monthly newsletter institute for supply management – … · 2016-02-09 · page 4 ism-kansas city...

Message from the President

February – The Month of Love

Love of family, love of spouse or significant other… What about loving your

career? You know what it takes to nurture love with a spouse or with a child.

Why not think about nurturing love for your career? Set some career goals, do

some networking or mentoring, and attend some training or seminars. ISM-KC

can help you with these goals so you can LOVE your career. Start by marking

your calendar to attend the February 16th luncheon meeting and earn 2

continuing education credits while you learn about the ISM CPSD (Certified

Professional in Supplier Diversity) certification and how to implement a Corporate

Supplier Diversity Program in your company. You could be a champion for your

company and bring back some fantastic information to share with your boss or

with your peers. To further advance the love for your career, ISM-KC will offer a

1-day session on March 19th so you can learn about CPSM certification and

several other Supply Chain topics. Don’t miss this opportunity to network with

other professionals and advance your knowledge.

The ISM-Kansas City Scholarship committee will be looking for your submittal for

some FREE money. The deadline for scholarship submissions is March 1st.

Active members can submit on their own behalf of on behalf of their high school

senior. Don’t miss this opportunity to get some money so you can advance your

career or meet your own personal education goals for this year.

Thank you to those that took the time to answer our survey. The results are

published later in this newsletter. Your voice as a member is heard. We are

always here to talk about ideas and opportunities to make ISM-KC better.

Nurture your Career – Love your Career. Take Action and Start now!

Michelle Burdine, C.P.M. ISM-Kansas City President BNSF Railway - Strategic Sourcing Manager

Inside This Issue:

1 Message from the

President

2 February Luncheon

Meeting Information

3 Highlights of January

Luncheon Meeting

4-6 Upcoming Events

7 ISM-KC 2016 Survey

Summary & Winner

8 ISM Scholarship

9-10 Outreach Committee

11-14 Economic Corner with

Ernie Goss

15 Committees and

Openings

16 ISM~KC Board of

Directors **Director-

MONTHLY NEWSLETTER

Institute for Supply Management – Kansas City, Inc.

February 2016

ISM-KANSAS CITY NEWSLETTER

2016 ISM Kansas City February Luncheon Meeting

Tuesday, February 16, 2016 Hereford House (I435 & Midland Drive)

17244 Midland Drive, Shawnee, KS

"Earn, Study and Maintain the CPSD Certification" Pre-Meeting Presented by

Ted Lockwood II, CPSM, CPSD, C.P.M. Manager Procurement, Sprint

"Importance and Implementation of a Corporate Supplier Diversity Program"

Luncheon Program Presented by

Joyce Christanio Senior Manager Supplier Diversity, Sprint

Pre-Meeting 11:00 – 11:45 AM; Lunch 12:00 PM; Program 12:30-1m 12:30-1:15 PM

Every program provides networking and educational opportunities, as well as informal discussions with experts! Come hear….talk about observations in the marketplace.

Ted is going to tell us one way we can influence supplier diversity in our current positions. Joyce is going to share a baseline for starting a supplier diversity program or enhancing the one you have. It all matters!

Guests are welcome! Event cost includes lunch. $30 for ISM-KC/ISM Affiliate members

$35.00 for Guests Pre-pay with credit card at www.ism-kansascity.org to reserve your seat.

RSVP by 5:00 p.m. on Sunday, February 14.


Highlights of January Luncheon Meeting

Despite the wintery weather, attendees of the January Luncheon Meeting enjoyed the warmth of our new meeting place, Hereford House, along with great food and networking opportunities. Our pre-meeting speaker, Liza Perry, Senior Program Coordinator at Cerner, provided an insight to the importance of Using Social Media to make sure your business benefits from sites like Twitter, Facebook, LinkedIn, etc. Be sure to check out her presentation on our website, www.ism-kansascity.org under the ‘Documents and Files’ link.

Liz Perry, Cerner, educates the audience on use of Social Media during the January Luncheon.

Attendees of January Meeting

NOTE: Unfortunately our main program speaker, Thomas Bridge, CEO of Media Management was unable to deliver his message in person due to weather conditions. Hopefully, you were able to participate in his webinar broadcasted on 1/29/16. If not, his slide presentation can be found on our website, www.ism-kansascity.org under ‘Documents and Files’ link.


2016 ISM-Kansas City Upcoming Events and Meetings Schedule

March 15 – National Purchasing Month – TOTAL COST OF OWNERSHIP & TOUR OF CAVES March 19 – CPSM Review, University of St. Mary (9:00 a.m. – 5:00 p.m.) 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.

