NAPM-SA in conjunction with various purchasing associations worldwide, will be celebrating the month of March 2000 as Purchasing Month. This special month recognizes the role of purchasing and supply professionals in helping to build better business and government in Southern Arizona and throughout the United States.

Purchasing and supply management professionals make important contributions to the quality, efficiency, and profitability of small and large organizations and businesses in the public and private sectors across the United States. Nationally, purchasing and supply management professionals are responsible for managing and monitoring billions of dollars’ worth of goods and services every year, which has much influence on the U.S. economy.

NAPM-SA is a not-for-profit association representing approximately 175 members, purchasing and supply professionals in manufacturing, government, educational, institutional, and service organizations throughout the Southern Arizona area.

In recognition of Purchasing Month, NAPM-SA will be holding a Tabletop Trade Show at the Viscount Suites Hotel on Broadway. March 9, 2000 starting at 6:30 P.M. and going until 9:00 P.M. Come join us and meet various suppliers who are here to make your job a little easier.

By Scott Oldendorph, C.P.M.
NAPM-SA has invited Jerry Brink who was formally in charge of the State Procurement Office for the State of Arizona to talk to us about the differences between the public and private sectors of purchasing and contracting, which will be held at the Viscount Hotel on March 8, 2000, from 5:30pm to 6:30pm.

(PLEASE MAKE NOTE OF THE NEW LOCATION)

Jerry was raised in Kansas City, Missouri, served as a Marine in Vietnam. He received degrees from Missouri State University in Political Science/Speech Debate, a Juris Doctorate degree in Law from University of Lavern in Pomona, California and a Masters degree in Material Management & Contracts from the Florida Institute of Technology. Jerry worked for 3 years in his family's electrical engineering business between his military service and going to law school. After law school Jerry was the Senior Manager of Subcontracts for 5 years with Rockwell International in El Segundo, California working on the Space Shuttle and B1-B bomber programs. Then Jerry worked for 12 years as the Director of Contracts with Harris Corporation in Melbourne, Florida working on top secret DOD Space Shuttle and Space Station programs. While at Harris, Jerry negotiated international contracts in England, Canada, Mexico and Korea, Currently since 1997 Jerry has been the State Procurement Administrator with the State of Arizona in charge of their State Procurement Office.

NAPM-SA would like to invite everyone to attend our Educational Resources session from 5:30 to 6:30pm at the Viscount Hotel with our Table Top Trade Show to follow immediately after the Educational Resource session. Come join us and network with purchasing professional in Southern Arizona.

Name________________________________________________________________________________________

Company ______________________________________________________#Attending______________________

Phone#_______________________________________________________________________________________

Preferred
Entree(s)_____________________________________________________________________________________

Purchasing Manager
Engineering Construction
- Positions in Trenton and Knoxville
- Must have strong FAR/DAR and engineering/construction
- exp w/knowledge of Davis Bacon clauses
- $60-90
- Job code 9/07/002

Supply Stream Specialist
- Pulp/paper/lumber mfg
- Degree required
- Prefer paper industry exp
- Materials mgt and MRO
- $45-60 + profit sharing
- Job code 9/09/002

MN

Purchasing Site Team Leader
- Pulp/paper/lumber mfg
- Prefer CPM
- Must have paper or lumber industry exp
- Strong planning/forecasting
- Exp w/capital equip purchasing
- $45-65 + profit sharing
- Job code 9/09/003

PA

Purchasing Agent
- Pharmaceutical mfg
- Must have strong capital equip, MRO & contract services exp in mfg
- Prefer no relocation-Philadelphia area
- $40-65
- Job code 9/10/001

NJ

Senior Buyer
- National retailer
- Must have strong retail fixture & construction
- Resp for $50MM
- $70-110
- Job code 9/10/002

MI

Purchasing Agent
- Automotive supplier
- Strong MRO and capital equipment purchasing exp
- Prefer auto OEM/supplier exp-limited relocation-Metro Detroit area
- $35-55
- Job code 9/10/003

