1994 International Conference Proceedings (May 1994)

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Title:
21st Century Macro Trends: Impact on Purchasing/Materials
Abstract:
Purchasing and Materials people are currently experiencing increased competition, rapid changes in technologies, and increased emphasis on: Quality (TQM, Baldrige and ISO 9000), total cost versus price, long term contracts versus individual purchase orders, shrinking supplier bases, JIT deliveries and "anticipated" reduced inventories, out-sourcing of the functional activities including Purchasing, and "right sizing" Purchasing staffs with the emphasis on retaining those with technical skills. What else can we expect? We can anticipate additional and more drastic changes, and with these changes are "opportunities" to not only excel, but, more importantly, to be employed in the 21st Century. This paper will review the current trends, provide some insight as to what to expect as we prepare to enter the 21st Century, and steps we can take to capitalize on these "opportunities" in order to be more productive.
Authors:
Michael J. Moyer, C.P.M.


Title:
A Framework For Supplier Partnerships In Mexico
Abstract:
Since the early 1980s, many industrial organizations in developed countries have been striving to secure a larger portion of the global marketplace. To improve their competitiveness, many firms have adopted supplier partnerships as a strategic response. The notion of supplier partnerships as a strategic response emerged recently as an integral component of Japanese manufacturing practices. Japanese manufacturing practices have served as a model for organizations to emulate because Japanese manufacturers have demonstrated superiority in many global markets. Principal of the Japanese practices was the role that the purchasing function assumed in the Japanese organization, as buyers and suppliers work synergistically to increase their competitiveness. The adversarial approach found in traditional purchasing practices was not evident in the way that Japanese organizations sourced from a reduced base of suppliers and sought long-term relationships. The Japanese model of cooperative purchasing practices has worked with success in many industrialized nations and should also improve organizational competitiveness in developing nations, such as Mexico. Thus, this paper presents a framework for supplier partnerships and explores their adaptation in Mexico.
Authors:
Daniel A. Glaser Segura, CPIM
Richard E. White, PhD


Title:
Applying ISO Standards to Improve Purchasing Performance
Abstract:
If you haven't heard about or received literature on the ISO-9000 standards, you have probably been on a information sabbatical or taken a leave of absence. The ISO standards are hot . . . . Why? Because they provide a set of guidelines, which if used correctly, can form the basis of a quality system for your department, your plant, or your company. To top it off, you can become a registered company, sometimes referred to as certified, which could be a requirement of an international customer or provide the basis for a sales initiative here in the United States. It can also be modified to serve as a standard for purchasing quality system design. At least that was our premise as we sought to apply the standard to purchasing operations. The balance of this paper will describe the purchasing guidelines and an audit program which can be used to assess a given purchasing department.
Authors:
George Harris


Title:
Benchmarking MBE Practices to Revitalize Minority Sourcing
Abstract:
Sourcing from Minority Business Enterprises (MBES) seems to have plateaued in the United States, at least from the private sector. To help reignite passion for this crucial national resource, we undertook a study to identify best practices in minority sourcing. This paper reports our early findings. In part one, we explore the nature and importance of benchmarking. In part two, we discuss the nature and role of MBEs in an organization's supplier pool. Part three is devoted to a review of MBE sourcing practices and the identification of selected best practices to help revitalize and reenergize existing minority sourcing efforts.
Authors:
Eberhard E. Scheuing, Ph.D., C.P.M.
Debra K. Goldmann
Michael C. Rogers, J.D.


Title:
Benchmarking and Purchasing
Abstract:
Benchmarking has received much attention in recent years. This paper looks first at the definition of benchmarking, its purposes, roles and uses. Next, the benchmarking process is reviewed followed by a look at internal and external benchmarking. Lastly, the benchmarking process is applied to the purchasing function followed with a discussion of the CAPS Purchasing Performance Benchmarks.
Authors:
Lee Buddress, C.P.M.
Alan R. Raedels, C.P.M.


Title:
Benchmarking: A Way to Superior Procurement Performance
Abstract:
In today's competitive global economy, procurement and materials management must continually strive for superior performance. Benchmarking focuses on improving performance by understanding current processes and practices, then proactively searching for and incorporating the beat from industry leaders.
Authors:
Laura M. Birou
Barbara Taylor Cofield, C.P.M.


