monthly newsletter institute for supply management ... · 4-5 golf tournament hghlii ghts 6 cpsm...

15
Message from the President May was full of excitement at ISM-Kansas City. We thanked our 2014-2015 Board Members and Officers for their commitment and time to the membership. And simultaneously, we welcomed our new slate of Board Members for 2015-2016. I have told my new board to strap on their boots because we are going to make some changes and do some new things this coming year. My new board has great energy and passion for what we do as professionals, and they want to put that into action to benefit our members. As in previous years, there will be no membership meetings June through August. The Board will have an all-day Strategic Planning Workshop in June to create some new and exciting events that will run from September through May of 2016. Look for upcoming communications this summer. Our May program featured Dr. Cheryl McConnell from Rockhurst University. She presented case studies on how men and women managers assess performance on the men and women that work for them. We learned from Dr. McConnell that performance appraisals indicate a gender bias against females, in comparison to their male peers, when evaluating the same behavior and performance. What was enlightening is when she showed that the bias was present in both the male and female manager reviews. ‘Food for thought’ if you manage people. The first annual ISM-Kansas City Golf Tournament was a success. Thank you to the sponsors, golfers, and committee volunteers that made it so much fun. ISM-Kansas City raised over $3500 to be added to the general fund for future educational events and scholarships. GREAT JOB! Thank you to Roxanna Swaney for serving as our President and for your continued role as ‘advisor’ for my journey through the upcoming year!! I would also like to thank Jim Marinakis, who will be stepping off the board, but has served in many roles and capacities and created much success for this chapter. The words “Thank You” do not seem like enough when I write them. I acknowledge the hard work and talent of our volunteers and board members with this: “Those who can, do. Those who can do more, volunteer.” Author Unknown. I look forward to meeting all the members in the upcoming year. Bring on the SUN! Michelle Burdine C.P.M. BNSF Railway ISM-Kansas City President Inside This Issue: 1 Message from the President 2-3 May Dinner Meeting Highlights 4-5 Golf Tournament Highlights 6 CPSM Study Session 7 Article – Next Big Trends in Supply Chain Risk Management 8 ISM Membership Options 9-10 Upcoming Web Seminar 11 Diversity Corner 12 Volunteers Needed 13-14 Economic Outlook 15 ISM~KC Board of Directors MONTHLY NEWSLETTER Institute for Supply Management – Kansas City, Inc. June 2015

Upload: others

Post on 09-Aug-2020

0 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: MONTHLY NEWSLETTER Institute for Supply Management ... · 4-5 Golf Tournament Hghlii ghts 6 CPSM Study Session 7 Article – Next Big Trends in Supply Chain Risk Management 8 ISM

Message from the President

May was full of excitement at ISM-Kansas City. We thanked our 2014-2015 Board Members and Officers for their commitment and time to the membership. And simultaneously, we welcomed our new slate of Board Members for 2015-2016. I have told my new board to strap on their boots because we are going to make some changes and do some new things this coming year. My new board has great energy and passion for what we do as professionals, and they want to put that into action to benefit our members. As in previous years, there will be no membership meetings June through August. The Board will have an all-day Strategic Planning Workshop in June to create some new and exciting events that will run from September through May of 2016. Look for upcoming communications this summer. Our May program featured Dr. Cheryl McConnell from Rockhurst University. She presented case studies on how men and women managers assess performance on the men and women that work for them. We learned from Dr. McConnell that performance appraisals indicate a gender bias against females,in comparison to their male peers, when evaluating the same behavior and performance. What was enlightening is when she showed that the bias was present in both the male and female manager reviews. ‘Food for thought’ if you manage people. The first annual ISM-Kansas City Golf Tournament was a success. Thank you to the sponsors, golfers, and committee volunteers that made it so much fun. ISM-Kansas City raised over $3500 to be added to the general fund for future educational events and scholarships. GREAT JOB! Thank you to Roxanna Swaney for serving as our President and for your continued role as ‘advisor’ for my journey through the upcoming year!! I would also like to thank Jim Marinakis, who will be stepping off the board, but has served in many roles and capacities and created much success for this chapter. The words “Thank You” do not seem like enough when I write them. I acknowledge the hard work and talent of our volunteers and board members with this: “Those who can, do. Those who can do more, volunteer.” Author Unknown. I look forward to meeting all the members in the upcoming year. Bring on the SUN! Michelle Burdine C.P.M. BNSF Railway ISM-Kansas City President

