Strategies to Effectively Reduce Lead Times in Supply Chains

From Easton, Connecticut, John Finneran has worked in marketing for over 30 years, half of which he spent as marketing manager for Unilever home and personal care brands. Among his accomplishments at Unilever in Connecticut, John Finneran successfully implemented local sourcing programs for major retailers that significantly decreased their lead times, which is an essential part of the supply chain.

For decades, lead times have been an issue for the manufacturing industry, as companies have grown to expect to wait long periods for certain products. This causes issues including excess inventory and slow times to market.

Strategically negotiating contracts is crucial to keeping lead times low, as the manufacturer must know exactly what they are getting from the supplier and on what schedule. Contracts are sometimes just focused on price, and the strategic manufacturer will look at every detail This will include prices, delivery schedules, lead times, and any mutual accountabilities.

Diversification of suppliers ensures a steady supply of goods, as they are relying less and less on one supplier for a product. Reducing lead times are going to include looking at multiple suppliers that can ensure an overall supply that won’t slow down production.

Poor lead times can also be caused by distribution issues. With many people now buying online, retail locations have started turning into distribution centers as well, due to in-store pickup and delivery options. Manufacturers must ensure that their end product is distributed in an efficient way, so it doesn’t hold up inventory movement.

Local Sourcing as an Option to Reduce Lead Time

An alumnus of Connecticut College, Jon Finneran is a sales and marketing consultant with decades of experience managing marketing plans for Fortune 50 companies. A resident of Easton, Connecticut, John Finneran previously worked as a marketing manager at Unilever, where he negotiated local sourcing programs with retailers to reduce lead time and increase Unilever’s sales.

Lead time is the amount of time between purchasing a product from a supplier and receiving it. It includes purchase order processing time, storage time when products ordered are kept in a warehouse awaiting delivery, and the time it takes to transport them to the customer.

Excessively long lead times present challenges to businesses. It means they may have to halt production or operational processes to wait for supplies, missing out on revenue and inconveniencing customers. To make things worse, they may be forced to make emergency purchases or carry extra inventory, incurring high supply and carrying costs. If a key competitor has a more efficient supply chain and can deliver products more quickly, it will add to a business’ injury.

Sourcing supplies locally is one strategy to reduce lead time. If a business has international suppliers, lead times can go into weeks. Therefore, the immediate purchase price savings advantages of offshore sourcing must be rationalized with the costs of inventory stock-outs to determine viability. Local sourcing decreases lead time and can be appropriate if it does not negatively impact product quality.

Three Strategies for a Successful Product Launch

A resident of Easton, Connecticut, John Finneran is an award-winning global marketing and sales professional with broad experience working with Fortune 50 companies. Previously a marketing manager for Unilever in Greenwich, Connecticut, John Finneran was responsible for creating and executing marketing plans and product launches.

Here are three strategies small business owners can use to build buzz around an upcoming product launch:

-Piggyback on industry events. You can attend industry events, trade fairs, and expos and market your upcoming product. If the press or industry influencers are in attendance, talk to them about your product and request mentions in their TV shows, blogs, and podcasts.

-Conduct a social media giveaway. On your social media pages, inform customers of your upcoming product and start a contest where users can complete specific tasks like share your posts or sign up to your email newsletter for a chance to win free products.

-Create a landing page and take pre-orders. Create a landing that introduces the world to your new product. Discuss why you made it, highlight its key features and benefits, and explicitly tell customers what makes it different from all other products. Elaborate on how customers can use the product and then invite pre-orders. This shows people that your product is real and gets them invested in its release.

Unilever Adds More Goals to Its Sustainability Agenda

Connecticut resident John Finneran has extensive experience in sales and marketing where he, at some point, has spent nearly four decades working for well-known companies. For instance, in the mid-1980s, John Finneran worked for Unilever Home and Personal Care in Connecticut for 15 years.

Unilever develops brands that people love, and some of the more popular ones include Dove, Knorr, Hellman’s, Omo, and Lipton, which are sold in 190 countries. More than making products that people love, Unilever’s current platform is based on its century’s old promise to be socially responsible.

In June 2020, for example, Unilever committed to furthering its stance in sustainability by focusing on measures to reduce climate change, protect and regenerate nature, and preserve resources. The company aims to achieve net-zero emissions by 2039 through programs that establish partnerships with farmers and other stakeholders to protect and restore the forests, soil, and biodiversity and focusing on programs that establish collaborations between governments to help water-stressed areas with getting adequate, clean water.

In the last 10years, Unilever has accomplished much in the way of sustainability. Up to this point, the company has reached 1.3 billion people through its health and hygiene programs, achieved zero waste to landfill throughout its factories by decreasing the total waste footprint per customer 23 percent, and decreased greenhouse gas emissions in its factories by 65 percent while achieving 100 percent renewable electricity among its locations.