1997 International Conference Proceedings (May 1997)

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Title:
A Purchasing Career in the Mid '90s and Beyond - Where Are You Going and How Are You Going to Get There?
Abstract:
The '90s buyer must be proactive in all aspects of purchasing - including his or her own professional development. A framework is needed that will help the participant answer the questions: 1) How can I continue to improve myself and become more valuable to my organization? 2) What are my career goals? 3) How am I going to reach my goals?
Authors:
Lee Krotseng, C.P.M.


Title:
Achieving World Class Sourcing Team Effort
Abstract:
While many variables can affect team performance, success requires the individual and collective effort of team members. Given that over 80 percent of firms surveyed use or plan to use cross-functional sourcing teams, understanding how to promote effort becomes critical. This session describes, step-by-step, what organizations must do to create and environment that recognizes and promotes sourcing team effort. The ideas presented are based on field research and experience with over 100 cross-functional sourcing teams, continuing research involving organizational work teams, and an integration of related work by leading group researchers.
Authors:
Robert J. Trent, Ph.D.


Title:
Adding Value Through Strategic Management of Goods and Services
Abstract:
Companies today are faced with ever increasing competition and must constantly adapt to changes in marketplace regulations/deregulations, globalization, advancing customer focused technology and services, growing quality requirements and constant cost improvement pressures. Strategically managing purchased goods and services positions a company to turn these changes into a competitive advantage by leveraging the company's buying power and maximizing the contribution of the supply base through aligned interests.
Authors:
Lisa Liles Peters


Title:
Advanced Sourcing: Transforming Supply Chains into Value Systems
Abstract:
Supply chains involve sequential exchanges where organizations cooperate but plan and act separately. In advanced sourcing, all players become interdependent elements in a value system who jointly and concurrently create value for mutual benefit. This paper presents a strategic approach to transforming supply chains into value systems through mutual "in-plants" and linked alliances.
Authors:
Eberhard E. Scheuing, Ph.D., C.P.M.


Title:
Assessing Cycle Time Reduction Payback for You and Your Supplier
Abstract:
Efforts to reduce cycle time through the channel have historically been secondary to schedule optimization and cost reduction. Cycle time reduction offers as much impact on inventory levels as schedule or cost changes. Measuring the impact of change in cycle time is difficult especially when cycle changes involve multiple functional organizations or companies. This article introduces flow models, a technique which offers a quick method to accurately estimate the relationships between cycle changes and inventory levels throughout the supply chain.
Authors:
Dr. M. Theodore Farris II


Title:
Benchtracking Purchasing Performance - A Management Tool
Abstract:
Because of today's competitive business environment, a purchasing organization must assure itself and its internal customer base that the costs of procured products and services are cost competitive and contribute to the overall corporate competitive position. Meeting this requirement presents real challenges since determining the competitive cost position is extremely difficult, time consuming, and expensive. Internal benchmarking is virtually impossible because of understandable constraints. Benchmarking by third parties may provide an answer but is expensive and only documents a position at a given point in time. The "Benchtracking" approach described here provides a tool to directionally track competitive costs when firm figures are impossible to obtain. Benchtracking's objective is to determine the comparative direction or trend, not the absolute position. Once this analysis is completed, measures are taken to confirm and continue the procurement strategies or take required corrective actions.
Authors:
Joseph J. Schoen, Jr., C.P.M.


Title:
Best In Class Integrated Travel Services Supplier Team
Abstract:
Travel and entertainment typically ranks as the third largest corporate expense. Senior management, aiming to reduce travel expenses while improving service levels, is more and more asking Purchasing to utilize its skills to reduce the cost of travel. How can purchasing departments unschooled in travel management, meet this new challenge? I will first discuss the current environment surrounding cost reduction efforts. Second, I will describe the major service supplier team: travel agencies, charge card, rental car companies and hotels. Third, I will present the critical elements of a corporation's travel requirements profile. The paper concludes with a model of how these elements can be integrated into a successful customer-focused travel management program, one which meets the ultimate challenge: to balance the company's needs with those of suppliers in creating a customer-focused partnership.
Authors:
Peter C. November, C.P.M.


Title:
Beyond Quality in Supply Management
Abstract:
In supply management, we can see both an increasing emphasis upon quality in management and yet an increasing dissatisfaction with it's results. Vendor assessment tools specify 'quality' and 'TQM' as categories for selection, and yet late deliveries and longer lead times still plague companies. Buyers purchase goods from suppliers with quality certification or with TQM programmes and yet products still fail on site or at assembly. Supplier development teams implement SPC training, team working etc., and product reliability does not improve or waste increases dramatically.
Authors:
Peter Stannack
Martyn Osborn


Title:
Building Blocks For Team Excellence
Abstract:
Teamwork is the ability to work together toward a common vision. The ability to direct individual accomplishment toward organization objectives. It is the fuel that allows common people to attain uncommon results.
Authors:
Jill A. Daily


Title:
Buyer/Supplier Performance Based Contracts Maximizing Success and Sharing Risk
Abstract:
In the past, contracts were negotiated solely with a set fee structure. Occasionally, a penalty clause would be negotiated into the arrangement, and less seldom an incentive clause was included. A Performance Based Contract (PBC) is the true Win/Win scenario of the perfect union of these concepts. Topics that warrant discussion include: Is a Performance Based Contract beneficial, can/should all contracts be performance based, what type of relationship should exist/be developed with the supplier and how does a customer/end-user participate in this process, what type of environment is conducive to making this type of relationship work, what do you base performance on, what characteristics should the buyer and supplier possess, and how do you implement this type of program?
Authors:
Lorrie K. Mitchell


Title:
Change Management: Basic Skills for Purchasing Professionals
Abstract:
Purchasing professionals face three challenges when managing change. They are: managing change within their own organizations, managing change with suppliers, and coordinating change among multiple buyer-seller departments. This paper presents insights into managing change, including dealing with resistance to change; the role of organizational culture in change management; and applying these insights to the change management challenges faced by purchasing professionals.
Authors:
Dr. Michael A. McGinnis, C.P.M., A.P.P.


