January NAPM Meeting

Thursday, January 13, 2011 Salt Lake City Pro-D & Dinner Location: Hilton Garden Inn 250 West 600 South, Salt Lake City 4:30 p.m.—Pro D Workshop Speaker: Bob Pfluegar Client Executive at Marsh

Topic: “Insurance” 5:30 p.m.—Dinner Meeting

Speaker: Dina Hanna

Vice President at ARUP Topic: ―HIPPA & HITECH” RSVP due Monday, January 10, 2011 by 5:00 p.m. through Cvent

Wednesday, January 19, 2011 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: Mark H. Hansen, Ph.D. Marriott School of Management, Brigham Young University Topic: “Applying Bayesian Thinking to Managerial Decision Making” RSVP due Monday, January 10, 2011by 5:00 p.m. through Cvent Or directly to Steve Mastin: smastin@advancedmd.com by Monday January 17, 2011, 5:00 p.m.

NAPM Meeting 1

President’s Message

2

Utah County News

3

Speaker Bios 4-5

Mountain States Economy

6-9

News from the Board

10-

11

Board of Directors 10

http://www.napmutah.org

January 2011 Utah Purchasing News

Welcome to a New Year. Thank you very much to Susan Fowler for her work on the Christmas Party. It was a fun evening. We are pleased to an-nounce that the name change for our NAPM-Utah chapter of ISM has been approved to be considered by the Nation Board of di-rectors in January 2011. The proposed name is: ISM-Utah. A big thank you to Mike Bernard and Jerilyn Midthun for all their work. As soon as we receive no-tification of the approval by the Board, we will change all the logo information and name on our accounts etc.

President’s Message

Page 2 Purchasing Newsletter

Our Affiliate meeting is scheduled:

· Thursday, January 13, 2011.

· The Hilton Garden Inn at 250 West 600 South in SLC.

· 4:30 PM for the Pro D · 5:45 PM for the din-

ner meeting Let’s have a great 2011. The

economy may be improving

so our negotiation skills and

contract writing expertise is

greatly needed by our re-

spective companies.

David B. Stokes, C.P.M. President NAPM-UT

Page 3 Utah Purchasing Newsletter

Utah County News

Make 2011 Even Better

As we begin a new year, it is time to make sure our files

are up to date. It is a good time to review your contract

files to make sure they are current, and that the con-

tracts are fully executed. Take the time to reflect on

what worked, what did not, and how that will help you

the coming year. Set some goals on what you want to

accomplish this next year.

Now is a good time to reach out to department manag-

ers to see how you can help them. They have possibly

just completed the budget cycle so it is fresh in their

minds. Now is an opportunity to help with some strategic

sourcing projects. Start to work out project timelines

with the managers, help them to meet their budgets, help

them do more with less. Be proactive; reach out to de-

partment managers even if they do not have any projects

for your department to work on. At least they will know

that you have an interest in helping them achieve their

goals.

Have a Happy New Year. Make 2011 better than all the

rest.

Steve Mastin, C.P.M.

NAPM-Utah

Utah County Coordinator

Pro-D Speaker: Robert N. Pfluegar

Senior Vice President, Client Executive at MArsh

Page 4 Purchasing Newsletter

Ms Hannah is a Vice President at ARUP with more than 20 years of laboratory experience. She is responsible for en-suring regulatory and privacy compliance for ARUP. Prior to her position in Quality and Compliance Ms. Hannah worked in the Blood Bank, Donor Center. And the Univer-sity of Utah Clinical Laboratory at ARUP. A certified information privacy professional, Ms. Hannah has a BS in medical technology and an MS in Business admini-stration, with an emphasis in health care manage-ment. Ms. Hannah is an avid cyclist, most recently tak-ing 1st place in her age group for women at the 2010 LOTOJA. LOTOJA is short for LOgan TO JAckson, is believed to be one of the longest single-day road cy-

cling races in North America.

