An effective procurement strategy for commodity products should focus on:

Question

Quizplus · Accepted Answer

The most effective procurement strategy for commodity products should focus on driving down cost and reducing risk. This is because commodity products are standardized and offer limited differentiation among suppliers, leading to a greater focus on cost savings and risk management. Spreading purchases equally across suppliers (B) may not always be feasible or efficient, while selecting primary and alternate sources (C) is a good approach, it does not necessarily guarantee cost savings or risk mitigation. Selecting suppliers with value-added products (D) may be more applicable for specialized or differentiated products, but not necessarily for commodity items.

An Effective Procurement Strategy for Commodity Products Should Focus On