Title:
Beyond Buying: Purchasing's Changing Role
Abstract:
Buyers must focus beyond buying in order to assure that they continue to grow within the changing role of the purchasing professional. Traditional transaction based procurement must be replaced by strategic sourcing management.
Authors:
Jim Limperis, C.P.M. CFPIM
Richard G. Weissman, C.P.M.


Title:
Beyond Win-Win Negotiations to Partnership Development
Abstract:
Extensive attention is given to partnership development between suppliers and purchasers. At the same time, much has been said about win-win negotiations. However, some basic human tendencies and dysfunctional aspects of negotiations mean that win-win negotiations do not necessarily lead to successful partnerships. The human tendencies and dysfunctional aspects of negotiations are reviewed. The rational for a distinct, collaborative problem solving approach to partnership development is then presented.
Authors:
Larry R. Smeltzer


Title:
Commodity Futures and Options as a Price Risk Management Tool
Abstract:
Demands for profit margin enhancement have dictated that today's purchasing professional utilize all available resources to better manage price volatility associated with the raw materials that they or even their suppliers purchase. This paper is introductory, yet comprehensive, and addresses the very practical aspects of initially developing a futures and options hedging program. The first portion of the paper examines the historical development of futures hedging; governmental regulation on the industry; commodity exchange functions and operations; trading floor procedures; basis analysis; the benefits and limitations of hedging; and futures-based pricing strategies. As a result, the reader should gain an understanding of the mechanics and benefits of futures and options hedging and an understanding of the initial steps to take in having their companies begin using this price risk management tool. It has been found that an understanding of exchange development, procedures, and government regulation, aid in minimizing the misconceptions which do exist concerning futures use in business and their role in the economy. With this as a reference, the NAPM seminar will rely heavily on case studies to develop practical knowledge of this price risk management tool.
Authors:
Michael Stanly, C.P.M.


Title:
Consignment Inventory Program: A First Step to JIT
Abstract:
In order to succeed in today's fast changing competitive environment, Procurement organizations are faced with the task of reducing product introduction cycle times and unnecessary inventory investment exposure while at the same time providing 100% material availability to support changing needs.
Authors:
Adrian T. Despres, C.P.M.


Title:
Contracting for Hazardous Materials Disposal
Abstract:
OSHA standards and most state laws mandate that disposal of hazardous materials be in keeping with the guidelines of all federal, state and local jurisdictions. The user's responsibility runs from "the cradle to the grave." The common interpretation of "cradle to grave" is from the creation of the material until it is either completely destroyed or otherwise becomes inert. Users cannot delegate their responsibilities under the Act. Since some hazardous materials do not degrade for thousands of years, the implications are tremendous. The OSHA standard also covers such responsibilities as training; informing employees of hazards; developing a facility list of hazardous materials used at the site; informing local and state officials of the amount materials stored, generated or used at the facility; labeling of materials; and procedures for the Material Safety Data Sheet (MSDS). This paper provides a method for contracting with hazardous materials disposal companies. Merely contracting with a company to safely dispose of materials does not relieve the user of the ultimate "cradle to the grave" responsibilities. Even an official certificate of disposal provided by most disposal companies will not relieve a user for responsibility of future exposure. The following sample contract, if followed, will help mitigate the user's risk.
Authors:
Ernest T. Lee, C.P.M.


Title:
Countertrade and the Marketing/Purchasing Interface
Abstract:
Countertrade appears to be growing in importance in international commerce. Discussions with purchasing and marketing professionals indicate that it is not unusual for tensions to arise between these two critical functional areas within firms when countertrade transactions are being discussed internally, negotiated with the potential trading partner, and implemented. This paper discusses these tensions and prescribes potential remedies for reducing or eliminating them.
Authors:
Dr. William R. Smith, Jr.
C. Dan West


Title:
Cut Supplier Lead Times By 50% - No Mirrors, No Kidding
Abstract:
Every buying organization wants shorter suppliers lead times - a lot shorter. In the past, we have expedited, negotiated supplier-held and consigned inventories, made deals with distributors to stock OEM items, and pushed for supplier partnerships. In the end, the ebb and flow of the economy has had, perhaps, the greatest impact on supplier lead times - lower backlogs mean quicker deliveries.
Authors:
Michael Harding, C.P.M., CPIM


