October NAPM Meeting

Thursday, October 14, 2010 Salt Lake City Pro-D & Dinner Location: (Note Change for this month only) Downtown Hilton 255 South West Temple, Salt Lake City 4:30 p.m.—Pro D Workshop Speaker: Julie McAdams University of Utah

Topic: “Negotiations Training Part I”

5:30 p.m.—Dinner Meeting Speaker: Julie McAdams University of Utah

Topic: “Negotiations Training Part II” RSVP on Cvent by Thursday, October 7, 2010 at 6:00 p.m.

Wednesday, October 20, 2010 Central Utah Branch Luncheon Location: La Quinta Inn 1460 S University Avenue (exit 263) Provo, Utah 11:45 A.M. – 12:45 P.M.

Speaker: Cynthia Wallin Brigham Young University Topic: “Is Trustworthy Behavior Profitable for Small Firms?” RSVP on Cvent by Thursday, October 7, 2010 at 6:00 p.m., Or directly to Steve Mastin at smastin@advancedmd.com by October 18th.

NAPM Meeting 1

President’s Message

2

Central Utah Branch News

3

Speaker Bios 4

Jokes 5

Board of Direc-tors

5

Michael Asner-Workshop, Agenda and Registration

6-8

Mountian States Economy

9-11

http://www.napmutah.org

October 2010 Utah Purchasing News

Thank you for your atten-

dance at our meeting in Sep-

tember. Dr. Ernie Goss is

a classic economist. His

incite was very enlight-

ening about the econ-

omy and what we can

look forward to.

Our meeting this month

will be on October 14,

2010 at the Down Town

Hilton. We changed our original

plans and were not able to

schedule our meeting at the

Hilton Garden Inn because

they had scheduled it for

someone else.

The November Meeting will

be a luncheon and plant

tour at OC Tanner and will

be on Wednesday, November

10, 2010.

The Pro-D (4:30 PM) and the

Dinner meeting (5:45 PM) for

October will be at the

President’s Message

Page 2 Purchasing Newsletter

Down Town Hilton (255

South West Temple)

The all day seminar on Fri-

day will be at the Down

Town Hilton also. Michael

Asner will give us a great

training session on the RFP

process, challenges and

resolutions. Please sign up

for the workshop and if you

attend, you will earn 7 CEH

for your re-certification and

you will become more pro-

ficient in finding the right

vendor for your require-

ments and specifications.

Review the outline and de-

tails in this Newsletter.

See you on Thursday, Octo-

ber 14th and

Friday the

15th .

David Stokes,

C.P.M.

President, NAPM-Utah

Page 3 Utah Purchasing Newsletter

Central Utah Branch News

Negotiations Part 2

There are basically three kinds of negotiation tools that work. Which tool you use depends upon the research you do. One of those tools is the Rapport Tool. This tool is all about trust, friend-ship, integrity, goodwill, and credibility. If both parties are somewhat compatible, this I find leads to better agreements. It is all about being on the “same page”. It is easier to negotiate if there is a level of trust and credibility. Don’t let friendship influence your negotiation tactics. Stick to your plan. Your negotiations will not suffer if you stick to your plan. Don’t be too cooperative, do your research, know your wants and needs. Another tool is the Organizational Tool. Know who makes the decisions with both companies. You will have to get your counterpart to get the “Yes” decision from his team. Get commitments from the members of your team regarding the product and the reasonable position your com-pany is taking. You may in fact have to negotiate with your own team, to make sure that realistic negotiation points are addressed. You have to satisfy the demands of management, engineering, production, and sales. Be effective. Use your cross functional team to establish your negotiation strategy. Keep them informed. If negotiations are not going well, you can always stop the negotiations and say you have to go back to your team. This sometimes causes the other side to rethink their position. The last tool is the Personal Tool. Sometimes it is something more than the dollars and cents of the negotiation. It could be that one of the parties is going on a vacation for two weeks next week. Maybe surgery for one, or you have to be home at a certain time. Maybe you or your counterparts have more on their plate than the other. All of these things can and will influence your negotiations.

Negotiation is not just sitting down at a table. It is more in depth than

that. It is getting to know your counterpart. Get to know their organiza-

tion, build a rapport with them, and identify the personal issues that might

influence the negotiation process. Even body language

will tell you a lot; use it to your advantage.

Steve Mastin, C.P.M.

Central Utah Branch Director

NAPM-UT

Use the right tool...

