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ISM CPSM1 : Foundation of Supply Management Exam

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Test Number : CPSM1
Test Name : Foundation of Supply Management
Vendor Name : ISM
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CPSM1 test Format | CPSM1 Course Contents | CPSM1 Course Outline | CPSM1 test Syllabus | CPSM1 test Objectives


This course focuses on management and improvement of supply chain processes and performance. It will be valuable for students who would like to pursue a career in consulting or take a position in operations, marketing or finance functions in a manufacturing or distribution firm. They explore important supply chain metrics, primary tradeoffs in making supply chain decisions, and basic tools for effective and efficient supply chain management, production planning and inventory control, order fulfillment and supply chain coordination. They will also investigate subjects such as global supply chain design, logistics, and outsourcing, several other accurate supply chain innovations.
The class format includes lectures, case discussions, guest speakers, and simulation games. The content covers both quantitative and qualitative materials. The cases will feature high-tech companies as well as firms in more traditional industries such as apparel and manufacturing.

Institute for Supply Management® (ISM®) is the first and leading not-for-profit professional supply management organization worldwide. Its 47,000 members in more than 90 countries around the world manage about US$1 trillion in corporate and government supply chain procurement annually. Founded in 1915 by practitioners, ISM is committed to advancing the practice of supply management to drive value and competitive advantage for its members, contributing to a prosperous and sustainable world. ISM empowers and leads the profession through the ISM® Report On Business®, its highly-regarded certification and training programs, corporate services, events and the ISM® Mastery Model®. The ISM® Report On Business®, Manufacturing and Non-Manufacturing, are two of the most reliable economic indicators available, providing guidance to supply management professionals, economists, analysts, and government and business leaders.

CPSM Certification Overview
The CPSM is globally recognized as the gold standard of excellence for supply management professionals, in both the manufacturing and non-manufacturing sectors. The designation is transportable across industries, job roles and regions, providing designation holders with flexibility and mobility. The CPSM is for forward-thinking supply management professionals who desire to demonstrate a broad understanding of the components of the profession. The program emphasizes the major competencies of supply management. Those earning the CPSM will attain a greater understanding of end-to-end supply management and be better positioned to positively impact their organization.

CPSM Eligibility Requirements
Earning a CPSM designation requires you to take and pass three exams, which can be taken in any order:
• Supply Management Core
• Supply Management Integration
• Leadership and Transformation in Supply Management
Candidates must have three years of full-time, professional supply management experience (nonclerical and nonsupport) with a bachelors degree from a regionally accredited institution or international equivalent or five years of full-time, professional supply management experience (nonclerical and nonsupport) without a qualified bachelors degree.
All applicable experience must be in a professional position where the primary function is supply management. Professional experience is usually defined as positions with decision-making authority and where independent judgement is exercised. ISM does not require a candidate to work in all areas of supply management or be in a management position. Proof of work experience is not required from those with a current C.P.M. certification. ISM will evaluate work experience for candidates unsure if their current or previous positions are considered applicable. The evaluation is optional, and there is a nominal charge. The work-experience evaluation process allows a candidate to submit work experience documentation prior to taking exams. ISM will return an evaluation to the candidate indicating if the experience is acceptable. Candidates with acceptable experience should submit the evaluation with their original certification application after they have passed the exams.

