How to Cope___ by sdfgsg234


									National                                                                                                                             FEBRUARY
Association of                                                                                                                       2010
                             the Peach                 State Purchaser
  ISM–Atlanta, Inc.
                                                                            ISM-Atlanta Presents...
                                            The February 11th Professional Development Meeting
                                                     Featuring Allan D. Kennedy M.Ed., LPC, BCPC

                                           Thursday, February 11, 2010
                                           The Country Club of Roswell
                                           6:00 p.m.

     STRESS: How to Cope!!!
        Family, Career, Marriage, Divorce, Debt, Joblessness, Too
     Little Time…STRESS comes from everywhere.
                                                                       Comes from all directions...

                                                                    Stress that 75% to 90% percent of all doctor visits are stress
                                                                    related. Allan Kennedy’s presentation will look at the ori-
        At the February 11th Professional Development Meeting       gins of stress as well as the affects of stress on our bodies,
     Hear Allan Kennedy Identify the Origins of Stress and How      minds, jobs and families. In addition, why some of us are
     to Cope! Come early for a free Chat about Everything You       more susceptible to stress than others, will be addressed.
     Need to Know about CPSM with Debra Hansford, starting          Through the use of real life examples, humor and practical
     at 5:30!                                                       interventions, Mr. Kennedy will guide the audience towards
        Kennedy will make you understand your stress causes         a path in life that is much more relaxed and enjoyable.
     and give your hope for managing. His very personable,
     lighthearted approach to this common and serious topic         About the Speaker:
     will lift your spirts.                                         Allan D. Kennedy M.Ed., LPC, BCPC
                                                                       Kennedy is a native of Alexandria, Virginia and is cur-
     Stress – It’s Not All In your Head                             rently employed with AT&T as Senior Project Manager
       Stress had been called America’s number 1 health             with primary responsibility for Employee Engagement.
     problem, and it is estimated by the American Institute for     Prior to this assignment he spent 25 years as Regional EAP
                                                                                                                      continued on next page

                                                                          INSIDE THIS ISSUE
        Before the Meeting                                               Registering Your Account on .......2
           There will be a free CPSM question and answer ses-            Save These 2009 Dates .............................................3
        sion before the February Professional Development                March 2010 is Supply Management Month ...........4
        meeting. The session starts at 5:30PM until 6:15PM.              From the Blogs ..........................................................5
        David Pettitt and Debra Hansford will outline the costs          Welcome New Members ...........................................6
        and recommended course of action to obtain your                  ISM-Atlanta Terms of the Month .............................7
        CPSM designation, whether you are a C.P.M. looking at            The Reality of Green .................................................8
        the Bridge exam, or are starting from scratch. Bring your        November Georgia PMI Report ...............................9
        questions and thoughts, there will be handouts. You are
        not required to stay for the dinner meeting, but if you
        want to hear our great speaker you must register at the
        ISM Atlanta website. See you there!
 Having Problems Logging or Registering on the
 ISM-Atlanta Members Only Section?
 If you are a new ISM-Atlanta member or
 just need to register for an account on the
 ISM-Atlanta web site, please download our
 helpful guide. It will walk you through the 4
 step process of registering your account and
 logging in. It’s easy (and only takes a few
 minutes) and it’s FREE for all of our members!
 Take advantage of all the benefits your ISM-
 Atlanta membership has to offer today!

Continued from page 1

Administrator. (BellSouth)                                      Kennedy has served on the National Business Group
   Following Hurricane Katrina, Kennedy oversaw the          on Health’s National Advisory Committee on Maternal
building of the then ‘BellSouth Tent City” for Katrina       and Adolescent Health as well as the National Commit-
victims and their families. He then coordinated as well      tee on Employer Sponsored Behavioral Health Services.
as provided CISD services to the affected BellSouth em-      Kennedy is currently serving as Vice President of the
ployees and families for several months.                     Board of Directors of Mental Health America/Georgia
   Prior to his graduate work, Mr. Kennedy was Director      and is a Board Certified Professional Counselor.
of Personnel at Kaus & Whitestone Inc. of Springfield,          In addition, Kennedy has been a consultant to indus-
VA.                                                          try, school systems and universities. He is a frequent
   He received his graduate degree in Counseling             lecturer and trainer. He lectures on a variety of topics
Psychology from James Madison University. After              such as Stress Management, Marriage and Family Is-
completing his graduate work Mr. Kennedy worked in a         sues, Bereavement, Emotional IQ, Generational Conflict
variety of clinical settings as a psychotherapist, consul-   in the Workplace, Corporate Downsizing and its affect
tant and program director. Prior to coming to BellSouth      on the family and Violence in the Workplace. Mr. Ken-
he worked as Director of Consultation and Education at       nedy also has a private practice in Alpharetta, Ga.
the Northwest Counseling Center in Tennessee.                   While proud of his professional accomplishments,
   In his current role at AT&T, Kennedy is also co-          Kennedy is proudest of his marriage to the former Mar-
responsible for Coordinating as well as Administering        sha Hazlewood and his two sons, Jacob and Patrick.
Employee Care efforts after disasters.

