® Mar 2012 March is Supply Management Month! Each year in March, Institute for Supply Management™ (ISM) demonstrates its commitment to lead and serve supply management by encouraging celebrations and awareness activities showcasing the importance of the profession. Supply Management Month is a time when professionals around the world — regardless of job title, organizational role or ISM membership status — can play an important role in promoting supply management. Supply managers' capabilities and responsibilities have seen unprecedented growth in importance in recent years. Never before have supply managers been asked to do so much and take on as much responsibility as they do now. Supply Management Month is a perfect time to celebrate ... and educate others about who we are and what we do. THURSDAY MARCH 1st ETHICS PANEL See Page 4 For More Information Prior to 1900-Purchasing was recognized as an independent function by many railroad organizations. Prior to World War I (1914-1918)-Purchasing was regarded as primarily clerical. During World War I (1914-1918) and World War II (1939-1945)-Function increased due to the importance of obtaining raw materials, supplies, and services needed to keep the factories and mines operating. During 1950s and 1960s-Purchasing continued to gain stature as the techniques for performing the function became more refined and as the number of trained professionals increased. The emphasis became more managerial. During 1970s and 1980s-More emphasis was placed on purchasing strategy as the ability to obtain needed items from suppliers at realistic prices increased. During 1990s-Purchasing became more integrated into the overall corporate strategy. Current-The field is experiencing increasing integration with supply networks and information technology. The field has changed from "purchasing" to "supply management" to reflect the transition from a transaction-based, tactical function to a process-oriented, strategic one. TIME: 5:30 p.m. Networking / 6:00 p.m. Cost $28.00* Includes Dinner. VISA and MasterCard Accepted No-Shows Billed Location: Westmark Hotel, 720 W. 5th Ave. Anchorage Alaska RESERVATIONS REQUIRED Contact- Natalia Weems email: N.Weems@alaskausa.org (907)-646-6308 no later than 5 P.M. on Monday, 27 February, 2012 ALASKAN PURCHASER Mar 2012 Supply Management Defined: Joseph L. Cavinato, Ph.D., C.P.M. Institute for Supply Management™ The supply profession continues to change, expand, grow and evolve at an accelerating rate. Today's dynamic times provide opportunities for new and better strategies, tools and practices which in turn, cultivate more complex supply professionals and companies. The ongoing development and sophistication of this field of supply management requires a periodic look at the dimensions of supply to understand how it is being practiced and influenced, and how supply impacts results and performance across the enterprise and the supply chain. ISM leadership carefully crafted and periodically updates the future-oriented definition of supply management. Today it reads: "The identification, acquisition, access, positioning, management of resources and related capabilities the organization needs or potentially needs in the attainment of its strategic objectives." The remainder of this paper discusses each of the dimensions of supply. Appendix 1 defines each supply management component. Identification: Supply professionals' interactions are broader than ever before, from consumer and customer and across the company's stakeholders and top management and through the supply base—all with the goal to identify opportunities and needs. Identification continues with understanding risks, effects, performance requirements and paradigm shifts across products, services, processes and geographies. Acquisition and Access: Acquisition is a broad concept capturing the concept of the many ways an organization can acquire and use products and services. Access reflects the use of the assets of others. For example, outsourcing is a way of accessing the use of others' assets. Other forms of access include creating close relationships that utilize innovation resources and energies from outsiders. Positioning: Positioning is the posturing of the overall organization to acquire and access the best possible goods, services, assets and energies from suppliers. It means becoming the best customer to a supplier in order to attain superior services, attract first innovation, and assure quality and supply flow. Positioning entails having the ability to influence and affect suppliers' actions, behaviors and investments for the organization's own benefit. Management of Resources: Management of resources spans both the internal and external spectrums. Internally, the supply professional leads and manages how the organization produces goods and services for its customers and constituents. Externally, the supply professional collaborates with suppliers and influences product manufacturing, delivery of services, logistics performance and delivering value through effective process management. Supply professionals manage resources to ensure lowest overall cost, increase efficiency and transparency in processes, and shrink the asset base. Leading companies share their engineering, IT, logistics and other experts to help suppliers innovate and enhance processes, thus improving and lowering costs' levels and prices. Related Capabilities: This final dimension, related capabilities, addresses approaches, personal strengths and organizational abilities that best combine tasks, skills, competencies and systems to meet any challenge or to identify and gain benefit from any first advantage. Classic examples include (a) strategic sourcing, (b) total costs, including total cost of ownership, (c) life-cycle costs, (d) scenario planning, and more recently (e) category and risk management and leadership. Broad capabilities