The May ISM-New York Report on Business was released on June 4th at 9:45am Eastern and is available for download here.
The ISM-New York Report on Business (like the other ISM reports) is compiled as diffusion indices –we add the percent of positive responses to one-half of those responding that conditions remained the same. A reading of 50% means no change from the prior month, greater than 50% indicates a faster pace of activity, and less than 50% a slower rate. Each month is not so much a reading of the current level of activity as it is an indication of growth or contraction from the previous month.
A note specific to the New York Metro area, where all of this report’s respondants are located: they are predominantly in professional services industries. While I’m sure that does not come as a surprise, it is important to keep in mind when you think about the context for the trends being reported by these particular purchasing managers.
With that background, let’s transition to this month’s report.
L. Gordon Crovitz recently wrote a ‘Commentary’ piece for the Wall Street Journal in which he simultaneously tackled the pervasive problem of fake news and announced the coming launch of his new company, NewsGuard.
The premise of the NewsGuard value proposition is interesting – Crovitz detailed the challenges caused by what has become a ‘news supply chain’. In many cases, we don’t get our news directly from the publisher, like we did in the olden days of newspapers. Instead we get news from another platform that is probably not dedicated to news: Google, YouTube, Facebook, Twitter, etc. This obscures our awareness of the actual source and increases the risk of reading and sharing fake news.
Last week I spoke with Donna Wilczek, Coupa’s VP of Strategy and Product Marketing, about the mid-January announcement that Coupa had acquired Contractually, described in the press release as “a cloud innovator based in Vancouver, Canada that helps reduce businesses’ reliance on antiquated processes or inadequate technology tools to version control or redline contracts.”
Last week, Jon Hansen and I did the second in what will be an ongoing series of ‘Point – Counterpoint’ Blog Talk Radio sessions. Here is how these sessions work: we agree on a topic in advance and then I do my darndest to disagree with Jon for 30 minutes, after which he declares us in agreement. Trust me – the conversations are as entertaining as they are informative.
In May I covered the first chapter of Xchanging’s 2015 Global Procurement Study. (You can read my notes here). The primary take aways were that capacity is more of a constraint than capabilities, KPIs are very diverse, and that practitioners may be getting the wrong idea about the field from media coverage that steers them one way when they need to take another.
The new chapter: External Threats Plaguing Procurement (available for download here after a brief registration) looks into global risk factors. The report couldn’t have been more timely, given how much coverage the Greek banking crisis has been getting.
Last week, Coupa ran a three part blog series based on a conversation I had with their marketing team about the role social media plays in supply market intelligence creation. You can read them here, here, and here. This is a subject that Jeanette Jones and I touched upon in our book, Supply Market Intelligence for Procurement Professionals, but it was certainly not our focus.
While social media is a great tool for news gathering and intelligence creation, it isn’t something that was ever part of my formal training – either in procurement or otherwise. I learned how to leverage the power of social media purely ‘in the wild,’ driven by the need to grow the footprint and brand recognition for Buyers Meeting Point. I am so glad that I did, both because we have seen clear benefits in our traffic, and because now I am in a position to apply what I have learned to the work that must be carried out by practitioners.
This week’s webinar notes are from an April 16th webinar hosted and presented by Supply Chain Insights. The webinar is already (!!!) available on demand.
Boy, did I pick a winner in this event. I originally attended to learn more about inventory management in the face of uncertain demand and fragile extended supply chains. What I came away with were some brilliant observations that will absolutely make their way into the book that Jon and I are writing on Procurement at a Crossroads in the form of quotes pulled from Lora Cecere’s Supply Chain Shaman blog.
Last month, my co-author Jeanette and I had a conference call scheduled with Jon Hansen for an introductory conversation about our book, Supply Market Intelligence for Procurement Professionals (shameless plug here). For some reason, Jon’s Canadian location prevented him from using my conference call account and we ended up in the virtual green room of his Blog Talk Radio studio. What that means is that, for better or worse, the call was recorded. (You can listen to it here.)
This week’s webinar notes are from an October 28th webinar hosted by Sourcing Interests Group and presented by Sherri Barnes, Director of Intelligence at Denali Group.
On September 3rd of last year, Jeanette Jones, Owner and Founder of Cottrill Research, suggested (out of the blue!) that she and I co-author a book. There was never any question of whether or not I would do it. I’ve always wanted to write a book. I enjoy doing research and I have been fascinated with procurement ever since I ‘fell into’ the profession in 2003. Jeanette’s suggestion that we write a book to help procurement professionals create their own supply market intelligence combined all three.
“What pressures are coming to bear now, or in the foreseeable future, that may impact your supply chain and the ultimate sale of your products or services? Gathering market intelligence should include an understanding of what is happening in the economies of both your consumer’s as well as your supplier’s locations. This market intelligence can be used to both react to conditions and to take advantage of potential cost savings opportunities.”
--‘Understanding Market Pressures’ Managing Indirect Spend, Joe Payne and Bill Dorn
Gypsum was the first category I was asked to do research for – truthfully, it was very early in my career and I think my manager was trying to productively keep me busy. But the process was a good learning experience and I think I added real value to the team. For lack of a reason to pick any other product or service, I’ll start with gypsum here too.
Gypsum is used to make plaster and plasterboard – basically drywall. So if you are sourcing in the construction category, and your General Contractor is not responsible for materials costs/purchases, you might find yourself bidding this out.
This week I attended a webinar by Genpact, a business process management, operations, and analytics firm that was formerly part of GE Capital Finance. The webinar was on managing the volatility of the inputs to the products and services your company may produce.
Effective this month, Buyers Meeting Point will start covering the release of the ISM Non-Manufacturing Report on Business. The report is released the first week of every month for the previous month. This month’s report can be found here.
If you have never read the report, it can take some adjustment. We are going to boil each report down to the basic and most useable components. I also recommend reading the ISM Report on Business Brochure.