Inside This Issue:

1 Message from the

President

2-3 May Dinner Meeting Highlights

4-5 Golf Tournament Highlights

6 CPSM Study Session

7 Article – Next Big Trends in Supply Chain Risk Management

8 ISM Membership Options

9-10 Upcoming Web Seminar

11 Diversity Corner

12 Volunteers Needed 13-14 Economic Outlook 15 ISM~KC Board of

Directors

MONTHLY NEWSLETTER

Institute for Supply Management – Kansas City, Inc.

June 2015

Page 2: MONTHLY NEWSLETTER Institute for Supply Management ... · 4-5 Golf Tournament Hghlii ghts 6 CPSM Study Session 7 Article – Next Big Trends in Supply Chain Risk Management 8 ISM

PAGE 2 ISM-KANSAS CITY NEWSLETTER

May Dinner Meeting Highlights Below are the ISM-Kansas City 2015-2016 Board and Committee Directors who were ‘sworn in’ during the May Dinner meeting. Feel free to reach out to anyone below to volunteer your time and/or talent to help make our chapter the ‘best it can be’!! Left to right (top photo): Joel Johnson (Treasurer), Esmeralda Phillips (2nd Vice President), Penny Wilson-King (1st Vice President), Roxanna Swaney (Past President), and Michelle Burdine (President). Not Pictured: JoAnn Harper (Secretary). Left to right (bottom photo): Mary Hunter (Director Programs), Samantha Rogers (Co-Director Communications), Donna Brozoski (Co-Director Diversity), Manny Gutierrez (Co-Director Diversity), Susan Wright (Director Membership), JennyLyn Jensen (Director Marketing). Not Pictured: Joe Steve (Director Education) and Sue Madrid (Co-Director Communications).

Page 3: MONTHLY NEWSLETTER Institute for Supply Management ... · 4-5 Golf Tournament Hghlii ghts 6 CPSM Study Session 7 Article – Next Big Trends in Supply Chain Risk Management 8 ISM

PAGE 3 ISM-KANSAS CITY NEWSLETTER

May Dinner Meeting Highlights (continued)

The attendees of our May dinner meeting were able to witness the ‘changing of the guard’ for ISM-Kansas City’s 2015-2016 Board and Committee members.

Our thanks to Dr. Cheryl McConnell who provided some enlightening information at the May Dinner meeting regarding research on ‘Women at Work: Same Behavior – Different Consequences”. The data reveals a gender bias toward women when being evaluated for performance and the resulting consequences. If you manage people, this information may provide some insight into gender differences when assessing performance of your staff. ISM-Kansas City members may view Dr. McConnell’s presentation on our website (www.ism-kansascity.org).

Page 4: MONTHLY NEWSLETTER Institute for Supply Management ... · 4-5 Golf Tournament Hghlii ghts 6 CPSM Study Session 7 Article – Next Big Trends in Supply Chain Risk Management 8 ISM

PAGE 4 ISM-KANSAS CITY NEWSLETTER

ISM-Kansas City’s 1st Annual Golf Tournament Highlights

Beauty Is in the Eye of the Golfer! Twenty-four golfers and six sponsors stepped up and onto the greens on Tuesday, May 12, 2015 at WinterStone Golf Course. What a beautiful day! It was sunny, warm with a nice breeze and worth every minute in the fresh air! The Annual ISM-Kansas City golf tournament generated about $3500 for the scholarship and training programs. ISM-Kansas City would like to give special recognition to the sponsors – American Trailer & Storage, Blue Springs Truck Lines, Cable Connectors & Supply, Lantro Vision, Sprint and tii. We also thank those who contributed door prizes and promotional items – Mary Hunter, BNSF, CenturyLink, Charles Industries, Lantro Vision, Sprint and Suttle4 Solutions. Volunteers who took time out from work were Jim Marinakis and Michelle Burdine.

