ISM’s Certification Programs
October 2006
Presented to ISM – Dallas by:
Christina Foster, SPHR
Vice President, Certification & Diversity
Institute for Supply Management™
Agenda
• Update on the new Qualification
– Requirements
– Exam Specification
– Timelines
• Update on C.P.M.
• Impact of Certification changes
• Questions
How did we get here?
• Market Study
• Job Analysis Process
• Certification Committee recommendation
based upon results of Job Analysis
Components Survey Results
The supply management component is either part of
individual’s personal job responsibilities and / or supervisory
responsibilities or the responsibility of someone else in the
supply management organization.
Rank Order of Components
Purchasing/Procurement
Strategic Sourcing
Logistics
Quality
Inventory Control
Materials Management
Transportation/Traffic/Shipping
Disposition/Investment Recovery
Warehousing
Distribution
Receiving
Packaging
Product/Service Development
Manufacturing Supervision
Percent
99%
98%
83%
83%
81%
81%
79%
75%
74%
71%
69%
63%
63%
34%
New Qualification Requirements
• 5 years experience
• Professional - non-clerical; non-support
• Degree from a regionally accredited
college or university
• Successful passing of the bridge exam
with a valid C.P.M. OR Successful passing
of the three new qualification exams
What We Know So Far……
o New Qualification will be available 2008
o Exam specification – Three (3) Exams
o Exam 1 - Foundation of Supply Management
o Exam 2 – Effective Supply Management
Performance
o Exam 3 - Leadership in Supply Management
o Five years of supply management experience
o Full-time; non-clerical, non-support
o Bachelor’s degree from a regionally accredited
college or university
Reason for Degree Requirement
o
Change in supply chain profession
o
Decision is final
o This decision will not be re-evaluated
o
Ability to recertify
o If you have your C.P.M. – without a degree you may continue
to recertify
New Qualification
Additional Information
o Educational degrees beyond
Bachelors do not reduce requirements
o No grandfathering from C.P.M. to the
new qualification
- You must take the bridge exam
- Or ALL three of the qualification exams
o Cost – not determined
- Exams, applications, study materials,
recertification, etc.
New Qualification Recertification
Requirements
• Every three (3) years with 60 Continuing
•
•
•
Education Hours (CEHs)
Categories for earning CEHs – college courses &
seminars (taken or taught), contributions to the
profession, articles
Candidates will be able to retake the new
Qualification Exams for 20 CEHs each but only in
their last year of certification.
One Year Grace period – resets certification date
New Qualification Study Materials
• Study Guide
• Knowledge Series
• Diagnostic Kit
• Online Review Course for Bridge Exam
New Qualification
Exam Specifications
• Exam 1-Foundation of Supply Management
•
•
– 25 tasks
– Contracting/negotiations; cost/finance; international; social
responsibility; sourcing; supplier relationship management
Exam 2 – Effective Supply Management Performance
– 24 tasks
– Forecasting; logistics; materials & inventory management;
organization/department assessment; planning; product
development; project management; quality
Exam 3- Leadership in Supply management
– 32 tasks
– Leadership; risk and compliance; strategic sourcing
Exam 1 - Contracting & Negotiation
• Prepare solicitations for competitive bids,
•
•
•
•
quotations and proposals with pertinent
specifications, terms and conditions.
Prepare for and develop strategies and tactics
for negotiations, including definition of roles
and responsibilities of team members.
Lead/conduct/support negotiations with
suppliers to obtain desired results.
Manage the preparation and/or issuance of
contracts/purchase orders/agreements.
Administer contracts/purchase orders from
award to completion or termination.
Exam 1 - Cost/Finance
• Prepare and/or administer a supply management
•
•
•
•
department budget.
Develop a cost management program strategies
for purchases.
Identify savings potential and opportunities and
strategies for specific categories through spend
analysis.
Perform cost/benefit analyses on acquisitions.
Develop financing and leveraging strategies for
purchases.
Exam 1 - International
• Identify and assess international markets to
•
•
source goods and services.
Develop international sources of materials and
services.
Develop and maintain documentation regarding
cross-border transactions.
Exam 1 - Social Responsibility
• Develop and act upon a code of business
•
•
conduct for the supply management function
and external suppliers.
Establish and monitor environmentally
responsible and compliant programs throughout
the supply chain and lifecycle.
Implement, monitor and promote organizational
and supply chain safety policies and procedures.
Exam 1 - Sourcing
• Analyze potential sources of goods/or services.
• Evaluate competitive offerings to determine the
•
overall best offer for a product/service.
Plan and communicate sourcing and supply
strategies based on forecasted data.
Exam 1 – Supplier Relationship Mgt.
• Identify opportunities and benefits for rationalizing
•
•
•
•
•
supply base.
Develop/manage effective relationships with
suppliers.
Develop/implement a supplier diversity program.
Develop new supplier qualification plans and reports
to assure components, materials and suppliers meet
specified requirements (regulatory, safety, reliability,
quality).
Conduct supplier performance evaluations.
Develop and execute supplier exit strategies.
Exam 2
- Forecasting
• Perform analysis and provide data on current
•
•
and future and global/domestic market
conditions, benchmarks and industry trends to
management and/or user departments.
Develop supply forecasts in light of economic,
competitive, technology, market and currency
trends and conditions that affect procurement.
Manage forecasted data with suppliers.
Exam 2 - Logistics
• Design/modify logistics facility layouts and
equipment designs to support business model,
increase productivity and lower operating costs.
• Direct traffic/distribution policies and procedures to
ensure optimum flow of material and consolidation
of freight.
• Manage international transportation, invoicing and
documentation functions to ensure corporate
compliance with all governmental import, export,
hazmat and air freight regulations
• Manage the resolution of delivery/receiving
problems including freight loss and damage claims.
Exam 2 – Materials & Inventory
Management
• Develop/implement a material and/or service
•
•
•
standardization program.
Develop/implement a warehouse and inventory
management system.
Coordinate and/or monitor the movement of
equipment and assets within the organization.
Develop, oversee and execute multi-channel
