By Pete Petersen
Remember the days when you bought in volume to get a discount or you would squeeze your supplier until he dropped his price. Purchasing was calling a vendor placing an order and cutting a purchase order.

Today Purchasing has evolved into a much more complex animal. Purchasing involves getting to know your customer's (both internally and externally) business. It is forming alliances and working as a team with those we use consider our adversaries. It is planning, scheduling, negotiating and contract management. Sometimes it may mean getting involved with second and third tier vendors. Then just as you think your getting a handle on it you have the whole business of E-commerce, B2B, reverse auctions etc. How do keep on top of it all? Education!!

You can keep up to date on the latest trends in the purchasing field and in business by reading periodicals like "Purchasing Today", attending seminars, getting your C.P.M. Certification, attending dinner meetings and networking with others in your profession.

NAPM-SA goal is to provide opportunities for you to further educate your self in the purchasing profession. We will set up a C.P.M. review class if an interest is shown (contact Ralph Long C.P.M. @ 206-4759). NAPM-SA will hold a Satellite Seminar on April 5th entitled Streamlining Purchasing Processes with Up to Date Practices and Technology Integration (see insert). Education is an on going process that should never end.

In Closing NAPM-SA is looking for people interested in helping out on The Board of Directors or one of the chair positions just contact one of the Board Members if you are interested. AND FINALLY DON'T FORGET TO VOTE (SEE BALLOT INSIDE) EVERY VOTE COUNTS!!

By Scott Oldendroph, C.P.M.
It is said that the one thing that you can count on is change and change itself. For some of us that have been in Purchasing for a while; where has change occurred on your job and how you do that job. Remember when the only way you could communicate with your supplier was by telephone and/or typing a letter (no mistakes allowed) then sending it through the mail and waiting for the long response mail. Or remember when the only research source guides to find suppliers were the telephone yellow pages, trade magazines and the 30 large green volume Thomas Register books, of which were all obsolete by publication time. Then the evolution started again with the fax machine, the computer, next day air deliveries and stores/businesses having extended hours and working weekends. With information flowing faster and the requesters really wanting it here tomorrow; the purchasing professional needed to have some better tools for getting quality information, instantly.

Just short of Star Trek's "beaming it over" our brave new world has electronic "E" commerce, e-mail and the ever expanding Internet.

Now sourcing research, quoted pricing, transmittal of purchase orders, just like our 24 hours television news is now instant and live.

Now the term JIT can really be controlled and implemented just in time. So to survive in today's new world you have to be brave, turned on and tuned in. If everything still is a little too fast and obscured to comprehend you need to come and listen to our next speaker on Wednesday April 11 at 7:00 pm at the HomeTown Buffet at 5101 N. Oracle Road in Tucson.

Daniel Cantu is the Director of Electronic Commerce, Central Region for Office Depot's Business Services Division in Fort Worth, Texas and is responsible for electronic commerce operations in 32 states. Daniel has a BS in Computer Science and Business Administration and has more than 20 years in the Computer Technology field with management positions in Healthcare, Manufacturing, Insurance, Retail and as an EDP Auditor for 2 International CPA firms. Before his current position, Daniel was in charge of worldwide large project and system integration of new technology (1987-1994) for Verizon Telecommunications including Hong Kong, Taiwan, Germany and South America and is able to both Spanish and Chinese. In 1996 Daniel joined Office Depot as their Regional IT Manager and now Director of Electronic Commerce responsible for the integration of E-Procurement into the Office Depot suite of products.

Name_______________________________________________________________________________________

Company_______________________________________________________# Attending____________________

Phone_______________________________________________________________________________________

By Mare Allen
For the first time in our association's history, members will have the opportunity to cast their vote their way. This vote addresses some important issues, including the association's proposed name change, and you have the power to help decide the issues.

All NAPM members will receive a mailing in early March explaining the issues and the voting process. All votes will be proxy votes. In the proxy vote system, NAPM members will instruct the NAPM Secretary to vote their proxies as they have specified on the ballots. The Secretary will vote the proxies on April 28, 2001, at NAPM's 86th Annual International Purchasing Conference in Orlando, Florida. Members are encouraged to vote their proxies when they receive their ballots in the mail. We sincerely urge everyone to take a few minutes and complete the ballot and return by mail, or you can also vote on-line @ www.napm.org

"Please don't let this very important opportunity pass you by."

By Myles Zimmerman, C.P.M.
In April we will be presenting a video of an NAPM "Satellite Seminar" Series entitled, "Electronic Commerce, Electronic Business, and Collaborative Commerce." These seminars are usually 3 to 4 hours in length, but we will only view the 'case study' section of the video. This is a very informative video, as are the Satellite Seminars. If you have wanted to attend a Satellite Seminar or have wondered what they are, this is your chance to get a glimpse of these very effective presentations.

