Certification in Supplier Diversity Practice Exam

What is NOT a component of a supply strategy?

1. The category spend

2. The sourcing policy

3. The definition of the category

4. The organizational size

The correct answer is: The organizational size

The organizational size is not typically considered a component of a supply strategy because supply strategies focus more on how resources are acquired and managed rather than on the characteristics of the organization itself. A successful supply strategy encompasses factors such as category spend, which identifies how much money is allocated to different categories of goods or services; the sourcing policy, which outlines the guidelines and criteria for selecting suppliers; and the definition of the category, which clarifies the characteristics and requirements of the items being sourced. These are all essential elements that guide decision-making and process optimization in procurement, while organizational size is more of a context or situational factor that could influence the overall strategy but does not form a core component of it.