BuyLiner A monthly publication of the Institute of Supply Management - Nevada, Inc. November 2014
Upcoming Events
November 2014
12 – Monthly Meeting Chad Forster, “Rolling the Dice on Supply Change Risk Management”- Las Vegas
14 – Tour –"Veterans Guest House" – Reno
18 – Board Meeting – Las Vegas
18 – Seminar, Jeanette Jones, MLS, “Supply Market Intelligence for Supply Professionals”- Las Vegas
December 2014
3 – Tour and lunch – “Opportunity Village” Las Vegas
12– “Holiday Party”, Bahama Breeze – Las Vegas
14– “Magical Forest Volunteer Night” – Las Vegas
January 2015
14 – Monthly Meeting – Jon Ralston, “Nevada’s Political Impact on Business”– Las Vegas
TBD – Board Meeting – Las Vegas
Check www.ismnv.org for details
Mission ISM Nevada offers the best value by providing a diversity of world class educational, networking, and career development opportunities to advance the supply management professional.
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President's Corner Dianne Collins, CPSD, C.P.M., CPPO, CPPB
It’s my favorite time of year once again – harvests, festivals, migrations, winter preparations, and of course, spectacular foliage especially at Mt. Charleston. Those who attended the Membership Appreciate event at Angel Park on October 17, 2014, felt the crisp evening air of the season. A replica of the larger Cloud 9 course, the Putt-Putt course presented challenges with water hazards, bunkers and sand traps as we meandered through arroyos and water landscaped canyons. However, the course was none too difficult for Chris Denning who managed to achieve a hole-in-one! Through the support of Brady Industries and their generous sponsors, The Safety Zone, The Clorox Company and Deb, our members enjoyed a sense of community, camaraderie and belonging that comes with participation in these exclusive member events. Visit our website at www.ismnv.org for all the pictures.
November 15, 2014 is America Recycles Day, the only nationally-recognized day dedicated to promoting and encouraging Americans to recycle and buy recycled products. As Procurement Professional, let’s lead the charge at work and at home by recycling paper, newspapers, plastic/glass containers, cans, small metals, electronic equipment and batteries – almost everything is recyclable. When buying products, check the label specifications to determine an item’s recyclability and whether it is made of recycled materials. Recycling helps preserve resources, protects the environment and benefits the economy. Learn how to reduce your consumption of energy and water and reuse those plastic containers and glass jars to store those Thanksgiving leftovers!
Did you know that The Mob Museum will commemorate the anniversary of the Kefauver Committee hearings, which took place in its building in 1950, with a day featuring special programming as well as free admission during regular operating hours for Nevada residents. The events are being held to raise awareness of the significance of the U.S. Senate Special Committee to Investigate Organized Crime in Interstate Commerce—as the Kefauver Committee hearings were officially called—on the nation’s fight against organized crime and development of Las Vegas as the nation’s gaming capital.
And most importantly at this time of Thanksgiving, I would like to express my sincere appreciation for your confidence and loyalty in ISM-NV. The Board and I are deeply thankful and extend to you and your families our best wishes for a bountiful Thanksgiving.
Warm regards, Dianne Collins, CPSD, C.P.M., CPPO, CPPB President, ISM-NV
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November 12, 2014 Rolling the Dice on Supply Chain Risk Management Presented by: Chad Forster, Vice President Global Procurement Las Vegas Sands Corporation Las Vegas Sands is a Fortune 500 company and the leading global developer of destination properties that feature premium accommodations, world‐class gaming and entertainment, convention and exhibition facilities, celebrity chef restaurants, and many other amenities. Forster’s work history demonstrates a wide range of abilities. He will discuss the countless challenges that impact Las Vegas Sands’ supply chain and the risks his team experiences in the gaming industry. Sourcing world‐class products and services that have appropriate quality levels, competitive pricing, and are delivered on time continually pave the way for significant reforms in processes at the Sands Corporation. Innovator and Vice President of Global Purchasing for the Las Vegas Sands Corporation since 2008, Chad Forster leads the U.S. and Global Procurement teams, located in Singapore, Macau, and Zhuhai, PRC. Focusing on stakeholders and the environment at Las Vegas Sands, he has been responsible for all areas of procurement, including supply chain and supplier quality.
