. … read more
Avoiding Disaster
Art Koch’s Profit Chain® Series | Volume 4 | Number 6 | June 2021
Let us begin our discussion with the fact that disasters are not a surprise and, therefore, can be avoided.
As most of you are aware, I live in South Florida, or more specifically, Miami. It’s a beautiful area with sun-soaked beaches and bodies and a plethora of luxurious cars and boats to keep your lottery dreams alive. … read more
Winning The Parts Allocation War
Art Koch’s Profit Chain® Series | Volume 4 | Number 5 | May 2021
Shortages – we’re living them every day: stock-outs of our favorite food, the new gadget for the home office, or deficiencies that are impacting our manufacturing processes. Even if they are not directly affecting us, we certainly have heard about them on the news. STOCK-OUTS!!. … read more
Are you Addicted to Inventory?
Art Koch’s Profit Chain® Series | Volume 4 | Number 4 | April 2021
Many businesses are addicted to inventory, and it’s become their drug of choice! Rather than solving the root cause of problems, the answer is, “let’s increase safety stocks.” Leaders don’t understand their addiction and how a massive dependency on inventory creates a monster that needs to be tamed. What do you see when walking through the doors of your operations? Do you see stacks of your organization’s addiction?. … read more
Positioning Supply Chains for the Raging 2020s
Art Koch’s Profit Chain® Series | Volume 4 | Number 3 | March 2021
Former US President Trump’s administration initiated Operation Warp Speed in March of 2020. The goal was to get multiple COVID-19 vaccines FDA approved within nine months. To put things in perspective, the typical time to bring a vaccine from development, clinical trials, production, and finally to administered doses is ten years! Not only was the goal achieved, but they were also able to ramp up vaccine production to 100 million doses at a rate of one million per day within 30 days of approval. … read more
My Business Got COVID
Art Koch’s Profit Chain® Series | Volume 4 | Number 2 | February 2021
I’m not telling you that any of our team members or I got COVID. My argument here is that the business got COVID. More and more, I’m discussing the current situation with my client’s leadership and witnessing the long-term effects of having their team members working remotely. … read more
2021 = Optimism
Art Koch’s Profit Chain® Series | Volume 4 | Number 1 | January 2021
As we exited 2020, I stepped back and reflected on the past year, looking forward with optimism for 2021. Even though 2020 was a troubled year, I’m not going to rehash the details. I believe there are multiple bright spots of hope ahead and an excellent reason to have confidence in humanity. … read more
COVID – The Perfect Disrupter for Small and Medium Enterprises to Leverage Growth
Art Koch’s Profit Chain® Series | Volume 3 | Number 12 | December 2020
With any significant event, crisis, or seismic economic shift, there will always be the opportunity for agile enterprises to fill the void the disruption creates. The COVID pandemic drastically hastened the retreat from globalization, and depending on the survey, 67% to 84% of North American executives say they are increasing reshoring initiatives. The withdrawal from globalization creates opportunities for enterprises to work quickly and have a depth of expertise to seize the moment. … read more
The Three Fs of Supply Chain Management
Art Koch’s Profit Chain® Series | Volume 3 | Number 11 | November 2020
During my supply chain management career, I’ve learned how our roles support the Board of Directors. The Board of Directors are charged with two key elements that supply chain professionals can impact: risk mitigation and shareholder value. We reduce risk by building sustainable processes, inclusive teams, and developing supplier partners. We improve corporate valuation by lowering the total cost of ownership (TCO) and increasing inventory velocity. read more
Finding Genius and The Castaways
Art Koch’s Profit Chain® Series | Volume 3 | Number 10 | October 2020
If I were to tell you that you have an untapped resource within your organization and that it’s free if you know how to slow down to find it? It is how leaders discover, cultivate, and sustain the hidden talent in their organization. … read more
The Entropy Less Organization
Art Koch’s Profit Chain® Series | Volume 3 | Number 9 | September 2020
What is entropy? It’s the old farmhouse falling into disrepair. Have you started the day with a game plan, and before you get in the door of your office, “Poof,” the plans have vanished into thin air? It feels as though the day is managing you, rather than you managing the day. It is Entropy at work.: … read more
Meet America’s New Homecoming Queen; Manufacturing
Art Koch’s Profit Chain® Series | Volume 3 | Number 8 | August 2020
Before the pandemic, in 2017-2018, we had witnessed the peak of globalization. Results of several recent polls taken of industrial leaders indicate that between 65% to 85% plan to re-shore, nearshore, or insource products manufactured in remote parts of the world to reduce their supply chain risk: … read more