WA

Materials Manager
- Home building materials mfg
- 4-7 yrs materials mgt resp
- Prefer CPM/CPIM
- $60-90
- Job code 9/11/001
- 55-70
- Job code 9/11/002

IL

Purchasing Agent- Plumbing contractor
- Must have working knowledge of building materials purchasing
- Prefer background in plumbing supplies and contracts
- $40-55
- Job code 9/11/003

IL

Purchasing Agent- Plumbing contractor
- Must have working knowledge of building materials purchasing
- Prefer background in plumbing supplies and contracts
- $40-55
- Job code 9/11/003

WI

Purchasing/Traffic Manager
- Recreational equipment mfg
- Degree, prefer CPM
- Must have metal fabrication and/or plastics industry exp
- Working knowledge of MRP/JIT
- $50-65 + bonus potential
- Job code 9/11/004

DE

VP Purchasing
-National consumer goods mfg
- Prefer MBA
- 10+ yrs exp at Director or VP
- Responsible for over $200MM in mfg environment
- $100-150 + bonus potential
- Job code 9/12/001

OH

Materials Manager
- Computer manufacturer
- Degree, prefer CPIM
- Must have electronics or computer mfg industry exp
- 3-5 yrs Material mgt exp
- Strong JIT/MRP skills
- $80-110 + bonus potential
- Job code 9/12/002

PA

Purchasing Manager
- Software Development
- Responsible for all corporate purchases
- Requires strong contract mgt and facilities mgt exp
- Must be in general Philadelphia area-
   no relocation or interview
   expenses paid
- $65-85 + bonus
- Job code 0/01/001

TX

Consulting Manager
- International Accounting/Consulting
- C.P.M. or CPIM required
- MBA preferred
- 50-75% travel
- $70-100k + bonus potential
- Job code 0/01/002

By Ralph L. Long, C.P.M
The Review Sessions have been well attended and for the most part the people attending are seeking a little help to get their C.P.M. certification. However a remark made following the last session hit home and led to this article. The remark was that it was refreshing to just review purchasing procedures that you may not have thought about in a while. As a professional we are expected to know many things and be able to provide advise immediately on a variety of subjects relating to purchasing. Some of which we may not have dealt with in a long time. Maybe that’s the essence of being a "professional". As the "facilitator" for the Reviews I get very involved in the material covered each session. Not from the aspect of memorizing the information but thinking about how the material could be used in my job or by my contemporaries. In that train of thought, you all are invited to the next review even if your goal is only to review the issues in a specific aspects of purchasing. The next review will cover Module 2 of the C.P.M. Study Guide. Subjects include: Management of a Procurement Department, Goals & Objectives, Workflow & Controls, Budgeting, Forms, Motivational Theories, Styles of Management, Personnel Supervision Issues. And more. If you are working on certification or just want to review purchasing processes join us at the next C.P.M. Review Session. Notice of time and place will be in this Newsletter. You will be impressed, as I have been, by the important job being done by the purchasing professionals in NAPM-SA and their desire to continually improve by expanding their education.

What are the problems that other buyers may have found a solution you could benefit from? Jot them down along with your name and phone number and fax to me at 520-206-4759. The vast amount of experience and expertise in NAPM-SA may be just the thing to answer your problem. Thanks.

All of us in the purchasing world can be proud of the significant contribution we make to the "bottom line" and the respect earned through the high ethical standards of our profession. Most of us are doing more with less, getting more involved with cross-functional teams, meeting the challenge of keeping up with the fast changing technology, and still finding time to do an incredible job with the "special" projects our boss asks us to do. Your efforts may sometimes seem unnoticed, but the professionalism of the purchasing function is well documented, and you can be proud of your involvement.

It is not enough to just administer contracts or place orders. You must constantly keep up with new purchasing methods, developing new supply sources, contributing to product development and working with engineering, finance and marketing. By becoming a major element of the business team and staying in touch with evolving technologies, you add ever increasing value to your role in the success of your organization. So where do you get information on all of these new areas?