Title:
Developing Your Cross-Cultural Negotiating Skill
Abstract:
We live in a global economy. Increasing numbers of U.S. companies have become involved in international purchasing. Consequently, it is vital for American purchasing managers to know how to deal with foreign sellers. Each culture has its own distinctive approach to the exchange process. Differences exist regarding what should be discussed and in what order, how formal the meetings should be, who should attend, and the role of a contract. This paper looks at some of the differences in negotiating behavior that exist among different societies. Emphasis is placed on the differences in communication styles, though other topics are also discussed. Suggestions are offered on how to improve one's cross-cultural negotiating skill.
Authors:
Michael Kublin, Ph.D.


Title:
Doing More With Less: Proven Strategies For Success
Abstract:
Success today requires innovation and creativity in an uncertain environment that is often defined by scarce resources. Rising to this challenge demands that we think in new and different terms. The responses that guaranteed success yesterday are often not appropriate to meet the challenges of today.
Authors:
Diane Brown, C.P.M., CFPIM


Title:
Effective Management of Volunteers
Abstract:
Finding, eliciting participation from and rewarding volunteers is difficult for groups such as NAPM and its local affiliates. This paper highlights some of the issues and problems associated with these tasks, and suggests solutions to aid Boards of Directors, Officers and Committee chairs of these groups. Also included are directions for conducting effective and interesting meetings and suggestions for long-term planning.
Authors:
Alan R. Raedels, Ph.D., C.P.M.
Lee Buddress, C.P.M.


Title:
Ethics Violations: Truth & Consequences
Abstract:
Three situations involving ethical (and legal) violations are examined with regard to the underlying issues and how they might be handled and preferably prevented. The first two situations look at the role of corporate environment, the role of relative organizational power, the role of evidence and the nature of gender-specific issues. The third situation looks at indirect management of lateral functions and the role of teams in supplier management. The purpose for studying these cases is to increase awareness of the potential for problems, increase understanding of issues which some individuals may never encounter directly and learn how to create an environment which provides the safest and most productive workplace.
Authors:
Mary Lu Harding, C.P.M., CPIM, CIRM


Title:
Getting the Most from the C.P.M. Examination Diagnostic Practice Exam
Abstract:
This paper provides an in-depth discussion of how to use the Certified Purchasing Manager (C.P.M.) Diagnostic Practice Exam to evaluate your knowledge of purchasing, develop study strategies to improve your knowledge of purchasing, and prepare for the C.P.M. Examination.
Authors:
Dr. Michael A. McGinnis
J. David Bostic, C.P.M.


Title:
Handling Conflicts When Purchasers Also Become Sellers
Abstract:
Downsizing, rightsizing, or whatever kind of spin we choose to put on it, is affecting everyone in one way or another. We can argue that it presents a case for pure survival or one for new opportunities. However, we look at it, downsizing creates dilemmas for Purchasers that encompass many areas. The specific dilemma that this presentation addresses is responsibility for both Purchasing and Selling. The problem raises more questions than answers, but answers are emerging and will multiply as the issue is discussed further.
Authors:
Mark R. Orshak, C.P.M.


Title:
How To Maintain Ethical Standards When Starting A Cross-Functional Commodity
Abstract:
Today's business environment is complex with the introduction of new products and technology at a rapid pace, the proliferation of information and the ever changing market place. Thus the sourcing decision is very critical to the company's future. More of the company dollars are being spent on materials and services and not on labor as in the past. So the decisions we make need to be in the best interest of our company and involve all those impacted departments. This is one of the reasons for adopting the Cross-Functional Commodity Team approach.
Authors:
Joseph A. Leister, C.P.M.


