ISM CPSM1 : Foundation of Supply Management Exam

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Exam Number : CPSM1
Exam 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. 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 syllabus 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 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 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*)



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ISM Supply real questions

‘loopy’ prices and rampant shortages frustrate producers and threaten to sluggish financial recovery, ISM records show | CPSM1 test Questions and braindumps

The numbers: hovering prices and common shortages of parts, substances and labor threaten to undercut quickly-starting to be American manufacturers and throw up a roadblock to a U.S. economy still recovering from the coronavirus.

The Institute for supply management observed its manufacturing index fell to 60.7% in April from a 38-12 months excessive of sixty four.7% within the prior month.

Corrects ISM studying for March.

The boost fell well wanting Wall highway expectations. Economists surveyed through Dow Jones and The Wall highway Journal had forecast the ISM index to area as much as sixty five%.

read: Jobs are coming returned because the U.S. economic climate accelerates and the coronavirus wanes

What came about: whereas readings over 60% are first-rate, top manufacturing executives say they are struggling to beat key shortages that are inflicting the costs of most goods to upward push, in some situations sharply.

“metal costs are loopy high. The ordinary tests on the home metal mills don't seem to be functioning — imported metal is distorted via the section 232 tariffs,” observed a senior executive of a brand of fabricated metal items.

“In 35 years of buying, I’ve certainly not considered every little thing like these extended lead instances and rising expenditures — from colorings, film, corrugate to resins, they’re all up,” noted a senior govt at a maker of rubber items.

The ISM’s expense gauge rose to a 13-yr peak and become twice as excessive in comparison to the remaining month before the pandemic all started. It’s additionally taking longer for companies to attain elements, produce their personal items and get them out to purchasers immediately.

give shortages aren’t the simplest problem. producers struggled to find knowledgeable laborers even before the pandemic but it surely’s simplest gotten worse.

“worker absenteeism, short-time period shutdowns because of half shortages, and difficulties in filling open positions proceed to be issues that restrict manufacturing-increase advantage,” noted Timothy Fiore, chairman of the ISM survey.What isn’t an issue is demand.

The index for brand spanking new orders slipped a few elements to 64.3%, however that’s nevertheless an awfully excessive level that’s seldom been matched. And all 18 fundamental industries tracked with the aid of the survey reported they're turning out to be — the primary time that’s happened in view that 2014.

production also came off recent highs, nevertheless it become still somewhat robust.

large photo: The especially potent recovery within the U.S. economic climate this 12 months, fueled by using huge executive stimulus, has spawned an incredible enhance popular for loads of goods. Yet manufacturers can’t keep up, specially with international supply chains still being disrupted with the aid of the coronavirus. Most different international locations haven't made as a great deal growth in battling the virus.

These problems are likely to persist for awhile and push U.S. inflation to the highest level in years.

The Federal Reserve insists any boost will simplest be transient and that inflation may still subside once the world economy is ordinarily recovered. If the Fed is wrong, though, it may drive the significant bank to carry U.S. interest costs sooner than it plans and throw one more kink into the recovery.

What they are saying?  in brief, essentially the most urgent difficulty within the manufacturing sector isn’t a lack of demand, it’s the capacity to fulfill demand,” pointed out chief economist Richard Moody of regions fiscal.

Market response: The Dow Jones Industrial usual DJIA, -0.48% and S&P 500 SPX, -0.29% both rose in Monday trades.




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