disposition plan for excess inventory and
finished goods.
Exam 2 - Organization/ Department
Assessment
• Monitor work against business plans and take
•
•
•
action to resolve variances or adjusts plans as
appropriate.
Develop performance criteria and evaluate
supply management staff performance.
Develop tools and processes to measure, report
and improve compliance with supply
management policies.
Analyze and resolve issues raised in supply
management audit reports.
Exam 2 - Planning
• Implement or utilize requirements planning (xRP
•
•
– e.g., ERP, MRP, MRP II DRP, DRP II, WMS) to
align supply management and operations
activities to support organizational strategy.
Develop, implement, maintain and monitor the
forecasting, operations planning, scheduling and
inventory control functions to ensure optimum
use of capacity and resources.
Participate in product/service development or
specification/requirement changes that support
organizational merchandising and marketing
efforts to meet customer needs.
Exam 2 - Product Development
• Manage ramp-up strategy and implementation
to full-scale production for new product
introductions.
Exam 2 – Project Management
• Perform project management activities
•
representing the supply management
organization.
Implement a continuous improvement process
within the supply chain in accordance with
organizational objectives.
Exam 2 - Quality
• Develop/administer a supplier certification
•
•
program.
Develop measurements for continuous quality
improvement and target setting.
Develop, measure and evaluate quality
requirements to continuously improve supplier
performance.
Exam 3 - Leadership
• Represent the supply management organization in
•
•
•
•
decisions related to the organization-wide or project
objective setting, budgeting, staffing and policies.
Develop and implement business plans that will meet
customer service, corporate profit and return on equity
goals.
Develop, implement and monitor a Strategic Supply
Management Plan and Operating Plan based on market
conditions, business needs and available resources.
Plan/develop/provide operating policies, guidelines and
procedures. Modify as necessary in order to achieve the
optimal structure.
Develop/implement changes to the organization's supply
management policies as needed.
Exam 3 – Leadership (continued)
• Participate in company acquisitions and/or mergers,
•
•
•
•
and/or divestitures to assure the continuity of supply
and capture synergy opportunities.
Represent the supply organization in meetings with
corporations, government agencies, professional
associations and other organizations.
Lead or participate in cross-functional and/or
multifunctional teams (e.g., project management,
process improvement, international teams).
Disseminate information and promote training related
to supply management policies and procedures.
Market the value of strategic sourcing and sourcing
strategies and initiatives to management and internal
customers.
Exam 3 – Leadership (continued)
• Evaluate the supply management
•
•
•
•
organizational structure and modify as
necessary in order to achieve the optimal
structure.
Hire, develop, retain, promote and/or dismiss
supply management personnel.
Supervise and lead human resources to
achieve initiatives.
Conduct/authorize job training for the
professional development of the staff.
Develop/manage/evaluate/measure
relationships with internal departments.
Exam 3 – Leadership (continued)
• Develop/utilize criteria for evaluating supply
•
•
management department performance.
Conduct role design evaluation and potential job
redesign requirements.
Create and manage a succession plan, allocating
work assignments in such a way as to provide
career development and growth opportunities.
Exam 3 - Risk and Compliance
• Develop, implement and manage a risk profile and
•
•
•
strategies in accordance with existing contracts,
applicable laws, regulations and organizational
policy.
Develop and implement a risk management
and/or claims management program (i.e.,
copyright violation, patent infringement,
harassment).
Implement supply management processes in
consideration of legal issues.
Develop/implement/maintain a database/physical
filing system of relevant information.
Exam 3 - Risk and Compliance (continued)
• Verify the existence, accuracy and completeness
•
•
•
of relevant financial transactions and
commitments to third parties.
Assess risk from end of life cycle issues in the
market place and establish proper risk mitigation
contingency plans for all components in the
product.
Manage and control the storage/disposal of
hazardous/regulated materials and related
documentation.
Comply with programs that prevent and respond
to discrimination or harassment.
Exam 3 - Strategic Sourcing
• Establish and execute strategic sourcing plans, in
•
•
•
•
•
congruence with organizational objectives and
sourcing strategies.
Establish and standardize strategic sourcing
procedures and business process improvements.
Identify, evaluate, select and implement
technologies that support supply management
functions throughout the organization.
Leverage spend through identification, prioritization,
development and execution of strategies.
Conduct analysis to determine insourcing or
outsourcing strategy.
Create new systems and process improvements to
help the organization meet sales goals.
So what will these Exams look like?
# of Questions & time allowed to take exam
Exam 1- 150 scored + 15 un-scored=165 with
2 hours and 45 minutes allowed
Exam 2 - 150 scored + 15 un-scored=165 with
2 hours and 45 minutes allowed
Exam 3 - 165 scored + 15 un-scored = 180 with
3 hours allowed
Still determining specifics of bridge exam
C.P.M. Requirements
• 5 years experience or 3 years with a four year
•
degree from an accredited college or university
Experience=
– professional- non-clerical; non-support
• Maintain recertification every 5 years, may
•
continue to recertify
Lifetime Certification – 18 years of experience
These requirements have not changed
C.P.M. Recertification Requirements
• Every Five (5) years with 84 Continuing
Education Hours (CEHs)
• Categories for earning CEHs – college
courses & seminars (taken or taught),
contributions to the profession, articles.
• Candidates will be able to retake C.P.M.
Modules 3 &/or 4 for 42 CEHs each (not
available for registration after 12/31/2008).
• One Year Grace period – does not reset
certification date
Current Costs
Exam Registration Fees per Module (as of 1/05)
Member
Domestic C.P.M. Testing
$120.
International C.P.M. Testing
$165.
Application Fees (as of 1/05)
C.P.M. Original
C.P.M Recertification
A.P.P. Original
A.P.P. Reaccreditation
Member
$ 90.
$ 65.
$ 65.
$ 50.
Non-Member
$180.
$220.
Non-Member
$150.
$100.
$105.
$ 80.
C.P.M. Study Materials Available