Title:
Claris Corporation's Operations Re-Engineering: Change at the Speed of Light
Abstract:
In 1995, Claris Corporation, an eight-year-old wholly-owned subsidiary of Apple Computer, developed , produced , and marketed software programs for PC and Macintosh platforms. In late 1995, business more than doubled within 3 months when Apple Computer relinquished control of marketing and producing much of the Apple software. This increased the Claris SKUs (stock keeping units) handled from approximately 250 to 600+.
Authors:
Heide Wilson, C.P.M., CFPIM
Todd DuPlessis
Christine Yory


Title:
Conducting Efficient Internet Searches
Abstract:
Learn how to make the most of your Internet search capability with multi-variable Boolean search commands. This article will help both the experienced and novice Internet user increase the effectiveness of their use of the Internet. The use of the Internet is rapidly evolving into a tool which can aid and enhance the effectiveness of the purchasing professional. Nielsen Media Research reports Internet users spend an average of five hours and 28 minutes on-line each week. In order for purchasing professionals to effectively use the
Authors:
Dr. M. Theodore Farris II, Ph.D.


Title:
Cost Reductions - We Don't Get Enough Credit
Abstract:
Purchasing doesn't get enough credit and it's our own fault. There are significant contributions we are making to cost reduction that aren't being recognized . The reason these cost reduction contributions aren't being recognized is that we ourselves don't understand there value. The goal of this presentation is to identify these "unclaimed " cost reductions and show how they impact your company's bottom line. The six "unclaimed" cost reductions that will be explored are: 1)direct reductions that don't affect variance, 2) cost avoidance , 3) inventory reduction , 4) quality improvements, 5) reduction of the supplier base, and 6) establishing EDI partners.
Authors:
Mark S. Miller C.P.M., C.I.R.M.
Hank J. Mate C.P.M.


Title:
Creating A Factory Within A Factory
Abstract:
The concept of a factory within a factory describes a virtual organization. This approach results in a highly flexible enterprise with limited physical assets of its own. Instead, it holds a small number of suppliers responsible for most engineering and manufacturing activities. The lead company focuses on planning and coordinating supplier activities and on marketing the outputs of the virtual organization. Purchasing has become a strategic element in the value chain and a core competency of the firm.
Authors:
Dr. Habil Ulli Arnold
Eberhard E. Scheuing, Ph.D., C.P.M., A.P.P.


Title:
Creating Value Through Price/Cost Productivity
Abstract:
Executives at U.S. firms increasingly expect purchasing, working with suppliers, to achieve continuous price/cost reductions. However, expecting reductions to occur is different from actually realizing the intended improvement. Given purchasing's historical preoccupation with competitive bidding and price, buyers often find themselves ill-prepared to pursue price/cost reduction initiatives with suppliers. This proceeding presents various approaches for creating value (i.e., price productivity or improvement) by reducing, and eliminating where possible, the cost drivers that influence purchase price. The approaches discussed include (1) authentic pricing, (2) tolling, (3) identifying and removing waste, and (4) focusing on a supplier's operating profit drivers as a way to achieve price/cost improvement.
Authors:
Frank Haluch, C.P.M.
Robert J. Trent, Ph.D.


Title:
Creating and Operating a Viable International Procurement Office
Abstract:
International Procurement Offices (IPOs) have been in use for decades. Some have thrived. At least one is handling more than a billion US dollars per year in purchases. Others have failed to make significant impact on their companies and several have closed. This presentation explains some of the important aspects of making an IPO not just work, but thrive.
Authors:
Dick Locke


Title:
Credentialing in the Late 1990s: More Important than Ever
Abstract:
In this era of downsizing, combinations and consolidations, it is more important than ever that purchasing executives seek to maximize their credentials. Purchasing professionals are under immense pressures to accomplish that which is necessary to retain their positions as companies slash and pare general and administrative positions. Job security is perhaps at an all-time low.
Authors:
Randall W. Luecke, CPA, CMA, C.P.M.
S. Randolph Hayas


Title:
DAVINCI: Harnessing the Power of Technology to Tighten the Supply Chain
Abstract:
In the past, the relationship between information technology and business strategy has been a one-way street: business strategy drove the use of technology. Executive teams determined business strategies, and information technology (IT) managers implemented the supporting technology. Today technology is a key enabler of innovative business strategies. From supply chain integration that extends clear to the end user, to virtualized market channels that provide a new basis for global commerce, IT opens the door to new ways of doing business. These new, IT-enabled capabilities must be considered as strategies; otherwise, their full value may go untapped.
Authors:
Richard M. Vanatsky, C.P.M.
Terry A. Austin


Title:
Deployment of Best Practice Benchmarking Results
Abstract:
This session highlights an approach for effectively deploying best practice benchmarking results both within and across companies. The discussion is based on the Strategic Self-Assessment System (SSAS), designed by The Global Procurement and Supply Chain Benchmarking Initiative at Michigan State University, which offers member companies a means to assess current procurement and supply chain strategy/practice sophistication, to benchmark other companies/divisions internally or externally, and to develop action plans to address deficiencies and improve overall procurement and supply chain performance.
Authors:
Robert M. Monczka, Ph.D.
David J. Frayer, Ph.D.
Kenneth J. Petersen


Title:
Designing Auto-Resupply Systems
Abstract:
This paper outlines the process for designing and implementing an auto-resupply system. The planning process is described including determination of goals and appropriate participation. Different types of auto-resupply mechanisms are considered including Kanban, breadman, consignment, systems contracts and direct shipping from an MRP schedule.
Authors:
Mary Lu Harding, C.P.M., CPIM, CIRM


Title:
Developing Trust In Strategic Alliances: Concepts And Best Practices
Abstract:
Without trust, buyers and suppliers will not share cost information, tolerate mistakes, or make significant investments in a relationship. While trust is imperative for effective relationships, how can buyers quickly build high trust high performance (HTHP) relationships? What is needed is innovative skills and actions necessary to quickly build high trust high performance relationships.
Authors:
Christian Bechtel
Liane Easton


Title:
Developing Your Own Purchasing Home Page On The Internet
Abstract:
More and more purchasing departments are developing web pages. This paper first presents the characteristics of a good web page. Once the decision is made to create a web page, its purpose must be concisely defined. The elements of a web page, such as title, graphics, color, background, and content, are then presented. The information should be organized in a logical fashion considering both the user's needs and the maintenance of the information.
Authors:
Dr. Alan Raedels, C.P.M.
Dr. Lee Buddress, C.P.M.


