MONTHLY NEWSLETTER Institute for Supply Management Kansas City, Inc.

Transcription

1 MONTHLY NEWSLETTER Institute for Supply Management Kansas City, Inc. January 2011 Inside This Issue 1 Message from the President 2 CPSM Certification Study & Review Sessions 2 Calendar 2 ISM Scholarship Program 3 Volunteers Needed 4 January Dinner Meeting Dinner Meeting Schedule 6-8 Seminars 9 Satellite Seminars 10 Job Posting Mid-America Leading Economic Indicators 16 Board Members Message from the President Happy New Year 2011! It's that time again to review and close out 2010 and start fresh goals in making our Supply Chains more efficient, LEAN, and more advantageous for us to live in through the rest of this year. My wishes are that you are able to build new relationships that are beneficial, mend relationships that need mending, and solidify good relationships in order to continue to produce, provide, and deliver what needs to be delivered. I would also like to encourage you to step up and share your expertise, time, and efforts in helping to sustain and grow ISM-KC in I know we have some great programs coming up - particularly one of the Educational Seminars coming later this month and being held at Sprint's campus (thank you, Sprint, for helping to support this program!). Please contact me if you have any questions, would like to share a location, or would be interested in providing a program with our members. To a new beginning! Sandy Buescher, MBA, CPSM ISM-Kansas City President

2 PAGE 2 CPSM Certification CPSM Bridge Exam Study & Review Sessions: The CPSM Bridge Review Session is scheduled for: March 5, 2011 and March 12, 2011 Location will be determined later and there will be a Cvent announcement sent out shortly with registration information. CPSM Full Three Module Exam Study & Review Sessions scheduled for: Module 1 March 26 & April 2 Module 2 April 30 & May 7 Module 3 June 4 & June 11 Location will be determined later and there will be a Cvent announcement sent out shortly with registration information. JANUARY 2011 S M T W T F S FEBRUARY 2011 S M T W T F S ISM Scholarship ISM-KC is proud to announce our organization s sponsorship of the ISM-KC Scholarship Award Program. Scholarship application and materials will be made available on the ISM-KC website, and applications are due by Feb. 28th. Don t miss out! Here is who is eligible to apply: Active members in good standing with the local ISM-KC, immediate family member, student members, and life time members. ISM-KC family members who are high school seniors or high school graduates who plan to enroll or students who are already enrolled in a full-time program of study at an accredited two or four-year college or university with a minimum GPA of 3.0 on a 4.0 scale or equivalent B average. ISM-KC members in good standing who are pursuing advanced certification, i.e., CPM and/or CPSM. More information is available at this link: MARCH 2011 S M T W T F S

3 PAGE 3 Volunteers Needed We are very fortunate that we have a strong Board of Directors and Committee Members. However it has been increasingly more difficult to attract new volunteers. The ISM-KC affiliate has a lot of great ideas that we are having problems implementing because we need more help. If you have the time, no matter how little time, please help out. The Committee Directors will make it as painless as possible for you. We currently need volunteers for the following areas: Education Committee needs volunteers to set up and administer the local Satelite Seminars. Responsibilities include: Locating and contracting for the facilities to hold the events Manage the budget for the event Attend the events for free Order coffee, snacks and lunch for the events Contact Lori Eckman, Lori.C.Eckman@CenturyLink.com, Tel: , Wireless: Communications Committee needs volunteers to manage the ISM-KC Web Site. Responsibilities Include: Maintain information on the site Interface with the site coordinator on any changes or issues that may occurr Post information requested by Board Members Contact Jim Marinakis, jim.marinakis@centurylink.com, Tel: , Wireless:

