|In This Issue ...
- Chemical Industry News
- Report: Each Chemistry Industry Job Generates 7.6 Additional Jobs: A recently released American Chemistry Council report shows that for every one chemistry industry job, another 7.6 are generated in other sectors of the economy — construction, transportation and agriculture, to name a few — creating a total of nearly 6 million chemistry-dependent jobs. Read more.
- ICIS reveals Top 100 Chemical Distributors: ICIS Chemical Business has revealed the ICIS Top 100 Chemical Distributors, with rankings based on 2010 sales — a global listing of companies critical to the chemical supply chain. Read more.
- European Chemicals Agency Adds 13 Chemicals to Dangerous Substances List: The European Chemicals Agency (ECHA) has named 13 new chemicals to the substances of very high concern (SVHC) list that are carcinogens, mutagenic or toxic, and thus pose a serious threat to human life. The list now consists of 84 substances, and is expected to grow in the years to 2015 as the EHCA continues future consultations and discussion. Read more.
- Food Supply Chain Waste "Offers New Source" for Chemicals and Materials: Scientists at the University of York are leading a major new European Union-backed network that is exploring ways of using waste as an alternative carbon source, employing green and sustainable chemical technologies. York's Green Chemistry Centre of Excellence — which launched the Biowaste Industrial Symbiosis Network at a Technology Fair in Santa Clara, California — has won a European Co-operation in Science and Technology (COST) grant to run the network. Read more.
- Feature Article
- Purchasing in a Volatile, Uncertain, Complex and Ambiguous (VUCA) World — Aging Western baby boomers are changing chemical demand patterns — again.
In this article, International eChem Chair Paul Hodges highlights some key findings to this effect (past factors, the new normal and forward-thinking ideologies) from his organization's new e-book, Boom, Gloom and the New Normal. Read more.
- Market Report
- Internal Combustion Engines Poised to "Lead the Pack" Until 2050: Report — Prepared at the request of U.S. Department of Energy Secretary Stephen Chu, a recent report by the National Petroleum Council (NPC) — Advancing Technology for America's Transportation Future — predicts conventional petrol and diesel engines, hybrids, plug-ins and natural gas engines will remain the powertrain of choice for heavy-duty vehicles until at least 2050. Read more.
- Announcements: Plan now to attend the 5th Annual ISM Sustainability and Social Responsibility Conference, which is scheduled for November 1-2, 2012 in Manhattan Beach, California. Read more.
- Additional Resources: Check out these links to additional resources from the ISM website. Read more.
- Contact Us about ISM eDigest: Chemicals.
|Chemical Industry News
Report: Each Chemistry Industry Job Generates 7.6 More Jobs
Report Shows Each Chemistry Industry Job Generates Additional 7.6 Jobs
Recently, American Chemistry Council (ACC) issued its 2012 edition of the Guide to the Business of Chemistry, a detailed economic profile of the chemistry industry and its contributions to the U.S. and world economies. According to the guide, for every one chemistry industry job, another 7.6 are generated in other sectors of the economy — construction, transportation and agriculture, to name a few. As ACC analysts point out, this creates a total of nearly 6 million chemistry-dependent jobs.
"Chemistry is the foundation of everything around us," says the publication's lead author, ACC Chief Economist Kevin Swift. "Chemistry goes into building insulation, lightweight vehicle parts, solar panels, automotive and industrial lubricants, and energy-efficient appliances. Nearly every sector of the economy and virtually everything we touch is connected to the products of chemistry."
Prepared annually by ACC's Economics and Statistics Department, the Guide to the Business of Chemistry divides the US$760 billion business into five types of production: basic chemicals, specialty chemicals, agricultural chemicals, pharmaceuticals and consumer products. It also highlights the distinct characteristics — including growth dynamics, markets, new developments and issues — of each segment.
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ICIS reveals Top 100 Chemical Distributors
ICIS reveals Top 100 Chemical Distributors
ICIS Chemical Business has revealed the ICIS Top 100 Chemical Distributors, with rankings based on 2010 sales — a global listing of companies critical to the chemical supply chain. This is the second year the publication has featured this ranking, this time breaking out sales by geographic region.