Title:
Do You Speak My Language?
Abstract:
In today's competitive marketplace, companies must adopt global sourcing strategies. This inevitably presents purchasing professionals with new and changing challenges. New challenges because many of us with only limited exposure to international, intercultural business now find ourselves interfacing with unfamiliar cultures; changing because the countries and cultures where we are sourcing our products, parts and widgets are commonly in a stage of economic transition and rapid change. Information technology is more often than not the main driver of change. This set of circumstances results in an urgent need for purchasing professionals to keep current, to keep informed about developments in these 'source cultures'; it also means we must continually hone our intercultural knowledge and skills to ensure maximum performance. This workshop addresses these challenges. It opens with a critical issues checklist and a suggested basic toolkit for successful global sourcing, irrespective of the country. It goes on to highlight common problems encountered by American purchasing professionals in crossborder transactions and business partner management. The session suggests how American cultural preferences may encourage inappropriate handling of a selection of situations. The workshop focuses Asian business with particular emphasis on China, the emerging ' center of the world.' A series of presenter simulated situations will be used to illustrate and explain the consequences of culture in US-People's Republic of China business interactions. Participants will go on to contrast Chinese, Japanese and South Korean approaches in a short casestudy exercise. The workshop will close with a Q&A session.
Authors:
Andrea Charman
Ming Tsuai
Elaine Whittington, C.P.M.


Title:
Do the MBP No, it's not the Mambo By Purchasing. ....it's Management By Policy
Abstract:
If you want to learn how to align your Purchasing/Supplier Management functions with the organization's key business drivers, then this is the place to be. We will use some tools that will systematically show how your area relates to the key business drivers. By understanding these links you will be able to prioritize your activities to more accurately reflect the needs of the organization. You will get more bang for your efforts and you will be able to prove it.
Authors:
Ricardo R. Fernandez, C.P.M., P.E.


Title:
Effective Strategies In Supplier Diversity
Abstract:
Perhaps before we get into effective strategies, it would be worthwhile to clarify the business case for having supplier diversity programs in the first place.
Authors:
Reginald Williams


Title:
Effective Supplier Relationships Without Formal Alliances
Abstract:
The presentation will discuss purposed research that examines a spectrum of buyer-seller relationships that fall between "arm-length" and "formal alliances." The current phase of this research is: (1) categorizing various buyer-seller relationships available, and (2) identifying the benefits of the potential relationships that exist in addition to arm-length and formal alliances.
Authors:
Dr. Robert Landeros
Dr. Robert F. Reck
Dr. Judith Whipple


Title:
Effective Traffic Management
Abstract:
There are many opportunities available to improve the effectiveness of your traffic department. Primary principles, or "rules of thumb" may be used to help guide your effort. These rules, as discussed in this article, offer a strategic guide which emphasizes seeking the optimal total cost as you make the tradeoff between cost and service.
Authors:
Dr. M. Theodore Farris II, Ph.D.


Title:
Electric Energy Procurement: New Market Dynamics
Abstract:
The deregulating electricity market will bring choices and opportunities as well as risks and complexities for the energy manager. The difference between a successful and unsuccessful power procurement strategy will rest on the energy manager's ability to manage the burdens and extract value from the dynamics of the emerging competitive electric market. The workshop will focus on the changes to be expected, the tools that will be needed, and the opportunities and risks to be managed.
Authors:
Bruce K. Moffat


Title:
Electronic Commerce: Is This the Future State of The Supply Chain?
Abstract:
Understanding Electronic Commerce(EC) Is Critical To Assessing It's Impact On the Supply Chain. Electronic Commerce is defined as conducting or enabling the buying and selling of goods or services through electronic networks, including the Internet.
Authors:
Jeffrey Carr


Title:
Electronic Commerce: Putting Information Technology To Work Today
Abstract:
Many forward thinking companies are actively developing strategic plans to integrate some form of Internet-based electronic commerce into their supply chain management practices to allow them to develop and/or maintain a competitive advantage. Such electronic commerce offers many benefits and may very well hold the key to future success in an increasingly global marketplace; however, it is not without formidable obstacles that must be overcome before it gains wide-spread acceptance. Nevertheless, a number of innovative organizations have found ways to engage in electronic commerce - apart from the Internet -- by putting information technology to work today in purchasing.
Authors:
Brian G. Caffrey
Jenny Martin, C.P.M., A.P.P.
Roland Rugoletti, C.P.M.
Dee Smith


Title:
Engarde! Defend yourself from being Outsourced!
Abstract:
Outsourcing is a reality in today's organizations. Will your purchasing department become a candidate for outsourcing? To position yourself to answer the inevitable question, "Why should your purchasing operation continue to exist?" it is necessary to have an understanding of both outsourcing and the core competencies required of the purchasing process. What value does your purchasing operation bring to your organization and can you continue to justify your existence? Will your operation be viewed as a value-added, core competency or just internal overhead?
Authors:
Norbert J. Ore, C.P.M.
Wade C. Ferguson, D.B.A., C.P.M.


Title:
Ethical Issues In Global Purchasing: A Buyer's Guide To Gifts and Bribes Worldwide
Abstract:
Recently, gift and gratuity acceptance has been rigorously studied, primarily as it impacts the domestic buyer purchasing from domestic vendors. But given the global nature of today's sourcing environment, how do we cope with different ethical codes of conduct in different countries? In a nutshell, 'very carefully'.
Authors:
Mark F. Hartley, D.B.A.
Wade C. Ferguson, D.B.A., C.P.M.
Gregory B. Turner, D.B.A.


