1. ISM’s Certification Programs Fall 2006

2. Agenda Update on the new Qualification Update on the new Qualification –Requirements –Exam Specification –Timelines Update on C.P.M. Update on C.P.M. Impact of Certification changes Impact of Certification changes Questions Questions

3. How did we get here? Market Study Market Study Job Analysis Process Job Analysis Process Certification Committee recommendation based upon results of Job Analysis Certification Committee recommendation based upon results of Job Analysis

4. 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%

5. New Qualification Requirements 5 years experience 5 years experience Professional - non-clerical; non-support Professional - non-clerical; non-support Degree from a regionally accredited college or university 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 Successful passing of the bridge exam with a valid C.P.M. OR Successful passing of the three new qualification exams

6. What We Know So Far…… oNew Qualification will be available 2008 oExam 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 oFive years of supply management experience o Full-time; non-clerical, non-support oBachelor’s degree from a regionally accredited college or university

7. Reason for Degree Requirement o Change in supply chain profession o Decision is final oThis decision will not be re-evaluated o Ability to recertify oIf you have your C.P.M. – without a degree you may continue to recertify

8. New Qualification Additional Information oEducational degrees beyond Bachelors do not reduce requirements oNo grandfathering from C.P.M. to the new qualification - You must take the bridge exam - Or ALL three of the qualification exams oCost – not determined - Exams, applications, study materials, recertification, etc.

9. New Qualification Recertification Requirements Every three (3) years with 60 Continuing Education Hours (CEHs) Every three (3) years with 60 Continuing Education Hours (CEHs) Categories for earning CEHs – college courses & seminars (taken or taught), contributions to the profession, articles Categories for earning CEHs – college courses & seminars (taken or taught), contributions to the profession, articles Candidates will be able to retake the new Qualification Exams for 20 CEHs each but only in their last year of certification. Candidates will be able to retake the new Qualification Exams for 20 CEHs each but only in their last year of certification. One Year Grace period – resets certification date One Year Grace period – resets certification date

10. New Qualification Study Materials Study Guide Study Guide Knowledge Series Knowledge Series Diagnostic Kit Diagnostic Kit Online Review Course for Bridge Exam Online Review Course for Bridge Exam

11. New Qualification Exam Specifications Exam 1-Foundation of Supply Management 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 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 Exam 3- Leadership in Supply management –32 tasks –Leadership; risk and compliance; strategic sourcing

12. Exam 1 - Contracting & Negotiation Prepare solicitations for competitive bids, quotations and proposals with pertinent specifications, terms and conditions. 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. 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. Lead/conduct/support negotiations with suppliers to obtain desired results. Manage the preparation and/or issuance of contracts/purchase orders/agreements. Manage the preparation and/or issuance of contracts/purchase orders/agreements. Administer contracts/purchase orders from award to completion or termination. Administer contracts/purchase orders from award to completion or termination.

13. Exam 1 - Cost/Finance Prepare and/or administer a supply management department budget. Prepare and/or administer a supply management department budget. Develop a cost management program strategies for purchases. Develop a cost management program strategies for purchases. Identify savings potential and opportunities and strategies for specific categories through spend analysis. Identify savings potential and opportunities and strategies for specific categories through spend analysis. Perform cost/benefit analyses on acquisitions. Perform cost/benefit analyses on acquisitions. Develop financing and leveraging strategies for purchases. Develop financing and leveraging strategies for purchases.

14. Exam 1 - International Identify and assess international markets to source goods and services. Identify and assess international markets to source goods and services. Develop international sources of materials and services. Develop international sources of materials and services. Develop and maintain documentation regarding cross-border transactions. Develop and maintain documentation regarding cross-border transactions.

15. Exam 1 - Social Responsibility Develop and act upon a code of business conduct for the supply management function and external suppliers. 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. 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. Implement, monitor and promote organizational and supply chain safety policies and procedures.

16. Exam 1 - Sourcing Analyze potential sources of goods/or services. Analyze potential sources of goods/or services. Evaluate competitive offerings to determine the overall best offer for a product/service. Evaluate competitive offerings to determine the overall best offer for a product/service. Plan and communicate sourcing and supply strategies based on forecasted data. Plan and communicate sourcing and supply strategies based on forecasted data.

