okc april 2014 n.a.p.m. purchasing pipeline …...the purchasing pipeline page 7 supply management....

The Purchasing Pipeline National Association of Purchasing Management

®

I N S I D E T H I S

I S S U E :

Buyer Vendor Round Up 2

Membership Report /

Note from the VP

3

Upcoming ISM Seminars 4

Taking Your

Negotiations Global

5

Program Department 6-7

ISM 2014 Management

Conference

8

Map to Whiskey Cake 9

2013-2014 Board of 14

Who Do We Represent 15

Supplier Relationship

Management : Supplier

Relationships

10-11

A Special Thanks 16

Supplier Relationship

Management : Supplier

Management Relationship

12-13

N . A . P . M . – O K C , I N C .

A F F I L I A T E D W I T H

T H E I N S T I T U T E F O R

S U P P L Y

M A N A G E M E N T ™

April 2014

N.A.P.M.-OKC Tuesday, March 11, 2014

Meeting 5:45 PM - 7:45 PM

Whiskey Cake

1845 Northwest Expressway

Oklahoma City OK 73118

Topic: Key Performance Indicators

Presenter: Steve Smith

Please join us for a discussion on Key Performance Indicators!

Dinner will be catered and provided.

P A G E 2

T H E P U R C H A S I N G P I P E L I N E

The President’s Pen Happy February N.A.P.M.-OKC, I certainly hope most of you are staying warm through these very cold winter months. It sure has been a cold one. I don’t know about you, but I’m sure ready for some extended sunshine! I really thought our speaker last month, Eric Werner, was very informative. He told us all about the OKC MAPS Pro-ject. I really enjoyed it and I learned a lot too. They have accomplished many things and have many more left still. I’m already a proud Oklahoman. When the project is reaches completion, it will be fun to show out of town guests our beautiful city. This month, we will hear from Larry Holdge on Change Man-agement. Change Management is an interesting topic that I look forward to hearing about. Everyone handles change differently.

Understanding how a person processes and handles change can certainly help you work with them in a more produc-tive manner. Looking forward, March is Sup-ply Chain Management Month. Be on the lookout for our Community Service event this March. Usually we sup-port a local charity in some way in honor of Supply Chain Management Month. More news about that to follow. Thank you Access Midstream for allowing us to use your facility. Thank YOU N.A.P.M.-OKC members for being a part of our group! We are glad that you are! I hope to see you at the meet-ing Tuesday, February 11, 2014.

APRIL 2014 MEMBERSHIP REPORT: “Our affiliate exists to provide value to Oklahoma’s economy and our member-ship by: educating and developing our members; enhancing our employer’s operations; and advancing the supply management profession.” ISM National Membership, February 28, 2014 42,311 N.A.P.M.-OKC Membership, April 1, 2014 219

Changes: Please let us know if you have changed jobs, addresses, or e-mail addresses, so we can keep our local roster current. Since “The Purchasing Pipeline” and other notices are sent to you by e-mail, this is very important, because you might miss out on an up-coming event. We will inform ISM of the change. We would also like to know if you have received your CPSM, C.P.M. or A.P.P. certification, so we can congratulate you in “The Purchasing Pipeline.”

C.P.S.M., C.P.M. & A.P.P. Report N.A.P.M.-OKC Membership C.P.S.M.’s – April 1, 2014 11 (5.0%) N.A.P.M.-OKC Membership C.P.M.’s – April 1, 2014 31 (14.1%) N.A.P.M.-OKC Membership A.P.P.’s – April 1, 2014 5 (2.3%) Donna Dolezel, Membership Director, 886-3293, [email protected] Cara Noltensmeyer, Membership Vice-Chair, 552-4789, [email protected]

P A G E 3 Supply Management . Maximiz ing Opportuni t ies . Managing Risk

April 2014 Membership Report

A Note from the VP... Last month’s meeting had several new faces and was a pretty full house. I hope everyone enjoyed the speaker, Steve Smith, and the conversation over KPIs, along with enjoying a new venue, Whiskey Cake. Let’s continue the trend and encourage new faces to join us again this month!