Prior to working for the Las Vegas Sands, Forster worked for Ford Motor Company for 11 years. At Ford, Forster had various procurement positions of increasing responsibilities. His last position was the Asia and Africa Director of Electrical Purchasing, located in Nanjing, China. In this position, he was responsible for driving electronic supply base commonality and strategic sourcing for Ford’s production facilities located in China, Thailand, Japan, Australia, Philippines, and South Africa. When in Asia, Forster was also responsible for leading Ford’s China export sourcing efforts.
Forster holds his M.B.A. in Finance and B.S. in Economics from Ohio State University.
Meeting Location: Main Street Hotel & Casino, Social Club
Meeting Sponsor:
Who Should Attend? Supply professionals, new and experienced contracting specialists, purchasing and supply management analysts, and persons who desire to in increase their skills and knowledge within supply management.
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Supply Market Intelligence SEMINAR for EVENT Procurement Professionals November 18, 2014 1:00- 5:00 p.m. Clark County Government Center
Presented by: Jeanette Jones, Cottrill Research Co‐Author: Supply Market Intelligence for Procurement Professionals: Research, Process, and Resources
Jeanette Jones, MLS, has over 20 years’ experience providing corporate business and strategic sourcing research services and is the founder of Cottrill Research, a provider of supply market intelligence research services. She has established libraries with research functions for Arthur Andersen and the IT Vendor Management Group at Bank One (JP Morgan Chase) and provided research services for the Strategic Sourcing Group at Wachovia. She has served as an adjunct professor at Ohio Dominican University and taught research and information skills at Collin College and College of Southern Nevada. Jeanette has also authored detailed research guides covering the subject areas of business, supply chain management, and hotel/casino management.
Join expert presenter, Jeanette Jones as she provides insight into the current trends of supply market intelligence and how it can be used to grow opportunities for strategic sourcing methods, spend analysis, supplier management and technologies. Tools and techniques learned will provide the opportunity for augmenting and improving a wide array of procurement initiatives. Explore how to apply Quality Assurance through the evaluation of information, research and monitoring of suppliers. Discover the real‐ world tactics and tips based on the authors’ decades of experience on how to collect, compile and categorize the right information for goods, equipment, materials and services for your industry while reducing operating costs and improving quality. Move your organization from its typical tactical focus to a strategic focus with the learned methods presented. Achieve world‐class performance for your organization through the implementation of these auspicious processes and timely methods.
Meeting Location: Clark County Government Center, Gold Room, Fourth Floor Member Cost: $99 Non-member Cost: $199
Register at www.ismnv.org 4 Continuing Education Hours Earned
In order to ensure maximum participation interaction and learning, enrollment is limited.
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Northern Nevada….. Nov 14th Veterans Guest
House Tour – Reno
Keith Angel Angel Cotton Associates, Inc.
Clay Burman
Brady Industries, Inc.
Join ISM-Nevada as we tour the Donna Cruzado, C.P.M. Veterans Guest House this UNLV Thanksgiving season and receive an overview of the operations, logistical challenges, and volunteer Griff Dorado opportunities that our members can Sierra Nevada Corporation take part in. Like ISM-Nevada, the Veterans Guest house is a Non-Profit corporation however its mission is Terry Hudson different. The Veterans Guest House is Revolution Bag dedicated to helping Veterans and their families by providing them a place to stay overnight. Help ISM- Joseph Lecak Nevada partner with this worthy organization by attending this free event and receive 1 CEU of Education. Sarah Naranjo Allegiant Air Tickets $0.00 Member Meka Robertson Pinnacle Entertainment $0.00 Guest
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MEMBER APPRECIATION EVENT \ANGEL PARK \ OCTOBER 17, 2014
The Golfing Gang
Chris Denning
Last minute winning strategy meeting Jim, swing at the ball not Carol’s head!
