How to Cope!!! - ISM-Atlanta

National
Association of
Purchasing
Management
ISM–Atlanta, Inc.
the Peach
State Purchaser
FEBRUARY
2010
ISM-Atlanta Presents...
The February 11th Professional Development Meeting
Featuring Allan D. Kennedy M.Ed., LPC, BCPC
Thursday, February 11, 2010
The Country Club of Roswell
6:00 p.m.
STRESS: How to Cope!!!
Comes from all directions...
Family, Career, Marriage, Divorce, Debt, Joblessness, Too
Little Time…STRESS comes from everywhere.
At the February 11th Professional Development Meeting
Hear Allan Kennedy Identify the Origins of Stress and How
to Cope! Come early for a free Chat about Everything You
Need to Know about CPSM with Debra Hansford, starting
at 5:30!
Kennedy will make you understand your stress causes
and give your hope for managing. His very personable,
lighthearted approach to this common and serious topic
will lift your spirts.
Stress – It’s Not All In your Head
Stress had been called America’s number 1 health
problem, and it is estimated by the American Institute for
Stress that 75% to 90% percent of all doctor visits are stress
related. Allan Kennedy’s presentation will look at the origins of stress as well as the affects of stress on our bodies,
minds, jobs and families. In addition, why some of us are
more susceptible to stress than others, will be addressed.
Through the use of real life examples, humor and practical
interventions, Mr. Kennedy will guide the audience towards
a path in life that is much more relaxed and enjoyable.
About the Speaker:
Allan D. Kennedy M.Ed., LPC, BCPC
Kennedy is a native of Alexandria, Virginia and is currently employed with AT&T as Senior Project Manager
with primary responsibility for Employee Engagement.
Prior to this assignment he spent 25 years as Regional EAP
continued on next page
Before the Meeting
There will be a free CPSM question and answer session before the February Professional Development
meeting. The session starts at 5:30PM until 6:15PM.
David Pettitt and Debra Hansford will outline the costs
and recommended course of action to obtain your
CPSM designation, whether you are a C.P.M. looking at
the Bridge exam, or are starting from scratch. Bring your
questions and thoughts, there will be handouts. You are
not required to stay for the dinner meeting, but if you
want to hear our great speaker you must register at the
ISM Atlanta website. See you there!
INSIDE THIS ISSUE
Registering Your Account on ISM-Atlanta.org........2
Save These 2009 Dates..............................................3
March 2010 is Supply Management Month . ..........4
From the Blogs...........................................................5
Welcome New Members............................................6
ISM-Atlanta Terms of the Month..............................7
The Reality of Green..................................................8
November Georgia PMI Report................................9
Having Problems Logging or Registering on the
ISM-Atlanta Members Only Section?
If you are a new ISM-Atlanta member or
just need to register for an account on the
ISM-Atlanta web site, please download our
helpful guide. It will walk you through the 4
step process of registering your account and
logging in. It’s easy (and only takes a few
minutes) and it’s FREE for all of our members!
Take advantage of all the benefits your ISMAtlanta membership has to offer today!
CLICK HERE TO DOWNLOAD THE
REGISTRATION/LOGIN GUIDE NOW!
** PLEASE NOTE: IF YOU HAVE REGISTERED FOR AN ACCOUNT ON THE NATIONAL ISM
WEB SITE, YOU ARE NOT AUTOMATICALLY REGISTERED FOR AN ACCOUNT THE ISM-ATLANTA WEB SITE. THESE TWO SITES ARE INDEPENDENT OF EACH OTHER AND YOU MUST
REGISTER SEPARATELY.
Stress
Continued from page 1
Administrator. (BellSouth)
Following Hurricane Katrina, Kennedy oversaw the
building of the then �BellSouth Tent City” for Katrina
victims and their families. He then coordinated as well
as provided CISD services to the affected BellSouth employees and families for several months.
Prior to his graduate work, Mr. Kennedy was Director
of Personnel at Kaus & Whitestone Inc. of Springfield,
VA.
He received his graduate degree in Counseling
Psychology from James Madison University. After
completing his graduate work Mr. Kennedy worked in a
variety of clinical settings as a psychotherapist, consultant and program director. Prior to coming to BellSouth
he worked as Director of Consultation and Education at
the Northwest Counseling Center in Tennessee.
