President s Message. US Economic Outlook for 2012 Its been a disappointing economic recovery since the end of the financial
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1 February 2012 Buylines President s Message President Rebecca Klutho, C.P.M., A.P.P. President@ismstlouis.org President Elect Larry Jackson, CPSM, C.P.M. PresidentElect@ismstlouis.org Secretary Pat Greathouse Secretary@ismstlouis.org Director of Finance Max Merz, C.P.M., CPSM, CPP Finance@ismstlouis.org Director of Education Dawn Huang CPSM Education@ismstlouis.org Director of Membership Tom Blair CPSM, C.P.M, CSCP, ITIL v3, CSSGB Membership@ismstlouis.org Director of Professional Development Dwayne Yount, C.P.M. Pro-D@ismstlouis.org Director of Technology William (Bill) Lloyd Technology@ismstlouis.org Director of Marketing Rhonda Shurtleff Marketing@ismstlouis.org March General Meeting March 13, 2012 Sheraton Westport Chalet 6:15 p.m. Dinner US Economic Outlook for 2012 Its been a disappointing economic recovery since the end of the financial crisis in mid- 2009, with US gross domestic product (GDP) growing by only about 2 percent in real terms. The main result of this disappointing growth has been the persistently high number of unemployed in the US. The current rate of GDP growth is insufficient to dent the huge pool of long-term unemployed. So how are things? Depending on who you ask, there is always a slightly different sentiment. But if you want real transparency, Dr Erie Goss, of Creighton University; Omaha, NE, publishes a Survey on Economic Conditions in the Mid-America and Mountain States. Dr. Ernest Goss of Creighton University surveys supply managers monthly using the same methodology used for The Institute for Supply Management (ISM)., formally the National Association of Purchasing Management. The National Association of Purchasing Management began in 1931 to formally survey its membership to gauge business conditions. Included in the Mid- American survey are: *Arkansas *Nebraska Congratulations! Kenneth Marti received his CPM Recertification in January! Marilyn Stowers completed the CPSM Certification in October! Ortega Harwein completed the CPSM Certification in February! Theresa Huff received her APP and CPM Recertification in February! *Minnesota *North Dakota *South Dakota *Kansas Mountain states: *Iowa *Oklahoma *Colorado *Utah *Wyoming Come and join ISM St Louis on February 28, 2012, as Ernie Goss reveals what the economic condition the state of Missouri is in and what the forecast is for the coming year. Look forward to see you there! Rebecca D. Klutho, C.P.M President, ISM St Louis
2 APICS/ISM Joint Meeting Tuesday, March 13, :30 PM to 8:30 PM Sheraton Westport Chalet Westport Plaza Building Your Tool Box Change Management Strategies that Work! Doug Pearson, a business strategist and Coach, will engage participants in a lively interactive dialogue on communication style and change management; what the impact of various communication styles has on change; and how to effectively employ communication tools in change management. Doug lives in St. Louis, is married with two children and has a nationwide Coaching practice. He has a Master s Degree in Executive Management and years of training and experience as a professional Coach. Buylines We live in a world where change is constant. Communication style and the skills associated with getting your message across to others is the cornerstone for managing change, whether in your business or in your personal life. For example, in the roller coaster game of business, we sometimes find ourselves in uneasy situations, like: Communicating, but not getting through to the other person... Rolling your eyes when the boss comes in with a great idea, but they have no knowledge of the details or appreciation for what it takes to execute on the idea... The other person doesn t understand where you are coming from... Given the nature of business, how does communication style come into play in these situations... Or does it... What are the various types of communication styles? Which style is yours? What are the styles of the people around you? What are the implications? And once defined, how do you employ tools that allow your communications to impact change? Doug Pearson, a business strategist and Coach, will engage participants in a lively interactive dialogue on communication style and change management; what the impact of various communication styles has on change; and how to effectively employ communication tools in change management. Doug lives in St. Louis, is married with two children and has a nationwide Coaching practice. He has a Master s Degree in Executive Management and years of training and experience as a professional Coach. Please join us as we dig into communication style and change management. The dialogue promises to leave participants with the skills and self awareness needed for successful communication. SPECIAL NOTE OF LOCATION.. SHERATON WESTPORT CHALET WESTPORT PLAZA Page 2