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                                       ISM-ATLANTA PEACH STATE PURCHASER
March 11th Professional Development Meeting
Speaker: Debra Hansford
Topic: Negotiations: Honing your skills.

  We all know and love her as trainer and teacher of all things CPM and CPSM, but Debra also has 25+ years of
professional procurement experience and will share her knowledge and expertise in successful negotiations

  April 8 and May 13 are being finalized and will be announced through email blasts and the website very

June 10th Professional Development Meeting
Speaker: Paul Novak

  ISM-Atlanta welcomes Paul Novak – President of ISM International – who will examine with us “The Future of
Supply Management”. More details to come…..

  To learn more or sign up for these events, please visit ISM-Atlanta calendar page now!

  ISM-Atlanta’s Professional Development meetings are always the 2nd Thursday of each month. July
and August are summer holiday for all except board members.

ISM-Atlanta’s latest website
   The ISM Atlanta website at now
has videos available for some of our recent Professional
Development meetings. Check out “Why Companies
Lease?”, “Should Cost Modeling”, and “Alliance on the
Rocks” and more to come. If you missed the meeting
or just want to relive the thrill of the excellent presenta-
tions you experienced, please check out this new feature
in the Members Only section of our site. This new en-
hancement to our website is cutting edge so take the
time to check them out today!!!

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                                        ISM-ATLANTA PEACH STATE PURCHASER
March 2010 is Supply Management Month!
ISM’s Role to Lead Supply Management                            Once an issue is identified, staff conducts research on
   Traditional purchasing activities have always contrib-     the topic and draft potential statements for review by
uted value, through negotiating lower prices and/or           members of the ISM Board of Directors.
selecting the best supplier(s) for each given situation.
But the role of the purchasing professional has expanded      Secret Revealed
over the years and has grown into an even more critical         The role of supply management will no longer be a
and more strategic role of supply management.                 secret. Supply management has a critical role … and the
   The mission of the Institute for Supply Management™        world should know it! As the leader in supply manage-
(ISM) is to lead supply management. We have for a long        ment, ISM is committed to getting the message out! For
time been the leader in purchasing and supply man-            more information on ISM, visit or www.
agement education, products, information and other  
   •	 	SM	 has	 established	 standards	 of	 knowledge	 and	   About ISM-Atlanta
      achievement through the C.P.M. professional certi-      Vision for the Association
      fication program.                                          ISM-Atlanta is recognized as the leading organization
   •	 	SM	has	developed	codes	of	ethics	and	professional	     in our area for the support of purchasing and materials
      behavior through the Principles and Standards of        management professionalism.
      Ethical Supply Management Conduct and, most             Mission Statement
      recently, the Principles of Social Responsibility.         ISM-Atlanta exists to educate, develop, and advance
   •	 	SM	has	issued	the	Manufacturing	Report	On	Busi-        the purchasing and supply management professional in
      ness® for more than 70 years and the Non-Manufac-       a contemporary environment.
      turing Report On Business® since June 1998.                Organizational Objectives-
                                                                 •	 Financial: Manage revenue and expense levels to
  And now, ISM is embarking on a new endeavor …we                   insure that the association is able to fulfill its mis-
want to share the value of supply management!                       sion.
                                                                 •	 Personnel: Dedicated ourselves to recruit, retain,
ISM’s Supply Management Image Campaign                              and motivate ACTIVE membership.
   The overall objective of the ISM public relations pro-           E
                                                                 •	 	 ducational: Provide our members with high qual-
gram is to increase the awareness of supply management              ity, timely educational opportunities and tools that
and help shape the image of the profession. Our public              enhance their professional development.
relations efforts are focusing on aggressively seeking op-          M
                                                                 •	 	 arketing: Insure that the current/potential mem-
portunities for sharing the value of supply management              bership is aware of all the resources and educational
and gaining additional coverage in print and broadcast              opportunities available to them through ISM-Atlanta
media.                                                              and NAPM.
                                                                 •	 	 rofessional: Promote professional excellence
Speaking on Behalf of the Field                                     through the support of NAPM programs, Certifica-
   As the leader for supply management, we are now                  tion, Ethical standards, and Membership in ISM-
identifying related issues and developing official position         Atlanta.

