The Institute for Supply Management (ISM) stands as a beacon of excellence within the supply management community. Founded in 1915, ISM is the largest nonprofit association of its kind, committed to providing certification, development, education, and research for professionals and corporations in supply management and purchasing. Through its efforts, ISM strives to advance supply management practices, driving value and competitive advantage. Notably, the organization publishes the ISM Manufacturing Report on Business, a trusted economic indicator.
Key Takeaways
- The Institute for Supply Management is a leading nonprofit supply management association established in 1915.
- Initially named the National Association of Purchasing Agents, it was rebranded to ISM in 2002.
- ISM provides certification, development, education, and research for supply management and purchasing industries.
- The Certified Professional in Supply Management (CPSM) and Certified Professional in Supplier Diversity (CPSD) are prestigious certifications offered by ISM.
- The ISM Manufacturing Report on Business, including the Purchasing Managers’ Indexes, is a vital economic indicator.
Understanding the Institute for Supply Management (ISM)
The ISM, founded in 1915, originally operated under the name National Association of Purchasing Agents. In 2002, it adopted the Institute for Supply Management name to better reflect its mission and scope. As of 2021, ISM boasts over 50,000 members in more than 100 countries, serving as an invaluable resource for industry professionals and corporations. Managed by experienced supply management leaders, ISM offers a range of services.
Certifications offered by ISM include the Certified Professional in Supply Management (CPSM) and the Certified Professional in Supplier Diversity (CPSD). The CPSM represents unparalleled professional competency, built on in-depth analyses across industries. The CPSD helps guide companies through supplier diversity challenges, identifying innovative suppliers, and exploring new markets. Recertification involves continuing education, work experience, volunteering, or exams.
ISM also publishes the ISM Report on Business, featuring the Manufacturing and Services (non-manufacturing) Purchasing Managers’ Indexes (PMIs). These indexes, released monthly, are critical economic indicators trusted by industry professionals and economists. An additional Hospital PMI is also provided, offering sector-specific insights.
Professionals holding a CPSM designation can earn up to 10% more than their industry peers, underscoring the value of ISM certification.
The Intricacies of Supply Management
Supply management extends far beyond the procurement of raw materials. It encompasses a robust process that includes:
- Identifying, sourcing, negotiating, and procuring essential goods or services.
- Formulating and executing strategies to maintain and enhance relationships with suppliers.
- Employing technology and procedures to streamline procurement.
- Analyzing and interpreting supply and demand theories to make informed decisions.
Supply management professionals must coordinate various logistics, manage inventory, budget effectively, oversee workforce management, and ensure the seamless operation of business activities.
The Institute for Supply Management continues to play a crucial role in the professional development of supply management practitioners, enhancing the efficiency and effectiveness of supply chains worldwide.
Related Terms: Certified Professional in Supply Management, Purchase Managers’ Index, Economic Indicator, Supply Chain, Certified Professional in Supplier Diversity.
References
- Institute for Supply Management. “100 Years of Excellence in Supply Management”.
- Institute for Supply Management. “Inside Supply Management Magazine”, Page 20.
- Institute for Supply Management. “Inside Supply Management Magazine”, Page 25.
- Institute for Supply Management. “ISM Corporate Program”.
- Institute for Supply Management. “ISM Leadership & Governance”.
- Institute for Supply Management. “The Most Recognized Supply Management Certification”.
- Institute for Supply Management. “The Leading Supplier Diversity Certification”.
- Institute for Supply Management. “Maintain Your Supply Management Certification”.
- Institute for Supply Management. “ISM Report On Business”.