Page 5: MONTHLY NEWSLETTER Institute for Supply Management ... · 4-5 Golf Tournament Hghlii ghts 6 CPSM Study Session 7 Article – Next Big Trends in Supply Chain Risk Management 8 ISM

PAGE 5 ISM-KANSAS CITY NEWSLETTER

WinterStone provided a beautiful and well-maintained setting, and we enjoyed grilled burgers and brats from the expert hands of the golf professional!! Feedback from the golfers was very positive and we’ve made plans to have next year’s golf tournament at WinterStone on Monday, May 9, 2016. Let [email protected] know if you want to be added to the meeting maker. We already have one sponsor who has signed up! Thanks, Technology Group Solutions, LLC – we can’t wait!

Great people, great place, great fun…an all-around great day! Let us know if you can join the fun next year. The 2015 ISM-KC Golf Committee JennyLyn Jensen, Helzberg Diamonds Marcia Boedeker, Sprint Marsha Baker, CenturyLink Michael Colbert, Ash Grove Cement Roxanna Swaney, CenturyLink

Page 6: MONTHLY NEWSLETTER Institute for Supply Management ... · 4-5 Golf Tournament Hghlii ghts 6 CPSM Study Session 7 Article – Next Big Trends in Supply Chain Risk Management 8 ISM

PAGE 6 ISM-KANSAS CITY NEWSLETTER

ISM-Kansas City Education Committee Are you interested in obtaining your CPSM? Class begins on 8/18/2015. Sign up is available on the Johnson County Community College website (see below).

Page 7: MONTHLY NEWSLETTER Institute for Supply Management ... · 4-5 Golf Tournament Hghlii ghts 6 CPSM Study Session 7 Article – Next Big Trends in Supply Chain Risk Management 8 ISM

PAGE 7 ISM-KANSAS CITY NEWSLETTER

What’s the Next Big Trend in Logistics and Are They Helping Address Supply Chain Risk Management (SCRM) in their Strategies? By Michelle Burdine C.P.M. Manager Strategic Sourcing, BNSF Railway Transportation has come a long way over the last few decades but not far enough in my opinion. Companies are focusing on fleet optimization and delivery tracking for last mile fulfillment. Last mile fulfillment must ensure that the final delivery is efficient. I recently used UBER to go from my hotel to dinner and I was able to track the vehicle coming to pick me up at the hotel. I knew exactly how long it would take the driver to reach me and I was able to contact the driver to let him know about streets shut down around the hotel which raised a risk of him not arriving on time. Wouldn’t it be wonderful to have an app in our Supply Chain world to track all of our material deliveries? Some might say that we have some form of this today but it is not as simple as opening an app and finding the location of your material. Today, you can pay extra freight costs and be notified that your delivery is in route, require a signature upon delivery, and even get a shipment tracking status update in hourly intervals. All of this is helpful but very costly and it still relies on appropriate human behavior to make sure all of the steps and notifications are completed in the absence of GPS tracking. Have you asked yourself, what are the risks in only focusing on the last mile? Can I afford to only assess risk on the transportation of material from my warehouse to the final delivery location? Focusing on just the last stretch of the last mile can be short sighted and leave your company open to elevated supply chain risks. When your customer or stakeholder asks you why their material or order is late where do you dig in to find the answer? It is easy to blame it on the last mile which typically only involves transportation. But you must start earlier in the supply chain. Any final delivery starts way upstream. Follow the transaction backwards up the supply chain to root out the areas of risk. You may need to not only review your company rules of fulfillment and warehouse management systems but you may have to go further upstream to your supplier or manufacturer’s supply chain and systems. If the start and duration of the material process is not in line to deliver material to your desired request date then you have to adjust your ordering lead times. The lead times often do not consider the transportation and delivery time which cannot be overlooked to be successful. To be successful you must have rules for your fulfillment. The rules for fulfillment have to span across all systems including order management, warehouse management, and transportation management functionality. This will ensure that all areas are covered in your risk management plan. 

