The Certified Professional in Supply Management (CPSM) is a globally recognized professional credential offered by the

Institute for Supply Management Institute for Supply Management (ISM) is the world's oldest and largest supply management association. Founded in 1915, the U.S.-based not-for-profit educational association serves professionals and organizations with interest in supply managemen ...

(ISM) Being certified as a CPSM indicates the holder has achieved mastery of supply management’s

core competencies Core or cores may refer to: Science and technology * Core (anatomy), everything except the appendages * Core (laboratory), a highly specialized shared research resource * Core (manufacturing), used in casting and molding * Core (optical fiber), t ...

. The certification program’s emphasis on strategic

supply chain A supply chain is a complex logistics system that consists of facilities that convert raw materials into finished products and distribute them to end consumers or end customers, while supply chain management deals with the flow of goods in distri ...

integration, along with

procurement Procurement is the process of locating and agreeing to terms and purchasing goods, services, or other works from an external source, often with the use of a tendering or competitive bidding process. The term may also refer to a contractual ...

and

Supply Chain Management In commerce, supply chain management (SCM) deals with a system of procurement (purchasing raw materials/components), operations management, logistics and marketing channels, through which raw materials can be developed into finished produc ...

, prepares the practitioner to move beyond tactical thinking in order to generate strategic solutions and to evolve continually in the rapidly changing supply management environment. Since the certification program's inception, ISM has granted nearly 13,000 CPSMs and has current CPSM holders in 68 countries.

History

Up until 2008, the highest credential that ISM offered was the Certified Purchasing Manager (C.P.M.) designation, which the organization first offered in 1974. The C.P.M. required qualified applicants to pass four exam modules that measured their aptitude in areas such as

purchasing Purchasing is the procurement process a business or organization uses to acquire goods or services to accomplish its goals. Although there are several organizations that attempt to set standards in the purchasing process, processes can vary gr ...

, supplier relations, quality issues,

business law Commercial law (or business law), which is also known by other names such as mercantile law or trade law depending on jurisdiction; is the body of law that applies to the rights, relations, and conduct of persons and organizations engaged in ...

, personnel challenges,

diversity Diversity, diversify, or diverse may refer to: Business *Diversity (business), the inclusion of people of different identities (ethnicity, gender, age) in the workforce *Diversity marketing, marketing communication targeting diverse customers * ...

and more. As respected as the C.P.M. was in the procurement profession, ISM determined that a new level of certification was needed to address the evolving needs of the supply management professional and the increasing complexity of business, including the intricacies of

globalization Globalization is the process of increasing interdependence and integration among the economies, markets, societies, and cultures of different countries worldwide. This is made possible by the reduction of barriers to international trade, th ...

. ISM’s development of the CPSM qualification allowed it to move beyond a narrow focus on purchasing to roles that require a broader knowledge of supply management and leadership. With the introduction of the new qualification, ISM discontinued testing for the C.P.M. designation and transitioned it to a recertification-only status. During a transitional period that ended in 2015, ISM offered those holding a C.P.M. qualification the opportunity to take a bridge exam to qualify for a CPSM certification.

Criteria

To obtain a CPSM designation, the association requires candidates to have three years of full-time, professional supply management experience (nonclerical, nonsupport) with a regionally accredited bachelor's degree or international equivalent or five years of supply management experience (nonclerical, nonsupport) without a degree. Before qualifying for the CPSM designation, candidates must pass three exam modules.

Exam Focus

Each of the three required CPSM exam modules has a different focus. The exam modules can be taken in any order. Exam 1: Supply Management Core * Sourcing * Category management *

Negotiation Negotiation is a dialogue between two or more parties to resolve points of difference, gain an advantage for an individual or Collective bargaining, collective, or craft outcomes to satisfy various interests. The parties aspire to agree on m ...

Legal Law is a set of rules that are created and are law enforcement, enforceable by social or governmental institutions to regulate behavior, with its precise definition a matter of longstanding debate. It has been variously described as a Socia ...

Contract A contract is an agreement that specifies certain legally enforceable rights and obligations pertaining to two or more parties. A contract typically involves consent to transfer of goods, services, money, or promise to transfer any of thos ...

ual * Supplier Relationship Management *

Cost Cost is the value of money that has been used up to produce something or deliver a service, and hence is not available for use anymore. In business, the cost may be one of acquisition, in which case the amount of money expended to acquire it i ...

