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CPSM-Exam-2 test Format | CPSM-Exam-2 Course Contents | CPSM-Exam-2 Course Outline | CPSM-Exam-2 test Syllabus | CPSM-Exam-2 test 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 test 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 exam.
- 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 test (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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