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WWW.SCMAMB.CA SUITE 200 - 5 DONALD ST. WINNIPEG, MB R3L 2T4 TEL: (204) 231-0965

SUPPLY CHAIN MANAGEMENT ASSOCIATION MANITOBA | JULY 2016

Streamlined Supply Chain Improves Performance for Manitoba Health Authority

Team-based Approach to Supply Chain ManagementPays Off for Winnipeg Firm

SCMA National Conference – Niagara Falls

2nd Annual SCMA Manitoba Business Conference

Upcoming Events

SCMA National Conference – Niagara FallsThe National Conference kicked off with a networking event at Queen

Victoria Place Restaurant overlooking beautiful Niagara Falls. Great food, and a live band, contributed to an enjoyable night for all who attended. The highlight of the night was when Niagara Parks lit up the falls in SCMA colors (Teal and Red) just prior to the fireworks that evening.

As usual, the conference had a slate of excellent keynote speakers. Memory expert Bob Gray opened the conference with fun keynote address punctuated with him wearing a tutu and silly hat. Linda Edgecombe’s high energy address shared her experiences as she walked the 800 mile Camino trail in Spain alone. And finally, Ron Buist (former Tim Hortons Executive) shared stories of his involvement in helping make Tim Hortons a marketing giant.

As with every conference, SCMA hands out its Awards of Distinction. This year’s recipient of the FSCMA Award was Larry Berglund. Larry has been involved with SCMA for many years as an advisor and instructor. Larry is one of the leaders in sustainable procurement and social responsibility. Telus is this year’s recipient of the SCMA Excellence Award.

The final highlight involved the 2017 SCMA National Conference Committee presentation. The host city for the 2017 Conference is Winnipeg, Manitoba. Peter Buscemi (Conference Chair) and Sandra Mukai (Conference Committee Member) did an amazing job of promoting the conference and Manitoba. The presentation also included a fun video courtesy of Tourism Winnipeg. To see the video, click on the link below.

Link: Visit Winnipeg, Manitoba Canada! Photos, from top right down: Larry Berglund, 2016 FSCMA Recipient; Peter Buscemi (Conference Chair) and Sandra Mukai (Conference Committee Member)

SCMA After Work RefresherSanta Lucia Pizza (4 St. Mary’s Road)

July 21, 2016-

M1 – Supply Chain ManagementCanadian Mennonite University

September 6, 2016-

M3 – Logistics and TransportationPrice Industries

September 6, 2016-

SMT-C1 – ProcurementCanadian Mennonite University

September 6, 2016-

M5 – Knowledge ManagementCanadian Mennonite University

September 8, 2016-

SMT-C2 – LogisticsCanadian Mennonite University

September 8, 2016-

SCMA MB Annual General MeetingWinnipeg Winter Club

September 28, 2016-

IW1 – Leadership and Professionalism Workshop

Winnipeg Winter ClubOctober 13-14, 2016

-SMT-S4 – NegotiationWinnipeg Winter Club

October 20-21, 2016

Register by clicking here.

You may also contact Rick Reid at the SCMA MB office for more information.

Jim Fraser, SCMP – 4 years at Procurement Services Branch, Manitoba Finance

Ian Seunarine – New Position as Director of Sales and Business Development at Duha Group

Daniel Wong, SCMP – 3 years at Pollard Banknote

Jeff Dyck – 3 years at Winnipeg Airports Authority

Scott Nicol, SCMP – New Position as Director, Materials at Standard Aero

Movers and ShakersCongratulations to the following members on their new positions or work anniversaries. SCMA Manitoba wishes each of them continued success in their roles.

Mowo Oduru – 1 year at Health Sciences Centre

Chuck Pelton – New position as Sourcing Manager at Motor Coach Industries

Gordon Krahn – 24 years at Standard Aero

Catherine Bo Quan – New position as Purchasing Consultant at the University of Manitoba

Shawn Rihal – New position as Business Analyst with Motor Coach Industries

Carla Brooker – 23 years at Manitoba Liquor and Lotteries

Karen Dyck – 15 years at Standard Aero

Karen Nyhof – 29 years at MTS

Kwinkel Patel – 1 year at Cormer Aerospace

Daniel Locke – 3 years at Manitoba Hydro

Lisa Timmers – New Position as Procurement Manager at the Canadian Museum for Human Rights

Ruth Sawatzky – New Position as Director of Contracts & Procurement, Diagnostic Services of Manitoba

WWW.SCMAMB.CA SUITE 200 - 5 DONALD ST. WINNIPEG, MB R3L 2T4 TEL: (204) 231-0965

Get Involved – Volunteer on a Committee!SCMA Manitoba is in the process of assembling volunteer committees to work on various projects in the upcoming year. Committees are a great way of getting members involved, achieving maintenance points and bringing value to membership by ensuring events and services are properly planned.

To discuss possibilities please contact Jay Anderson from 8:00am – 5:00pm at (204) 231-0236.

Negotiation Skills WorkshopCongratulations to all the participants who successfully completed the Negotiation Skills workshop this past May. Photo, left to right: Paul Meyerson, Stesha Dacayanan, Jhosselin Bakhat, Shontel Dutka, Shawn Rihal, Deanna De Jaeger, Adeola Igbelajobi, Marni Cranwill, and Nancy Li.

