Which of the following is not one of the goals for sourcing a routine commodity?
A)Reduce the number of items in this category through substitution.
B)Elimination of small-volume spend.
C)Conduct of a detailed negotiation to improve supplier capability.
D)Elimination of duplicate SKUs.
E)Simplification of the procurement process using electronic tools.

Question

Quizplus · Accepted Answer

The goal of sourcing a routine commodity is not to conduct a detailed negotiation to improve supplier capability. The other options are valid goals for sourcing routine commodities. Reducing the number of items in a category through substitution helps consolidate spending and reduce complexity. Eliminating small-volume spend reduces transaction costs and can help focus purchasing power. Eliminating duplicate SKUs helps streamline inventory management, and simplification of the procurement process can reduce cycle time and improve efficiency.

Which of the Following Is Not One of the Goals