Title:
From Reactive To Proactive Procurement: A Case Study
Abstract:
This paper documents the efforts of a medium sized hi-tech manufacturer of laser lamps and power sources to move from a reactive purchasing operation based on repetitive purchase orders with many suppliers to purchasing by long term contracts with a few key suppliers based on partnerships. It includes the analysis of the costs of the old paper driven system and conversion to negotiation by cross functional teams using a strategic-proactive approach. The sequence of events from evaluation of the old system to the training of personnel involved with material acquisition is covered including the first reports of initial annual dollar savings of approximately $260,000.
Authors:
Richard L. Pinkerton, Ph.D., C.P.M.
Kathleen A. Pettis


Title:
Funny Business
Abstract:
Business in the 90s is: high tech, downsized, re-engineered, and full speed ahead...but is it funny? It better be if we are going to survive and thrive in this ego eating environment.
Authors:
Suzanne Honeycutt


Title:
Goal Setting And Growth: Positive Alternatives To Negative Situations
Abstract:
Almost everyone sets goals. Too often however, we find ourselves entangled in the "activity trap"-so involved in the activity of working toward a goal that we forget the goal itself. Being active or looking busy does not mean being productive. Successful goal setting places the emphasis on outputs, not activities.
Authors:
Preston J. Leavitt, Ph.D., J.D., C.P.M.


Title:
Hong Kong 97', China: What you need to know about the future of Asia Business!
Abstract:
One ethnic Chinese Hong Kong citizen to serve as Chief Executive of Hong Kong after British Departure. Must be pro-democracy and pro-Communist. Respect for rule of law essential, but ability to bend with the wind required. Must administer capitalist society under rules of bankrupt socialist bureaucracy. Language fluency: English, Cantonese, and Mandarin. Miracle workers given preference.
Authors:
Linn E. Nelson


Title:
How We Make It Expensive For Suppliers To Sell To Us
Abstract:
Many companies have spent a great deal of time and effort to reduce supplier prices through long-term agreements, partnering, concurrent product development, and the like. Many of these efforts have been outward focused. Seldom have companies examined their own internal practices, policies, and beliefs to discover if they, however inadvertently, may be contributing to higher supplier prices.
Authors:
Michael Harding, C.P.M., CPIM


Title:
How to Anticipate Supplier Actions: Applying NAPM Business Survey Data to Supply Chain Management
Abstract:
Important improvements have been made in business and purchasing trends through the use of NAPM business survey data. More recognition of the relevance of supply chain activities to corporate and overall business trends is needed. Illustrations of how purchasing managers can apply these and other data to their particular supply chains are presented.
Authors:
Ralph G. Kauffman, Ph.D., C.P.M.
John H. Hoagland, Ph.D., C.P.M.


Title:
How to Initiate an Effective Benchmarking Program for Purchasing
Abstract:
Each year at budget time, the standard question asked of the Materials Management group is why do you have so many people. Our answer had been we do not have enough people, with more people we could lower total cost and manage materials better. The inevitable standoff occurs with each side feeling the other does not understand the need for Materials Management services.
Authors:
Lewis (Bill) Poole, CPIM


Title:
IT Contracted Professionals: Optimizing and Managing the Supply Chain
Abstract:
Like many corporations, BellSouth is facing increasing needs for high tech professional expertise - often this need is filled by "contract" or "temporary" personnel. BellSouth reduced the supplier base from over 90 firms to 9, instituted internal engagement process changes and the relationship management of a team of "preferred" suppliers. Results? Assured supply of needed talent, competitive pricing, and increased quality.
Authors:
Pamela M. Beard, C.P.M.
S. J. Coleman, C.P.M.


Title:
Internal Customers Balance Purchasing Departments
Abstract:
A recent survey was conducted that explored what internal customers thought of the performance of their Purchasing Departments. The survey was based on the premise that service oriented organizations, like Purchasing Departments required a different measurement process than entities such as manufacturing concerns, which produced tangible goods. The analysis contained in this paper actively sought out significant input from internal customers, especially related to service levels these customers would ideally prefer to receive, as well as, the service levels they actually did receive from their Purchasing Departments. The conclusions developed as a result of this feedback will allow Purchasing Departments to be better prepared in meeting the numerous service-related challenges of internal customers.
Authors:
Peter E. O'Reilly, C.P.M.


Title:
Interorganizational Antecedents And Determinants Of Environmental Purchasing: An International Comparison
Abstract:
Environmental purchasing consists of purchasing's involvement in activities that include recycling and reuse of materials. Despite the potentially important role that the purchasing function can play in a firm's environmental activities, virtually no research has been performed to date which examines the factors that impact environmental purchasing. A large-scale survey is conducted which examines the external (interorganizational) factors that drive and constrain environmental purchasing, and compares the environmental purchasing activities of American and German managers.
Authors:
Craig R. Carter, Ph.D.


Title:
Introduction To The Internet And The World Wide Web
Abstract:
By now, most purchasing and supply chain management professionals have heard about the wonders of the Internet and the World Wide Web. What ARE these things? Do YOU need them? What's in it for me? This document will help you understand what the Internet is, where it came from, and how to connect to it. It will then address the difference between the Internet (net) and the World Wide Web (WWW, or web), followed by a detailed explanation of the web and how to best use it. Finally, it will explain how the Internet and the web can help purchasing professionals in their daily jobs.
Authors:
Terri Tracey


Title:
JIT II®: Creating the Ultimate Customer/Supplier Partnership
Abstract:
JIT II is a concept pioneered by the Bose Corporation which has been implemented widely in US purchasing operations. In Sales, Purchasing & Material Planning applications, the customer planner, buyer & supplier salesman are replaced by an 'Inplant' supplier employee who is empowered to place customer purchase orders on his company. Supplier access and linkage to customer computers is also utilized He also performs concurrent engineering with customer engineering department from within the customer company. 'Vendor managed inventory' and 'automatic material replenishment' are features of JIT II.
Authors:
Lance Dixon