Local Partner & National Events March 14th – 16th - Global Procurement Tech Summit 2016 in Baltimore!

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.

Presenters from IBM and Amazon Mobile Procurement and technology innovation tactics

March 7-8, 2016 – Contracting for Purchasing and Supply Management: Beyond the Basics in San Diego, CA (earn 14 continuing education hours. To register or to find out about more upcoming events, go to www.instituteforsupplymanagement.org and click on ‘Events’.


Local Partner & National Events (continued)

March 30 to April 1, 2016 – ISM Travel and Entertainment 2016 Annual Conference. To find out more, go to www.instituteforsupplymanagement.org and click on ‘Events’.

May 15-18, 2016 – ISM 2016 Annual Conference (www.ism2016.org)


Attention: ISM‐Kansas City Members

Are you interested in attending a quick 1‐day CPSM Review class?

Are you interested in earning 7 Continuing Education Credits?

Come and join us on Saturday, March 19, 2016 (9:00 a.m. to 5:00 p.m.)

Location: University of St. Mary, 11413 Pflumm Road, Overland Park, KS 66215

Joe Steve, ISM‐Kansas City’s Director of Education will be teaching a concise 1‐day CPSM Review class on Saturday, March 19. 9am to 5pm.

This is an opportunity to earn 7 continuing education hours with other members of ISM‐Kansas City chapter. An ISM CPSM study guide is helpful, but not required. You can walk away with your CEH certificate at the end of the day by advising Joe via email @

[email protected]. Have questions or want to learn more about the advantages of this certification? Contact Joe Steve, or select the link below for information on ISM’s website: https://www.instituteforsupplymanagement.org/certification/content.cfm?ItemNumber=29023&navItemNumber=28809.

Cost of this class is $25.00 by registering on the ISM‐Kansas City website (www.ism-kansascity.org) (select upcoming meeting link) now through March 18, 2016.

Don’t want to pay $25 for the class, then submit a two page ‘white’ paper (to Joe Steve) with at least 4 multiple choice questions on any supply chain topic you think may be useful to other supply chain professionals. All ‘white’ papers submitted will be compiled and utilized by ISM‐Kansas City as a continuing education resource. Complete the registration and at ISM‐Kansas City website (www.ism-kansascity.org) (select upcoming meeting link) now through March 18, 2016.

NOTE: Be sure to let Joe know if you want your name omitted as the ‘author’ on any paper you submit.


ISM-Kansas City 2016 Survey Results

Announcing the winner of the Survey drawing: Rachael Morisseau with NAIC. Rachael is the winner of a lunch or dinner meeting of her choice courtesy of ISM-KC. Congratulations Rachael!

General Survey Results: 81% have attended a Program meeting in the last

12 months Members like the mix of dinner and lunch meetings

o Members would like to see more networking events

o More meetings with a Panel Structure to hear more diverse ideas

o One idea was to have a “show and tell” where each company presents a tool, template, or best practice to share with the group

77% of members employers pay for their attendance to the programs The survey gathered several ideas for new topics

The ISM-KC board will continue to review the ideas and comments from the survey and work to put them into our programs and events going forward. Thank you for taking the time to give us your feedback.


ISM-Kansas City Education Committee

ISM Scholarship - 2016

ISM – Kansas City has established a scholarship program to assist members and their immediate families who plan to continue their education at a college level, and/or are pursuing a CPSM or CPSD certification. Scholarships are offered each year. The Scholarship Committee of ISM – Kansas City will administer this scholarship program. Awards are granted without regard to race, color, creed, religion, gender, sexual orientation, veteran status, disability, or national origin. All applications are due by close of business on Tuesday, March 1, 2016. Eligibility:

Active members in good standing with the local ISM – Kansas City, immediate family member, student member, or life time member.

ISM – Kansas City family member, who are high school seniors or high school graduates who plan to enroll, or students who are already enrolled, in a full-time college program at an accredited two or four-year college or university with a minimum GPA of 3.0 on a 4.0 scale or equivalent B average.