At the top of the list: Germany-based Brenntag with US$10.1 billion in sales. Brenntag is followed by U.S.-based Univar with $7.9 billion, Germany-based Helm with $5.56 billion and U.S.-based Nexeo Solutions (the former Ashland Distribution) with $3.4 billion.
Currency conversions to U.S. dollars for the ranking were based on end-of-year 2010 exchange rates.
The ICIS Top 100 Chemical Distributors is a global ranking, with regional leaders broken out separately for North America, Europe, Asia, Latin America, the Middle East and Africa.
The ICIS Top 100 Chemical Distributors ranking is available for free download as a PDF on the ICIS website.
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ECHA Adds 13 Chemicals to Dangerous Substances List
European Chemicals Agency Adds 13 Chemicals to Dangerous Substances List
The European Chemicals Agency (ECHA) has named 13 new chemicals to the substances of very high concern (SVHC) list that are carcinogens, mutagenic or toxic, and thus pose a serious threat to human life.
The list now consists of 84 substances, and is expected to grow through 2015 as the EHCA continues future consultations and discussion.
Manufacturers and importers in the European Union and European Economic Area must provide information on the safe use of articles to their consumers: A) within 45 days of consumer request, or B) when the percentage of an SVHC listed item reaches above 0.1 percent of an article, or C) when the total in all articles per producer or importer exceeds 1 ton per year. This is in accordance with REACH policy, or European regulation relating to the registration, evaluation, authorization and restriction of chemicals.
Some companies have failed to respond to the requests by the ECHA to provide this information. According to the Center for Research and Information for Organizations of Consumers, a Belgian company, some companies failed to respond to the requests for information about the substances previously on the list. The new deadline for SVHC substances is December 18, 2012.
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Food Supply Chain Waste "Offers New Source" for Chemicals and Materials
Food Supply Chain Waste "Offers New Source" for Chemicals and Materials
Scientists at the University of York are leading a major new European Union-backed network that is exploring ways of using waste as an alternative carbon source, employing green and sustainable chemical technologies. York's Green Chemistry Centre of Excellence — which launched the Biowaste Industrial Symbiosis Network at a technology fair in Santa Clara, California — has won a European Co-operation in Science and Technology (COST) grant to run the network.
The network, which is being coordinated by Ph.D. student Lucie Pfaltzgraff, involves engineers, chemists, biotechnologists and food technologists from academia and industry working on novel strategies to use food waste to provide new, sustainable, functional feedstocks.
It aims to develop the valorization of food supply chain waste as an alternative carbon source for biochemicals, biomaterials and biofuels by forging links between technology hubs across the world, overcoming technological barriers and reaching beyond first generation organic waste reuse and recycling such as composting and anaerobic digestion. It also seeks to bridge gaps between academic disciplines as well as between academia and industry.
The network is already studying the potential of reuse of citrus residue and coffee waste as well as pea pods and cashew shells.
"We want to bring about a critical mass of researchers and stakeholders to harness the potential of food supply chain waste as an alternative carbon source to produce commercially viable chemical commodities," says Professor James Clark, director of the University of York's Green Chemistry Centre of Excellence. "As well as harnessing skills and expertise that cross scientific borders, covering biology, chemistry, biotechnology and food science and technology, the network will include experts in environmental and economic assessment. The EU support we are receiving is an acknowledgement that food supply chain waste is an important area of scientific study that has potential to change significantly the way we live."
Its membership already includes industrial concerns and academic institutions from China, United Kingdom, Spain, France, Greece, Finland, Cyprus, Vietnam, Italy, Germany and Brazil.
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Purchasing in a Volatile, Uncertain, Complex and Ambiguous (VUCA) World
Aging Western baby boomers are changing chemical demand patterns — again.
By Paul Hodges
Today's economic environment presents the chemical industry with its most difficult challenges for a generation. Oil and feedstock prices are high and volatile. Demand patterns in key sectors, such as housing and autos, are uncertain. Financial markets have become more and more complex. And, key indicators are ambiguous about the outlook.
Unilever CEO Paul Polman summed up the position best: "I use the term 'VUCA' to describe the world — volatile, uncertain, complex and ambiguous. It's very difficult for people to get a total picture."
Yet, a "total picture" is, of course, what chemical sourcing professionals are expected to develop and maintain.
