November NAPM Meeting

Thursday, November 13, 2008

Salt Lake City Pro-D & Dinner Meeting

Location: Radisson Hotel, Downtown

215 W. South Temple, Salt Lake City, Utah

4:30 pm - Pro-D Workshop Speaker: Jen Colby, BS Sustainability Coordinator University of Utah Office of Sustainability

Topic: ―Green purchasing‖ progress and challenges, and learning from other professionals. Jan will be speaking about how the Office of Sustainability is working with the Univer-sity‘s purchasing department right now to develop a new, green purchasing policy. Co-presenter Kathy Ingleby, Senior Buyer for the University of Utah is leading the Univer-sity‘s green purchasing task force. 5:30 pm - Dinner Meeting Speaker: Vicki Bennett Director of the Office of Sustainability and the Environment Subject: Sustainability in the Workplace: ―Ways to make a difference while saving resources and money!"

Prior to her work for Salt Lake City, Bennett‘s background included implementing Environmental Management Systems for PacificCorp and international environmental consulting for a diverse group of industries. She holds a Bachelors degree in Chemistry from the Uni-

versity of California at San Diego and an Executive M.B.A. from the University of Utah. Wednesday, November 19, 2008 Central Utah Branch Luncheon 11:45 am—1:00 pm Location: La Quinta Inn, 1460 S. University Avenue, Provo, UT (exit 263) Speaker: Dr. Cynthia Wallin Topic: ―The Complexity Paradox‖ A look into product portfolio management strategies of six fortune 100 companies, best practices to control supply chain complexity linking product complexity to supply chain management complexity.

http://www.napmutah.org

November 2008 Utah Purchasing News

Dinner Menu

Radisson Hotel

Rolls and Butter

Green Salad

Oven Roasted

Herbed Chicken

Breast

Red Potatoes &

Seasonal Vegeta-

bles

Chef's Dessert of

the Day

Inside this Issue: NAPM Meeting 1-2

President’s 3 Message Term of Month 3

VP Corner 4

Economic 4-7 Outlook December 8 Social EdPAC 9-10 Workshop

Prior to joining the Office of Sustainability (OS), Jen Colby served as a program coordinator at the Lowell Bennion Community Ser-vice Center here at the University of Utah. She mentored the student group SEED (Sustainable Environments and Ecologi-cal Design) as they devel-oped the successful 2006-2007 Sustainable Campus Initiative, which led to the creation of the OS. Jen previously worked for the USDA Forest Service, first in public outreach, com-ment analysis, and rule-making as a member the Content Analysis Team, and then as Partnership

Coordinator for the Kamas Ranger District of the Wasatch-Cache Na-tional Forest. Her inter-ests include organiza-tional and leadership de-velopment, social change and human psychology, systems thinking, alterna-tive energy, and natural resource conservation and restoration.

Jen originally moved to Utah because of the out-standing outdoor recrea-tion opportunities in the Wasatch Mountains and nearby deserts. She spent several years alter-nating seasons between winters in Alta, Utah as

an innkeeper and sum-mers as logistics manager for the Colorado Outward Bound School in Marble, CO. An avid skier and hiker, Jen nonetheless finds herself now spending most of her free time en-joying urban Salt Lake City living. She is passionate about organic gardening, cooking, and historic pres-ervation. She and her hus-band are slowly working on a "green" remodel and re-landscaping of their 1890s-era cottage near the University of Utah.

Pro-D Workshop (continued)

Page 2 Utah Purchasing Newsletter

Vicki brings

more than 25

years of experi-

ence working on

environmental

issues to the

new position.