4 PAGE 4 ISM~KC Educational Dinner Event: January 20, 2011 Thursday Resolving Supplier Disputes: Lessons Learned From a Fortune 100 Negotiator Abstract. Regardless of even the best customer/supplier relationship, disputes are bound to arise in every contract. How you handle them may mean the difference between an effective ongoing relationship and nasty, costly litigation. In this one-hour seminar, discover the top dispute drivers and common mistakes that have legal and financial ramifications. Learn the difference between various dispute resolution alternatives, how to avoid disputes and what to do if you get stuck. Our presenter, Mary D. Lewis, MA, MBA shares insights and gotchas learned from successfully resolving disputes to reduce cost exposure in the millions of dollars. Even seasoned negotiators will take away solid tips and techniques that can immediately be put to use. Event Date: Thursday, January 20, 2011 RSVP Date: No later than noon on Monday January 17, 2011 No refunds after January 17, no refunds for no-shows CEH: Earn one CEH (Continuing Education Hour) credit for attending, which supports maintaining an active and valid certification. Location: Smokehouse Bar-B-Que 7121 West 135 th Street Overland Park KS :15-6:00PM Registration and Networking 6:00-6:45PM Dinner 6:45-7:45PM Presentation Cost: ISM~KC Members pre-pay via this invitation prior to Jan 17 $25.00 ISM~KC Members pay at registration table $30.00 Non ISM~KC Members pre-pay via this invitation prior to Jan 17 $30.00 Non ISM~KC Members pay at registration table $35.00

5 PAGE 5 MARK YOUR CALENDARS FOR UPCOMING DINNER MEETINGS January 20, 2011 Resolving Supplier Disputes: Lessons Learned From a Fortune 100 Negotiator February 15, Topic to be determined March 15, Topic to be determined April 19, Topic to be determined May 17, 2011 Installation of Officers - Topic to be determined Michael Colbert, C.P.M. and Manuel Gutierrez, C.P.M. Your Programs Committee has lined up a great list of speakers to talk about the topics that you have deemed important from your responses to the annual survey. As always, attend for the great conversation and company of good friends and colleagues.

6 PAGE 6 Seminars ISM~KC Is Hosting An All-Day Seminar and Evening Educational Event ISM~KC is pleased to announce a very compelling 8 hour Continuing Education Seminar (earn eight CEH credits for attending) on Contract Management, and a related, but equally informative Dinner Seminar on Resolving Supplier Disputes (earn one CEH for attending). Both sessions on separate but closely related topics will be led by Mary Lewis, a long time leader, negotiator, professional educator and very engaging speaker. Different material will be covered at each event. Get a head start on your 2011 development plan and gain valuable information. We hope you will join us for the best educational opportunity yet. Discounts are offered to anyone who signs up for both events. Workshop and Dinner Event Presenter: Our presenter, Mary D. Lewis, MA, MBA has negotiated and managed strategic contracts for a Fortune 100 company for sixteen years, covering high tech equipment, software development and licensing, technology alliances, professional services, and construction. Ms Lewis, who currently manages a seven-year, $5 Billion outsource contract and is a former graduate-level university adjunct instructor, is a frequent guest lecturer and popular presenter on negotiating skills and techniques and contract life cycle management. Mary is a member of ISM, Central Exchange, Toastmasters International, and a board member for two Kansas City-area not-for-profit organizations. Who Should Attend: Supply Chain professionals, vendor managers, and those who interface with suppliers on a recurring basis in a contract-based relationship. NOTICE: To those who have already registered or are planning to register, please note the change of location. Still at Sprint but NEW Sprint address for ISM~KC Jan 21, 2011 All Day Seminar. New Sprint Address: Sprint Nextel 6050 Sprint Parkway Salon B & C Overland Park, KS Plenty of free parking recommended in Garage C or D