Page 8: MONTHLY NEWSLETTER Institute for Supply Management ... · 4-5 Golf Tournament Hghlii ghts 6 CPSM Study Session 7 Article – Next Big Trends in Supply Chain Risk Management 8 ISM

PAGE 8 ISM-KANSAS CITY NEWSLETTER

ISM-Kansas City Membership Did you know there are two options available?

We welcome membership from suppliers, buyers, or other supply chain professionals. Joining online is easy! www.ism-kansascity.org

Page 9: MONTHLY NEWSLETTER Institute for Supply Management ... · 4-5 Golf Tournament Hghlii ghts 6 CPSM Study Session 7 Article – Next Big Trends in Supply Chain Risk Management 8 ISM

PAGE 9 ISM-KANSAS CITY NEWSLETTER

Free Upcoming Web Seminar – ‘Buy Everything as a Service’

(brought to you by the ISM Indirect/Services Group)

Date: Thursday, June 18, 2015 Time: 2:00 PM Eastern Daylight Time (1:00 PM Central Daylight, 12:00 PM Mountain Daylight,

11:00 AM Pacific Daylight/Mountain Standard Time) Duration: One (1) Hour; Continuing Education Credit will be given to those who register and attend Presenters: Pierre Mitchell, Chief Research Officer, Spend Matters and Mark Trowbridge, Principal,

Strategic Procurement Solutions, LLC Registration Closes: 12:00 PM (Eastern Daylight time) on Thursday, June 18, 2015

In an increasingly services-based economy, supply management organizations should stay on top of the latest XaaS (everything as a service) trends that are increasingly having an impact on their organizations and ultimately their commercial relationships and agreements. The following topics will be discussed in this web seminar:

· XaaS elements beyond SaaS (cloud software), including Platform as a Service (PaaS), Infrastructure as a Service (IaaS), and Business Processes as a Services (BPaaS)

· The impact of services on Procurement (e.g., contingent labor, supplier networks, etc.) · Contracting factors and trends to consider: shifting to outcomes/SOWs; TCO factors in

SaaS; data confidentiality; service level complexity; ownership and continued use of data; transition services; etc.

· Revised cost drivers which favor the supplier; including subscription based pricing, term renewals, sustainable revenues, escalating data storage requirements, etc.

We will feature the following two guest speakers who'll bring both Procurement practitioner expertise and IT/Services background to the session.

Pierre Mitchell, leads procurement research and broader IP development across the Spend Matters Network of online business communities. He has 25 years of industry and consulting experience within Procurement and Supply Chain and is a recognized procurement expert specializing in supply processes, practices, metrics, and enabling tools and services.

In 1999, he became the first Procurement "industry analyst" (AMR Research - now Gartner) before joining The Hackett Group in 2004 to launch its CPO advisory program – and finally returned back to his role as industry analyst, advocate, evangelist, and advisor. He is a regular contributor to business publications, a frequent presenter at industry events around the world, and counts himself fortunate to have served and interacted with so many CPOs and future CPOs.

Prior to his positions in research and advisory, he led numerous operations and systems transformations at Fortune 500 organizations. Industry positions include manufacturing project manager at The Timberland Company, materials manager at Krupp Companies and engineer at EG&G Torque Systems. He holds an engineering degree from Southern Methodist University and an MBA from the University of Chicago.

Mark Trowbridge, CPSM, C.P.M, MCIPS has worked in procurement leadership roles for nearly 30 years. His corporate career began as a Buyer for the third-largest global builder of pleasure yachts and continued with roles at Delta Airlines, the world's largest airline and then through a series of financial services enterprises. His final corporate position led three-quarters of strategic sourcing and all contracts management for Bank of America. During his final two years with that company, Mark's areas of responsibility generated more than a Quarter Billion in cost benefits for the enterprise's global operations.