Title:
Just in Time Training: Developing Tomorrow's Purchasing Professional
Abstract:
Few can doubt that business thinking, business processes and business needs will continue to change as we move towards and into the new millennium. The consequences for purchasing are significant. As businesses demand sourcing strategies that truly reflect business needs, fundamentally different ways of working with suppliers, and reliable processes for collaboration with internal customs, traditional purchasing skills will no longer suffice. Such change needs to be supported by training and development, not just for full time purchasing staff but for the considerable number of staff in R&D, marketing, engineering, planning, operations human resources and so on, who will influence sourcing and relationships with suppliers. There will need to be a move from generic courses and workshop based training to small group and individual coaching, related to the specific role and tasks individuals have to achieve to fully contribute to the businesses' needs.
Authors:
Ian Billson, MCIPS
Tom Raspet


Title:
Legal Industrial Espionage: Getting the Most Out of Supplier Site Visits
Abstract:
As long-term contracts become more prevalent, the supplier site visit assumes more importance as part of the supplier qualification and subsequent supplier management process. This paper shows how to get the most out of the time spent at the supplier's site. It also provides tips on how to obtain information valuable in negotiations.
Authors:
David R. Wilcox, A.P.P., C.P.M.


Title:
Leverage Your Suppliers' Contribution to Cost Reduction
Abstract:
Canadian National is capitalizing on the good ideas of its suppliers in two ways. CN established a Supplier Council as a technique to help identify potential cost reduction opportunities and the means to make it happen. Together CN and its suppliers tackle areas of concern such as quality and logistics to bring about mutually beneficial improvements. As well, CN conducts supply chain management workshops for its suppliers in an effort to generate further ideas, and reduce total costs along the chain. This presentation will outline these two primary initiatives and the results generated to date.
Authors:
Robert A. Gallant


Title:
Living In Ambiguity: Become A Crab!
Abstract:
In both our personal and our professional lives, we are surrounded by change. This change and its increasing rate is perhaps more threatening in our organizational lives. People seek stability and order; change can mean disruption, uncertainty, and the perception of threats of the unknown. Specific functions within a company, organizational "silos" as they are sometimes referred to, are disappearing. The comfort and structure that they have brought to many is continually eroding. To survive in this new environment will require a different perspective, and set of skills to allow us to manage this change and be successful in the learning organization of the future.
Authors:
Rene A. Yates, C.P.M.


Title:
Managing Myself - Developing Values, Traits, and Life skills For Success
Abstract:
This paper is designed to give some hands-on ideas, techniques and process information to help individuals make the most of themselves, their career, and their working relationships. It is divided into five parts: 1. Understanding who you are. 2. Understanding why you are the way your are and the power of choice and change. 3. How to get the most from yourself. 4. How to make the most of your career. 5. Getting the most from other people.
Authors:
Daniel P. Woodring


Title:
Managing Supplier Response/Leadtime
Abstract:
Are you tired of underwriting the inventory costs and lost business inherent in bloated supplier lead-times?
Authors:
Ken Dominiak, C.P.M.


Title:
Market Your Magic
Abstract:
In today's business climate of downsizing, re-engineering and belt-tightening, the ability to market yourself effectively can have lasting effects on your career. Whether you are self-employed or work for a company, with low visibility you will have virtually no visibility. But you can learn to develop and use important skills that will work no matter what industry you are in. Using the word M*A*G*I*C as an acronym, follow the steps that will lead you toward the mastery of your own effective personal marketing plan. After you have finished, use the form at the end to develop your own personal MAGIC.
Authors:
Marjorie Brody


Title:
Megatrends for Purchasing Profession
Abstract:
We now face a transition between the new and the old, between the past and the future, between the less efficient and the more efficient, between products and services that just get by and those that are world competitive, and for some firms, between existence and non-existence. This is the essence of industrial change. Indeed, some say that the industrial revolution is over, and that the information technology revolution is just beginning. If this is true, then what is the role of an organizational product of the industrial revolution such as purchasing?
Authors:
Brian G. Long, Ph.D., C.P.M.


Title:
NQS 9000: An Alternative Metal Casting Vendor Certification Program
Abstract:
NQS 9000 is an industry specific ISO 9000 compliant quality program developed by and for the foundry industry. Created and administered by the Non-Ferrous Founders' Society (NFFS), it is a broad based series of common sense guidelines that provide an organized and efficient method of doing business. Compliant with all 19 clauses of the ISO 9002 (1) quality standard, NQS 9000 enables foundries to produce higher quality castings at reduced costs, benefiting both the purchaser and the supplier.
Authors:
Mr. James L. Mallory, C.A.E
Jerrod Weaver


Title:
Negotiating With Engineers (and Other Internal Customers)
Abstract:
Many authors have noted that much of the overall cost of any product is fixed long before suppliers are contacted. Purchasers frequently find that the primary negotiation takes place internally rather than with suppliers. Are intrafirm negotiations different from those undertaken with outside individuals? This paper explores several key situational and cultural issues which indicate the need for different strategies for intrafirm and interfirm negotiations.
Authors:
Dr. Lee Buddress, C.P.M.
Dr. Alan Raedels, C.P.M.


Title:
Open Issues in Federal Acquisition Reform
Abstract:
With the adoption of several major reform initiatives, the defense community has been able to make positive changes in its buying practices. However, several open issues remain that complicate the DoD's ability to fully take advantage of the advanced technologies and capabilities of the commercial sector. This presentation will address those issues and make recommendations for additional acquisition reform.
Authors:
Michael E. Heberling, Ph.D.
Tracy J. Houpt


Title:
Outsourcing Services - Key Steps To Success
Abstract:
Competition and the drive towards more responsive and leaner organizations have resulted in many companies adopting a strategy of outsourcing non-core, non-strategic activities to service providers who bring specialized skills and resources to the demands of these important support functions. Outsourcing allows the enterprise to focus its energies on its core business. This move to outsourcing, however, brings about its own special challenges, as many sourcing organizations have limited experience in the particular skills and processes needed in these initiatives. This paper addresses how Supply Management within Canadian National has approached this challenge, and outlines the methodology it has evolved and implemented over the past two years.
Authors:
Gordon I. Thompson


Title:
Outsourcing: Avoiding the Hazards and Pitfalls
Abstract:
The views expressed herein are the personal opinions of the authors and are not necessarily those of any other persons or entities.
Authors:
X. Paul Humbert, Esq.
Ralph A. Passarelli, C.P.M.