These seminars are held approx. 3 or 4 times per year and present a highly focused, in-depth study and review of the specific subject matter by knowledgeable business leaders.  Since these seminars are 'live', relevant questions can be faxed into the panel of experts and they will offer answers within minutes.

Please join us April 11th for "Buffet and a Video" - (kinda like Dinner & a Movie)

• Supply chain will have a common set of core performance measures tied directly to individual organizations' strategic and business unit performance.
• Some type of common performance metrics will need to be established, in particular for supply chains in specific industries.
• Common performance measures will be tied to strategic business measures.
• As supply chains are developed, new supply chain benchmarks will need to be developed and the tied to particular organizational goals.
• Profit measures will not be routinely shared in the supply chain.
• Integrated information systems will facilitate the reporting and use of these measures.
• Market price changes at the final-*customer level will be transmitted quickly up the supply chain and be a key driver of performance.
• Performance metrics other than cost will continue to be difficult to define.

The next Satellite Seminar will be April 5, 2001 entitled "Streamlining Purchasing Processes with Up-to-Date Practices and Technology Integration."

This program examines how to save time through electronic transactions by making use of today's procurement card and Internet opportunities. It will examine what are the highest profile opportunities, how to source, how to facilitate transaction and data submission, as well as managing financial settlements and expenditure reporting. Panelists will discuss how to use technology for data management and how it can streamline purchasing processes.

The Satellite Seminars are an excellent learning opportunity at a very reasonable rate only $30.00 for members and $35.00 for non-members. If you have any questions contact Pete Petersen @ 648-8590 or Pancho Hernandez @ 733-1733.

There are polarized views of what the future holds for organizations that are planning to optimize the supply base on an international basis. One possibility, as "The Future of Purchasing and Supply: A Five- and Ten-Year Forecast" suggests, is that organizations will encourage current domestic suppliers to develop on a global basis. In some cases, the purchasing organization will encourage these suppliers to help develop native suppliers at the local level. Either way, the supply base will be located geographically close to the purchasing organization's operations in that area.

One other possibility is that certain areas of the world will naturally develop as leaders within particular commodities or industries, with the rest of the world sourcing from that supply base. In other words, countries or regions of the world will focus on their core competencies, based on where raw materials naturally lie. This concept was articulated by Jagdish N. Sheth, Ph.D., professor of marketing in the Goizueta Business School at Atlanta's Emory University, at last year's NAPM Annual International Purchasing Conference. He said certain products will naturally shift from being produced where the market is, to where the materials are. For example, Germany might emerge as the automotive capital of the world, with other automakers essentially conceding to that fact and allowing mergers and acquisitions to transpire that move the entire auto industry to Germany. Sheth says the United States will excel in financial services, knowledge services, and telecommunications. Traditional industries, such as agriculture, may reside solely in South America, for example.

The one factor that may end up carrying the most weight in the direction of global sourcing and global supplier development is supply chain costs. If several tiers within a supply chain move to or develop in a certain region, purchasing organizations may see incredible price reductions, but the longer the geographic chain, the higher the supply chain costs, such as travel expenses or supporting infrastructure costs. "Transportation costs might prove to be a limiting factor," says Bendorf. "People are making all kinds of advances in technology or process, but there's only so much you can put on a highway or on a cargo ship."

On the other hand, if the world supply markets become fragmented into different countries or continents, transportation costs of moving the product down the supply chain could be the component that distinguishes competitive advantage. If all the automobiles and automotive components are manufactured in Germany, supply chain costs for the customer in Europe will be much lower than for the customer in Asia. At some point, would demand force supply operations to begin again in other parts of the world?

A secondary effect that is likely - and actually already taking place - is that purchasing organizations may come to have more and more invested in the regions where they operate and develop suppliers. Executives talk about the need to build local infrastructure, schools, and communication lines before they can hope to fully develop suppliers and get down to the business at hand. The depth of involvement, awareness, and financial resources all become part of the supply chain costs which must be considered.

Are there global opportunities for each supply professional's situation? Perhaps. Will the clothing manufacturer, the hotel executive, and the banker all benefit from a global strategy? Most definitely -as long as they realize that a global strategy doesn't necessarily mean the same for each. Whether they choose to source from a particular market, develop existing suppliers to meet new requirements, or - after analysis - avoid the issue altogether is unknown. The only certainty is that complexities in sourcing, contracting, and operating a business multiply across borders, so knowledge is the name of the game.

Excerpt from April 2000 Purchasing Today, page 43 By Roberta J Duffy