Title:
How To Succeed As A Cross-Functional Team
Abstract:
This paper describes the composition of cross-functional teams. It also outlines six competitive advantages, obstacles to success and strategies for the implementation of effective cross-functional teams. The paper points to the critical importance of such factors as leadership, empowerment, goal-setting, boundary management, performance appraisal, recognition, team size, interpersonal relations, and management support.
Authors:
Glenn M. Parker


Title:
ISO 9000 vs. TQM: Paradigms in Supplier Management
Abstract:
ISO 9000 is a supplier management system that comes from a tradition based on Taylor's Scientific Management. Total Quality Management has challenged that way of viewing the world of work. This paper briefly describes the two systems, contrast some differences, and applies them to the supplier management strategy.
Authors:
Daniel J. O'Leary, CQE, CQA, CRE


Title:
Improving Negotiation Skills Through Bargaining Games
Abstract:
This paper examines the benefits of using bargaining games as the basis for teaching negotiation principles and skills. They permit negotiators to practice in a non-threatening environment and to learn both from their own experiences and from the experiences of others. This paper discusses the nature of bargaining games with their advantages and disadvantages. It also provides suggestions on where to find appropriate games, exercises, and cases and suggests approaches for combining the use of bargaining games with readings and instruction to help individuals improve their negotiation skills.
Authors:
Carl R. Templin, Lieutenant Colonel
Michael E. Heberling, Lieutenant Colonel


Title:
Interfunctional Coupling: Implications for the Selling Process
Abstract:
Purchasing professionals are in frequent pursuit of opportunities to enhance performance and overall effectiveness. Some of the options require slight modifications in process and effort and others demand monumental shifts in the way things are done. So it is with interfunctional teams in most organizations. The idea that teams of people from assorted areas are now required to make decisions on everything from sourcing to new product development is still somewhat of an anathema to many in the supply management field. However, this reality is likely to become a mainstay in industry for years to come. In addition to the obvious changes or adjustments internally, cross functional coupling also demands changes from external stakeholders. One of the most obvious of these is the marketing representative of suppliers. Thus, the focal point of this paper is to examine how marketing and sales should change to accommodate purchasing differences.
Authors:
Alvin J. Williams, Ph.D.


Title:
International Outsourcing: A current Analysis
Abstract:
The study investigates the influence of three competing influences in international outsourcing; a) the characteristics of the sourced components, b) the transactions costs associated with supply contracts, and c) the competitive advantage of the product in the finished goods market. The data is collected from purchasing agents and tested using regression analysis. The findings indicate that a) the characteristics of the component have little effect on contractual arrangements, b) asset specificity has a weak influence on the negotiation process, c) uncertainty has a weak influence on the period of the contract, d) the quality of the finished product has the strongest effect (of all the variables included in the study) on the contractual arrangements, and e) the outcome variables of Cooperation, Trust, and Satisfaction are closely correlated. The implications of these findings are two-fold. First, it seems that purchasing managers should be less concerned with protecting transaction-specific assets than with protecting the firm's output in the finished goods market. Second, in order to achieve the above suggestion, purchasing agents should coordinate sourcing decisions with not only the production/manufacturing departments, but with sales and marketing too, in order to ensure that the final positioning strategy is supported by components procured from external suppliers.
Authors:
Alex Sharland Ph.D.
Larry Giunipero CPM, Ph.D.


Title:
Investment Recovery: Partnering For Profits
Abstract:
Without a doubt, the single largest opportunity for reduction of waste in an organization rests with efficient management of inventory. When considering the potential of this axiom, it is important to define that task in GENERAL terms. "Inventory" - dollars expended that are not adding value to a firm - extends well beyond the asset listed on an organization's balance sheet. There are many other pockets of inventory resting - perhaps hiding - in expense accounts throughout current and past financial statements. It has often been said that the mark of a true manager is the ability to perform in difficult times. Continuing to find opportunities to maximize profitability, through cost reductions -- or cost offsets - is a means toward that end.
Authors:
Rene A. Yates, C.P.M.


Title:
Logistics Process Reengineering
Abstract:
Logistics process re-engineering is defined as the fundamental overhaul of an enterprise's basic purchase to customer delivery process in order to remain competitive. New approaches to re-invented supply chain strategies, strategic supplier, customer, and third party partnering, and technological innovations will be covered addressing the fundamental rethinking and radical re-design of logistics management systems.
Authors:
Peter A. Crosby, CMC


Title:
Managing The Supply Chain: The MRO Distributors' Role In Removing Redundancies
Abstract:
Recent changes in the industries that industrial distribution serves have expanded the conventional role of the distributor. Buying, inventorying, and selling will no longer meet the requirements of many customers.
Authors:
Tom C. Reid


Title:
People Strategies/Buying Strategies
Abstract:
Effective communication is the most important strategic weapon that purchasing professionals need to optimally manage the supply base. Excellent personal interaction skills, with internal and external sources, are necessary to excel in the procurement function.
Authors:
Richard G. Weisman, C.P.M.


