Does all procurement take place as per contract terms and conditions? Is there any chance of cost leakages due to say, incorrect prices being levied or in appropriate implementation of the terms? Such questions could exist in many organizations, and many times trying to evaluate all of this can be quite challenging. For example, keeping track of use of software licenses (Software Asset Manager) or managing telecom spends (Telecom Expense Manager) each have a set of challenges. There are tools to accelerate the process of compliance and control for such special cases.

Special purpose tools help address a specific activity or set of activities (providing analytics to support decisions, or accelerators to executing processes, or collaborate with suppliers).  Spend analysis tools can be used to collate, organize, classify, analyze & summarize spends for each category or commodity, by various dimensions. They generally have ability to interface with, or use data from, varied end-to-end technology solutions In Software Asset Management, usually it is in the interest of procurement to ensure the organization pays only for the software licenses actually used, and to identify license reallocation opportunities. Compliance of software license terms may require evaluation.  But again, the use of licenses may be decentralized, with many points of use. Tools can be deployed on servers to gather the license usage data from various systems, which can then be analyzed for deployment patterns, and identify areas for rationalization and changes. Surely, preventing over utilization, in many cases, means preventing penalties. Under-utilized licenses can perhaps be discontinued. Deploying this tool requires a specialist understanding and a manual effort in conducting the compliance review once the inventory is generated.

Telecom expense is generally a large chunk of the spend portfolio given the ever increasing dependence of electronic means of communication. Each region may have its own set of service carriers, who are contracted with, and need to be managed.  New connection requests, old attires, call reports and invoices all deserve scrutiny, as the sum of errors may be costly. The solution needs a combined set of tools and services, able to establish a cost effective and scalable network, improve transactional service efficiency and reduce cost of operation.

However, solution via special purpose tools may be easier said than done, for data required are available in different and variant systems (enterprise resource planning or legacy applications), or data may not be adequate, or  even the capability to conduct the analysis may be limited. The volume of information may first require data cleansing, to resolve issues arising from existing junk or duplicate data or availability of data in different
formats.  Data rationalization, data enrichment and organization to a standard data schema may all be necessary – perhaps both at transactional and / or master data level.

The cleansed data can be analyzed by various dimensions, using the spend analysis tools, a combination of process accelerators and decision support. The resultant output enables visibility of spend patterns.  The existing spend data set can be enriched by adding external values such as data or supplier codes, from external sources, to permit better classification and analysis. For sourcing, the spend view can provide an enhanced understanding of the spend requirement and its patterns.  The enhanced spend data reports, amongst others, can thus be used for reviewing or developing and deciding on spend strategies.

Downstream in the process, there are other e-sourcing tools serving collaboration with suppliers. During the sourcing strategy execution, request for proposals (RFP) or information or quotations (RFI/RFQ) may be solicited to allow various suppliers to bid and compete.  If enabled simply through manual paper or email, this is a time consuming process.
Collaborative tools for such requests permit online contact, submission of requirements and terms, response from suppliers and comparative alternatives. These special tools or applications create reduced cycle times and processing efficiencies.

Sourcing tools have been used successfully to negotiate with short listed suppliers invited for on-line reverse auctions. Such on-line auction tools can be used with a variance of what data is available to the suppliers. These indeed have led to cost savings, by the sheer visibility of, and increased competitiveness amongst suppliers. And it creates transparency in purchasing and supply process!

In summary, special purpose tools can add value to the sourcing and procurement processes. In some cases, ERP vendors may include them as part of their offerings, or organizations may need to source it from other vendors. In certain cases, one may develop it! But all in all, such special purpose tools have been found useful for decision support or as accelerators to the processes or as collaborative tools.

Ramesh is an expert in logistics and supply chain management, and has extensive international and domestic experience in all facets of operational management. As a corporate strategist and management consultant he has done considerable work in sales, distribution, market research, cost projections, corporate strategic and financial planning, risk management, and marketing of products in U.S. and International markets. Ramesh has a B.A. in History, Trinity College, Oxford University, an M.S. in Management Studies, London School of Economics and Politician Science and
lectured at seminars at Harvard, Yale, MIT, and UCLA.