To make it even easier to invite others, this month is our Buyer Vendor Round Up! This year it is on the Oklahoma City Community College (OCCC) campus from 6:00-8:00 p.m. This time of the year is always the busiest since I think we’ve all gotten some spring fever. Please let me know if there is any supplier you need help contacting so I can jump in to make a phone call. Consequently,

I need all of your help as well to make this another fantastic BVRU!

Thank you to those who have been helping spread the word and encourage vendors to join us and/or donate to our raffle drawing. We still need more of both, so please continue to talk to your suppliers and encourage their participation. Bring anyone around the office who would be interested in attending as a buyer as well, since they are free to enter and network!

Hope to see all of you there!

Elizabeth Jones – Vice President

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Upcoming ISM Conferences and Events Below is the list of ISM Conferences and Events:

For seminar details, please call the ISM Customer Service Department at 800/888-6276 or 480/752-6276, extension 401, or visit the ISM Web site at www.ism.ws and select Education

Did you know you can submit your updated contact information on our website?

www.napm-okc.org

2014

Title Date Location

Finance for the Supply Management Profes-sional 4518

Mar 11, 2014 - Mar 13, 2014

San Diego, CA

Fundamentals of Inventory Management (formerly Principles of Effective Inventory Management) 4336

Mar 17, 2014 - Mar 18, 2014

Dallas, TX

2014 Annual Institute for Supply Manage-ment™ — Michigan State University Awards for Excellence in Supply Management and the Annual R. Gene Richter Scholarship Awards

May 5, 2014

Las Vegas, NV

ISM2014 International Supply Management Conference

May 5-7, 2014

Las Vegas, NV

ISM Risk Management Summit

July 16, 2014

New York City, New York

ISM Metrics Symposium

July 17-18, 2014

New York City, New York

CPO in the Making Workshop

Fall 2014

Tempe, AZ

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Supply Management . Maximiz ing Opportuni t ies . Managing Risk

ISM 2014 International Supply Management Conference

P A G E 6


Program Department

Hello N.A.P.M – OKC members!

Here are some details for the May NAPM meeting

Speaker:

Dr. Marc Jensen from The University of Oklahoma Lean Institute

Topic:

Lean Six Sigma

Location:

Ted's Cafe Escondido

2836 NW 68th St, Oklahoma City, OK

Time: 5.45 – 7.30pm


P A G E 7 Supply Management . Maximiz ing Opportuni t ies . Managing Risk

N.A.P.M. Upcoming Events for 2014

April – Buyer – Vendor roundup

May 13th – Event to be announced

June 10th – Safety and its relevance in your industry

July 8th – Being Lean! Lean Six Sigma

August – Event to be announced

September – Event to be announced

October 14th – Facility Tour – Carlisle Foodservice Products

November 11th – Event to be announced

December 9th – Holiday party

Thank you for your time and we look forward to seeing you at our next event!

Your Programs team!

Jason, Aparna and Cole

Mark your calendars for the following events in 2014!

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P A G E 9

Map to OCCC



P A G E 1 0

All successful companies build strong relationships with their suppliers. Companies are not isolated entities that simply purchase goods and services from individuals who happen to be able to supply them at that particular time. Companies typically make larger purchases. In reality, successful companies recognize the need to build bridges between their organiza-tion and the vendors that they work with by establishing strong buyer/seller relationships. Supplier relationships are different from simple purchasing transactions in several ways. First, there can be a sense of commitment to the supplier. For example, if a vendor sells light bulbs, he can feel confident that the buyer will come to him the next time the compa-ny he represents requires a new shipment of light bulbs. Another element of these supplier relationships is advanced planning. Buyers don't just communicate with suppliers when a procurement need arises; they also contact them in order to discuss their future needs and to determine how best to satisfy those needs by working together. While both of those distinguishing features are easy to spot, a third element is also im-portant. The company's attitude and view of its suppliers matters a lot for business success. Companies that forge supplier relationships think of these vendors as partners and not just simple commodity providers. This difference in orientation can have a profound affect on the way an organization communicates and works with its suppliers. This in turn affect effi-ciency an profitability. One ramification is a vendor’s knowledge of the buyer's business. When vendors are viewed as commodity providers, they generally don't take the time or are not given the opportunity to learn the details of the business or its vision for the future. However, ven-dors that are deemed to be partners are encouraged to become knowledgeable about the company, its processes, its products, and its goals. The result is greater buyer satisfaction with the services provided by the supplier. A study of IT directors found that vendors who were considered commodity providers delivered unsatisfactory service almost half of the time while suppliers who were thought of as partners delivered excellent service some of the time and good service most of the time. Another result of this attitude of partnership and difference in knowledge level has to do with handovers, which is a top priority among most IT directors. After all, if the handover is unsuccessful or is poorly handled, it minimizes the benefits the business hoped to achieve with the project. Businesses that viewed their suppliers as commodity partners, according to the poll, viewed the way their vendors handled this critical process as unsatisfactory nearly half of the time. On the other hand, vendors who were considered partners handled handovers excellently nearly some of the time and good most of the time. Clearly, the change in attitude does make a significant difference. Obviously, these two examples illustrate how important it is to have strong supplier rela-tionships, but many businesses simply don't know how to foster an environment where