Title:
Portfolio Analysis: The Mapping Tool For Developing Commodity Strategies
Abstract:
Portfolio Analysis is a Purchasing planning and decision support tool which helps Business and Purchasing Managers understand the nature of the purchasing portfolio. The portfolio matrix assists purchasing managers in planning the necessary actions to generate profit, reduce risk and secure competitive advantage. This technique will assist in planning the development of the purchasing team and in applying individual competence to the commodity profile.
Authors:
William L. Michels, C.P.M.
E.J. Hughes, M.A., M.I.P.M., M.I.T.D.


Title:
Practical Negotiation - The Process for Creating and Sharing Value
Abstract:
When we think of negotiation, we usually focus on the implicit, two or more parties sitting across a large mahogany table rather than the informal, daily occurrences involving those we can't command, but whose cooperation is necessary to our success and happiness. A key to successfully conducting the implicit negotiations is mastery of the informal day to day negotiations. The implicit negotiations will get you through major contracts or disputes, but establishing ability in the informal negotiations will help you succeed in life.
Authors:
Norbert J. Ore, C.P.M.


Title:
Principled versus Positional Negotiation: Avoiding Compromising Situations
Abstract:
Negotiations are an important activity for the purchasing professional. They have the potential to either strengthen or strain buyer-supplier relationships. In industry, negotiations are beginning to move away from the traditional adversarial style known as "positional." The current trend in negotiations is to be more cooperative or "win-win" in nature. This latter approach is known as "principled."
Authors:
Michael Heberling, Lieutenant Colonel, USAF, Ph.D.
Carl Templin, Lieutenant Colonel, USAF, Ph.D.


Title:
Professional Purchasing: A Catalyst For "Reinventing Government" (A Case Study)
Abstract:
New York City's purchasing system is undergoing sweeping change in the wake of amendments to the City Charter adopted in 1989. Some change was directly called for by the new Charter, but more fundamental changes are the result of initiatives, not Charter mandated, to develop and deploy a strong professional purchasing capacity in City agencies. This case study illustrates the impact reforming the purchasing function can have in a local government setting, as well as the difficulty of effecting such reform.
Authors:
Constance Cushman, J.D., C.P.M.


Title:
Purchasing - Creating Value, Not Buying It!
Abstract:
Purchasing has been described as buying the right products, in the right quantities, at the right time, at the right prices, and from the right source. It has also been defined as the manager of outside manufacturing. However, increased competitive forces have prompted corporate leaders to expect Purchasing to assume a more strategic role in the firm. Corporate strategy is no longer just positioning fixed activities along its own internal value chain. Successful companies reinvent the value chain, hence creating new value systems by leveraging the competencies and relationships between suppliers, manufacturers and even customers. These ever changing relationships prompt us to consider Purchasing or Procurement as more than buying, as managers, discoverers and cultivators of strategic relationships. This evolving role will require more sophisticated competencies of Procurement professionals and will therefore also necessitate changes in the roles of Procurement's leaders.
Authors:
Stephanie Coleman


Title:
Purchasing 2000: Building the Infrastructure
Abstract:
World class manufacturing firms who are leading the competitive race in the year 2000 will be confronting extensions of current competitive and business trends and will have to react quickly to still unforeseen worldwide events. Identified here are key competitive pressures forcing greater reliance on internal and external world class suppliers and the required procurement/sourcing and supply base attributes to compete effectively in the year 2000. Specifically addressed will be changing competitive pressures, resulting requirements for change in procurement/sourcing and supply base management infrastructure, and critical actions required for key business and procurement executives to ensure the necessary procurement and supply base infrastructure to maximize competitive contributions.
Authors:
Robert M. Monczka, Ph.D., C.P.M.


Title:
Purchasing Decision Support System Using Supplier Price Analysis - A Demonstration
Abstract:
This paper provides the framework for analysis of price structure of publicly held manufacturing operations. In addition it shows the impact of price increases on individual price components as well as the use of competitive bids for target price determination. The program uses a widely available spreadsheet and is user friendly.
Authors:
Richard G. Newman, DBA, C.P.M.