3 CPSM UPDATE 3 Questions: 3 Answers Reprinted from the ISM eside Question #1: A supply manager is negotiating a contract with a supplier to purchase one million components. To determine a pricing arrangement satisfactory to both parties, which of the following is LEAST appropriate? (A) Evaluating the supplier's current cost data (B) Establishing a cost goal (C) Reviewing the supplier's anticipated costs (D) Performing a make-buy analysis Question #2: All of the following are components of a nation's balance of payments EXCEPT (A) balance of trade (B) capital account fluctuations (C) currency exchange rate (D) official reserve account changes Question #3: A company's legal department is establishing budgets for the upcoming calendar year. The organization's general counsel identifies several cases of litigation involving intellectual property rights that could impact several product development projects. It is imperative that the budget include appropriate funding to retain external legal counsel. The general counsel asks the supply manager to assist in preparing the budget for the legal costs for these cases. Which of the following is the BEST course of action for the supply manager to take? (A) Solicit proposals form qualified external law firms (B) Estimate costs based on recent contracts for similar matters (C) Provide general counsel with hourly rates from qualified attorneys (D) Perform a should-cost analysis for each major IP matter Question #1: Option D is correct because a make-buy analysis, while useful in broader source planning, does not determine whether a supplier's pricing is reasonable in terms of the market. Instead, it assists in decisions about making a product (or providing a service) in-house rather than purchasing from outside sources. The other three options evaluating supplier's current cost data (A) and anticipated costs (C), and establishing a cost goal (B) are typical parts of the cost/ price analysis. References: CPSM and CSM Study Guide, 1st Edition (Book 1 Foundation of Supply Management), pages 21-22; ISM Professional Series (Book 1 Foundation of Supply Management), page 172; The Supply Management Handbook (7th Edition), page 500. Buylines Question #2: Option C is correct because the balance of payments is a measure of the difference in the flows of funds across a nation's boundaries. Currency exchange rate is the price of one nation's currency as it is exchanged for another, not a measure of the volume of funds flowing across borders. Balance of trade (Option A) is the difference between the values of a country's exports and imports. Capital accounts (Option B) are investment flows across national boundaries. The official reserve account (Option D) is made up of a country's foreign currency holdings, gold, and special drawing rights with the International Monetary Fund. References: CPSM and CSM Study Guide, 1st Edition (Book 2 Effective Supply Management), pages 18-19; ISM Professional Series (Book 2 Effective Supply Management Performance), page 116. Question #3: Option A is correct because soliciting proposals from qualified firms will provide current information on rates and other costs. Since inclusion of appropriate funding in budgets has been deemed imperative, using figures from past contracts (Option B) raises concern that these may not take into account rising rates within the legal community or changes in complexity of the issues involved. Obtaining hourly rates from qualified attorneys (Option C) is more limited than soliciting proposals (Option A). Since no method of obtaining those rates is specified, there may be wide variations in rates if all attorneys do not receive the same Scope of Work information. Supply management may not have the information necessary for a should-cost analysis of such specialized professional services (Option D). References: CPSM and CSM Study Guide, 1st Edition (Book 3 Leadership in Supply Management), pages Page 3