reflect how effective supply professionals detect and flex approaches to tight, loose and shifting markets. They also reflect the ability to know and understand when it is best to apply primary buying power strength or gain advantage through collaboration. A capable supply professional is financially savvy and seeks performance results through a variety of mechanisms including lower price, total cost, working capital, speeded cash-to-cash cycles and reduced asset bases. Building Supply Management for the Organization: Creating an expanded future for supply management requires two things: a vision and a roadmap. Characteristics of an effective supply organization include: A well-defined vision statement that is written and communicated throughout the entire organization; Strategic process models for products, services, outsourcing, insourcing, access and technologies; Business alignment that is synchronous with the strategies and initiatives of the rest of the organization; A highly-developed understanding of the need for global awareness, culture, geopolitics, demographics and geography. Assertive roles for influencing value-add throughout the organization and pulling it from the suppliers; Planning and support of on-going change, development of consultative skills, and building talent; Leading with new information, intelligence and measurements; and, Extended influence and "selling" internally and externally. In these dynamic times, the global environment can bring more change and demands in a month than were experienced previously over a few years. The supply field and profession will continue to expand and grow in complexity and challenges. Supply professionals today must understand strategic elements of the business first and then competitively manage the business as an effective supply professional and leader. PAGE 2 Mar 2012 ALASKAN PURCHASER 2011/2012 Officers President Sonja Love-Hestnes State of Alaska Phone (907) 269-3090 fax (907) 269-3061 Email: Sonja.love-hestnes@alaska.gov Past President Marlys Hagen, C.P.M. State of Alaska, Department of Natural Resources Phone (907) 269-8666 fax (907) 269-8909 Email: marlys.hagen@alaska.gov Vice President Anthony Bolido BP Exploration (Alaska) Phone (907) 564-4335 Email: anthony.bolido@bp.com Secretary Tony Lazenby Anchorage Neighborhood Health Center Phone (907)-792-6515 Email: tlazenby@anhc.org Treasurer Natalia Weems C.P.M. Alaska USA Federal Credit Union Phone (907)-646-6308 fax (907)-375-5039 Email: N.Weems@alaskausa.org Director of Education Ben Milam, C.P.M. Alaska Native Tribal Health Consortium Phone (907) 729-2972 Email: whiskers@mtaonline.net Director of Membership Katharine A. Wall, C.P.M. Northrim Bank Phone (907) 341-8704 fax (907) 341-8749 email: wall.kat@nrim.com Director of Communications Mike Lankford, CPSM Elmendorf AFB AK Phone (907) 552-5362 fax (907) 552-7497 Email: michael.lankford@elmendorf.af.mil Director at Large PRESIDENT SONJA LOVE HESTNES Greetings, I’m currently vacationing in a very hot climate but will soon return to Alaska just in time for Fur Rondy. Some of our NAPM-Alaska Board Members participated in the annual KASH for Kids fundraiser for the Children’s Miracle Network (CMN) this year. This great event raised funds to help ensure that Alaska's kids will receive the best care possible right here in Alaska. One hundred percent of these donations to Children's Miracle Network will go to care for Alaska's kids and support the services provided at the Children's Hospital at Providence. Thanks to all who helped support this charity fundraiser. March is Supply Management Month, I encourage everyone to share this with their co-workers and others and get them involved in NAPM educational programs. Sonja Ward Wells, C.P.M. State of Alaska Dept. of Natural Resources (907) 269-8687 ward.wells@alaska.gov Suzanne Collier Alaska Native Tribal Health Consortium (907) 830-4021 smcollier@anthc.org Carol Geiger C.P.M. Providence Phone (907) 212-6339 Carol.geiger@providence.org Monica Ulmer Alaska Interstate Construction Phone (907) 777-8244 Monica.ulmer@aicllc.com Sonja Love-Hestnes President PAGE 3 ALASKAN PURCHASER Mar 2012 Director of Education BEN MILAM, CPPM, C.P.M. If you ever purchase software or any Information Technology (IT) services, I hope you were in attendance at last month’s meeting. If you were there you are probably beating yourself up, knowing that you probably spent far too much of your companies money. We were indeed honored to have Jim Florentine as our speaker. In a former life Jim was a salesman and sales manager for large software distributors. Today he has a company that takes the knowledge he learned in software sales and uses it to help procurement folks like us analyze and negotiate software and IT services procurement. For many of us it was no secret to learn that most software and IT services are sold long before the purchasing department gets involved. Backdoor selling takes place in many procurements, but, appears to be more prevalent in IT where profit margins are extremely high. NAPM-Alaska is always vigilant to ensure that our speakers provide relevant education and not a sales pitch for their company. I would like to commend Mr. Florentine for his strict adherence to that policy. His presentation was 100% percent educational when it could have easily turned into a sales pitch. Several have already requested his contact information and I will gladly provide to anyone who requests it. March 1, 2012 Meeting: Our annual calendar calls for an Ethics Panel Discussion this month. Hopefully we can still pull it off, but some last minutes glitches may force a change in the program. Rest assured we will have an educational program with the meeting. More details will be provided to all in our monthly email meeting notification. March is also National Supply Management Month (still referred to as Purchasing Month by many). For NAPM-Alaska