Study Guide

Diagnostic Kits

Bibliographic Reference Keys

Articles for Exam Preparation

ISM Knowledge Series - Volumes 1 through 4

Review Programs

The Supply Management Handbook

Annual Conference proceedings
Important Dates
• 2/28/2007 –
Postmark cut-off date for A.P.P.
Original/Original Lifetime Applications
• 2008 – New Qualification Available
• 12/31/2008 – Postmark cut-off date for C.P.M.
Exam Registration processing*
• 12/31/2009 – Last day to test C.P.M. Modules
registered before 12/31/2008
• 1/1/2010 – Current C.P.M.s no longer able to take
Exam Modules 3 &/or 4 for recertification purposes
• 12/31/2013 – Postmark cut-off date for C.P.M.
Original/Original Lifetime Applications
• 1/1/2014 – Bridge Exam no longer available to test
*Note: Exam Registrations are valid for one (1) year from the date of registration.
Marketing Plans
o ISM has a marketing and communication
plan to promote the credentialing
programs to continue to lead supply
management
o ISM is working with colleges and
universities to continue to promote our
programs
ISM’s Certification Department
seeks your expertise!!!
If you or someone you know is
interested in assisting in writing
questions, developing and
conducting review sessions or
being on the Certification
Committee please contact us.
Certification Department contacts:
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Customer Service: 800-888-6276 ext 401
Information line - ext. 3027
certification@ism.ws
Lyndsey Ferro – administrative support
ext. 3044
Althea (Al) Levine - questions regarding
application process ext. 3094
David Migliore - concerns related to onsite
& Prometric testing ext. 3074
Karen Collins - Manager ext. 3123
Christina Foster - VP ext. 3011
Thank you!
Questions?