Editor's Note: Supply management professionals are in more demand as companies realize profits from improved cost savings, supplier relationships and better efficiency throughout their supply network. William Frank Quiett describes the role of today's supply managers as being similar to the symphony conductor. He focuses on their importance within organizations, their ability to make a direct impact upon the bottom-line and the future of the profession.
By William F. Quiett, C.P.M., A.P.P., Consultant, William Frank & Associates
The most effective method of developing your supply chain organization is through example. A supply manager who is a C.P.M. and actively engaged in the local ISM Affiliate, provides the common ground to bring others involved in the supply chain into the program. Through interaction at meetings, seminars put on by the Affiliate and through guest speakers, the ISM Affiliate is the educational element of the supply chain and provides both the common language and goals required to bring the supply chain "symphony" together on one sheet of music.
This supply chain symphony is held together by a common set of ethics and standards so that each member performs from the same base and the required skills are obtained through a specific program of education in addition to the various talents of the members. No where else can the players immerse themselves in real world learning with the benefits of peer inputs in a noncompetitive environment.
Success is no longer something that comes from the ability to keep your job, but in fact comes from being able to add real value to the organization. As supply managers evolve into more strategic importance through supply chain management, their roles will require more and more skills and will be rewarded with more and more responsibilities in their organizations. With their position as the interface between the external suppliers and internal customers, the fact that they manage 50 to 70 percent of the revenue dollars of most organizations, and their ability to impact the bottom-line of every organization, it is no wonder that the Supply Manager has become (the key person) responsible for conducting the supply chain symphony in most organizations.
Now we must step up to the podium and conduct the most effective and efficient "music" we can make so that we meet and exceed the shareholders expectations and our supply chain partners will respond with their very best efforts. Our success will be dependent on how well we educate our team members. The ISM C.P.M. Certification program is the educational process of choice for those who desire to increase their knowledge and professionalism in world-class organizations providing world-class results.
Certified Purchasing Managers (C.P.M.) earn almost $15,000 more per year than non-certified supply management professionals, according to Purchasing Magazine's 2004 Salary Survey. The survey reveals that supply management professionals with the C.P.M. designation earn an average of $80,800 per year. Professionals without certification earn an average of $66,300 per year.
Annual salaries from this year's respondents range from $15,000 to $270,000. Median salaries for professionals in supply management rose 5%, to $63,000, an increase of $3,000 over last year's numbers. Since 1981, professionals in supply management have seen their salaries rise 114%, with 48% of this increase occurring within the last ten years. Additionally, more professionals are receiving bonuses as part of their total compensation. More than half of the survey respondents, (55%) indicate they received bonuses in 2004. Bonuses for these professionals averaged just over 10% of their annual base pay.
The survey also indicates that C.P.M.s have an average of four more years experience than do non-certified professionals. This figure corresponds directly to compensation. The typical age of survey participants was 45.6 years of age. Salaries for this group (41 to 50 years) averaged $72,300 per year.
Education continues to be one of the most important factors related to upward mobility within the supply management profession, according to the survey. Almost three quarters of the participants (71%) have a college degree or a C.P.M. designation. Better educated professionals receive the highest ranking professional positions, have the most responsibilities, work for larger companies and have a higher earning potential. For the complete survey, visit Purchasing Magazine's Web site at http://www.purchasing.com/article/CA487757.html.
Purchasing Magazine, 2004 Salary Survey
In a continuing effort to bring ISM members and industry leaders' thoughts into public discussion, we would like to hear your comments and share them with members and industry leaders worldwide. Send your comments to: Mike Shirra, ISM Marketing Department, firstname.lastname@example.org.
Earn up to 18.75 Continuing Education Hours (CEHs) towards your Recertification or Reaccreditation when you attend ISM's 90th Annual International Supply Management Conference and Educational Exhibit, May 8-11, 2005 in San Antonio.
Earn a maximum of 18.75 CEHs by attending sessions that are designed to compliment your experience and add to your continuing education. Professionals who have attained the C.P.M. and A.P.P. designations are required to reapply for recertification/reaccreditation every five years. C.P.M.s must earn 84 CEHs through continuing education and contributions to the profession from the issue date of their current certificate. A.P.P.s must earn 42 hours of continuing education from the issue of their current certificate. All contributions to the profession hours must be educational in nature.