it is also Professional Certification Month. Professional Certification is becoming more and more critical in our profession as it is now required by many companies and even more often the differentiating factor in the hiring process. As a result we will take this opportunity to recognize those in attendance with a special gift. While the gift is nice, the real recognition comes from friends and cohorts. Hope to see you there. What Has Your Board Of Directors Been Up To? I am sure it is also mentioned by others in this newsletter, but here is my synopsis. PAGE 4 Several of us recently participated in a telethon to raise funds for The Children’s Miracle Network. It is not often that we as a group get the opportunity to show community support and it would be difficult to find a cause more important that this one. It was fun, but we also helped raise a lot of money for this important cause. The 3 day event raised $82,517 and despite our 6:00 AM time slot, NAPM-Alaska played a very important part. We were told that we had surpassed other groups in this early morning slot. Hopefully we can get more involved with community support in the future. Several members also participated in recent Career Days/Jobs Fair at the University of Alaska. While most vendors there were trying to hire students, NAPM-Alaska was there to promote Purchasing and Supply Management as a career field. As students approached our booth with large banners to identify our organization, the most frequently asked question was, “What is Purchasing?” Hopefully our presence helped to recruit some of this younger generation to join our ranks. NAPM-Alaska has placed second for the past 3 years in the ISM contest for the “Affiliate Excellence Award”. While 2nd place is quite an honor, the Board of Directors has aspirations of winning the ultimate prize of “Affiliate of the Year.” Considering that there are some 180 affiliates worldwide, that is a hefty goal. But, being gluttons for punishment, a team of 5 directors spent several hours a week for 6 weeks to document our performance in the tedious application process. Now all we can do is wait until May for an announcement of the winner. We know that NAPM-Alaska deserves the award; I just hope we can convince the judges at ISM. Ben Job Announcements UAA is currently accepting applications for a Procurement Card Administrator/Purchasing Agent Position. Position applications are due Feb 22, 2012 Go to www.uakjobs.com for more info.” Mar 2012 ALASKAN PURCHASER PAST PRESIDENT MARLYS HAGEN, C.P.M. Happy Fur Rendezvous and Iditarod, everyone!! I can’t believe it’s here already, but the good part is that winter is almost over. The days are getting longer! Following is a list of the open board positions, the incumbents, and the candidates. We will finalize the slate of candidates at the March pro-d meeting, and we will have elections at the April meeting. We will do the installation of officers at our May pro-d meeting. Please note that just because there is a candidate’s name indicated, that doesn’t mean that other members shouldn’t run. I don’t have the Membership Chair position listed as being open, but our Membership Chair would like to take some time off if someone else is interested in performing those duties. Office Incumbent Candidate(s) Past President Marlys Hagen, C.P.M. Marlys Hagen, C.P.M. President Sonja Love-Hestnes Tony Lazenby Vice President Anthony Bolido Anthony Bolido Secretary Tony Lazenby Sonja Love-Hestnes Treasurer Director at Large Director at Large Natalia Weems Suzanne Collier Ward Wells Natalia Weems Suzanne Collier Ward Wells Marianne Beckham Mary Beth Overturf Northwest Purchasing Education Council More details on the 2012 Pacific Northwest Purchasing Conference (co-hosted with the British Columbia affiliate of ISM) will be forthcoming as they evolve. Also, we will be having a quarterly NPEC board meeting in the next month or so (I know I said that last month but it’s still true!. So get out and “Rondy”!! Marlys Director of Membership KATHARINE A. WALL, C.P.M. Greetings ~ Several NAPM-Alaska members volunteered at the KASH for Kids radio-thon on Feb. 9th to help raise funds for the Children’s Hospital at Providence. The event was hosted by Jimmy & Roxi from The Morning Moo (107.5). Though the day started early (6:00am), it was a privilege to be there. A total of $82, 517.00 was raised and a BIG THANK YOU goes out to all the members who called in and pledged! Please Welcome Our Newest Members: James Potter, Senior Purchasing Agent for Alaska Native Tribal Health Consortium Karen Konopacki, Sourcing Supervisor for ENI Petroleum Mark Mattingley, Buyer for ENI Petroleum As we are preparing to finalize our roster counts with national, please take a moment to log into the ISM website and check your personal information for accuracy. To access the website, go to www.ism.ws and: Click on the MEMBERS ONLY tab > At the Members Only Main Page, click on login to see content > Enter your User Name (will be your membership #) and Password (will be your last name). We hope to see you at our next Pro-D meeting on March 1st! Kat PAGE 5 Mar 2012 National Association of Purchasing Management - Alaska Inc. PO Box 93047 Anchorage, AK 99509-3047 www.ism.ws/sites/alaska ® WHAT’S HAPPENING! THURSDAY, MARCH 1ST ETHICS PANEL Westmark Hotel WHAT’S INSIDE PAGE 1/2 MARCH IS SUPPLY MANAGEMENT MONTH PAGE 3 PRESIDENT’S MESSAGE PAGE 4 EDUCATION NEWS PAGE 5 PAST PRESIDENT / MEMBERSHIP Anchorage, Alaska The Alaskan Purchaser is published monthly (September to May) by NAPM-Alaska, Inc., an educational organization committed to providing purchasing and material management practitioners the opportunity to enhance their professional skills and knowledge. If you have an item you would like to contribute to the newsletter, please contact: Mike Lankford, CPSM Phone (907) 552-5362 fax (907) 552-7497 email: michael.lankford@elmendorf.af.mil