ISM – Kansas City members in good standing who are pursuing advanced certification, i.e., CPSM. * Full-time study is defined as full-time enrollment for the entire upcoming academic year. Select the link below for details, instructions and application: https://www.ism-kansascity.org/chapters/ism-ism-kan/scholarship.cfm ISM-Kansas City Education Committee Joe Steve CPSM- Kansas City Power & Light


ISM-Kansas City Outreach Committee

Although recognition of the history and accomplishments of black Americans should never be relegated to only one month out of the year, February is traditionally declared “Black History Month”. It is a time to celebrate the achievements by black Americans as well as recognizing the central role of African Americans in U.S. history. As Supply Chain Professionals, many of us will use the spirit of Black History Month as an opportunity to assess and refocus our Supplier Diversity programs. But even though we may set goals, measurements, and ideals around our Supplier Diversity programs, often they are challenging to achieve on a company‐wide scale. Jason Busch wrote an interesting article for Spend Matters on these same challenges. In his article, “A Critical Topic for Black History Month: How Far Should Supplier Diversity Programs Go?”, he suggested we ask ourselves the following 10 questions:

1. Give preference to diverse suppliers in new contracts in a quantifiable manner ‐‐ generally? For

example, a diverse supplier's higher offer price in response to an RFP might be weighted less than a

similar offer from a competing supplier (which would knock them out of contention) compared with a

third supplier that came in at a lower amount.

2. Mandate that a certain amount of new contract awards (in %) terms go to diverse suppliers?

3. Track diversity information that goes beyond standard National Minority Supplier Development

Council (NMSDC) or similar requirements (e.g., percentage of employees or contractors who are

minorities, women)?

4. Focus on targeting diverse supplier recruitment in certain categories vs. others (this is fundamentally

great question to ask, at least in our view, because minority job creation for low‐wage jobs to serve a

particular account in a blue collar services industry ‐‐ e.g., janitorial work ‐‐ is different than in skilled

manufacturing, where wages are higher and a true supplier diversity "trickle‐down" effect is likely to

occur)?

5. Require tier one suppliers in specific categories to award a certain percentage of business to diverse

suppliers on the sub‐tier level (vs. suggest/indicate diversity award goals)?

6. Hold diverse suppliers to different standards of accountability in terms of performance and quality, at

least for a certain period of time (e.g., "warnings" that would not be given to other suppliers)?

7. Invest greater overall percentages in supplier development programs (vs. the general pool of

suppliers) that target diverse suppliers? Such programs might focus on lean cost take out initiatives,

working capital/early payment programs, training, demand aggregation (for raw materials), etc.

8. Require quantifiable "payback" or ROI mechanisms for supplier diversity (e.g., measuring market‐

share in specific markets, government contracts won/maintained, etc.)?


9. Focus on a global scale with localized and decentralized metrics but with central oversight and

accountability (e.g., tracking indigenous workers in facilities in certain countries in Latin America,

Australia)?

10. Be integrated as a standard part of a supplier management/vendor management approach and

process without stand‐alone technology or resources? Such a model could take the form as having a

common supplier management toolset for onboarding, enablement, supplier performance

management, risk management, etc. for both diverse and non‐diverse suppliers (but that could flag

diverse suppliers as required).

He finishes the article with an astute observation. “Supplier diversity programs that simply beat to the rhythm

of the status "check‐the‐reporting‐box" quo are not only likely to minimize their potential ‐‐ they're also likely

to potentially harm internal relationships with business stakeholders and external suppliers (diverse or

otherwise).”

At the end of the day, a true Supplier Diversity program is a proactive business process that will benefit your

supply chain. As John Walker, Jr., a US Army Veteran and African American owner of Perfect Output, LLC,

emphasized in our November pre‐meeting “If you want to just check a diverse supplier block, we’re not the

right company for you. If you want to save money, call us.”

Don’t just check the block. Make your Supplier Diversity program count.

Co-Chairs of the ISM-Kansas City Outreach Committee:

Donna Brozoski- Kansas City Power & Light Manny Gutierrez- Waddell & Reed Ted Lockwood – Sprint


Economic Corner with Ernie Goss

Mid-America Business Conditions Index Improves:

Export Orders Plummet for January January survey results at a glance:

For a sixth straight month, the region’s overall index moved below growth neutral.

Weakness for Missouri, North Dakota, and Oklahoma, more than offset readings above growth

neutral for the remaining six states.

Employment index improved, but remained below growth neutral for a fifth consecutive

month. Over the past year, the region lost almost 20,000 durable manufacturing jobs but gained

approximately 3,000 non‐durable jobs.

The strong U.S. dollar sank export orders, but boosted imports for the month.