Page 10: MONTHLY NEWSLETTER Institute for Supply Management ... · 4-5 Golf Tournament Hghlii ghts 6 CPSM Study Session 7 Article – Next Big Trends in Supply Chain Risk Management 8 ISM

PAGE 10 ISM-KANSAS CITY NEWSLETTER

Mark's career progressed as he entered the consulting arena, with roles in two SCM consultancies before co-founding Strategic Procurement Solutions, LLC (www.StrategicProcurementSolutions.com) in 1999. During subsequent years, his firm has been privileged to work with many clients, including Apple, Intel, Delphi, Kraft Foods, Allstate, Nationwide, BP, State of Oregon, Colgate-Palmolive, MetLife, State of Minnesota, Commonwealth of Massachusetts, Constellation Energy, Blue Shield Association, Vision Service Plan, State of Colorado, Volvo North America, SanDisk, Adobe Systems, Sybase, Cooper Tire & Rubber, Fireman's Fund Insurance, Limited Brands, Sterling Jewelers, HollyFrontier, Canadian Ministry of Health, etc.

This will be a streaming-only presentation. You will listen to the presentation through your computer, using either the speakers or a headset. You will be able to ask questions by typing them in the appropriate field during the presentation.

Registration

To register, please click on https://attendee.gotowebinar.com/register/9149605068271593985; if prompted to do so, please enter webinar ID Number: 141-966-891.

When you receive your confirmation from Gotowebinar, you will see that there are two phone numbers provided along with the link to attend the event. The numbers are reserved for the presenter and facilitator. Attendees use their computers to hear the presentation. When you have logged in on the day of the event, please check the "Control Panel" on the screen and make sure that the radio button labeled "Mic & Speakers" is selected.

If you have any questions, please contact Lolita Jenkins in the ISM Membership department, at [email protected].

NOTE:

Trouble viewing website for ISM National? Their website (https://www.instituteforsupplymanagement.org/) has recently undergone an upgrade and is best accessed through Internet Explorer 10, 11 & Mozilla Firefox & Google Chrome. As another option, you may also view the website from a personal phone, tablet or computer where you are able to update or download one of the compatible browsers. We are attempting to secure access to our site when using IE9 and appreciate your patience until this action is complete.

Page 11: MONTHLY NEWSLETTER Institute for Supply Management ... · 4-5 Golf Tournament Hghlii ghts 6 CPSM Study Session 7 Article – Next Big Trends in Supply Chain Risk Management 8 ISM

PAGE 11 ISM-KANSAS CITY NEWSLETTER

ISM-Kansas City Diversity Committee  

Supplier Diversity as easy as 1, 2, and 3

The most successful corporations today manage and operate Supplier Diversity Programs. They utilize woman owned, veteran and minority suppliers to meet their day to day operational needs. So what are diverse suppliers? They are businesses that are at least 51% controlled, operated and owned by minorities, women, or veterans to name a few categories. They can also be small businesses or businesses located in economically distressed areas. Supplier Diversity Programs provide these under-represented businesses an opportunity to showcase their company’s capabilities. It may open doors and ultimately assists them and the community which benefits everyone.

If your company does not currently manage a Supplier Diversity Program you can establish one as easy as 1, 2, and 3. First, determine what diverse suppliers you currently utilize, how much you spend with them, and in what diverse category they fall.

Next, monitoring your diverse spend is essential so you can track the growth of your program. I suggest creating a simple spreadsheet or a custom report if you have that capability.

Lastly, I would recommend you verify the certification of each business on your list to ensure they are actually diverse. Some companies are able to self-certify and that leaves room for error. Here are some recognized organizations you can authenticate certifications with:

The National Supplier Diversity Council Mid-America Minority Business Development Council The City of Kansas City, Missouri State of Missouri State of Kansas U.S. Small Business Administration There are also third party companies that will verify certification for you.