In his current role at AT&T, Kennedy is also coresponsible for Coordinating as well as Administering
Employee Care efforts after disasters.
Kennedy has served on the National Business Group
on Health’s National Advisory Committee on Maternal
and Adolescent Health as well as the National Committee on Employer Sponsored Behavioral Health Services.
Kennedy is currently serving as Vice President of the
Board of Directors of Mental Health America/Georgia
and is a Board Certified Professional Counselor.
In addition, Kennedy has been a consultant to industry, school systems and universities. He is a frequent
lecturer and trainer. He lectures on a variety of topics
such as Stress Management, Marriage and Family Issues, Bereavement, Emotional IQ, Generational Conflict
in the Workplace, Corporate Downsizing and its affect
on the family and Violence in the Workplace. Mr. Kennedy also has a private practice in Alpharetta, Ga.
While proud of his professional accomplishments,
Kennedy is proudest of his marriage to the former Marsha Hazlewood and his two sons, Jacob and Patrick.
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SAVE THESE 2010 DATES!
March 11th Professional Development Meeting
Speaker: Debra Hansford
Topic: Negotiations: Honing your skills.
We all know and love her as trainer and teacher of all things CPM and CPSM, but Debra also has 25+ years of
professional procurement experience and will share her knowledge and expertise in successful negotiations
tactics.
April 8 and May 13 are being finalized and will be announced through email blasts and the website very
soon.
June 10th Professional Development Meeting
Speaker: Paul Novak
ISM-Atlanta welcomes Paul Novak – President of ISM International – who will examine with us “The Future of
Supply Management”. More details to come…..
To learn more or sign up for these events, please visit ISM-Atlanta calendar page now!
ISM-Atlanta’s Professional Development meetings are always the 2nd Thursday of each month. July
and August are summer holiday for all except board members.
ANNOUNCING……
ISM-Atlanta’s latest website
enhancement!!!
The ISM Atlanta website at www.ism-atlanta.org now
has videos available for some of our recent Professional
Development meetings. Check out “Why Companies
Lease?”, “Should Cost Modeling”, and “Alliance on the
Rocks” and more to come. If you missed the meeting
or just want to relive the thrill of the excellent presentations you experienced, please check out this new feature
in the Members Only section of our site. This new enhancement to our website is cutting edge so take the
time to check them out today!!!
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March 2010 is Supply Management Month!
ISM’s Role to Lead Supply Management
Traditional purchasing activities have always contributed value, through negotiating lower prices and/or
selecting the best supplier(s) for each given situation.
But the role of the purchasing professional has expanded
over the years and has grown into an even more critical
and more strategic role of supply management.
The mission of the Institute for Supply Managementв„ў
(ISM) is to lead supply management. We have for a long
time been the leader in purchasing and supply management education, products, information and other
resources.
• ISM has established standards of knowledge and
achievement through the C.P.M. professional certification program.
• ISM has developed codes of ethics and professional
behavior through the Principles and Standards of
Ethical Supply Management Conduct and, most
recently, the Principles of Social Responsibility.
• ISM has issued the Manufacturing Report On Business® for more than 70 years and the Non-Manufacturing Report On Business® since June 1998.
And now, ISM is embarking on a new endeavor …we
want to share the value of supply management!
ISM’s Supply Management Image Campaign
The overall objective of the ISM public relations program is to increase the awareness of supply management
and help shape the image of the profession. Our public
relations efforts are focusing on aggressively seeking opportunities for sharing the value of supply management
and gaining additional coverage in print and broadcast
media.
Speaking on Behalf of the Field
As the leader for supply management, we are now
identifying related issues and developing official position
statements.
Once an issue is identified, staff conducts research on
the topic and draft potential statements for review by
members of the ISM Board of Directors.
Secret Revealed
The role of supply management will no longer be a
secret. Supply management has a critical role … and the
world should know it! As the leader in supply management, ISM is committed to getting the message out! For
more information on ISM, visit www.ism-atl.org or www.
ism.ws
About ISM-Atlanta
Vision for the Association
ISM-Atlanta is recognized as the leading organization
in our area for the support of purchasing and materials
management professionalism.
Mission Statement
ISM-Atlanta exists to educate, develop, and advance
the purchasing and supply management professional in
a contemporary environment.