After a nationwide search, Mayor Ralph Becker an-nounced today that Vicki Bennett has been ap-pointed the new Director of the Office of Sustainability and the Environment. Ben-nett was the unanimous choice of a selection com-mittee comprised of com-munity members and city e m p l o y e e s . Bennett has been serving as Salt Lake City‘s Envi-ronmental Programs Man-ager since 2001. The se-lection committee was im-pressed by Bennett‘s strong policy skills relating to a wide range of sustain-ability issues and her im-peccable reputation in the community. Her supervi-

sory experience and strong history of working in a municipal setting also made her the top choice. In making the announce-ment, Mayor Becker re-marked ―Salt Lake City is fortunate to have such an incredible resource in Vicki Bennett. She will bring the vision and experience we need to accomplish all of the plans for sustainability I addressed during my campaign for Mayor.‖ In accepting the new posi-tion, Bennett commented, ―I am looking forward to getting to work immedi-ately on Mayor Becker‘s 180-day plan for the envi-ronment. Our first task will

be to complete the meas-urement of the City‘s car-bon footprint according to the new Carbon Registry standards, and use the data to determine how each City department can best reduce its energy c o n s u m p t i o n . ‖ Bennett will be responsible for working on behalf of Salt Lake City to evaluate and integrate long-term economic, environmental and social considerations in City plans, actions, and expenditures. She will also work with organizations throughout the community to identify and pursue op-portunities to accelerate the adoption of sustainable practices.

Pro-D Dinner Meeting (continued)

Frequently Asked Questions of NAPM-UTAH

President’s Message

Page 3 Utah Purchasing Newsletter

Term of the Month

―...the ability to meet

current needs with-

out hindering the

ability to meet the

needs of future gen-

erations in terms of

economic, environ-

mental and social

challenges.‖

Sustainability & Social Responsibility

Did you get a chance to read the October edition of Inside SUPPLY MANAGE-MENT yet? Like many of you, my copy often gets buried as soon as it arrives but this month I quickly looked through it before it was lost in the stack! To my delight, I found the arti-cle ―Scorecards for Sus-tainability‖ on page 23-25, a timely topic locally and nationally. Ironically, the N A P M - U T A H b o a r d planned this same topic for our November meeting in Salt Lake City, where we‘ll hear from Vicki Bennett. Vicki and I worked to-gether at Salt Lake City for a number of years and she was recently appointed as

the Director of Sustain-ability for Salt Lake City. When I was thinking of a local expert that could speak on the topic, I im-mediately thought of her. The tough part was find-ing a piece of this huge topic that she could cover in 45 minutes! For those of us that are novice to the subject, the official definition of sus-tainability from the Insti-tute for Supply Manage-ment is ―the ability to meet current needs with-out hindering the ability to meet the needs of future generations in terms of economic, environmental and social challenges.‖ This was adopted by the ISM Board of Directors, May 2008.

Plan to attend in Novem-ber and hear from Ms. Bennett who brings years of education, experience and a true passion for this topic. Before the meeting, I challenge you to read the article I men-tioned in Inside SUPPLY MANAGEMENT and come to the NAPM-UTAH meeting in Novem-ber prepared to learn even more. Here‘s to Sustainability! Tracey K. Stevens, C.P.M., CPPB

NAPM-UTAH President

__________

A different Term of the Day is posted on the ISM home page

at www.ism.ws day—7 days a week

____________

BONDED STORAGE

Secure storage for product for which taxes, such as excise tax, may become due when product leaves storage, depending upon its destination. The ware-house owner guarantees to tax/tariff collecting agen-cies that product will not be released without pay-ment of any taxes due depending upon where the product is shipped.

VP Corner

Page 4 Utah Purchasing Newsletter

Mark your calendars for the second Thurs-day of each month for the NAPM-Utah Pro D and dinner meetings.

I realized recently that the word GREEN was not only one of the most popular buzz word for the year 2007 (heard that on the news) but this word is also coloring our world of supply management in many ways. One ex-ample is ―Green Cleaning‖. In a re-cent RFP I was involved in, I learned more about what GREEN means in the context of janitorial services. We explained it like this:

―Green Cleaning‖ promotes produc-tivity and health by improving in-door air quality and reducing expo-sures to harmful chemicals, aller-gens and contaminants. Cleaning and industrial related chemicals often contain agents associated with cancer, reproductive disor-ders, respiratory ailments, eye or skin irritation, and other health con-ditions. Some cleaning and indus-trial chemicals may have an ad-verse effect on drinking water, wastewater and storm water which impacts streams, rivers and lakes as well as plants and wildlife. Green Cleaning promotes the use of less toxic or non-toxic cleaners. The goal of the City is to have a

well managed, environmentally neutral janitorial operation. Green Cleaning, also known as Healthy and High Performing Cleaning (―HHPC‖), requires cleaning prac-tices that limit environmental haz-ards to building occupants as well as maintenance and janitorial staff.

