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Exam Name: CPSM Exam 1: Foundation of Supply Management
Certification: Part of the Certified Professional in Supply Management (CPSM) program
Administered By: Institute for Supply Management (ISM)
Exam Format: Multiple-choice questions
Number of Questions: 165 questions
Duration: 2 hours and 45 minutes (165 minutes)
Passing Score: Scaled score of 400 or higher (on a scale of 100 to 600)
Delivery Method: Computer-based testing at approved testing centers or online proctored exam

- Procurement
- Procurement processes and strategies
- Sourcing methods
- single sourcing
- multiple sourcing
- global sourcing
- Supplier identification and selection
- Procurement ethics and compliance
- Procurement technology and tools
- e-procurement
- ERP systems

- Request for Proposal (RFP)
- Request for Quotation (RFQ)
- Purchase Order (PO)
- Total Cost of Ownership (TCO)
- Make-or-Buy Decision
- Strategic Sourcing
- Spend Analysis

- Supplier Relationship Management
- Supplier evaluation and qualification
- Supplier performance management
- Supplier development and collaboration
- Supplier risk management
- Contract management and negotiation

- Key Performance Indicators (KPIs)
- Service Level Agreement (SLA)
- Supplier Scorecard
- Supplier Diversity
- Supplier Relationship Management (SRM)
- Contract Compliance

- Supply Chain Management
- Supply chain design and optimization
- Inventory management
- Just-in-Time
- Economic Order Quantity
- Logistics and transportation management
- Demand planning and forecasting
- Supply chain risk management

- Supply Chain Visibility
- Bullwhip Effect
- Lean Supply Chain
- Demand Forecasting
- Inventory Turnover Ratio
- Lead Time

- Legal and Contractual Issues
- Contract law basics
- Intellectual property rights
- Legal and regulatory compliance
- Dispute resolution mechanisms
- Ethical and sustainable procurement practices

- Uniform Commercial Code (UCC)
- Force Majeure
- Breach of Contract
- Indemnification
- Non-Disclosure Agreement (NDA)
- Incoterms
- FOB
- CIF
- DDP

- Cost and Financial Management
- Cost analysis and reduction strategies
- Budgeting and financial planning
- Total Cost of Ownership (TCO)
- Cost modeling and price analysis
- Financial statements and metrics

- Cost-Benefit Analysis
- Return on Investment (ROI)
- Fixed Costs vs. Variable Costs
- Direct vs. Indirect Costs
- Activity-Based Costing (ABC)
- Working Capital

- Risk Management
- Risk identification and exam
- Risk mitigation strategies
- Supply chain disruptions and contingency planning
- Cybersecurity risks in supply management

- Risk Appetite
- Risk Mitigation
- Business Continuity Planning (BCP)
- Force Majeure
- Risk Register
- Contingency Plan

- Quality Management
- Quality standards and certifications
- ISO 9001
- Quality control and assurance
- Continuous improvement methodologies
- Six Sigma
- Lean
- Supplier quality management

- Total Quality Management (TQM)
- Quality Assurance (QA)
- Quality Control (QC)
- Defect Rate
- Root Cause Analysis
- Continuous Improvement (Kaizen)

- Technology and Data Analytics
- Procurement and supply chain technologies
- ERP
- MRP
- SCM software
- Data analytics and reporting
- Automation and artificial intelligence in supply management
- Blockchain and its applications in supply chain

- Enterprise Resource Planning (ERP)
- Material Requirements Planning (MRP)
- Big Data Analytics
- Predictive Analytics
- Internet of Things (IoT)
- Blockchain

- Sustainability and Social Responsibility
- Sustainable sourcing practices
- Environmental and social responsibility in supply chains
- Ethical sourcing and fair trade
- Circular economy principles

- Corporate Social Responsibility (CSR)
- Carbon Footprint
- Green Procurement
- Circular Supply Chain
- Fair Trade
- Triple Bottom Line
- People
- Planet
- Profit

- Global Supply Management
- Global sourcing strategies
- International trade regulations and compliance
- Cultural considerations in global supply chains
- Currency and payment risks

- Incoterms
- EXW
- CIF
- DDP
- Tariffs and Duties
- Free Trade Agreements (FTA)
- Letter of Credit (LC)
- Exchange Rate Risk
- Global Sourcing

- Project Management
- Project planning and execution
- Stakeholder management
- Project risk management
- Project performance measurement

- Work Breakdown Structure (WBS)
- Critical Path Method (CPM)
- Gantt Chart
- Project Charter
- Stakeholder Analysis
- Project Lifecycle

- Communication and Negotiation
- Effective communication strategies
- Negotiation techniques and tactics
- Conflict resolution
- Cross-functional collaboration

- BATNA (Best Alternative to a Negotiated Agreement)
- Win-Win Negotiation
- Active Listening
- Stakeholder Engagement
- Conflict Resolution
- Persuasion Techniques