The Old Picture
This is the rationale for my organization's (International eChem) new e-book, which is available as a free download on our website: Boom, Gloom and the New Normal: How the Ageing of the Western BabyBoomers is Changing Chemical Demand Patterns, Again. Its core argument is that demographics drive demand.
As a result, we can expect growth rates to be slower in the Western economy, and for many of the products supplied by the chemical industry. Core markets, such as housing and autos, are already seeing these effects in action. Yet at the same time, these changes are also creating new opportunities for forward-looking chemical companies.
Twenty-nine percent of the Western population — 272 million people -are already benefiting from an extra decade or more of life expectancy, compared to previous generations. They are in the new 55+ cohort and have money to spend. Yet, most companies insist on living in the past when it comes to providing them with products and services.
To this end, the publication highlights how Western births jumped 15 percent between 1946 to 1970, versus 1921 to 1945. By 1982, the babies born during this period were beginning to reach the 25- to 54-year-old "wealth creator" age group in large numbers. This demographic is recognized by consumer marketers as the period of peak demand; it is when people are typically settling down, having children and moving ahead in their careers. The boomers thus spurred a 25-year economic "super cycle," especially in sectors of key importance for the chemical industry — autos and houses, in particular.
This super cycle can be seen in the official figures from the U.S. National Bureau of Economic Research. Its data show that the United States was in recession for just 16 months between 1982 and 2007. This was different from the experience of the previous century, when a typical cycle lasted four to five years and was often followed by a lengthy downturn. Since 2007, of course, we have begun to move back into a much more volatile economic environment.
U.S. housing starts show the impact of this shift in demand. Each new house constructed uses US$15,000 of chemicals, according to American Chemistry Council (ACC) data — including plastic for sidings, pipes and cables, plus coatings, adhesives and fiber upholstery. Housing starts peaked at 2.2 million a year in 2006; but, since 2009, they have remained at historical lows of less than 800,000. This makes today's market worth $12 billion versus its $33 billion peak.
Similarly, U.S. auto sales averaged between 15 million and 17 million a year from 1995 to 2007. ACC data suggest each new auto uses an average of $3,636 of chemicals, including antifreeze, plastics for dashboards and other parts, rubber tires, coatings, adhesives and upholstery fibers. But, since 2009, sales have averaged around 12 million autos per year. Thus, the market is worth $44 billion today versus $58 billion in terms of chemical products.
Additionally, the boomer generation created the phenomenon of pent-up demand. If policymakers raised interest rates, then people only deferred their purchases. Their children were still growing, and new boomers were continually entering the wealth-creator cohort. So, demand recovered sharply when rates were reduced again to more affordable levels.
Companies thus became bolder with their investments; there was little risk in bringing on new capacity ahead of demand. In fact, the theme from Kevin Costner's 1989 baseball movie "Field of Dreams" summed up the key dynamics: If you build it, they will come. Contrary to previous experience, executive boards of chemical companies soon realized that being overly cautious was the key risk when planning for new capacity. Most chemical products are linked to personal consumption; so, the growth of the boomers meant companies could count on steadily increasing demand for most products.
Further support for economic growth came from the rising number of women in the labor force, as old barriers were removed.
Additionally, a dramatic increase was taking place in Western life expectancy, which rose 18 percent between 1950 and 2000, from 66 years old to 78 years old. Chemical and pharma companies played a major role in this welcome advance. Not only did they develop new life-saving products, they also facilitated major improvements in food safety and crop yields.
The earlier introduction of chlorine into drinking water showed what could be achieved by the application of science. It removed the threat of cholera and typhoid, which decimated populations in the past. Now, vaccines (which were supported by the development of a wide variety of new medicines) enabled mass immunization programs. This helped to prevent the onset of many diseases while, at the same time, new treatments were developed to help mitigate the impact of others.
In addition, the widespread adoption of plastics helped reduce the incidence of food poisoning and other threats to life. Better storage and handling meant the food chain became safer. Equally, the development of improved crop varieties allowed the expanding population to be well-fed, despite the fears of latter-day Malthusians that population growth would inevitably lead to widespread starvation. Malthus' 200-year-old warning became highly topical in 1972, with the publication of The Limits of Growth by a group of scientists from the Massachusetts Institute of Technology for the influential Club of Rome organization. Ironically, its core argument was being disproved even as the report itself gathered global attention.
