monthly newsletter institute for supply …...education in pursuit of new ideas, new tools, and the...

Message from the President

Where did this year go? I find myself behind in my normal schedule for the year. How can a Sourcing Manager be behind on Sourcing my holiday gifts? I need to set a deadline for myself. Isn’t that how we get all our “work shopping” done on time? Thanks to everyone who came out for the November event featuring Veteran suppliers and our regional economists on the State of the Economy. We will not have a December meeting so you can spend more time shopping and having festivities with your family and friends. We will have a change of venue and a luncheon setting for our January meeting. I hope this event sparks your interest as the subject is Media Buying. So, take a little time away from the office after the holidays, during the ‘long’ month of January, and join us for some good food, networking, and information sharing. The ISM-Kansas City Board is putting the final touches on a survey, consisting of a few short questions. Please take a moment when it lands in your Inbox and provide us your valuable feedback. From me, and the entire ISM-Kansas City Board, we would like to take this opportunity to thank you for your support in 2015 and your continued membership. We also want to wish you and your families very Happy Holidays! We look forward seeing you at our events in 2016. Cheers to a prosperous and exciting New Year! Michelle Burdine C.P.M. ISM-KC President BNSF Railway – Strategic Sourcing Manager

Inside This Issue: 1 Message from the

President

2 Upcoming Events and

Meeting Schedule

3 November Meeting

Highlights

4-5 Upcoming Learning and

Networking Opportunities

6 Available Research from

ISM

7 Marketing News – Join

ISM-KC on Social Media

8 Outreach Committee

News

9 Resume Builder-

Volunteer Opportunities

10 Mission/Vision Statement

11-14 Economic News

15 ISM~KC Board of

Directors **Director-

Marketing Position Open**

MONTHLY NEWSLETTER

Institute for Supply Management – Kansas City, Inc.

December 2015

ISM-KANSAS CITY NEWSLETTER

2015-2016 ISM Kansas City Upcoming Events and Meetings Schedule

The 2015-2016 Program Committee has an amazing line-up of educational events scheduled for the coming months. If you have any program ideas or have knowledge of experts that we can contact, or topics for us to research, please reach out to [email protected]. Below is a list of our upcoming meetings and events: January 19 (11:00am-1:30 pm/2 CEHs) – SCM and social media pre-meeting & MEDIA BUYING

February 16 (11:00am-1:30 pm/2 CEHs) – Diverse supplier pre-meeting & DIVERSITY AT ITS BEST March 15 – National Purchasing Month – TOTAL COST OF OWNERSHIP & TOUR OF CAVES April 19 – HEALTHCARE May 9 – ISM-KC Golf Tournament at WinterStone May 17 – SUSTAINABILITY / ENERGY FOOTPRINT Past speaker presentations may be found on the ISM-KC website under Documents and Files > Documents.

https://www.ism-kansascity.org/insidepages/meetings/details.cfm?meetingid=F2C214B8-C79D-0249-4E13-D8C4FC681403

https://www.ism-kansascity.org/


Highlights of November Dinner Meeting Back by popular demand, Dr. Ernie Goss (Creighton University) and Dr. Michael Stellern (Rockhurst University) entertained the group with their economic prowess. We appreciate their continued dedication to our local chapter, and willingness to share their knowledge and thoughts on current issues affecting our local, regional, and national economy. NOTE: Members who could not attend the dinner meeting, feel free to view their presentations, which have been posted on our website.

Below, Dr. Michael Stellern shares his thoughts on current economic issues.

Left, Dr. Ernie Goss shares the latest news and trends on the Mid-America Economy with guests at the November Dinner Meeting.


Upcoming Institute for Supply Management

National Events

As corporate travel and entertainment costs soar for most organizations, the reporting structure between procurement and travel management is aligning. More and more Travel Managers now have obligations to know and understand procurement reporting and KPIs in relation to travel.

How prepared are you for this organizational change and shift in

responsibilities?

Join ISM, the acknowledged leader in procurement education, at its first T&E Conference March 30 – April 1, 2016. Hear from Peter Greenberg, Travel Editor for CBS News, and other procurement experts as they navigate through the current state of T&E purchasing and management as well as what is on the horizon.

http://www.mmsend47.com/link.cfm?r=140316788&sid=85635405&m=11545867&u=ISM_&j=31179932&s=https://www.instituteforsupplymanagement.org/te


Global Procurement Tech Summit 2016

Location: Baltimore Marriott Waterfront 700 Aliceanna Street Baltimore, MD 21202 Date: March 14-16, 2016

Add to Calendar Download

Global Procurement Tech Summit Presented by ISM and Spend Matters™

The supply management world is constantly changing and you can’t afford to get left behind. Modern procurement organizations and the technology they use will take center stage for two days of open discussions blended with expert research, commentary and analysis.

