Certified Professional in Supply Management

1. Session Code: CJUpdate on ISM QualificationChristina Foster, SPHRVice President, Certification & DiversityInstitute for Supply Management™Monday, May 8, 20069:20 – 10:20 am

2. Certified Professional in Supply Management

3. MISSION Lead Supply Management

4. 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.

5. 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. RankOrderofComponentsPercent 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%

6. 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

8. What We Know So Far…… • CPSM will be available 2008 • Three (3) Exams • Five years of experience • Full-time professional supply management; non-clerical, non-support • Bachelor’s degree from a regionally accredited college or university

9. 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

10. CPSMAdditional Information • Educational degrees beyond Bachelors do not reduce requirements • No grandfathering from C.P.M. to CPSM • Must take the bridge exam • Or ALL Three of the CPSM exams • Cost – not determined • Exams, applications, study materials, recertification, etc.

11. The CPSM Exam and Tasks Exam specification – Three (3) Exams • Section A - Foundation of Supply Management • Section B – Effective Supply Management Performance • Section C - Leadership in Supply Management

12. Section A - Foundation of Supply Management • Total - 25 Tasks • Contracting and Negotiations (5) • Cost and Finance (5) • International (3) • Social Responsibility (3) • Sourcing (3) • Supplier Relationship Management (6)

13. Section B– Effective Supply Management Performance Total - 24Tasks • Forecasting (3) • Logistics (4) • Materials and Inventory Management (4) • Organization and Department Assessment (4) • Planning (2) • Product Development (2) • Project Management (2) • Quality (3)

14. Section C - Leadership in Supply Management Total - 32 Tasks • Leadership (18) • Risk and Compliance (8) • Strategic Sourcing (6)

15. # of & allowed Exam A - 150 scored + 15 un-scored = 165 with 2 hours and 45 minutes allowed Exam B - 150 scored + 15 un-scored = 165 with 2 hours and 45 minutes allowed Exam C - 165 scored + 15 un-scored = 180 with 3 hours allowed Still determining specifics of exam

16. 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

17. 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

18. 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

19. 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!

20. 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

21. 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

22. 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

23. Timeline for the CPSM, C.P.M. and A.P.P. changes

24. ContinuedCommunication • 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 our website

25. Questions and Answers