Title:
Purchasing Planning For Disaster - Are You Prepared?
Abstract:
If disaster strikes your organization, could your purchasing department respond? What level of internal customer service could you provide if the tools of your trade - your telephone, your fax, your copier, your COMPUTER - were no longer available? Frequently, an organization faced with disaster and subsequent recovery will require increased service levels from its purchasing department, at a time when the department's ability to respond has been seriously impaired. Advance disaster planning will ensure that your purchasing department is still capable of meeting the procurement needs of your organization, even if serious disaster strikes, thereby reducing the risk associated with a disaster. Proper preparation for disaster reduces the level of risk to the purchaser, the purchasing department, and thus the entire organization.
Authors:
Wade C. Ferguson, DBA, C.P.M.
Mark F. Hartley, DBA


Title:
ReEngineering For Purchasing Performance
Abstract:
The reason that we do not see astounding breakthroughs in productivity in the purchasing environment is that we are simply layering new technologies on top of outdated processes. What worked for us five or even two years ago will no longer work today. ReEngineering focuses on radical end-to-end process improvement to achieve dramatic improvements in performance. Empowerment at its purest, it allows individuals to innovate within a clear new vision of our challenges today and tomorrow.
Authors:
Laurie L. Stover


Title:
Registration Under ISO 9000: Costs and Benefits
Abstract:
The ISO 9000 series of standards has been widely recognized because it defines responsibility for quality, places it on the producer, and enables purchasers to rely on the producer's system. Reliance on ISO 9000 registration, however, is feasible only if the parties to the purchase action understand quality systems and the work of third party registry organizations. A major barrier to reliance is removed when purchasers appreciate the burden assumed by producers when committing to conform their systems to one of the three ISO models. The nature of that burden and indicators of the magnitude of the investment required is approached by exploring experiences of companies that have achieved registered status. The principal burdens are identified as internal, (personnel time for procedure verification or development, cultural or attitudinal change, documentation, work force education) and external (consultation and registry expense) . The qualification process may be perceived as costly, giving rise to a need for defining benefits. A summary of reported benefits is included. The approach of one company to the qualification process and successful registration is cited. It is noted that pursuit of registration could be a decision that is independent of qualification, and for some companies whose systems may already be fully reliable, may seem an unnecessary expense.
Authors:
Stanley N. Sherman


Title:
Selection Of Currency And Hedging Strategy In Global Supply Management
Abstract:
The best choice of the pricing currency used in international procurement is a function of the product being purchased and the country where it is manufactured. In cases where the best currency is not the U.S. dollar, hedging is required. The best choices for hedging strategy are described. A strategy of actively choosing a hedging mechanism based on predicted dollar values is recommended.
Authors:
Richard Locke, Jr.
Jimmy Anklesaria


Title:
Shared Commitment To MWBE Development
Abstract:
The panel will include three experienced and committed MWBE coordinators from Fortune 500 companies sharing their success as part of the National Minority Supplier Development Councils (NMSDC) affiliate, the Houston Business Council (HBC). Through participation in HBC's Buyer Advisory Committee (BAC), the panelists have formed a unique partnership with other procurement decision makers to learn about minority and women business development. They share ideas and experiences and take an active role in the programs and services offered by HBC. The BAC shares ideas on increasing supplier participation, support for corporate MWBE programs and utilizes the NMSDC affiliated council network to support individual and corporate efforts with MWBES. The panel will divide topics into three areas: Program Rationale & Getting Management Commitment; How to Develop & Sell Your Program; and Outreach, Innovation & Reality.
Authors:
Debbie Newman
Patricia Richards
Linda Butler


Title:
Strategic Contracts With Software Suppliers
Abstract:
A distinct challenge in today's purchasing environment is the emphasis by company management to foster and proactively utilize the purchasing department in all aspects of acquisition. It is because purchasing departments are needed to assist internal customers in acquiring software that draws interest to this workshop. It is intended for the participant to acquire a guide to software acquisition and licensing as well as a path to improved software supplier and purchaser relationships. The format is composed of three parts: (1.) Strategic negotiations and research results are outlined and described; (2.) A checklist of terms and conditions for mainframe, minicomputer and microcomputer (PC) software contracts is provided to the purchasing professional serving a wide range of computer and software users; and (3.) Proactive measures including the formation of strategy, timing of negotiations, avoidance of supplier's contract, determination of cost effectiveness and upgrades are discussed. A forum will be available to facilitate audience members who want to ask questions and share strategies. Lastly, handouts will include a sample of common contract terms and conditions, a list of firms that provide seminars on software contracting and related legal aspects, and a list of firms that provide expert consultation on the computer hardware and software industry.
Authors:
Kathleen E. Macie, C.P.M.


