A Spoonful of Medicine with a Healthy Dose of IP Protection

iPierian is a leading biopharma- ceutical company that is on the forefront of developing therapies for disease using patient-derived induced pluripotent stem cells (iPSCs). Never heard of iPSCs before? Well, iPierian may be changing that. Have no idea how iPSCs work and what they do? Well, don't feel too badly, only a few of the medical elite truly understand the science behind the pluripotent stem cells. And after a recent round 2 of investment funding totaling $28 million, iPierian is more intent than ever of keeping their specific knowledge on the subject out of the hands (or brains) of their competitors.

Proof of their intense need for intellectual property protection is evident in their announcement today. On September 30, 2010, iPierian announced that they have appointed Wayne Montgomery, J.D., as Vice President, Legal Affairs and Intellectual Property. Wayne has spent 20 years in protecting intellectual property. And he has spent twenty years doing so in the biopharmaceutical industry. This makes him more than a so-so choice for iPierian.

Whether or not iPierian will make definitive strides in developing successful therapies for neurodegenerative diseases, including spinal muscular atrophy (SMA), amyotrophic lateral sclerosis (ALS) and Parkinson's disease is largely yet to be seen. As a society we certainly hope such scientific achievements are within the reach of these talented teams. And as these landmark therapies are developed, in order to repay investments, fund additional research, and secure future profits, intellectual property will remain of vital importance to iPierian.

Sample Test Question: Task 1-F-2

Samantha is the purchasing manager for iABC, a high-tech company on the forefront of developing cloud based software services. Intellectual property is the largest asset the company owns. Samantha works with suppliers that provide software design and development services that augment iABCs services and products. In an effort to protect the intellectual property of her organization, which of the following is the LEAST appropriate time for her to have a supplier sign a nondisclosure agreement:

A) Prior to sending out an RFP that contains proprietary information
B) Prior to allowing a visit with engineers at her company's facility
C) Prior to awarding a purchase contract
D) Prior to initiating an ESI program

Holiday Builders Paints Sherwin Williams as a Partner

Unless you are an HGTV designer or an aspiring Matisse, paint might not be that exciting to you. But today, Barry Holland, director of purchasing and national accounts at Holiday Builders is excited.

"We are thrilled about our new partnership with Sherwin-Williams," he says.

Today, September 29, 2010, Sherwin Williams announced an exclusive agreement with Holiday Builders. With 3,300 stores in North America, Sherwin Williams is a giant in the paint, stain, coating, and wall and floor covering business. Those are products regularly found on the shopping lists of Holiday Builders, who is known for their quality residential home building in the United States' southeast.

Paints and coatings provided by Sherwin Williams will be of strategic importance to Holiday Builders. By taking advantage of Sherwin Williams' National Account program, Holiday Builders expects operational efficiencies including: consistency, standardization, consolidation, customized specifications, and simplified supplier transactions. Holiday Builders expects to see cost savings too, by partnering with a supplier that can provide national buying power. Yet with 1,400 reps nationwide, local service is a top benefit of the relationship as well.

HGTV and Matisse aren't alone, such a list of benefits and and advantages to the relationship with Sherwin Williams, seems more than a valid reason for Barry Holland's excitement over paint.

Reference press release: http://www.prnewswire.com/news-releases/sherwin-williams-now-exclusive-paint-and-coatings-supplier-to-holiday-builders-103993218.html)

Sample Test Question: Task 1-F-1

Based on information from the article above, Sherwin Williams is best described as what type of supplier to Holiday Builders:

A) Approved supplier
B) Certifiable supplier
C) Partnered supplier
D) Pre-qualified supplier

In Golf Times and Bad Times

The Just-in-Time (JIT) inventory philosophy has been touted as a model of efficiency, its development being credited to Taiichi Ohno in Toyota production facilities in the 1970's. But golf supply professionals aren't all on board. Long before Ohno was streamlining car assembly lines, there was a saying, "The early bird catches the worm." And some golf courses are favoring early ordering over just-in-time models for their pesticide purchases. ⁽²⁾

Manufacturer rebates often entice golf courses to order pesticides months before they are needed. The largest benefit is that the rebates are a direct cost savings to the organization. However, other advantages are being noticed as well. Payment terms for early orders are often more favorable than would otherwise be seen in this industry. Scheduling is a convenience too. Pesticide treatments are scheduled long in advance which reduces the chance of conflict. When emergency pesticide treatments are required, they are easier to arrange since ordering and payment have already occurred.