Title:
Outsourcing: Issues and Opportunities for Supply Management
Abstract:
"Outsourcing has become one of the most widely talked about and implemented tools for organizational change in the 1990s" (Fortune, Oct 28, 1996). Many factors have contributed to this phenomenon - globalization, the desire to reduce the workforce/decrease the fixed asset base, down-sizing, and the growing availability of outsource service providers. What is really happening, and how does this affect supply management? Bases on a recent Center for Advanced Purchasing Studies focus study: "Outsourcing: Implications for supply management," this paper will explore:
Authors:
Lisa M. Ellram, Ph.D., C.P.M., CPA
Arnold Maltz, Ph.D.


Title:
Paperless Purchasing -- A Reality
Abstract:
Paperless purchasing is, for many companies, a distant goal. At Norton Company's Bonded Abrasives Division, paperless purchasing is a reality. Norton's fully-integrated system automatically faxes purchase orders to suppliers and, in the process, ties together purchasing, material control, receiving, and accounts payable in a tight, well-controlled manner. Competing in the global market requires the best efforts, systems, and processes that companies can muster. Events and processes used to create a culture with paperless purchase orders and systems at Norton Company are outlined from a practioners point of view.
Authors:
Roland F. Rugoletti, C.P.M.


Title:
Partnering With Suppliers To Manage Change and Reduce Cost
Abstract:
Facing 15 to 20% yearly market price erosion, simultaneous heightened consumer demand for more product features, and fierce competition, purchasing professionals in Europe's largest manufacturer of consumer electronics are succeeding in reducing costs by involving their suppliers in collaborative change-planning forums called "Town Meetings." Grounded in proven change management principles and moderated by neutral, third-party facilitators, these intense, multiple-day work sessions succeed because they provide an "even playing field" on which customers and suppliers can develop and plan the implementation of cost-down change initiatives together.
Authors:
Ray Gagnon


Title:
Performance Measures for Purchasers and Suppliers
Abstract:
This paper will essentially answer four(4) basic questions concerning Performance Measures for Purchasers and Suppliers, citing examples and initiatives in place in many companies today. Those questions are:
Authors:
Gerald G. Colella, C.P.M., CPIM, CIRM


Title:
Primitive or Advanced Purchasing: How Does Your Company Stack Up?
Abstract:
This presentation seeks to consider the implications of the evolution of Purchasing through a series of three stages; from that of having a predominantly transactional focus, to that of ultimately delivering key strategic benefit to the organization.
Authors:
William L. Michels, C.P.M.
Rob Johnson, M.C.I.P.S.


Title:
Public Purchasing Reform: Have FASA, FARA and ITMRA Made the System Better?
Abstract:
Change has invaded the Federal acquisition (purchasing) world. It is reflected in new statutes and revised regulations, and more importantly, in the attitude of executives in the system. An increased emphasis on effective performance of services and efficient conduct of buying operations is clearly evident. Much of the change resulted from taking a new look at private sector practices related to those of the Government and by adopting approaches that emulate best practices wherever they are found. This article continues the author's series of studies that examine this field of activity.
Authors:
Stanley N. Sherman, DBA


Title:
Purchasing Improvement - Following in the Footsteps of the Quality Gurus
Abstract:
In the field of quality management, a number of distinctive "philosophies" have emerged. These have been closely associated with a relatively small number of celebrated "gurus".
Authors:
Peter Evans, PhD., FCIPS
Gerrit Kasteel


Title:
Purchasing Of Services In The Public Sector
Abstract:
Purchasing of services is perhaps the most demanding yet least understood aspect of Public Sector Purchasing. From the services of specialized physicians to janitors... from arts and crafts instructors to computer programmers... from "house arrest" monitoring of non-violent offenders to independent legal council... from the shoeing of horses to the rehabilitation of buildings... and everything in-between... Public entities are "contracting out" or purchasing more and more services from suppliers that are not part of the governmental structure. Although demanding and seemingly complex, this aspect of purchasing is, in reality, comprised of just a few critical elements. Once understood and applied these critical elements will ensure that the Public Entity actually receives the services that it requires, at the quality level desired, over the duration actually needed and for a price it can afford.
Authors:
John L. Balentine, C.P.M.


Title:
Purchasing in the 21st Century
Abstract:
By transforming itself into a profession, purchasing has become a key contributor to organizational competitiveness and performance. Moving from transactions to relationships, it has been reinventing itself to fit its new role as strategic sourcing leader. By continuously enhancing its skills mix and the performance of its resource base, it has become a driving force for change that is altering the way organizations do business. In the 21st century, purchasing will be a world class player on an organization's strategic leadership team, employing state-of-the-art tools in shaping its destiny.
Authors:
Eberhard E. Scheuing, Ph.D., C.P.M.


Title:
Re-Energizing Your Stalled Purchasing Card Program
Abstract:
Purchasing card programs have proliferated during recent years, some with greater success than others. Those that have failed to meet performance objectives have generally neglected the basics of implementing purchasing cards. Those that have met objectives are now looking for ways to exceed them. This discussion looks at solutions to both needs.
Authors:
Stephanie A. King


Title:
Revolutionary Ways to Transfer Purchasing Responsibilities to Users and External Organizations
Abstract:
In this paper, descriptions of how purchasing organizations have strategically decided to transfer some of their traditional responsibilities to other internal and external organizations will be covered. The use of purchasing cards, blanket purchase orders, buyer/planner utilization, outsourcing companies, users as supply managers, and systems contracting will be explored and exemplified.
Authors:
George L. Harris


Title:
SAP Implementation Strategies for Purchasing
Abstract:
Many companies are implementing SAP'S R/3 Product today and the ramifications of these implementations on purchasing organizations will continue for years to come. This paper highlights what types of reengineering is required for R/3, what the critical success factors are, which configuration options are most important and key integration points for purchasing.
Authors:
Benjamin T. Wilson, CPM
Scott Vanlandingham, CPIM


Title:
Selecting High Technology Consultants and Subcontractors
Abstract:
High technology organizations require the services of consultant and subcontractor specialists in the development/design of a product or delivery of a service. Many organizations often include these specialists in their proposals to leverage securing a contract from a potential client. Purchasing professionals should improve on the methods for identifying, qualifying, and selecting technically competent specialists if their organizations expect to consistently win contract awards in an intensely competitive business environment.
Authors:
Henry F. Garcia, C.P.M.


