Supply chain management is more complex than ever before because of technology and globalization. ALOM embraces the complexity as an opportunity to provide customers the quality they need to remain competitive.
By Valerie Gomez
Most companies would never market themselves as able to provide flawless products and services, but ALOM does not hesitate. ALOM provides technology-based flawless global supply chain execution services on five continents. Under the direction of President & CEO Hannah Kain, the company tackles some of the most complex supply chains by delivering customized and innovative services designed to get the right client products to the right market at the right time. For ALOM, success is based on delivering the highest quality contract manufacturing and order fulfillment services to customers so they can maintain a competitive advantage in a global business environment where constant change is the norm. Using a collaborative business model, ALOM manages complex supply chains from the first supplier to the last customer, maintaining alignment and cost efficiency at all times.
Supply Chain Management Founded on Quality
ALOM performs at Six Sigma quality levels and is recognized as a premier leader in executing a flawless supply chain process for primarily Fortune 100 corporations in a number of industries that include medical, technology, financial, automotive, energy and government. The company is a solutions provider, manufacturing and distributing customer-owned products that are typically technology-driven, like IoT enabling technology, tech gadgets, and technology used in stores. ALOM has developed its own technology to facilitate the execution of supply chain but has no branded products. All their services are behind the scene and include every step in the supply chain process, including supply chain planning, order and inventory management, production, fulfillment, and reverse logistics. "We have distribution centers throughout the world so we can get our customers' products close to their customers," explains Hannah. "Getting manufacturers and distributors who get the correct product at the correct time to the correct location is complicated. Each step alone is not difficult, but maintaining the alignment and smooth flow is very complex." ALOM uses technology to help customers meet their goals, including avoiding inventory overstock, on-time product delivery, and cost efficiency.
ALOM helps customers avoid redundancies and manage contingencies, like selling more than anticipated. Maintaining flexibility in the supply chain is a key factor in remaining competitive in today's world. Hannah adds, "It is also very important to our customers to help them be good global citizens and maintain alignment around sustainability and running an ethical supply chain." She points out that it has become even more important in recent years as major corporations suffered big reputational losses from supply chain problems, like unsafe factories. ALOM recognizes and addresses these kinds of issues in supply chain management. The company focuses on things like sustainable packaging, minimizing transportation time, and qualifying suppliers based on ethical and quality standards.
ALOM also wants to do business with suppliers who give back to the community because this is an important factor in the company's success. ALOM supports HOPE Services for people with disabilities for people with and nurtures diverse suppliers so they can succeed. "We promptly pay our suppliers so they are not financially stressed," says Hannah. This is so important because so many companies use suppliers like they are banks. When corporations stretch out payments to diverse suppliers, the suppliers suffer disproportionately. We work with suppliers to get them paid fast, guide them on lead times, and work with them in a very collaborative manner." ALOM also takes environmental sustainability seriously too, helping clients like Ford Motor Company recycle supply chain hardware and reselling hardware scrubbed of data. ALOM manages the entire recycling process for the client. This is a typical example of how the service company works with its customers.
Solving Problems with Flawless Execution
Flexibility, real-time visibility, and quality are three principles underlying ALOM's services. Customers can avoid over stocking inventory which means less scrap products and wasted resources. Customers also get the benefit of different technologies that create a remarkable level of flexibility for tracking the exact location of products at any point in the freight channel. ALOM has developed technological controllers that can track when a customer's hardware is about to fail and ship replacement hardware before the existing hardware actually fails. ALOM is looking forward to the day when built-in technology allows their systems to predict when market trends are changing, giving customers the information they need to stay ahead of the competition.
"We take a customer's problem and solve it," says Hannah, "Our customers come to us for their more complex problems and not necessarily what our competitors could easily solve. The ability to solve complex problems flawlessly is our big competitive advantage, but the technology, quality orientation, and sense of ownership of customer problems are just as important." Vehicle manufacturer Ford chose ALOM to provide the hardware that displays current navigation system map data in vehicle dashboards. Chuck Broadwater is the Technical Specialist, Navigation System Technology, Ford and says, "ALOM offers competitive supply chain solution alternatives that include the global operations expertise to make it a reality. When ALOM is involved I don’t need to worry or follow up. They consistently deliver." This was a very complex technology project that was executed flawlessly from the onset.
ALOM suppliers go through a qualification process, and once approved, are continually monitored. There is monitoring of on-time performance, quality, flexibility, competitiveness, and a number of other factors, including innovation and support of ALOM's customers and goals. ALOM's supply chain managers personally meet with suppliers if problems arise. ALOM managers do an annual supplier performance review, and have in-person meetings with the largest suppliers. For others, there are Skype meetings and/or written notifications.
Always Reaching Higher
For ALOM, it is all about quality. Hannah explains, "We have a very strong continuous improvement program, and it is one of the areas where we have consistent positive comments. We have reached a high quality level but are always trying to reach the next level." When something goes wrong in the supply chain, ALOM gets to the root cause and uses the right tools and appropriate training to solve the problem permanently. There are no quick, temporary fixes that could leave vulnerabilities in the supply chain.
KPIs are tracked at the country level and across all types of quality. There is a corporate input system which allows managers to do an interim quality review. Statistics are reviewed to see if ALOM and customer requirements are being met. Each customer has different requirements. For example, one customer requires product shipment within three hours while another requires three days. There is a review of on-time performance, any errors, and a host of activity measures. ALOM also reviews its own systems, considering things like availability of technology.
Asked to share some advice with diverse entrepreneurs on building a successful global business, Hannah said this: "Focus on where your key market is and build a thriving business before you start expanding. Before going global, take the time to thoroughly learn cultural differences, government regulations, and the real and opportunity costs of doing business in a particular company. Go global with both eyes open." It is solid advice that ALOM has flawlessly executed.
About DiversityPlus Magazine:
DiversityPlus is much more than “just” a supplier diversity magazine.Thanks to its strong media platform, which includes the print edition, digital magazine, website, weekly newsletter, social media, blogs, and video, DiversityPlus is able to provide print readers in seven countries and more than 117,000 digital readers worldwide with access to leading-edge supplier diversity content, webinars, and events.
What you’ll read in the pages of DiversityPlus represents the most current and impactful thinking about diverse supplier relationships. Plus, with over 17 years in print, our trend research, interviews, and feature articles showcase a depth of industry relationships unmatched by any other supplier diversity publication.