- Assess stakeholder needs and organize into sourcing plans 5
- Analyze and advise on feasibility of internal customer requests 3
- Analyze potential sources of products or services 7
- Determine methods to process requirements for goods or services based on cost, 5 timing, existing contracts and competitive bidding, as appropriate
- Conduct analyses to develop insourcing or outsourcing strategy 5
- Identify and implement technologies to support supply management 4
- Leverage spend through the identification, development and execution of 5 sourcing strategies
- Implement strategic sourcing plans aligned with organizational and stakeholder objectives 5
- Prepare solicitations for competitive bids, quotations and proposals with 6 pertinent specifications, terms and conditions
- Evaluate competitive offerings to identify the overall best offer for a product or service 5
CATEGORY MANAGEMENT
- Create a category management plan to meet the organizations key objectives 5
- Execute a category management plan 5
NEGOTIATION
- Prepare negotiation plan that aligns with organizational objectives 5
- Prepare and develop strategies and tactics for negotiations 4
- Lead, conduct and support negotiations with suppliers 5
LEGAL AND CONTRACTUAL
- Manage the preparation of contracts/purchase orders 5
- Award contracts to suppliers 3
- Administer contracts and/or purchase orders from award to completion or termination 5
- Perform or obtain legal review of contracts and other supply management documents 4
- Generate and follow supply management processes to ensure legal compliance 4
TASK TASK DESCRIPTION NUMBER OF QUESTIONS
SUPPLIER RELATIONSHIP MANAGEMENT
- Develop provider qualification plans to assure components, materials 4 and suppliers meet specified requirements
- Develop and manage effective relationships with suppliers 7
- Conduct provider performance evaluations 5
- Conduct regular business reviews with suppliers 4
- Identify opportunities and benefits for rationalizing the supply base 4
- Identify opportunities to drive provider innovation 3
- Develop and implement provider exit strategies 3
- Review provider performance against negotiated service level agreements (SLAs) 4
- Resolve invoice and payment problems 2
- Act as a liaison between suppliers and functional areas to ensure accurate 4 information, documentation and product flow
- Work with suppliers to identify constraints and implement value-added processes 3
COST AND PRICE MANAGEMENT
- Develop cost management program strategies for purchases 5
- Perform cost/benefit analyses 4
- Conduct spend analysis to determine strategies for specific categories 5
- Track and validate cost savings and cost avoidance 4
FINANCIAL ANALYSIS
- Prepare and/or administer a supply management department budget 3
- Develop financing strategies for purchases 3
- Verify that sufficient reporting exists 3
TOTAL 180 (including 15 unscored*)
* Included are 15 statistical data research questions which are unscored (not included in your final test score)

Supply Management Integration Exam
TASK TASK DESCRIPTION NUMBER OF QUESTIONS
SUPPLY CHAIN STRATEGY
- Develop and/or implement a material or service standardization program 5
- Implement requirements planning to align supply management activities 7 with organizational strategy
- Implement operations planning, scheduling and inventory control processes 6 to ensure optimum use of resources
- Structure the supply chain in support of the organizations business strategy 7
SALES AND OPERATIONS PLANNING – DEMAND PLANNING
- Incorporate the use of sales, inventory and capacity forecasts in the planning 6 of materials production to better meet strategic objectives and goals
- Conduct demand planning 4
SALES AND OPERATIONS PLANNING – FORECASTING
- Analyze and report on market conditions, benchmarks and industry 5 trends to internal stakeholders
- Develop supply forecasts in light of economic and technological trends 5
- Plan and communicate sourcing and supply strategies based on forecasted data 6
- Manage forecasted data with suppliers 5
- Calculate and report forecast accuracy 4
SALES AND OPERATIONS – PRODUCT AND SERVICE
- Participate in new product or service development in support of marketing efforts 5
- Participate in product-service ramp-up and/or ramp-down strategies and implementation 5
- Create systems and process improvements to help the organization meet sales goals 5
QUALITY MANAGEMENT
- Develop and/or administer a provider quality certification program 4
- Develop measurements for quality improvement 4
- Implement continuous improvement processes within the supply chain 6
TASK TASK DESCRIPTION NUMBER OF QUESTIONS
LOGISTICS AND MATERIAL MANAGEMENT
- Design transportation and distribution policies and procedures to 4 ensure optimum flow of materials
- Manage transportation, invoicing and documentation functions to 4 ensure regulatory compliance
- Manage the resolution of delivery/receiving problems 4
- Analyze provider transportation costs 5
- Develop and/or implement a warehouse management system 5
- Conduct network design and optimization to support the business model, 5 increase productivity and lower operating costs
- Oversee the day-to-day operations of a warehousing function 4
- Develop and/or implement an inventory management system 5
- Coordinate and/or monitor the movement of equipment and assets within the organization 3
- Expedite/de-expedite orders 3
- Develop and/or execute plans and metrics to reduce risk of shortages 4
- Identify cost-effective packaging that meets requirements 3
- Conduct investment recovery activities for surplus/obsolete materials 4
PROJECT MANAGEMENT
- Perform project management activities 8
TOTAL 165 (including 15 unscored*)