Supplier Relationship Management : Supplier Relationships


P A G E 1 1



Supplier Relationship Management : Supplier Relationships Cont.

purchasing personnel have an attitude of partnership with vendors. The change is not as difficult as they may think. It does not have to cost them the savings they achieve by shop-ping around either. First, businesses need to find a small number of suppliers to work with. Companies should carefully evaluate potential vendors and their backgrounds in order to select the suppliers from the group that will best fit the needs of the business. After they pick these vendors, companies need to negotiate contracts with the vendors and to sit down with them in order to engage in some forward planning. Both of these steps are critical in establishing the stability in the supplier relationship that is necessary for both parties to feel comfortable. Furthermore, the future planning makes it more likely that the vendor will have the resources and qualified staff available when the buying compa-ny requires them. Overall, vendors and buyers are both better served when they come together to form strong, mutually beneficial, and secure business relationships for non-commodity type goods and services. When these relationships exist, they can drive the growth and profita-bility of both organization and prevent purchasing and execution problems.

http://www.epiqtech.com/supplier_relationship_management.htm

P A G E 1 2

For all the talk about supply chains and e-procurement, many companies still have not seen the real benefits of either of these business approaches. The reason is not the technology. The reason is that dealing with suppliers and managing that relationship can be tricky even under the best of circumstances but when they add in more technology and major changes, things can might become even more tricky. However that doesn't mean companies should switch to more modern methods of handling procurement and working with vendors, it just means they need to become more knowledgeable about how to effectively manage their supplier relationships. One of the first steps of creating a supplier relationship is, of course, choosing the supplier. When companies switch to an e-procurement method they usually need to streamline their supplier choices and these choices need to be based on more than just a quoted price. For example, it may cost Vendor A $20 to ship goods and it may cost Vendor B $40, but if Vendor A doesn't ship to all of the cities a business works with, doesn't have the technology based installed to make communication seamless, and doesn't offer any value-added services to the deal, then that low price may look a lot less appealing.

Up until recently, many buyers weren't looking at things in those terms and were simply focused on the quoted price. Many of those buyers also found out the hard way that low price sometimes equals low quality. Offshoring, for instance, has occasionally resulted in defective products rates just below 10%; which is much too high. When these disillusioned buyers switched to slightly more expensive suppliers, there was a lot of resentment toward suppliers in general already. Supplier resentment does not create a firm foundation for a new supplier relationship. Buyers need to remember that how they treat suppliers today is how suppliers will treat them in the future, and for many buyers this might be a frightening thought.

Supplier Relationship Management : Supplier Management Relationship


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Supplier Relationship Management : Supplier Management Relationship Cont