E-mail Paul Lee ([email protected]) for more information. List Price: $1,195.00 USD Member Price: $595.00 USD


Knowledge is Success - Interested in learning more? ISM Research provides insights into the interests and behaviors of your stakeholders, customers and prospects through personalized research, allowing you to make more effective purchasing decisions. Qualitative and quantitative research through focus groups, interviews and surveys are translated and delivered in white papers, webinars or discussed at ISM's Annual Conference. ISM Research enables you to understand your current and potential customers and helps better align your business goals to direct results. Below are some examples of ISM Survey Research currently available on the ISM website.

https://www.instituteforsupplymanagement.org/content.cfm?ItemNumber=7814


ISM-Kansas City Marketing News

0


ISM-Kansas City Outreach Committee

In addition to the Outreach Committee’s unchanging traditional focus on Supplier Diversity education and professional development, we have started to expand opportunities for networking and professional development with organizations and businesses that share similar goals to ISM-Kansas City. November was a very active month for the Outreach Committee in both of those areas. Since November is the month in which we remember and commemorate Veterans Day, we were delighted to highlight two local veteran-owned businesses during our November 17th pre-meeting.

Both presentations are available for members on the ISM-KC website (www.ism-kansascity.org).

As a reminder, if you have not done so already, we are asking all of our members with military service to self- identify. If you are a veteran, ISM-Kansas City would like to recognize you for your service! Please email [email protected] with your branch of service, and the number of years you served. In November, we also kicked off our organizational outreach with a conference call attended by three area partnering organizations; Council of Supply Chain Management Professionals (CSCMP), International Trade Council – Kansas City (ITCKC), and KCI Regional Air Cargo Association (KCIRACA). All three organizations were eager to explore joint opportunities and we agreed to establish quarterly calls. In addition to these three, we have identified several additional potential organizations with whom we hope to expand this initiative. More information will follow as we better develop these new contacts. Co-Chairs of the ISM-Kansas City Outreach Committee Donna Brozoski- Kansas City Power & Light Manny Gutierrez- Waddell & Reed Ted Lockwood - Sprint

John Walker, Jr. presented an overview of his company Perfect Output, LLC. Perfect Output is a Minority Business Enterprise, international in scope, based in the Kansas City metropolitan area. They are a provider of solutions to address business needs in the realm of Managed Print Strategy (MPS) and document management. John served in the United States Army Reserves for six years and is a proud veteran of this great country.

Joseph (Rosey) Rosenberger presented an overview of his veteran owned company Process Triage. ProcessTriage® is a consulting company serving C-Suite leaders in need of emergency or very urgent intervention related to business process failure or at-risk performance. Similar to battlefield medical injuries, ProcessTriage® facilitates team-in-crisis immersion workshops that triage a business process points-of-pain into a sized and ranked list of action items and projects to implement immediately, to set the process and its team on a path toward recovery and sustained performance.


We invite you to get involved with ISM-Kansas City by attending the meetings and becoming a committee member. The committees listed below provide opportunities for you to participate, and during the nine months we meet, members generally spend less than 2 hours per month! That’s immediate return on investment for the networking and leadership skills that result from your participation. Where is your passion or desire to learn? No experience required! You will find the work rewarding and fun. Please let Michelle Burdine know if you are interested ([email protected] or 913-577-5537).

Standing Committees

Communication –Besides the managing the website, this group is responsible for sending monthly

communications to the membership, and publishing the newsletter.

Outreach –While all of the committees work together cross-functionally as needed, this committee has the

broadest of responsibilities to find outside opportunities that will bring value to our membership by reaching out

to the Diversity council and other professional organizations in Kansas City. Their efforts will bring information

and programs to our membership.

Education –This committee has the charge to plan and roll-out larger seminars, such as the CPSM study

course, and manage the scholarship program. April is ISM Awareness month.

Marketing –The Marketing Committee identifies and takes advantage of opportunities for corporate, university

and student outreach. This includes social media and attending events to raise awareness about ISM-Kansas

City. We are currently seeking committee members and a new marketing director!

Membership –This team takes care of membership campaigns, new member orientations and membership

renewals.

Nominating –Become familiar with those who can take an active interest in ISM-Kansas City.

Programs –Programs for membership meetings are held January through May and August through

November. The committee is responsible for identifying speakers, tours and the logistics associated with those

meetings.

Special Events (Golf) –Some of the events are larger in nature and require a dedicated team to drive. In this case, we have a Golf Committee that is responsible for giving oversight to this annual fund-raising event.


Vision ISM-Kansas City provides a forum for networking and continuing education in pursuit of new ideas, new tools, and the evolution of purchasing and supply management. ISM-Kansas City functions as a resource and advocates for purchasing and supply management professionals in the region and as a resource to the business community.