In the RFP there were another 22 pages describing our ―Green Clean-ing Janitorial Standard‖ that went into more detail for the potential contrac-tors. I was pleased to find out that many of the companies responding to the RFP were already very familiar with green-cleaning requirements and standards and best of all it‘s my favorite color. Really! Jerilyn Midthun, C.P.M., A.P.P. NAPM-UTAH Vice President jerilyn.midthun@slcgov.com

Green Cleaning

promotes the use of

less toxic or non-

toxic cleaners

Mountain States Economic Outlook

Price gauge indicates significant infla-tionary pressures in the pipeline. For Immediate Release: Oct. 1,

2008 DENVER, CO– The Mountain States Business Conditions Index, a leading economic indicator from a survey of supply managers in the three-state region of Colorado, Utah, and Wyo-ming, showed surprising strength for September. However, the national financial crisis pushed the business confidence level to a record low. The Business Conditions Index for the region for September slipped to

ECONOMIC OUTLOOK FOR MOUNTAIN STATES PLUNGES AS THE REGION GROWS BUT WITH EXCESSIVE INFLATION-

ARY PRESSURES

September survey results at a

glance:

Business Conditions Index, a

leading economic indicator, rose above growth neutral.

New export orders, prime driver

of regional economy, dips for the month.

Economic outlook nosedives for

the month.

Page 5 Utah Purchasing Newsletter

Mountain States Economic Outlook (continued)

...recent weakness in the

U.S. economy, combined

with lower oil prices and

the international freeze in

credit, will bias the Fed

to reduce rates months

ahead if they make any

change.

56.3 from Augusts‘ 56.4 but re-mained well above growth neu-tral 50.0. The regional prices-paid index declined to 81.6 from 91.8 in August, a reading that indicates unacceptably high infla-tionary pressures in the pipe-line. ―Indirectly, businesses with strong ties to energy continue to e x p e r i e n c e h e a l t h y growth. Directly, growth in the region‘s large mining and natu-ral resources sector boosted the regional economy. We are just not detecting any significant fall-out from the national housing crisis and related financial ser-vices calamity,‖ Goss Institute for Economic Research CEO Ernie Goss said today. The Goss Institute conducts the monthly survey for Supply Man-agement Institutes in the three states comprising the Mountain States region. Goss previously conducted the survey for C r e i g h t o n U n i v e r s i t y (www.outlook-economic.org). Contrary to the national supply m a n a g e m e n t s u r v e y (www.ism.ws), the region‘s em-ployment index expanded to 54.7 from 51.8 in August. ―While the addition of jobs for the region is very positive, the gauge is well d o w n l a s t S e p t e m b e r ‘ s 70.0. Even in the Mountain States region, job growth has declined from the same period last year,‖ said Goss. Trade numbers weakened for September. New export orders were 54.4, down from 58.1 in August as imports plummeted to 4 4 . 0 f r o m A u g u s t s ‘ 58.4. ―Evidence from our survey, other regional surveys, and na-

