By Scott Oldendorph

Happy New Year, or should I say T minus 365 days to the year 2000 and a new life with or without our computer. The last year of the century is full of interesting challenges ahead for us on our jobs, careers, families, southern Arizona and the NAPM-SA. Have you made those promises to yourself and others around you on how you are going to do things differently? If not you better hurry up. If it is too much to comprehend, just follow these four steps to sanity.

1. Do the doable.
2. Control the controllable.
3. Don't feel guilty about not getting everything done.
4. Be nice to yourself.

Another thing to look at is your involvement with NAPM-SA. Have you been needing to build your Purchasing networking contacts? Have you been losing out on hearing the great speakers at our dinner meetings? Have you been losing out on the informative educational workshops and seminars? Have you been working on your C.P.M. certification? Have you been wanting to get more involved with your local NAPM affiliate in Tucson? Well NAPM-SA is looking for the few, the many to become more involved and volunteer their skill, their effort, and their precious little available time. Come to our next workshop and dinner meeting and introduce yourself and say I want to become involved.

By Scott Oldendorph

As a purchasing professional we have all heard the term "Supply Chain Management" and how it has been supported by our NAPM national headquarters. But what is it really? Is this something old with a new cover to sell it or is it really something new that we must pay attention to. Is Supply Chain Management a demon that is here to haunt us and cause us to lose our purchasing identity; or is this a career opportunity for the purchasing professional not to lose sight of because they have not been able to evolve? If these are plaguing questions that have been eating at you then come and join NAPM-SA at the Doubletree Hotel on January 13, 1999 at 7:00 pm and listen to Ronald Friedman address these questions.

Ronald Friedman is a recognized domestic and international authority on purchasing and supply chain management. Ronald is the CEO of North American Business Services in Scottsdale, Arizona which provides management advisory and in-company training services to over 10% of the world's 500 largest companies, hundreds of smaller organizations and government. This training Ronald provides includes supply chain management, materials management, procurement, forecasting, inventory control, maintenance, manufacturing, project management, traffic, team concepts, warehousing and distribution. Before Ronald started to share his knowledge at over 1800 seminars, he served as the Vice President of PepsiCo International and in nine key positions with Textron, Coca-Cola, Stone & Webster, Westinghouse and a Commander in the US Naval Reserve and graduate of the US Naval Academy.

Ronald has developed certificate programs for industry and government in the above areas at

Arizona State University, University of Nevada, Texas Tech University, Duquesne University, Baldwin Wallace College, and Ivy Tech State College. His seminars and certificate programs have been sponsored by NAPM and APICS, American Management Association, Canadian Management Center, Frost & Sullivan (Europe), Strategic Forum Expertise (Asia), INC magazine and McGraw Hill. He has even authored the books: "Cost Profit Analysis" and "Inventory Opportunity Questionnaire". His credentials go on and on, but with a high powered speaker like Ronald Friedman, this is not an evening to miss.

Ronald Freidman
North American Business Services Inc.
4839 E. Greenway Rd., Scottsdale, AZ 85254-1685

Name _________________________________________________

Company _____________________________ # Attending_______

Phone #________________________________________________

Preferred
Entree(s) _______________________________________________

By Ralph L. Long, C.P.M

One of the key goals of all effective organizations is to advance open communication. So how does it work within NAPM? How does the membership get ideas or suggestions to the Chiefs at National? Stand by I'm about to tell you. The answer is through the local DNA to the District Council and then to the National Board of Directors. The process isn't complicated considering a membership of 45,000 and a nation-wide organization. A member needs only to discuss the issue with a local Board member or the DNA directly. If the issue is a matter that needs to go to the National level, the DNA will get the approval of the affiliate board and create either a suggestion or recommendation.

A suggestion is provided only for consideration where a recommendation requires additional approvals and action. The DNA carries suggestions and recommendations to the District Council for their review and approval/disapproval. The District Council is composed of DNA's from each of the affiliates in the District. If the suggestion/recommendation is approved by the District Council it goes to the District Board of Directors. Three Districts must approve a recommendation before it is placed on the agenda for consideration. The Board may approve, disapprove or take other appropriate action. The 12 District Directors are part of the National Board of Directors so if three Districts approve a recommendation you know they will follow up and make sure the issue gets a fair hearing.

Sounds like a long road but it isn't really that bad. Remember the dues increase. That issue went through this process and the "grass roots" membership got the Board to reverse themselves. The DNA's main responsibility is to be a go between the affiliate and the National organization. The District Council meets three times a year with the next meeting to be in March.