Raffle winners: Nick Vega, Chris Denning, Carol Ellenbecker, Dianne Collins Sponsors: Keith Angel & Nick Vega
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Increasing Competitive ISM Nevada’s October Advantage Breakfast Meeting June Weedon, CPSD, C.P.M. Submitted by Kat Uchman Secretary, ISM-Nevada
To increase competitive advantage, supply chain professionals work to build their supply chain. In order to better the supply chain management function, we would do well to focus our attention on strategic sourcing. This focus may involve reverse auctions, contracts, obtaining cost reductions
from suppliers, or just consolidating your base of suppliers. Obtaining a one-time cost ISM Nevada – Las Vegas Affiliate had a very good reduction may not result in continued turnout for our October meeting. Many attending savings. A supplier may be discouraged from were interested in hearing about “Economic offering future cost savings and could hinder Conditions: What to Watch Going into 2015” technology or quality. Making the transition presented by Jeremy Aguero from Applied Analysis. from this type of process approach to a strategic approach does not come naturally Jeremy’s presentation was excellent. It had a lot of for everyone; however, many business positive information. It was great to hear that Las Vegas is in an Economic upswing. executives recognize that supply market intelligence is the foundation for strategic As an introduction, Jeremy explained what he calls competitive advantage. A procurement the “Holy Trinity” of Economics. What to watch for department’s most talented employees in when looking for recovery. conjunction with industry experts impact supply strategy—the definition of supply Watch the “Real GDP”, “Employment”, and “The market intelligence. S&P”. All three of these are recovering and are the highest they have ever been. On November 18, 2014, Jeanette Jones of Cottrill Research, and co-author of Jeremy was very gracious to give us a copy of his Supply Market Intelligence for Procurement presentation which we have downloaded onto the Professionals: Research, Process, and ISM-Nevada website. Log in and go to the Resources (2014) will present a half-day presentation archive link under the “Meetings” tab. seminar (1-5 p.m.) on Supply Market Intelligence for Procurement Professionals. Applied Analysis has also posted the presentation on their website for any non-members of ISM- Learn how to develop the skills that will Nevada who cannot access our website. enable you to develop a supply market http://appliedanalysis.com/work/index.php#service intelligence program that will benefit both s=economic. They also have a new “My you and your organization. This seminar will Researcher” application that will assist you in be held at the Clark County Government keeping up with information on the day in and day Center in the Gold Room on the fourth floor. out changes in the economy.
Jones, J., & Barner, K. (2014) Supply Market We would like to thank Jeremy Aguero again for Intelligence for Procurement Professionals. taking the time to provide this information to our Plantation, FL: J. Ross Publishing, Inc. members.
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YOU DON’T
KNOW
WHAT YOU
DON’TKNOW Submitted by Dianne Collins, C.P.M., CPPO, CPPB
The following sample test questions were developed for those procurement professionals interested in acquiring their CPSM professional credentials.
1. The supply manager for a small metal fabricating firm in Holland called a gardener and requested he plant a variety of tulips in the front entry area of their facility. After some discussion, he agreed to a price of $450. The job was completed as promised but the supply manager refused to authorize payment as promised. Which of the following obligates the supply manager to pay for this service?
(a) Doctrine of promissory estoppel (b) Liquidated damages clause (c) Social responsibility issues (d) Collusive offers
2 Which of the following statements is MOST accurate with regard to cost?
(a) Fundamentally, cost control is a trade‐off between cost and quality. (b) A key objective of cost control is to take advantage of changes in technology. (c) Cost control is primarily the result of improvements through on‐the‐job experience. (d) Cost avoidance and cost containment mean the same thing.
3 Which of the following refers to the forecasting method that utilizes opinions gathered from people?
(a) Monte Carlo simulation (b) Spend analysis (c) Delphi technique (d) SWOT (Strengths, weaknesses, opportunities, threats)
Answers can be found on the last page of the Newsletter.
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UPCOMING EVENT PLANT TOUR – DECEMBER 3, 2014 11:00 AM – 1:00 PM
Join ISM-NV and Laura D’Amore, Director of Sales, as we tour the production of Opportunity Village’s Lunch Bunch and Cookie Crafters kitchen. With the help of a partnership with the Culinary Academy of Las Vegas, OV kitchen produces boxed lunches, gourmet cookies and decadent chocolate covered popcorn. After touring their state-of-the- art production kitchen a boxed lunch prepared by their talented team of people with disabilities will be served. More than just a charity, Opportunity Village operates three employment resource centers and one thrift store in southern Nevada. It also trains and places hundreds of adults with disabilities in jobs throughout the community, and hosts some of the most popular special events in Las Vegas. Through diligence, commitment and continued community support, Opportunity Village has helped some of southern Nevada’s most vulnerable citizens integrate into society, offering a paycheck, a feeling of achievement and a renewed sense of independence. ISM-NV has a philanthropic minded membership who embraces their responsibility to serve the Las Vegas community. Join Jane Bjorklund, Opportunity Village Director Corporate Relation as we create a life-long relationship which extends outside the walls of ISM-NV and into the campuses of Opportunity Village where intellectually disabled individuals are given the real “OPPORTUNITY” to learn skills and earn a living.