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                                        ISM-ATLANTA PEACH STATE PURCHASER
From the Blogs...
“New Normal” does not equal “No Growth”
by Kris Colby
   Regardless of who might have authorship rights (Pimco?      heavily on your business partners and suppliers to do things
Ariba? Others?), the concept of “The New Normal” has defi-     that in the past might have been done internally
nitely caught on in both the mainstream media and spend           3. Reluctance to make large upfront investments with
management circles .                                           long payback times. Good luck with talking your CFO into
   However, it’s important to remember that “the New           any “$25M now and ROI in 48 months” business cases. ROI,
Normal” doesn’t translate directly to “permanent low GDP       especially in technology investments, needs to be measur-
growth” as has been put forth by some investment advi-         able in weeks and months, not quarters and years.
sors.                                                             Surely, these are all challenges, but none mean “low
   Instead, the New Normal is characterized by several         growth forever”. Companies that can learn how to respond
trends that will, over time, become “SOP” for most large       and scale quickly will have plenty of opportunities to deliver
organizations:                                                 value to both customers and shareholders.
   1. Increased need for agility to respond more quickly to       So, don’t let the New Normal get you down. Growth will
rapid change whether that’s in commodity markets, geo-         return like it always does. Instead, look at this new environ-
political supply risk, regulatory environments, or good old-   ment as an opportunity for your organization to get in front
fashioned competition.                                         of the curve provided you’ve got the speed, agility, capabili-
   2. Fewer permanent resources and increased reliance on      ties and community to grab it.
your community of business partners. Let’s face it, many of
the people laid off during the Recession aren’t coming back       Kris Colby is a Director in Ariba’s Spend Management Ser-
or at least not in the same capacity. But there’s even more    vices group. Kris specializes in strategic sourcing and risk reduc-
to do. That means increased productivity and relying more      tion for multinational organizations.

Toyota Recall: Time to step on the gas of
Risk Management?
by Mark Oser
    Toyota consistently ranks among the most respected         the disruptions in their supply chain could be the hit to
 global corporations and is well-known for their manu-         their brand.
 facturing prowess and strong supplier ties. That’s exactly       If you think that only your biggest suppliers need to
 why this week’s news about the accelerator problems for       be involved in a formal supply risk management program
 4 million vehicles came as a shock to so many of us. The      (e.g. automated alerts and scorecards populated by both
 impact of this episode will be long-term, far-reaching, and   objective and subjective data inputs from various sources
 very expensive.                                               as one component) and the rest can be covered with just
    Supply risk specialists speak often about the three        some historical financial information/ratios, on-time de-
 distinct kinds of supply risk (Brand, Commodity, and Dis-     livery ratios, and maybe an annual business review, think
 ruption). While this episode at Toyota may not have hit       about the fact that CTS is almost certainly not even in the
 a trifecta, they are certainly dealing with an awful daily    top 500 of Toyota’s list of largest suppliers.
 double. The only thing that might be more expensive than         The important point for you is NOT what happened at

                                                                                                       continued on next page

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                                         ISM-ATLANTA PEACH STATE PURCHASER
Toyota. Toyota will obviously and thankfully weather this        have both the skills and bandwidth required to conduct risk
storm and, down the road, repair their image.                    management at any broad level of activity.
    What matters is this: If an event like this…                     4. Do they access to the right information (i.e. audit trail)?
    •	 Can	be	linked	to	a	small(ish)	supplier	                   If (when) something is to go wrong, you’ll have the informa-
    •	 And	cause	so	much	damage	                                 tion you need readily available about the expectations you
    •	 At	the	world’s	most	respected	auto	manufacturer	          set with suppliers, how you monitored their compliance,
    Then all of us have reason to be very afraid. Tomorrow       and how you graded them along the way.
morning, we also need to ask some very tough questions               Depending on the answers you hear to these questions,
of ourselves and our supply chain and procurement leader-        you will probably want to take a closer look at that Supply
ship.                                                            Risk Management that’s been on your “nice-to-have” list for
    1. Are we really running a thorough enough risk man-         such a long time.
agement process (including Finding risk, Fixing them, and            There’s no telling the final costs associated with a major
Follow-through on Monitor/Management)? Most organiza-            supply risk event. The only thing you do know for certain is
tions only do parts of this 3-step process well or have the      that an ounce of prevention weighs a lot less than a pound
proverbial “binder on the shelf” risk assessment that was        of cure.
out of date three minutes after it arrived from the printer.         Mark Oser is a director in the Ariba Global Services or-
    2. Are we executing this process with enough of your         ganization. He specializes in helping large organizations
supply base? Most organizations execute on just a small          develop and execute complex sourcing, risk and procure-
slice of strategic suppliers. Most organizations employ some     ment initiatives.
basic supplier stratification measures based on size, but this
episode underscores the importance of deploying a more
holistic and systematic approach to tiering and managing            Justin Fogarty is Managing Editor of Supply
suppliers that includes risk.                                    Excellence. For any questions or feedback on the blog or its
    3. Do their people have the right capabilities to manage     contributors, Justin can be reached at
risk across your supply chain? Most organizations do not