Page 4 Purchasing Newsletter

Julie McAdams is an attorney in the University of Utah’s Office of Gen-

eral Counsel where she advises the University and business entities in

which the University has an interest regarding business transactions,

corporate governance matters, protection of University-owned intel-

lectual property, and copyright matters. Julie graduated from Columbia Law School in 2002 and is a member of

the Utah and New York State Bar Associations. She was an associate at

Baker & McKenzie in New York City where her practice focused on

corporate governance matters and representation of publicly held com-

panies in connection with reporting and compliance issues under fed-

eral securities laws. In 2007, she worked as a law clerk for the Honorable Chief Justice

Christine M. Durham of the Utah Supreme Court. Julie also has signifi-

cant experience as a community mediator and is on the mediator ros-

ter for the State of Utah. Julie instructed the Mediation Clinic as an ad-

junct professor at Columbia Law School in 2006 and the Lawyering

Skills course at the S. J. Quinney School of Law at the University of Utah

in 2007 and 2008, which focuses on the skills required for counseling

clients in legal matters and negotiating on a client’s behalf.

Lunch Speaker—Cynthia Wallin, PhD

Pro-D and Dinner Speaker— Julie McAdams

Mark your calendars for the 2nd Thursday or 3rd Wednesday of each month for the NAPM-Utah Pro D and dinner or luncheon meetings.

Cynthia Wallin (Ph.D., Arizona State University) is

an Assistant Professor of Global Supply Chain

Management in the Marriott School of Manage-

ment, Brigham Young University. Her research fo-

cuses on buyer-supplier relationships, including

information sharing, collaboration, and trust. She

has also studied inventory management approaches and deci-

sion-making. Her research has appeared in several journals, in-

cluding the Journal of Supply Chain Management, the Journal of

Business Logistics, and Quality Management Journal. Her industry

background includes positions as senior buyer, purchasing man-

ager, stores manager, and commodity manager.

If you wish to contribute an article, or items of interest, please submit material to Mary Louise Hughes at mlhughes@purchasing.utah.edu

Page 5 Utah Purchasing Newsletter

Purchasing Newsletter

NAPM-UTAH Board David B. Stokes President Anna Worthington, Vice President Toni Johnson, Secretary Garth Slater, Treasurer Steve Mastin, Central Utah Branch Director Jerilyn K. Midthun, Past President Board Members: Donna Beaupre Robert Stipanovich Mary Louise Hughes Claudine Peterson Chad Barrett Susan Fowler Greg Adams, Communication John Carpenter, Certification Steven Cherecwich, Web Master Claudine Peterson, MemberRoster Edith Rodriguez, Education Mary Louise Hughes, Newsletter

Economist Jokes

We are on the Web!www.napmutah.org

If you wish to contribute an article, or items of interest, please submit material to Mary Louise Hughes at mlhughes@purchasing.utah.edu

(In honor of our very informative and entertaining

speaker last month, Ernie Goss.)

Economists have predicted 9 of the

last 5 recessions.

Three economists went on a hunting trip together. At long last, they spotted a buck and the first economist took his shot. He was a yard wide to the right. The second economist took his shot which was a yard wide to the left. The third economist took no shot, but enthusiastically exclaimed, “We got it!” “Predictions are tricky, especially when you are talking about the fu-

ture.” -Yogi Berra

“A Study of economics usually reveals that the best time to buy anything was last year.” -Marty Allen

An economist is someone who gets rich explaining to others why

they are poor. The first law of economics : For every economist there is an equal and opposite economist. The second law of economics: They are both wrong. If an economist and an IRA agent were both drowning and you could only save one of them...would you go to lunch or read the paper?

Page 6 Purchasing Newsletter

NAPM-Utah Members REGISTER TODAY & SAVE THE DATE!

CURRENT TRENDS in PROCUREMENT & RFP PROCESS WORKSHOP 2010

Current Trends and Topics will include: Ethics in Procurement, Current Trends in Procurement &

RFP Processes, Bullet-Proofing your RFP’s, Solving RFP Problems

Sponsored by:

ISM Materials Management Group

And

NAPM-Utah, Inc.

Date: October 15, 2010

Time: 7:30 am to 4:30 pm

Location: Hilton Downtown, 255 So. West Temple Street, Salt Lake City, Utah

Fee: $299 for ISM Members and $399 for Non Members ($799 value) Discount: Receive a $50 discount if registration and payment are received by Sept. 30, 2010, OR when

3 or more from your organization register and pay at the same time.