The New Normal
Now, this virtuous circle is coming to an end.
Since 2001, the oldest boomers (those born in 1946) have been moving out of the wealth creator cohort. Next year, the average boomer will be leaving it. The best efforts of policymakers and central bankers cannot turn back this tide. As such, demand patterns are changing once again. The boomers no longer need new and bigger homes or autos. And, the growing pension crisis — caused by a failure to adjust savings rates and retirement ages for increasing life expectancy — means that most of the 55+ generation simply have to cut back their expenditures and focus on real needs rather than wants.
Surprisingly, though, this critical insight has not yet entered the thinking of many chemical companies, which continue to focus on the wealth-creator market — even though this has already gone ex-growth due to the Western post-boomer generation being some 16 percent smaller. They seem to believe that somehow there will soon be a return to the days when steadily increasing demand for housing, autos and other consumer-related products would guarantee profitability for any moderately successful business.
Yet, the evidence to the contrary is unassailable. Only those already alive can possibly enter the wealth creator cohort by 2030. And, United Nations (U.N.) forecasts show there will be only 369 million Westerners in this cohort by then, versus 392 million in 2010.
At the same time, U.N. demographers expect the number of 55+ individuals to jump 34 percent by 2030, from 272 million to 364 million. Equally important is increased life expectancy, which means that 70 has already become "the new 60" as far as people's physical well-being and mental status are concerned.
The position in the U.S. is very similar. As the chart shows, the number of wealth creators is already plateauing; by 2030, there will be 134 million versus 128 million today. But, the number of new 55+ will jump 44 percent to 111 million, from 77 million today.
This new 55+ faction will likely have lower spending power than when they were in the wealth-creator cohort as they move from salaries to pensions. Also, they probably haven't saved enough to finance their extra decade or so of life expectancy versus previous generations. Many people assume they'll sail off into the sunset on retirement, and that $100,000 of savings (the average in the 55-64 age group) is a fortune. But, when it has to cover a possible 20 years of retirement, it falls far short of what they need to fulfill their expectations.
Even so, the 55+ cohort will still have some money — and, there are an awful lot of them in that demographic. So, if companies were to focus on their needs, they'd be a potential gold mine.
When determining what these needs are, the first point to consider is that although they won't be able to afford many of the "wants," by comparison, our research for the book shows that the needs of this new 55+ generation aren't restricted to pharmaceutical and traditional "age-related" products. The boomers have always thought of themselves as being different from their parents' generation. Thus, they continue to be active consumers for a wide variety of products and services.
Another factor behind their needs is the fact that their kids will have mostly grown into adulthood by then. This will affect the ways in which they choose to spend their money, especially with regard to housing.
Lennar, for example — the third largest home builder in the U.S. — is seeing considerable success with its new "NextGen" housing developments. These are not the "granny apartments" of old, but instead offer the senior generation their own separate living spaces, alongside their adult children. This provides the new 55+ constituency with the reassurance of being looked after if they become ill. In turn, they can supervise their grandchildren while the parents are at work.
From the sourcing professionals' viewpoint, the rise of the new 55+ generation represents opportunities, as well as challenges. Markets are seeing much greater volatility, as demand patterns change. There is also more uncertainty as the needs of the new 55+ group aren't well-understood. In turn, this creates more complexity around the outlook. There is also more ambiguity, as markets ebb and flow in new directions.
This is the VUCA world described by Unilever's Paul Polman. It requires companies to develop their own VUCA plan in response — a vision of how the world may change; an understanding of what this may mean for the products with which they are involved; clarity over future sourcing strategies and tactics; plus, agility to respond to unexpected.
What is already clear, four years into the financial crisis, is that there is no going back to the world of the boomer-driven super cycle. The winners in the new normal will be those who refocus today on the new economic and social trends that are already starting to drive future growth.
Paul Hodges is chair of International eChem, advisers to the chemical industry and its investment community. Boom, Gloom and the New Normal: How the Ageing of the Western BabyBoomers is Changing Chemical Demand Patterns, Again sets out the key issues as related to the global transition toward a new, more demand-driven world — including detailed case studies and critical success factors for future product and service offerings. To contact this author, send an email to email@example.com.
