By Mare Allen
New research has found that teams are most effective when they are formed on the basis of skills, rather than on functional representation. In most cases, the skills needed will reside within a given function of the organization. The difference is, however, that although the individual with the needed skill comes from a certain function, he or she should not represent that function on the team.

Effective teams are formed around the following parameters; (a) members are selected for the specific skills needed by the goal or project, not for functional representation. The maximum size of a team should be five. The other needed skills that are brought into the team as temporary resource personnel; (b) team members are responsible to the team objective, not necessarily to functional goals; (c) the objective is clearly defined and necessary resources are made available to achieve it; (d) the team is empowered to make decisions, including the removal of non-performers; and (e) team members, not the functional managers, evaluate each other's performance.

Teams formed on the points above move from being somewhat effective to highly effective. The participation of suppliers and, where appropriate, even customers enhance the results that are achieved. Since commodity teams are set up on a more permanent basis, purchasing professionals can invite these individuals assigned to the team to become members of NAPM. They are not only eligible for membership, but also can earn the Accredited Purchasing Practitioner (A.P.P.) designation. By doing this we can help ensure that they have the necessary knowledge to be a more valuable team participant. This also helps them appreciate what is involved in being a purchasing professional.

By Scott Oldendorph, C.P.M.
Education, that was something that we all had to do and we were glad when it was over. Then we woke up and realized that if we wanted to have a good chance at a good job we would have to go back to school, just to prepare ourselves for it. But when choosing to go into the career field called “Purchasing” or other variations of it, what was the best course to get that education? Also once you have established yourself in the Purchasing field, how do you go about keeping updated and at your best in purchasing? One way of getting into purchasing was to be promoted within your company from another area of experience.  Another way to get into purchasing was when you graduated from college with a degree in Purchasing. Once you were there just to keep current you earned your C.P.M. and attended every seminar you could find time and money for. Was that the right course to get there or was there a better way? Matter of fact, with the ongoing changes in purchasing and education, what will the requirements be for the next decade?

To answer these questions into the next century and decade, NAPM-SA is honored to have Dr. Joseph Carter, D.B.A., C.P.M. from Arizona State University. Dr. Carter is the Chair, university and NAPM professor in the College of Business Administration’s Supply Chain Management Department at ASU in Tempe, Arizona. Dr. Carter holds a D.B.A. in Operations Management from Boston University and is a C.P.M. with the NAPM.  Dr. Carter is the founder and co-director of the Global Supply Chain Management Seminar at ASU. His major research interests are supplier quality management, buyer and supplier communications systems and international supply chain management systems. Dr. Carter has received many academic and professional awards and involved in research projects with NAPM, US Government and ASU Center for Advanced Purchasing Studies. Dr. Carter’s reputation in the fields of purchasing and materials management is truly global. Recently, Dr. Carter spent his summers in Eastern Europe completing a joint US Department of Transportation and Hungarian Government grant examining logistics systems design and improvement in an emerging economy.

Dr. Carter has published numerous articles as well as several case studies which are used as teaching instruments by some top business schools in the US and abroad. A few of Dr. Carter’s books are:
Electronic Data Interchange: Implementation in a Purchasing Environment
Supplier Bar Coding: Closing the EDI Loop
Purchasing and Materials Management’s Role in TQM and Customer Satisfaction
Purchasing and Supply Management: Future Directions and Trends
Purchasing: Continued Improvement Through Integration
The Future of Purchasing and Supply: A 5 and 10 Year Forecast
Environmental Supply Chain Management

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By Ralph L. Long, C.P.M
The most important event in NAPM this month is the vote on the changes proposed by the Governance Study. The vote will be cast February 2nd by the DNA's to reflect the affiliate membership desires. During our January dinner meeting I briefly stated the Boards position and ask for comments from the members attending. We then voted unanimously to vote No to the changes. This mirrored the Board's feeling. Our vote did not reflect the lack of respect for the work done by the Governance Committee, nor the feeling that the Governance does not need to be changed. Rather that there are unanswered critical issues and what seems to be a rush to change too much in too vague a manner. The move to control the organization without member input and dilute the members input to governance, the one vote one member and the quorum count of only 1000 members to represent the majority of our over 40,000 members are other points that cause the vote to be No at this time. Many other affiliates have also indicated "No" was how they would vote. If you would like to discuss this subject more give me a call or look on the web at www.napm.org. On another matter the C.P.M. Reviews have now covered Module 1 & 4. About 20 members attended each session. We plan to wait a month or two before doing Module 2 and then Module 3 to give those participating a chance to test. If you have any thoughts about the Reviews or would like learn more about them, please contact me or and other Board member. See you at the February Dinner Meeting.

This month’s speaker is Mr. Peter Behner. Mr. Behner is the acting Vice President of Operations at Ventana Medical Systems and a Consultant of Trident Consulting Group, Inc. Prior to joining Trident Consulting Group he worked at A. T. Kearney, Inc. and Arthur D. Little, Inc.

