Monday, December 3, 2012

In This Issue ...
  • November Manufacturing ISM Report On Business®: PMI at 49.5% — Read more.
  • Feature Article: Five Rules — and 10 Steps — to a Healthy Outsource Agreement — Read more.
  • Women in Supply Management — Register Now for 5th Annual Summit — Read more.
  • December 5 Web Seminar: "Why the Contemporary CPO Requires Diverse Data for Effective Supplier and Spend Management" — Read more.
  • ISM and PMAC to Partner On Shared Academic Symposium — Read more.
  • ISM Aids Sustainability Study of Prominent Global Corporations — Read more.
  • Website of Interest — Read more.
  • Term of the Day — Read more.
  • It's Easy to Subscribe to the Just in ETime Newsletter — Read more.
  • Contact Us — Read more.

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November Manufacturing ISM Report On Business®: PMI at 49.5%

Economic activity in the manufacturing sector contracted in November following two months of modest expansion, while the overall economy grew for the 42nd consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business®.

The report was issued today by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management™ Manufacturing Business Survey Committee. "The PMI™ registered 49.5 percent, a decrease of 2.2 percentage points from October's reading of 51.7 percent, indicating contraction in manufacturing for the fourth time in the last six months. This month's PMI™ reading reflects the lowest level since July 2009 when the PMI™ registered 49.2 percent. The New Orders Index registered 50.3 percent, a decrease of 3.9 percentage points from October, indicating growth in new orders for the third consecutive month. The Production Index registered 53.7 percent, an increase of 1.3 percentage points, indicating growth in production for the second consecutive month. The Employment Index registered 48.4 percent, a decrease of 3.7 percentage points, which is the index's lowest reading since September 2009 when the Employment Index registered 47.8 percent. The Prices Index registered 52.5 percent, reflecting a decrease of 2.5 percentage points. Comments from the panel this month generally indicate that the second half of the year continues to show a slowdown in demand; respondents also express concern over how and when the fiscal cliff issue will be resolved."

Read the entire Manufacturing ISM Report On Business® release.

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Feature Article: Five Rules — and 10 Steps — to a Healthy Outsource Agreement

University of Tennessee researchers teamed with the International Association for Contract and Commercial Management to produce The Vested Outsourcing Manual: A Guide for Creating Successful Business and Outsourcing Agreements. The manual is designed to help buyers and suppliers implement the changes needed to bring outsourcing up to speed. Vested outsourcing, or simply "vested," is an outcome-based business model that emphasizes collaboration and innovation between a company and its supplier or service provider to create and share value, and thus achieve a long-term win-win partnership. In a nutshell, vested takes the partners beyond the traditional transaction-based outsourcing model: Companies buy desired outcomes rather than transactions. This process focuses on Vested's five rules, or tenets, that are linked to 10 core elements for developing an effective long-term business partnership based on collaboration — creating and sharing value for mutual success.

This article explores how the five rules and 10 elements link together.

Read this eSide Supply Management article online.

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Women in Supply Management — Register Now for 5th Annual Summit

Register now to attend the 5th Annual Women Executive Supply Management Summit, to be held February 5-7, 2013 at the Doubletree by Hilton New Orleans. This event delivers supply chain management strategies as well as general business approaches to help you streamline your enterprise.

Find out what other organizations are doing to get ahead. Hear from top performers representing General Mills, IBM Corporation and more. The program is open to all professionals in supply management who value diversity and innovation, with an emphasis on women executives, their direct reports and those interested in building their career in supply management. Women Executive Supply Management Summit sessions include:

  • Navigating an Uncertain and Volatile World Economy
  • Your Secret Weapon — Discover the benefits of using an organization that is WBENC and/or NMSDC-certified.
  • Supply Chain Management in a Global Economy — Join IBM, a multi-award winning company and thought-leader in supply chain management, for an engaging conversation on supply chain globalization.
  • Leadership: Confidence, Complexity and Coaching
  • Executive Roundtable Networking
  • Two Essential Ingredients: Strong Teams, Unwavering Ethics
  • WEConnect International: Women-Owned Enterprises and Value in the Supply Chain

Hosted by Institute for Supply Management™ (ISM), the 5th Annual Women Executive Supply Management Summit is at the same time and location as the 10th Annual Black Executive Supply Management Summit. Each summit has its own set of workshops, but general sessions are together. Summit registrants are welcome to attend any of the concurrent sessions. Additional time has been built into the schedule to allow for active networking. Students in supply management degree programs are also invited to attend.

Register now by visiting the ISM website. Registration is US$949 for ISM members and US$1,149 for nonmembers. Student Member rate is US$250. Fees include all summit workshops and scheduled meals. Register by December 28, 2012 to receive a US$100 discount. (Student registration is not included in the discount offers.)

All sessions are at the Doubletree Hilton New Orleans, 300 Canal Street, New Orleans, LA 70130. For hotel reservations, please book online. Book by January 7, 2013, to receive the special rate of US$169. NOTE: Free in-room Internet was negotiated for guests staying at host facility.

