CPSM Exam 3 case studies

CPSM Exam 3 · Put your knowledge to work in context.

CPSM Exam 3, Leadership and Transformation in Supply Management, is the third of three computer-based exams leading to the Certified Professional in Supply Management credential administered by the Institute for Supply Management. It is aimed at procurement and supply management professionals moving into senior or leadership roles - people responsible for transformation programs, stakeholder influence, and strategic direction rather than day-to-day purchasing transactions. The CPSM Exam 3 case studies are 5 cases and about 5,206 words.

The $1,140 Box Seat

You are director of supply management at a 480 million regional food processor. Your team of 14 includes Dana, a senior buyer with 11 years' tenure who is the only person who understands the 6.2 million three-year packaging contract now in final negotiation.

977 words, about 5 min 2

Center-Led in a Six-Hospital System

You are the new chief supply chain officer at a six-hospital nonprofit system: 9,000 employees and 340 million in annual non-labor spend. Each hospital's materials manager reports to the local CFO; corporate supply chain has 11 staff who negotiate contracts but cannot enforce them.

1,017 words, about 5 min 3

Testing a $3 Million P2P Business Case

You lead procurement and AP shared services at an industrial distributor with 1.1 billion revenue, 1,400 active suppliers, and 260,000 SKUs. AP processes 310,000 invoices a year with 11 FTE; 78% arrive as paper or PDF.

1,047 words, about 5 min 4

Recruitment Fees at CM-3

You are VP of supply chain at a consumer electronics brand with 2.6 billion revenue. A third-party audit of CM-3, a Vietnamese contract manufacturer that builds 30% of your holiday volume, finds three issues: workers paid recruitment fees of 300-$600, roughly one to two months' wages, to labor agents; overtime averaged 68 hours per week for the 11 weeks before peak season; and one dormitory houses 42 workers with six showers.

1,086 words, about 5 min 5

A Three-Year Supply Strategy Under Margin Pressure

You are the CPO of a 900 million medical device manufacturer. Three product lines, together 62% of revenue, depend on a single silicone valve molded at one plant of one supplier; a six-week disruption there in 2023 cost 11 million in expediting and lost sales.

1,079 words, about 5 min