ISM predicts economic growth this year

Day 2 keynote provides benchmark economic outlook

By Purchasing Staff -- Purchasing, 4/9/2008 10:04:00 AM

ISM predicts economic growth this year
But manufacturing revenue hike will only hit 1%

There is good news and bad news in ISM’s 2008 semiannual economic forecast, released Tuesday at the association’s 93rd annual conference in St. Louis.

The good news is that 42% of the purchasing and supply executives responding to ISM’s survey believe the manufacturing revenue will grow about 9.2% this year. The bad news is that nearly a third of the respondents expect a 9.3% drop in revenue and 27% expect no change. The ISM prediction: Revenue growth in manufacturing of 1%.

At the end of last year, the panel forecast a 6.8% increase in revenues. Norbert Ore, chair of the ISM Manufacturing Business Survey Committee and group director of strategic sourcing and procurement for Georgia-Pacific, said the Purchasing Managers Index (PMI), now at 48.6, has been coming down since 2004. “We are in a period of slow deceleration,” he said.

Other statistics from the semiannual forecast:

1. Capacity utilization in April was 78.6% vs. 82.9% in December. ISM now predicts an overall increase in production capacity of 2.5% in 2008, down from the prediction of 11.3% in December.
2. Capital expenditures were up 1% in April.
3. Prices will increase by a net average of 8.5% this year. They’ve gone up 6% through
the end of April.
4. Employment in manufacturing will grow 2.9% for the rest of the year.

Tips on saving your company $100 million
Spend analysis and a sense of urgency are the first steps

The first step to take to save $100 million in spending is to have a sense of urgency. The second step is to create an internal coalition to work toward that goal that has support from top management and middle and lower management.

That was the advice Juergen Freund and Apollon Fanzeres gave to attendees at ISM’s 93rd annual conference Monday. Freund, vice president of purchasing at Merck-Serono, and Fanzeres, director of corporate procurement at Dentsply International, led a special session on savings at the conference.

Freund said the urgency at Merck resulted from discussions at a Board of Directors meeting. “I said I could save a $100 million if purchasing was involved in all significant buying,” said Freund.

Critical to the effort, said Fanzeres, who formerly worked at Merck, was a detailed spend assessment, including aggregation, cleansing, classification and analysis of spend data. He suggested getting that data from the accounts payable department.

Freund said buyers should also break down data by categories and do an opportunity assessment. The assessment would include a check of categories with the largest spend, investigating categories with many suppliers, identifying categories where purchasing has had little involvement and segmenting suppliers.

The speakers also identified benchmarks of possible savings by category. Among them: 2-10% savings could come from risk management, 10-20% from packaging and 15-30% from information technology.


Procurement takes the lead
Management studies show influence of purchasing function

In most companies, top management says that supply management contributes greatly to performance of the business, a procurement expert told ISM conference attendees Monday. Joseph L. Cavinato, director of the A.T. Kearney Center for Strategic Supply Leadership, said that to fulfill that promise, purchasing professionals have to be able to synthesize and analyze disparate data.

A study Cavinato did in 1980 showed that purchasing was generally behind the organization in its ability to think differently and strategically. In the 1990s, other studies showed that purchasing was ahead of the organization in that regard.

“If you’re behind, you have raise up the purchasing organization’s skills,” Cavinato said. “If you’re ahead, you have to raise up the organization.”

To truly lead companies, he added, purchasing has to learn to understand the issues other functions have and learn their language. “When you do that, you can help them think strategically,” he said.


Lessons from China sourcing
It requires a different mindset

Parmswaren Bhaskaran and Robert Sullivan, both of Alix Partners, warned ISM attendees that for all the benefits of low-cost-country sourcing it is a complex strategy, and is getting to be more so.

The drivers are still there, they said, including low variable labor costs and lower costs for significant capital expenditures. But changes in cost structures and in politics affects the relative attractiveness of low-cost-country options.

Buyers need to develop a new mindset, they said. Besides gathering spend data, they have to help suppliers fill out RFPs, constantly visit suppliers and monitor international exchange rates, among other things.

Above all, they said, be patient, learn local practices and always have a Plan B in case something goes wrong.


Women leaders in supply management attend inaugural meeting
A preview of full summit scheduled for February 2009

Tuesday morning bright and early was the inaugural meeting of the Women Executive Supply Management Summit workshop sponsored by the Institute for Supply Management.

After breakfast, attendees heard from Susan Franzen, president of LifeU, who presented a talk entitled “Aligning Employee Contributions for Unstoppable Momentum.”

To get alignment, Franzen explained, leaders in supply management need to present employees with a clear picture of the direction in which the organization is heading. “You need to communicate that vision,” she said.

