The procurement of maintenance, repair, and operating supplies is often overlooked as a source of cost reduction. These small-dollar, high-volume items can represent an excellent opportunity for attaining large cost savings. This program explores how to leverage your MRO spend for significant cost savings, as well as tools and technology to manage this overlooked commodity.

Preliminary ISM Course Description:
The procurement of maintenance, repair, and operating supplies is often overlooked as a source of cost reduction. These small-dollar, high-volume items can represent an excellent opportunity for attaining large cost savings. This program explores how to leverage your Support Materials & Services (SMS) spend for significant cost savings, as well as tools and technology to manage this overlooked commodity.

Who should attend?
Supply management professionals who are seeking ways to reduce costs and streamline the process of purchasing maintenance, repair and operating supplies.

Purpose: All segments -- goods, services, and government -- buy Support Materials & Services (SMS). Expenditures for Support Materials & Services (SMS) are 15% to 20% of organizations total expenditures. Most organizations that optimize Support Materials & Services (SMS) achieve average cost reductions of almost 20%. Support Materials & Services (SMS) cost savings and profit potentials from this $600 billion industry are realistic and quickly realized

Objectives:
1. Understand the environment, key characteristics, cost base, marketplace, and key strategies for optimizing Support Materials & Services (SMS).
2. From actual industry and government case examples and benchmarks, learn the innovative and realistic tactics to improve the Support Materials & Services (SMS) management.
3. How to develop a methodology for assessing your own Support Materials & Services (SMS) environment and construct the work steps to realize specific cost reductions without sacrificing operational efficiencies.

Preliminary Program Outline
(subject to change)

Segment 1: Introduction
1. Operating Environment
a. Definition
b. Terminology
c. Background
d. Perspective
e. Control or Convenience - or both
f. Private and Public Sector Emphasis

Segment 2: Why Should You Take a Close Look at Support Materials & Services (SMS)?
1. Support Materials & Services (SMS) Baseline Expenditures
a. Cost elements
b. Cost characteristics
c. Cost management

2. Support Materials & Services (SMS) Environment:
a. Industrial Distributors
b. OEM Suppliers
c. Third Party Providers
d. Commerce Cycle
e. Financial Implications

Segment 3: Getting a Grip on Support Materials & Services (SMS)
1. Support Materials & Services (SMS) Tactics
a. Segmentation
b. Measurement
c. Negotiation

2. Support Materials & Services (SMS) Inventory Management
a. Outsourcing options
b. Crib and OSI tactics
c. Vendor Assignment
d. Disbursements

3. Transportation/Warehousing Options
a. Modes
b. Staging
c. Kitting
d. Direct Site Delivery

Segment 4: Electronic Solutions to Support Materials & Services (SMS) Challenges
1. eCommerce
a. eCatalogs
b. eMarkets
c. eXchanges

2. Payment Options
a. Procurement Cards
b. EFT and ACH
c. Evaluated Receipts
d. Invoice Reconciliation
e. Discounts and Terms
f. Prepayments options

3. Systems Support
a. ERP, e.g., SAP
b. Other Procurement Software
c. Integrations

4. Designing a Support Materials & Services (SMS) Process for the Future: Opportunities and Summary of Trends

June 12, 2003 Satellite Seminar Panelists

Main Presenter:
Jack Barry, co-founder and managing director of Pegasus Global Partners is an internationally recognized specialist in supply chain, logistics, and manufacturing systems, customer service, logistics, procurement, and materials management, with over 35 years' experience in industry, the military and consulting, for both the manufacturing and service sectors. Formerly, Mr. Barry was the co-founder and president of eTime Capital, Inc, a financial supply chain services company that links disparate ERP and Supply Chain applications, and was a client partner and director of Supply Chain Procurement and Logistics Operations Practices at AT&T Solutions Management Consulting Services. His experience also includes serving as vice president and senior principal at A.T. Kearney/EDS and as director of the Supply Chain Procurement, Logistics and Economic Development Practices at Arthur D. Little, Inc. Prior to his consulting experience, Mr. Barry served as the Worldwide Director of Materials Distribution, and Director of Physical Distribution and Transportation for GTE Corporation where he had responsibility for the logistic activities within the manufacturing and service activities, worldwide.

Mr. Barry holds a Master of Business Administration degree (finance) from Columbia Business School, Columbia University (1988) and a Bachelor of Arts degree (history and economics) from Hunter College, City Universities of New York (1966). He is a founding participant and member of the executive faculty for ISM's Center for Strategic Supply Leadership (CSSL). Mr. Barry directed the research project and co-authored the book, Logistics in Service Industry, and has written numerous periodicals, articles and chapters, and workbooks on transportation, purchasing and effective supply chain management. He is a frequent lecturer at universities and in professional and academic seminars.