Company Overview: A Word from Dan
Dan Plute, President, PSA
Pleasanton, CA

Economic and Employment Improvement Coming Soon? Various and conflicting outlooks in the media demonstrate how difficult it can be to assess recovery in the economy and employment. California lags behind many states in economic trends and in reducing the unemployment rates.   The federal government continues to enact programs to stimulate the economy and to reduce unemployment, while some view the biggest impact from the ‘big buck programs’ were felt at the local and state government levels. The federal government refers to an upcoming “great recovery” period with
unprecedented employment growth, financial gains and housing market improvements.   Will these conditions improve your employment opportunities? And how will you recognize the recovery and opportunities?

Teamwork is a Necessity:  This past decade has brought new supply chain concepts, new management controls and a new role for Supply Chain Managers. As we move into a new decade, Supply Chain professionals will be challenged to reduce costs, improve vendor performance, reduce risks and manage the total dollars spent within the company. Managers are even more accountable
for controlling spend and for engaging with stakeholders to participate in spend management programs. A team approach will help to keep all perspectives in view.

Organizations to Help Keep You Informed:  To keep up with the latest reports and trends, PSA recommends membership in organizations such as ISM, NCMA and APICS to keep current in topics important to Supply Chain and Contract Programs.   Supply Chain programs can improve operations, reduce non-operations activities, and reduce costs.   ISM-NC has excellent programs
for Supply Chain Certification; NCMA and APCIS provide learning programs to help you maximize your potential.

Announcing….
PSA is pleased to announce a business association with Suh’dutsing Technologies LLC. Suh’dutsing is an 8A recognized company with strengths in many staff augmentation and direct hire categories.   PSA and Suh’dutsing will send out a formal announcement regarding this venture and provide more information on our strengths in staffing. Contact Dan Plute, at 925-460-3971, if you have questions.

MACS AZ, LLC
is pleased to announce a change in its management team effective April 2010.  Ms. Yvette Jones, a Supply Chain/Procurement Professional is the new Managing Director and Majority Owner of MACS – AZ, LLC.  Yvette is teaming with Mr. Dan P. Plute, co-owner and founder of Material and Contract Services – LLC and Procurement Services Associates, California based professional services businesses.
Yvette’s experience in supply chain, purchasing, contract management, traffic, logistics and professional services is unique.  Her understanding of Supply Chain principles, concepts and the operating perimeters in a business will help clients locate the best available talent.

Featured Candidate
Proven Purchasing, Supply Chain & Materials Management Professional, BayArea, CA

This Northern California candidate brings 20 years of successful management in Purchasing, Materials Management, Corporate Procurement, Inventory Management and Supplier Management, and a broad skill set including outstanding communication, negotiation and collaborative expertise. Successful leader, improving efficiencies, productivity, and reducing expenses.  Promoter of world-class performance, best-practices and peer-to-peer learning.   Leverage almost 20 years of successful experience into a leadership role within a purchasing/materials management/supply chain division of a
solid health sciences, medical device manufacturer or biotechnology organization in the Northern California area. Experience includes:

- Negotiated first National Standard Contract for Radiation Oncology Linear
Accelerator Equipment in support of the largest health care maintenance
entity in the U.S.   Savings of 30% annually realized on capital equipment
purchases.

- Managed $179M in contract portfolio spend within 12 Clinical Sourcing and
Standards teams.  Over $16,000,000 annual savings realized in contract
development and negotiations.

- Administered a New Purchasing Card program for a global manufacturer of
medical devices used in Neuro Radiology.  Managed ISO Supplier Requirements,
Conducted Quality Surveys & Audits for entire Approved Supplier List at
Boston Scientific Corporation.

If you are interested in this candidate, email
<mailto:glambros@procurementservices.com> George Lambros.
Industry Reports to Serve You
 <http://app.streamsend.com/public_images/275541/images/ISM_PNG.png> PSA
Recommends
Manufacturing
ISM Report On Business®
Based on data compiled from purchasing and supply executives nationwide, the
Manufacturing ISM Report On Business® is published monthly by the Institute
for Supply Management™.  The following is from the April 2010 Manufacturing
ISM Report On Business®.