She spoke of what motivates employees (it’s not money)—achievement, autonomy, affiliation, power, safety and security, esteem and equity—and the need for leaders to recognize these and help employees feel their contributions are valued and respected.

“It’s important for leaders to see the potential in others and to build their confidence,” she said. “Then, you will have clear contribution and unstoppable momentum.”

A speed networking session followed Franzen’s presentation. The event gave attendees a preview of what’s to come in 2009 when a full Women Executive Supply Management Summit takes place Feb. 5-6, 2009 in San Antonio, Texas.


ISM announces recipients of R. Gene Richter Awards
Honor recognizes supply management organizations for innovation

The Institute for Supply Management announced the recipients of the Third Annual R. Gene Richter Awards for Leadership and Innovation in Supply Management at a banquet on Monday evening.

The awards honor the professional contributions of R. Gene Richter, a pioneer in the field of supply management, and recognize innovation in supply organizations that through strong leadership have dramatically increased their contribution to organizational success.

Richter led the supply organizations at Black & Decker, Hewlett-Packard, and IBM. All three received Purchasing’s Medal of Professional Excellence. This year’s recipients of the Richter award and categories for which they are recognized are:

• HP (Process, which recognizes leadership and innovation in transforming a supply-related process such as sourcing or supplier relationships).

• Lockheed Martin Aeronautics Co. (Process).

• Pfizer Inc. (Process).

• Royal KPN (Process).

• Masco Corp. (Technology, use of tools that contribute to organizational success such as buyer-supplier collaboration).

Other categories for which there no award recipients this year include people and organization/structure.

Looking to get Lean? Focus on time
A hot topic at this year’s event

Lean supply management was a hot topic at the 93rd Annual International Supply Management Conference this week. So much so that it was one of the new educational tracks added to the event for 2008.

Randy Cook, director of the Shingo Prize Lean Education Initiative at Utah State University, led two of the educational sessions. In his Monday session, Lean and its Application to Your Company and Your Suppliers, he told attendees that Lean is an enterprise wide management philosophy, a way of thinking and a process improvement approach. “Ultimately,” he said, “Lean becomes a culture.”

He went on to explain that companies today are constantly being challenged with making a product better, faster, cheaper, and that the key to Lean is for supply management pros to focus on the time it takes from recognizing demand to fulfilling it and ultimately being paid.

“Lean is all about focusing on time,” he said. “If we get rid of wasted activities, then quality, cost and delivery improves. Imagine dramatically reducing that leadtime. Customers will hold less inventory and begin to feed you orders. That is value to customers and what they are willing to pay for.”

Analyze the supply base to lower risk
An important step in the strategic sourcing process

For supply management professionals new to the strategic sourcing process or those looking to beef up their skills, David Hargraves, director of strategic sourcing at the University of Pittsburgh Medical Center, put together an educational session entitled “Supply Market Analysis for a Competitive Advantage” that provided conference attendees with some critical need-to-know information.

For those unfamiliar with a strategic sourcing process that entails multiple steps, analyzing the market is the step that comes immediately after analyzing the spend and right before developing a sourcing strategy.

As Hargraves explains it: “Supply market analysis is a process by which you can provide a view of the market using primary and secondary sources of information to understand what is happening in the market and who holds the power.”

Hargraves’ tips for putting together the analysis:

• Start with the end in mind. Have a clear business question to answer.

• Be skeptical of sole sources. Corroborate with multiple sources.

• Limit scope. Just answer the business question.

• Leave your opinion at the door. Preconceived notions may taint results.

• Make your analysis unassailable. Double-check your work.

Hargraves told attendees that developing a well-executed supply market analysis can help to reduce risk and generate savings. “Developing a comprehensive understanding of the supply base by studying financial capability and other supplier attributes compared to your organization’s needs can help minimize supply interruption,” he said.


ISM opens 93rd Annual Conference
Opening keynote offers leadership tips

More than 2,000 attendees are here in St. Louis this week to attend the Institute for Supply Management’s 93rd Annual Conference. They are here to attend workshops on topics such as Green purchasing, spend management, ethics, negotiations, forecasting and more. Additionally, they are here to network and take certification exams.

The opening keynote address was Sunday. The mission of an opening keynote address is to charge up conference goers for the events ahead. Who better to do that at the 93rd Annual International Supply Management Conference than Brigadier General Nick Halley?

Halley, whose 30-year career in the military includes three combat commands (Vietnam, Grenada and Iraq), first reminded attendees of the importance of their mission: “Supply management may be the most critical part of the operations at your company.” 

Such a critical operation calls for good leadership, he said. And “leadership determines your future and your company’s future. If your company’s strong, then your country’s strong. That helps ensure prosperity for the future.”

