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CPSM-Exam-2 exam Format | CPSM-Exam-2 Course Contents | CPSM-Exam-2 Course Outline | CPSM-Exam-2 exam Syllabus | CPSM-Exam-2 exam Objectives

Number of Questions: 165 multiple-choice questions.

Duration: 3 hours (180 minutes).

Passing Score: The passing score is determined by ISM and is based on a scaled scoring system.

Delivery Method: The exam is administered online through a proctored testing platform.



- Strategic Sourcing and Category Management

- Strategic sourcing process and methodologies.

- Category management strategies and implementation.

- provider segmentation and relationship management.

- Market analysis and benchmarking.

- Total cost of ownership (TCO) analysis.

- Risk management in sourcing.

- Sustainable and ethical sourcing practices.



- Spend analysis.

- RFx (Request for Proposal/Quotation/Information).

- provider scorecards.

- Kraljic Matrix.

- provider collaboration.

- Cost modeling.

- Outsourcing vs. insourcing.



- provider Relationship Management (SRM)

- Developing and maintaining provider relationships.

- provider performance evaluation and improvement.

- Contract management and compliance.

- Collaborative innovation with suppliers.

- Conflict resolution and negotiation strategies.

- provider diversity and inclusion programs.



- Key Performance Indicators (KPIs).

- Service Level Agreements (SLAs).

- provider risk exam.

- Relationship mapping.

- provider development programs.

- Contract lifecycle management.



- Cost and Price Management

- Cost analysis techniques

- activity-based costing

- should-cost modeling

- Price analysis and market-based pricing.

- Cost reduction strategies.

- Value engineering and value analysis.

- Financial acumen in supply management.

- Negotiation tactics for cost savings.



- Direct vs. indirect costs.

- Fixed vs. variable costs.

- Cost avoidance vs. cost savings.

- Break-even analysis.

- Price benchmarking.

- Total landed cost.



- Supply Chain Risk Management

- Identifying and assessing supply chain risks.

- Risk mitigation strategies

- dual sourcing

- inventory buffers

- Business continuity planning.

- Geopolitical and regulatory risks.

- Cybersecurity risks in the supply chain.

- provider financial health monitoring.



- Risk appetite.

- Risk matrix.

- Force majeure.

- Contingency planning.

- Supply chain resilience.

- provider audits.



- Performance Measurement and Improvement

- Developing and implementing performance metrics.

- Balanced scorecard approach.

- Continuous improvement methodologies

- Lean

- Six Sigma

- Process mapping and optimization.

- Data-driven decision-making.

- Benchmarking and best practices.



- Key Performance Indicators (KPIs).

- Lead time reduction.

- Cycle time.

- Process efficiency.

- Root cause analysis.

- PDCA (Plan-Do-Check-Act).



- Technology and Analytics in Supply Management

- Role of technology in supply chain management

- ERP

- SRM

- e-procurement

- Data analytics and predictive modeling.

- Artificial Intelligence (AI) and Machine Learning (ML) in supply management.

- Blockchain and its applications in supply chains.

- Digital transformation in procurement.



- Big data.

- Predictive analytics.

- Spend visibility tools.

- Automation (RPA - Robotic Process Automation).

- Digital twins.

- Cloud-based procurement systems.



- Legal and Contractual Considerations

- Contract law basics.

- Key clauses in supply contracts

- indemnification

- termination

- liability

- Intellectual property (IP) considerations.

- Compliance with regulations

- GDPR

- SOX

- Dispute resolution mechanisms.



- Force majeure.

- Liquidated damages.

- Non-disclosure agreements (NDAs).

- Uniform Commercial Code (UCC).

- Incoterms.

- Breach of contract.



- Sustainability and Corporate Social Responsibility (CSR)

- Sustainable sourcing practices.

- Environmental, Social, and Governance (ESG) criteria.

- Circular economy principles.

- Ethical sourcing and labor practices.

- Carbon footprint reduction.

- provider codes of conduct.



- Life cycle exam (LCA).

- Carbon neutrality.

- Fair trade.

- Green procurement.

- Social responsibility audits.

- Zero waste initiatives.



- Global Supply Chain Management

- Managing global suppliers and logistics.

- Cross-cultural communication and negotiation.

- Trade compliance and customs regulations.

- Currency exchange and financial risks.

- Global market trends and challenges.



- Incoterms.

- Free trade agreements (FTAs).

- Tariffs and duties.

- Harmonized System (HS) codes.

- Export controls.

- Global sourcing strategies.



- Leadership and Change Management

- Leading cross-functional teams.

- Change management strategies.

- Stakeholder engagement and communication.

- Building a culture of continuous improvement.

- Talent development in supply management.



- Change readiness.

- Stakeholder analysis.

- Emotional intelligence (EQ).

- Transformational leadership.

- Mentorship and coaching.

- Organizational agility.



- Financial Acumen in Supply Management

- Understanding financial statements

- balance sheet

- income statement

- Budgeting and forecasting.

- Working capital management.

- Capital expenditure (CapEx) vs. operational expenditure (OpEx).

- Financial risk management.



- Return on Investment (ROI).

- Net Present Value (NPV).

- Cash flow analysis.

- Cost of capital.

- Profit margins.

- Economic Value Added (EVA).

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