Organizational Objectives• Financial: Manage revenue and expense levels to
insure that the association is able to fulfill its mission.
• Personnel: Dedicated ourselves to recruit, retain,
and motivate ACTIVE membership.
• Educational: Provide our members with high quality, timely educational opportunities and tools that
enhance their professional development.
• Marketing: Insure that the current/potential membership is aware of all the resources and educational
opportunities available to them through ISM-Atlanta
and NAPM.
• Professional: Promote professional excellence
through the support of NAPM programs, Certification, Ethical standards, and Membership in ISMAtlanta.
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From the Blogs...
“New Normal” does not equal “No Growth”
by Kris Colby
Regardless of who might have authorship rights (Pimco?
Ariba? Others?), the concept of “The New Normal” has definitely caught on in both the mainstream media and spend
management circles .
However, it’s important to remember that “the New
Normal” doesn’t translate directly to “permanent low GDP
growth” as has been put forth by some investment advisors.
Instead, the New Normal is characterized by several
trends that will, over time, become “SOP” for most large
organizations:
1. Increased need for agility to respond more quickly to
rapid change whether that’s in commodity markets, geopolitical supply risk, regulatory environments, or good oldfashioned competition.
2. Fewer permanent resources and increased reliance on
your community of business partners. Let’s face it, many of
the people laid off during the Recession aren’t coming back
or at least not in the same capacity. But there’s even more
to do. That means increased productivity and relying more
heavily on your business partners and suppliers to do things
that in the past might have been done internally
3. Reluctance to make large upfront investments with
long payback times. Good luck with talking your CFO into
any “$25M now and ROI in 48 months” business cases. ROI,
especially in technology investments, needs to be measurable in weeks and months, not quarters and years.
Surely, these are all challenges, but none mean “low
growth forever”. Companies that can learn how to respond
and scale quickly will have plenty of opportunities to deliver
value to both customers and shareholders.
So, don’t let the New Normal get you down. Growth will
return like it always does. Instead, look at this new environment as an opportunity for your organization to get in front
of the curve provided you’ve got the speed, agility, capabilities and community to grab it.
Kris Colby is a Director in Ariba’s Spend Management Services group. Kris specializes in strategic sourcing and risk reduction for multinational organizations.
Toyota Recall: Time to step on the gas of
Risk Management?
by Mark Oser
Toyota consistently ranks among the most respected
global corporations and is well-known for their manufacturing prowess and strong supplier ties. That’s exactly
why this week’s news about the accelerator problems for
4 million vehicles came as a shock to so many of us. The
impact of this episode will be long-term, far-reaching, and
very expensive.
Supply risk specialists speak often about the three
distinct kinds of supply risk (Brand, Commodity, and Disruption). While this episode at Toyota may not have hit
a trifecta, they are certainly dealing with an awful daily
double. The only thing that might be more expensive than
the disruptions in their supply chain could be the hit to
their brand.
If you think that only your biggest suppliers need to
be involved in a formal supply risk management program
(e.g. automated alerts and scorecards populated by both
objective and subjective data inputs from various sources
as one component) and the rest can be covered with just
some historical financial information/ratios, on-time delivery ratios, and maybe an annual business review, think
about the fact that CTS is almost certainly not even in the
top 500 of Toyota’s list of largest suppliers.
The important point for you is NOT what happened at
continued on next page
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ISM-ATLANTA PEACH STATE PURCHASER
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Toyota. Toyota will obviously and thankfully weather this
storm and, down the road, repair their image.
What matters is this: If an event like this…
• Can be linked to a small(ish) supplier
• And cause so much damage
• At the world’s most respected auto manufacturer
Then all of us have reason to be very afraid. Tomorrow
morning, we also need to ask some very tough questions
of ourselves and our supply chain and procurement leadership.
1. Are we really running a thorough enough risk management process (including Finding risk, Fixing them, and
Follow-through on Monitor/Management)? Most organizations only do parts of this 3-step process well or have the
proverbial “binder on the shelf” risk assessment that was
out of date three minutes after it arrived from the printer.
2. Are we executing this process with enough of your
supply base? Most organizations execute on just a small
slice of strategic suppliers. Most organizations employ some
basic supplier stratification measures based on size, but this
episode underscores the importance of deploying a more
holistic and systematic approach to tiering and managing
suppliers that includes risk.