Panelists:
Charles F. Robertson has recently returned from a foreign service assignment as the director of business development for Italian Operations with MSX International, an international supplier of automotive-related product development and technology services. He previously served as vice president - logistics, for UARCO Incorporated, following a 14-year purchasing and supply career with Ford Motor Company, including serving in the position of procurement manager--Industrial Materials. Mr. Robertson's career achievements are in purchasing, logistics, material control, marketing, and finance with progressively responsible managerial experience in large and medium-sized companies, reengineering major systems and processes in automotive, business forms, medical product, publishing, and contract labor businesses. He managed a key supply and distribution element of a $650 million corporation turnaround program--producing substantial savings, and has a broad background in manufacturing, product engineering, and marketing in Europe, Latin America, Japan, and Canada.

Mr. Robertson holds an MBA with distinction in Finance/Marketing from the University of Michigan, Ann Arbor, a Master of Arts in economics from the University of California, Berkeley, and a BA in history from Cornell University.

Claudia "Scottie" Knott currently serves as executive director for acquisition, technical and supply within logistics operations (J-3), Defense Logistics Agency (DLA), in Fort Belvoir, Virginia, where she is responsible for the establishment and operations of a wide range of acquisition core capabilities for the nation's fighting forces. With over $12 billion in annual material procurement and with nearly $18 billion in annual sales, DLA buys, stores and distributes food, fuel, uniform apparel, pharmaceutical, medical and surgical products and equipment and weapon system repair parts for the military services and other customers worldwide. Ms. Knott is the senior acquisition executive for DLA.

Ms. Knott's previous assignments include: Executive Director of Electronic Business at DLA and the Director of the DoD Electronic Business Program Office (1998 - 2001); Assistant Executive Director, Strategic Business Development and Implementation and Chief of the Procurement Systems and Electronic Commerce Teams in the Directorate of Procurement at the HQ, DLA (1994 - 1998); Chief of the Plans, Policy, and Systems Office at the Defense Supply Center, Richmond, Directorate of Procurement (1991 - 1994); and Senior Functional Analyst for the Standard Army Automated Contracting System (1988 - 1991), Fort Lee, Virginia. Ms. Knott has also held positions as Instructor and Course Director for the Management of Defense Acquisition Contracts Course (Advanced) at the Army Logistics Management College, Ft. Lee, Virginia.

Ms. Knott has a B.S. in business administration from Chapman College, a M.S. in contract and acquisition management from the Florida Institute of Technology (FIT), and a M.S. in national resource strategy from the National Defense University. Ms. Knott has a CPCM designation from the National Contract Management Association and is a 1994 graduate of the Industrial College of the Armed Forces. She has been a member of the Senior Executive Service since June 1998.

Ms. Knott has received many awards during her career, the most notable of which are the Secretary of Defense Meritorious Civilian Service Award in March 2000, DLA Superior Civilian Service Award in April 1998, DLA Exceptional Civilian Service Award in December 1997 and June 2001 and the DLA Meritorious Civilian Service Award in June 1993. Ms. Knott was also selected as one of the Federal Computer Week Top 100 IT Professionals in 1999 and 2001. She is an honorary lifetime faculty member of the Army Logistics Management College and was an adjunct faculty member at FIT, Ft. Lee, Virginia from 1987 to 1989.

Tim Ohl is the senior vice president of global account development for GE Corporate Payment Services where he is responsible for providing payment solutions to GE's worldwide customer base. His organization has the responsibility to develop and implement electronic settlement tools that streamline payment processes and reduce costs for GE businesses and customers. As a strategic member of the e-procurement and e-payment initiative driven by the procurement and financial leaders across the company, his team has implemented a patented process at several GE businesses that utilizes the global bankcard platform to facilitate electronic payments to suppliers.

Prior to joining Corporate Payment Services, Mr. Ohl was CFO at GE Global Energy Services and was responsible for all financial matters pertaining to the procurement, installation, and services of GE Power Systems equipment. He joined GE's Financial Management Program after graduating from Indiana University with a B.S. in finance. He has held positions of increasing responsibility in the areas of finance, sales, marketing, and mergers and acquisitions. He also has experience in a variety of GE business segments including Consumer Products, Information Services, Corporate Headquarters, Power Systems, and GE Capital.