tional data indicate that the global economy is slowing, with export growth waning even with a weak U.S. dollar. Furthermore, the very weak import index for September shows we are finally seeing some reaction to higher prices for imported goods, espe-cially oil,‖ said Goss. ―Pushed higher by elevated oil and commodity prices, the prices-paid index stood at an unaccepta-bly high 81.6 which was down from Augusts‘ 91.8. The gauge, which tracks the cost of raw mate-rials and supplies, has been an important constraint on Federal Reserve actions in the past few months. However, recent weak-ness in the U.S. economy, com-bined with lower oil prices and the international freeze in credit, will bias the Fed to reduce rates months ahead if they make any change. The Federal Reserve, while not reducing the target funds rate, has reduced the effec-tive funds rate significantly over the past month. Clearly, the Fed is more concerned with an eco-nomic slowdown than with exces-sive inflation,‖ said Goss. ―When the Federal Reserve‘s rate-setting committee meets again on Oct. 28-29, it cannot reduce the target funds rate due to the inflationary pressures in the pipe-line detected in regional and na-tional surveys of supply manag-ers, nor can it increase rates for fear of damaging an already weak economy. Due to excessive infla-tion in the pipeline and a global economic slowdown, I don‘t ex-pect a cut in the ‗target‘ funds rate until well into 2009. I do expect the Fed to continue their policy of pouring sufficient liquidity into the system to keep the ‗actual‖ or

Mountain States Economic Outlook (continued)

Page 6 Utah Purchasing Newsletter

‗effective‘ short- term rates very low through the final quarter of 2008,‖ said Goss. Looking ahead six months, sup-ply managers‘ economic opti-mism, captured by the confi-dence index, plunged to a record low of 28.8, down from last month‘s 50.8 and September of 2007‘s 60.0. ―Our September survey was taken last Friday and Monday of this week. Clearly, supply managers are expecting significant negative economic fallout from the continuing down-turn in housing prices, and the related financial crisis is nega-tively affecting the economic out-look six months out,‖ said Goss. Other components of October Business Conditions Index were new orders at 55.3, production at 56.0, inventories at 57.9 and delivery lead time at 57.8. The Institute for Supply Manage-

ment, formerly the Purchasing Management Association, has been formally surveying its membership since 1931 to gauge business conditions. The Goss Institute uses the same methodology as used in that national survey. The overall index, referred to as the Business Conditions Index, ranges between 0 and 100. An index greater than 50 indicates an expansionary economy over the course of the next three to six months. The Creighton Economic Fore-casting Group conducted the monthly survey of supply man-agers in Colorado, Utah, and Wyoming since 1994 to pro-duce leading economic indica-tors of the Mountain States re-gion. The Goss Institute took over the survey in August of this year working with NAPM-Utah (www.napmutah.org) and

NAPM-Western Wyoming (http://www.ism.ws/sites/westwyoming/index.htm).

Colorado: The state‘s economy is a story of two economies, one with healthy growth and one characterized by economic weakness. The state‘s Business Conditions Index for September, based upon a survey of supply managers in the state, stood at a respectable 58.5. This leading economic indicator points to eco-nomic growth in the months ahead. Components of the over-all index for September were new orders at 58.2, production at 56.3, delivery lead time at 59.4, inventories at 61.2, and employ-ment at 57.3. ―Industries in the state with very healthy growth for the month include energy and energy-related firms and firms with significant international sales. Contrary to Utah, firms in the state‘s computer and elec-

Mountain States Economic Outlook (continued)

Page 7 Utah Purchasing Newsletter

tronic component manufacturing industry reported weak economic conditions for the month. Over the past year, Colorado‘s unem-ployment rate has risen by 1.6 percent. I expect the state‘s job-less rate to expand by another 0.4 percent by the end of the year,‖ said Goss.

Utah: Despite somewhat nega-tive current government data for the state, the leading economic indicator from our monthly survey of supply managers in the state points to expanding economic conditions in the state for the final quarter of 2008. Based on the September survey of the mem-b e r s h i p o f N A P M - U t a h (www.napmutah.org), the state‘s Business Conditions Index rose to 54.2 from Augusts‘ weak 52.8. However, this reading was well down from last year‘s Sep-tember reading of 63.8. Compo-nents of the overall index for Sep-tember were new orders at 54.9, production at 53.5, delivery lead time at 54.6, inventories at 52.3 and employment at 55.6. ―Supply managers‘ in transportation equipment and parts manufactur-ing and linked to this industry re-ported pullbacks in economic ac-tivity. Firms in the state‘s tele-communications sector have like-wise detailed slower economic growth compared to earlier in the year. On the other hand, com-puter and electronic component manufacturers reported healthy economic conditions for the month. Despite healthy readings for most components of the sur-vey, I expect Utah‘s jobless rate

