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INTRODUCTION Buyer/planners are buyers who also do material planning. This role is responsible or and manages purchasing, materials requirements planning, supplier relationship management, product lie cycle and ser vice design, and more. APICS The Association or Operations Management is the premier membership organization that provides education, certication, and career development oppor tunities to supply chain proessionals worldwide. The APICS Cer tied in Production and Inventory Management (CPIM) coursework and corresponding certication gives proessionals the knowledge and skills they need to succeed. Knowledge and skills combined with proessional experience create the competencies required or individuals to excel in their careers and distinguish themselves in their eld. AP ICS developed the Buyer/Planner Competency Model to guide individuals considering careers in buying and planning, buyer/planner proessionals seeking to advance their positions, and human resource managers who are hiring in this eld.
About the model The structure o the APICS Buyer/Planner Competency Model ollows guidelines set by the Employment and Training Administration o the United States Department o Labor. The model is represented in a diagram on the next page or easy reerence. The model is or ganized into tiers o competencies with descriptions o activities and behaviors associated with each competency. The Competency Model Clearinghouse denes competency as “the capability to apply or use a set o related knowledge, skills, and abilities required to successully per orm ‘critical work unctions’ or tasks in a dened work setting.” In most cases, the competencies outlined in this model are adapted rom the APICS Operations Management Body of Knowledge (OMBOK) Framework.
Acknowledgements The APICS Buyer/Planner Manager Competency Model was a research project undertaken by sta in the Proessional Development Division o APICS. They were supported by AP ICS members and customers who participated in sur vey research. APICS sta used public domain inormation obtained rom the Competency Model Clearinghouse (www. careeronestop.org) to create the model.
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F O U N D AT I O N A L C O M P E T E N C I E S Personal Eectiveness Competencies
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Personal eectiveness competencies represent motives, traits, and interpersonal and sel-management styles, and are applicable in any number o industries.
Awareness o the needs o others •
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Understand other business needs and goals. Have perspective into other points o view. Build rapport and credibility with colleagues. Anticipate needs and respond to concerns and conficts.
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Demonstrate trustworthiness and proessionalism with clients, peers, and team members. Respond with consistency in situations that require honesty and candor. Avoid conficts between work and personal interests or activities.
Continuous learning •
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Demonstrate an interest in personal learning and development; seek eedback rom multiple sources about how to improve and develop; modiy behavior based on eedback or sel-analysis o past mistakes. Take steps to develop and maintain the knowledge, skills, and expertise necessary to achieve positive results; participate ully in relevant training programs and actively pursue other opportunities to develop knowledge and skills. Anticipate changes in work demands and participate in assignments or training that address these changing demands; treat unexpected circumstances as opportunities to learn. Engage in career development by identiying occupational interests, strengths, options, and opportunities; make insightul career planning decisions based on integration and eedback; seek out additional training to pursue career goals.
Eective communication •
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Interpersonal skills
Integrity •
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Receive, attend to, interpret, understand, and respond to verbal messages and other cues; pick out important inormation in verbal messages; understand complex instructions; appreciate the eelings and concerns behind verbal messages. Practice meaningul two-way communication by speaking clearly, paying attention, seeking to understand others, listening attentively, clariying inormation, and attending to nonverbal cues and respond appropriately. Infuence others; persuasively present thoughts and ideas; inspire commitment and ensure support or ideas.
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Creativity •
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Demonstrate intellectual curiosity about why things are the way they are; challenge the status quo. Change, elaborate, adapt, and improve on ideas or those o others. Demonstrate a tendency toward action; materialize thoughts into products or services.
Academic Competencies Academic competencies are primarily achieved in an academic setting and include cognitive unctions and thought processes.
Math, statistics, and analytical thinking •
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Express inormation to individuals or groups that considers the audience and the nature o the inormation (or example, technical or controversial); speak clearly and condently; organize inormation logically; speak using English conventions including proper grammar, tone, and pace; track and react appropriately to audience responses; use eye contact and nonverbal expression eectively.
Relate to clients, colleagues, and team members. Maintain a positive, supportive, and appreciative attitude. Actively listen to others and demonstrate understanding o dierent points o view. Create an open environment that encourages people to work together to solve problems and improve practices and services. Explore and resolve conficts as they arise. Communicate clearly to avoid misunderstanding.
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Practice applied mathematics in collecting and interpreting quantitative data. Demonstrate the ability to scrutinize and breakdown acts and thoughts into strengths and weaknesses. Develop the capacity to think in a careul and discerning way, to solve problems, to analyze data, and to recall and apply inormation. Reading and writing or comprehension” should be its own subheading with bullet points listed below it (the other competencies models). Understand what has been read; gather inormation rom a text.