Co-Chairs of the ISM-KC Diversity Committee Donna Brozoski- Kansas City Power & Light Manny Gutierrez- Waddell & Reed

Page 12: MONTHLY NEWSLETTER Institute for Supply Management ... · 4-5 Golf Tournament Hghlii ghts 6 CPSM Study Session 7 Article – Next Big Trends in Supply Chain Risk Management 8 ISM

PAGE 12 ISM-KANSAS CITY NEWSLETTER

We invite you to get involved with ISM-Kansas City by attending the meetings and being a committee member. We have several committees for you to review. Committee work during the nine months we meet, usually takes less than 2 hours per month! That an immediate return on investment for the networking and leadership skills that you acquire. Where is your passion or desire to learn? No experience required! You will find the work rewarding and fun. Please let Roxanna Swaney know if you are interested. Standing Committees: Communication –Besides the managing the website, this group is responsible for sending monthly communications to the membership, and publishing the newsletter. Diversity –While all of the committees work together cross-functionally as needed, this committee has the broadest of responsibilities to find diversity opportunities –diversity in businesses, thought and processes. October is ISM-Kansas City diversity month. 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. 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.

Page 13: MONTHLY NEWSLETTER Institute for Supply Management ... · 4-5 Golf Tournament Hghlii ghts 6 CPSM Study Session 7 Article – Next Big Trends in Supply Chain Risk Management 8 ISM

PAGE 13 ISM-KANSAS CITY NEWSLETTER

Mid-American States Economic Outlook (Creighton University – Institute for Economic Inquiry)

Slower Growth Ahead for Mid-American Region: Job Losses For May

May survey results at a glance:

* Leading economic indicator drops to a weak reading. * Hiring gauge remains below growth neutral. * Inflation reading jumps to its highest level in the past 12 months. * Over the next year, supply managers expect prices of goods and services purchased by their firm to expand by a strong 3.8 percent. OMAHA, Neb. (June1, 2015) – The Creighton University Mid-America Business Conditions Index for May, a leading economic indicator for a nine-state region stretching from North Dakota to Arkansas, fell from April’s reading. Indices over the past several months are pointing to positive but slow economic growth over the next three to six months for the region. Overall index: The Business Conditions Index, which ranges between 0 and 100, slumped to 50.4 from April’s tepid 52.7. The regional index, much like the national reading, is pointing to positive but slow growth through the third quarter of 2015. “Firms linked to energy and agriculture are experiencing pullbacks in economic activity. Job growth in Oklahoma and North Dakota, two energy-producing states, has moved into negative territory,” said Ernie Goss, Ph.D., director of Creighton University’s Economic Forecasting Group and the Jack A. MacAllister Chair in Regional Economics in the Heider College of Business. Other states dependent on agriculture are also experiencing slower economic growth. That growth is likely to move even lower in the months ahead as the strong U.S. dollar slows economic activity even more.” Employment: The regional employment gauge remained in a range indicating slightly negative to stagnant job growth for manufacturing and value-added services firms in the region. The job gauge fell to 48.3 from 49.2 in April. “These negative job numbers will spill over into the broader job market in the months ahead,” said Goss. This month, supply managers were asked about the hiring situation at their firms. “Ten percent of supply managers reported an upturn in the number of applicants for each available job. On the other hand, approximately 9 percent of supply managers indicated the shortage of qualified workers increased from last month. The remaining 81 percent indicated no change in the number of applicants to open positions,” said Goss. One supply manager reported, “(We) have dozens of applicants for every opening. Salaries have not changed in years.” Wholesale Prices: The wholesale inflation index for May climbed to 69.1 from 55.5 in April. “Despite a strong U.S. dollar and significantly lower fuel prices, the wholesale inflationary gauge indicates that inflationary pressures are rising, but still remain in a range indicating only moderate inflationary pressures,” said Goss. Over the next year, survey participants expect the prices of products and services purchased by their company to advance by 3.8 percent. “On the other hand, they expect prices for the products and services their companies sell to expand by a much smaller 1.6 percent over the next year,” said Goss. “Our data, along with other government data, signal that inflationary pressures have risen over the last several months. I expect rising inflationary pressures to push the Federal Reserve to begin raising interest rates, even in the face of weak economic growth,” said Goss. Confidence: Looking ahead six months, economic optimism, as captured by the May business confidence index, declined to 58.3 from April’s 61.5. “Weak regional and national growth has pushed supply managers to lower their expectations about future economic conditions,” said Goss. Inventories: The inventory index, which tracks the change in the level of raw materials and supplies, fell to 48.2 from 48.5 in April. Trade: The new export orders index slid to 50.0 from 53.5 in April. The import index for May increased to a weak 48.8 from April’s 46.8. “Over the last year, the value of the U.S. dollar has risen by more than 16 percent against the currencies of our chief trading partners. This movement has made U.S. goods less competitively priced abroad and foreign goods more cheaply priced in the U.S. Despite this, the new export orders index stood at growth neutral for the month and imports declined. I expect the export orders index to move even lower in the months ahead and the slow growth U.S. economy to continue to limit imports,” said Goss. Other components: Other components of the May Business Conditions Index were new orders at 51.0, down from 55.5 in April; production or sales deteriorated to 52.8 from April’s 57.3; and delivery speed of raw materials and supplies decreased to 51.8 from last month’s 53.2. 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.