COVID-19: The Reindustrialization of America
Art Koch’s Profit Chain® Series | Volume 3 | Number 7 | July 2020
We have learned important lessons from the ongoing COVID-19 black swan event. Here is a quick recap of the most significant lessons learned: … read more
Printing Gold with 3D Printing / Additive Manufacturing
Art Koch’s Profit Chain® Series | Volume 3 | Number 6 | June 2020
It was just last year when Apple Inc. (AAPL) announced that the company had exceeded a market value of $1 Trillion. How did they become the first company with a trillion-dollar valuation? It is my opinion that it was Steve Jobs’, and now Tim Cook’s, relentless focus on simplicity. Both understood that it would not be easy and that it would take unwavering tenacity to achieve their vision. … read more
To CEO’s: You’ve Been Misguided by Antiquated Cost Accounting & Incorrect Performance Indicators
Art Koch’s Profit Chain® Series | Volume 3 | Number 5 | May 2020
Total Cost of Ownership (TCO): TCO includes all of the direct and indirect costs associated with an asset or acquisition over the entire life cycle of the product or service. TCO includes not just the purchase price, but also the cost of transportation, handling and storage, damage and shrinkage, taxes and insurance, and redistribution costs … read more
The Economic Colonization of American Health Care Supply Chain
Art Koch’s Profit Chain® Series | Volume 3 | Number 4 | April 2020
Can you imagine the United States outsourcing 80-85% of our defense contracts to the lowest bidder? And if we were to do this, would we be putting our national security and sovereignty in great jeopardy? Absolutely! This is exactly what the health care industry has done to the US! … read more
The Call of a Generation – Navigating the Covid-19 Crisis
Entropy Busters® Series | Volume 3 | Number 3 | March 2020
As our parents, grandparents, and great-grandparents before us, each generation was called on to make sacrifices for their country: whether it was during World Wars, The Great Depression, or similar pandemics such as the Spanish Flu. Today, WE are the generation who must make the sacrifices. … read more
How that’s Plan “B” for your China Supply Chain?
Entropy Busters® Series | Volume 3 | Number 2 | February 2020
I started with, “Let’s start with the realization that plan “A” to relocate operations to China had a major flaw. If you moved manufacturing to China, India or any other low-cost producing country with the intention of importing goods back to North America or Europe (half a world away), then your plan was unsound!” The primary focus was on inventory velocity, total cost of ownership and the ethics of investing . … read more
Lap Around The Big Shiny Thingie
Entropy Busters® Series | Volume 3 | Number 1 | January 2020
Scrapping the Notion of New Year’s Resolutions … We are now into the third full week of the New Year. If you made resolutions, how many are still in-place? Statistics show 90% are dropped within the first 30 days. What can you do differently to improve your personal brand? . … read more
The Important gets Sacrificed for the Urgent
Entropy Busters® Series | Volume 2 | Number 12 | December 2019
Do you or anyone within your organization ever sacrifice the important for the urgent? This is one of the key challenges of many organizations. When you look at the team member’s challenges: e-mails, mobile phones and open work spaces, it’s nearly impossible to find the quiet time and space to complete meaningful work.. … read more
Knocking Off the Training Wheels
Entropy Busters® Series | Volume 2 | Number 11 | November 2019
Recently, I attended two industry functions and spent several days with other consultants, advisers and strategists. It’s always great to be around other smart people. It makes you elevate your own game.. … read more
Plan “B” for your China Supply Chain
Entropy Busters® Series | Volume 2 | Number 10 | October 2019
Let’s start with the realization that plan “A” to relocate operations to China had a major flaw. If you moved manufacturing to China, India or any other low-cost producing country with the intention of importing goods. … read more
Entropy Busters® has competed the full trademark registration steps
Entropy Busters® Series | Volume 2 | Number 9 | September 2019
For those who have known me for years, you know that Entropy Busters® is a phrase I routinely use to explain business processes that have broken down while simultaneously revealing what is needed to sustain best practices. … read more
Three Summer Vacation Lessons that help you succeed in life and in business
Entropy Busters® Series | Volume 2 | Number 8 | August 2019
As many of you know, I’m an avid scuba diver and underwater photographer. When I need to recharge or re-energize my mind and soul, diving is my therapy of choice. We just recently returned from 2 weeks in French Polynesia. It was an absolutely magnificent trip, however; it did not start that way … read more
Why Waste a Perfectly Good Recession?