Drawing on his combat experience, Halley recommended that supply management pros be dedicated, study accepted principles of leadership and apply them to their own situation. To do that, he offered up these three tips:
1. You have to be able to control your ego. (It’s okay to have one.) There are people to help you control your ego. When they do, try to have a sense of humor about it.
2. Be a good listener, and be open to unsolicited advice. Have your antenna out for advice from unexpected sources. You will learn a lot.
3.  Lead by example. People are watching to see if you do this. They need to see you as a leader in their hearts and minds.

Sustainability should be a supplier metric, Schramm says
Purchasing must explain value to suppliers

Purchasing professionals should measure their suppliers on their sustainability efforts as well as criteria such as cost, quality and delivery.

That was the advice of Drew Schramm, senior vice president of global supply and quality at office furniture maker Herman Miller of Zeeland, Mich.

At the 93rd International Supply Management Conference in St. Louis, Schramm spoke to a large audience on his company’s Green efforts. He said that although most customers talk about the need to protect the environment, few seem willing to pay extra for Green products. “But we believe if we spend time with customers and explain the value, they’ll accept higher pricing,” he said.

Schramm said one key to Herman Miller’s efforts is its work with the firm McDonough Braungart, which has a program called Design Chemistry. Herman Miller has tied its Design for the Environment protocol into the firm’s evaluation process. “McDonough uses its systems to evaluate the carcinogenic quality or potential of our components, gives us a report on the chemical composition and certifies parts for us,” he said.

Herman Miller has been environmentally conscious since its beginnings, Schramm said. Now, the company has set a series of goals for its environmental efforts that it plans to meet by 2020. Those goals include:

1. Zero landfill
2. Zero hazardous waste generation
3. Zero air and water emissions from manufacturing
4. 100% Green energy

Accomplishing those goals requires purchasing to work closely with suppliers even to the point of getting proprietary information from them on the chemicals and other components of their products. Increasingly, he said, manufacturers will need to have documentation similar to material safety data sheets for their products, particularly as European regulations such as REACH get adopted.

Key, though, is to be financially sustainability. “For that reason, we used to only do Green for new products,” he said. “Today, we are looking back on old products too and starting to retire them.”

ISM goes Green with conference
Association helps attendees save energy at conference

Aware of the need to minimize the environmental impact of presenting an event such as the 93rd Annual International Supply Management Conference and Educational Exhibit attended by some 2,000 people, the Institute for Supply Management (ISM) is taking steps to decrease waste, save energy and recycle or reuse. Among them:
• Providing attendees with refillable water bottles and conveniently locating water dispenses.
• Printing the program guide in soy ink.
• Providing conference proceedings on the ISM website in the conference area and on a CD-ROM included in each attendee’s conference materials.
• Using the Chef’s Harvest program. All food served is either locally and/or organically grown.
• Providing large recycle bins for glass, paper, cans, bottles and name badges in the exhibit hall.
• Offering educational sessions related to sustainability and green strategies.

Think enterprise when embarking on spend analysis
A 25% cut in costs is possible

Whether looking to get more out of spend analysis or implement a new program, attendees at the 93rd Annual International Supply Management Conference got a chance to meet one of the authors of a new book on the topic Spend Analysis: The Window Into Strategic Sourcing and receive a copy of its first chapter at the Emptoris booth in the educational exhibit hall. The company used the conference as the venue from which to launch the new book.

Kirit Pandit, vice president of content strategy and the head of product management for the spend analysis and compliance solution at Emptoris, was on hand at the event on Sunday to share his knowledge. Pandit co-founded a spend data management company called Intigma, which Emptoris purchased in 2005. He wrote the book with H. Marmanis, who also works for Emptoris.

Pandit told Purchasing that the book has something for everyone with an interest in spend analysis, “a starting point of strategic sourcing that creates a foundation for spend visibility, compliance and control.”  

Interest in spend analysis has perked up recently given the uncertain economic environment and companies are looking to supply management to better control costs, Pandit said. From his experience, he finds that supply management pros just embarking on spend analysis tend to want to start small, perhaps looking at the spending of one department.

“While taking such baby steps is okay and provides some opportunity, it’s important to understand the big picture and see the potential,” he said. “Think enterprise. Think about what you can do to paint a broader canvas in your company.” Spend analysis can help a company to reduce costs by up to 25%.

How to outsmart sales in negotiations

Sales forces use back-door questions to gain leverage

 

Salespeople are trained to draw out information from engineers and others that will help them win in negotiations, and purchasing’s job is to help engineering avoid the traps that sales sets. Robert Benedict, president of Benedict Negotiating Seminars, told attendees at the ISM Conference in St. Louis Monday that the best way to do that is to watch for “back-door” questions.