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Internal Combustion Engines Poised to "Lead the Pack" Until 2050: Report
A National Petroleum Council study shows conventional petrol and diesel engines, hybrids, plug-ins and natural gas engines will remain the powertrain of choice for decades to come.
By RaeAnn Slaybaugh
Prepared at the request of U.S. Department of Energy Secretary Stephen Chu, a recent report by the National Petroleum Council (NPC) predicts conventional petrol and diesel engines, hybrids, plug-ins and natural gas engines will remain the powertrain of choice for heavy-duty vehicles until at least 2050.
NPC was founded in 1946 by the Secretary of the Interior, at the request of President Harry Truman, as a federally chartered and privately funded advisory group to represent the oil and gas industries' views to the federal government.
The NPC report — Advancing Technology for America's Transportation Future — calls vehicles powered by petroleum or internal combustion engines "the foundation of travel for over a century," pointing out that they continue to become more efficient and cleaner.
"Some of their engines are assisted by electric motors, and they're being joined on the nation's roadways by vehicles running on natural gas, electricity and hydrogen," it states. The report also points out that natural gas is widely used in urban buses and refuse vehicles; biofuels comprise 10 percent of U.S. gasoline; and a growing number of plug-in hybrid and all-electric vehicles are becoming available to consumers. "And shortly, hydrogen fuel cell passenger vehicles will enter the market," it adds.
The report is the culmination of a two-year study of more than 300 participants representing diverse perspectives, including vehicle manufacturers, transportation services end users, financial institutions and academia. It examines fuels, technologies, industry practices and government policies through 2030 for auto, truck, air, rail and waterborne transport and potential industry, as well as government actions that could reduce greenhouse gas (GHG) emissions from American transportation by 50 percent by 2050 (compared to 2005 levels).
In particular, the report cites ongoing technology advancements (vehicle light-weighting, improved aerodynamics and drivetrain electrification) as potential drivers of increased fuel economy in internal combustion-engine vehicles — between 60 percent and 90 percent over the next four decades, compared to 2010 levels.
NPC officials assert there are opportunities to improve diesel technology, particularly in diesel-powered trucks. "Indeed, the fuel economy (mpg) for new Class 7&8 HD vehicles, which consume more than 70 percent of the fuel in the trucking fleet, could be doubled," the report states.
Indeed, the benefits of improved diesel fuel economy could be massive: As Allen Schaeffer, executive director of nonprofit Diesel Technology Forum (DTF), points out, diesel powers more than 80 percent of freight movement in the U.S., and even more — about 90 percent — of global trade.
"The advances in diesel technology have improved efficiency and significantly reduced emission to the point that diesel engines are now near zero emissions," Schaeffer says.
Infrastructure Represents Major Hurdles
The NPC report examines several alternative fuel sources, including natural gas, which NPC officials say could make inroads into heavy-duty trucking "assuming the current price spread between diesel and natural gas persists over time."
However, the adoption of new fuel-vehicle systems powered by natural gas and other alternative fuel sources will no doubt be challenged by the "major infrastructure problems" natural gas and other alternative fuel sources face. "It could cost tens to hundreds of billions of dollars to provide similar alternative fuel availability as the current gasoline infrastructure," the report states. "And, it will take decades to fully deploy."
Some fuels also require advances in supply chain infrastructure technology to aid deployment. "Specifically, advanced biofuels must overcome technology hurdles related to fuel manufacturing, and hydrogen must overcome technology hurdles related to dispensing infrastructure," the report points out.
Freight Carriers Are Skeptical — and Hesitant
The NPC study coincides with a recent survey of industrial freight carriers, in which less than 10 percent of senior executives expressed belief that liquefied natural gas, or LNG, will be widely adopted for over-the-road trucking. The survey also found that while freight carriers were generally aware of LNG-powered vehicles, 72 percent felt the technology had limited adoption potential for industrial freight.
The report also recommends federally mandated policies be technology-neutral to avoid government "[picking the] winners and losers" in transportation. Instead, it promotes government pursuit and support of a broad portfolio of technology options.
"There is a great deal of uncertainty regarding which individual fuel-vehicle systems will overcome technology hurdles to become economically and environmentally attractive by 2050," the report states. "Therefore, government policies should be technology-neutral while market dynamics drive commercialization."