7 PAGE 7 All Day Seminar Event January 21, 2011 Friday Contract Management Workshop: Managing Contracts to Generate Value and Mitigate Risk Abstract. The contract is signed, the savings have been calculated and now you re done, right? Wrong! Managing a contract is just as important as negotiating it. Not managing it effectively after implementation can erode your savings and expose your company to legal, financial, and operational risks. In this one-day workshop, you will learn how to plug the value leaks that cost you money. Discover the six key ways to generate value from your contracts and the top five terms you never want to give up. Featuring lessons learned from real scenarios, you ll be able to identify the top common mistakes companies can make and walk away with tips to effectively manage your contracts. Printed materials will be provided. Class participation is encouraged, and group breakouts and class exercises will be included. Objectives. At the end of the workshop session, attendees will be able to: Define the difference between supplier management and contract management Identify potential value leaks that cost money and describe how to plug those leaks Discuss legal, financial, and operational implications in contract management List the top five terms that negotiators should never give up Discover six key ways to generate value from contracts Identify the top common mistakes in negotiating and managing contracts List key tips for effectively managing contracts Event Date: Friday, January 21, 2011 RSVP Date: No later than noon on Monday January 17, 2011 No refunds after January 17, no refunds for no-shows CEH: Earn eight (Continuing Education Hour) credits for attending, this supports maintaining an active and valid certification. Location: Notice the Address Has Changed Sprint Nextel Headquarters 6050 Sprint Parkway Salon B & C Overland Park, KS Plenty of free parking in parking garages C or D (see attached Sprint campus map) Registration starts at 7:45AM Time: 8:00-8:30AM networking time 8:30am to 5:00pmseminar, including lunch Lunch: Box lunch provided Event Planner: Lori Eckman, Lori.C.Eckman@CenturyLink.com, Tel: , Wireless:

8 PAGE 8 Pricing: Earlybird Member Pricing* Regular Member Pricing* Early-bird Nonmember Pricing* Regular Nonmember Pricing* Thur, Jan Educational $25.00 $30.00 $30.00 $ , 2011 Dinner Fri, Jan Contract $ $ $ $ , 2011 Management Seminar Combo Package^ Educational Dinner + Contract Management Seminar $ $ $ $ * No refunds after January 17, no refunds for no-shows. * Early-bird pricing applies to all registrations completed through C-vent by noon on Monday, Jan. 17 th, ^ $20 discount offered for Combo Package including both Educational Dinner and Contract Management Seminar. To receive any discounts, you will need to pre-pay only via this invitation. Map of Sprint Campus attached. Note: Plenty of free parking in parking garages L or M. C:\Documents and Settings\djm6451\My

9 PAGE 9 SATELLITE SEMINAR COMING YOUR WAY The Education Committee is proud to offer the following Satellite Seminars for the 2011 calendar year: Understanding and Embedding Risk Management Concepts into Supply Practices Thursday, February 10, 2011 The probability of loss or failure is always a possibility. In today's global economy, political unrest, materials shortages, environmental concerns, natural disasters and other disruptions are considerable supply chain risks that need to be addressed to ensure supply success. How can you identify and mitigate risks in your supply chain? This satellite seminar offers practical strategies and tools to recognize, manage and eliminate possible risks. Legal and Contracting Insights for Today's Supply Professional Thursday, April 28, 2011 Contracting underlies many aspects of procuring products and services. Questions often arise concerning how to draft the contract to address such issues as ethical practices, global regulations, intellectual property, licenses and social responsibility. Supply professionals are guided by laws and regulations to answer these questions. This satellite seminar will look at key considerations in the contracting process, including how to identify the terms and conditions that are important for you and your company, and how to draft an agreement that will be effective in today's business environment. All satellite seminars are from 9:00 AM to 1:30 PM - Location will be confirmed Registration and details will be forthcoming in cvent notification and August newsletter

10 PAGE 10 New Job Opportunities Posted on ISM-KC Web Site, go to: Log In Select Members Select Job Postings Click on each job for details This month we have two new postings: Business Planning Manager located in Upstate New York through Jackson Coulter Resources. This job has some unique requirements for someone with IT experience in the banking industry. Please visit the site above for more details and to apply. Buyer/Planner for Smith & Loveless in Lenexa, Kansas. This position requires someone with experience in electrical controls, motors, steel, steel components, pipes valves fittings and pumps. Please visit the site above for more details and to apply.