Page 14: MONTHLY NEWSLETTER Institute for Supply Management ... · 4-5 Golf Tournament Hghlii ghts 6 CPSM Study Session 7 Article – Next Big Trends in Supply Chain Risk Management 8 ISM

PAGE 14 ISM-KANSAS CITY NEWSLETTER

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: The May overall index, or leading economic indicator for Arkansas, slipped to 49.8 from 53.6 in April. Components of the index from the monthly survey of supply managers were new orders at 50.3, production or sales at 52.1, delivery lead time at 51.1, inventories at 47.6, and employment at 47.6. “Business activity slowed for both durable and nondurable goods manufacturers in the state,” said Goss. Iowa: Iowa’s Business Conditions Index fell to 50.4 from 53.3 in April. Components of the index from the monthly survey of supply managers were new orders at 51.0, production or sales at 52.9, delivery lead time at 51.8, employment at 48.3, and inventories at 48.2. “Durable goods manufacturers continue to experience pullbacks in economic activity. Producers tied to agriculture, such as agricultural equipment manufacturers and metal producers, are reporting downturns in economic activity. On the other hand, nondurable producers in the state report positive but weak growth for the month,” said Goss. Kansas: The Kansas Business Conditions Index for May slumped to 49.7 from April’s 51.2. Components of the leading economic indicator from the monthly survey of supply managers were new orders at 50.3, production or sales at 52.1, delivery lead time at 51.1, employment at 47.6, and inventories at 47.5. “Durable goods manufacturers in the state, including agricultural machinery producers and aircraft parts manufacturers, are reporting downturns in economic activity. Nondurable manufacturing, such as food processors, also signaled slower growth in the months ahead,” said Goss. Minnesota: The Minnesota Business Conditions Index dipped slightly for the month. The overall index slipped to 51.1 from 51.3 in April. Components of the index from the May survey of supply managers were new orders at 51.7, production or sales at 53.5, delivery lead time at 52.5, inventories at 48.8, and employment at 48.9. “Minnesota’s economy has expanded in 2015, but at a slower pace than for the same time period in 2014. Our surveys over the past several months point to even slower, but positive, growth in the months ahead for the state. Despite the strong dollar making Minnesota goods less competitively priced abroad, durable goods manufacturers, including metal producers, expanded for May and for 2015. Growth for the heavy manufacturing, or durable goods, will slow in the months ahead, spilling over into the broader state economy,” said Goss. Missouri: The May Business Conditions Index for Missouri sank to 50.7 from 54.4 in April. Components of the index from the survey of supply managers were new orders at 48.7, production or sales at 53.2, delivery lead time at 52.1, inventories at 48.5, and employment at 51.0. “Missouri’s economy has expanded in 2015, but at a slower pace than for the same time period in 2014. Our surveys over the past several months point to even slower, but positive, growth in the months ahead for the state. Despite the strong dollar making Missouri goods less competitively priced abroad, durable goods manufacturers expanded for May and for 2015. Growth for heavy manufacturing, or durable goods, will slow in the months ahead, spilling over into the broader state economy. Food processors will continue to experience pullbacks in economic activity,” said Goss. Nebraska: For the 18th straight month, Nebraska’s Business Conditions Index remained above growth neutral 50.0, though it sank to 51.1 from April’s 54.6. Components of the index were new orders at 51.7, production or sales at 53.6, delivery lead time at 52.5, inventories at 48.9, and employment at 49.0. “Nebraska manufacturing has weakened and will continue to weaken as a result of weaker farm income and a higher value of the U.S. dollar. Agricultural equipment producers have experienced pullbacks in economic activity. Unless the U.S. dollar weakens dramatically in the months ahead, the Nebraska economy is slated for slow growth through the third quarter of 2015,” said Goss. North Dakota: North Dakota’s leading economic indicator for May fell below growth neutral. The Business Conditions Index declined to 46.8, a regional low, from April’s 51.6. Components of the overall index from the monthly survey of supply managers were new orders at 47.3, production or sales at 49.0, delivery lead time at 48.1, employment at 44.8, and inventories at 44.7. “Our survey is now picking up weakness linked to the energy sector for North Dakota. Durable goods producers connected to energy, such as energy support firms, are detailing declining economic conditions. Even though this weakness has yet to hit the broader North Dakota economy, our surveys indicate that it will spill over into the broader state economy in the months ahead,” reported Goss. Oklahoma: The Business Conditions Index for Oklahoma slumped below growth neutral for May, falling to 47.0 from 50.8 in April. Components of the May survey of supply managers were new orders at 47.5, production or sales at 49.2, delivery lead time at 48.2, inventories at 44.9, and employment at 45.0. “Energy firms and manufacturing firms linked to energy have begun to pullback. According to our surveys, this will spill over into the broader Oklahoma economy in the months ahead,” said Goss. South Dakota: After moving below growth neutral in November of 2012, South Dakota’s leading economic indicator has been above growth neutral 50.0 each month since. The Business Conditions Index, from the monthly survey of supply managers, dipped slightly to a regional high of 54.1 from 54.2 in April. Components of the overall index for May were new orders at 54.7, production or sales at 56.7, delivery lead time at 55.6, inventories at 51.7, and employment at 51.8. “Manufacturing firms in the state are expanding at a solid pace. This has spilled over to other industries in the state such as wholesale trade,” said Goss. Survey results for June will be released on the first business day of next month, July 1.