Welcome new members!
NAME                                     COMPANY/ORGANIZATION NAME                          PRIMARY JOB TITLE
Christopher Dixon                        Alvarez and Marshal                                Director
Haytham Abbas                            Amtico Intl                                        Purch Mgr
Lisa Romano C.P.M.                       E Trade                                            Head of Purch
Annjeanette Fisher C.P.M.                `Eclipsys Corp                                     Purchasing Coordinator
Dan Leveille                             Enablence Optical Products                         VP of Supply Chain Mgt
Harla Acheson                            FISERV Financial Svc’s                             Sourcing Analyst
William Johnson                          Flying Food Group                                  Purch Mgr
Gerry Cameron                            Hi Tech Solutions                                  VP of Ops
Robert Kinnebrew                         Home Depot                                         Sr. Director
Melody Simmons                           LXE Inc                                            Buyer
David Hawks                              Miller Zell Retail Design                          VP-Strategic Procurement
Kevin Branch                             Morehouse College                                  Student
Jim Clous                                Nordson Corp                                       Purchasing Agent
Anthony Rufo                             Nordson Corp                                       Purchasing Manager
Beverly Laney                            Oldcastle Materials
Deron Banke                              Oldcastle Materials Inc                            VP of Strategic Sourcing
James Perkins C.P.M.                     RailAmerica                                        Purch Mgr
Maritza Padua                            Rubbernetwork                                      Sourcing Mgr
James Smith                              Shaw Industries Group Inc                          Manager, Capital Global Sourcing
Shelly Sims                              The CLOROX Company                                 Buyer II - Plastics
Isatta Deen                              The CLOROX Company                                 Sr Sourcing Analyst
Vineeth Jacob                            The CLOROX Company                                 Student
Angela Smith                             The Home Depot                                     Strategic Sourcing Mgr
Heidi Pachura                            Director, Procurement
James Link                               Procurement Analyst
Mary Bennett
Laurie Brunsky

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                                           ISM-ATLANTA PEACH STATE PURCHASER
ISM-Atlanta Terms of the Month
ISM-Atlanta’s Terms of the Month are:

Situations that might contribute to STRESS……
  The process by which an organization works with its supplier to accomplish common goals or objectives; also
known as supplier relationship management (SRM).

  Deceit, trickery, breach of confidence or other illegal act used to gain unfair or dishonest advantage. May be
the basis for a tort (personal injury) lawsuit.

  Loss of inventory due to deterioration, pilferage, outdating, scrap and so on.

  Financial remedy awarded to a plaintiff to compensate it for actual loss, injury or damage.

  A different Term of the Day is posted on the ISM Home Page ( each day — seven days a week. The
Term of the Day is taken from the ISM Glossary of Key Supply Management Terms.
  To access the online Glossary, go to You must log in as a member to

Enter for YOUR chance to win the Second ISM
Free Trip
   If you attended the September, October, November, December and/or January
Professional Development meetings, your name could be announced as the winner of the second trip to ISM
International Conference in San Diego, CA on April 25-28, 2010.

  But if you don’t win in December, enter for the second trip at the February event and your name could
be drawn in March 2010. Here’s the info below:
  •	 	 wo	members	will	win	free	trips	to	the	95th	Annual	ISM	International	Supply	Management	Conference	and	
     Educational Exhibit, April 25-28, 2010, in beautiful San Diego, California.
  •	 This	opportunity	will	be	limited	to	current	members	of	ISM-Atlanta.	
  •	 	 or	each	event	you	attended,	your	name	was	entered	into	the	contest	once.		These	events	included	monthly	
     professional development meetings, satellite seminars, and C.P.M. or C.P.S.M. review classes.
  •	 	 inners	are	not	allowed	to	transfer	nor	sell	their	trip	to	another	member	of	ISM	Atlanta	or	a	colleague.		
     Registration fees, lodging, meals outside of conference provided meals, and travel to and from the event,
     submitted on an ISM-Atlanta expense report, will be covered by ISM Atlanta for each winner.