If you have any concerns, questions or suggestions let me know. Maybe we have the answer or maybe we will need to go forward. Now you know the process. See you at the next dinner meeting.

You're a purchasing professional and not interested in being in the Supply Management field but as sure as that is true, change is going to a effect all of us. Several professional organizations are considering adding supply management to the name, goals and visions of their organizations. Are we going to stand by and let that happen? Well maybe we won't have a choice.

In a recent talk by Dr. Dale Rogers, Dean of the Logistics School, University, of Nevada, Reno the future of purchasing is closely tied to supply management. The problem many of us have is with the traditional roles of purchasing and supply management. Purchasing buys things at the right price, quality and terms. Supply Management is in the physical handling, controlling, security and reporting of materials. Clear, understandable, easy to establish boundaries.

Wait, business is changing and our views may need to change. Companies are down sizing, cash flow is more important, products life cycle is reducing every day there may not be time for the traditional requisition/P.O. cycle. What do you think the life cycle of a pair of Nike shoes is?

Actually 60-90 days. Think of all the products development, retooling, packaging materials, manufacturing, retail distributions, advertising and finally the product is on the shelve at your local dealer. Sixty to ninety days later a new product is coming down the line and replaces the model just released. What part do you think the buyer has in this sequence?

Another change that's taking place is that many companies expect the supplier to hold the inventory, assist in product development and form a partnership in the successful marketing of a product. Dell computer maintains five days of inventory and is planning to reduce to three days. Gateway advertises they make computers to order. These companies do not intend to maintain large inventories. The implications for purchasing are that we can not be just order placers, we must be more into supplier management. Establish contracts and let the user (customer) place the requirement. Most automobile manufactures out source as much as possible. Their interest is in managing the brand, assembly and marketing. Their suppliers must manage the inventory, react to rapid design change, and provide the parts directly to the assembly line as it's needed. Where was your "American" car made? Parts came from all over the world.

Modules one through Four	$820.00	(two x 7 wks x 4 hrs)
Modules one and Two	$425.00	(first 7 wks x 4 hrs)
Modules three and Four	$425.00	(second 7 wks x 4 hrs)
Other module Combos	$225.00	Ea.

Call Ralph Long at (520) 206-4759
Or Ed Cocca at (602) 996-4665
For additional information.

By Elliott Chaitt

Within an organization "pressures" can develop for overseas sourcing. Some of these are need for lower prices as a means for improving profitability or improving competitiveness; the need for worldwide distribution usually coupled with a desire to expand marketing; make/buy decisions which involve a foreign source; capacity limitations dictating a need for expansion - perhaps overseas; quality improvement by sourcing with a foreign supplier; and gaining access to technology not available domestically. These pressures can occur singly or in combination.

Frequently foreign sources are used to increase competition by broadening the supplier base. The buyer should play a role in evaluating overseas sourcing opportunities regardless of which internal pressure(s) dictates that global sourcing is needed. Some of these motivations are discussed below. Whatever the motives may be, a global sourcing program can only succeed if there is top management support.

In the past most foreign sourcing was motivated by the desire for lowering labor costs. Labor intensive assembly operations would be contracted to companies in countries with low labor costs — usually "third world" countries. This practice continues today, but in addition, many products which could only be sourced in the United States, Europe or Japan can be procured from emerging nations.

Immediately after the conclusion of World War II the only source for materials was in the United States. With the recovery of European and Asian countries from the effects of the war they rapidly became sources for the materials then in demand. But as time went on these countries and others began to develop industries which competed with U.S. products and in many cases were substantially lower in price and sometimes better in quality. This served to eliminate U.S. companies from competition and forced Americans to buy from foreign suppliers. An example of this phenomenon is the production of television sets. Also, technology was no longer uniquely American. Japan and other countries were developing new and better materials, products and services in the fields of machine tools, electronics and many other industries. Today U.S. companies must source overseas for many requirements only available abroad.

Many domestic firms with extensive worldwide marketing operations find it expedient to procure materials or services from the countries in which they sell their products. Frequently they must do so because the government of the foreign country requires that for an out-of-country firm to sell in their country they must also buy from that country. This process, called "countertrade," has developed into an international complexity. Often purchasing professionals are cast in the role of marketeers who have to find customers for those products which they must purchase from the "target" country so that their company, in turn, can sell its goods to customers in that country.