PMI: Manufacturing continued to grow in April; the PMI registered 60.4
percent, an increase of 0.8 percentage point when compared to March’s
reading of 59.6 percent. The PMI indicates growth for the 12th consecutive
month in the overall economy, and expansion in the manufacturing sector for
the ninth consecutive month.

New Orders: ISM’s New Orders Index registered 65.7 percent in April, 4.2
percentage points higher than the 61.5 percent registered in March and the
10th consecutive month of growth. A New Orders Index above 50.2 percent,
over time, is generally consistent with an increase in the Census Bureau’s
series on manufacturing orders (in constant 2000 dollars).

Production: ISM’s Production Index registered 66.9 percent in April, an
increase of 5.8 percentage points from the March reading of 61.1 percent.
This is the 11th consecutive month the Production Index has registered above
50 percent, and is consistent with an increase in the Federal Reserve
Board’s Industrial Production figures.

Employment: ISM’s Employment Index registered 58.5 percent in April, 3.4
percentage points higher than the 55.1 percent reported in March, and the
fifth consecutive month of growth. An Employment Index above 49.8 percent,
over time, is generally consistent with an increase in the Bureau of Labor
Statistics (BLS) data on manufacturing employment.

Supplier Deliveries: The delivery performance of suppliers to manufacturing
organizations was slower in April as the Supplier Deliveries Index
registered 61.3 percent, 3.6 percentage points lower than the 64.9 percent
registered in March. This is the 11th consecutive month the Supplier
Deliveries Index has been above 50 percent.

Inventories: Manufacturers’ inventories contracted in April following one
month of growth as the Inventories Index registered 49.4 percent, 5.9
percentage points lower than the March reading of 55.3 percent. An
Inventories Index greater than 42.6 percent, over time, is generally
consistent with expansion in the Bureau of Economic Analysis’ (BEA) figures
on overall manufacturing inventories (in chained 2000 dollars).

Customers’ Inventories: The ISM Customers’ Inventories Index registered 33
percent in April, 6 percentage points lower than in March when the index
registered 39 percent, and the 13th consecutive month the Customers’
Inventories Index has been below 50 percent. The index indicates that
respondents believe their customers’ inventories are too low at this time.

Prices: The ISM Prices Index registered 78 percent in April, 3 percentage
points higher than the 75 percent reported in March. A Prices Index above
49.3 percent, over time, is generally consistent with an increase in the
Bureau of Labor Statistics (BLS) Index of Manufacturers Prices.

Backlog of Orders: ISM’s Backlog of Orders Index registered 57.5 percent in
April, 0.5 percentage point lower than the 58 percent reported in March. Of
the 82 percent of respondents who reported their backlog of orders, 31
percent reported greater backlogs, 16 percent reported smaller backlogs, and
53 percent reported no change from March.

New Export Orders: ISM’s New Export Orders Index registered 61 percent in
April, 0.5 percentage point lower than the 61.5 percent reported in March
and the 10th consecutive month of growth.

Imports: Imports of materials by manufacturers expanded in April as the
Imports Index registered 58 percent, 1 percentage point higher than the 57
percent reported in March and the eighth consecutive month of growth.

- from the Institute for Supply Management.

To view the full version of this report and to learn about the data, please
<http://streamsend.maxhire.net/c/10916321/244/rNG11YQ/vcu0?redirect_to=http%
3A%2F%2Fstreamsend.maxhire.net%2Fc%2F10899241%2F164%2FtXqfX5r%2Fvcu0%3Fredir
ect_to%3Dhttp%253A%252F%252Fwww.ism.ws%252F> go to the ISM website.
From the PSA
Southern California Office
John Balderrama, Vice-President, PSA
Santa Ana, CA

The Santa Ana office is beginning to see an upward trend in client needs.
Jennifer in Marketing has been working hard getting the word out about
Procurement Services Associates services and our outstanding candidate
database.