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                                     ISM-ATLANTA PEACH STATE PURCHASER
          The Reality of Green
The Impact of Green
                 onaFederal Sales
                 3rd in Series                                                          By John Wilkerson, CPSM

Does your Company Sell Products or Services to the Federal Government?
   Are you aware that the 2009 Federal Government environmental policy will impact 95% of all federal contracts in the
future? Are you tuned into the strategic sourcing implications of this new Federal policy? Is Greenhouse Gas (GHG) Man-
agement part of your long term sourcing strategy? Are their benefits for initiating carbon footprint reduction initiatives?

   Corporate sourcing leaders are constantly challenged by numerous priorities such as; supplier performance, weekly
cost savings reporting, and as always internal customer issues such as lack of clear specifications and sometimes unreal-
istic budgets. The newest challenge for companies that sell to the U.S. Federal Government centers around Presidential
Federal Executive Order 13514, Federal Leadership in Environmental, Energy, and Economic Performance. This order
signed on October 5, 2009 mandates numerous changes to Federal environmental policy which impacts the CPO. Here
are several high level categories from Executive Order 13514:
   •	 Sustainable	Buildings	and	Communities
   •	 Water	Efficiency
  •	 Pollution	Prevention	and	Waste	Reduction
  •	 Strategic	Sustainability	Performance	Planning
  •	 Greenhouse	Gas	(GHG)	Management

   The balance of this article will focus on GHG Management (sometimes called Carbon Management) and it’s near term
impact on global sourcing and global supply chain only. Not month’s article will focus on Sustainability Performance

Strategic Sourcing Implications
  As the sourcing manager takes a deeper dive into this important environmental subject he (s) will discover that sev-
eral typical job duties; negotiation strategy, supplier development, and contract management may be impacted in the
2010/2011. Before we go any further let’s understand the current federal environmental policy and potential near term
implications. Here are a few potential strategic sourcing scenarios:

Federal Greenhouse Gas Management Requirement                  Strategic Sourcing Next Steps

Federal Contractors (Scope 3) must establish GHG emis-         Should determine if Scope 3 applies to your industry and
sions goals (fiscal year 2008 baseline)                        company

Reduce Agency use of fossil fuels by 2020                      Should understand the industry and company’s scope

By 2011, establish and report a comprehensive inventory        Should determine if this standard applies to your business
of absolute GHG emissions across all three scopes for fiscal   and suppliers
year 2010.

                                                                                                    continued on page 11

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                                          ISM-ATLANTA PEACH STATE PURCHASER
Georgia Purchasing Manager’s Index Report
      Furnished by Don Sabbarese, Ph.D., Kennesaw State University Econometric Center
Reasons for January PMI’s Increase:                                Overview:
New Orders:                                                           New Orders rebounded with a 10.3 point increase follow-
   New Orders increased 10.3 points to 57.9. New Orders            ing two straight months of sub-fifty readings. This was the
increase was based on 10.4% more respondents reporting             result of the combined effect of more respondents reporting
higher New Orders for a total of 42.1% and 10.3% less respon-      higher New Orders and less respondents reporting lower New
dents reporting lower New Orders for a total of 26.3%.             Orders. January New Orders is 8.7 points above its six week
                                                                   average. New Orders experienced the strongest improve-
Production:                                                        ment in January. Production did not match the New Orders
   Production increased 0.8 of a point to 44.7. Production’s in-   increase as respondents apparently used Finished Inventory
crease resulted from 0.5% less respondents reporting higher        to meet the pickup in New Orders. January Finished Inventory
Production for a total of 26.3% and 2.2% less respondents          is 9 points below its 6 month average. Employment remains
reporting lower Production for a total of 36.8%.                   very weak with only 5.3% of respondents reporting increased
                                                                   hiring. January Employment is 1.6 points below its 6 month
Employment:                                                        average. Supplier Delivery Time increased with 13.2% report-
   Employment decreased 1.7 points to 43.4 based on 4.5%           ing slower delivery. Commodity Prices remain relatively high
less respondents reporting higher employment for a total of        at 65.8, which is 3.2 points above its six month average.
5.3% and 1.1% less respondents reporting lower Employment             Georgia and the Southeast PMIs are both more than 10
for a total of 18.4%.                                              points below the National PMI.