SCMA Manitoba held its second annual business conference this

past April. The conference took place at the Victoria Inn in their recently added Conference Centre. With over 100 supply chain professionals in attendance, the conference provided a great opportunity to learn and network.

The conference kicked off with an energetic presentation on “Change” by John Stinson, CEO of Manitoba Liquor and Lotteries. John spoke of the importance of creating the right culture to allow change to take place. He also shared some of the challenges he’s faced with the merger of Manitoba Liquor Control Commission and Manitoba Lotteries Corporation.

Keynote Speaker Gerry Price shared how the philosophy of “treating others as you would want to be treated” is the cornerstone of how Price Industries does business. He shared how Price’s success is built on integrity, respect, and a relentless drive to improve.

Pat Hirst and Darcie Fraser gave excellent presentations on Building Partnerships and Managing

Expectations. The presentations from Bryan Hay and Rob Elder were very informative as well.

The final presentation was an uplifting performance by former Blue Bomber Obby Khan. Obby’s story from football to entrepreneur is inspiring. However, it was a combination of humor and personality that made this presentation special.

The conference concluded with a cocktail party which provided everyone with the opportunity to network. Special thanks to conference sponsors Toledo Food Service, and Certified Angus Beef for making the event a success. SCMA Manitoba would also like to thank the Victoria Inn for providing a great venue for the conference. And finally, SCMA Manitoba would like to thank the 2016 Conference Committee for organizing this year’s event. Committee members included Sherry Scott Lemke (Co-Chair), Greg Melnichuk (Co-Chair), Mitch Rooney, Leah Flaten, and Jim Fraser. Their efforts helped make the 2016 SCMA Manitoba Business Conference a tremendous success.

Top to bottom: Guest speakers John Stinson, Gerry Price and Obby Khan at the April SCMA MB Conference

2nd Annual SCMA Manitoba Business Conference

WWW.SCMAMB.CA SUITE 200 - 5 DONALD ST. WINNIPEG, MB R3L 2T4 TEL: (204) 231-0965

Evelyn Hartwig has had a 30 year career in procurement which

began at Health Sciences Centre where she purchased capital equipment for the sterile processing area. When WRHA was created, Evelyn moved to Urban Shared Services as a Contract Specialist where she honed her skills in contracting specifically. During this time, the United Nations contracting subcommittee published recommendations for public sector competitive bidding which was her first exposure to the possibilities of a better way to tender.

The non-binding negotiated (NBN) model of competitive bid recommended as best practice

Retirement – Evelyn Hartwig of Diagnostic Services of Manitobamade sense to Evelyn but it wasn’t until she took a 5 year sojourn into the private sector that she was able to implement some of these recommendations. Evelyn spent 4 years at Boeing Canada setting up their Procurement department policies, processes and templates using some of the UN best practices.

In 2011, Evelyn was offered the job of Director of Contracts and Risk Management for Diagnostic Services Manitoba. DSM had not yet developed a procurement department, so it was the perfect time to adopt the UN best practices and develop policies, procedures and templates based on the NBN method of tendering under

General Law of Contracts. DSM has been successfully utilizing this process exclusively since 2012. Both stakeholders and suppliers are pleased with the method and DSM has recognized significant savings and efficiencies as a result.

Evelyn officially retired March 7, 2016 in order to enjoy more time with family and friends and the pursuit of her favorite leisure activities. However Evelyn is still providing Contracting Services to DSM on a consulting basis and will continue to be available to lend her expertise to other organizations who are interested in adopting the NBN best practices.

Beer & NachosThe SCMA Manitoba Beer

and Nachos event on March 23, 2016 brought our members together for a fun night of relaxed networking. Thanks to Ron Martin and the Membership Committee for setting up another great event at the Viscount Gort. With over 50 in attendance, the evening was a huge success highlighted by a presentation from Francis Eyamba. The event was also attended by a number of students currently enrolled in the Herzing Supply Chain Program. Students had the opportunity to interact with SCMA Manitoba members throughout the evening. Thank you to all members who assumed the role of SCMA MB Ambassadors and took the time to answer questions and provide advice to these students.

Streamlined Supply Chain Improves Performance for Manitoba Health AuthorityPersuading surgeons to recognize

the benefits of supply chain management in the operating room is no easy task. But Martin Montanti has done it.

As vice-president for corporate services at Southern Health-Santé Sud, one of Manitoba’s five regional health authorities, Mr. Montanti has overseen an ambitious project that aims to standardize not only supplies, but also procedures at several dozen hospitals, long-term care centres and other health-care facilities. “The most important thing that logistics and supply need to do today and in the future is to understand the value they add to the organization,” says Mr. Montanti. “They have evolved from being about the cost of an item into developing processes that improve how people do their jobs.”

This expanded role for supply chain management is especially important in the context of the drive by governments across the country to contain spiraling health-care costs.

