CPSM-Exam-2 Exam Information and Guideline
CPSM Exam 2: Effective Supply Management Performance - 2025
Below are complete topics detail with latest syllabus and course outline, that will help you good knowledge about exam objectives and topics that you have to prepare. These contents are covered in questions and answers pool of exam.
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.
- Supplier 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).
- Supplier scorecards.
- Kraljic Matrix.
- Supplier collaboration.
- Cost modeling.
- Outsourcing vs. insourcing.
- Supplier Relationship Management (SRM)
- Developing and maintaining supplier relationships.
- Supplier performance evaluation and improvement.
- Contract management and compliance.
- Collaborative innovation with suppliers.
- Conflict resolution and negotiation strategies.
- Supplier diversity and inclusion programs.
- Key Performance Indicators (KPIs).
- Service Level Agreements (SLAs).
- Supplier risk assessment.
- Relationship mapping.
- Supplier 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.
- Supplier financial health monitoring.
- Risk appetite.
- Risk matrix.
- Force majeure.
- Contingency planning.
- Supply chain resilience.
- Supplier 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.
- Supplier codes of conduct.
- Life cycle assessment (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).