 

Among them, he said: Who are the competitors, what’s the most important criteria for winning the contract, who is on the decision-making team, whether purchasing has veto power, and even who the end user of the product to be manufactured will be.

 

In each case, Benedict said, salesmen can use the information they get to better position their company, product and pricing and take leverage away from the buyer.

 

“Suppliers may even offer to write the specs or do drawings for free,” Benedict warned. “Don’t let them.”

 

Negotiations with single-source suppliers can be the most difficult, he said. One key is to offer them long-term contracts in return for a guaranteed schedule of price reductions.

 

For key suppliers, he suggested that buyers may be able to allow the suppliers to use their own discounts.

 

Buyers should rate single-source suppliers just as they do other suppliers, he said. Among the criteria for the ratings would be actual vs. negotiated delivery schedules, quality and change orders. The latter is important, he said, because many single-source suppliers make a lot of money on change orders.

 

Benedict spoke at a special workshop that included portions of a training film. After each segment of the film played, he encouraged the audience to form small groups to discuss the points in the film on good negotiations practices and share their own experiences.

 

Forecasting called critical for strategic planning

Producer Price Index, leading indicators market conditions are all tools

 

The key thing to remember about forecasts in purchasing is that you have to do them, not that they have to be right, Robert Kemp told attendees at a forecasting workshop Monday at the ISM Conference in St. Louis.

 

You do them because they help in strategic thinking and planning, he said.

 

Kemp, president of Kemp Enterprises, and R. David Nelson, CEO of Best Window Co., reviewed for attendees the factors that adversely affect forecasts, such as changes in lead times, changes in labor markets, changes in money markets, technology changes, political changes and natural disasters.

 

The best way to avoid surprises like those is to gather as much information as possible. “You have to know history before you can forecast,” Kemp said.

 

Kemp and Nelson advised purchasing professionals to continually check leading indicators such as bond yields, the money supply, inventory levels and ISM’s Purchasing Managers’ (PMI) index as well as other industrial indexes.

 

But, they should also check lagging indicators, such as labor costs, business spending and prime rates, they said.

 

As for what purchasing should be forecasting: Kemp and Nelson said they should be forecasting quantities, prices, economic change, transportation, capacity and supplier status, among other factors.

 

And, they should share forecasts with selected key suppliers as part of their strategic planning. Nelson said forecasting is even more critical today than before because of the increased globalization of business.

 

Purchasing’s involvement in contingent labor growing

That means procurement and HR staffs must work closer together

 

Jai Shekhawat, CEO of sourcing technology firm Fieldglass, told a breakfast meeting Monday that contingent workforces are becoming more relevant in business today and that purchasing must work with HR staffs to help them design better policies and practices.

 

“Procurement is skilled at setting good specs and understanding costs,” he said, “and that helps HR.”

 

He suggested that corporations form cross-functional teams for planning contingent labor policies, and that purchasing, finance, HR and relevant business units should be on the teams. Ten percent of contingent labor converts to full-time staff, he said. “It’s a try before you buy” model.

 

“People value specialists more than generalists today,” Shekhawat said. Corporations are shrinking and often the specialists flow out, so the contingent work force is getting more skilled, he said.

 

“Someone in the corporation must think holistically about contingent labor,” Shekhawat said, and purchasing should be a part of the process and thinking.

 

 

China not the only low-cost country

Turkey and other countries may also offer advantages

 

Don’t be so quick to turn to China when considering a low cost country sourcing strategy, Craig Reed, vice president of procurement and logistics at MeadWestvaco, told attendees at the Sourcing in Eastern Europe educational session on Sunday at the ISM Conference in St. Louis.

 

“There are issues with China that supply management professionals may want to consider such as recent moves by the government to restrict lending and implementing other measures to suppress industrial growth,” Reed said. “And that’s over and above long leadtimes and total cost of ownership concerns.”

 

From his experience, he suggested supply managers consider Central and Eastern Europe for its strong infrastructure, relatively low labor rates, skilled workforce, and membership in the European Union, whose laws and regulations may give supply managers some added comfort and security especially regarding intellectual property.

 

David Hauxwell, director of global sourcing at MeadWestvaco, presenting with Reed, gave attendees their take-away. “A country that’s widely overlooked by supply managers is Turkey. It’s a new found area, with incredible growth and infrastructure.”

 

In making a choice to purchase goods from Turkey, Hauxwell recommended supply managers keep in mind that the country “can be very regional” and that it is a good idea to have individuals on the ground to do business with suppliers located there and in other Central and East European countries.