* A documentation form will be included in the registration packet you receive when you check in at ISM Registration; or you can download it from the ISM Web site.
Continuing Education Hours can be earned in various ways. Here is a list of your options:
Register to take up to three of your C.P.M. Exam modules for half-price at this year's 90th Annual International Supply Management Conference, May 8-11 in San Antonio, TX.
If you're not yet certified, use this as an opportunity to take up to three modules of the Exam on Wednesday May 11, 2005 at half-price (special price is only good in conjunction with a paid, full Conference registration or a 2-Day pre or post Conference Seminar.) You will receive your results within 4-6 weeks.
All exams will be offered on Wednesday, May 11, 2005, paper and pencil version only.
Seating is limited, so register now and save 50% on your C.P.M. Exam modules. Visit http://www.ism.ws/ConfPlanner/Conf.cfm?ConfID=26 for more information on schedules or how to register. You may also call ISM Customer Service at 800/888-6276 or 480/752-6276 extension 401.
You must bring one valid photo I.D. with a signature that matches the name on your exam registration in order to take the exam.
Your I.D. MUST be one of the following:
If the name on your ID does not match the name on your exam registration, please contact ISM immediately. If you are unable to produce a valid I.D. on the day of your exam, you will not be allowed to test and all registration fees will be forfeited.
Take up to two C.P.M. Exam Modules during the Spring Conference for Hospitality Supply Chain Management, May 18 - 20, 2005, at the Palmer House Hilton, Chicago, IL.
If you are a supply manager in the hospitality industry and you are pursuing your Certification, then this is the place for you. Register for the Conference, take the exam on Wednesday, May 18, between 12 p.m. and 4 p.m., then relax as you enjoy the rest of the Conference. $349 ISM Members/$429. Earn 12 CEHs for your participation in this program.
* If you are not ready to start on your C.P.M., plan on attending Session YI, C.P.M. and CFPM: What Is It? What Do You Need To Know To Achieve This Goal?, presented 4:00 p.m., Thursday, May 19.
The Board of Directors for the Institute for Supply Management™, approved the granting of the Certified Purchasing Manager (C.P.M.) designation to individuals who have earned the Certified Professional Purchaser (CPP) designation through the Purchasing Management Association of Canada (PMAC). The proposal that was passed states that ISM will issue CPPs the C.P.M. designation without having to take and pass the exam portion of the C.P.M. requirements.
Each CPP who wishes to obtain the C.P.M. must complete a C.P.M. Original and Original Lifetime application. Each candidate is required to submit proof of their current CPP accreditation status along with the appropriate member or non-member application fee. Documentation of full-time professional supply management work experience is recommended in order to accumulate applicable experience toward the Lifetime C.P.M. Certification requirement of 18 years. This documentation is required when applying for lifetime status.
As of March 1, 2005, ISM is no longer accepting new A.P.P. Exam registrations. Those individuals who registered prior to March 1, 2005, will have up to one year to take their A.P.P. Exams. Candidates may still register for C.P.M. Exam modules 1 and 2, which they can use to apply for the A.P.P. If they are interested in securing A.P.P. Original/Original Lifetime accreditation, they will need to postmark their completed application no later than February 28, 2007. Individuals already holding the A.P.P. designation may still apply for reaccreditation.
An extensive study of ISM's credentialing programs, conducted in association with Knapp & Associates International, Inc., initiated ISM's decision to free up resources to strengthen other programs and undertake new initiatives. Paramount to the recommendation was the diminishing interest in the A.P.P. designation within the supply management community, which prevented the program from remaining financially feasible. The decision to cease issuing new A.P.P.s received the support of ISM's Board of Directors. As of March 2005, ISM is allocating credentialing resources to activities of greater interest and benefit to supply management professionals. In the next year, the Certified Purchasing Manager (C.P.M.) designation will also be reviewed and updated.