Demonstrate an understanding o material read by orming opinions and sharing personal experiences. Apply the strategies o sel-questioning, retelling, writing, summarizing, predicting and veriying, stor y mapping, role play, and responsiveness.
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Materials management undamentals •
Applied science and technology •
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Demonstrate an understanding o the actors that are considered important to the branch o knowledge or technology. Understand the use o technology and the interaction with lie, society, and the environment, in conjunction with such subjects as industrial ar ts, engineering, applied science, and pure science. Develop knowledge o specic tools and how they aect the ability to adapt to and control the environment. Demonstrate the ability to apply knowledge or understanding to meet a specic, recognized need. Possess knowledge that is suciently general, clearly conceptualized, careully reasoned, systematically organized, critically examined, and empirically tested with regard to the specic science or technology.
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Supply chain undamentals •
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Understand that supply and logistics is a system o organizations, people, technology, activities, inormation, and resources involved in moving a product or ser vice rom supplier to customer. Possess basic knowledge o supply chain activities, including transormation o natural resources, raw materials, and components into a nished product that is delivered to the end customer. Recognize the ways that supply chains link value chains.
Practice basic business communications. Understand undamental organizational behavior.
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Demonstrate knowledge o the operations management structure o the modern manuacturing and distribution company. Convert and communicate demand requirements or products and services into detailed plans and schedules or inventory acquisition. Calculate key inventory perormance metrics such as turnover ratios, cost-benet trade-os, days o inventory on hand, labor productivity, and inventory valuation. Calculate and apply the various costing and valuation methods to inventory management. Have detailed knowledge o manuacturing planning, master production scheduling, product denition, inventory control, materials requirements planning, capacity requirements planning shop foor control, warehousing, transportation, and purchasing business unctions. Understand standard enterprise resource planning (ERP) and supply chain management (SCM) system technologies. Incorporate methods and techniques involved in lean and Just-in-Time (JIT) management. Implement new technologies. Be capable o perorming human resource management unctions. Participate in strategic planning and control development with senior management. Understand basic principles o sustainability, including reverse logistics, reworking product lines, and cutting operational energy costs.
Foundations o business management •
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Understand all management activities carried out in the course o running an organization, including controlling, leading, monitoring, adjusting, organizing, and planning. Analyze nancial statements and explain the implications o standard nancial ratios and all components o the balance sheet and income statement. Create interactive decision support models that demonstrate the sensitivity o outcome to multiple independent variables. Calculate project and organizational cash fow orecasts; present value investment comparisons and risk-adjusted return calculations. Demonstrate knowledge o visual presentation techniques including charting, histograms, and fow sheets, and oral and written presentation techniques.
Operations and enterprise economics •
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Understand the importance o and demonstrate the ability to take raw materials or knowledge and convert it into a product or service that has more value to the customer than the original material or data. Determine the success or ailure rate o a business using nancial accounting, incorporating terms and techniques including income, expense, cost o goods sold, gross margin, balance sheet, return on assets, inventory turns, capital asset management, and cash management. Employ the technique o break-even analysis, which nds the break-even point, the volume at which revenues exceed total costs. Find the best operating level (BOL), the level o capacity a process was designed or. This is also the volume o
output at which average unit cost is minimized. Use cost accounting systems to keep track o all costs o building products, labor, material, overhead, and variances. These systems include activity-based costing (ABC) and cost analysis and control.
Workplace and Leadership Competencies Workplace competencies represent those skills and abilities that allow individuals to unction in an organizational setting.
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Planning and organizing •
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Problem solving and decision making •
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Practice goal-directed thinking and action in situations or which no routine solutions exist. Understand a problem situation and its step-by-step transormation based on planning and reasoning. Demonstrate ability to choose between alternative courses o action using cognitive processes such as memory and evaluation. Demonstrate ability to map processes o possible consequences o decisions, to work out the importance o individual actors, and to choose the best course o action.
Teamwork and collaboration •
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Demonstrate a commitment to the mission and motivation to combine the team’s energy and expertise to achieve a common objective. Understand the dynamics o eective teamwork in order to attain higher levels o perormance. Demonstrate ability to work as part o a tight-knit and competent group o people. Demonstrate a commitment to engage teams in other departments or divisions o the organization. Accountability and responsibility Demonstrate a willingness to accept responsibility and accountability or one’s actions. Exhibit a moral, legal, or mental accountability in areas o responsibility. Understand that these two workplace competencies are intertwined, and that both abilities must be present in order to succeed.
