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					Update on ISM Qualification
      Robert J. Hairston, C.P.M.
                    Agenda
   Update on the new Qualification
       Requirements
       Exam Specification
       Timelines
   Update on C.P.M.
   Impact of Certification changes
   Questions
  The new cert is the
        CPSM:
Certified Professional
           in
Supply Management
Definition of
Supply Management


   ISM defines supply management
   as the identification, acquisition,
   access, positioning, and
   management of resources that an
   organization needs or potentially
   needs in the attainment of its
   strategic objectives.
What are some job titles that will
benefit from the new CPSM
qualification?

   Strategic Sourcing
   Commodity Management
   Logistics Management
   Supplier Relationship Management
   Project Management
   Supplier Diversity Management
       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                        Percent
  Purchasing/Procurement                          99%
  Strategic Sourcing                              98%
  Logistics                                       83%
  Quality                                         83%
  Inventory Control                               81%
  Materials Management                            81%
  Transportation/Traffic/Shipping                 79%
  Disposition/Investment Recovery                 75%
  Warehousing                                     74%
  Distribution                                    71%
  Receiving                                       69%
  Packaging                                       63%
  Product/Service Development                     63%
  Manufacturing Supervision                       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
New Qualification Study Materials
   Study Guide
   Knowledge Series
   Diagnostic Kit
   Online Review Course for Bridge Exam
  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
Change in supply management
profession
  Degree is imperative in today’s business environment

Decision is final
  This decision will not be re-evaluated

Ability to recertify
  If you have your C.P.M. – without a degree you may
  continue to recertify
                     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.
    State of C.P.M.
 The C.P.M. will continue to be a
valuable designation within the
procurement profession

  Current C.P.M.s must maintain their
designation in good standing by
continuing to recertify or be granted
lifetime designation
State of C.P.M.
   ISM will cease processing exam registrations for
    the C.P.M. after December 31, 2008

   If a C.P.M. lapses after December 31, 2008
    they will not be able to recertify

   The last date to apply for C.P.M. (postmarked) is
    December 31, 2013

   ISM will not issue any new C.P.M.’s after
    January 1, 2014
                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
Why not continue the C.P.M., since it has
significant worldwide recognition?


     Indeed a mark of excellence on a global scale;
     however, does not address many components of
     supply management

     CPSM being positioned
        more strategic,
        expanded content
        reflective of future of supply management

     Resource and financial perspective
     must align activities with the mission of ISM
       Should I get my C.P.M.
       now?
                      YES!
   Sign of commitment to professionalism
   Opportunity to bridge to new qualification
   Standard within the purchasing field
   Importance of keeping up with your CEHs
    and recertify prior to the CPSM being
    implemented

Keep your C.P.M. AND you can have the CPSM in 2008!
What to do if you are a
C.P.M.?

 Bridge exam for C.P.M.s in good
 standing with a bachelor’s degree - One
 (1) Exam

   Will cover contemporary content that is not
   currently covered on the C.P.M.
   Will be available in 2008
   You will be able to take bridge exam until
   December 2014
                     Current Costs
Exam Registration Fees per Module (as of 1/05)
                                  Member         Non-Member
Domestic C.P.M. Testing           $120.          $180.
International C.P.M. Testing      $165.          $220.

Application Fees (as of 1/05)
                                   Member        Non-Member
C.P.M. Original                    $ 90.         $150.
C.P.M Recertification              $ 65.         $100.
A.P.P. Original                    $ 65.         $105.
A.P.P. Reaccreditation             $ 50.         $ 80.
Recertification Requirements

C.P.M. – 5 years – 84 hours

CPSM – 3 years – 60 hours
  Can retake exams for CEHs in last year of certification only


Type of continuing education hours accepted
  Business related training relevant to your industry hour for
  hour
  Contributions to the profession
  College courses


One year grace period
  This will reset your recertification date for the CPSM
  C.P.M. if lapses more than a year- will no longer be current
Lifetime – Retirement?
Lifetime C.P.M.
  Yes. You earned – you keep it!
No Lifetime CPSM
   Not even if you have lifetime C.P.M.
If you retire – what happens to your C.P.M.?
   If you have more than 18 years of experience
     you may obtain the Lifetime C.P.M.
  May continue to recertify
If you retire – what happens with your CPSM?
  May continue to recertify
    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.
 Continued Communication
Concerning the C.P.M. and the CPSM
  Relevant timelines
  Relevant information
Make every effort to contact all those affected
  E-newsletters, e-mail, snail mail…
Update Web site
  FAQs and other information


  Note: Be sure to sign up to receive new
 qualification updates on the ISM website
Acknowledgement
   CPSM specification developed with input
    from subject matter experts from
    around the world, including
       Robert J. Hairston, C.P.M., Corning
        Incorporated
       Alan S. Amos, C.P.M., Corning
        Incorporated
     Certification Department contacts:


   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
Questions and Answers

				
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posted:11/6/2011
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