Page 15: MONTHLY NEWSLETTER Institute for Supply Management ... · 4-5 Golf Tournament Hghlii ghts 6 CPSM Study Session 7 Article – Next Big Trends in Supply Chain Risk Management 8 ISM

PAGE 15 ISM-KANSAS CITY NEWSLETTER

2015-2016 ISM-Kansas City Board

Board Positions Name Company Email Telephone

President Michelle Burdine, CPM BNSF Railway [email protected] 913-577-5537

Past President Roxanna Swaney CenturyLink [email protected] 913-353-7528

1st Vice President Penny Wilson Terracon [email protected] 913-577-0348

2nd Vice President Esmeralda Phillips, CPSM, CPM Sprint [email protected] 913-315-9146

Secretary JoAnn Harper, CPSM, CPM [email protected] 816-741-3204

Treasurer Joel Johnson, CPSMBlueScope Buildings North America [email protected] 816-968-3742

Communications Director Samantha Rogers Terracon [email protected] 913-577-0306

Communications Director Sue Madrid Honeywell FM&T [email protected] 816-488-3591

Diversity Director Donna Brozoski KCP&L [email protected] 816-242-5915

Diversity Director Manny Gutierrez, CPM Waddell & Reed [email protected] 913-236-3926

Education Director Joe Steve, CPSM, CPM KCP&L [email protected] 816-245-3684

Marketing Director JennyLyn Jensen Helzberg Diamonds [email protected] 816-627-1511

Membership Director Susan Wright, CPSM Clinical Reference Laboratory [email protected] 913-693-8920

Program Director Mary Hunter CenturyLink [email protected] 913-353-7533