Supplier Delivery Time:                                            National PMI Report:
   Supplier Delivery Time increased 2.8 points to 55.3 based          The National January PMI increased 3.5 points to 58.4,
on 1% more respondents reporting slower delivery time for          which was the result of the following increases: 1.1 points
a total of 13.2% and 4.7% less respondents reporting faster        to 65.9 for New Orders, 6.5 points to 66.2 for Production, 3.3
delivery for a total of 2.6%.                                      points to 53.3 for Employment, and 3.5 points to 46.5 for Fin-
                                                                   ished Inventory.
Finished Inventory:                                                   Commodity Price increased 8.5 points to 70 points. Thir-
  Finished Inventory decreased 11.3 points to 28.9 based on        teen of the 18 manufacturing industries reported growth in
14.2% less respondents reporting higher FI for a total of 5.3%     January. Furniture and Related Products is the only industry
and 8.3% more respondents reporting lower Finished Inven-          reporting contraction.
tory for a total of 47.4%.
                                                                   Industrial Production Report:
Commodity Price:                                                      The December Industrial Production Report reported an
   Commodity Price decreased 0.1 of a point to 65.5 based on       increase of 0.6% matching November’s revised 0.6%. The cold
2.5% more respondents reporting higher Commodity Price             weather caused a jump in Utilities production of 5.9%, which
for a total of 34.2% and 2.6% more respondents reporting           was a major contribution to this strong improvement.
lower Commodity Price for a total of 2.6%.                            Motor vehicle assembly fell again. Computer and electrical
                                                                   output is up 1.6%. Business equipment is up 0.9% for Decem-
Future Expected Production:                                        ber. High tech is up 2.4%. Strength in capital spending is an
   Forty two percent of respondents reported higher expect-        encouraging way to start the 2010 year. It will play a critical
ed Production in the next 3-6 months, which is down from           role for sustaining the current economic improvement.
forty seven percent for December. Seven point nine percent
expect it to be lower than their current production. This may      Georgia versus the Southeast Survey:
help explain why Georgia Production did not respond to the            January Southeast (SE) and Georgia (GA) PMIs are mov-
increase in January New Orders, but instead drew down their        ing lockstep with minimal increases of 0.6 and 0.2 of a point
inventories.                                                       increases respectively. The greatest difference between the
                                                                   two PMIs is Georgia’s higher New Orders and lower Finished
                                                                                                           continued on next page

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                                             ISM-ATLANTA PEACH STATE PURCHASER
The Three Survey Comparison:                                    Comment:
   The January Georgia and SE PMIs are 12.3 and 12.6 points        The Georgia and Southeast January PMIs and their under-
below the National PMI of 58.4 points. The National PMI’s       lying variables have fallen further behind the National PMI.
New Orders, Production and Employment are 11.6, 19.3 and        The Georgia and the Southeast PMIs have underperformed
11.9 points higher than the respective SE underlying vari-      the National PMI since August of 2009. Based on this history
ables. Georgia’s same underlying variables are 8.0, 21.5 and    and current differences it is apparent that the Southeast and
9.9 points below the National variables.                        Georgia manufacturing sectors are not experiencing the
                                                                strong rebound for the National Manufacturing Sector.

   Change In Percent of Georgia Participants Reporting Higher, Same and Lower
                             JANUARY - DECEMBER

                                                        Higher                 Same              Lower
                 New Orders                               10.4                  -0.1              -10.3
                 Production                               -0.5                  2.7                -2.2
                 Employment                               -4.5                  5.6                -1.1
                 Deliveries                                1.0                  3.7                -4.7
                 Finished Inventory                      -14.2                  5.9                 8.3
                 Commodity Prices                          2.5                  -5.1                2.6

                           PMI Georgia, PMI Southeast, and PMI National
                       Aug-09         Sep-09         Oct-09         Nov-09         Dec-09         Jan-10        Jan-Dec
 PMI GA                   45.4           44.6          48.9           43.5           45.9           46.1           +0.2
 PMI Southeast            46.2           46.7          49.2           47.5           45.2           45.8           +0.6
 PMI National             52.9           52.6          55.7           53.6           55.9           58.4           +2.5

                          AFFECT PURCHASING OPERATION:
PRODUCTS WITH HIGHER PRICES                                     calcium carbonate”
   “Copper wire, transformer oil, stainless steel, bearings,
steel wire, copper, gasoline, copper, steel, oil based prod-    ITEMS IN SHORT SUPPLY
ucts, spruce boards, pine mouldings, treated pine lumber,          “OSB, due to log shortages to heavy rain, aluminum
castor oil, both aluminum and copper(though both have           flat rolled, bearings, diesel engines, cocoa products, and
started to reverse their upward trend), sugar, resin, paper,    chemicals from China”
phenol, freight, acetone, isohhexanes, polypropylene,
corrugated, pallet lumber, aluminum, anthraquinone, am-         BUYING POLICY CHANGE
monia, hydrochloric acid, diesel, lead for batteries, stearic     “Switching to lesser known brands and smaller (or local)
acid, paper, palm oil lumber, OSB, polypropylene went up        providers to save money”
slightly, carbon steel, and aluminum ”                            “Business closing”