Art Koch’s Profit Chain® Series | Volume 2 | Number 7 | July 2019
Lately, much has been written about the impending economic downturn and the need to recession-proof your business.. … read more
Supply Chain Management is alive and well!
Art Koch’s Profit Chain® Series | Volume 2 | Number 6 | June 2019
I liken this article to the mid 1980’s and the push for “Lights Out” manufacturing. Are they shouting from the same roof top? Have not educators and professionals alike learned that lights out manufacturing has an extremely limited application. And here they are sounding the same horn. … read more
Notre-Dame | Boeing 737 MAX | Leadership
Art Koch’s Profit Chain® Series | Volume 2 | Number 5 | May 2019
The dust has settled on two defining disasters of 2019 (and possibly the decade): the Notre-Dame fire and Boeing 737 MAX crashes. What should we learn from these tragedies, and why are we always destined to repeat the mistakes of history?” … read more
Art Koch’s Profit Chain® Series
Volume 2 | Number 4 | April 2019
I organize plant tours for a client’s leadership team. The purpose of the tour is to help the team recognize different areas of operation and supply chain management and how those areas affect the operating agenda and financials.” … read more
Inventory Carrying Cost: A Total Cost
Volume 2 | Number 3 | March 2019
We have been talking about improvements to inventory velocity. So far everything has sounded very straightforward. Then why are we not all achieving world class results? What are some of the barriers? … read more
MRP as Push Processes
Volume 2 | Number 2 | February 2019
This month let’s talk about increasing inventory velocity. Have you ever wondered why you can’t achieve the reduction anticipated? As leaders we need to develop the ability to see decoupled processes within the supply chain. One such area is the relationship of MRP and pull systems … read more
Inventory Is Evil?
Volume 2 | Number 1 | January 2019
Today let’s think about why inventory is evil!. One of my top priorities is helping clients understand why inventory is evil, getting their organization to reframe views on inventory and its cost to organization and customer service. … read more
Entropy Busters®
Volume 1 | Number 5 | December 2018
My passion is helping clients – Reshape and Transform their Supply Chain Management Strategy, Design, and shifting their paradigms on process sustainability. I utilize my Entropy Busters®, Inventory Is Evil!, and Unlock the Art of Change methodologies to achieve sustainable results. Improving Customer Service, while Increasing Inventory Velocity and profitability. Let’s discuss my Entropy Busters™ methodology. One of your top priorities needs to be the elimination of Entropy within your Supply Chain … read more
The Zero Unemployment Effect
Volume 1 | Number 4 | November 2018
What is zero unemployment? Is your organization prepared for the potential long-term effects of zero unemployment? Let’s start with the definition: the condition in which virtually all who are able and willing to work are employed. … read more
Rationalizing the Enterprise
Volume 1 | Number 3 | October 2018
Article after article has been written about the advantages of complexity reduction and what should be done. However, too often there is little focus on the root cause of entropy creeping into the enterprise. A recent Forbes article outlines the seven steps to reduce complexity. Each step mentioned addresses the symptoms of the illness and not the disease … read more
The Elegance of Simplicity
Volume 1 Number 2 | September 2018
It was just last month when Apple Computers passed the market value of $1 Trillion. How did they become the 1st company with a trillion-dollar valuation? For me, it has been Steve Jobs and now Tim Cook’s, relentless focus on simplicity, the understanding it will not be easy and the tenacity to achieve their vision … read more