Robert (Bob) is a Client Executive (Team Leader). His primary responsibility is the

initial evaluation of clients’ business objectives and the major risks that pose a sub-

stantive threat to achieving them. Secondarily, he leads and coordinates the work

of specialized Marsh advisors and the support staff assigned to specific risk evalua-

tion and insurance placement. Third, Bob has a unique skill in negotiating with un-

derwriters to obtain robust coverage terms and competitive pricing.

Bob’s experience is in main stream Manufacturing, Alternative Power, Environ-

mental Liability and Life Science business risks.

Bob joined Marsh in 1987. After three years in the Salt Lake City office, Bob trans-

ferred to the Pittsburgh office where he was immersed in large middle market

risks. The next seven years of brokerage prepared him for his return to Utah to

serve in his current team leadership responsibilities. Bob earned a Bachelor of Science in Finance, a minor in Accounting at the Brigham

Young University, Marriott School of Management. His affiliations include: Institute

of Management Accountants, Utah Manufacturing Association and the Boy Scouts

of America.

Dinner Speaker: Dina Hanna,

MBA/HCM, BS, MT(ASCP) H,SBB, CIPP

VP, Director of Quality, Complianc/Privacy and Risk Officer

at ARUP Laboratories

Page 5 Utah Purchasing Newsletter

Utah County Speaker: Mark H. Hansen, Ph.D.

Department of Organizational Leadership & Strategy

Marriott School of Management,

Brigham Young University

Mark joined the faculty of the Marriott School in the fall of

1996. His research interests include strategic alliances, the

role of trust in organizational relationships, executive decision-

making effectiveness, and the use of Bayesian statistics in deci-

sion-making and management research. Many of his research

projects have been focused on the food and agribusiness industry. He teaches strat-

egy in the undergraduate, graduate, and executive programs of the Marriott School

of Management. He also teaches managerial economics and agribusiness strategy.

Mark is a member of the Academy of Management, the Strategic Management Soci-

ety, and the International Food and Agribusiness Management Association.

Mark earned his Ph.D. in strategic management at Texas A&M University.

He holds Bachelor’s and Master’s degrees in Accountancy and an MBA from Brigham

Young University. Prior to his doctoral studies, Mark worked at Ford Motor Com-

pany as a financial analyst. He has also worked at Arthur Andersen & Co. as a tax

intern. Mark has been involved in several small businesses over the years as an

owner and manager. He has provided consulting and training services to large and

small businesses on a variety of strategic topics.

Mark and his wife, Pamela, have five children. They live in Orem, Utah

where they enjoy a variety of family activities in the outdoors. Their family has been

involved in athletic and music activities with the children. Mark has coached youth

soccer and basketball. His greatest joys in life are derived from relationships with

family and friends.

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

Mountain States Economy

Page 6 Purchasing Newsletter

Mountain States Leading Economic Indicator Advances;

New Export Orders Strong for November

November survey results at a glance:

· Leading economic indicator slips again pointing to slow but posi-

tive growth in the months ahead.

· Supply managers expect producer prices to grow by an annual-

ized rate of 6.8 percent in the months ahead.

· Business confidence remains strong.

For Immediate Release: December 1, 2010

Denver, CO – For the fourteenth straight month, the overall index

for the Mountain States region, a leading economic indicator for the three

-state area of Colorado, Utah and Wyoming, advanced above growth

neutral 50.0. According to surveys of supply managers over the past sev-

eral months, including November’s, the region will experience positive,

but modest economic growth in the months ahead.

Overall Index: The overall index, or Business Conditions Index,

for November climbed to 56.0 from 55.4 in October. “Even though the

leading economic indicator has been above growth neutral for some time,

growth has been, and will continue to be modest. While our survey is

dominated by manufacturers, it is the value added services producers that

are reporting much improved business conditions. Both durable and non-

durable goods producers in the region continue to expand production

with little or no growth in hiring. I do expect a turnaround in manufac-

turing hiring over the course of the next several months,” said Goss Insti-

tute for Economic Research Director Dr. Ernie Goss said today. The

Goss Institute conducts the monthly survey for Supply Management In-

stitutes in the three states comprising the Mountain States region. Goss

also directs Creighton University’s Economic Forecasting Group and is

“Even though

the leading

economic

indicator has

been above

growth neutral

for some time,

growth has been,

and will

continue to be

modest...

