CPSM1 Exam Information and Guideline
Foundation of Supply Management
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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. We 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. We will also investigate topics such as global supply chain design, logistics, and outsourcing, several other recent 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 supplier qualification plans to assure components, materials 4 and suppliers meet specified requirements
- Develop and manage effective relationships with suppliers 7
- Conduct supplier performance evaluations 5
- Conduct regular business reviews with suppliers 4
- Identify opportunities and benefits for rationalizing the supply base 4
- Identify opportunities to drive supplier innovation 3
- Develop and implement supplier exit strategies 3
- Review supplier 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 exam 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 supplier 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 supplier 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*)