DTF's Schaeffer agrees technology neutrality should be heeded by the government in its policies — "particularly given past experience favoring certain energy sources and technologies."
OK — But, We're Driving More!
Achieving the aforementioned 50-percent emissions reduction by 2050 is made considerably more challenging by the projection that vehicle miles travelled (VMT) will increase by as much as 80 percent in the U.S. by 2050 — a problem the study failed to remedy.
"After considering projected demand growth alongside light-, medium- and heavy-duty fuel-vehicle system greenhouse gas (GHG) reduction improvements, the study identified a very limited set of portfolios and unique conditions that could achieve a 50 percent GHG reduction in the light-duty fleet," the report states.
For medium- and heavy-duty vehicles, the study determined average fuel economy could almost double by 2050. "However, on a fleet basis, demand growth mitigates the GHG impact of fuel economy improvements, and total medium- and heavy-duty GHG emissions remain similar to 2005 levels."
Further, the study was unable to identify a set of medium- and heavy-duty vehicle portfolios that could achieve 50 percent reduction on a fleetwide basis when accounting for VMT growth.
"To achieve 50 percent GHG reductions in the total transportation sector, additional strategies — such as reducing electric generation GHG emissions, reducing transportation demand (VMT), improving transportation system operating efficiencies and other actions — need to be considered, along with expanded use of low-carbon fuels and more efficient vehicles," the report concludes.
RaeAnn Slaybaugh is a senior writer for the Institute for Supply Management™. She can be reached by email.
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5th Annual ISM Sustainability and Social Responsibility Conference Scheduled for November 1-2, 2012 in Manhattan Beach, California
Incorporating sustainability and social responsibility into your supply chain is no longer an arbitrary choice; it's become an important part of business strategy. Despite sustainability's short history and somewhat slow start to gain momentum in some industries, smart business leaders realize that it fits quite nicely with lean strategies. After all, the ultimate goal of both is to optimize resources and eliminate waste.
Your organization can't move forward unless you remain competitive. Having a strong organizational strategy that addresses sustainability and corporate social responsibility (CSR) is an essential ingredient for a strong organization.
Attend ISM's 5th Annual Sustainability and Social Responsibility Conference — scheduled for November 1-2, 2012 in Manhattan Beach, California — and discover the benefits of embracing this business philosophy. Attendees will delve into the topics of:
- High-SSR impact practices
- Operationalizing sustainability
- The McDonald's recipe for global workforce diversity
- Ethics and anti-corruption
- The supply chain role in human rights
- CPOs' views on sustainability implementation
- Engaging diverse suppliers in the supply chain
- Driving product sustainability
- Synergies and strategies to move ahead
Who Should Attend
Supply management professionals engaged in developing and supporting corporate social responsibility and sustainability initiatives. Supply management professionals may want to invite those outside of supply management to gain buy-in and to build the foundation for organizational success. Corporate sustainability and social responsibility initiatives are holistic strategies that involve the entire organization. From the CEO to administrative support, all areas must heed the call to sustainability and CSR — but supply chain professionals are often the catalysts to change within the organization.
Conference Information, agenda, registration information and more is available on the ISM website.
13th Annual ISM Services Conference — "Innovative Supply Relationships: Creating Value for Services Procurement" — December 6-7, 2012 in Phoenix
Presented by the ISM Services Group, the 13th Annual ISM Services Conference — "Innovative Supply Relationships: Creating Value for Services Procurement" — is scheduled for December 6-7, 2012 at The Pointe Hilton Tapatio Cliffs Resort in Phoenix.
Topics on the agenda include services contracting, sourcing strategy, legal, telecom, software licensing, negotiation, practitioner research and collaborative roundtable discussions.
Each year, ISM develops the best presentations for supply chain professionals with services spend.
Who Should Attend
This program is designed for supply management professionals responsible for not only acquiring services, but also for developing the supply chain strategies that support the goals and objectives that move the organization forward. Supply management professionals with a solid foundation will benefit from this program. Additionally, team leaders, project managers and members of cross-functional teams will profit from this unique experience. Even if you've attended previous ISM Services Conferences, this program has evolved to keep you current by building on the previous year.