Mission Members of ISM-KC, Inc. are recognized as world class supply chain professionals. ISM-KC serves as a center of excellence in establishing and maintaining best-in-class professional standards of competency and ethical conduct. Revision and approval date: September 24, 2015 by Michelle Burdine, President


Mid-America Business Conditions Weaken Again: Strong Dollar Hurts Manufacturing November Survey Results at a Glance: * For a fourth straight month, the region’s overall index moved below growth neutral.

* Employment index plummets below growth neutral for a third consecutive month.

* Region is losing manufacturing jobs at twice the pace of the nation.

* Manufacturing, agriculture and energy pullbacks have yet to spill over into the broader economy.

* Only 18.2 percent expect negative impacts from a December Federal Reserve rate hike.

OMAHA, Neb. (Dec. 1, 2015) – The Creighton University Mid-America Business Conditions Index

for November, a leading economic indicator for a nine-state region stretching from Arkansas to North

Dakota, slumped for the month.

Overall index: The November Business Conditions Index, which ranges between 0 and 100, slumped

to 40.7 from October’s 41.9. The regional index, much like the national reading, is impacted by a

reduction in manufacturing activity, especially for producers linked to international markets.

“Since our survey oversamples manufacturing firms, it is not surprising that our overall index has

weakened significantly for states and industries heavily dependent on agriculture and energy which are

being hammered by a strong U.S. dollar. I expect the national reading to come in below growth neutral

when it is released later this morning,” said Ernie Goss, Ph.D., director of Creighton University’s

Institute for Economic Inquiry and the Jack A. MacAllister Chair in Regional Economics in the Heider

College of Business.

The strong U.S. dollar and global economic weakness are having a significant and negative impact on

manufacturers and businesses linked to manufacturing in the region. This weakness has been showing

up in the Mid-America surveys over the last four months, but has yet to spill over into the broader

regional economy.

Employment: The regional employment gauge slumped for November, and indicates job losses for the

manufacturing and value added services sectors. The job gauge declined to 41.7 from 42.3 in October.

“Over the past year, the region has lost approximately 1.1 percent of its manufacturing jobs. This pace

of job loss is roughly twice that of U.S. manufacturing, which is likewise shedding jobs. Areas heavily

dependent on manufacturing, especially those linked to exports, agriculture and energy, are

experiencing the largest losses,” said Goss.

Wholesale Prices: The wholesale inflation index for November fell to 42.6, its lowest level since May

2009, and down from October’s 45.3. “Even though our survey indicates recent deflation at the

wholesale level, supply managers expect prices of goods and services they purchase to rise at an annual

pace of 4 percent in the months ahead,” said Goss.


While 18.2 percent of purchasing managers expect negative impacts from a December Federal Reserve

rate hike, about 82 percent say it won’t have a negative impact and could potentially have a positive

impact on their business.

Confidence: Looking ahead six months, economic optimism, as captured by the November business

confidence index, sank to 41.2 from 42.3 in October. “Falling agriculture and energy commodity

prices, along with global economic uncertainty, pushed supply managers’ expectations of future

economic conditions lower for the month. Over the past 12 months, farm products and energy prices

have fallen by 13.6 percent and 22.9 percent, respectively,” said Goss.

Inventories: In another sign of a sinking economic outlook, supply managers reduced their inventory

levels for the month. The November inventory index, which tracks the change in the level of raw

materials and supplies, fell to 39.2 from 41.2 in October.

Trade: The new export orders dropped for the month, but at a bit slower pace as the index increased to

a very weak 39.5 from 38.2 in October. The import index for November slumped to 37.0 from

October’s 40.9. “The strong U.S. dollar, making U.S. goods less competitively priced abroad, and a

weaker global economy, battered new export orders for the month. On the other hand, negative

regional manufacturing growth and lower oil prices again pushed the import index below growth

neutral for the month,” said Goss.

Other components: Components of the November Business Conditions Index were new orders at

34.2, down from 38.1 in October; production or sales moved lower to 36.2 from October’s 38.7; and

delivery speed of raw materials and supplies advanced to 52.4 from last month’s 49.3.

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 Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota,

Oklahoma and South Dakota.

The forecasting group’s 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. The Business Conditions Index is a mathematical average of indices for new orders,

production or sales, employment, inventories and delivery lead time. This is the same methodology

used by the National Institute for Supply Management, formerly the Purchasing Management

Association, since 1931.


Arkansas: Arkansas’ November overall index, or leading economic indicator, sank to 42.1 from

October’s 43.6. Components of the index from the monthly survey of supply managers were new

orders at 35.3, production or sales at 37.4, delivery lead time at 54.1, inventories at 40.5, and

employment at 43.1. “U.S. Bureau of Labor Statistics data show that over the last 12 months, Arkansas

lost 4,000 manufacturing jobs. Our surveys of supply managers in the state indicate these losses will

continue into the first quarter of 2016,” said Goss.

