Session Code: CJ Update on ISM Qualification Christina Foster, SPHR Vice President, Certification & Diversity Institute for Supply Management™ Monday, May 8, :20 – 10:20 am

Certified Professional in Supply Management

Lead 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.

Components Survey Results Rank Order of Components Percent Purchasing/Procurement99% Strategic Sourcing98% Logistics83% Quality83% Inventory Control81% Materials Management81% Transportation/Traffic/Shipping79% Disposition/Investment Recovery75% Warehousing74% Distribution71% Receiving69% Packaging63% Product/Service Development63% Manufacturing Supervision34% 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.

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

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

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

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

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

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)

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

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

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

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

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 Why not continue the C.P.M., since it has significant worldwide recognition?

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! Should I get my C.P.M. now?

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

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

Timeline for the CPSM, C.P.M. and A.P.P. changes Last day to apply for A.P.P. Last day to register for C.P.M. exam Last day to take C.P.M. exam Last day to apply for C.P.M. Last day to register for Bridge exam Last day to take Bridge exam February 28, 2007 December 21, 2008 December 31, 2009 Also last day for current C.P.M.s to take Module 3-4 to recertify. December 31, 2013 December 31, 2014

Continued Communication Concerning the C.P.M. and the CPSM Relevant timelines Relevant information Make every effort to contact all those affected E-newsletters, , snail mail… Update Web site FAQs and other information Note: Be sure to sign up to receive new qualification updates on our website

Questions and Answers