CPSM Exam 2 study guide
CPSM Exam 2 · Work through your exam, one topic at a time.
CPSM Exam 2, Supply Management Integration, is the middle of the three computer-based examinations that make up the Certified Professional in Supply Management credential administered by the Institute for Supply Management. It is built for procurement and supply chain practitioners who already know core purchasing mechanics and now need to show they can connect supply management to the rest of the business. The CPSM Exam 2 study guide has 5 sections and about 2,725 words.
01Cross-Functional Collaboration: Integrating Supply Management with Finance, Operations, and Quality
Domain 1 tests whether you can defend a sourcing decision in the languages finance, operations and quality actually use: total cost, cash and conformance. Questions are scenario-based - two quotes, two cost structures, one defensible answer.
523 words, about 3 min02Strategic Sourcing Implementation Across Organizational Boundaries
This domain tests execution, not theory: can you move from spend data to a category strategy that operations, finance and the business actually adopt? Expect questions on process sequence, supplier selection mechanics and implementation failure modes.
531 words, about 3 min03Risk Mitigation, Compliance Management, and Legal Coordination
This domain tests whether you can quantify supply risk, choose a mitigation that fits, and coordinate with legal and compliance without practicing law yourself. Expect scenario questions on risk scoring, contract clauses, Incoterms and third-party compliance exposure.
550 words, about 3 min04Demand Forecasting Collaboration, Inventory Optimization, and Logistics Coordination
This domain tests the quantitative core of planning: choose a forecast method, measure it honestly, size inventory against variability, and coordinate physical flow without destroying the numbers with the bullwhip effect. Qualitative (Delphi, market research, sales composite) for new products and long horizons; quantitative (naive, moving average, exponential smoothing with alpha, Holt-Winters for trend and seasonality, causal regression) for stable item histories.
567 words, about 3 min05Supplier Relationship Management, Performance Measurement, and Continuous Improvement
This domain tests governance: how you segment suppliers, measure them without being gamed, and drive improvement that sticks. Expect questions that contrast a well-designed scorecard with a vanity dashboard, and that ask which improvement tool fits which problem.
554 words, about 3 min