 

 

New tools from ThomasNet streamline buying process

They give buyers more time for decisions

 

At its booth at the ISM Conference in St. Louis this week, ThomasNet announced a new relationship with Source One Management Services through which the company now provides users of its website free access to automated purchasing tools. They consist of request for information, proposal, quote (RFx) and reverse auction tools.

 

The tools make it possible for buyers who do not have purchasing software to streamline the buying process, and are available to those who register through the MyThomas section of the ThomasNet site.

 

Without purchasing software, buying can be an inefficient process of sending separate emails to suppliers, collecting replies through Word or Excel documents and ensuring data provides an apple to apple comparison.

 

“These tools can reduce time supply management professionals devote to each separate request and can improve efficiency by 30% or more,” Steve Belli, CEO of Source One, told Purchasing in an interview. 

PREVIEW

The economy is sure to be a hot topic at the Institute for Supply Management’s 93rd Annual International Supply Management Conference and Educational Exhibit in St. Louis next month.

Headlining the event are Barry B. Bannister, managing director of industrial and basic materials research at Stifel, Nicolaus, and David Hensley, executive director and global economics coordinator in the economic research department at JPMorgan, who will present their views on the economy, following the release of the ISM Semiannual Economic Forecast.

The conference, which takes place May 4-7 at the Renaissance Grand Hotel, also has a few new wrinkles that help re-affirm ISM’s mission of furthering the profession through education.

New are seven educational tracks. Attendees can select workshops from a single track for intense training of one topic or they can mix and match for an overview of what’s new in the profession.

The tracks are: lean supply management, leadership in supply management, sustainability and green strategies, the decade ahead in supply management, business continuity, project management and global strategies.

ISM expects more than 2,000 purchasing professionals from more than 27 countries to attend the conference.

Highlights
Attendees will have opportunity to meet with recipients of the Third Annual ISM R. Gene Richter Awards for leadership and innovation in supply management at special sessions added to the conference after ISM announces winners of the honor.

Sure to spark debate is an interactive discussion on ethics led by the ISM Ethical Standards Committee: David D. Adler, director of operations and corporate purchasing at Sybase; Judith Baranowski, chief procurement officer, integrated supply chain, at Motorola and Leah Kalin, director commodity management, clinical technologies and services at Cardinal Health.

There’s also a discussion led by members of the ISM Committee on Social Responsibility. On the panel are DeLynne Ano, director of supplier diversity and development at The Walt Disney World Co.; Cathy A. Rodgers, vice president of global opportunities and business development, IBM Global Services and Drew Schramm, vice president of global supply and quality at Herman Miller.

Educational sessions feature Osamu Uehara, chief executive officer of ISM—Japan, who speaks on strategic supply management of Japanese companies overseas operating facilities, and Christina De Luca, CPO, refining and marketing at BP, addressing the impact of the external environment on companies.

Agenda
The conference begins at 7 a.m. on Sunday, May 4, with registration. The exhibit hall opens at 11 a.m. Lunch will be served, followed by a networking session.

The event officially opens with a keynote address at 2:15 p.m. by Brigadier General Nick Halley, who is retired from the U.S. Army and author of the book Leadership Under Fire!. Workshops begin at 3:45 p.m. There will be reception in the exhibit hall at 5 p.m.

On Tuesday, May 5, Norbert J. Ore, chair of the ISM Manufacturing Business Survey Committee, will present the committee’s Manufacturing Semiannual Economic Forecast. Anthony S. Nieves, chair of the ISM Non-Manufacturing Business Survey Committee will present the committee’s Non-Manufacturing Semiannual Economic Forecast.

Keynote speaker at lunch is Gerd Hofmann, head of strategic purchasing at Hugo Boss. His talk focuses on sustainability.

The J. Shipman Award and Volunteer Appreciation Banquet is in the evening. The award honors an individual’s career in supply management.

Olympic Gold Medalist Dominique Dawes is the keynote speaker at a brunch on Wednesday, the final day of the conference.