Price A price is the (usually not negative) quantity of payment or compensation expected, required, or given by one party to another in return for goods or services. In some situations, especially when the product is a service rather than a ph ...

management *

Financial Analysis Financial analysis (also known as financial statement analysis, accounting analysis, or analysis of finance) refers to an assessment of the viability, stability, and profitability of a business, sub-business, project or investment. It is per ...

Exam 2: Supply Management Integration *

Supply chain A supply chain is a complex logistics system that consists of facilities that convert raw materials into finished products and distribute them to end consumers or end customers, while supply chain management deals with the flow of goods in distri ...

strategy *

Demand In economics, demand is the quantity of a goods, good that consumers are willing and able to purchase at various prices during a given time. In economics "demand" for a commodity is not the same thing as "desire" for it. It refers to both the desi ...

planning *

Forecasting Forecasting is the process of making predictions based on past and present data. Later these can be compared with what actually happens. For example, a company might Estimation, estimate their revenue in the next year, then compare it against the ...

* Product & service *

Quality management Total quality management, Total Quality management (TQM), ensures that an organization, product, or service consistently performs as intended, as opposed to Quality Management, which focuses on work process and procedure standards. It has four mai ...

Logistics Logistics is the part of supply chain management that deals with the efficient forward and reverse flow of goods, services, and related information from the point of origin to the Consumption (economics), point of consumption according to the ...

materials management Materials management is a core supply chain function and includes supply chain planning and supply chain execution capabilities. Specifically, materials management is the capability firms use to plan total material requirements. The material re ...

Project Management Project management is the process of supervising the work of a Project team, team to achieve all project goals within the given constraints. This information is usually described in project initiation documentation, project documentation, crea ...

Exam 3: Leadership & Transformation in Supply Management *

Leadership Leadership, is defined as the ability of an individual, group, or organization to "", influence, or guide other individuals, teams, or organizations. "Leadership" is a contested term. Specialist literature debates various viewpoints on the co ...

Strategy Strategy (from Greek στρατηγία ''stratēgia'', "troop leadership; office of general, command, generalship") is a general plan to achieve one or more long-term or overall goals under conditions of uncertainty. In the sense of the " a ...

development *

Stakeholder engagement Stakeholder engagement is the process by which an organization involves people who may be affected by the decisions it makes or can influence the implementation of its decisions. They may support or oppose the decisions, be influential in the organ ...

* People

development Development or developing may refer to: Arts *Development (music), the process by which thematic material is reshaped * Photographic development *Filmmaking, development phase, including finance and budgeting * Development hell, when a proje ...

coaching Coaching is a form of development in which an experienced person, called a ''coach'', supports a learner or client in achieving a specific personal or professional goal by providing training and guidance. The learner is sometimes called a ''coa ...

* Systems capabilities &

technology Technology is the application of Conceptual model, conceptual knowledge to achieve practical goals, especially in a reproducible way. The word ''technology'' can also mean the products resulting from such efforts, including both tangible too ...

Risk In simple terms, risk is the possibility of something bad happening. Risk involves uncertainty about the effects/implications of an activity with respect to something that humans value (such as health, well-being, wealth, property or the environ ...

& Compliance * Corporate

Social Responsibility Social responsibility is an ethical concept in which a person works and cooperates with other people and organizations for the benefit of the community. An organization can demonstrate social responsibility in several ways, for instance, by do ...

Maintaining Certification

To maintain the integrity of the credential, ISM requires CPSM holders to continue learning and developing their skills throughout their career. The CPSM certification is valid for three years, and the holder must apply for recertification to maintain the designation. To be eligible for recertification, CPSM holders must earn 60 hours of approved continuing education through any combination of: * Taking semester-long college courses. * Attending seminars, conferences, and educational programs; teaching courses; and publishing journal articles. * Participating in work-related training (either taken or taught) involving business-related topics. * Contributing to the profession (holding certain offices in ISM or an ISM

affiliates In the broadcasting industry (particularly in North America, and even more in the United States), a network affiliate or affiliated station is a local broadcaster, owned by a company other than the owner of the network, which carries some or al ...

). * Retaking CPSM exams (during a certain time frame) or obtaining a Certified Professional in Supplier Diversity (CPSD) certification from ISM. After a designated one-year grace period, a professional whose certification has lapsed must retake all three exams.

References

External links

* {{Official website, 1=https://www.instituteforsupplymanagement.org/ Professional titles and certifications