Understand that every department and every employee should share the same customer-ocused vision. Practice good customer relations management and maintain a customer relations program. Demonstrate ability to balance the needs o the organization and the needs o the customer.
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Eectively plan what is to be achieved and involve all relevant sta members. Anticipate important or critical events, identiying resource requirements and assigning responsibility or specic work, including deadlines and perormance expectations. Demonstrate the use o inormation-gathering techniques, analyzing situation and identiying implications in order to make correct decisions. Demonstrate ability to monitor progress and to make changes as required. Ensure that sta is aware they will be accountable or achieving the desired results through planned program evaluation and individual perormance appraisal. Ensure that sta is provided with the necessary tools to succeed.
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Demonstrate ability to manage confict by identiying and handling conficts in a sensible, air, and ecient manner. Demonstrate skill in eective communicating, problem solving, and negotiating with a ocus on party interests.
Supporting and training sta •
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Understand the importance o acilitating on-going proessional development opportunities or sta. Assess training needs and identiy means (or example, classes, mentoring, written materials) to ll skill gaps. Provide opportunities or sta to demonstrate leadership skills. Provide clear and meaningul perormance evaluation. Encourage the development o skills that increase personal and departmental productivities.
PROFESSION-RELATED COMPETENCIE S Operations Management Knowledge Areas and Technical Competencies Operations management knowledge areas and technical competencies represent the knowledge, skills, and abilities needed by all occupations within operations management, including buyer/planners.
Supply chain management •
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Ensure the alignment o the materials management strategy with the business strategies driving sales, marketing, nance, and manuacturing. Develop inventory and plant asset management strategy supportive o company investment and capital management plans. Demonstrate ability to consistently deliver products and services to meet customer needs. Develop strategic objectives that ocus on areas o quality, cost, fexibility, productivity, and speed. Consistently search or methods to develop an agile and committed departmental workorce.
Process improvement and six sigma •
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Manuacturing process environments •
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Close understanding and practical knowledge o a company’s manuacturing processes and equipment capabilities. Encourage a close working relationship between manuacturing and materials management personnel. Develop materials storage and delivery processes supportive o manuacturing operations. Assist manuacturing with process improvement and lean initiatives. Assist manuacturing management in the development o meaningul productivity and perormance measurements. Understand the infuence o demand on manuacturing process design. Ensure processes conorm to both the needs o the customer base and the characteristic o the product. Ensure the continuous availability o quality materials and nished components. Understand output o materials requirement planning (MRP), capacity management, and advanced planning system technologies.
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Standards (time measurement)
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Assist manuacturing engineering in the development o process productivity standards. Understand calculations or eciency, utilization, and productivity. Demonstrate ability to calculate nominal and demonstrated productive capacities.
Understand the systematic approach to closing o process or system perormance gaps through streamlining and cycle time reduction, and identiy and eliminate causes o quality below specications, process variation, and non-value-adding activities. Maintain company processes that aord optimum operation and enhance the company’s quality management system. Demonstrate ability to visualize the total process and aid in locating problem areas using process mapping, quality improvement, and visualization tools to locate, quantiy, and correct root causes o problems. Perorm periodic evaluations to maintain processes by gathering pertinent inormation such as problem symptoms rom knowledgeable sources and carrying these through to the problems, potential causes, and root causes o the problem. Hold gains in process improvements by establishing key perormance measurements, benchmarking metrics, and continuous process improvement initiatives to improve process quality on a continual basis.
Execution, planning, scheduling, and control
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Demonstrate ability to manage the network o interconnected businesses involved in the ultimate provision o product and service packages required by end customers. Understand that supply chain management spans all movement and storage o raw materials, work-in-process inventory, and nished goods rom point-o-origin to pointo-consumption.
Determine the need or material and capacity to address expected demand, execute the resulting plans, and update planning and nancial inormation to refect the results. Plan the management unction by dening goals and the tasks and resources needed to attain those goals. Schedule a timetable o events and decide when and where certain events will occur. Control and check errors, taking any corrective action so that deviations rom standards are minimized and stated goals o the organization are achieved in a desired manner.
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Identiy and reduce or eliminate waste in all areas o a supply chain.
