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ISM CORe Exam Syllabus Topics:

SectionWeightObjectives
Negotiation15%- Negotiation Preparation
  • 1. Research supplier background
  • 2. Define negotiation objectives
  • 3. Develop negotiation strategy
  • 4. Identify leverage points
- Negotiation Execution
  • 1. Manage concessions
  • 2. Reach agreements
  • 3. Document outcomes
  • 4. Conduct negotiation sessions
Category Management25%- Category Execution
  • 1. Implement sourcing initiatives
  • 2. Monitor market changes
  • 3. Optimize category performance
  • 4. Manage contracts
- Category Strategy Development
  • 1. Align with business objectives
  • 2. Develop category plans
  • 3. Analyze market dynamics
  • 4. Define category scope
Contract Management15%- Contract Development
  • 1. Include compliance requirements
  • 2. Define service levels
  • 3. Draft contract terms
  • 4. Establish pricing structures
- Contract Administration
  • 1. Resolve contract disputes
  • 2. Monitor contract performance
  • 3. Ensure contract compliance
  • 4. Manage contract changes
Sourcing30%- Supplier Management
  • 1. Implement supplier development programs
  • 2. Develop supplier metrics
  • 3. Evaluate supplier performance
  • 4. Manage supplier relationships
- Strategic Sourcing
  • 1. Analyze spend data
  • 2. Develop sourcing strategies
  • 3. Conduct market research
  • 4. Identify potential suppliers
Supply Chain Management15%- Supply Chain Operations
  • 1. Coordinate demand planning
  • 2. Monitor supply chain performance
  • 3. Implement technology solutions
  • 4. Manage logistics and distribution
- Supply Chain Strategy
  • 1. Optimize inventory management
  • 2. Design supply chain networks
  • 3. Develop sustainability initiatives
  • 4. Implement risk management

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ISM Supply Management Core Exam Sample Questions (Q289-Q294):

NEW QUESTION # 289
A major supplier for JKL, Inc. has a production capacity of 100 units a month. For the last six months, however, the supplier's production rate has climbed to 105 units a month. JKL audits the supplier and takes note of the higher production rate. In this situation, which of the following would MOST likely be of concern to JKL?

Answer: A

Explanation:
The MOST likely concern for JKL, Inc. regarding the supplier's increased production rate from 100 to 105 units a month would be B. Deteriorating quality. When production rates increase beyond the standard capacity, there is a risk that the quality of the products may decline as the process may be rushed or overextended1. This is a common concern in supply chain management, as maintaining the quality of products is crucial for customer satisfaction and the company's reputation2.


NEW QUESTION # 290
To weigh the benefits and risks of outsourcing a function, a supply manager conducts due diligence from cost, cultural, and service perspectives. The skills the supply manager is employing can BEST be described as

Answer: B


NEW QUESTION # 291
A university is evaluating its student registration software. The current system, purchased from Supplier A, has been in place for five years and works well, but may be outdated. A new system provided by Supplier B includes an online chat feature, which Supplier A's system currently does not have. While the costs for the two systems are essentially the same, Supplier B's system has an additional one-time implementation cost of
$250,000. Supplier A informs the university It will provide its own online chat option for a one-time fee of
$50,000.
The university calculates that switching to any new platform will involve migration costs. In this situation, the BEST course of action for the university is to

Answer: C

Explanation:
The best course of action for the university is to conduct an RFx (Request for Proposal/Information/Quote) stating the new requirements and including migration costs in the evaluation criteria. This approach ensures a comprehensive evaluation of both the new and existing suppliers based on the updated requirements and all associated costs, including migration. It allows the university to make a well-informed decision based on a holistic view of costs, benefits, and potential risks, ensuring transparency and competitiveness in the selection process.
References:
* CIPS (Chartered Institute of Procurement and Supply). (2021). Procurement and Supply Chain Management.
* Kraljic, P. (1983). Purchasing must become supply management. Harvard Business Review.


NEW QUESTION # 292
A state university is looking to purchase equipment to scan books and manuscripts into a digital format.
Several variations of this equipment exist in the marketplace, and the university has not decided which format is best for their needs. There is also a possibility that the cost for additional storage requirements will be shared with the state. Given this situation, which of the following is the FIRST course of action the university should take?

Answer: C

Explanation:
* Identification of Need: The university needs to purchase equipment to digitize books and manuscripts.
* Market Variations: Several variations of the required equipment exist in the marketplace, indicating a need to understand the different options available.
* Undecided Format: The university has not decided which format is best, necessitating information gathering on different formats and their benefits.
* Cost Sharing Possibility: There is a possibility that the cost for additional storage will be shared with the state, adding another layer of complexity.
* First Course of Action: In such situations, the most appropriate first step is to gather comprehensive information on the available options. An RFI is a tool designed to collect information from suppliers about their products and services. It helps the university understand what is available in the market, the capabilities of different suppliers, and the possible costs and benefits of various options.
* Next Steps: After the RFI, the university can better determine their specific needs and proceed with more targeted procurement processes such as an RFP.
References
* ISM Glossary of Key Supply Management Terms
* CIPS Procurement and Supply Cycle


NEW QUESTION # 293
A landlocked student believes that people would prefer to live near the ocean if they could afford the additional expense. To test this, the student wants to see whether states bordering an ocean are more likely to have a larger percent of wealthy families than states without an ocean coast. The student collects data from the 50 U.S. states on the percent of families making over $200,000 a year along with whether the state has an ocean coast (where 1 means the state has an ocean coast).

Based on the regression results given below, what can be said at the 95% confidence level?

Answer: B


NEW QUESTION # 294
......

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