Location: Check in starts at 10:45 am Opportunity Village Englestad Campus 6050 S. Buffalo Drive Lunch catered by: Las Vegas, NV 89113 Opportunity Village Lunch Bunch
December 14, 2014 is ISM-NV Volunteer night at the Magic Forest
SIGN UP TODAY!
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BAHAMA BREEZE ISM-NEVADA HOLIDAY MIXER
ISM-NV Holiday Mixer - Happy Hour Wednesday, December 10th - 4:00 - 7:00 p.m.
Bahama Breeze is a restaurant that brings you the feeling of a Caribbean escape. They offer fresh cuisine, handcrafted drinks and a laid-back atmosphere you would find in the islands.
Where: Gazebo Room COST: FREE EVENT
Drinks are not provided by ISM-Nevada (Wine is not included in happy hour prices) Appetizers Provided & Door Prizes
RSVP BY: December 3, 2014
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UPCOMING EVENT January 14, 2015 Jon Ralston
Political Analyst Political Commentator Award‐winning Journalist
“Nevada’s Political Impact on Business”
Jon Ralston has been covering politics in Nevada for more than a quarter-century, and is recognized as the foremost expert in the state. In 2012, he was named one of the Top 50 "Politicos to Watch" by Politico.
Jon is the TV host on "Ralston Reports," for all three NBC affiliates in Nevada. He also puts out an email newsletter called "Flash" that sets the political agenda for the day, breaks news and contains analysis. In addition, he is a contributing editor at Politico Magazine and regularly appears on national television, including programs on MSNBC, FOX and PBS.
Originally from Buffalo, N.Y., with a B.A. in English from Cornell University and a M.A. in journalism from University of Michigan he came to Sin City in 1984 as the night police reporter for the Las Vegas Review-Journal, later covering general assignment and county government before becoming a political reporter in 1986.
He wrote for the Las Vegas Review-Journal for 15 years, the last seven as a freelance columnist. In 1999, the Greenspun Media Group purchased his political newsletter The Ralston Report, and he worked for that company, publishing columns in the Las Vegas Sun, until September 2012.
Awards include: Nevada State Press Association's Outstanding Young Journalist of the Year in 1986, Best Columnist of the Year in 1991 and 1992 and Best Non-Staff Columnist in 2000, 2001, 2003, 2005, 2007, 2009, 2010, and 2011. In 2009, he won the Associated Press News Executive Council award for best local column.
In 2000, Ralston was named as an Influential Businessman in Southern Nevada by In Business Las Vegas.