Iowa: The November Business Conditions Index for Iowa declined to 42.3 from 44.2 in October.

Components of the index from the monthly survey of supply managers were new orders at 35.5,

production or sales at 37.6, delivery lead time at 54.4, employment at 43.3, and inventories at 40.7.

“U.S. Bureau of Labor Statistics data show that over the last 12 months, Iowa lost 1,300 manufacturing

jobs. Our surveys of supply managers in the state indicate this trend will continue into the first quarter

of 2016,” said Goss.

Kansas: The Kansas Business Conditions Index for November rose to a weak 42.6 from October’s

41.7. Components of the leading economic indicator from the monthly survey of supply managers were

new orders at 35.8, production or sales at 37.9, delivery lead time at 54.8, employment at 43.6, and

inventories at 41.0. “U.S. Bureau of Labor Statistics data show that since January of this year, Kansas

lost 2,000 manufacturing jobs. Our surveys of supply managers in the state indicate these losses will

continue into the first quarter of 2016,” said Goss.

Minnesota: The November Minnesota Business Conditions Index slumped to 41.1 from October’s

42.7. Components of the index from the monthly survey of supply managers were new orders at 34.5,

production or sales at 36.5, delivery lead time at 52.8, inventories at 39.5, and employment at 42.0.

“U.S. Bureau of Labor Statistics data show that over the last 12 months, Minnesota lost 800

manufacturing jobs. Our surveys of supply managers in the state point to slight losses into the first

quarter of 2016 as manufacturing exports slide even lower,” said Goss.

Missouri: The Business Conditions Index for Missouri slumped to 41.9 from October’s 50.1.

Components of the index from the survey of supply managers were new orders at 45.6, production or

sales at 39.5, delivery lead time at 41.4, inventories at 43.2, and employment at 42.0. “U.S. Bureau of

Labor Statistics data show that over the last 12 months, Missouri added 3,000 vehicle manufacturing

jobs, but lost 1,400 manufacturing jobs outside of vehicle production. I expect slight manufacturing

losses into the first quarter of 2016,” said Goss.

Nebraska: Nebraska’s Business Conditions Index fell below 50.0 for the fifth straight month. The

index, a leading economic indicator from a monthly survey of supply managers, increased to 43.6 from

40.1 in October. Components of the index were new orders at 35.0, production or sales at 38.5,

delivery lead time at 49.0, inventories at 40.9, and employment at 42.1. “U.S. Bureau of Labor

Statistics data show that over the last 12 months, Nebraska lost 2,500 manufacturing jobs. Our surveys

of supply managers indicate these losses will continue into the first quarter of 2016,” said Goss.


North Dakota: North Dakota’s leading economic indicator for November remained below growth

neutral 50.0. The Business Conditions Index increased slightly to a regional low 36.9 from November’s

36.7, also a regional low. Components of the overall index from the monthly survey of supply

managers were new orders at 31.0, production or sales at 32.8, delivery lead time at 47.5, employment

at 37.8, and inventories at 35.5. “U.S. Bureau of Labor Statistics data show that over the last 12

months, North Dakota lost 300 manufacturing jobs. Our surveys of supply managers indicate these

losses will widen into the first quarter of 2016 as manufacturing linked to agriculture and energy

sustain losses,” said Goss.

Oklahoma: The November Business Conditions Index for Oklahoma slumped below growth neutral

for a seventh straight month. The index from a monthly survey of supply managers in the state fell to

37.5 from 40.1 in October. Components of the November survey of supply managers were new orders

at 33.2, production or sales at 37.0, delivery lead time at 43.2, inventories at 39.8, and employment at

42.3. “U.S. Bureau of Labor Statistics data show that over the last 12 months, Oklahoma has lost 9,000

manufacturing jobs. Our surveys of supply managers indicate these losses will continue into the first

quarter of 2016 as lower energy prices weigh on Oklahoma’s economy and manufacturing,” said Goss.

South Dakota: For a second consecutive month, South Dakota’s leading economic indicator fell below

growth neutral 50.0. The Business Conditions Index, from a monthly survey of supply managers,

declined to 39.6 from 42.6 in October. Components of the overall index for November were new orders

at 33.3, production or sales at 35.2, delivery lead time at 50.9, inventories at 38.1, and employment at

40.5. “U.S. Bureau of Labor Statistics data show that over the last 12 months South Dakota added 900

manufacturing jobs. However, surveys over the last two months point to manufacturing losses through

the first quarter of 2016,” said Goss.

Survey results for December will be released on the first business day of next month, Jan. 4.