The early ordering is helping suppliers too as they see more normalized sales patterns and have plenty of lead time to prepare their inventories.

So it seems that as long as enticing rebates and payment terms continue, the early birds on the golf course might not just be the guys carrying their sticks, trying to get in a round before work.

2) http://www.golfcourseindustry.com/gci-0910-cover-early-order-just-in-time.aspx

Sample Test Question: Task 1-E-3

The core of the JIT philosophy is:

A) cost effectiveness.
B) faster delivery times.
C) elimination of waste.
D) supplier cooperation and performance.

Hot and Bothered Over Botched UDOT Bid Process

Summer is supposedly over, but things are heating up along the Utah political landscape. On the front burner is questioning of the selection process in which Provo River Constructors (PRC) was awarded the $1.1 billion I-15 CORE project contract, the largest contract ever awarded by Utah Department of Transportation (UDOT).

Details provided by UDOT confirm that a scoring matrix was used by Evaluation Teams to rank and rate the three short-listed bidders. Following the Evaluations Teams' review and scoring, Flatiron-Skanska-Zachry (FSZ) was favored as the preferred supplier. However, a second review was conducted by the Selection Recommendations Committee (SRC). This was not an entirely independent review, but, at least in part, a review of the Evaluation Teams' scoring. The SRC agreed with 24 of the 27 ratings provided by the Evaluation Teams. They made "upward adjustments" to 3 of the ratings in favor of PRC which resulted in a new winning supplier: Provo River Constructors.

"There was no pattern of bias, but it looked like it," John Njord, UDOT deputy director and chief engineer said. ⁽¹⁾

Following a December 2009 announcement of the winning bidder, Flatiron-Skanska-Zachary filed a protest. In January 2010 they followed up with supplements to the protest. A week and a half after that UDOT provided PRC with a Notice to Proceed. By February 2010, the situation was resolved with FSZ in which a $13 million bid protest settlement from UDOT to FSZ was agreed upon.

A governor's race in Utah, in which campaign contributions, favoritism, and private meetings are in question has recently brought the $13 million payoff to light. They may be saying good-bye to summer along Utah's Wasatch Front, but some are as uncomfortable as a boy in his wool church coat on a hot and sticky July afternoon.

(1) http://www.heraldextra.com/news/transportation/cars/article_b6ed3bb3-44af-5885-87bd-8f7e6e547775.html

Sample Test Question: Task 1-E-2

Scoring supplier responses to proposals is often done via a decision matrix where cross-functional team members independently review and rank suppliers. The supply management professional will set a range for scores (e.g. a range of 1 to 5). If a greater fineness of data is required, a supply management professional would be wise to:

A) Widen the range for scores.
B) Narrow the range for scores.
C) Increase the number of suppliers to be included in the bid.
D) Decrease the number of suppliers to be included in the bid.

Schumer Heads Directly to the Source

On September 23, Senator Chuck Schumer proposed legislation that would provide tax incentives to companies that bring jobs back to the United States which have been previously outsourced. According to Schumer (Dem-NY), "Manufacturing jobs have left New York at an astounding rate for places that have no work rules, no environmental rules and no wages rules. It's time to level the playing field."

This seems to be a long standing issue with the Harvard educated politician that is known for his loyalty to local needs of his constituents almost as much as he is known for his love of the spotlight. And no one would disagree that he has a passion for job creation . Interestingly, Schumer was loudly outspoken against Adidas last year when they announced they were terminating their contract with New York based American Classic Outfitters. Such a move was in line with the company's supply chain consolidation as they revealed plans to outsource the production of NBA jerseys overseas.

