ISM-Houston announced today the the overall Houston PMI rose modestly in August to a robust 57.5 points. Manufacturing activities strengthened significantly. Services activities, while continuing to point to growth, slowed minimally.
ISM-Houston announced this morning that the Houston Purchasing Managers Index rose a modest 0.5 points to 57.2 during July. Significant continued strengthen of the sales/new orders and lead times indices, aided by a rise in the employment index, drove this improvement. The finished goods inventory index, an inverse indicator of economic strength, fell further below neutral also indicated economic strengthening.
A procurement transformation effort can reduce your costs significantly. For a typical implementation, you will see annual cost savings of 4 to 9% on your services and indirect materials spend. You will also capture fixed cost savings of 20 to 30%. With normal program execution costs equal to 1 to 2% of one year of spend, depending on your organizations size and current capabilities, most procurement organizations will break even during the third year of program execution.
We have proven process maturity model based methods and benchmarking techniques to help you understand where you are compared to your peers and the performance leaders. We’ll work with you to create a transformation plan based on this assessment with a target to implement known, highly effective, procurement practices while meeting your total cost of ownership targets. We’ll also help you execute this plan, ensuring that you deliver both near term quick hits and longer term differential improvement.
ISM-Houston announced this morning that the Houston Purchasing Managers Index rose 2.5 points to 56.7 during June. Significant strengthening of the sales/new orders and lead times indices drove this improvement. A lower finished goods inventory index, an inverse indicator of economic strength, also indicated economic strengthening by falling further below neutral.
Significant procurement transformation is hard. If you are like most procurement leaders, you’ve already started a strategic sourcing effort to get quick savings, but you’re finding it hard to figure out what to do next. Do I improve my IT systems to gain efficiency and reduce errors? What if I focus on cleaning up my master data to better understand and control my spend? Should I modify my processes to align them with those I know to be highly effective? Do I focus on changing my organization and improving my staff capability? By now, you’ve probably concluded that you will need to do all of this and more, but you’re struggling to prioritize your efforts.
Determining the optimal design for your Supply Chain organization isn’t easy. Should it be decentralized, centralized, center led or something else? Do you have the staff to execute in the optimal organization now, or should you move in steps and gain time to build additional leadership capability?
ISM-Houston announced today that according to Houston area supply chain executives, overall economic activity in Houston continued to expand in May. The overall ISM-Houston PMI diffusion index fell modestly. Manufacturing activities have now expanded for two quarters and services activities have expanded for more than three.
Manufacturing and Services Activities Show Strength
ISM-Houston announced today that according to Houston area supply chain executives, overall economic activity in Houston continued to expand in April. The overall ISM-Houston PMI diffusion index fell modestly but remains well above neutral. Manufacturing activities expanded for the fifth month and services activities have expanded for the last nine months.
All ISM-Houston PMI Indices Point to Expansion
ISM-Houston announced today that according to Houston area supply chain executives, overall economic activity in Houston expanded significantly in March. The overall ISM-Houston PMI diffusion index is at its highest level since early 2019. Manufacturing activities expanded for the fourth month and services activities have expanded for the last eight months.