By Pete Petersen
The professional is characterized by the ability to perform technical skills in an ethical manor. Ethical is defined as conforming to accepted professional standard or conduct. To achieve a professional stature the purchasing practitioner must adhere to a set of ethical standards to guide our individual and group action and never give the perception of misconduct.

One of the goals of NAPM is to convey the principles and standards which we consider just, fitting, and correct. An underlying precept is that a member should never use his or her position for personal gain.

While no set of principles and standards can fit all situations sometimes just good judgment will do. When in doubt consult your manager, professional colleagues and your own conscience.

Remember these three major points:

1. Loyalty to your organization
2. Justice to those with whom you deal
3. Faith in your profession

By Scott Oldendroph, C.P.M.
It is said that the only thing you can count is change and change itself. So as a business grows the business realizes that it must change to keep current with events, change to keep up with the competition and change in its products or services and it's processes to keep at it's peak performance. To do this a business may have to reengineer itself by looking inside itself to analyze it's processes, products and services.

On the Tucson political scene over the past 10 years we have viewed the water wars going on between the different types of water. On the existing side was the Tucson ground water which would be running out as our population grew. On the other side was the "CAP" or Central Arizona Project importing water in from the Colorado River. When you inserted quality and environmental issues and inability to satisfy the community that you served, the City of Tucson's Water Department was ripe for reengineering.

On Wednesday night May 9th again at the Hometown Buffet at 5101 N. Oracle in Tucson, NAPM-SA is proud to present

David Modeer, Director of the City of Tucson's Water Department. David will be talking about how Tucson Water like many businesses today are having to reengineer themselves. David has significant experience with western water issues, including operation of surface water facilities, groundwater systems and recharge projects. After this talk you will never look at a glass of water the same way again and appreciate the effort of what reengineering does.

David Modeer graduated from Creighton University in Omaha,NE with a BS in biology, chemistry and philosophy and a pending MBA at Bradley University in Peoria,IL.

From 1974-76 David was the manager of the Illinois-American Water Company's Cairo District. Then from 1976-80 he became the Customer Service Superintendent and 1980-84 as the Operations Manager for the Illinois-American

Water's Peoria District. From 1984-91 he served as Vice President of Operations for the American Water Work's Western Region including water systems in Arizona, California and New Mexico. From 1991-98 he served as Vice President of Operations for the Pennsylvania-American Water Company, a subsidiary of American Water Works which operated 32 water filtration plants and 35 separate distribution systems. In August 1998 David Modeer became the Director of Tucson Water and has turned around a troubled water company through reengineering and good management.

William Joffroy, Jr.

Wednesday, April 18th, 2001
At the Presidio Plaza Hotel
(Formerly the Holiday Inn Downtown)
181 West Broadway
Structure parking located just west of the hotel

William Joffory, Jr., President of William F. Joffroy Customs Brokers
Speaking on those border issues currently affecting southern Arizona businesses and Maquiladora operations

$18.00 per person
Sautéed Breast of Chicken in a Fresh Herb Crust finished with Sun-Dried Tomato Basil Cream Sauce. Served with Yukon Mashed Potatoes and Fresh Vegetables
Or
Long-simmered Beef with Chipotle Seasoning.Served with Traditional Toppings, Flour Tortilla, Southwest Beans and Spanish Rice
Networking 5:30 PM
Dinner 6:00 PM
William Joffroy, Jr. 6:45 PM

Cost due to no-show with be assessed back to the individual
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Join us May 9, 2001 for a Tour of Texas Instrument's Tucson Fabrication, Assembly and Test Facility

If you are interesting in attending the C.P.M. Review Class that Ralph Long will be teaching.Please make sure that you contact Ralph at (520) 206-4759.

By Myles Zimmerman, C.P.M.
In May, we will be presenting a professional development session that overviews volunteerism. This will show the importance of NAPM resources, the monthly Dinner Meetings and the coordination by the Board of Directors.