Credit: Receive Certificate & 7 credit hours towards C.P.M. / CPSM Certification / recertification Free Training CDs: In addition to the standard handout materials, a free training CD will be given to

each attendee, a $195 value: RFPs and the Evaluation Process: Getting it Right!!, a

100-minute training CD. Can’t Attend: Manual Package w/CD $195 Members, $295 Non Members (does not include certificate

or credit hours)

SPEAKER

MICHAEL ASNER is recognized as one of North America’s leading

speakers, consultants, and authors dealing with public sector pro-

curement and the Request for Proposal process. His workshops are

very interesting, topical, and humorous. He helps public, private, and

government entities improve their RFP practices and documents. He

acts as an RFP Advisor or Fairness Officer on high visibility procure-

ments. He frequently assists lawyers in procurement cases. His cli-

ents include cities, counties and public agencies in Canada and the

U.S. (He also assists private sector firms by providing training and

consulting on selling to government and creating winning proposals.) He offers RFP training and workshops throughout North America. Over the last ten years more than 2000

members of Western States Contracting Alliance (WSCA), National Institute of Governmental Purchasing

(NIGP), National Association of Educational Buyers (NAEB), Purchasing Management Association of Canada,

and Ontario Public Buyers Association have heard him speak. Some of his favorite topics include Bullet-

Proofing Your RFPs, Solving RFP Problems, and A Briefing for Elected Officials about Ethical Public Procure-

ment. Michael has published extensively about the RFP Process. His textbook, The Request For Proposal Hand-

book, now in its fourth edition, is in use in more than 4000 organizations. Thousands of copies of his “Guide

to Public Procurement for Elected Officials and Public Sector Managers” have been distributed at procure-

ment conferences.

For more information about Michael go to his website: www.rfpmentor.com

Page 7 Utah Purchasing Newsletter

Current Trends in PROCUREMENT

& RFP PROCESS Workshop 2010

7:30 - 8:00 Registration, Continental Breakfast, Introduction

8:00 – 9:30 Ethics in Procurement

(Or How To Avoid the 6:00 p.m. News)

Role of senior management, elected officials

How to promote culture of ethical procurement, impact of guidelines and procedures

Use of ethics officers, policies, role of monitoring, reporting, and enforcement

Be the example, Code of Ethics, Be vigilant

9:30 – 9:45 Break, Snack

9:45 – 12:00 Neglected (But Important) RFP Practices – a selection of topics including:

Using best and final offers

Incorporating negotiations into the process

Adopting a non-numerical evaluation of cost

Including a draft contract in the RFP

Issuing a draft RFP

Using a Fairness Officer

Using risk as an evaluation factor

12:00 – 1:00 Lunch

1:00 -- 1:30 Solving RFP and Procurement Problems, A Six-Pack of Avoidable, Seemingly Difficult, Major RFP

Problems and Their Simple Solutions Three simple ways to get every proposal within your budget [as a solution] (Problem: When every

proposal is over budget) How to perform a risk analysis (Problem: All the proposals are mediocre and contain significant risks

of failing)

1:30 -- 2:30 Continued (Solving RFP and Procurement Problems) How to specify expertise in an objective, measurable way (Problem: You can’t tell if the key players

possess the critical skills needed for this project)

The critical elements of a project plan (Problem: You can’t tell if the project plan will actually work)

2:30 -- 2:45 Break, Snack

2:45 – 4:15 Continued (Solving RFP and Procurement Problems) How to contractually ensure that proposed people show up (Problem: You don’t know if the proposal

staff can do the job nor if they will show up) How to evaluate past performance (Problem: You don’t know how to evaluate the vendor’s past per-

formance or whether they are embellishing their record, misleading you, or simply writing fiction)

Discussion

4:15 -- 4:30 Summary and Evaluation, Certificates

Info about NAPM-Utah, ISM-MMG

Thanks for your participation!

Note: Workshop agenda may change slightly due to possible time restrictions

RSVP, Registration and Payment Form, see next page…

___________________________________________________________

Workshop Agenda

PROCUREMENT & RFP WORKSHOP 2010

____________________________________________________________

RSVP, Registration and Payment Form

Sponsored by:

ISM MATERIALS MANAGEMENT GROUP

And

NAPM-Utah, Inc.