The A.P.P. will still be recognized and honored within the supply management profession. ISM encourages individuals who have achieved the A.P.P. designation to continue citing it as part of their professional identity and consider acquiring the C.P.M. designation. ISM will send communications to all A.P.P. professionals, and the ISM Web site will continue to offer detailed information on all Certification resources. Contact ISM Certification at email@example.com or 800/888-6276, extension 3027. For a list of Frequently Asked Questions about the changes to the A.P.P. program, click here.
With the recent changes to the A.P.P. program, there is some confusion about the timeline for the A.P.P. In ISM's initial announcement, it seemed as if February 28, 2005 was THE deadline -- that if you did not register for the A.P.P. Exam by that date, you would never be able to obtain your A.P.P. This is not true.
What if you didn't register for the A.P.P. Exam by February 28, 2005? Under current ISM policy, you can simply take C.P.M. Modules 1 and 2 instead. C.P.M. Exam modules can be applied toward the A.P.P. designation (and vice versa).
The most important deadline is February 28, 2007. That is the date by which you must postmark your A.P.P. Original and Original Lifetime application. If you postmark your original application after February 28, 2007, you will not be able to become an A.P.P.
Theoretically, under current ISM policy, you could pass C.P.M. Modules 1 and 2 on February 27, 2007 and still submit your A.P.P. Original application on time.
Under current ISM policy, candidates who wish to reaccredit may continue to do so even after February 28, 2007.
For more details on changes to the A.P.P. program, check out the FAQs section on the ISM Web site: http://www.ism.ws/Certification/APPChangeFAQs.cfm
Minimize your time away from the office by attending The Power of the Services Supply Chain: Strategies and Integration, June 2, 2005 at St. John's University on the Manhattan Campus, New York, NY.
Maximize your educational value by participating in every session. Our hand-picked speakers include leaders in supply management from world-class organizations. Sessions include:
Earn 6.25 CEHs towards Recertification or Reaccreditation. Register online at http://www.ism.ws/Conferences/ServicesSummer2005.cfm.
Discover how Radio Frequency Identification affects the role of supply management. Prepare your organization for this revolutionary technology by attending these dynamic new sessions, presented by Charlie Robertson, a supply chain consultant who holds an extensive background in purchasing, logistics, material control and finance:
PROFESSIONAL SEMINAR: Understanding and Using RFID (#4244)
Thursday, May 12, 2005 in San Antonio, TX.
Spend the day with ISM to find out how this cutting-edge "smart label" technology will impact your daily business activities. Examine the 'real' potential for return on investment and how RFID applies to several industries and commodities. Know the next steps you should consider and how to prepare for the future. Attend this seminar and earn 7 CEHs. Save when you register online, or contact Customer Service at 800/888-6276 or 480/752-6276, extension 401.
WEB SEMINAR: RFID Solutions for the Supply Management Professional
Wednesday, May 18, 2005
10:00 a.m. Pacific/1:00 p.m. Eastern
A follow-up session to ISM's previous Web seminar, this advanced one-hour session includes actual point solution case studies and solutions that apply in most manufacturing and logistics applications. Attend this seminar and earn one CEH.
Registration fees are $99 per individual or $179 for two or more attendees per connection.
For more information, visit ISM online or contact Ron Turnbow, C.P.M., Program Manager, at 800/888-6276 or 480/752-6276, extension 3133.
Because the supply management profession is constantly increasing in complexity, the exclusive ISM member discounts on exam preparation, educational materials and testing are extremely important for those professionals interested in staying on the "cutting edge" and saving money. When you become a member of ISM, you receive:
Examination Fees (C.P.M. and A.P.P. — Computer-Based):
|Nonmember Rate||Member Rate||Member Savings|
* Group onsite testing is available. Contact the ISM Sales Department for more information, firstname.lastname@example.org, or 800/888-6276, ext. 3049.
|C.P.M. Original Application Fee|
|Nonmember - $150||Member - $90||Member Savings - $60|
|A.P.P. Original Application Fee|
|Nonmember - $105||Member - $65||Member Savings - $40|
|C.P.M. Recertification Application Fee|
|Nonmember - $100||Member - $65||Member Savings - $35|
|A.P.P. Reaccreditation Application Fee|
|Nonmember - $80||Member - $50||Member Savings - $30|