Certification in Supplier Diversity Practice Exam

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Get ready for the Supplier Diversity Certification Test. Prepare using flashcards and multiple choice questions, with hints and detailed explanations for each question. Ace your certification exam!

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Practice this question and more.

What is the first step in the strategic sourcing process?

Generate the supplier portfolio
Select implementation path
Profile the supply stream
Negotiate and select suppliers

The correct answer is: Profile the supply stream

The first step in the strategic sourcing process is to profile the supply stream. This step is critical as it involves understanding the current supply base and the goods and services that are required by the organization. Profiling the supply stream allows organizations to assess their spending patterns, identify potential suppliers, and gain insights into supply market trends. In this phase, businesses often analyze various factors such as demand characteristics, supplier capabilities, and risks associated with different category spends. By developing a clear profile of the supply stream, organizations can make more informed decisions as they move through the strategic sourcing process, including generating a supplier portfolio and selecting an implementation path later on. Understanding the supply stream helps in aligning sourcing strategies with overall business objectives and improving supply chain efficiency.