Calculate the total system cost o delivering a product or service to the customer. Develop systems that allow employees to produce results by Educating suppliers to create value or customers by streamlining processes in the value chain. Using suppliers whose methods and core competencies will align with lean requirements and developing long-term relationships with them. Reducing or entirely eliminating the cost o changing rom one product or service to another. •
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Understand current industry and government regulations governing sustainability. Be able to calculate carbon ootprint o business processes. Develop processes that strive to eliminate waste. Incorporate renewable raw materials. Assemble an eective reverse logistics program. Pursue transportation alternative to reduce energy and emissions. Utilize sae and reusable containerization. Pursue paperless documentation. Coordinate shipping and reight to use ull truckloads. Convert outputs to inputs; recycle end-products and components when possible.
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Establish specications in terms o optimal quantity to purchase, quality required, and the cost impact on budget. Select suppliers according to the type o product, quality provided by the supplier, and the possibility o partnership. Negotiate contracts that include costs, warranties, delivery, handling, and penalties or late delivering or cost overruns. Manage purchasing cycle, including generating requisitions, PO creation, PO ollow up, goods reception, and nal payment. Monitor supplier perormance with a system that monitors, measures, and provides eedback on supplier perormance. Provide an uninterrupted fow o materials and services. Purchase products competitively. Keep inventory investment to a minimum. Develop people resources and inormation tools or productivity optimization.
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Understand how to implement and determine the appropriate scheduling technique to control capacity at work centers. Finite scheduling Innite scheduling Forward scheduling Backward scheduling •
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Enabling technology education •
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Recognize that continuous process improvement is an accepted way o lie in business and that ew companies lack a continuing quality or process improvement eort. Implement improvement methods such as business process reengineering, total quality management (TQM), six sigma, lean manuacturing, and theory o constraints (TOC). Understand that technology and process unctionality has an interconnected relationship and that each helps transorm the other. Initiate process improvements that are enabled and supported by technology.
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Material requirements planning (MRP) •
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Buyer/Planner Knowledge Areas and Technical Competencies Buyer/planner knowledge areas and technical competencies represent the knowledge, skills, and abilities needed by a buyer/planner.
Plan orders or production activity control and purchasing to implement and control. Ensure sucient capacity to implement MRP by using capacity requirements planning. Use the master production schedule, product structure le, inventory record le, and item master le or the MRP process. Construct a product tree bill o material when given parents and components. Calculate the requirements, receipts, orders, and projected availability or a basic MRP record.
Product and service design •
Understand the lie cycle o your organization’s product or service and how the cycle stages relate to your unction. For example, once a product reaches maturity, there is oten a need to lower costs and price. Buyers may need to revaluate supplier selection.
Be able to provide input or concurrent product design and engineering processes.
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Create service schedules that maintain capacity levels to meet anticipated demand. Take into consideration employee skill mix, shit assignments, and employee preerences.
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Schedule maintenance o shop foor equipment. •
Inventory management •
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Be capable o determining departmental inventory management strategies and objectives. Know how to set up an eective inventory control department. Know how to apply trade-o analysis to balance requirements o demand and supply. Understand the dierent classes o inventory (raw materials, WIP, nished goods, MRO, service parts, damaged, and obsolete). Understand the dierence between independent and dependent demand inventory. Know how to dene the ve unctions o inventory: cycle inventory, saety inventory, anticipation inventory, transportation inventory, and hedge inventory. Know how to determine the elements o inventory decision costs such as xed, variable, direct, overhead, and costs Know how to calculate inventory carrying costs. Know how to calculate manuacturing and purchasing costs. Eectively manage surplus and obsolete inventories. Understand the methods o valuing inventory: standard; rst in, rst out (FIFO); last in, rst out (LIFO); average; and actual cost. Understand the dierence between continuous and period review systems o inventory control. Eectively calculate the inventory required to restock products or parts with inventory models including visual review two-bin inventory system periodic review order point time-phased order point (TPOP) Just-in-Time (JIT). Eectively calculate saety stock or independent demand items. Be able to calculate the order quantity through the economic order quantity (EOQ). •
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Risk management •
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Accurately identiy risks that aect supply, transormation, delivery, and customer demand. Eectively analyze the probability, control, and impact o identied risks. Develop strategies or dual sourcing, buering, orward buying, and others that minimize nancial impact uncertainties such as yields, timing, pricing, and catastrophic events.
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Form partnerships with suppliers based on mutual business value principles: compatibility o interests, mutual need, openness, and trust. Base your degree o involvement with a supplier on a continuum (rom simple transactional to strategic alliance) o how much value-add the supplier creates. Develop partnerships with suppliers who provide a value proposition in areas including product development, operations integration and eciencies, fexibility, and others. Develop a supplier rating program that monitors and measures perormance while providing timely eedback to the supply partners.