PRODUCTS WITH LOWER PRICES                                        GENERAL REMARKS - Give your frank opinion on any
  “Aluminum, wheat, corn, starch, aluminum, sulfate, and        conditions, local, national or international, that affect your
                                                                                                       continued on next page

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                                           ISM-ATLANTA PEACH STATE PURCHASER
Georgia Purchasing Manager’s Index Report
Continued from previous page

purchasing operation or your company’s outlook                               “Worst appears to be over but speed of recovery not
   “Housing is still slow”                                                clear”
   “Day to day is no different but some encouraging signs                    “Our business has a direct correlation to residential
for the next 6 months”                                                    homebuilding. When homebuilding resumes , our sales
   “Expect flat to down order base until mid-2011 at the                  will increase”
earliest”                                                                    “Slow recovery taking shape”
   “Stainless pricing will increase in January. Steel mill lead              “We expect to remain flat with little growth”
times seemed to have shortened. Customers continue to                        “Our customers are beginning to build inventory”
operate without inventory”                                                   “Vote Republican and kick the “Do Nothing” Democrats
   “Slight increase in NA sales, but still slow in EMEA”                  out of office”
   “Company’s outlook is good and would appear to be so                      “Inventories of finished goods that are raw materials
for the 1st half of 2010”                                                 seem lower than normal”
   “Expect steel prices to increase in February”

     The Reality of Green
     Continued from page 8

         I admit the above scenarios are very broad and are not           One, the supplier development team has an opportunity
      industry specific. Let’s work this example for illustration         to clearly align supplier performance with the corporate
      purposes:                                                           sales, marketing, and manufacturing processes. Two,
         •	 Assume	 you	 are	 a	 category	 manager	 working	 for	 a	      a deep dive into raw material sourcing and its carbon
      consumer products manufacturer selling apparel to the               output could lead to new innovation and cost reduction
      Defense Logistics Agency, Philadelphia, PA. If GHG, Scope           strategies. Lastly, by reviewing boilerplate T&C’s this could
      3 emissions reporting applies to your organization, you             lead to more open dialogue by the legal and contract
      could be tasked to track and report carbon (GHG) emis-              management teams.
      sions for suppliers such as; raw materials, related trans-
      portation and storage, as well as dyes or ink. GHG must be          Next Steps
      measured and reported to the Defense Logistics Agency’s                We all know that Sales and Marketing are constantly
      Chief Sustainability Officer during fiscal year 2011.               seeking new opportunities to set the organization apart
         Given this CPG example how does this impact strategic            from their peers. Given that 95% or more than 625,000
      sourcing in 2010? Depending on your individual com-                 (valued at more than $474 billion annually in 2009) of
      pany and industry perspectives here are several potential           future federal contracts must include an environmental
      near term impacts:                                                  component, federal suppliers are on the hook for action.
         •	 2010	raw	material	sourcing	strategy	                          This is a CPO opportunity! As a first step the Strategic
         •	 2010	contract	negotiating	strategy	                           Sourcing and Sustainability teams must join forces and
         •	 2010	/	2011	IT	capital	plan	(or	internal	solution)	           clearly define if and how Greenhouse Gas Management
         •	 	 010	 &	 beyond	 contract	 T	 &	 Cs	 (GHG	 reporting	        applies to the business and industry. GHG measurement
            language)                                                     and supplier development are likely new 2010/2011 ini-
         •	 	 011	 supplier	 raw	 material,	 staffing	 &	 IT	 repercus-   tiatives for companies seeking add value and stand out in
            sions                                                         the crowd.

      Potential Benefits
        It’s not all bad news! The newest CPO priority may                   2009 Federal spend source:
      have a silver lining for the strategic sourcing organization.