4 Career Bank Company Position Location Compensation Industry Contact name Phone number Weekends Only Total Metal Recycling Business Operations Analyst International Freight Coordinator St. Louis, MO Jared VonOehsen Granite City, IL C/O Wendy Reitz Keystone Staffing Resources Purchasing Manager St. Louis, MO Wendy Reitz c/o Wetherby Partners Procurement Manager Fabricated Metal Components Atlanta, Relocation is available Lisa Barnaby, Managing Partner c/o Wetherby Partners Procurement Manager Capital Equipment Atlanta, Relocation is available Lisa Barnaby, Managing Partner c/o Wetherby Partners Corporate Procurement Manager Electronic Components/ Controls Indianapolis, IN; Relocation is available Lisa Barnaby, Managing Partner Buylines Page 4
5 February Seminars Seminars Dates Location Leaving Reverse Auctions in the Dust: Discovering a Next Generation of Sourcing Technologies Tuesday, February 28, :00 to 2:00 Central Free Streaming Web Seminar Register at ISM Podcasts Welcome to ISM's new Podcast Channel. Feel free to browse our ever-expanding library of audio podcasts covering a broad spectrum of supply management and general business topics from the basic to advanced. Download and listen while you work, during your commute or even in your down time. Supplier Relationships Research in Supply Chain Management: Academic Insight for Managerial Relevance Steven Carnovale Supply Chain Collaboration Arnaud Deshais Sustainability/Social Responsibility Sustainable Procurement Robert W. Kuhn Sustainable Procurement Metrics Robert W. Kuhn Sustainability 2.0 What Comes Next Robert W. Kuhn Sustainability Buzz Robert W. Kuhn Risk Management Personal Career Development Identifying and Mitigating Supply Chain Risk Ernest G. Gabbard Proactive Supply Chain Risk Management Cathy Herr FREE Risk Management: Strengthening Your Supply Chain Richard D. Rich Making it in General Management Timothy M. Stratman Lifelong Education: A Critical Endeavor Robert A. Kemp Leadership Tools for Your Career Judy Baranowski Risk Management Tracks Risk Management Group Buylines Page 5
6 ISM-St. Louis Spring 2012 CPSM Review Program Interested in obtaining your CPSM Certified Professional in Supply Management or CSM - Certified In Supply Management? ISM-St. Louis is offering review sessions CPSM Module 1. What do the CPSM Exams look like? Exam 1 Foundation of Supply Management 165 questions (150 scored) 2 hours and 45 minutes allowed Exam 2 Effective Supply Management Performance 165 questions (150 scored) 2 hours and 45 minutes allowed Exam 3 Leadership in Supply Management 180 questions (165 scored) 3 hours allowed * All exam scores are valid for three (3) years Module 1: February 23rd &24th - 8:00 A.M. 4:00 P.M. each day Cost: $300 members/ $375 non members Or All three module review sessions plus bonus study guides Cost: $750 members/ $1000 non members Course Content: As soon as you register, you will be given access to an on-line tool with on-demand detailed instruction, including audio and downloadable study materials. Also included will be numerous simulated exam questions with answer logic and a comprehensive exam that you can take prior to the actual test and the instructor will provide you with feedback. The live classes will then cover the key CPSM alerts and the methodologies to approach the actual exam(s). Registration Information: There will also be registration information sent via Note: Module 2 will be offered March 29th & 30th and Module 3 will be offered May 3rd and 4th. Page 6
7 Welcome New ISM-St Louis Members ISM-St Louis welcomes our recent new members. Thank You for your participation P.O. Box St. Louis, MO Phone: Fax: Kevin L. Statzer, C.P.M Purchasing Manager Monsanto Co. Michelle Peterson Procurement Specialist Ameren David N. Grant Barsha Tuladhar Procurement Manager Novus International Mel Duhon Director of Purchasing Elantas PDG, Inc.
8 ISM ST. LOUIS Professional Development/Education CALENDAR Advanced Pre-Dinner Date Location Speaker Topic Topic February 2/28/2012 Spazio's Speaker - Ernie Gauss John Maxwell The 17 Indisputable Laws of Teamwork March 3/13/2012 Sheraton Westport Chalet (Joint Meeting w/ Apics & MBC) Doug Pearson: Executive Career Coach Supply Management Month Topic: Building Your Tool Box John Maxwell The 17 Indisputable Laws of Teamwork April 4/24/2012 Spazio's Speaker - David Firth / Hiperos Supply Manager of the Year Award Topic: Supplier Risk Management or another topic to be determined John Maxwell The 17 Indisputable Laws of Teamwork May 5/22/2012 Spazio's Speaker - TBD Topic: Election of Officers Past Presidents Installation of Officers John Maxwell The 17 Indisputable Laws of Teamwork
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