Page 7 Utah Purchasing Newsletter

Mountain States Economy (continued)

the Jack A. MacAllister Chair

in Regional Economics

(http://www.ernestgoss.com/

aboutus.html).

Employment: The

November employment index

slipped to 57.2 from Octo-

ber’s 57.9 and from Septem-

ber’s 60.2. “Sub-par job

growth in the region has

matched that of the nation for

2010. Companies in the re-

gion have expanded their pro-

duction while adding few jobs

as they get more and more

output from their current

workforce. Furthermore,

companies that have added

significant new workers have

relied on temporary workers

for the increase,” said Goss.

Wholesale

Prices: The regional price

gauge expanded to an infla-

tionary 67.8 from 66.7 in Oc-

tober. The prices-paid index,

which tracks the cost of raw

materials and supplies, has

now moved above growth neu-

tral in seventeen of the past

eighteen months. “This month

we asked supply managers how

much they expect prices on prod-

ucts they buy to change in the

next six months. On an annual-

ized basis, supply managers an-

ticipate a 6.8 percent increase in

prices. This is up from 4.8 per-

cent in July of this year when we

asked this same question. I ex-

pect this increase at the producer

level to bolster consumer prices

well above the Federal Reserve’s

target rate of 2.0 percent some-

time in 2011,” said Goss.

Business Confi-

dence: Looking ahead six

months, economic optimism,

captured by the November confi-

dence index, advanced to 62.9

from October’s 62.5 and Sep-

tember’s 59.8. “While the over-

all U.S. economy remains weak,

as gauged by unemployment

rates, individual firms in the

Mountain States region are ex-

periencing solid improvements

in business conditions. This is

translating into a strong eco-

nomic outlook,” reported Goss.

Inventories: Supply

managers in the three-state re-

gion added to inventories of

raw materials and supplies for

the month, but at a much

slower pace with a November

index of 51.1 from October’s

50.5. “This is the twelfth

straight month that we have

recorded inventory restocking

after more than one year of in-

ventory reductions during the

economic downturn,” said

Goss.

Trade: Trade numbers

were healthy for Novem-

ber. The new export orders

index slipped to a still healthy

60.1 from 60.8 in Octo-

ber. Imports for November

dipped to 56.3 from October’s

65.7. Approximately 23 per-

cent of supply managers report

increased buying from abroad

over the past three

months, while only 5.6

percent indicated that

their international buy-

ing had declined over

this same time pe-

riod. “Strength in the

region’s energy sector

is spilling over into the

rest of the area econ-

omy. Unless the debt

problems of Portugal,

Ireland and Spain spill

over into the rest of the

Euro Zone, I expect

strong energy income

to continue to push the

Mountain States econ-

omy forward. How-

ever, any economic

contagion that strikes

Germany and France

would weaken the

Euro, strengthen the

dollar, and negatively

impact U.S. energy

commodity prices and

Mountain States

growth,” stated Goss.

Other Compo-

nents: Other compo-

nents of the November

Business Conditions In-

dex were new orders at

59.0, up from 56.0 in

October; production or

sales at 54.7, down

slightly from 55.6; and

delivery lead time at

57.8, up from 56.9 in

October.

The Institute for

Supply Management,

formerly the Purchasing

Management Associa-

tion, has been formally

surveying its member-

ship 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 Condi-

tions Index, ranges be-

tween 0 and 100. An

index greater than 50

indicates an expansion-

ary economy over the

course of the next three

to six months. The

overall index is a mathe-

matical average of new

orders, production or

sales, employment, in-

ventories and delivery

lead time.