17. Exam 1 – Supplier Relationship Mgt. Identify opportunities and benefits for rationalizing supply base. Identify opportunities and benefits for rationalizing supply base. Develop/manage effective relationships with suppliers. Develop/manage effective relationships with suppliers. Develop/implement a supplier diversity program. 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). Develop new supplier qualification plans and reports to assure components, materials and suppliers meet specified requirements (regulatory, safety, reliability, quality). Conduct supplier performance evaluations. Conduct supplier performance evaluations. Develop and execute supplier exit strategies. Develop and execute supplier exit strategies.

18. 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. 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. Develop supply forecasts in light of economic, competitive, technology, market and currency trends and conditions that affect procurement. Manage forecasted data with suppliers. Manage forecasted data with suppliers.

19. Exam 2 - Logistics Design/modify logistics facility layouts and equipment designs to support business model, increase productivity and lower operating costs. 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. 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 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. Manage the resolution of delivery/receiving problems including freight loss and damage claims.

20. Exam 2 – Materials & Inventory Management Develop/implement a material and/or service standardization program. Develop/implement a material and/or service standardization program. Develop/implement a warehouse and inventory management system. Develop/implement a warehouse and inventory management system. Coordinate and/or monitor the movement of equipment and assets within the organization. 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. Develop, oversee and execute multi-channel disposition plan for excess inventory and finished goods.

21. Exam 2 - Organization/ Department Assessment Monitor work against business plans and take action to resolve variances or adjusts plans as appropriate. 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 performance criteria and evaluate supply management staff performance. Develop tools and processes to measure, report and improve compliance with supply management policies. Develop tools and processes to measure, report and improve compliance with supply management policies. Analyze and resolve issues raised in supply management audit reports. Analyze and resolve issues raised in supply management audit reports.

22. 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. 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. 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. Participate in product/service development or specification/requirement changes that support organizational merchandising and marketing efforts to meet customer needs.

23. Exam 2 - Product Development Manage ramp-up strategy and implementation to full-scale production for new product introductions. 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. Perform project management activities representing the supply management organization. Implement a continuous improvement process within the supply chain in accordance with organizational objectives. Implement a continuous improvement process within the supply chain in accordance with organizational objectives.

24. Exam 2 - Quality Develop/administer a supplier certification program. Develop/administer a supplier certification program. Develop measurements for continuous quality improvement and target setting. Develop measurements for continuous quality improvement and target setting. Develop, measure and evaluate quality requirements to continuously improve supplier performance. Develop, measure and evaluate quality requirements to continuously improve supplier performance.

25. Exam 3 - Leadership Represent the supply management organization in decisions related to the organization-wide or project objective setting, budgeting, staffing and policies. 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 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. 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. 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. Develop/implement changes to the organization's supply management policies as needed.

26. Exam 3 – Leadership (continued) Participate in company acquisitions and/or mergers, and/or divestitures to assure the continuity of supply and capture synergy opportunities. 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. 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). 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. 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. Market the value of strategic sourcing and sourcing strategies and initiatives to management and internal customers.

27. Exam 3 – Leadership (continued) Evaluate the supply management organizational structure and modify as necessary in order to achieve the optimal structure. 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. Hire, develop, retain, promote and/or dismiss supply management personnel. Supervise and lead human resources to achieve initiatives. Supervise and lead human resources to achieve initiatives. Conduct/authorize job training for the professional development of the staff. Conduct/authorize job training for the professional development of the staff. Develop/manage/evaluate/measure relationships with internal departments. Develop/manage/evaluate/measure relationships with internal departments.

28. Exam 3 – Leadership (continued) Develop/utilize criteria for evaluating supply management department performance. Develop/utilize criteria for evaluating supply management department performance. Conduct role design evaluation and potential job redesign requirements. 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. Create and manage a succession plan, allocating work assignments in such a way as to provide career development and growth opportunities.

29. 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, 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). 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. Implement supply management processes in consideration of legal issues. Develop/implement/maintain a database/physical filing system of relevant information. Develop/implement/maintain a database/physical filing system of relevant information.

30. Exam 3 - Risk and Compliance (continued) Verify the existence, accuracy and completeness of relevant financial transactions and commitments to third parties. 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. 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. Manage and control the storage/disposal of hazardous/regulated materials and related documentation. Comply with programs that prevent and respond to discrimination or harassment. Comply with programs that prevent and respond to discrimination or harassment.