Educational exhibits top more than 100ISM conference showcases supliers

The ISM 93rd Annual International Supply Management Conference and Educational Exhibit features more than 100 suppliers of a variety of goods and services. Here is the complete list, as April 14, with booth numbers and web addresses:

A.T. Kearney Procurement Solutions (booths 619, 621)

AdaptOne (booth 109)

ADR International (booth 633)

AECsoft USA (booth 220)

AFMS Logistics Management (booth 539)

AlliedBarton Security (booth 326)

American Express (booths 515, 517)

American Management Association (Booth 121)

American Metal Market (booth 628)

Aravo Solutions Inc. (booth 118)

Archstone Consulting (booth 624)

ARI—Automotive Resources International (booth 715)

Ariba Inc. (booth 309)

Asset Auctions (booth 721)

Barnes&Noble.com (booth 225)

Basware (booth 719)

BCD Travel (booths 342, 344)

Beeline (booth 729)

Bellwether Software Corp. (booth 242)

BFC Print (booth 620)

Biznet (booth 616)

Breakthrough Management Group, Inc. (booth 737)

C.H. Robinson Worldwide (booth 318)

Carlson (booth 321)

Cartus (booth 120)

CCP Global, Inc. (booth 129)

ChapterManager (booth 733)

Cintas First Aid & Safety (booths 239, 241)

Citicorp Diners Club (booths 132, 134)

Clearnpoint Resources, Inc. (booths 330, 332)

Click Commerce CSM (booth 125)

Co-Exprise Inc. (booth 144)

CombineNet (booth 521)

Competitive Soltuions Inc. (booth 133)

Concur (booth 635)

Connolly Consulting (booth 734)

Corbus (booth 745)

CoreTrust Purchasing Group (booth 218)

Corporate Express (booths 221, 223)

Corporate Graphics International (booth 228)

Cort (booth 618)

Coupa Software (booths 542, 544)

CVM Solutions (booth 333)

D&B (booths 233, 235)

Desert Paper and Envelope Co. (booth 543)

EBSCO Information Services (booths 236, 238)

EC Sourcing Group (booth 728)

eCompany Store (booths 625, 627)

Emptoris (booth 439)

Enporion (booth 222)

Equifax Commercial Information Solutions (booths 124, 126)

ESIS (booth 645)

ET2C International (booth 623)

eTouches (booth 135)

Evergreen Corporate Gifts & Promotions (booth 545)

Expedia Corporate Travel (booth 725)

Fairmont Supply Co. (booth 128)

Fastenal Co. (booth 315)

FedEx Custom Critical (booth 525)

FedEx Freight (booth 525)

Fieldglass (booth 519)

First Index (booth 723)

Freeman (booth 641)

GE Money—Corporate Payment Services (booth 421)

GetThere (booth 409)

Global eProcure (booths 538, 540)

Global Insight (booth 324)

Guardsmark (booth 214)

Hagemeyer North America (booths 442, 444)

Hubcast, Inc. (booth 218)

Iasta (booth 328)

IBISWorld Inc. (booth 637)

ICG Commerce (booth 708)

iCompia (booth 727)

International Computer Negotiations (booth 541)

IQNavigator (booth 626)
http://www.iqnavigator.com/

ISSA, The Worldwide Cleaning Industry Association (booth 245)
http://www.issa.com/

James Tower (booth 622)
http://www.jamestower.com/

JVKelly Group (booth 438)
http://www.jvkg.com/

Kaman Industrial Technologies (booth 327)
http://www.kaman.com/index.php

Malaysian Trade Commission (booth 123)
http://www.matrade.gov.my/

Management Dynamics (booth 735)
http://www.managementdynamics.com/

Manpower Inc. (booth 640)
http://www.manpower.com/

MarkMaster (booth 232)
http://www.mmstamp.com/

MasterCard Worldwide (booth 215)
http://www.mastercard.com/

MSC Industrial Supply (booths 343, 345)
http://www1.mscdirect.com/cgi/nnsrhm

MTM Recognition (booth 322)
http://www.mtmrecognition.com/

National Business Travel Association (booth 320)
http://www.nbta.org/

NISH (booth 244)
http://www.nish.org/

Office Depot (booth 427)
http://www.officedepot.com/

OfficeMax (booth 718)
http://www.officemax.com/omax/home/homePage.jsp

Omega World Travel (booth 114)
http://www.owt.net/

OneSource Information Services (booth 617)
http://www.onesource.com/

Oracle (booths 115, 117)
http://www.oracle.com/applications/procurement.html

Pace Global (booth 720)
http://www.paceglobal.com/paceglobal/

Peopleclick (booth 340)
http://www.peopleclick.com/

Perfect Commerce (booths 339, 341)
http://www.perfect.com/home/index.html

PHH Arval (booth 122)
http://www.phharval.com/

Pothos (booth 316)
http://www.pothos.us/

Primacy Relocation (booth 441)
http://www.primacy.com/

Purchasing (booth 717)
/

PurchasingNet (booths 224, 226)
http://www.purchasingnet.com/

Puridiom (booths 527, 529)
http://www.puridiom.com/

QStrat Inc. (booth 716)
http://www.qstrat.com/index.jsp

Quadrem (booth 314)
http://www.quadrem.com/

Resources Global Professionals (booth 638)
http://www.resourcesglobal.com/

Sabre Travel Network (booth 409)
http://www.sabre.com/

SAP Americas (booths 208, 210)
http://www.sap.com/usa/index.epx

ScanMarket North America, Inc. (booth 111)
/https://www.scanmarket.com/home/procurement.asp