Well, one of the best things you can do for yourself and your career is your association with NAPM. Your membership is a good start, but without active participation, you miss out on the opportunity to share experiences and ideas with fellow purchasing professionals, hear guest speakers bring their insights to specific technical aspects of our business, and learn how others are coping with similar problems. And besides all that, NAPM members are a great group of people. Come and join us this month and see for yourself.

(Editor’s Note: This article appeared in the March 1996 issue of the Desert Purchaser. It was written by Ralph Long, our Director of National Affairs and former president of NAPM-SA. Ralph’s message is still "right on" and appropriate for Purchasing Month 2000.)

By Elliott Chaitt
The question has been asked on numerous occasions "Why educate the U.S. buyer in global sourcing?" The answer is that today we live in an international economy and expertise in global sourcing is becoming increasingly more important. Unfortunately, the typical U.S. purchasing professional has little or no experience in offshore buying.

There are exceptions, of course. Within certain U.S. industries foreign sourcing is a significant part of the buyer’s daily activity. These buyers use their specialized knowledge of international commodity markets and international buying techniques to make sound buying decisions in the worldwide arena. Unfortunately buyers with these skills are in the minority. Contrasted to European buyers, most Americans buyers are "amateurs" in global buying. European countries have common borders with their neighbors and given their limited natural resources they have learned to depend on other countries for the materials they need. Long ago European buyers developed the skills needed to deal across international boundaries and their Asian counterparts have kept pace.

Today American industry is faced with increased global competition for existing and emerging markets. Throughout the world there exist regional trade pacts, economic communities and trade agreements which adversely impact the ability of the United States to compete. New arrangements designed to improve the competitiveness of the participants continue to develop between foreign countries. Frequently these arrangements are at the expense of the U.S. as are import requirements imposed by some of these countries which further limit U.S. access to overseas markets.

For example, subsidies and low cost loans are paid to ailing and start-up businesses by foreign governments and banks, which work in cooperation with industry to promote exports. This is prevalent among Pacific Rim countries such as Japan, Korea, China, Taiwan and other countries. Import restrictions based on environmental or public health "concerns" block U.S. goods from entering some foreign countries. And some nations simply impose high tariffs or low quotas on competing imports. These and other restrictions tend to deny foreign markets to U.S. goods.

In order to ship U.S. made products into some countries the U.S. exporter must engage in countertrade. This is a practice which is illegal when carried out between U.S. companies, however, it is considered normal business between nations. In essence it is an arrangement where the country receiving foreign imports requires that the exporting country buy a specified amount of product from them (e.g. the U.S. exports machine tools to Brazil and Brazil requires that the U.S. buy a prescribed quantity of Brazilian coffee).

The objective of countertrade is to maintain the balance of trade between nations. Typically, the responsibility for implementing countertrade arrangements falls upon the exporting company. The countertrade "product" may actually be a service (e.g., India exports millions of dollars of computer software programming services in return for Western manufactured goods). However viewed, countertrade places still another obstacle in the path of the U.S. company seeking to penetrate foreign markets.

In numerous ways the U.S. imposes roadblocks on itself, which impede the ability to penetrate foreign markets. Many U.S. producers are understandably concerned with short-term profits in order to satisfy investors’ demands for dividends. If a program does not produce a profit after three or four calendar quarters they abandon the effort. They are unwilling (or unable) to make the long-term commitment and investment needed to capture foreign markets. Japan on the other hand, has invested as much as five years to take over a U.S. target market and has underwritten billions of dollars in the process.

Further aggravating the problems facing American producers is that the U.S. is no longer as self-sufficient as it was in the past. No longer does the U.S. have a monopoly on technology and production and we have become dependent on other countries for many raw materials and commodities. Add to this that in order to gain or retain market position the U.S. needs to sell its goods competitively on a global basis. This frequently means that the cost of producing goods must be reduced to meet foreign prices. One way of doing this is to source materials, goods and services wherever in the world the best value can be obtained, considering quality service and price.

America’s purchasing professionals who are called upon to deal on an international basis must educate themselves in the intricacies of global sourcing. Their short-range objective should be to acquire a basic understanding of international buying so that they are better prepared to help when their organization is faced with making global sourcing decisions.