11 PAGE 11 December 2010 Mid-American States Economy December survey results at a glance: Leading economic indicator points healthy growth for first half of New hiring still tepid with less than one-fourth of firms expecting an upturn in hiring in next 6 months. Inflationary pressures remain high. Rapid inventory buildup reflects an improving economic outlook. For Immediate Release: Jan. 3, 2011 OMAHA, Neb. For a second month, the Business Conditions Index for the ninestate Mid-America region advanced. According to recent surveys of supply managers, the region will likely continue to grow at a healthy pace with rising inflationary pressures at the wholesale level in the first half of Overall index: The index, a leading economic indicator which ranges between 0 and 100, expanded to 57.5 from November s 55.9 and was well above October s This is the 13th consecutive month that the index has risen above growth neutral. An index of 50.0 is considered growth neutral. Very healthy farm income and expanding trade are pushing growth higher for firms in the region. The overall index is a mathematical average of indices for new orders, production or sales, employment, inventories and delivery lead time. The regional economy ended the year on a high note as the weaker U.S. dollar and an expanding global economy stimulated business activity for firms with close ties to agriculture and energy commodities, Creighton University Economics Professor Ernie Goss said today. Employment: For a 12th straight month, the regional employment index remained above growth neutral. However, the December job reading slumped to a frail 51.1 from November s For December, 21.1 percent of firms reported increases in hiring while 18.9 percent detailed pullbacks in company employment levels. This month firms were asked about their hiring expectations for the next six months. Only 24 percent expect an upturn in hiring while the remaining 76 percent anticipate layoffs or level employment for the first half of 2011, said Goss. These expectations are somewhat less optimistic compared to March 2010 when 28 percent anticipated greater new hiring in the next six months. Despite this somewhat negative employment outlook, I expect the nine-state region to add almost 100,000 jobs for the first half of 2011, or a 1.2 percent annualized pace. This pace is a half percentage point above what I expect for the

12 PAGE 12 national economy, said Goss, director of Creighton s Economic Forecasting Group and the Jack A. MacAllister Chair in Regional Economics. Wholesale Prices: The prices-paid index, which tracks the cost of raw materials and supplies, soared to an inflationary 81.1 from 64.7 in November and 69.9 in October. This was the 19th straight month that the region s inflation gauge climbed above growth neutral. While rapid growth in the supply managers inflation gauge has yet to show up in consumer prices, I forecast that to change significantly in This increase at the producer level will bolster consumer prices well above the Federal Reserve s target rate of 2.0 percent sometime in Likewise, I expect long term interest rate to grow rapidly in the first half of 2011 to compensate investors for rising inflation, said Goss. Confidence: Looking ahead six months, economic optimism, as captured by the December business confidence index, rose to 69.9 from November s 67.8 and well up from September s While the overall U.S. economy remains weak, as gauged by unemployment rates, individual firms in the Mid-America region are experiencing solid improvements in business conditions. This is translating into a strong economic outlook in terms of sales but without accompanying rapid job creation, said Goss. Inventories: For the 10th time in the past 11 months, supply managers in the nine-state region expanded inventory levels. The December inventory index climbed to 64.4 from November s This time last year, supply managers were cutting inventories and the December 2009 inventory index was 39.2, well below the current level. A stronger sales outlook is pushing supply managers to add to inventories, said Goss. Trade: The December new export orders index advanced to 54.1 from 50.8 in November. The region s import reading slipped from November s 51.4 to 50.0 for December. The weaker U.S. dollar, making U.S. goods cheaper abroad and foreign goods more expensive in the U.S., is strengthening exports and shrinking imports. I expect this trend to continue for 2011 with the global economic rebound adding to the influence of the weaker dollar, said Goss. Other components: Other components of the December Business Conditions Index were new orders at 58.2, up from November s 54.5; production or sales at 55.8, down from 56.8; and delivery lead time at 57.9, up from 55.6 in November. The 2010 Regional Economy: Job leaders (states exceeding nation in job growth) Minnesota (2 percent growth), North Dakota (2 percent growth), South Dakota (1.7 percent growth), Arkansas, Iowa, and Oklahoma (1.5 percent growth), Nebraska (1.1 percent growth); Job laggards- (states lagging behind national average in job growth) Kansas (0.6 percent growth), Missouri (0.5 percent loss). The Creighton Economic Forecasting Group has conducted the monthly survey of supply managers in nine states since 1994 to produce leading economic indicators of the Mid-America economy. States included in the survey are