Schneider Logistics (booth 744)
http://www.schneiderlogistics.com/

SciQuest (booths 227, 229)
http://www.sciquest.com/

Sorcity Strategic Sourcing Services (booth 611)
http://www.sorcity.com/

SSC Service Solutions (booth 732)
http://www.sscserv.com/

Staples (booth 209)
http://www.staplescontract.com/

StarCite Inc. (booth 714)
http://www.starcite.com/index.htm

Storeroom Solutions, Inc. (booth 644)
http://www.storeroomsolutions.com/

Strategic Procurement Solutions (booth 629)
http://www.strategicprocurementsolutions.com/

Supply Chain Management Review (booth 240)
http://www.scmr.com/

SupplyFORCE (booth 726)
http://www.supplyforce.com/

Swank Audio Visuals (booth 116)
http://www.swankav.com/

The Ligature (booth 724)
http://www.theligature.com/

The Pasha Group, Relocation Services (booth 127)
http://www.pashagroup.com/

Thermo Fisher Scientific Asset Management Services (booth 338)
http://www.thermofisher.com/global/en/home.asp

ThomasNet (booths 217, 219)
http://www.thomasnet.com/

TradingPartners (booth 443, 445)
http://www.tradingpartners.com/en/index.aspx

Travel Solutions (booth 533)
http://www.ts24.com/

Travelocity Business (booth 409)
http://www.travelocitybusiness.com/

Tri-Pen Management Corp. (booth 216)
http://www.tri-pen.com/

UniGroup Inc. (booth 615)
http://www.unigroupinc.com/

University Alliance (booth 722)

University of San Diego—Supply Chain Management Institute (booth 639)

Upside Software (booth 710)

Verian Technologies (booth 523)

Vinimaya (booth 119)

Volt Workforce Solutions (booth 614)

Wheels (booth 234)

WhyAbe.com (booth 609)

Wiley-Blackwell (booth 243)

Womens Business Enterprise National Council (booth 642)

Zycus Inc. (booth 509)


Blocking and tackling fundamentals essential to a world-class company
Supply management leadership tips

Two workshops on the agenda can help a company get through an uncertain economy: “The Gold Medal: Transforming Supply Management into a World-Class Driver of Corporate Performance” and “Speak Like a CFO, and Get Senior Management’s Attention.” Both sessions are led by Robert A. Rudzki, CEO and president of Greybeard Advisors in Pittsburgh.

Rudzki says he came up with the ideas for the sessions at last year’s ISM conference. “Companies concerned about the economy realize they can’t necessarily rely on raising selling prices as a way to outperform or perform to expectations,” he says. “They’ve come to understand they now have to focus on supply chain efficiency and its total cost.”

To be a world-class competitor, Rudzki says companies have to do an excellent job in a number of disciplines, including some fundamental blocking and tackling such as having the most cost-effective and responsive supply chain.

From his experience (formerly CPO at Bayer), Rudzki says just about 5% of companies are truly world class at supply management. At other companies, top management doesn’t understand or is not aware of the opportunity in supply management. It also doesn’t help that supply management at these companies may be unable to, or uncomfortable with, communicating with the executive suite.

In his sessions, which are inter-related, but standalone, Rudzki provides an understanding of how to approach the topic, how to put together a business case and how to identify elements of a critical road map for transformation.

ISM adds Women’s Executive Supply Management Summit to conference agenda

New to the ISM conference this year is an event developed for women in supply management. The Women’s Executive Supply Management Summit will be held May 6 at 7:45 am (prior to the annual business survey and economic outlook presentation) at the Renaissance Grand Hotel in St. Louis.

The summit features a presentation by Susan Franzen, president of LifeU, Inc., titled "Aligning Employee Contributions for Unstoppable Momentum.”

Immediately following Franzen’s presentation will be an hour of "speed networking” for supply management professionals to meet and greet one another.

Everyone registered to attend the annual conference—women and men—is welcome to attend, and there are no additional fees. Space is limited and summit registrations will be handled on a first-come, first-served basis.

To register, contact Judy Waters at jwaters@ism.ws by April 23.
See also: Women in purchasing: Cracks appear in glass ceiling

Supply management pros to take new credentials exam for first time
CPSM exam augments CPM exam

The conference provides the first opportunity for registered attendees to take the exam for the organization’s new CPSM (Certified Professional in Supply Management) credential, at a reduced rate.