                                                              Page 11
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                                                ISM-ATLANTA PEACH STATE PURCHASER
ISM-Atlanta Directory
President                            Secretary                              Professional Development Chair       Director/College Reachout
Raymond Padgett, C.P.M., A.P.P.      Debra Howington, C.P.M., A.P.P.        – Monthly Development Meeting        Don Sabbarese, Ph.D.
StagParkway, Inc.                    SKF USA Inc.                           TBD                                  Director of Econometric Center
7095 Tradewater Pkwy                 5385 McEver Road                                                            Kennesaw State University
                                                                            Director/Librarian                   1000 Chastain Road
Atlanta, GA 30336                    Flowery Branch, GA 30542
                                                                            Natalie Blankenship, C.P.M.          Burruss Bldg., Rm 323
Phone: 404-349-1918 x225             Phone: 770-967-5309 H: 770-287-
                                                                            Category Manager-Purchasing          Kennesaw GA 30144-5591
E-mail: raymondpadgett@hotmail.      8754
                                                                            Rock-Tenn Company                    Phone: 770-423-6094
com                                  Fax: 770-967-4258
                                                                            Norcross, GA                         E-Mail:
1st Vice President                                                          Cell: 678-431-2202
Lauchlin McKinnon, C.P.M.            Professional Development Chair         E-mail:    Scholarships
Landis+Gyr                           – Certification                                                             E-mail:
                                                                            Director/ Public Relations
30000 Mill Creek Avenue, Suite 100   David Pettitt, C.P.S.M.; C.P.M.
                                                                            Pamela Johnson, C.P.M., M.B.A.;      Immediate Past President
Alpharetta, GA 30022                 3262 Devaughn Drive
                                                                            SSBB                                 J. David Lister, C.P.S.M.; C.P.M.
Phone: 678-258-1661                  Marietta, GA 30066
                                                                            AT&T Services, Inc.                  1325 Badingham Drive
E-mail:     Phone: 770-977-4466
                                                                            Consumer Supply Chain                Cumming, GA 30041
                                     Fax: 770-977-3345
2nd Vice President                   E-mail:
                                                                            1277 Lenox Park Blvd.                Phone: 678-746-5050
Richard Angel, C.P.M.                                                       Atlanta, GA 30319                    Fax: 770-664-6302
2641 Fountainbleau Drive             Membership Chair                       Phone: 404-499-3941                  Email:
Atlanta, GA 30360                    William Howell, C.S.C.P.               Fax: 404-420-8823
                                                                                                                 Dinner Meeting Reservation
Phone: 770-757-4222                  CAT Switichgear Supply Chain Mgt.      E-mail:
E-mail:    Alpharetta, GA
                                                                            Director/Newsletter-Webmaster        Web site:
                                     phone: 404-319-4423
Treasurer                            E-mail:
                                                                            Penelope M. Murphy, C.P.M., A.P.P.   E-mail:
Frank Kosakowski, C.P.S.M.; C.P.M.                                          Purchasing Manager                   OR
Emerson Climate Technologies -       Director / Career Development          City of Smyrna                       Raymond.padgett@stagparkway.
Solutions                            (ISM Employment Development            2800 King Street                     com
1308 Cobblestone Lane                Services)                              Smyrna, GA 30080
Woodstock, GA. 30189                 Thomas G. Alexander, C.P.M., CPIM      Phone: 678-631-5337
Phone: 678-784-2737                  The Clorox Company                     Fax: 770-431-2814
E-mail: frank.kosakowski@            3655 Brookside Parkway, Suite 300      E-mail:                         Alpharetta, GA 30022
                                     Phone: 678-893-8916

    Institute for Supply Management-Atlanta                                                     ISM-Atlanta Peach State Purchaser
                                                                                                February 2010 Edition
    c/o Frank Kosakowski                                                                        Editor / Webmaster
    1308 Cobblestone Lane                                                                       Penelope M. Murphy
    Woodstock GA 30189
                                                                 ISM—Atlanta, Inc.              Contributors
                                                                                                Penny Murphy, William Howell, Don
    The PEACH STATE PURCHASER is the official publication of the                                Sabbarese, David Pettit, John Wilkerson.
    Institute for Supply Management - Atlanta, Inc.
    ISM-Atlanta is an affiliate of the Institute for Supply Management                          Designer
                                                                                                Seth Brown Design
    (ISM) The PEACH STATE PURCHASER is published monthly and                          
    carries articles and notices regarding ISM-Atlanta activities.
                                                                                                Articles and Photos from ISM-Atlanta
                                                                                                members are welcome and will be con-
    All editorial notices for publication in the PEACH STATE                                    sidered for publication as appropriate and
    PURCHASER must be submitted to the editor by the third Monday                               as space permits. Submissions should
    of the month preceding publication.                                                         be in form of a word document or pdf file
    ISM-Atlanta cannot be held responsible for the content or                                   and should be sent to Penny Murphy at
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