Another way to boost supplier relationships is through technology. Setting up a strong com-munication network that allows for the real-time transfer of information in both directions helps create a feeling of partnership that is normally missing from these relationships. Ex-plaining to suppliers how they will be helped and how important they are to the big picture can also help make them feel more comfortable in the relationship. Opening up communi-cation to allow suppliers to view forecasts, inventory, and performance ratings further builds on the foundation and makes the relationship more secure. Furthermore, companies can do more to ensure that their suppliers are receiving their business. When businesses establish e-procurement arrangements, suppliers assume that they will receive the orders for all of the products needed by that company from their cat-alog. An office supply store, for example, anticipates that the company will order their pens, envelopes, and office furniture through them. However, many companies have found that employees who are resistant to the new technology continue to go out and make pur-chases outside of the system. This problem can hurt the vendor/buyer relationship because it is taking away profits from the supplier. Businesses, therefore, need to take steps to en-sure that those types of “maverick” purchases do not occur. Finally, both sides of the relationship need to realize that things won't also be perfect. Some products won't live up to buyer expectations; some invoices won't be paid correctly. However, those types of problems can be minimized simply by ensuring that a four-way inspection process is in effect on the buyer's side so that the goods are checked according to the order form and that the invoices are paid promptly. Additionally, buyers and sellers should decide in advance on how to settle problems with defective goods or overall buyer dissatisfaction. Knowing how to handle difficulties helps rectify the problems easier and makes the relationship move more smoothly in the long run.

http://www.epiqtech.com/supplier-Management-Relationship.htm


2013—2014 Board of Directors Position Name

President Stefanie K. Jones

Vice-President Elizabeth Jones Past President/ Forum Representative Peggy Thurmond

Secretary Tammy Tittle

Treasurer TJ Jordan

Vice-Treasurer Tim Bishop CPIM, CPSM

Pro-D Director Dan Gatewood, CPSM, CPSD, SCMP

Pro-D Vice Chair Jeffery Richardson, CPSM, CPSD

Membership Director Donna Dolezel

Membership Vice Chair Cara Noltensmeyer

Program Director Jason Walker

Program Co-Vice Chairs Aparna Popley Cole Werner

PR Director Randy Graves

PR Vice Chair Andrea Large

Technology Director Angela Smith, C.P.M.

Technology Vice Chair Jamie Gilmore

Special Activity Director Grant Skinner

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P A G E 1 3

Who Do We Represent?

Access Midstream Astellas Pharma Tech Autocraft Industries Automation-X Autoquip Corporation Beam's Industries Best Buy Big D Industries Inc. Bimbo Bakeries USA Blue Night Energy Group Borets Weatherford Bradford Industrial Supply Co. Cameron Compression Sys-tems Carlisle Foodservice Products Cass Polymers Inc. Chapparral Energy Inc. Chappell Supply Chesapeake Energy Chickasaw Nation Chickasaw Nation Div of Com-merce City of Oklahoma City Circo Energy Group Cleveland County CompSource, Oklahoma Conoco Phillips Continental Resources, Inc. Cooper Compression COTPA Coughlin Equipment Covercraft Industries Inc. DCP Midstream Devon Energy

Dolese Bros. Co. Enogex Enviro Systems Inc. Exco Resources Fife Corporation Franklin Electric Water Transfer System GE Oil & Gas George Fischer Central Plas Tics Halliburton Hobby Lobby High Mount Exploration and Pro-duction Industrial Gasket Integris Baptist Health Center J & E Supply & Fastener Co. Johnson Controls, Inc. KimRay Inc. Knights of Columbus KP Supply Linn Energy Little Giant Pump Co. Lopez Foods Inc. Marathon Oil Company MD Building Products Modular Svcs Co MTM Recognition Corporation Noble Energy OG&E Oklahoma City Community Col-lege Oklahoma Insurance Department Oklahoma Publishing Co.

Opeco Inc. Pelco Products Picerne Military Housing Pioneer Telephone Cooperative Inc. PM&L Manager Haliiburton Progressive Stamping, LLC Remy Inc. SandRidge Energy SemaSys Inc. Security Solutions Serco Inc Smart Lines LLC Smith & Nephew Inc. SORB Technology Inc. Southwest Electric Co. Surface Mount Depot T D K Ferrites Corp. Tronox Universal Well Site Solutions University of Central Oklahoma University of Oklahoma US Silica Co. USA Compression Vaughn Foods, Inc. Walker & Sons Enterprises Inc. Warren Cat WellMark Co West Oak Industries Windsor Energy York International


A Special Thanks To National Association of Purchasing Management

®

April 2014

We would like to give a special thank you to Steve Smith who is the Supply Chain Manager at

Access Midstream for his March presentation on Key Performance Indicators.

On behalf of N.A.PM.

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okc april 2014 n.a.p.m. purchasing pipeline …...the purchasing pipeline page 7 supply management....

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