The exam which tests knowledge, skills and abilities needed by professionals to excel in 21st century supply management, will be given on Wednesday, May 7. A CPM (Certified Purchasing Manager) exam and a bridge exam (for qualified CPMs) also will be given during the conference.
The CPSM qualification debuts this year. It recognizes the expanded education, skills and experience required to be successful as a supply management professional.

"The CPSM marks a new and important era in having a qualification in the supply management profession,” says ISM CEO Paul Novak, C.P.M. "Individuals who obtain this qualification will have demonstrated that they possess the knowledge to carry out their work using the highest standards of skills and knowledge.”

For conference attendees not yet ready to take the exam in May but want to know more, there are two workshops on the conference agenda that focus in on general requirements for the CPSM and the bridge exam as well as timelines and results from pilot testing conducted earlier this year.

How to adopt sustainability
Supplier diversity and Green purchasing highlighted

Procurement professionals looking for ways to implement environmentally friendly purchasing practices and add diversity to their supply chain can hear examples of both at sessions on social responsibility for procurement Sunday afternoon and Monday afternoon at the ISM Conference in St. Louis.

Dennis Gawlick, of the Seattle Children’s Hospital, will talk on how apply sustainability to supply management. “Return on investment has to be the central part of these efforts,” he says, and he will use some generic examples to illustrate the point. He’ll also be encouraging the audience to participate in the discussion and offer their own examples.

He’ll also talk about the different standards that companies ask their suppliers to meet for sustainability.

Gawlick says that of all the operating departments within a company it’s purchasing and supply chain management that has to take the lead in sustainability. That’s because the function is involved upstream and downstream in company operations.

He says that there are a lot of simple things companies can do now in the area of environmentally friendly purchasing. “The goal is to get people to think of what they could be doing five or ten years down the line,” he says.

For information on the diversity efforts that are part of sustainability, see: http://www.purchasing.com/article/CA6530078.html?q=gsk

“Green” purchasing takes center stage
Examples of environmentally friendly purchasing

Environmentally friendly purchasing doesn’t have to be excessively costly. In fact, it can be break even. In some cases, companies can even make money when they pursue “Green” buying.

Drew Schramm, vice president of global supply and quality for Herman Miller, Inc., will talk about balancing greenbacks and “Green” purchasing at a special session Monday at the ISM Conference. He has several interesting stories to tell.

The office-furniture maker invested time and resources in learning about the environmental impact of the suppliers of the commodities the company uses in its Aeron chair. One of the key questions purchasing asked was whether the materials used were recyclable at the end of the chair’s life. The only way to know was to find out exactly what chemicals were going into the materials of the chair, which meant going through several tiers of the supply chain.

The design-for-the-environment team had to go to their tier two and three suppliers that provided the injection molding materials and ask to see what specific chemicals went into their formulas. Nearly 200 nondisclosure agreements later, all but two suppliers provided Herman Miller the information it wanted. The company bumped the two suppliers who didn’t comply off its preferred vendor list.

Of course, Herman Miller had to convince the rest of its suppliers that it wasn’t going to do any reverse cost analysis with the data it collected. But, once it had the information it could analyze the environmental impact of the supply chain for the chair and determine if any changes were needed.

For more information on Green purchasing, see http://www.purchasing.com/article/CA6513762.html?q=Green


What to see in St. Louis
Gateway Arch leads list of attractions

You’ll get more out of your time at the ISM Conference if you take a little breather from the sessions after the close of the work day and see the sights of St. Louis. There’s plenty to see, so much so that if Lewis and Clark were there today they might decide to hang around rather than take off on their Voyage of Discovery down the Missouri River to find a water route to the Pacific Ocean.

But, of course, they did take off from St. Louis more than 200 years ago. Today, there are museums and walking tours commemorating their exploits.

One of the museums is in the Gateway Arch, symbol of this city on the Mississippi. The 630-foot tall structure is the country’s tallest man-made monument. It’s impressive enough from the outside, but inside is even more interesting. Besides the museum, there is a tram that you can ride all the way to the top of the structure for a beautiful view of the river and the countryside.

When you come back down, you can take a ride on one of the many Gateway Arch riverboats that give one-hour sightseeing tours of the Mississippi.

Other attractions to see: 

- The Anheuser-Busch Center, home of sporting events and other activities. 
- The Beale on Broadway and the hundreds of other jazz and blues clubs. 
- The Bellefontaine Cemetery, burial place of explorer William Clark. 
- The Challenger Learning Center, where there are space-simulation rides. 
- The Winston Churchill Memorial and Museum, honoring England’s Prime Minister during World War 2.

For more information on the city, see: http://www.explorestlouis.com/visitors/see.asp#att