Community and Networking Events
NCMA Orange County invited John Balderrama Vice President of Operations to
conduct a presentation on the industry and the main topic “Practical Hints &
Suggestions to Land Contract Positions.” Mr. Derek A. Hahn, President of the
Orange County Chapter, NCMA commented on the presentation as being “full of
great information…fun…[and] a real look at the career contracting employment
lifestyle.” Afterwards, Mr. Balderrama spent time reviewing client hiring
concerns and provided quick resume reviews for those who asked for
assistance.

Top 15 Actual Job Listings
In January 2010, Business Week found that Anaheim, California in Orange
County was the fastest growing city in the entire state of California.  In
February 2010, according to SimplyHired.com and Indeed.com, a review of over
120,000 job vacancies in a 50-mile radius of Anaheim showed the most
frequently listed job vacancies are:

1.     Physical Therapists

2.     Salespeople

3.     Alternative Energy Marketers
- work at home jobs

4.     Store Managers

5.     Sales Representatives

6.     Occupational Therapists

7.     Project Managers

8.     Account Executives

9.     Administrative Assistants

10. Customer Service Representatives

11. Healthcare Volunteers – Unpaid.

12. Assistant Store Managers

13. Pizza Hut Shift Leaders, Delivery Drivers, and Team Members

14. Registered Nurses (RNs) – includes Travel Nursing.

15. Financial Advisors

Call Procurement Services Associates first, when you are seeking employment
or seeking the very best in qualified and quality staff for your short- or
long- term projects.  PSA has been providing staffing solutions that save
time and money for over 20 years.

Southern California Office
250 Golden Circle, Suite 205
Santa Ana, CA, 92705
TollFree No:1-877-772-2897
Fax: 714-647-1390
Email:  <mailto:marketing@procurementservices.com>
marketing@procurementservices.com
About the PSA Monthly Newsletter
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featured articles by industry leaders, and information about the PSA
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Read more here

The news media continues its projections for a gloomy 2009 for employment and for business profits. According to most projections profits in most segments will be lower than 2008. In many cases profit margins will be negative. Unemployment rates continue to raise with most projections the unemployment rate inCalifornia will exceed 10 percent in 2009. I believe the unemployment rate for Supply Chain, Contracts and Procurement professionals is not as severe.

I continue to see trends that government entities and private industry companies are expanding Supply Chain’s role in the business. Cost reduction and cost saving ventures are the key areas for most businesses and government agencies. Companies are seeking ways to reduce direct and indirect spend categories. Most government agencies are looking for cost saving opportunities. Tax revenue streams and state government grants/allocations are cut. Reducing the spend rate through labor reduction is not a viable option for them.

Companies are evaluating spend categories seeking new or improved methods to reduce costs. The process includes evaluating labor costs, process methods and agreements to purchase the materials and services. Outsourcing continues to be a viable option for some companies. However, outsourcing has many issues and in some cases many problems. The outsourcing path has many directions, many leading to a dead end. Know the outsourcing game, prepare a plan, schedule and budget for the project. Develop metrics so you can determine if the product or services is delivered according to your specifications. Look at the total cost of the service or product. Will foreign currency fluctuations impact your cost? If the currency fluctuates will your costs increase or decrease?

Cost reduction programs require expertise in change management. How to successfully implement the new process can be a challenge. Many employees resist change – why change something that works is a common comment.

Many companies and government entities will look for “project support” professionals. Rather than increase FTE’s, they will look for temporary or project support professionals. Consider this option if you are unemployed.

Procurement Services Associates/Material and Contract Services can provide project support professionals for short term and for partial work week requirements. Contact us for a list of Supply Chain, Procurement and Contract Administrators.

Look for cost saving opportunities, but can not find the talent to conduct a Spend Analysis. We have the experts that can perform the work and prepare a spend reduction plan.

Looking for E-Procurement Programs to simplify the procurement process, improve controls and provide catalogues for the bulk of your direct and indirect spend items? Check EZBuys web site for information on E-Procurement programs.

Need help locating the next career opportunity. Contact us for career suggestions.

Dan P. Plute
President