Ernie Goss, Ph.D. MacAllister Chair & Professor of Economics, Creighton University

OMAHA, Neb. (Feb. 1, 2016) – The Creighton University Mid-America Business Conditions Index for January, a leading economic indicator for a nine-state region stretching from Arkansas to North Dakota, expanded for the first time since June of last year, but remained below growth neutral. Overall index: The January Business Conditions Index, which ranges between 0 and 100, improved to a still weak 48.3 from December’s 39.5. The regional index, much like the national reading, is now in negative territory indicating manufacturing losses linked to the strong U.S. dollar and to economic weakness among global trading partners. “The U.S. dollar strengthened by almost 9 percent since June of last year and on Friday, the dollar posted its largest gain against the Japanese yen since the fourth quarter of 2014. This, along with economic weakness among the nation’s chief trading partners, has squeezed, and will continue to squeeze, U.S. and regional manufacturers,” 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. Employment: The regional employment gauge increased for January but remained below growth neutral at 49.3, up from December’s 37.1. Over the past year, the region has lost approximately 20,000 durable manufacturing jobs, or 2.4 percent of heavy manufacturing jobs. During this same period, the rest of the nation gained 7,000, or 0.2 percent, in durable goods manufacturing jobs. “Areas and industries heavily dependent on durable goods manufacturing, especially those linked to exports, agriculture and energy, are experiencing the largest losses,” said Goss.


This month businesses were asked to describe their hiring situation in January. Approximately 46.3 percent of the businesses reported that the number of applicants exceeded the number of available jobs at their firm. On the other hand, 18.5 percent of businesses reported shortages of workers for company job openings. Wholesale Prices: The wholesale inflation index for January rose to 52.4 from December’s 48.2. “Prices for raw materials and supplies, as reported by regional supply managers, are rising at a pace that will undercut the Federal Reserve’s goal of 2 percent growth in consumer prices,” said Goss. Confidence: Looking ahead six months, economic optimism, as captured by the January business confidence index, fell to 42.2 from December’s 49.1. “Falling agriculture and energy commodity prices, along with global economic uncertainty, continues to restrain supply managers’ expectations of future economic conditions,” said Goss. Inventories: In another sign of a sinking economic outlook, supply managers reduced their inventory levels for the month, though at a slower pace. The January inventory index, which tracks the change in the level of raw materials and supplies, increased to 49.3 from 43.6 in December. Trade: The new export orders stood at a weak 40.0, up from 33.8 in December. The import index for January expanded to 53.1 from December’s 40.0. “The strong U.S. dollar, making U.S. goods less competitively priced abroad, and a weaker global economy, hammered new export orders for the month. On the other hand, the strong dollar, making foreign goods more competitively prices boosted imports above growth neutral for the month,” said Goss. “Since October of 2015, the value of the U.S. dollar has expanded by more than 8 percent against the Canadian dollar. The number one export market for each state in the Mid-America region is Canada, and this will put downward pressure on regional exports,” said Goss. Other components: Components of the January Business Conditions Index were new orders at 43.7, up from 34.6 in December; production or sales moved higher to 45.3 from December’s 35.4; and delivery speed of raw materials and supplies rose to 53.9 from last month’s 47.3. 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: The state’s January overall index, or leading economic indicator, climbed to 50.1 from December’s 40.1. Components of the index from the monthly survey of supply managers were new orders at 45.3, production or sales at 47.0, delivery lead time at 55.9, inventories at 51.2, and employment at 51.0. “According to the latest U.S. government data, exports represent approximately 5.7 percent of the state’s overall economy. This puts Arkansas in 37th place among the 50 states. Since Canada is Arkansas’s number one export market, state exports will remain under pressure since the value of the U.S. dollar to the Canadian dollar has climbed by more than 8 percent since October 2015,” said Goss.


Iowa: The January Business Conditions Index for Iowa soared to a tepid, but positive, 50.3 from 41.2 in December. Components of the index from the monthly survey of supply managers were new orders at 45.5, production or sales at 47.2, delivery lead time at 56.1, employment at 51.4, and inventories at 51.2. “According to the latest U.S. government data, exports represent approximately 8.9 percent of the state’s overall economy. This places Iowa in 18th place among the 50 states. Since Canada is Iowa’s number one export market, exports will remain under pressure since the value of the U.S. dollar to the Canadian dollar has climbed by more than 8 percent since October 2015,” said Goss. Kansas: The Kansas Business Conditions Index for January rose to 50.7 from December’s 41.7. Components of the leading economic indicator from the monthly survey of supply managers were new orders at 45.8, production or sales at 47.5, delivery lead time at 56.5, employment at 51.9, and inventories at 51.5. “According to the latest U.S. government data, exports represent approximately 8.3 percent of the state’s overall economy. This places Kansas in 20th place among the 50 states. Since Canada is Kansas’s number one export market, exports will remain under pressure since the value of the U.S. dollar to the Canadian dollar has climbed by more than 8 percent since October 2015,” reported Goss. Minnesota: The January Minnesota Business Conditions Index jumped to 50.1 from December’s 39.4. Components of the index from the monthly survey of supply managers were new orders at 44.8, production or sales at 46.5, delivery lead time at 55.3, inventories at 49.7, and employment at 53.9. “According to the latest U.S. government data, exports represent approximately 6.8 percent of the state’s overall economy. This places Minnesota in 29th place among the 50 states. Since

