By Pete Petersen
As we close out another year (our last dinner meeting before summer break will be June 13) we close one chapter and start a new one in the history of our organization. This past year has brought some important changes that will affect our affiliate. Regardless of how we feel about the changes made the important thing is that our affiliate still retains it's same mission and that is: To serve the needs of it's members and the profession by providing quality learning opportunities through educational forums, career broadening experiences and mentoring opportunities.

One of the most controversial issues of the last couple years was the possible name change. Well the Name National Association of Purchasing Management was changed to "Institute for Supply Management." The logic behind the name change was to make the name more descriptive of what purchasing professionals really do in today’s ever changing environment and the move to more strategic activities.

The Governance Study brought on organizational changes the most obvious is that the position of DNA (Director of National Affairs) will no longer exist after this year.
Also we will no longer be divided into districts. Affiliates will be in designated regions for purpose of Summer Training Workshops only.

We also elected a Board of Directors for NAPM, passed a proposal to amend the bylaws regarding the elimination of the permanent reserve fund, and passed a proposal to allow electronic Transmission of proxies.

So as you can see with these and other changes it becomes more important that we as members get involved in our affiliate so that we can prosper and promote an educational environment where we can network, exchange ideas and allow each of us to leave each meeting with a bit of information, idea or made an acquaintance that can be of use to you in your profession.

Finally as I close this year I want to thank all of the Board Members and Committee Chairs that I have had the pleasure of working with this year. They all have contributed their time and efforts to make this affiliate work for you the membership of NAPM-SA. Thanks Again!

I hope to see you all at the final dinner meeting of the year at the Black Angus on June 13^th @ 6:00 P.M.

By Mare Allen
As we come to the end of our 10-month session, we should take some time to remember all the things that occurred during this 2000-2001 year.

We know that the Governance study was going to pass through with flying colors, and then with the following changes of our Districts in to Regions. With those changes taking place in the U.S. with the new Regions, the position of DNA, Director for National Affairs, will no longer be required.

You will continue to receive information on the National level from their web site www.napm.org and of course by contacting your affiliates web site www.geocities.com/napmsa/ or anyone on the back of this newsletter.

On April 11^th the vote was passed through to change the By-laws and our NAPM name to "ISM" (Institute for Supply Management).

This year the affiliate changed their location of the dinner meetings. It was not as much of a success as we had hoped in getting more attendance. So for our up-coming year we are going to change that location again. We are going to rotate with three different locations in hopes to reach more members.

Changing out three Board of Directors at our June meeting is something we do every year, and each year it seems like it is getting harder each time. We need your membership involvement to be successful.

Changes can be good but then again they can be not be so good. What it comes down to, is what you do with those changes and how you can make it to your advantage.

I really hope to see a lot of people at our last dinner meeting on June 13^th. It will be held at the Black Angus on Oracle and River. This will be a good time to meeting the new board members, volunteer some of your valuable time and share some ideas for next year speakers/classes & seminars and also to show support to your local affiliate. Have a good meal with some great company.

Name  __________________________________________________________________________

Company  ______________________________________# Attending________________________

Phone __________________________________________________________________________

Area I: Commodities
Global sourcing may be a good strategy if:

1. The local market is capacity constrained
2. The primary source for the product you're buying is offshore
3. A global source would balance a U.S. supply point
4. Fundamental cost advantage of an offshore supplier
5. Your local suppliers are simply "too comfortable"
6. Savings exceed 10 percent (lesser savings may not merit the added cost/risks)

Global sourcing may not be a good strategy if:

1. Your organization will not support periodic visits to the supplier
2. The “market” quickly adapts to global price levels

For commodities, global sourcing can often be a good idea if resulting net product costs improve your competitive position. Keep in mind that your awareness of global price levels may be a sufficient factor in ensuring that you achieve equivalent pricing from your local supplier. The largest domestic user of tinplate (tin-coated steel for packaging) finds it best to purchase 100 percent of requirements from domestic tin mills because they’ve been able to negotiate with domestic suppliers, using global prices as leverage.

Area II: Strategic
Global sourcing may be a good strategy if:

1. You develop a proven "best global supplier"
2. Your product quality is improved
3. The purchase can yield a lasting competitive advantage
4. The resulting business "alliance" yields other supply chain advantages
5. Your relationship can develop a continuing stream product improvements

Global sourcing may not be a good strategy if:

1. Quality is likely to prove erratic
2. You lose important advantages with existing key domestic suppliers, such as sharing technologies or priority treatment in shortage conditions
3. If it's not contributing to competitive advantage, global sourcing may not be a great idea. One should expect to develop additional benefits to cost savings.

Area III: Operational

Global sourcing is usually not a good idea for low value items. You may find it useful to specify or approve foreign-made items supplied by a local distributor, e.g., stainless steel fittings, but it would generally not be cost effective to attempt direct sourcing of low dollar, occasional purchases.

Area IV: "Bottleneck" Commodities
Global sourcing may be a good idea if:

1. You solve a nagging, significant problem (quality, technical, customer satisfaction)
2. A "one time" purchase (purchasing a piece of capital equipment from a foreign manufacturer)
3. You gain insight into global markets and business practices that adds to your organization's business portfolio
4. An initial purchase will develop a business relationship that opens a door to new technology and product improvement

Global sourcing may not be a good idea if:

1. Short lead-time, high flexibility is required
2. Your colleagues are not involved and do not support the initiative
3. Purchases in this category are often ones that impact an internal team or product group. Purchasing should not be a "Lone Ranger" in initiating global supply alternatives that will require new time and resource commitments for other departments.

Global Sourcing Relationships

Global sourcing forces purchasing and supply managers to be engaged in the economies and cultures of distant countries. One would do well to recognize that there are three stages in cross-cultural relationships. First comes the awareness of cultural differences. After awareness, you must develop knowledge and understanding of the differences and how they may impact your business relationship. Finally, comes skill development when you learn and demonstrate your global acumen. Too often global sourcers jump to the conclusion that awareness is enough and continue to practice American ways of doing business, in English, with little recognition of the opportunities thereby missed. When considering whether or not to source globally, know that your success may be dependent on your commitment to all three of these areas.

The next Satellite Seminar will be June 14 2001 entitled "Supplier Relationships Selection and Development."

This program supports your organization's strategic goals by establishing and nurturing relationships with suppliers that result in a high level of support for needed commodities and services. This satellite seminar takes a close look at market trends and strategies for selecting and working with suppliers. It will outline the elements of a supplier development model and address issues such as supplier diversity, minority business development, measurements and goals, and the future of purchasing partnerships.

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.