Title:
Supplier Network Development: Localizing The Kyoryoku Kai In The West
Abstract:
The post war years have witnessed the rise of Lean Production in Japan. However, arguably, the key to the latters' success is not that the Japanese assemblers have become lean themselves, but rather that they have developed a lean supplier network. The most important factor exhibited by the Japanese in building these inter-company relationships and creating a world class supplier base is the Kyoryoku Kai or Supplier Association. This has been demonstrated to give both the suppliers and final assemblers considerable competitive advantage. This paper explores the spread and necessary localization of these groups outside Japan and the benefits that may accrue.
Authors:
Peter Hines


Title:
Supplier Performance: Using Customer Surveys To Improve The Process
Abstract:
This paper will discuss a new technique to employ when analyzing the performance of suppliers. With the greater emphasis in today's business world on quality-related issues, it is recommended that customers (end users) be given a more interactive role in grading the compliance to expectations by vendors. To that end, the application of a supplier performance evaluation system based on the service Quality format should be implemented in Purchasing organizations.
Authors:
Peter E. O'Reilly, C.P.M.


Title:
Taking Quality On The Road
Abstract:
Since 1988 our company, the Union Pacific Railroad, (UPRR), realized that there was a need to exercise more effective control over the items we purchased, particularly since we were in the developmental stages of our internal Total Quality Management System. At UPRR it was quickly realized that we could not inspect every item received from our suppliers. However, we knew that if we were to substantially improve our service to our customers considerable improvement would be required of our internal processes and of our suppliers. There was need to place the responsibility for product and service quality directly on the supplier. Union Pacific Railroad determined that the best approach was to require that the supplier design, develop and implement their own comprehensive quality assurance program.
Authors:
Geoffrey R. Sommerville, C.Q.A.
Wayne W. Mattson, C.P.M.


Title:
Telecommunications Procurement Strategies in The U.S. and Japan
Abstract:
In recent years, dramatic changes have occurred within the telecommunications industry which have facilitated rapid growth and the internationalization of procurement in this industry. The major changes include deregulation in the U.S., the opening of the Japanese market, and the diffusion of technology in both countries. This paper develops a complex and strategically oriented model of procurement in the international telecommunications industry- the Interactive Procurement Exchange Model. The model is then used to view the rapidly changing telecommunications industry in the U.S. and Japan and to draw comparisons between the two countries.
Authors:
Wesley J. Johnston, Ph.D.


Title:
The Effects of Purchasing Strategies on Quality
Abstract:
This research examined how the supply management strategies used by manufacturing firms--to procure components that are critical to the quality of the final product--actually affect the final product's quality. Quality was defined according to certain dimensions of quality identified by Garvin (1987). The supply management strategies that were considered involved a continuum of strategies between a comprehensive implementation of Just-In-Time Purchasing (JITP) to a supply management strategy that is quite the opposite of JITP--referred to as the traditional supply management strategy (TSM).
Authors:
Matthew A. Waller, Ph.D.


Title:
The Future Of Purchasing: A Process Becomes A Department
Abstract:
I predict a very bright future for purchasing, as the process progresses to procurement and on to strategic supply management. The term "purchasing" will change in meaning from a process to a department. As has been recognized at numerous world class organizations, procurement and supply management demand a cross-functional approach to the four key processes of: requirements determination, sourcing, cost management, and supplier relations management. As Mike Doyle and I point out in our 1993 book, "The American Keiretsu":
Authors:
David N. Burt, Ph.D.