Every year we look to the membership to fill positions on the Board. These are not positions requiring hours upon hours of arduous work, but rather a couple of hours a month to discuss past programs & future events and discuss new ideas and suggestions for the continuous development of our affiliate. If you have considered helping NAPM, but did not know how to go about it, please join us for the May 9th meeting. We welcome fresh ideas and opinions from YOU, the Members of NAPM-SA. In fact, these are crucial for expanding the concepts of purchasing, materials management, and our specific organization.NAPM is currently going through many changes; name change?, C.P.M. test module changes!, E-commerce growth!, etc.; to be on the "cutting edge" of these changes-volunteer and help advance our affiliate and your career.

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.

Among the benefits of sourcing globally mentioned are access and proximity to markets; transfer pricing, access to scarce resources and disaster recovery.

The article points out that many countries decide as to what products can be sold in their markets based on the amount of "local" content in the product. Also, tariffs and duties may be influenced by where the product was fabricated or assembled. Sourcing a product in or near the market country speeds goods to the market and reduces transportation costs. Those companies which use transfer pricing strategies could add value in countries where taxes are lower and thus could significantly impact the firm's overall tax liability.

The authors note that skills such as computer, project management, engineering and analytical skills are in short supply. A company with a global supply capability can allow such work to be performed in those countries where needed skills are available.

By extending supply lines into different geographic areas the impact of political unrest, natural disasters and labor disputes may be moderated.

Some of the challenges of operating a global supply line discussed in the article are operational philosophies, exchange rates, government regulation, language, measurements, payment methods and terms, communications, logistics, Internet, cultural differences and political/labor unrest.

Differing operating philosophies exist in various countries or areas of the world, which can impact the way business is conducted.Mentioned are attitudes regarding response time, determining what is a critical versus a non-critical situation, and the degree to which decision making is delegated. Unless recognized and compensated for, these differences could cause serious problems within the supply chain.

Fluctuations in exchange rates can impact supplier pricing. The extent to which the buyer is responsible for bearing the associated risks of such fluctuations needs to be negotiated before contracts are finalized.

Government regulations such as import/export regulations, duties, unique specifications (which may exclude the importation of specified commodities or materials) labor and contract laws can be stumbling blocks to smooth relations with suppliers.

Also, communications problems associated with language differences must be considered and the use of different measurement systems in various countries must be sorted out and contracts should specify which system is to be used.

Payment terms and their meanings differ from country to country. The buyer should seek the services of a financial institution which has contacts in the supplier's country in order to obtain a clear understanding of the methods/terms of payment and how they may impact the buyer. Communications due to an inadequate telecommunications system can be an area of concern.Also, communications can be compounded by time zone differences.When suppliers are located in different continents, multiple telephone conference calls may be needed in order to communicate with all affected suppliers. This could result in varying interpretations of a problem and its resolution.

The authors observe that state-of the-art logistics systems do not exist in many countries resulting in less than the desired response in handling the volume or providing the speed of service needed. Also, customs regulations, practices and documentation requirements could create major operational problems.

There are significant differences in how the Internet is used in various countries due to government business regulations tax laws, Internet access and pricing. Careful investigation into these issues is necessary. Cultural differences exist with regard to how individuals interact with each other. However, cultural differences also exist in business with respect to the sharing of technology, cost data, and other confidential information.The article stresses that these differences need to be understood and resolved before finalizing an agreement. Political or labor unrest could be devastating to a business depending on global sources. Detailed research may minimize the risk in this area.

The authors conclude that despite the challenges, the rewards of sourcing globally including access to new markets and pricing advantages outweigh the challenges. However, they caution that the design and implementation of a multinational supply line must be the result of careful planning and execution. This article is recommended to all purchasing professionals who are faced with the task of establishing an off-shore source of supply. It is an excellent tool in getting started on such a task.

Forms on nominations for "Excellence In Purchasing" is to be submitted no later than our next dinner meeting (May 9, 2001), to be considered.

Nominations for board positions need to be made to the current Board Members prior to the May 9th dinner meeting.