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ISM Supply outline

The wide financial indications to watch in 2021 | CPSM1 Cheatsheet and Questions and Answers

This year in the U.S., stimulus-pushed financial increase is the expectation. And the country will get a higher view of what that stimulus will appear to be as soon as the brand new presidential administration gives its fiscal outline.

nevertheless, there are lots of other indicators businesses may still accept as true with as they are trying to regain their footing and make plans for the new yr. however that are the warning signs to observe, and the way a good deal reliance should still groups location on them?

wise enterprise spoke with Jim Altman, center Market Pennsylvania Regional government at Huntington financial institution, about the outlook for the 2021 economic climate and what agencies should trust to investigate where, when and the way to move forward.

What are the broader economic indicators to watch?

The Institute for provide management, which surveys each manufacturing paying for managers and services procuring managers, offers a way of the way it sees company within the coming six to three hundred and sixty five days. those indicators are mostly mighty for the time being, above all on the goods aspect.

This recession has been distinctive from previous recessions because it’s impacted the features sector, which has never really been impacted by means of a recession before. There are mixed warning signs popping out of the features sector, generally because the full affect of the vaccine has yet to be realized.

items, whereas not as huge as services in the U.S. economic climate, are doing very well. but no matter if that high-quality momentum stays this yr is uncertain — the alerts are blended. as an instance, housing costs can also reasonable some this 12 months. last 12 months turned into decent for dealers, but there’s a chance this 12 months will be a bit bit stronger for patrons.

Employment is additionally providing very blended alerts. There remains a great deal of stress within the employment market around capabilities. The items market is, despite the fact, stronger in the intervening time during this regard.

The surely reason the indicators are blended is as a result of the entire results are predicated on the influence of the virus versus the vaccine — whether or now not they might be in a position to get the virus beneath control adequate this 12 months to provide consumers and agencies the confidence crucial for the financial system to grow.

How lots emphasis should still groups placed on broad financial symptoms when planning?

This past year was truly about exact-down economic advice from the federal degree. Now, extra groups are giving their advice on how they view their company relocating forward throughout the nevertheless-disrupted economic climate. As earnings season performs out, publicly traded businesses will supply their personal assistance, that will supply a extra company-selected forecast. This should still be beneficial since it will outcomes in more micro counsel versus the macro suggestions the U.S. was generally working from remaining year.

The financial advice from the federal level this previous 12 months definitely didn’t see the goods sector getting better as plenty because it did, which possible brought about more pessimism in the financial system than changed into warranted. Now there’s the chance that forecasts about the financial performance of the economic system once fully open again will be too effective.

What conversations may still companies have with their bankers now?

There had been so many never-earlier than-viewed cases this previous yr. The U.S. has by no means been via executive-mandated shutdowns. features have on no account been severely impacted by means of a recession. And there’s not ever been this much fiscal spending from important banks to aid the economic climate this right now, and it’s continuing to come in. this is uncharted territory. besides the fact that children, we’re on the other facet of this recession. It’s not clear what the economic climate will seem like with such power on small organizations. agencies will need to be vigilant about how they look at their stability sheets, as well as how they tackle some of the other indirect pressures that allows you to have an impact on corporations each internally and externally. It’s prudent for businesses to work alongside their banker and other economic advisers to consider the entire economic symptoms as they plan for the yr ahead.

Insights Banking & Finance is delivered to you with the aid of Huntington financial institution


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