13 PAGE 13 Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma and South Dakota. The Creighton Economic Forecasting Group uses the same methodology as a national survey by the Institute for Supply Management, formerly the Purchasing Management Association, which has formally surveyed its membership since 1931 to gauge business conditions. The overall index, referred to as the Business Conditions Index, ranges between 0 and 100. An index greater than 50 indicates an expansionary economy over the course of the next three to six months. Arkansas: The leading economic indicator for Arkansas, declined to a still healthy level for the month. After two straight months of increases, the Arkansas Business Conditions Index dipped to 57.2 for December from November s Components of the overall index for December were new orders at 58.8, production or sales at 66.7, delivery lead time at 52.1, inventories at 41.5 and employment at In 2010, Arkansas recovered a large share of durable goods manufacturing jobs it lost from the recession. Based on our survey results, the state will continue to expand its manufacturing base, especially in durable goods for the first half of This growth will spill over into the state s new hiring with more than 8,000 jobs added (1.2 percent annualized growth) in the first half of 2011, said Goss. Iowa: For the 12th straight month, Iowa s Business Conditions Index climbed above growth neutral. The index, a leading economic indicator from a survey of supply managers, climbed to 56.8 from November s Components of the overall index for December were new orders at 62.6, production or sales at 54.7, delivery lead time at 62.9, employment at 57.1, and inventories at In 2010, Iowa recovered a large share of durable goods manufacturing jobs it lost from the recession. On the other hand, Iowa continued to shed nondurable goods manufacturing jobs, especially food processing. Based on our survey results, the state will expand its manufacturing base, especially in durable goods for the first half of This growth will spill over into the Iowa s new hiring with more than 5,000 jobs added (0.6 percent annualized growth) in the first half of 2011, said Goss. Kansas: For the first time since July, the leading economic indicator for Kansas sank below growth neutral. The December Business Conditions Index slumped to 48.4 from November s Components of the overall index for December were new orders at 54.3, production or sales at 48,8, delivery lead time at 52.1, employment at 42.9, and inventories at In 2010, Kansas failed to recover manufacturing jobs lost from the recession. Based on our survey results, the state s job growth will be nil for the first half of However a significant weakening in the value of the dollar, making Kansas exported goods more competitive abroad, would be an important stimulate to job growth, said Goss. Minnesota: For the 17th straight month Minnesota s leading economic indicator was above growth neutral. However, the Business Conditions Index for December sank to 52.0 from November s Components of the overall index