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December 5 Web Seminar: "Why the Contemporary CPO Requires Diverse Data for Effective Supplier and Spend Management"

Date: Wednesday, December 5, 2012
Time: 12 p.m.-1 p.m. — US Eastern
11 a.m.-12 p.m. — US Central
10 a.m.-11 a.m. — US Mountain
9 a.m.-10 a.m. — US Pacific
5 p.m.-6 p.m. — GMT
Price: No cost
Length: 60 minutes
Format: Streaming only
Sponsor: LexisNexis
Host: ISM

The modern chief procurement officer relies on a series of strategies for making informed decisions regarding suppliers and spending. With a variety of procurement risks looming around every corner — including supply chain disruptions, general supplier risk and a failure to act on derived intelligence. Now more than ever, procurement executives must leverage data to fuel their strategies for 2012 and beyond.

In this web seminar, attendees will learn:

  • The current pressures faced by CPOs in regards to supplier and spend management
  • The necessary strategies for extracting better intelligence into your supplier base (and how to best leverage that intelligence)
  • The required solutions for maximizing procurement and spend management data collection and analysis.


Christopher Dwyer
Research Director
Aberdeen Research


Linda Michels
Vice President, Corporate Learning Systems
ADR North America, an ISM Services Company

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ISM and PMAC to Partner On Shared Academic Symposium

Institute for Supply Management™ (ISM) and the Purchasing Management Association of Canada (PMAC) have announced immediate plans to work together to present the longstanding academic symposia each organization offers. The intent will be to alternate the event and venue each year between ISM and PMAC to create an inclusive North American academic symposium.

Cheryl Paradowski, PMAC's president and CEO says, "Both associations are committed to supporting research that advances the supply chain profession and believe this agreement will increase the number of high-quality submissions from around the world for both events. Each organization will retain the unique flavor of its symposium, which will offer attendees different experiences annually."

"It's great to see two of the world's leading organizations in the field working together," says ISM CEO Thomas W. Derry. "This is a seminal event for the profession each year."

PMAC recently hosted its 10th Annual International Symposium on Supply Chain Management in Toronto. PMAC will wait to hold a symposium until 2014 and, for 2013, is encouraging interested individuals to attend or present at the 23rd Annual North American Research Symposium on Purchasing and Supply Chain Management. The event is scheduled for March 14-15, 2013 in Phoenix/Chandler, Arizona.

Registration information for the 23rd Annual North American Research Symposium on Purchasing and Supply Chain Management is available on the ISM website.

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ISM Aids Sustainability Study of Prominent Global Corporations

Institute for Supply Management™ (ISM) members can now access an exclusive supplement to the 2012 Sustainability Leadership Report for an inside look at how U.S.-based purchasing/supply professionals' perceptions and ratings compare to other respondent groups across the globe.

The 2012 Sustainability Leadership Report is a quantitative analysis of actual perceived performance around environmental, social and governance (ESG) factors for 100 leading companies. This is the second year that ISM has aided brand consultancy Brandlogic and sustainability investment analytics provider CRD Analytics in a joint study measuring perceived sustainability performance.

ISM provided the U.S.-based purchasing/supply management professional sample for the 2011 inaugural survey as well as the most recent Corporate Sustainability Brand Perception Survey, conducted in summer 2012. The study included purchasing/supply management as well as investment professionals and graduating university/college students located China, Germany, India, Japan, United States and United Kingdom.

2012 Sustainability Leadership Report: A Supplemental Look at Perceptions Among Purchasing Professionals was prepared exclusively for ISM by Brandlogic and CRD Analytics and is available as a PDF download from the Research page on ISM's Sustainability and Social Responsibility website.

Among the unique findings in the supplemental report are the comparison of ISM respondents' ratings on environmental, social and governance (ESG) factors against those of other respondent groups. For example, ISM members are tougher graders on each ESG dimension than are all purchasing professionals and all respondents on average. The supplemental report also reveals purchasing professionals worldwide award companies higher perceived performance ratings than all respondents worldwide, on average.

The publically available 2012 Sustainability Leadership Report can also be found on ISM's Sustainability and Social Responsibility website or downloaded directly from Brandlogic.

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Website of Interest

This month's Website of Interest is: The Outsource Blog.

The Outsource Blog is a forum for general discussion, news and views about outsourcing and offshoring — for exchanging ideas, debating issues and collaborating with other industry professionals.

Archives dates back to 2005, and blog posts number in the hundreds. Topics range from finding a good firm for IT outsourcing, to general outsourcing considerations in Dubai and India.

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Term of the Day

Today's ISM Term of the Day is: MARKET GRADE.

Definition: (1) A product that is of fair, average quality. It meets the standards of the trade and its quality is appropriate for ordinary use. This concept is used in applying the implied warranty of merchantability; (2) Term for the grading system used by the U.S. Department of Agriculture (USDA) in categorizing the quality of fruits, vegetables, meats and some processed foods.

A different Term of the Day is posted on the ISM Home Page each day — seven days a week. The Term of the Day is taken from the ISM Glossary of Key Supply Management Terms.

ISM members can access the online Members Only Glossary 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.

Access the online Glossary.

If you are not a member but would like membership information, visit the ISM website.

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If you have any questions or encounter any problems, please contact RaeAnn Slaybaugh.

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