Take-aways will include learning how to:
- Direct your supply management expertise to the world of purchasing services and get ahead.
- Translate your knowledge about sourcing and buying tangible goods into the services arena, and uncover hidden savings in the process.
- Turn your coworkers into customers and streamline crucial services purchases.
- Explore the role of your stakeholders in the sourcing decision and optimize the process.
Roundtables and networking time are built into the schedule.
Earn 9.5 Continuing Education Hours (CEHs) for your participation, and learn to maximize your serves spend, from accounting and advertising, to healthcare and human capital, to utility services and waste management.
Additionally, a pre-conference seminar — "Strategic Services Procurement: Applying Strategic Sourcing Principles to the Procurement of Services" — provides a fresh look at the strategic nature of the supply function. It provides insights into current trends and opportunities for supply's involvement in services procurement, the application of strategic sourcing methods and technologies to the services spend and services supply base, and participant analysis and discussion of case studies to services spend not traditionally sourced through the purchasing function. Register for this pre-conference seminar and the Services Conference and save US$200.
Conference information — including an agenda, registration form and brochure — are available on the ISM website.
Check Out the ISM Videocasts Page for Timely (and Brief) Perspectives on Top-of-Mind Supply Management Topics
If you haven't visited ISM's videocasts webpage, now is the time! Throughout the year, ISM produces educational videocasts designed to lend insights into topics including sustainability, social responsibility and personal career development.
And, it won't take all day, either; videos range in from four minutes to 21 minutes.
Currently available video topics include:
- Sustainable procurement — Defines sustainable procurement and discusses some of the ways an organization can start the process.
- Sustainability 2.0 -Discusses the next level of sustainability — what organizations do after a basic framework has been put in place.
- Sustainable procurement metrics — If you've got a sustainability effort in place, how do you know if it's working? This video discusses all-important measurement tools and metrics.
- Leadership tools for your career — Discusses strategies for more effective, inspiring and passionate leadership.
- Risk management (strengthening your supply chain) — Shares valuable insights in the increasingly popular, even vital, area of supply chain risk management.
- Savings with source-to-pay — Discusses ways procurement pros can add value to their organizations.
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A Wealth of Information at www.ism.ws
Visit ISM's website for more supply management resources. The site provides published articles, conference presentations and reference materials that pertain to supply managers in all industries. Here are some items that may be of interest:
- The Changing Winds of Population Growth
According to this Inside Supply Management® article, population trends have vast and wide-ranging impacts, affecting everything from economic patterns to the balance of political power. The ability — and flexibility — to adapt to these shifts, however incremental, will determine a company's degree of success and access to opportunities for many years to come. There is no time like the present to determine what this will likely mean for supply chain management.
- The Case for Hiring (and Training) Supply Management Generalists
Given today's complex supply chains, category managers and sourcing specialists are certainly sought-after. But, is there an emerging case for hiring (and training) generalists, instead — those unique individuals who can source entire supply chains and understand the risk from a broader perspective?
The answer is yes for Bechtel Corporation, a global engineering, construction and project management organization based in Houston. eSide Supply Management interviewed David Hammerle, Bechtel's corporate manager of procurement and contracts, to find out why generalist supply management professionals are a good fit for his particular business model.
- The Heart of a Healthy Supply Chain
The business of helping people live longer, healthier lives is not taken lightly in any regard. Suppliers to Boston Scientific must guarantee extremely high quality and delivery, because the smallest imperfection or delay could be life-threatening. For this reason, the entire supply chain depends on efficiency and quality. The global indirect sourcing and procurement (GISP) organization at Boston Scientific is responsible for all strategic and tactical procurement of indirect materials and services, using a center-led operating model to organize sourcing around the world. Leading this team is Karen Weinstein, vice president, global facilities and security, real estate and indirect sourcing and procurement.
Weinstein, who has been with Boston Scientific for nearly 12 years, was involved in a 2010 directive from the CEO to "optimize the company," which translated into the creation of a new indirect organization that would leverage best practices, find bottom-line savings and improve processes.
- Career ROI: Conducting an Internal Audit — On Yourself
By design, an internal audit identifies weaknesses and strengthens positions. When it's over, it rarely ends as we imagine. In fact, we often emerge in a better position than we were in before.
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