Title:
Sourcing in South-East-Asia - Win-Win In The ASEAN Market
Abstract:
From dependency on primary commodities, ASEAN or the Association of South East Asian Nations, have increasingly turned to manufactured goods and value added services to achieve an enviable economic position in the World. Their rating as the fastest growing region in the world bears testimony to the resolve to continue this positive trend. How could US Purchasing Managers tap this reservoir of talents and opportunities is the subject of this presentation.
Authors:
T. Rajagopal MBA C.P.M.


Title:
Strategic Outsourcing For Services
Abstract:
Organizations have traditionally assigned the service contracting responsibility to functional organizations other than purchasing. This "traditional approach" has not always been effective without the business, negotiation, and analytical skills resident in the organization's purchasing and contracting staff.
Authors:
Dr. LeRoy H. Graw, C.P.M., CPCM


Title:
Supplier Financial Management for Purchasing Professionals
Abstract:
In today's dynamic business environment, purchasers experience supplier financial failures at an alarming rate. It is imperative that we are aware of potential financial distress before failure occurs. Additionally, we need to know what actions to take to minimize our companies risk in the event we are faced with the financial failure of a key supplier.
Authors:
Jeffery A. White, C.P.M.


Title:
Supplier Integration Into New Product/Process/Service Development
Abstract:
In many industries, shorter product life cycles and increased competition have raised the level of interest in the management of new product, process, and service development (NPD) processes. Firms are looking for ways to decrease concept to customer development time and, at the same time, improve quality and significantly reduce the cost of the resulting product. One approach many companies are taking is to involve suppliers earlier in the design process. This involvement may range from simple consultation with suppliers on design ideas to making suppliers fully responsible for the design of components or systems they will supply.
Authors:
Robert M. Monczka, Ph.D.
David J. Frayer, Ph.D.
Gary L. Ragatz, Ph.D.
Robert B. Handfield, Ph.D.
Robert J. Trent, Ph.D.


Title:
Supplier Value Index (SVI) Rates MRO Suppliers-Part II
Abstract:
Developing an effective method of communicating the expectations and evolving needs of our plant to our "core" MRO suppliers was central to the development of our Supplier Value Index (SVI) rating system. Prior to our implementation of the SVI in 1994, our experience with our core group of MRO suppliers was one of inconsistent performance.
Authors:
Gregory E. Benson, C.P.M.


Title:
Targeting Purchasing for Product Profitability
Abstract:
In response to serious cost down pressure now being experienced in many business sectors, ADR introduced delegates to POPP: Purchasing Opportunity Performance Program, the model of price / cost development and its implication on the purchasing function and the way in which the business manages purchasing activity at last year's NAPM conference. ADR's conclusion was that the future for purchasing will be an evolution from its traditional functional focus to a business process and that the emphasis must be on cost, not price.
Authors:
John Matthews
Robin Jackson


Title:
Telecommunications Procurement
Abstract:
Telecommunications is becoming a strategic resource in every organization. The pace of technological change has been accelerating with new products and services offered on a seemingly daily basis. This includes services ranging from basic telephone service, to high speed digital data services, to wireless services, to telecommuting, and the Internet. The Telecommunications Act of 1996 has accelerated activities in the marketplace including mergers, alliances, acquisitions, and spin offs. These market activities will have a major impact on the availability of emerging technologies and their pricing. With these market changes come opportunities for Purchasing to add value and to reduce costs.
Authors:
Charles A. Tyrrell, C.P.M., A.P.P.


Title:
Terms and Conditions for International Procurement
Abstract:
Today's global business economy has launched many procurement professionals into international procurement. For many, this is a new "adventure". However, even for the seasoned veteran, one of the most significant challenges in this environment is preparation of terms and conditions for such transactions. This paper and presentation will provide a summary of those laws which affect the international transaction, and outline how to determine what terms and conditions are appropriate for such a transaction. We will also provide and discuss a checklist for establishing a comprehensive international contract.
Authors:
Ernest Gabbard, J.D., C.P.M., C.P.C.M.


Title:
The Art and Science of Outsourcing
Abstract:
Developing supplier relationships into strategic partnerships can be a purchasing manager's critical edge in creating successful outsourcing contracts. When a purchasing professional develops practical contracts to implement a company's reengineering plans, it's by following the steps discussed in this session.
Authors:
Murem Sharpe


Title:
The Buyer's Perspective Of Cooperative Buyer Supplier Relationships In Industrial Markets: A Model Comparison Approach
Abstract:
Recent evidence shows that competitive strategies of confrontation are being replaced by more cooperative dealings between buyers and suppliers. These cooperative relationships are intended by buyers to improve the efficiency and effectiveness of their operations. While these results are often achieved, such relationships require a commitment of financial and human resources, and so consequences can be serious when the relationships fail.
Authors:
Dr. Gregory B. Turner


Title:
The Games Suppliers Play
Abstract:
Supply chain management (SCM) is perceived as a "hot", new area. Research projects are mushrooming. Increasing numbers of job advertisements for supply chain managers at increasing salaries pervade the recruitment pages of the newspapers. And yet, we can perceive almost an 'identity crisis' within the discipline. This paper is an attempt to explore whether supply chain management is any more than 'an academic fantasy' or 'a license for consultants to print money' as a number of respondents within our recent research have noted. Logically, driving 'waste' out of the supply 'chain' seems a worthwhile thing to do. This paper will consider the way in which different interpretations of supply management lead to different strategies. It suggests that these strategies are limited. It also looks briefly at the 'games' which suppliers play in response to these limited supply management strategies. Finally, the paper offers a new interpretative framework for supply management.
Authors:
Peter Stannack
Professor E.E Scheuing


Title:
The New Millennium Purchaser/Supply Manager - Taking the Entrepreneurial Approach
Abstract:
The effective Purchasing/Supply Manager going into the 2000's is much like an entrepreneur, who must be knowledgeable about all aspects of his or her business, and play an active role. This presentation uses a formal business plan and its major sections and provides a comparison of the similarities of the two -- purchaser and entrepreneur.
Authors:
Patricia M. Patterson, C.P.M.