Canada is Minnesota’s number one export market, exports will remain under pressure since the value of the U.S. dollar to the Canadian dollar has climbed by more than 8 percent since October 2015,” reported Goss. Missouri: The January Business Conditions Index for Missouri increased to 47.7 from December’s 38.9. Components of the index from the survey of supply managers were new orders at 43.2, production or sales at 44.8, delivery lead time at 53.2, inventories at 49.0, and employment at 48.4. “According to the latest U.S. government data, exports represent

approximately 5.1 percent of the state’s overall economy. This places Missouri in 39th place among the 50 states. Since Canada is Missouri’s number one export market, state exports will remain under pressure since the value of the U.S. dollar to the Canadian dollar has climbed by more than 8 percent since October 2015,” reported Goss. Nebraska: January’s Business Conditions Index for the state climbed to a regional high of 54.3 from 43.5 in December. After six straight months of falling below growth neutral, the index, a leading economic indicator from a monthly survey of supply managers bounced to its highest level since April of last year. Components of the index were new orders at 49.1, production or sales at 51.0, delivery lead time at 60.6, inventories at 55.7, and employment at 55.1. According to the latest U.S. government data, exports represent approximately 7.1 percent of the state’s overall economy. This places Nebraska in 27th place among the 50 states. Since Canada is Nebraska’s number one export market, exports will remain under pressure since the value of the U.S. dollar to the Canadian dollar has climbed by more than 8 percent since October 2015,” said Goss. North Dakota: North Dakota’s leading economic indicator for January remained below growth neutral 50.0. The Business Conditions Index was a regional low 41.3, up from December’s 35.5, also a regional low. Components of the overall index from the monthly survey of supply managers were new orders at 37.3, production or sales at 38.7, delivery lead time at 46.0, employment at 42.1, and inventories at 42.1. According to the latest U.S. government data, exports represent approximately 9.8 percent of the state’s overall economy. This places North Dakota in 13th place among the 50 states. Since Canada is North Dakota’s number one export market, exports will remain under


pressure since the value of the U.S. dollar to the Canadian dollar has climbed by more than 8 percent since October 2015,” said Goss. Oklahoma: The January Business Conditions Index for Oklahoma slumped below growth neutral for a ninth straight month. The index from a monthly survey of supply managers climbed to a weak 48.3 from 35.5 in December. Components of the January survey of supply managers were new orders at 43.7, production or sales at 45.3, delivery lead time at 53.9, inventories at 49.7, and employment at 48.9. “According to the latest U.S. government data, exports represent approximately 3.4 percent of the state’s overall economy. This places Oklahoma in 48th place among the 50 states. Since Canada is Oklahoma’s number one export market, exports will remain under pressure since the value of the U.S. dollar to the Canadian dollar has climbed by more than 8 percent since October 2015,” reported Goss. South Dakota: After falling below growth neutral for three straight months, South Dakota’s leading economic indicator rose above the 50.0 threshold to 51.3 from 40.2 in December. Components of the overall index for January were new orders at 46.4, production or sales at 48.2, delivery lead time at 57.3, inventories at 52.4, and employment at 52.5. “According to the latest U.S. government data, exports represent approximately 3.5 percent of the state’s overall economy. This places South Dakota in 47th place among the 50 states. Since Canada is South Dakota’s number one export market, exports will remain under pressure since the value of the U.S. dollar to the Canadian dollar has climbed by more than 8 percent since October 2015,” reported Goss. Survey results for February will be released on the first business day of next month, March 1. Follow Goss on twitter at http://twitter.com/erniegoss For historical data and forecasts visit our website at: http://business.creighton.edu/organizations-programs/economic-outlook


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.


2015-2016 ISM-Kansas City Officers and Board Members