Maintain high inventory accuracy through various techniques including inventory audits, annual physical inventory, and cycle counting. Generate reporting detailing inventory nancial statements, turnover ratios, activity-based cost (ABC) analysis, and inventory perormance. Be aware o the latest electronic data collection technologies. Understand lean and JIT concepts and practices. Be able to set up and run a pull system o inventory control. Eectively calculate kanban card requirements. Develop kaizen event teams to remove inventory and process wastes and speed inventory throughput.
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Be able to dene ERP and MRP II sotware systems. Be able to explain the components o a modern ERP system. Have knowledge o the oundations o ERP systems. Understand the basic principles and operations o ERP systems.
Understand the integration o company unctions provided by an ERP system. Establish ERP planning procedures. Explain MRP II time-phased planning logic. Capable o discussing the role o the bill o material in ERP. Describe how saety stock is managed in MRP. Understand the various types o order policies available in MRP order generation. Apply the application o independent and dependent demand to ERP. Calculate scrap and shrinkage actors into the MRP generation. Be capable o discussing and demonstrating MRP grossto-net explosion process. Evaluate the contents and calculations on the MRP grid display or report. Have knowledge o planning utilizing action messaging. Have knowledge o planning time ences in MRP. Be capable o dening the types o replenishment orders ound in the MRP grid. Be capable o working with pegged requirements in MRP. Know how to perorm order rescheduling in MRP. Understand the various MRP output reports. Establish when MRP is to be generated. Have knowledge o detail capacity planning (CRP). Detailed knowledge o the CRP components (work centers, labor and machines, routings, setup times, run, standards and move times) necessary to run CRP. Have knowledge o how to increase or decrease capacity. Be able to use CRP to reschedule open and MRP generated orders. Understand load versus capacity output reporting. Collaborate with unctional departments to discuss and react to changes in demand. Understand ERP support or advanced planning systems (APS).
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Understand the output rom APS. Basic knowledge o advanced planning systems optimization techniques. Understand advanced planning relationships to MRP planning systems. Have the ability to develop simulation scheduling scenarios.
O C C U P AT I O N - R E L A T E D C O M P E T E N C I E S Buyer/Planner Specifc Requirements
Certifcations
Buyer/planner specic requirements include certication, licensure, and specialized educational degrees, or physical and training requirements.
Once the proessional is in the workplace, it is desirable to obtain a buyer/planner related certication. While there are a number o supply chain and operations management related to specic industries, general certications include: APICS Certied in Production and Inventory Management (CPIM) APICS Certied Supply Chain Proessional (CSCP) American Purchasing Society Certied Purchasing Proessional (CPP). •
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The majority o buyer/planner proessionals hold post secondary degrees—a bachelor’s or equivalent. While a number o buyer/planner proessionals have degrees related to supply chain or operations management, the majority hold degrees in other elds including, but not limited to, business, economics, engineering, or liberal arts studies.
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Association membership •
Proessional association membership ensures that the buyer/planner proessional is able to link into a network o practitioners to share best practices, develop their careers, and continue their proessional education. There are a number o supply chain associations related to specic industries including but not limited to: APICS The Association or Operations Management (APICS) Institute o Supply Management (ISM) Supply Chain Council (SCC) American Purchasing Society. •
APICS The Association for Operations Management APICS Te Association or Operations Management is the global leader and premier source o the body o knowledge in operations management, serving nearly 40,000 members globally. APICS education and certifcation programs are recognized worldwide as the standard o proessional competence in production and inventory management, operations management, and supply chain management. Join APICS to access local APICS chapters, networking opportunities, exclusive research reports, publications, and educational programs and products that create avenues or increased proessional development and career growth, helping you meet the ast-changing demands o the workplace. Join now at apics.org/join.
People who downloaded the APICS Buyer/Planner Competency Model also accessed: APICS Operations Management Employment Outlook Learn about the latest trends and inormation in hiring, salaries, and education in the operations management feld. apics.org/research
APICS Certifed APICS Career Center Now that you know in Production and Inventory Management what you’re looking or in a candidate, post job (CPIM) program Find out how you can improve your production and inventory management practices by supporting your employees’ participation in the APICS CPIM program. apics.org/cpim
opportunities or search job candidate resumes today. apicscareercenter.org
APICS The Association for Operations Management 8430 West Bryn Mawr Avenue, Suite 1000 Chicago, IL 60631 USA 1-800-444-2742 or +1-773-867-1777
apics.org
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