Institute for Supply Management (ISM): Overview

What is ISM?

The Institute for Supply Management (ISM) is a nonprofit professional association serving supply management and purchasing professionals. Founded in 1915 as the National Association of Purchasing Agents and renamed ISM in 2002, it is the largest organization of its kind and supports members worldwide with education, research, certification, and networking.

History and reach

• Founded in 1915; renamed Institute for Supply Management in 2002.
• Serves tens of thousands of members across many countries.
• Leadership is drawn from experienced supply management professionals.

Core services

ISM provides resources and programs for individuals and organizations, including:
– Professional certifications and credentialing.
– Training, continuing education, and career development.
– Research, benchmarking, and industry publications.
– Networking and corporate programs.

Certifications

ISM offers two prominent certifications:
– Certified Professional in Supply Management (CPSM): Recognizes advanced competencies across supply management functions and is widely regarded as a top industry credential. CPSM holders must recertify through continuing education, experience, volunteering, or exams. Companies often value CPSM certification; professionals with a CPSM may earn up to about 10% more than peers.
– Certified Professional in Supplier Diversity (CPSD): Focuses on supplier diversity strategy and execution, helping organizations identify and engage underutilized and innovative suppliers and expand market access.

ISM Report on Business and PMIs

ISM publishes the Report on Business, a monthly set of surveys and indexes that are closely watched as economic indicators:
– Manufacturing Purchasing Managers’ Index (PMI)
– Services (Non‑Manufacturing) PMI
– Hospital PMI

These PMIs—based on monthly business survey committee data—are used by economists and business leaders to gauge economic activity and trends.

What is supply management?

Supply management encompasses more than purchasing raw materials. Key responsibilities include:
– Identifying, sourcing, negotiating, and procuring goods and services essential to operations.
– Developing and managing supplier relationships and holding suppliers accountable.
– Implementing technologies and procedures to streamline procurement.
– Managing logistics, inventory, budgeting, and workforce coordination.
– Considering market forces such as supply and demand and their operational impacts.

Why ISM matters

• Provides widely recognized certifications that support career advancement.
• Produces timely economic indicators (PMIs) used by markets and policymakers.
• Offers tools and training that help organizations improve procurement effectiveness, supplier diversity, and risk management.

Key takeaways

• ISM is the leading nonprofit association for supply management professionals.
• It offers the CPSM and CPSD certifications and ongoing professional development.
• ISM’s Report on Business and PMIs are important economic indicators.
• Supply management covers sourcing, supplier relationships, logistics, technology, and strategic planning—areas ISM supports through education and research.