3. Do their people have the right capabilities to manage
risk across your supply chain? Most organizations do not
have both the skills and bandwidth required to conduct risk
management at any broad level of activity.
4. Do they access to the right information (i.e. audit trail)?
If (when) something is to go wrong, you’ll have the information you need readily available about the expectations you
set with suppliers, how you monitored their compliance,
and how you graded them along the way.
Depending on the answers you hear to these questions,
you will probably want to take a closer look at that Supply
Risk Management that’s been on your “nice-to-have” list for
such a long time.
There’s no telling the final costs associated with a major
supply risk event. The only thing you do know for certain is
that an ounce of prevention weighs a lot less than a pound
of cure.
Mark Oser is a director in the Ariba Global Services organization. He specializes in helping large organizations
develop and execute complex sourcing, risk and procurement initiatives.
Justin Fogarty is Managing Editor of Supply
Excellence. For any questions or feedback on the blog or its
contributors, Justin can be reached at
[email protected]
Welcome new members!
NAME
COMPANY/ORGANIZATION NAME
PRIMARY JOB TITLE
Christopher Dixon
Alvarez and Marshal
Director
Haytham Abbas
Amtico Intl
Purch Mgr
Lisa Romano C.P.M.
E Trade
Head of Purch
Annjeanette Fisher C.P.M.
`Eclipsys Corp
Purchasing Coordinator
Dan Leveille
Enablence Optical Products
VP of Supply Chain Mgt
Harla Acheson
FISERV Financial Svc’s
Sourcing Analyst
William Johnson Flying Food Group
Purch Mgr
Gerry Cameron
Hi Tech Solutions
VP of Ops
Robert Kinnebrew
Home Depot
Sr. Director
Melody Simmons
LXE Inc
Buyer
David Hawks
Miller Zell Retail Design
VP-Strategic Procurement
Kevin Branch
Morehouse College
Student
Jim Clous
Nordson Corp
Purchasing Agent
Anthony Rufo
Nordson Corp
Purchasing Manager
Beverly Laney
Oldcastle Materials
Deron Banke
Oldcastle Materials Inc
VP of Strategic Sourcing
James Perkins C.P.M.
RailAmerica
Purch Mgr
Maritza Padua
Rubbernetwork
Sourcing Mgr
James Smith
Shaw Industries Group Inc
Manager, Capital Global Sourcing
Shelly Sims
The CLOROX Company
Buyer II - Plastics
Isatta Deen
The CLOROX Company
Sr Sourcing Analyst
Vineeth Jacob
The CLOROX Company
Student
Angela Smith
The Home Depot
Strategic Sourcing Mgr
Heidi Pachura
Director, Procurement
James Link
Procurement Analyst
Mary Bennett
Laurie Brunsky
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ISM-Atlanta Terms of the Month
ISM-Atlanta’s Terms of the Month are:
Situations that might contribute to STRESS……
SUPPLIER COLLABORATION
The process by which an organization works with its supplier to accomplish common goals or objectives; also
known as supplier relationship management (SRM).
FRAUD
Deceit, trickery, breach of confidence or other illegal act used to gain unfair or dishonest advantage. May be
the basis for a tort (personal injury) lawsuit.
INVENTORY SHRINKAGE
Loss of inventory due to deterioration, pilferage, outdating, scrap and so on.
COMPENSATORY DAMAGES
Financial remedy awarded to a plaintiff to compensate it for actual loss, injury or damage.
A different Term of the Day is posted on the ISM Home Page (www.ism.ws) each day — seven days a week. The
Term of the Day is taken from the ISM Glossary of Key Supply Management Terms.
To access the online Glossary, go to http://www.ism.ws/Glossary/index.cfm? You must log in as a member to
access.
Enter for YOUR chance to win the Second ISM
Free Trip
If you attended the September, October, November, December and/or January
Professional Development meetings, your name could be announced as the winner of the second trip to ISM
International Conference in San Diego, CA on April 25-28, 2010.
But if you don’t win in December, enter for the second trip at the February event and your name could
be drawn in March 2010. Here’s the info below:
• Two members will win free trips to the 95th Annual ISM International Supply Management Conference and
Educational Exhibit, April 25-28, 2010, in beautiful San Diego, California.