14 PAGE 14 for December were new orders at 52.0, production or sales at 53.8, delivery lead time at 50.9, inventories at 55.7 and employment at In 2010, Minnesota gained both durable and nondurable manufacturing jobs. However even with healthy economic growth for 2011, the state will not recover the manufacturing jobs lost since the recession began. Based on our survey results over the past several months, I expect Minnesota to add almost 23,000 total jobs (an annualized growth of 1.5 percent) in the first half of 2011, said Goss. Missouri: For the 18th straight month, Missouri s Business Conditions Index climbed above growth neutral. The index, based on a survey of supply managers, grew to 57.4 from 56.6 in November. Components of the overall index from the December survey were new orders at 55.6, production or sales at 58.0, delivery lead time at 61.4, inventories at 58.7 and employment at Missouri continued to lose manufacturing jobs in 2010, albeit at a slow pace. Transportation equipment manufacturing and firms tied to this industry continue to expand output without increasing employment. Based on our survey results over the past several months, I expect job growth to be very modest for the first half of 2011 with gains of less than one-half of one percent (annualized), said Goss. Nebraska: Nebraska s Business Conditions Index, a leading economic indicator, climbed above growth neutral 50.0 for a second straight month. The index from a survey of supply managers rose to 56.4 from November s Components of the overall index for December were new orders at 58.5, production or sales at 60.6, delivery lead time at 57.3, inventories at 53.5 and employment at Manufacturing employment for Nebraska was essentially flat for As long as the U.S. dollar does not rise significantly over the coming months, I expect Nebraska to add both durable and nondurable goods jobs in the first half of Overall, the state economy will add approximately 6,000 jobs (an annualized pace of 1.1 percent) in the first half of 2011, stated Goss. North Dakota: The leading economic indicator for North Dakota remained above growth neutral. However, the overall Business Conditions Index, based on a survey of supply managers, dipped to a regional low of 51.3 from November s Components of the overall index for December were new orders at 42.6, production or sales at 29.3, delivery lead time at 61.6, employment at 54.5, and inventories at Vibrant energy and agriculture sectors boosted 2010 growth for the state. Even so, manufacturing employment in North Dakota was flat for the year. Based on surveys over the past several months, I expect robust job growth for the state for the first half of 2011 with an addition of more than 4,000 jobs (2.0 percent annualized growth), said Goss. Oklahoma: For the 12th straight month, Oklahoma s leading economic indicator remained above growth neutral. While the Business Conditions Index was down at 59.7 from November s 66.3, it was the highest reading for the region. Components of December s overall reading were new orders at 58.3, production or sales at 54.0, delivery lead time at 57.5, inventories at 76.4 and employment at Oklahoma experienced very healthy 2010 growth. The state will continue to benefit from expansions tied to the energy sector. Surveys over the

15 PAGE 15 past several months point to the addition of more than 20,000 jobs (a 2.3 percent annualized growth) for the first half of 2011, stated Goss. South Dakota: South Dakota s leading economic indicator continues to point to an expanding state economy in the months ahead. The overall Business Conditions Index declined slightly to 57.2 from November s Components of the overall index for December were new orders at 59.8, production or sales at 62.0, delivery lead time at 41.3, inventories at 63.7 and employment at Manufacturers increased employment and the average hours worked in Likewise growth tied to a very healthy farm sector boosted 2010 growth. Based on surveys over the past several months, I expect this growth to extend well into 2011 with the addition of almost 5,000 jobs (a 2.0 percent annualized pace) for the first half of the year, said Goss. Follow Goss on twitter at For historical data and forecasts visit our website at:

16 PAGE 16 ISM Kansas City Board of Directors President Sandra Buescher, MBA, CPSM Hallmark Cards Executive Administrator Mary Ann Lowrey, C.P.M. ISM-KC 1 st Vice President Membership, Marketing & Communications Lamar Wilson NAIC 2 nd Vice President Programs, Education & Diversity Kriss Pearson Treasurer Nick Arthur Hallmark Cards Secretary JoAnn Harper, CPSM, C.P.M. Sprint Director - Diversity Vacant Position Director Marketing Mark VanSickle, CPM, CPSM Sanofi Aventis Mark.VanSickle@sanofi-aventis.com Director - Membership David Bradshaw Sprint Romet2.bradshaw@sprint.com Co-Director Programs Manuel Gutierrez, C.P.M. CenturyLink manuel.gutierrez@centurylink.com Co-Director Programs Michael Colbert, C.P.M. Ash Grove Cement Company Michael.colbert@ashgrove.com Director - Communications Jim Marinakis, CPSM, C.P.M. CenturyLink jim.marinakis@centurylink.com Co-Director Education Lori Eckman CenturyLink Lori.eckman@centurylink.com Co-Director - Education VACANT