Date: October 15, 2010

Time: 7:30 am to 4:30 pm

Location: Hilton Downtown, 255 So. West Temple Street, Salt Lake City, Utah

Fee: $299 for ISM Members and $399 for Non Members ($799 value)

Discount: Receive a $50 discount if registration and payment are received by Sept. 30, 2010, OR

when 3 or more from your organization register and pay at the same time.

Credit: Receive Certificate & 7 credit hours towards C.P.M. / CPSM Certification / recertification

Free Training CDs: In addition to the standard handout materials, a free training CD will be given to

each attendee, a $195 value: RFPs and the Evaluation Process: Getting it Right!!, a 100-minute training CD.

Can’t Attend: Manual Package w/CD $195 Members, $295 Non Members (does not include certificate or credit hours)

Name/Title: ________________________________________________ Company Name: ___________________________________________ Address: _________________________________________________

Phone #:__________________________________________________ Fax #:____________________________________________________

Email: ___________________________________________________ ISM Member Yes / No, ISM ID# (if known) _______________________ Quantities: Workshop_____ or Manual Package____ (will be mailed to you)

Pay with credit card: Card Type: Mastercard Visa AMEX Card # _____________________Exp Date ____/____ Amount $ ________

Name on Card: ____________________________________________ Authorized Signature: _______________________________________ Make check payable to NAPM-Utah, Inc. and send check to:

Salt Lake City Corporation

C/O Karl Harward, NAPM-Utah

PO Box 145455

Salt Lake City, Utah 84114-5455

(Or Fax registration form to 801.535.6618 to pay at the door)

NOTE: Discounts will not be given to those paying at the door.

Full payment must be received by Tuesday, October 12, 2010

Or Fax RSVP along with name and company info to pay at the door.

Questions may be directed to Karl Harward 801.535.6451 or by email: karl.harward@slcgov.com or by fax: 801.535-6618

Page 8 Purchasing Newsletter

Workshop registration

Mountain States Leading Economic Indicator Sinks:

Growth Likely to Slow

August survey results at a glance:

· Leading economic indicator points to slower growth in the months ahead but

no double-dip recession.

· Almost one-third of supply managers expect a 2011 recession.

· Price gauge indicates much higher likelihood of inflation than deflation.

· Business confidence declines for the month.

For Immediate Release: September 1, 2010

Denver, CO – For an eleventh straight month, the overall index for the Moun-

tain States region, a leading economic indicator for the three-state area, moved above

growth neutral 50.0. The overall index, or Business Conditions Index, for August

sank to 54.7 from July’s strong 58.6. This is the first significant pullback in the index

this year for Colorado, Utah and Wyoming and is mirroring what we are seeing in the

national economy.

“These results are very similar to what we recorded coming out of the 2001

recession. Of course the big difference is that tax cuts were passed in 2001 and 2003

to support the economy and, at this point in time, Americans are staring at a signifi-

cant tax increase on January 1, 2011. Even so, our surveys are pointing to slower

growth at this time, not a double dip recession,” Goss Institute for Economic Research

Director Dr. Ernie Goss said today. The Goss Institute conducts the monthly survey

for Supply Management Institutes in the three states comprising the Mountain States

region. Goss also directs Creighton University’s Economic Forecasting Group and is

the Jack A. MacAllister Chair in Regional Economics (http://www.ernestgoss.com/

aboutus.html).

The August employment index fell to 57.6 from 61.1 in July. “On an annual-

ized basis, the region has added jobs at a much stronger pace than the U.S. over the

past several months. Our surveys indicate that this gap will widen somewhat for the

rest of 2010 as U.S. job growth slows more dramatically than that for the Mountain

“Expansions

among the

state’s durable

goods

manufacturers

more than offset

somewhat

weaker

conditions in the

non-durable

goods sector.

Mountain States Economy

Utah Purchasing Newsletter Page 9

States region,” said Goss.

This month we asked supply managers their expectations for the 2011 U.S. economy. Almost one-

third, or 32 percent, said it was likely or very likely that the U.S. economy would move back into recessionary

territory in 2011. Only 8 percent indicated that a 2011 recession was unlikely, or very unlikely. The remain-

ing 60 percent indicated that there was a 50 percent chance of a 2011 recession.

The regional price gauge dipped slightly to a still inflationary 65.0 from 65.4 in July. The prices-paid

index, which tracks the cost of raw materials and supplies, has now moved above growth neutral in fourteen of

the past fifteen months. “Based on our survey results, as well as other surveys of supply managers, I still think

fears of deflation are way overblown. Once the economy gets fully back on track, inflation and price bubbles

will be the problem, not deflation,” said Goss.