• This opportunity will be limited to current members of ISM-Atlanta.
• For each event you attended, your name was entered into the contest once. These events included monthly
professional development meetings, satellite seminars, and C.P.M. or C.P.S.M. review classes.
• Winners are not allowed to transfer nor sell their trip to another member of ISM Atlanta or a colleague. Registration fees, lodging, meals outside of conference provided meals, and travel to and from the event,
submitted on an ISM-Atlanta expense report, will be covered by ISM Atlanta for each winner.
GOOD LUCK!!!
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The Reality of Green
The Impact of Green
on
Federal
Sales
3rd in a Series
By John Wilkerson, CPSM
Does your Company Sell Products or Services to the Federal Government?
Are you aware that the 2009 Federal Government environmental policy will impact 95% of all federal contracts in the
future? Are you tuned into the strategic sourcing implications of this new Federal policy? Is Greenhouse Gas (GHG) Management part of your long term sourcing strategy? Are their benefits for initiating carbon footprint reduction initiatives?
Background
Corporate sourcing leaders are constantly challenged by numerous priorities such as; supplier performance, weekly
cost savings reporting, and as always internal customer issues such as lack of clear specifications and sometimes unrealistic budgets. The newest challenge for companies that sell to the U.S. Federal Government centers around Presidential
Federal Executive Order 13514, Federal Leadership in Environmental, Energy, and Economic Performance. This order
signed on October 5, 2009 mandates numerous changes to Federal environmental policy which impacts the CPO. Here
are several high level categories from Executive Order 13514:
• Sustainable Buildings and Communities
• Water Efficiency
• Pollution Prevention and Waste Reduction
• Strategic Sustainability Performance Planning
• Greenhouse Gas (GHG) Management
The balance of this article will focus on GHG Management (sometimes called Carbon Management) and it’s near term
impact on global sourcing and global supply chain only. Not month’s article will focus on Sustainability Performance
Planning.
Strategic Sourcing Implications
As the sourcing manager takes a deeper dive into this important environmental subject he (s) will discover that several typical job duties; negotiation strategy, supplier development, and contract management may be impacted in the
2010/2011. Before we go any further let’s understand the current federal environmental policy and potential near term
implications. Here are a few potential strategic sourcing scenarios:
Federal Greenhouse Gas Management Requirement
Strategic Sourcing Next Steps
Federal Contractors (Scope 3) must establish GHG emissions goals (fiscal year 2008 baseline)
Should determine if Scope 3 applies to your industry and
company
Reduce Agency use of fossil fuels by 2020
Should understand the industry and company’s scope
By 2011, establish and report a comprehensive inventory
of absolute GHG emissions across all three scopes for fiscal
year 2010.
Should determine if this standard applies to your business
and suppliers
continued on page 11
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Georgia Purchasing Manager’s Index Report
Furnished by Don Sabbarese, Ph.D., Kennesaw State University Econometric Center
Reasons for January PMI’s Increase:
New Orders:
New Orders increased 10.3 points to 57.9. New Orders
increase was based on 10.4% more respondents reporting
higher New Orders for a total of 42.1% and 10.3% less respondents reporting lower New Orders for a total of 26.3%.
Production:
Production increased 0.8 of a point to 44.7. Production’s increase resulted from 0.5% less respondents reporting higher
Production for a total of 26.3% and 2.2% less respondents
reporting lower Production for a total of 36.8%.
Employment:
Employment decreased 1.7 points to 43.4 based on 4.5%
less respondents reporting higher employment for a total of
5.3% and 1.1% less respondents reporting lower Employment
for a total of 18.4%.
Supplier Delivery Time:
Supplier Delivery Time increased 2.8 points to 55.3 based
on 1% more respondents reporting slower delivery time for
a total of 13.2% and 4.7% less respondents reporting faster
delivery for a total of 2.6%.
Finished Inventory:
Finished Inventory decreased 11.3 points to 28.9 based on
14.2% less respondents reporting higher FI for a total of 5.3%
and 8.3% more respondents reporting lower Finished Inventory for a total of 47.4%.
Commodity Price:
Commodity Price decreased 0.1 of a point to 65.5 based on
2.5% more respondents reporting higher Commodity Price
for a total of 34.2% and 2.6% more respondents reporting
lower Commodity Price for a total of 2.6%.