Whether or not yesterday's proposed legislation will find an approved and permanent place among tax incentives for businesses is yet to be seen. It is expected to be considered by the Senate as soon as next week.

Sample Test Question: Task 1-E-1

Advantages to international sourcing can include ALL of the following:

A) Higher quality, lower prices, wider range of goods, greater competition
B) Higher quality, lower prices, wider range of goods, same modes of communication
C) Applicable laws, lower prices, wider range of goods, greater competition
D) Payment processes, lower prices, wider range of goods, greater competition

Safety Doesn't Happen by Accident

Amputated fingers, pounded body, crushed skull, broken back, amputated hand. This gruesome list is not a summary of scenes from a Fright Night movie at a teen-age Halloween party. It is a few of the serious physical injuries, two of which were deadly, reported by OSHA (Occupational Safety and Heath Act) in just the past 30 days.

Each of these 'accidents' finds origins in serious, willful safety violations and has resulted in citations, legal ramifications, and fines issued to organizations across the United States in September 2010. OSHA defines a willful violation as "one committed with plain indifference to or intentional disregard for employee safety and health." OSHA fines vary and reflect the severe and recurring nature of hazards. They are based on the hazard potential and, perhaps surprisingly, not entirely based on the seriousness of a resulting accident. Many, many fines are issued even without episode of serious accidents or injuries.

Interestingly, in the list above, an employee death situation resulted in a total fine of only $119,500, while an amputated hand situation resulted in fines exceeding $3 million. The company facing the amputated hand $3 million fine, is accused or removing and 'tinkering' with safety equipment on machines. They are also accused of altering factory settings to speed up machines to enhance production numbers. These safety violations raise somber ethical concerns which should be addressed by supply management personnel under existing contract language with such suppliers or when analyzing potential suppliers.

Sample Test Question: Task 1-D-3

Which of the following is NOT a purpose of the Occupational Safety and Heath Act (OSHA):

A) Provide rules for conducting investigations of accidents
B) Implement record keeping requirements
C) Require research on safety-in-the-workplace issues
D) Ensure supply management includes "compliance with law" clauses in contracts with suppliers

This Week on E! (E as in 'Environment'): The Clean Air Act Turns 40

Editors Note: Despite some of the divisive themes in this message, in truth The Clean Air Act has been a result of continued bi-partisan and corporate commitment to our world and the air we breathe. By the way, how many famous faces did you see?

And speaking of famous faces...Uma Thurman, Matt Damon, Vince Vaughan and Kelly Ripa aren't the only ones turning 40 in 2010. The Clean Air Act celebrates 40 years in 2010 too - this month in fact. The numbers being reported in conjunction with the 40 year mark and celebration are impressive. Consider that in its first 20 years, the Clean Air Act is credited with saving 200,000 lives, and preventing 672,000 cases of bronchitis and 21,000 cases of heart disease. 843,000 avoided episodes of asthma are also a result of the Clean Air Act's first 20 years. Compare that to Vince Vaughan's and Matt Damon's first 20 years in which neither had yet landed a decent acting role.

But much like Vince and Matt, the biggest role for the Clean Air Act probably didn't come until its next 20 years either. Consider the impact on our air since 1990 in which now 1.7 million toxins have been removed, some pollutants are down as much as 41% and since 1980 lead is down 92% in our air.

The Clean Air Act doesn't just boast fame, but fortune too. It has been suggested that for every dollar spent on these laws, we have seen a return for $40 in value. Despite its many accolades, I have yet to see any Academy Awards or Emmy's handed out to this landmark legislation. But don't let that lessen in your mind the star power of these environmental laws.

Sample Test Question: Task 1-D-2

Examples of environmental laws at the US federal level include ALL of which of the following:

A) Clean Air Act, Clean Water Act, Robinson-Patman Act
B) Clean Air Act, Clean Water Act, Foreign Corrupt Practices Act
C) Clean Air Act, Clean Water Act, Toxic Substances Control Act
D) Clean Air Act, Clean Water Act, Freedom of Information Act