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Exam 1: Foundation of Supply Management

  • 3)

    Supplier and subcontractor safety (e.g., safety history)

    • A)

      Audit and review

    • B)

      Training

  • 4)

    Customer-driven requirements 1-E. Sourcing 1-E-1

Analyze potential sources of goods or services. Knowledge of: 1) Supply base analysis

A) Degrees of competition

1.0 2.0 3.0 4.0 5.0 6.0 Nature

Full and open competition Limited competition Technical competition Single source Sole source Multiple source of sources and their effects on

procurement A) Manufacturers vs. distributors B) Large vs. small suppliers C) National vs. local suppliers D) International vs. domestic suppliers

1.0 2.0 3.0 4.0 5.0

Exchange rates Payment processes Duties Transportation costs and timing Applicable laws

2)

  • E)

    Mandatory sources of supply

  • F)

    Emergency sources

  • G)

    Small and historically underutilized

businesses (HUB, WOB, VOB, MOB) H) Cooperative/consortium buying

    • I)

      Joint ventures

    • J)

      Internal vs. external sources

  • 3)

    Existing vs. new sources

    • A)

      Market conditions

    • B)

      Product complexity/technology changes

    • C)

      Urgency of need

    • D)

      Quality expectations

    • E)

      Supplier processes

    • F)

      Adequacy of competition

    • G)

      Cost versus value of sources

    • H)

      Long-term needs

    • I)

      Long-term relationships

    • J)

      Supply base optimization

    • K)

      Change in supplier’s organization

    • L)

      Supply continuity

    • M)

      Internet-based searches

1.0 Meta database search (e.g., Google, Dogpile, etc.)

2.0 Online buying guides

  • N)

    Trade shows/periodicals

  • O)

    Peer benchmarking

1-E-2

Evaluate competitive offerings to determine the overall best offer for a product/service.

Knowledge of:

  • 1)

    Decision matrix/multi-attribute evaluation tool

  • 2)

    Receiving, controlling and analyzing offers

  • 3)

    Offer responsiveness

    • A)

      Specifications/statements of work

    • B)

      Quality requirements

    • C)

      Terms and conditions

    • D)

      Product/service substitutions

    • E)

      Use of technical proposals (unpriced)

ISM CPSM Exam Specifications

1-E

11

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