Title:
The User-Friendly Bid
Abstract:
Let's transform our dry and dreary bids into attractive works of [the purchasing] art. But, alas, what about our dearly beloved "legalese"? Without sacrificing the "legal" we can enhance the "ease"--the ease of reading, understanding, responding and evaluating--with an innovative user-oriented approach.
Authors:
Troy Harris


Title:
The World Wide Web As A Strategic Sourcing Tool
Abstract:
Strategic sourcing means much more than merely having a plan for carrying out sourcing activity. Strategic sourcing involves locating potential suppliers and then evaluating, developing and managing their capabilities in a manner consistent with the enterprise's plans for meeting customer expectations and needs. Through innovative use of the tools that the Internet and its associated technologies -- in particular the World Wide Web -- have provided, purchasing can increase its contribution to a company's competitive position.
Authors:
Brian G. Caffrey


Title:
Transforming Purchasing, Transforming Government: Professional Public Purchasing For the Next Millennium
Abstract:
This workshop presents a vision of a transformed public purchasing function, where best practices of professional purchasing implemented in the context of a "Public Purchasing Bill of Rights" free public purchasers from dysfunctional regulatory constraints and empower them to obtain value for the tax dollar and safeguard the public trust.
Authors:
Constance Cushman, J.D., C.P.M.


Title:
Universal Supplier Qualification Process
Abstract:
The program I will be describing today is a newly developed universal supplier qualification process. The process allows Purchasing professionals serving in all types of economic organizations to use a single process to qualify suppliers. The model is based on four attributes - Cost of Quality, Cost of Doing Business, Cost of Product and Value of Support.
Authors:
Robert F. Smith, C.P.M.


Title:
Using Best Practices To Improve Your Purchasing And Supply Management
Abstract:
Throughout the government, industry and academic communities, there exists a vast accumulation of purchasing and supply management knowledge and experience the greatest in the world. The challenge: sharing the best of what we have learned so that everyone can benefit from it. The rewards: companies with the ability to compete on a global scale higher quality products and services more efficient and productive use of our industrial infrastructure and our financial and intellectual resources.
Authors:
Ernie Renner


Title:
Using a Structured Model of Purchasing Activities to Benchmark Performance
Abstract:
There is considerable evidence to suggest that benchmarking procurement processes can produce significant benefits. Unfortunately, experience shows that process benchmarking studies can take up to eighteen months to produce these benefits. The use of management consultants brings no guarantee of a shortened timescale. Although the use of management consultants can improve the likelihood of success, there are likely to be significant fees to be taken into consideration. What is needed is a tool which will provide an objective assessment of the activities within the purchasing process which will benefit from change, reduce the timescales involved and do so without significant levels of consultancy.
Authors:
Eric Evans, M Sc, DMS, FIL, FCIPS


Title:
Using the Internet for RFQ Management: A GE Case Study
Abstract:
In today's competitive business environment forward looking companies are continually evaluating ways to become more productive and to lower their costs. One area of significant opportunity for most businesses is the purchasing process. This process includes all the steps from identifying requirements and potential suppliers, through the final payment for the goods or services purchased. In GE's case, considerable thought has been given to the process of purchasing indirect and MRO materials and services.
Authors:
William G. Cafiero


Title:
Using the Internet to Enhance Purchasing Productivity
Abstract:
The Internet is affecting the way business markets and sells its products. The number of homepages on the Internet is increasing at a phenomenal rate. Purchasers can use the net to improve their business performance. The Internet can be used by purchasing for sourcing, research, and order placement. In addition to these uses there are obstacles which need to be addressed prior to transferring sensitive data over the Internet.
Authors:
Charles Hofacker, Ph.D.
Larry C. Giunipero, Ph.D.


Title:
Value Analysis: Is It Still A Useful Tool?
Abstract:
On June 1, 1995, Purchasing's cover story "Where Has VA Gone?" seemed to imply that Value Analysis, or VA, was no longer practiced as a cost reduction procedure in modern corporations. A survey of 1,000 companies indicated the growth of VA, as tool for maintaining a competitive edge, had slowed and even reversed. Fewer companies had value analysis programs in 1995 than in previous years. The question naturally followed, what had become of VA, the premier cost-cutting resource of the purchasing profession? Several recent articles have pointed out a shift in when VA occurs. Often the principles of value analysis are applied earlier in the life cycle of the product, upfront during the design process. While this may be referred to as concurrent design or value engineering, many VA methods are applied. This presentation follows the evolution of value analysis from a technique used to reduce the cost of a finished product in the manufacturing phase, to a technique used to reduce costs of a future product while still in the design phase.
Authors:
Lawrence J. Clark, C.P.M.


Title:
Vendor-Benders: How To Assure That Your Supplier Relationships Are Collision Proof
Abstract:
Supplier relationships are laden with vendor(fender)-benders, traffic lights and potholes. There will be times when the relationship is under construction. The alliance must, at times, bump along the breakdown lane as both partners assess their respective needs. The challenge is to keep it in the fast lane as much as possible. In order to assure that your supplier relationships are collision-proof, you must be prepared to weather the aforementioned obstacles. Each one will permeate a supplier relationship to some degree. Let's take a look at how each of these obstacles can impact a supplier relationship:
Authors:
Jim Limperis, C.P.M. CFPIM