Quick Reclipse Update – What is so difficult about communicating whats happening in Reclipse when you are deeply focused and working on the client challenges is that we cannot really talk about those activities. Confidentially is a critical key to successfully helping our clients go to new next levels and those plans and changes are what we are working on that become the “Whats Next”. We thrive on working to help move business entities to a new and needed next levels.
Strong current themes are: true collaboration and partnering; outsourcing next’s; innovating; speed; value; communication; ROI’s and breakthroughs.
Rewarding but challenging change management work and very people, subject matter expertise and relationship based consulting/resulting to deliver measurable soft and hard metrics objectives.
A proactive focus and onward into 2011 and building on and around progress made in 2010.

All is growing well in California following the substantial rains during the winter and spring everything in the garden is growing and blooming.

The same applies in our Reclipse World. I like to call it “moving into the light”. It is exciting times with our Reclipse team and key partnerships building with experienced and innovative top talent and real pragmatic Vision to Action programs. We are developing both internally to fertilize our growth and externally as we prepare and present “value proposition” offerings for clients and potential new clients.

Exciting – Next Generation

It is a fact that most things we currently work on are confidential and we pride ourselves in working ahead of current curves to help our clients be the “Best Next”! Personally I really dislike the terms like “Best in Class” and “Benchmarking” as that really means trying to catch up and become normal or true examples of JIT vs. JIC vs. JTL (Just Too Late)

An Example: Apple and the iPod, iTunes, iPhone current realities really were “game changing” thought leadership and innovation to action and world changing success! Now the iPad has instantly become a “fashion statement” that sells like hot cakes and has created a whole new product, market and community category.

At Reclipse we prefer to work on innovating and creating “next generation” happenings for and with our clients.

Exciting – An all Electric Vehicle

One project I can mention is in our Sustainability, Clean and Green, category. This is a Company that has built a “Zero Emissions” electric vehicle that charges rapidly, has a long range between charges and can and does drive on the freeway as it goes fast enough to be able to. We are developing the Vision (s), Mission, Values, Strategies and Tactics for this entity and a business model that can bring most value for all. The working concept vehicle is operating and very exciting and very real!

We have also developed some compelling Business Chain Management offerings as although we are proven experts in all aspects of cradle to cradle (we borrowed that term from someone) Global demand/supply chain management, integrated logistics, operations and asset management practices we also know that its time for a next level of thought leadership thinking and actions to suit the world we are in and the one ahead of us. To many experts SC terminology for example has become a misused catch all and nothing phrase that has created and not integrated Company stovepipes/silos versus produced real “Business” Sales, Cost, and Profit and Innovation success results. Our Business Chain (Change) thinking, methods and actions help build a wave of change towards true “next generation” customer, people and talent centric collaborations and business innovations results successes.

Exciting – Outsourcers, the 3PL’s (4PL’s)

One of these next generation offerings is targeted at the current 3rd Party Logistics Outsource providers who have to keep up with the ever increasing demands and expectations of the Brand designers/ODM’s who outsource to others to get things produced and delivered for them to an ever increasing and demanding Customer and Cost reduction expectation. How do the 3PL’s survive and compete to thrive in this very demanding arena. Our offering, value enhancing propositions and know how to methods and “how to’s” are targeted to pragmatically help companies in this arena.

Exciting Times

So “lots going on” and it truly is an exciting time and opportunity for us all. Let the Sun shine and the gardens grow!

- Nigel

Susan Rosin, our President, came across an interesting article in Supply Chain Digest (http://tinyurl.com/Own-assets-article), which poses the question: “Who will own the Supply Chain?”

The article never totally answers the question, but puts forward a few theories, which conclude that some “poor SOB will”, in the end, own the assets and have to “sweat them out” if they are to succeed.

The “raison d’etre” of outsourcing was/is cost reduction. And while manufacturers claimed they were focusing on their core competencies and outsourcing what they were not able to do well, the fact was that they choose a relatively easy way out to unload assets, reduce costs, and increase profits. Why is it that American companies cannot figure out a way to be cost competitive and manufacture products locally?

Historically, outsourcing, in the logistics area, became very strong in Europe due to a lack of space to build multiple distribution centers and because of complex government trade compliance laws within what is now the EU, in particular. To a certain extent in Europe, outsourcing was not done as a matter of choice, but as a matter of necessity. In the US, logistics outsourcing became more popular as distribution models began to change and the emergence of the Internet forced the brick and mortar players to eliminate assets to be “more competitive.”

The outsourcing of manufacturing and “localization” capabilities was done because manufacturers thought they could become much more competitive if they “off-shored” their manufacturing. When the labor component was a larger portion of the overall cost, this was certainly true. When the contract manufacturers in Asia, whether electronic contractor manufacturers or the textile manufacturers, pay their workers 10% or less than American or European workers make, clearly outsourcing made sense.

But outsourcing led to two very significant developments in the supply chain – globalization and integration. The supply chain quickly became a series of supplier and customer networks integrated together through technology – more or less –  developed. And herein lies the answer to the question: who will own the assets? While these assets may appear only on one company’s balance sheet, without the support of and from this companies’ suppliers and customers, the question becomes irrelevant because this manufacturer or logistics provider will go out of business. The global integration of supply chains today has made it more difficult to distinguish who owns what and for whom. This has become even more apparent since the “Great Recession” of 2008-9 when governments interceded on behalf of major industry players.

So the guy holding the bag and sweating out the assets will never be successful with that approach. The future of the Business Chain is in the more tightly integrated supply/demand networks with perhaps, intermediaries (such as logistics providers, 4PLs) orchestrating the flow of orders to manufacturers who have capacity; the transport of goods either into distribution centers who have capacity or by-passing them to deliver to the final customer; and managing the returns process to manufacturers or other logistics providers who can fix and inventory or return product back to the customer. The technology exists to implement this – the real question today is who is willing to combine and collaborate to make it a reality.

Deby Veneziale
Reclipse Group
Managing Director EMEA