Title:
The Purchasing Function and Responsibility in the Enterprise of the Future
Abstract:
Responsibility of purchasing for profits is increasing, responsibility of purchasing for business is growing strong, responsibility of purchasing for costs is extremely increasing, responsibility of purchasing for quality is increasing by lepas, responsibility for time-to-market is growing, responsibility for environment is starting off and is carrying into extremely, purchasing forms and influences streams of traffic, rush of traffic and conveyances of transports, new consciousness for JIT, internal responsibility for stock is decreasing, cooperation with and integration in the planning area of the enterprise is increasing, new policy with suppliers - single sourcing is increasing, the legal responsibility of purchasing is important, global sourcing is increasing, contribution of purchasing - simultaneous engineering is coming, process-orientation is increasing, competence of technology is increasing, the contribution of Lean-Management is developing, new technologies, Distance Electronic Data Interchange, team-decision, team-orientation, team-work of the purchasing function with the demander is increasing.
Authors:
Heinz Pechek


Title:
The Role Of Carriers In Buyer-Supplier Partnerships
Abstract:
Research indicates an increasing incidence in strategic supplier partnering efforts for sourcing goods and services. The recent onslaught of articles evidenced in both practitioner and academic journals continues to support this trend. Additionally, the supply chain management concept is gaining more acceptance as a method of sustaining a competitive advantage in global markets.
Authors:
Julie J. Gentry


Title:
The Small MRO Distributor: An Endangered Species?
Abstract:
In the course of preparing a paper for last year's 78th Annual International Conference in San Antonio, it became apparent that there was a difference in the respective ways smaller and larger MRO distributors were adapting to information technology changes. That paper was based upon data from a survey of 50 distributors, and entitled "EDI and the MRO Distributor: A Report Card". Some of the survey responses, particularly appropriate to the smaller MRO distributor, were:
Authors:
Joel L. Thomas


Title:
Toward World Class Excellence: The People Side of MRP
Abstract:
MRP systems have been around for a long time, and we have all heard stories about companies whose MRP implementations were not as successful as those companies had hoped they would be. There are, we think, two underlying causes for this problem. One is that we tend to look at the MRP as a complex computer system that will answer all of our needs (or most of them). The second is that people tend to become slaves of the system, trying to feed it the "right" information in an attempt to analyze the mountains of data that the system generates.
Authors:
Terry Lunn, CFPIM, CIRM


Title:
Types of Contracts
Abstract:
This paper will look at eleven contract types available to professional purchasing personnel. It will cover when the contract type might be used and discuss the distinct differences and peculiarities of each one.
Authors:
Elaine M. Whittington, C.P.M.


Title:
Using a Purchasing Card as a Process Improvement Tool
Abstract:
Introduction. In today's economics environment, companies are increasingly interested in using a Purchasing Card to cut costs and "reengineer" processes in the area of purchasing. The Card is designed to increase productivity by empowering requisitioners to deal directly with suppliers for low-dollar, MRO purchases. This enables the purchasing department to focus on more value-added activities. The Card also cuts costs with the elimination of paperwork and the consolidation of supplier invoices into one billing statement.
Authors:
Jay C. Rising


Title:
Utilizing Purchasing Resources To Control Spiraling Healthcare Costs
Abstract:
Every company is justifiably concerned about soaring healthcare costs. It is now possible for companies to spend 25% of their wage and benefit costs on employee healthcare, which is an increasingly volatile labor relations issue.
Authors:
Todd R.C. Neely
Marybeth Regan


Title:
What Would A Creative Person Do With My Job?
Abstract:
Behaving creatively is not only a key part of being professional, it's also a measure of how highly one's professional services are valued. Anyone can learn to be more creative. It's all in knowing a few basic behaviors and developing a constructive, active point of view.
Authors:
Preston J. Leavitt, Ph.D., J.D., C.P.M.


Title:
Why are Women Paid Less? - An Examination of the Pay Gap in Purchasing
Abstract:
During the last decade, considerable attention has been given to the subject of gender as an influential factor in determining various employment attributes. Because the demographic profile of the National Association of Purchasing Management (NAPM) is increasingly female, it is certainly important that association members are aware of how gender may influence an individual's job satisfaction, potential for promotion, career choices, and management styles. However, of immediate importance is a recognition of the apparent salary inequities which continue to exist between men and women in the purchasing profession, why they may exist, and what may be done to help eliminate them.
Authors:
John M. McKeller, D.B.A., C.P.M.