Monday, December 5, 2005
   


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In This Issue...
  • November Non-Manufacturing ISM Report On Business®: Business Activity at 58.5%.  Read more.
  • JPMorgan Global PMI: Global Report on Manufacturing.  Read more.
  • Your Vote Counts -- Ballot Deadline January 12, 2006.  Read more.
  • Take the C.P.M. Exam for Half-Price.  Read more.
  • One on One: An Interview with Kathleen R. Fuller.  Read more.
  • ISM Seminars -- Upcoming Topics.  Read more.
  • Term of the Day.  Read more.
  • Contact Us.  Read more.


November Non-Manufacturing ISM Report On Business®: Business Activity at 58.5%

Business activity in the non-manufacturing sector increased in November 2005, say the nation's purchasing and supply executives in the latest Non-Manufacturing ISM Report On Business®.

The report was issued today by Ralph G. Kauffman, Ph.D., C.P.M., chair of the Institute for Supply Management™ Non-Manufacturing Business Survey Committee and coordinator of the Supply Chain Management Program, University of Houston-Downtown. "Non-manufacturing business activity increased for the 32nd consecutive month in November," Kauffman said. He added, "Business Activity and Order Backlogs increased at slower rates in November than in October. New Orders and Employment increased at faster rates. Twelve of 17 non-manufacturing industry sectors report increased activity in November compared to 11 that reported increased activity in October. Although the Business Activity Index indicated a slower rate of increase in November, members' comments are generally positive concerning current business conditions. There is still significant concern about the relatively high level of energy prices and its impact on freight costs and on the prices of other materials and services. There is also concern about shortages of materials in some categories and about the availability of transportation service. The overall indication is continued economic growth in the non-manufacturing sector in November, but with some concern about the impact of energy prices on future business activity."

To read the entire report click here.

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JPMorgan Global PMI: Global Report on Manufacturing

Global Manufacturing Sector Maintained Solid Growth Rate in November. Demand Continued to Improve Leading to Higher Employment.

The Global Manufacturing PMI — a composite index produced by JPMorgan and NTC Economics in association with ISM and IFPSM — registered 54.6 in November. Although down slightly from October's recent high of 54.9, the PMI nonetheless pointed to a further marked improvement of overall operating performance. Solid gains in output and new business continued to be recorded, leading to faster creation of jobs.

At 56.9, the Global Manufacturing Output PMI indicated that growth of global IP had been sustained at a rate of 6% saar in November. Denmark recorded the fastest rate of increase in output, followed by Switzerland. The latest ISM US Output PMI reading confirmed the recent step up in US manufacturing sector growth (although data so far for Q4 2005 indicate that the pace of increase is easing from September's recent peak).

To access the complete JPMorgan release click here.

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Your Vote Counts -- Ballot Deadline January 12, 2006

On December 1, 2005, ISM mailed the 2006 Proxy for the Annual Meeting of Members of the Institute for Supply Management, Inc.™ (ISM). ISM members are being asked to vote on the election of ISM Board members. The report of the vote and other business of the organization will be made at the ISM Annual Membership Meeting that will be held on Thursday, January 12, 2006, at 11:30 a.m. MST at the national headquarters of ISM in Tempe, Arizona.

Your national Board unanimously recommends your vote "For" this outstanding group of individuals:

  • Aaron D. Dent
    Vice President - Supply Chain Management, Delta Air Lines
  • Robert B. Duncan, Ph.D.
    The Eli and Edythe L. Broad Dean and Professor of Management at The Eli Broad College of Business, Michigan State University
  • Grace Puma
    Vice President, Global Indirect Material and Services Procurement, Kraft Foods
  • Shelley Stewart, Jr.
    Vice President Supply Chain, Tyco International (US), Inc.

For more information about the election or the above individuals click here.

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Take the C.P.M. Exam for Half-Price

That's right, you read that correctly! During ISM's 91st Annual International Supply Management Conference and Educational Exhibit in Minneapolis, MN, candidates who register for the complete Conference or a 2- or 3-day pre-Conference seminar and take one, two, or up to three certification exam modules will receive HALF-OFF the applicable exam fee.

Take advantage of this money saving offer! For complete details or to register click here.

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One on One: An Interview with Kathleen R. Fuller

Kathleen R. Fuller is vice president, Global Procurement Services and Operations, Integrated Supply Chain, for IBM Corporation. During her 20-year career with IBM she has held various supply chain assignments. Since 2000, Fuller has held the vice president positions of General Procurement Strategic Sourcing; Integrated Supply Chain, Systems Production Procurement; and Business Consulting Services Procurement. In 2004, she earned her current title and became responsible for the planning and execution support for IBM's services and software clients. Fuller is on the Board of Trustees for CAPS Research.

The Journal of Supply Chain Management: In October 2002, IBM underwent a supply chain transformation. Describe IBM's supply chain prior to the transformation.

Kathleen R. Fuller: Although we had a "supply chain" prior to our transformation, we were very brand-, unit and site-specific. We were not integrated, not one IBM working together. For example, we might have had our PC and server businesses, two different types of hardware, and those teams would never really even talk to each other. They kept their heads down, working at their site, and they would be supporting whatever role they played in the supply chain. But they never thought about supply chain as a business model and a thinking process. It wasn't a proactive way of determining how we could better support our end client, how we could be more efficient, faster, and deliver more of a quality solution in the end.

The Journal: Why was there a need for IBM to transform its supply chain activities?

Fuller: To remain competitive and be in line with IBM's overall business strategy, we decided that we needed to drive some very dramatic change and form an integrated global supply chain. Our CEO and chairman, Sam Palmisano, laid out a strategy for IBM several years ago called On Demand. It's a strategy not only as to the solutions that we sell in the marketplace but also how we transformed ourselves within IBM to be an on-demand company that is flexible and resilient to meet the dynamic demands of the marketplace. One of the very first areas we focused on was supply chain. We looked at all those very functionally competent silos that made up the pieces of the supply chain and we said we needed to think horizontally about integrating in a smooth, seamless transition across that supply chain, and as one supply chain that covers all brands, including services, software and hardware.

To read the entire interview with Ms. Fuller click here.

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ISM Seminars -- Upcoming Topics

How can you save $200, enhance your purchasing skills and earn Continuing Education Hours? It's easy, just register for one of ISM's professional seminars. ISM is committed to your success.

To learn more about ISM's seminars or to search by topic, date or location click here.

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Term of the Day

Today's ISM Term of the Day is: ADVANCED CHARGES.

Definition: The amount of freight or other charges on a shipment advanced by one carrier to another, or to the shipper, to be collected from the consignee.

A different Term of the Day is posted on the ISM Home Page (www.ism.ws) each day -- 7 days a week. The Term of the Day is taken from the Glossary of Key Supply Management Terms.

ISM members can access the online Members Only Glossary of Key Supply Management Terms which includes terms from the private, public, and various industry sectors, and from a wide variety of sources. The Glossary can be browsed alphabetically, or searched by keyword.

To access the Glossary click here.

If you are not a member but would like membership information click here.

Help us update this Glossary! If you don't find the term or definition that you are looking for let us know. We will be updating the ISM Glossary in the coming months, and your input will be useful for the new edition. To contact us regarding the Glossary, e-mail: surveys@ism.ws

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Contact Us

Questions/Comments? Contact RaeAnn Slaybaugh.

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