Supply managers were asked their anticipations of price changes for their company’s products for

2011. Only eight percent expect price declines for 2011 while 58 percent expect price increases for 2011. The

remaining 34 percent expect level prices for 2011.

Looking ahead six months, economic optimism, captured by the August confidence index, slumped to

55.3 from 62.6 in July. “Even in the expanding Mountain States economy, supply managers’ economic out-

look is being negatively influenced by the less than optimistic national economic news,” said Goss.

Trade numbers deteriorated for August. The new export orders index declined to 51.5 from July’s

52.9. Imports for August sank to 55.0 from 60.1 in July. “Exports, particularly technology equipment, will be

an important factor that sustains a regional economic expansion. Thus these weaker numbers are of some con-

cern,” said Goss.

As another measure of somewhat weaker economic confidence, supply managers in the three-state re-

gion added to inventories of raw materials and supplies for the month at a slower pace. The August inventory

index sank to 55.3 from 67.4 in July. “This is the ninth straight month that we have recorded inventory re-

stocking after more than one year of inventory reductions. The growth in inventories has been a positive and

significant factor pushing the regional economy higher. However, we need to see an increase in the pace of

consumer buying before we can be assured that the economy will not dip back into a recession. Inventory

buildups are not the basis for sustained economic growth,” said Goss.

Other components of the August Business Conditions Index were new orders at 51.7, down from

July’s 53.3; production or sales at 54.0, down from 55.8; and delivery lead time at 54.9, down from 55.6 in

July.

The Institute for Supply Management, formerly the Purchasing Management Association, has been for-

mally surveying its membership since 1931 to gauge business conditions (www.ism.ws). The Goss Institute

uses the same methodology as the 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

Page 10 Purchasing Newsletter

course of the next three to six months.

The Creighton Economic Forecasting Group has conducted the monthly survey of supply managers in

Colorado, Utah, and Wyoming since 1994 to produce leading economic indicators of the Mountain States re-

gion. The Goss Institute assumed operation of the survey in August of 2008, working with NAPM-Utah

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

Colorado: For the eleventh straight month, the state’s leading economic indicator rose above

50.0. However, the August index, based upon a survey of supply managers in the state, is pointing to somewhat

slower growth in the months ahead with an August reading of 53.0, down from 56.2 in July and 68.4 in

June. Components of the overall index for August were new orders at 46.6, production or sales at 49.4, delivery

lead time at 58.9, inventories at 53.0, and employment at 57.1. “Colorado is not benefiting as much from the en-

ergy industry expansion as Utah and Wyoming. Computer and electronic component manufacturers in the state

continue to lose jobs even with a slight uptick in new orders. Manufacturers in the state are expanding output

without any new hiring as a result of productivity growth,” said Goss.

Utah: The state’s Business Conditions Index, a leading economic indicator, once again climbed above

growth neutral 50.0. Based on the monthly survey of the membership of NAPM-Utah (www.napmutah.org), the

overall index dipped to 54.8 from July’s 58.5. Components of the overall index for August were new orders at

53.7, production or sales at 59.5, delivery lead time at 54.9, inventories at 52.5, and employment at

53.4. “Expansions among the state’s durable goods manufacturers more than offset somewhat weaker conditions

in the non-durable goods sector. Heavy manufacturers are reporting improving new orders, employment and

hours worked by existing workers,” said Goss.

Wyoming: The state’s leading economic indicator from a survey of supply managers in the state climbed

above growth neutral for a tenth straight month. The Wyoming Business Conditions Index for August declined

slightly to still healthy 57.5 from 57.6 in July. Supported by NAPM-Western Wyoming (http://www.ism.ws/sites/

westwyoming/index.htm), surveys over the past several months indicate point to an expanding state economy for

the second half of 2010. Components of the overall index for August were new orders at 49.9, production or sales

at 49.2, delivery lead time at 66.9, inventories at 58.7, and employment at 63.3. “Manufacturers, both durable and

non-durable, are recording solid improvements in business activity. However, recent growth in the state’s energy

related industries has pushed overall growth higher. A cheap U.S. dollar, which supports higher energy commod-

ity prices, will be an important factor influencing Wyoming economic progress in the months ahead,” said Goss.

For historical data and forecasts, visit our website at:

www.ernestgoss.com or

www.outlook-economic.com

www.twitter.com/erniegoss

Utah Purchasing Newsletter Page 11