Monday, February 04, 2008

Certification – Why and Which One?


The website for the Council of Supply Chain Management Professionals lists 12 professional supply chain organizations with a credentialing program. It does not include AHRMM, meaning there are at least 13. I suspect there are numerous other industry specific programs resulting in far more than 13 certifications. While this appears to be a Tower of Babel when you understand the process it actually makes sense. First, it shows that certification is becoming a standard requirement among supply chain practitioners, and second, it indicates that not all certifications test the same body of knowledge. Which one, or more appropriately which ones, should an individual pursue?

The largest and oldest society of supply chain professionals in the world, the Institute for Supply Management (ISM – 40,000 members worldwide), provides an instant verification of credentials of its membership online. Punch in a name and viola! you can see if a person actually has the certification they claim to have. Why is this important? Certification by this body actually carries weight in the real world. ISM’s credentials are used by leading companies to differentiate job applicants and internal candidates seeking promotions. They document a body of knowledge that is considered to be the equivalent of 12 – 15 college credits of specialized supply chain knowledge that cuts across all industries. The bearers of the C.P.M. credential have passed 4 test modules with a combined testing time of something like 10 hours. They have been tested on standardized procurement processes from needs assessment through contract management. Further, they have demonstrated a detailed understanding of management in areas such as business law, quality programs, supplier relations, interactions with other management members, personnel, diversity management, green initiatives, etc.

ISM’s website provides a “See who has been certified or accredited in the last 30 days!” feature. At any given point there will be between 250 and 350 names and their locations are worldwide: everywhere from the USA to Europe and the entire Pacific Rim including China, Korea, Japan, etc. As example as to the importance of this feature, Toyota, a perennial Top 5 supply chain company, requires the C.P.M. for advancement in its management ranks and is actively involved with ISM at many levels. Clearly ISM’s C.P.M. is the gold standard of certifications. It is the equivalent of a CPA for supply chain pro. In 2008 ISM is raising the bar by launching a new credential, CPSM, that will require knowledge of even more such as world trade, etc. in addition to all of the other existing requirements. The old inch thick study guide has been replaced by a three volume set. Starting in 2012 no new C.P.M.s will be issued, only CPSMs. The CPSM will have minimum requirements of 5 years of experience, a 4 year degree and passing 3 test modules. No life status will be possible. I estimate that fewer than 10% of supply chain’s full time practitioners will achieve this elite level of certification. The gold standard will give way to the platinum.

However, many other organizations provide industry specialized certifications that document knowledge that is necessary and vital to that industry. A platinum standard is not always required. AHRMM’s CMRP is one such process. Supply Chain professionals with the CMRP credential have shown they have an understanding of the nuances of healthcare’s unique needs and practices. In doing so, is it not reasonable to argue that any buyer or higher position in hospital supply chain should require a CMRP either as a condition of employment or to be achieved within 12 months of employment – regardless of other certifications? Let’s be honest, healthcare is woefully behind many industries in supply chain practices and a lack of a credentials requirement is at least partially to blame. If we were like other industries we would require the CMRP for all of our mid level staff. In large health systems where specialization of duties is possible certifications such as APICS’ CPIM can be helpful and should be recognized and rewarded. For those aspiring to be the chief supply chain officer (director, vice president, etc.) a C.P.M. should also be required.

The bottom line for certification is this: Demonstrating mastery of the technical aspects of your profession should hardly be an obstacle to anyone claiming to be competent to manage a supply chain measured in 10’s of millions and often hundreds of millions of dollars. And we owe it to ourselves to demonstrate that we actually have this knowledge – it’s one thing to claim it and another to document it. If your employer does not see the need to support this process via funding and time (shame on them if this is their position) do it yourself. The next big job opportunity may require it, and if they do they will most likely be that enlightened employer you’d really rather work for.

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