The Creighton

Economic Forecasting

Group has conducted the

monthly survey of sup-

ply managers in Colo-

rado, Utah, and Wyo-

ming since 1994 to pro-

duce leading economic

indicators of the Moun-

tain States region. 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/

Mountain States Economy (continued)

Page 8 Purchasing Newsletter

For more Information Contact:

Ernie Goss Ph.D. (303) 226-5882

ernieg@creighton.edu www.ernestgoss.com

Rob Robinson (402) 312-4636

info@ernestgoss,com

westwyoming/index.htm).

Colorado: The state’s leading economic indicator, based on a monthly survey of supply

managers in the state, bounced higher for November. The November overall index, termed the Business

Conditions Index, increased to 53.7 from 53.3 in October. Components of the overall index for November

were new orders at 63.3, production or sales at 46.7, delivery lead time at 50.7, inventories at 42.8, and em-

ployment at 64.8. “Firms in the state linked to the energy sector continue to experience very healthy growth

offsetting somewhat weaker conditions among the state’s durable goods producers. Many of the added

workers over the past several months are temporary. I expect more and more permanent hires in the months

ahead,” 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 climbed to 56.1 from 56.0 in October. Components of the overall

index for November were new orders at 56.4, production or sales at 56.5, delivery lead time at 59.9, inven-

tories at 54.3, and employment at 53.8. “Durable goods manufacturers in the state outperformed non-

durable goods producers over the past several months. Firms with linkages to the energy sector continue to

experience healthy growth and growth prospects,” said Goss.

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

climbed above growth neutral for the thirteenth straight month. The Wyoming Business Conditions Index

for November advanced to 54.4 from October’s 52.2. Supported by NAPM-Western Wyoming (http://

www.ism.ws/sites/westwyoming/index.htm), surveys over the past several months point to an expanding

state economy for the next three to six months. Components of the overall index for November were new

orders at 66.7, production or sales at 49.9, delivery lead time at 46.9, inventories at 51.1, and employment at

63.1. “Expansions among firms with ties to the state’s large energy sector continue to experience very

healthy growth. Wyoming’s durable goods producers also detailed solid business conditions for the

month,” said Goss.

For historical data and forecasts, visit our website at:

www.ernestgoss.com or

www.outlook-economic.com

www.twitter.com/erniegoss

PagUtah Purchasing Newsletter Page 9

Mountain States Economy (continued)

News From The Board

Page 10 Purchasing Newsletter

We appreciate all those who came to the Christmas Party.

We had about 52 members and guests come. This included 6

who subbed at the last minute for those who could not make it.

For those who could not make it we are so sorry you missed it.

This was truly one of the most fun parties we have had. Hunt

Mysteries did a fabulous job. I guess I paid attention this time, I actually figured out

“who done it?”. There were multiple persons with the correct

answer. All those with the correct answer were put into a hat

and 3 were drawn for the prizes. I want to thank Dave Stokes and the entire board for

funding this activity.

On another topic, for anyone who has earned the

C.P.M. or C.P.S.M. attending our monthly meetings is the perfect

way to earn the necessary points to renew your certifications.

It is the primary reason I have attended so faithfully for the past

9 years. You can earn 10-12 points every year just for attending. If you

choose to volunteer for a leadership position or on a commit-

tee you can earn extra points for that. I guess bottom line is,

attending monthly meetings keeps purchasing professionals at

the top of their game and ready for certification renewals. I encourage all of you to invite those in your companies

to join with us soon.

Susan Fowler, C.P.M.

NAPM-UT Board Member

Social Chairman

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

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

News From The Board, Continued

Page 11 Purchasing Newsletter

Claudine Peterson, C.P.M.

NAPM-UT Board Member

Membership

Clean house—Time to update!

With the Old Year ending and a New Year beginning it is a great time to make sure you are updated in the ISM/NAPM system. Please send any updates, e-mail changes or phone # changes to peter-soncd@ldschurch.org or IversonTD@ldschurch.org. If you have any feed back for the membership com-mittee please e-mail us at the above address. We want to start the New Year right and make you all feel welcome.