Future Expected Production:
Forty two percent of respondents reported higher expected Production in the next 3-6 months, which is down from
forty seven percent for December. Seven point nine percent
expect it to be lower than their current production. This may
help explain why Georgia Production did not respond to the
increase in January New Orders, but instead drew down their
inventories.
Overview:
New Orders rebounded with a 10.3 point increase following two straight months of sub-fifty readings. This was the
result of the combined effect of more respondents reporting
higher New Orders and less respondents reporting lower New
Orders. January New Orders is 8.7 points above its six week
average. New Orders experienced the strongest improvement in January. Production did not match the New Orders
increase as respondents apparently used Finished Inventory
to meet the pickup in New Orders. January Finished Inventory
is 9 points below its 6 month average. Employment remains
very weak with only 5.3% of respondents reporting increased
hiring. January Employment is 1.6 points below its 6 month
average. Supplier Delivery Time increased with 13.2% reporting slower delivery. Commodity Prices remain relatively high
at 65.8, which is 3.2 points above its six month average.
Georgia and the Southeast PMIs are both more than 10
points below the National PMI.
National PMI Report:
The National January PMI increased 3.5 points to 58.4,
which was the result of the following increases: 1.1 points
to 65.9 for New Orders, 6.5 points to 66.2 for Production, 3.3
points to 53.3 for Employment, and 3.5 points to 46.5 for Finished Inventory.
Commodity Price increased 8.5 points to 70 points. Thirteen of the 18 manufacturing industries reported growth in
January. Furniture and Related Products is the only industry
reporting contraction.
Industrial Production Report:
The December Industrial Production Report reported an
increase of 0.6% matching November’s revised 0.6%. The cold
weather caused a jump in Utilities production of 5.9%, which
was a major contribution to this strong improvement.
Motor vehicle assembly fell again. Computer and electrical
output is up 1.6%. Business equipment is up 0.9% for December. High tech is up 2.4%. Strength in capital spending is an
encouraging way to start the 2010 year. It will play a critical
role for sustaining the current economic improvement.
Georgia versus the Southeast Survey:
January Southeast (SE) and Georgia (GA) PMIs are moving lockstep with minimal increases of 0.6 and 0.2 of a point
increases respectively. The greatest difference between the
two PMIs is Georgia’s higher New Orders and lower Finished
Inventory.
continued on next page
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The Three Survey Comparison:
The January Georgia and SE PMIs are 12.3 and 12.6 points
below the National PMI of 58.4 points. The National PMI’s
New Orders, Production and Employment are 11.6, 19.3 and
11.9 points higher than the respective SE underlying variables. Georgia’s same underlying variables are 8.0, 21.5 and
9.9 points below the National variables.
Comment:
The Georgia and Southeast January PMIs and their underlying variables have fallen further behind the National PMI.
The Georgia and the Southeast PMIs have underperformed
the National PMI since August of 2009. Based on this history
and current differences it is apparent that the Southeast and
Georgia manufacturing sectors are not experiencing the
strong rebound for the National Manufacturing Sector.