Meeting Location: Main Street Hotel & Casino, Social Club
Meeting Sponsor:
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Facing the Reality: CERTIFICATION How to Tackle Supply Market Intelligence When You
Are Stressed for Time and Have a Limited Budget Submitted by Jeanette Jones, Cottrill Research Calling All C.P.M.s: Don’t Miss the Two white papers about supply market intelligence (SMI) correctly Bridge Exam Deadline emphasize both the importance of SMI for strategic sourcing/procurement and the difficulty of actually obtaining the high quality information that is Right now, Certified Purchasing needed. Accenture’s white paper, The Market Intelligence Opportunity Managers (C.P.M.s) have an correctly states, “With increasing end-market volatility and financial advantage: Active C.P.M.s only need pressure on companies to do more with less, the need for world-class procurement is more pressing than ever. But building world-class to take one Bridge Exam, instead of procurement—and the market intelligence capability to support it—is a three separate exams, to become a challenge even for the most resourceful organizations.” Tata’s white paper, Certified Professional in Supply ® ® Driving Strategic Sourcing Effectively With Supply Market Intelligence Management (CPSM ). Any active states, “CPOs, procurement specialists and category managers will agree C.P.M. may apply for a CPSM®, as that it is a challenge to collect high quality, valuable supply market there is no longer a requirement for information across a supply chain network, as it involves subscribing to holding a degree. In addition to being costly industry journals or pushing category managers to spend huge a C.P.M. in good standing and passing amounts of time on gathering knowledge from a large number of sources. the Bridge Exam, candidates must In short, it results in procurement personnel spending huge amounts of time on gathering knowledge.” have five years of professional supply management experience or three If SMI is difficult for “world-class” procurement departments, imagine how years of professional experience plus challenging it must appear to be for professionals in smaller procurement a bachelor's degree (or international departments with limited resources. These professionals often deal with equivalent). budgets that are stretched thin and challenged with managing several spend categories. But the good news is that supply market intelligence is Don't miss out: The Bridge Exam an initiative that can be achieved with success for any spend category or registration deadline is coming up market regardless of budget size or restraints on time. fast. The last day you can register for
To accomplish this, there are tactics to use based on these two premises: the Bridge Exam is December 31, 2014. You have one year from the 1) To address the issue of working with a limited (or zero) budget, date of purchase, or December 31, learn and take advantage of open access (free) resources and the 2015, to take your exam, whichever experts, institutions, and organizations that offer them. comes first. ISM® will no longer offer the CPSM® Bridge Exam after 2) To address having limited time, master the skills of basic research. December 31, 2015. This knowledge is empowering in so many ways, mostly in knowing how to extract key, relevant information in an efficient manner. There are basic skills that can be applied to any research Beginning in 2015, C.P.M.s will need activity, whether it is via the Internet, open web, or carried out to pass three exams to obtain the ® using commercial services. CPSM certification. If you have ® questions about the CPSM Exams or With departments that have larger budgets, the first premise expands to the Bridge Exam, please visit the ISM include taking advantage of the best value information sources that are of Certification website, high quality, meet a particular need, and are authoritative and impartial (to www.ism.ws/certification, or email be covered in other posts). [email protected].
PREMISE ONE: TAKING ADVANTAGE OF OPEN ACCESS RESOURCES
PREMISE TWO – LEARN BASIC RESEARCH TECHNIQUES
To learn about these two premises visit www.cottrillresearch.com
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ANSWERS Question 1 (a) Doctrine of promissory estoppel is correct; Because if one party makes a promise, even orally, they cannot renege on that promise if the other party has acted in reliance on it. (b) is incorrect because liquidated damages are restitutions for such things as late deliveries or failure to deliver . (c) is incorrect because social responsibility refers to such things as child labor and worker safety. (d) is incorrect because collusive offers refer to a secret agreement and cooperation for fraudulent or deceitful purpose. Question 2 (b) Changes in technology is correct; Because the principal objectives of cost control are to take advantage of changes in technology, changes in the operating environment, and on-the-job experience. (a) is incorrect because cost should not be achieved at the expense of quality. (c) is incorrect as on-the-job experience can, and often does, lead to reduced cost; however, it is not the primary influence on costs. (d) is incorrect because cost avoidance is defined as preventing or reducing future costs, while cost containment refers to holding costs within certain target limits over a specified period. Question 3 (c) Delphi technique is correct; Because the Delphi technique is a qualitative method that involves gathering opinions from people to develop a forecast. (a) is incorrect because it is a problem-solving technique used to determine probability of an outcome through various simulations. (b) and (d) are incorrect because they are not direct forecasting methods.
Supplier Relationship Management for Collaboration, Impact and Business Success
4328 Las Vegas, NV Jan 28, 2015 – Jan 30, 2015 application deadline COB Friday, December 26, 2014
Contracting for Purchasing and Supply Management: Beyond the Basics
4539 Las Vegas, NV Feb 09, 2015 ‐ Feb 10, 2015 application deadline COB Friday, January 9, 2015
Finance for the Supply Management Professional
4539 Las Vegas, NV Mar 18, 2015 ‐ Mar 20, 2015 application deadline COB Friday, February 13, 2015 http://ismnv.org/content.php?page=Scholarships
Direct questions to Carol Poindexter at [email protected] or to Jim Haining at [email protected] or 702‐428‐6194.