to increase by another 0.5 percent by the end of the year,‖ said Goss. Wyoming: Supported by NAPM-W estern W yom ing ( h t tp : / /www.ism.ws/sites/westwyoming/index.htm), the September survey of supply managers in the state indicates that the state is growing at a brisk pace and will likely con-tinue to expand in the months ahead. The state‘s Business Con-ditions Index, a leading economic indicator, bounced to 75.2 from Augusts‘ 66.1. Growth in the state is being supported by a rapidly expanding energy sector. Compo-nents of the overall index for Sep-tember were new orders at 62.5, production at 80.0, delivery lead time at 83.4, inventories at 91.7, a n d e m p l o y m e n t a t 58.4. ―Employment growth in the state has been restrained by the lack of new entrants to the state‘s workforce. Likewise, a lack of af-fordable housing remains an im-p e d im e n t t o t h e s t a t e ‘ s growth. The global economic slowdown with lower oil and com-

modity prices will m ean som ewh a t slower but positive growth for the state‘s economy in the near term. I expect the state‘s unemployment

rate to grow by another 0.2 percent by the end of the year,‖ said Goss. For historical data and forecasts, visit our website at: www.ernestgoss.com or www.outlook-economic.org

NAPM-UTAH Board Tracey Stevens, President Jerilyn Midthun, Vice President Lori Peterson, Secretary Blaine Moon, Treasurer Santos Ontiveros, Coordinator Julia Tumanuvao, Past President Mike Bernard Cody Branz Dan Darrington Dave Schofield Tiffany Sorensen Gerald Tramposh Aaron Cameron, Communication John Carpenter, Certification Steven Cherecwich, Web Master Claudine Peterson, MemberRoster Douglas Simons, Education Debbie Smith, Newsletter David Stokes, Membership

We are on the Web!www.napmutah.org

If you wish to contribute an article or items of interest, please submit material to D e b b i e S m i t h a t dlsmith@graniteschools.org

Page 7

NAPM-UTAH December Social to be held at Gallivan Plaza

Thursday, December 11, 2008 at 6:30 p.m.

Page 8 Utah Purchasing Newsletter

W e have a great event planned at an indoor room on the Gallivan Plaza. The room has large tall windows that look out to the Christ-mas lights and ice skating rink.

The plaza is decorated with big snowflakes, wreaths and has a Christmas tree. Joe Morley‘s will cater dinner and the "Dunn Family‖ will perform in their old turn of the century costumes. Dress is warm and casual. Skating is available at a cost of $7.00/person that includes skate rental, if you want to participate at any time during the evening,

You can register for the event at our November meeting. Cost is only $10 per person (member plus one guest.)

(Any extra guests are $15 per person)

Those that sign up and pay at the November meeting will be included in several drawings for free skating passes!

Skating is available at a

cost of $7.00/person that

includes skate rental

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Fill out this form and bring it with you to the November meeting or RSVP to jerilyn.midthun@slcgov.com

December Social – Event Reservation

Member Name: _______________________ $10 (check attached) ❑ Will pay at the door ❑

Guest Name: _________________________ $10 (check attached) ❑ Will pay at the door ❑

Additional Guests:

____________________________________ $15 (check attached) ❑ Will pay at the door ❑

____________________________________ $15 (check attached) ❑ Will pay at the door ❑

____________________________________ $15 (check attached) ❑ Will pay at the door ❑

____________________________________ $15 (check attached) ❑ Will pay at the door ❑

Dinner Menu *Joe's Famous BBQ main dishes * Mild Steamed Onions * Roll & Butter * Smokey Joe‘s Baked Beans * Home Style Potato Salad * Creamy Cole Slaw * Mud Pie! (with whipped cream & hot fudge) * Coke & Pepsi products