Change In Percent of Georgia Participants Reporting Higher, Same and Lower
JANUARY - DECEMBER
New Orders
Production
Employment
Deliveries
Finished Inventory
Commodity Prices
Higher
10.4
-0.5
-4.5
1.0
-14.2
2.5
Same
-0.1
2.7
5.6
3.7
5.9
-5.1
Lower
-10.3
-2.2
-1.1
-4.7
8.3
2.6
PMI Georgia, PMI Southeast, and PMI National
PMI GA
PMI Southeast PMI National Aug-09
Sep-09
Oct-09
Nov-09
Dec-09
Jan-10
Jan-Dec
45.4
44.6
48.9
43.5
45.9
46.1
+0.2
46.2
46.7
49.2
47.5
45.2
45.8
+0.6
52.9
52.6
55.7
53.6
55.9
58.4
+2.5
COMMENTS FROM SURVEY PARTICIPANTS REGARDING CONDITIONS THAT
AFFECT PURCHASING OPERATION:
PRODUCTS WITH HIGHER PRICES
“Copper wire, transformer oil, stainless steel, bearings,
steel wire, copper, gasoline, copper, steel, oil based products, spruce boards, pine mouldings, treated pine lumber,
castor oil, both aluminum and copper(though both have
started to reverse their upward trend), sugar, resin, paper,
phenol, freight, acetone, isohhexanes, polypropylene,
corrugated, pallet lumber, aluminum, anthraquinone, ammonia, hydrochloric acid, diesel, lead for batteries, stearic
acid, paper, palm oil lumber, OSB, polypropylene went up
slightly, carbon steel, and aluminum ”
calcium carbonate”
PRODUCTS WITH LOWER PRICES
“Aluminum, wheat, corn, starch, aluminum, sulfate, and
GENERAL REMARKS - Give your frank opinion on any
conditions, local, national or international, that affect your
ITEMS IN SHORT SUPPLY
“OSB, due to log shortages to heavy rain, aluminum
flat rolled, bearings, diesel engines, cocoa products, and
chemicals from China”
BUYING POLICY CHANGE
“Switching to lesser known brands and smaller (or local)
providers to save money”
“Business closing”
continued on next page
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Georgia Purchasing Manager’s Index Report
Continued from previous page
purchasing operation or your company’s outlook
“Housing is still slow”
“Day to day is no different but some encouraging signs
for the next 6 months”
“Expect flat to down order base until mid-2011 at the
earliest”
“Stainless pricing will increase in January. Steel mill lead
times seemed to have shortened. Customers continue to
operate without inventory”
“Slight increase in NA sales, but still slow in EMEA”
“Company’s outlook is good and would appear to be so
for the 1st half of 2010”
“Expect steel prices to increase in February”
“Worst appears to be over but speed of recovery not
clear”
“Our business has a direct correlation to residential
homebuilding. When homebuilding resumes , our sales
will increase”
“Slow recovery taking shape”
“We expect to remain flat with little growth”
“Our customers are beginning to build inventory”
“Vote Republican and kick the “Do Nothing” Democrats
out of office”
“Inventories of finished goods that are raw materials
seem lower than normal”
The Reality of Green
Continued from page 8
I admit the above scenarios are very broad and are not
industry specific. Let’s work this example for illustration
purposes:
• Assume you are a category manager working for a
consumer products manufacturer selling apparel to the
Defense Logistics Agency, Philadelphia, PA. If GHG, Scope
3 emissions reporting applies to your organization, you
could be tasked to track and report carbon (GHG) emissions for suppliers such as; raw materials, related transportation and storage, as well as dyes or ink. GHG must be
measured and reported to the Defense Logistics Agency’s
Chief Sustainability Officer during fiscal year 2011.
Given this CPG example how does this impact strategic
sourcing in 2010? Depending on your individual company and industry perspectives here are several potential
near term impacts:
• 2010 raw material sourcing strategy
• 2010 contract negotiating strategy
• 2010 / 2011 IT capital plan (or internal solution)
• 2010 & beyond contract T & Cs (GHG reporting
language)
• 2011 supplier raw material, staffing & IT repercussions
One, the supplier development team has an opportunity
to clearly align supplier performance with the corporate
sales, marketing, and manufacturing processes. Two,
a deep dive into raw material sourcing and its carbon
output could lead to new innovation and cost reduction
strategies. Lastly, by reviewing boilerplate T&C’s this could
lead to more open dialogue by the legal and contract
management teams.
Next Steps
We all know that Sales and Marketing are constantly
seeking new opportunities to set the organization apart
from their peers. Given that 95% or more than 625,000
(valued at more than $474 billion annually in 2009) of
future federal contracts must include an environmental
component, federal suppliers are on the hook for action.
This is a CPO opportunity! As a first step the Strategic
Sourcing and Sustainability teams must join forces and
clearly define if and how Greenhouse Gas Management
applies to the business and industry. GHG measurement
and supplier development are likely new 2010/2011 initiatives for companies seeking add value and stand out in
the crowd.
Potential Benefits
It’s not all bad news! The newest CPO priority may
have a silver lining for the strategic sourcing organization.
2009 Federal spend source: www.usaspending.gov
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ISM-Atlanta Directory
President
Raymond Padgett, C.P.M., A.P.P.
StagParkway, Inc.
7095 Tradewater Pkwy
Atlanta, GA 30336
Phone: 404-349-1918 x225
E-mail: [email protected]
com
1st Vice President
Lauchlin McKinnon, C.P.M.
