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Exam 2: Effective Supply Management Performance

2-A. Forecast

2-A-1

Perform analysis and provide data on current and future and global/domestic market conditions, benchmarks and industry trends to management and/or user departments.

Knowledge of:

  • 1)

    General issues in economics

    • A)

      Industries, firms and markets

    • B)

      Global markets

    • C)

      Business cycles and trends (e.g., leadtime)

    • D)

      Transportation trends

    • E)

      Economic indicators (e.g., ISM Report On Business ®)

    • F)

      Governmental policies

    • G)

      Political stability/instability

    • H)

      World industrial migration

    • I)

      Import/export issues

    • J)

      Environmental

  • 2)

    Market analysis

    • A)

      Porter’s Five Forces

    • B)

      SWOT analysis

    • C)

      Establish benchmarks through industry database

    • D)

      RFI

    • E)

      Supplier research

  • 3)

    Supply market complexity vs. impact on business

  • A)

    Opportunity assessment

  • B)

    Prioritization

1.0 Type of purchase 2.0 Strategic 3.0 Routine

4.0 Bottleneck 5.0 Leverage buy 4) Analytical/Financial skills

2-A-2

Develop supply forecasts in light of economic, com- petitive, technology, market and currency trends and conditions that affect procurement.

Knowledge of:

  • 1)

    Purpose of forecasting the following:

    • A)

      Quantity

    • B)

      Industry capacity and availability

    • C)

      Cost or price

    • D)

      Technology

    • E)

      Planning

    • F)

      Assuring supply

  • 2)

    Economic concepts and terms used in forecasting

    • A)

      Price indices

1.0 P.P.I. 2.0 C.P.I. 3.0 Implicit price deflator

  • B)

    Interest rates

  • C)

    Economic indicators

1.0 Leading

2.0 Lagging

3.0 Coincident

D)

Inflation/deflation

E)

Capacity utilization

F)

Economic indexing

G)

GDP

H)

Balance of merchandise

I)

Balance of payments

J)

Exchange rates

trade

ISM CPSM Exam Specifications

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