A recent study by Western University indicated that many doctors have little idea of the cost of the items that they use. The authors asked ear, nose and throat specialists in London, Ont., and Montreal to estimate the prices of 23 common disposable items, such as syringes. More than two-thirds gave answers that were more than 50 per cent shy of the real cost.

Supply chain managers are thus in the forefront of helping doctors and hospital administrators question traditional processes and introduce new, cost-saving technologies.

Southern Health covers an area of more than 27,000 square kilometres. It serves 190,000 residents, including seven First Nations communities, and employs 5,600 people.

Mr. Montanti, who worked for a bakery and an aerospace company before moving to the health-care sec- tor, notes that “logistics and supply departments are not going to be the grand poobahs of the organization where you can wave your wand and everyone is going to watch you. You need to lead from behind.”

Manitoba’s standardization drive began even before Southern Health was created in mid-2012 through the merger of 11 health authorities into the current five regions.

“Everybody was doing their own purchasing, and everybody was purchasing their own items, often from different vendors,” Mr. Montanti says, citing 28 different gauze pads as an example. “The users never even talked to each other. They all did their own thing.”

The first step in bringing some order to the chaos was to set up “standard teams,” each covering a specific function, such as acute care

and operating rooms. Staff from the region’s various institutions were encouraged to come together and decide on standard products that would suit them all.

It wasn’t long before the conversa- tion turned from ordering gauze pads to the most efficient way of performing colonoscopies – and every other kind of medical procedure.

Mr. Montanti recalls that participants started to ask questions like: What scope (a flexible tube with a tiny camera at the end) is best suited for colonoscopies? Which techniques work best for each scope? Who should be present in the operating room? How many anesthetists are needed for an operation? And so on.

Using standard products has cut the surgical program’s cost of supplies by 30 per cent, Mr. Montanti says. He attributes much of the success to mutual trust. “If I were to call up those surgeons and say ‘I want you guys cutting patients all the same way,’ their response would be: ‘Who are you? Martin who?’”

But, he adds, “if we get together and I say “Hey, guys I want to get you items that really help you do successful surgeries and I need your help,’ then they’re in control. All I did was to create the environment for them to talk together. I didn’t create the demand, I filled the demand.”

Winnipeg-based Price Industries prides itself on being able to

supply commercial air distribution products to North America and beyond.

And that’s not all. While standard delivery time is three weeks, the 70-year-old privately held company offers a premium service that guarantees shipment of urgently needed products within two days across North America.

“That makes the supply chain –my job – very challenging because I can’t stock 100 per cent of everything that any customer might order,” says Kelly Singleton, Price’s purchasing manager. “We have many variations of products and offerings to suit each of our customer’s unique requirements. The goal is always to deliver the perfect order while providing exceptional customer service.”

That pride and confidence reflects how far supply chain management has progressed at Price. In less than a decade, it has evolved from a narrow purchasing function to one that touches many other parts of the company, such as receiving,

shipping and inventory control. “We began working as a cohesive team,” she says. “We had conversations that we’d never had before.”

Ms. Singleton recalls that when the company hired its first supply chain manager, she came in and said that Price’s BHAG (big hairy audacious goal) would be cost savings of $2.5-million over a two-year period. “We all looked at her and thought: ‘You’re crazy! That’s never going to happen.’”

As things turned out, the target was reached well before the second year was over and was far exceeded by the end of that period. Price had previously done most of its business with a limited pool of preferred suppliers. The new supply chain manager introduced competitive requests for proposals (RFPs), requiring its suppliers to improve their overall value proposition. The company also began inviting suppliers on plant tours, resulting in many more ideas for improvement. One pointed out that Price was ordering boxes of filters stacked two high, while other customers packaged them three high.

“The freight savings on that alone were phenomenal, because we were no longer shipping air,” Ms. Singleton notes. Another valuable

Team-based Approach to Supply Chain ManagementPays Off for Winnipeg Firm

“We have manyvariations of productsand offerings to suiteach of our customer’sunique requirements.The goal is alwaysto deliver the perfectorder while providingexceptional customerservice.”Kelly Singleton is Price Industries’ purchasing manager

innovation has been supplier reviews, including key performance indicators. “We’re now checking their performance and holding them accountable, something we’d never done before,” she adds.

The review process has the extra advantage of bringing together experts from various parts of the company, such as engineering, accounting, inventory control and production. The teams discuss issues ranging from suppliers’ technical support and capacity for growth, to the adequacy of their shipping documents. Such initiatives have raised the profile of supply management within the company. The team reports to the vice president of operations, Paul Remillard, and has added a director of strategic partnerships who has a direct line to Price’s president, Joe Cyr.

Ms. Singleton has two words of advice for other companies seeking to expand their supply-management expertise:

• Invest in training and education: “You’re not going to get staff to be innovative, forward-thinking and strategic if they don’t have the education.”

• Hire the right people: “Once you find them, you better hang on to them because they can make or break your supply chain.”

WWW.SCMAMB.CA SUITE 200 - 5 DONALD ST. WINNIPEG, MB R3L 2T4 TEL: (204) 231-0965

In less than 10 years, supply chain management at Winnipeg’s Price Industries has evolved into a function that touches many other parts of the firm.