Landis+Gyr
30000 Mill Creek Avenue, Suite 100
Alpharetta, GA 30022
Phone: 678-258-1661
E-mail: [email protected]
2nd Vice President
Richard Angel, C.P.M.
2641 Fountainbleau Drive
Atlanta, GA 30360
Phone: 770-757-4222
E-mail: [email protected]
Treasurer
Frank Kosakowski, C.P.S.M.; C.P.M.
Emerson Climate Technologies Solutions
1308 Cobblestone Lane
Woodstock, GA. 30189
Phone: 678-784-2737
E-mail: [email protected]
emerson.com.
Secretary
Debra Howington, C.P.M., A.P.P.
SKF USA Inc.
5385 McEver Road
Flowery Branch, GA 30542
Phone: 770-967-5309 H: 770-2878754
Fax: 770-967-4258
E-mail: [email protected]
Professional Development Chair
– Certification
David Pettitt, C.P.S.M.; C.P.M.
3262 Devaughn Drive
Marietta, GA 30066
Phone: 770-977-4466
Fax: 770-977-3345
E-mail: [email protected]
Membership Chair
William Howell, C.S.C.P.
CAT Switichgear Supply Chain Mgt.
Alpharetta, GA
phone: 404-319-4423
E-mail: [email protected]
Director / Career Development
(ISM Employment Development
Services)
Thomas G. Alexander, C.P.M., CPIM
The Clorox Company
3655 Brookside Parkway, Suite 300
Alpharetta, GA 30022
Phone: 678-893-8916
E-mail: [email protected]
Institute for Supply Management-Atlanta
ISM-Atlanta
c/o Frank Kosakowski
1308 Cobblestone Lane
Woodstock GA 30189
Professional Development Chair
– Monthly Development Meeting
TBD
Director/Librarian
Natalie Blankenship, C.P.M.
Category Manager-Purchasing
Rock-Tenn Company
Norcross, GA
Cell: 678-431-2202
E-mail: [email protected]
Director/ Public Relations
Pamela Johnson, C.P.M., M.B.A.;
SSBB
AT&T Services, Inc.
Consumer Supply Chain
1277 Lenox Park Blvd.
Atlanta, GA 30319
Phone: 404-499-3941
Fax: 404-420-8823
E-mail: [email protected]
Director/Newsletter-Webmaster
Penelope M. Murphy, C.P.M., A.P.P.
Purchasing Manager
City of Smyrna
2800 King Street
Smyrna, GA 30080
Phone: 678-631-5337
Fax: 770-431-2814
E-mail: [email protected]
Director/College Reachout
Don Sabbarese, Ph.D.
Director of Econometric Center
Kennesaw State University
1000 Chastain Road
Burruss Bldg., Rm 323
Kennesaw GA 30144-5591
Phone: 770-423-6094
E-Mail: [email protected]
Scholarships
E-mail: [email protected]
Immediate Past President
J. David Lister, C.P.S.M.; C.P.M.
1325 Badingham Drive
Cumming, GA 30041
Phone: 678-746-5050
Fax: 770-664-6302
Email: [email protected]
Dinner Meeting Reservation
Information
Web site: ism-atl.org
E-mail: [email protected]
OR
[email protected]
com
ISM-Atlanta Peach State Purchaser
February 2010 Edition
Editor / Webmaster
Penelope M. Murphy
ISM—Atlanta, Inc.
The PEACH STATE PURCHASER is the official publication of the
Institute for Supply Management - Atlanta, Inc.
ISM-Atlanta is an affiliate of the Institute for Supply Management
(ISM) The PEACH STATE PURCHASER is published monthly and
carries articles and notices regarding ISM-Atlanta activities.
All editorial notices for publication in the PEACH STATE
PURCHASER must be submitted to the editor by the third Monday
of the month preceding publication.
ISM-Atlanta cannot be held responsible for the content or
opinions expressed in editorial material published herein.
Contributors
Penny Murphy, William Howell, Don
Sabbarese, David Pettit, John Wilkerson.
Designer
Seth Brown Design
www.sethbrowndesigns.com
Articles and Photos from ISM-Atlanta
members are welcome and will be considered for publication as appropriate and
as space permits. Submissions should
be in form of a word document or pdf file
and should be sent to Penny Murphy at
[email protected]
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