31. Exam 3 - Strategic Sourcing Establish and execute strategic sourcing plans, in congruence with organizational objectives and sourcing strategies. Establish and execute strategic sourcing plans, in congruence with organizational objectives and sourcing strategies. Establish and standardize strategic sourcing procedures and business process improvements. Establish and standardize strategic sourcing procedures and business process improvements. Identify, evaluate, select and implement technologies that support supply management functions throughout the organization. Identify, evaluate, select and implement technologies that support supply management functions throughout the organization. Leverage spend through identification, prioritization, development and execution of strategies. Leverage spend through identification, prioritization, development and execution of strategies. Conduct analysis to determine insourcing or outsourcing strategy. Conduct analysis to determine insourcing or outsourcing strategy. Create new systems and process improvements to help the organization meet sales goals. Create new systems and process improvements to help the organization meet sales goals.

32. So what will these Exams look like? # of Questions & time allowed to take exam Exam 1- 150 scored + 15 un-scored=165 with 2 hours and 45 minutes allowed Exam 2 - 150 scored + 15 un-scored=165 with 2 hours and 45 minutes allowed 2 hours and 45 minutes allowed Exam 3 - 165 scored + 15 un-scored = 180 with 3 hours allowed Still determining specifics of bridge exam

33. C.P.M. Requirements 5 years experience or 3 years with a four year degree from an accredited college or university 5 years experience or 3 years with a four year degree from an accredited college or university Experience= Experience= –professional- non-clerical; non-support Maintain recertification every 5 years, may continue to recertify Maintain recertification every 5 years, may continue to recertify Lifetime Certification – 18 years of experience Lifetime Certification – 18 years of experience These requirements have not changed

34. C.P.M. Recertification Requirements Every Five (5) years with 84 Continuing Education Hours (CEHs) Every Five (5) years with 84 Continuing Education Hours (CEHs) Categories for earning CEHs – college courses & seminars (taken or taught), contributions to the profession, articles. Categories for earning CEHs – college courses & seminars (taken or taught), contributions to the profession, articles. Candidates will be able to retake C.P.M. Modules 3 &/or 4 for 42 CEHs each (not available for registration after 12/31/2008). Candidates will be able to retake C.P.M. Modules 3 &/or 4 for 42 CEHs each (not available for registration after 12/31/2008). One Year Grace period – does not reset certification date One Year Grace period – does not reset certification date

35. Current Costs Exam Registration Fees per Module (as of 1/05) MemberNon-Member Domestic C.P.M. Testing$120.$180. International C.P.M. Testing$165.$220. Application Fees (as of 1/05) MemberNon-Member C.P.M. Original$ 90.$150. C.P.M Recertification$ 65.$100. A.P.P. Original$ 65. $105. A.P.P. Reaccreditation$ 50.$ 80.

36. C.P.M. Study Materials Available Study Guide Study Guide Diagnostic Kits Diagnostic Kits Bibliographic Reference Keys Bibliographic Reference Keys Articles for Exam Preparation Articles for Exam Preparation ISM Knowledge Series - Volumes 1 through 4 ISM Knowledge Series - Volumes 1 through 4 Review Programs Review Programs The Supply Management Handbook The Supply Management Handbook Annual Conference proceedings Annual Conference proceedings

37. Important Dates 2/28/2007 – Postmark cut-off date for A.P.P. Original/Original Lifetime Applications 2/28/2007 – Postmark cut-off date for A.P.P. Original/Original Lifetime Applications 2008 – New Qualification Available 2008 – New Qualification Available 12/31/2008 – Postmark cut-off date for C.P.M. Exam Registration processing* 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 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 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 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 1/1/2014 – Bridge Exam no longer available to test *Note: Exam Registrations are valid for one (1) year from the date of registration.

38. Marketing Plans o ISM has a marketing and communication plan to promote the credentialing programs to continue to lead supply management o ISM is working with colleges and universities to continue to promote our programs

39. ISM’s Certification Department seeks your expertise!!! If you or someone you know is interested in assisting in writing questions, developing and conducting review sessions or being on the Certification Committee please contact us.

40. Certification Department contacts: Customer Service: 800-888-6276 ext 401 Customer Service: 800-888-6276 ext 401 Information line - ext. 3027 Information line - ext. 3027 certification@ism.ws certification@ism.ws Lyndsey Ferro – administrative support ext. 3044 Lyndsey Ferro – administrative support ext. 3044 Althea (Al) Levine - questions regarding application process ext. 3094 Althea (Al) Levine - questions regarding application process ext. 3094 David Migliore - concerns related to onsite & Prometric testing ext. 3074 David Migliore - concerns related to onsite & Prometric testing ext. 3074 Karen Collins - Manager ext. 3123 Karen Collins - Manager ext. 3123 Christina Foster - VP ext. 3011 Christina Foster - VP ext. 3011

41. Thank you! Questions?