Mr. Behner holds a Diplom Ingenieur, Maschinenbau from RWTH Aachen, Germany (German equivalent to combined B.E. & M.E. in Mechanical Engineering). Emphasis on Production Engineering and Operations Research. Scholarships at NTH Trondheim (Norway) and Harvard Business School (Boston, U.S.)

His primary areas of expertise are in Operations Management in the Phamaceutical and Healthcare Industries. At Trident Mr. Behner focuses on creating competitive advantages for clients through operations. He helps companies to significantly improve their business performance by developing and implementing innovative operations and business solutions. Mr. Behner has 10 years of strong hands-on results oriented operations management experience.

Mr. Behner topic will be “Definition of New Worldwide Supply Chain for large scale Diagnostics Instrument”
Please join us for our Educational Resource Session from 5:30pm to 6:30pm, just prior to our Dinner Meeting.

By Elliott Chaitt, Global resources Chair
Let's assume that your company has evaluated the benefits and disadvantages of sourcing globally and decided to source overseas. A search has identified several potential sources for the product needed and preliminary contacts have been made with the most promising source. You have been assigned the task of leading the negotiating team with the chosen supplier with the view of establishing a long term relationship. This article describes some of the aspects of negotiating with a foreign supplier, which must be considered to achieve a successful negotiation.

If you are negotiating with a U.S.-based sales office which represents the overseas supplier the likelihood is that you will be dealing with a fellow American or a foreigner who speaks fluent English and has an appreciation of how Americans conduct business. But what if you must visit the foreign supplier's country to tour his facilities and finalize negotiations?

First you must recognize that in global sourcing you may be dealing with business people who have little in common with you. They may not speak English, some may harbor resentment against Americans, and they probably approach the negotiating process in a manner, which may appear strange to you. Americans are driven by objectives, which could differ, radically from those of the foreign supplier. We are pressured by our management to get the job done as soon as possible and achieve specific cost or profit goals. In many foreign countries the custom may be to spend much time on getting to know you and your company before "getting down to business." Profit may be accorded a lower priority. A key point to remember is that a good rapport can lead to a good negotiation and this can be achieved by adopting the attitude that "when in Rome do as the Romans do."

So, prepare for this by learning as much as you can about the country, the customs and the company you plan to visit before you leave the U.S. Learn the basic expressions in the language spoken in the foreign country. These should include how to say "Yes" and "No" and how to handle greetings and good-byes. If necessary, include an interpreter in your team who is fluent in the language, understands your company's product and the objectives of the negotiations and is loyal to your company and has no ties to those with whom you will be negotiating

In addition to the matters you would normally consider in a negotiation with a U.S. supplier some of the unique issues to consider are: What should you expect at the first meeting? What should you do about accepting and giving gifts? What customs should you be familiar with? Which non-verbal communications and actions are acceptable and which are taboo? In some countries communication between business people is conducted at arms length (as in the U.S.) while in others discussions are held at a distance of 15 inches between faces.

In many Latin countries the "embrazzo" is common. This form of greeting is similar to the respectful hug you might reserve for your mother-in-law. My vice-president refused to accompany me on a tour of Brazil because he was embarrassed by the "embrazzo". On the other hand, in Asian and Middle Eastern countries meeting-visiting participants may be seated across the room from the host personnel. In Japan seating arrangements in the conference room may be strictly by "rank." Be sure that your business card identifies you at the highest creditable management level. Also, your business card should have your information printed in the language of the country on the back. On one trip abroad I carried four different sets of business cards to accommodate the four languages I knew I would encounter.

In the conduct of actual negotiations you may find that what are acceptable contractual terms and conditions vary widely. Some items, which are commonplace in the U.S., are objectionable in some other countries. For example, in a construction contract in the United Kingdom I proposed a requirement that the client (customer) reserved the right to approve any subcontracts over a certain value. This was a "standard" provision in U.S. construction contracts but the U.K. negotiators resisted inclusion of this provision. Even my British lawyers felt that this was an affront to the contractor. I was able to obtain agreement to this provision by the intervention of the Managing Director of the Construction Company with whom I had established an excellent rapport. This provision was significance in reducing costs during the construction phase of the project.

There are numerous sources of information and guidance available to you. You may wish to start with an Internet search for useful sources. Available at many business libraries. Is Business International's profiles for over 100 countries? These are a good source for basic information about a country including areas such as political atmosphere, economy and monetary issues, culture and customs and guidelines fore conducting business in the country. These are updated periodically. The U.S. Department of Commerce and U.S. Embassies may be helpful. Don't overlook the embassy of the country you will visit and their trade missions, which may visit the U.S. Finally, seek out business people who have conducted business in the country you will visit. They may be able to provide valuable hints based on their experiences.