Once the system is developed, it then forces the various functions in the buying firm to evaluate which suppliers truly add value. The rankings are aggregated to enable a ranking of all suppliers. The company will then categorize the suppliers into one of three categories:
A) standard, preferred, or cooperative.
B) standard, competitive, or preferred.
C) strategic, preferred, or. transactional.
D) preferred, critical, or transactional.
E) strategic, competitive edge, or standard.

Question

Quizplus · Accepted Answer

Categorizing the suppliers into strategic, preferred, or transactional categories enables the buying firm to prioritize its supplier relationships and allocate resources accordingly. This approach aligns with the strategic sourcing approach and allows the buying firm to optimize its supply chain by focusing on the most critical relationships first. The other options do not offer the same level of strategic focus and prioritization for supplier relationships.

Once the System Is Developed, It Then Forces the Various