Certified Professional Public Buyer (CPPB) Practice Test

In the supply positioning matrix, what characterizes quadrant I?

1. High risk and low expenditure

2. Low risk and high expenditure

3. Low risk and low expenditure

4. High risk and high expenditure

The correct answer is: Low risk and low expenditure

Quadrant I of the supply positioning matrix is characterized by low risk and low expenditure. This quadrant typically represents items or services that are not costly and do not pose significant strategic importance or risks to the organization. In this context, the focus for procurement in Quadrant I often revolves around ensuring efficient purchase processes and maintaining supplier relationships since the items or services involved do not significantly impact operational performance or financial stability. Understanding this characteristic is crucial because it allows organizations to allocate procurement resources effectively. For items categorized in Quadrant I, purchasing may adopt a more transactional approach, emphasizing efficiency and ease of procurement, as opposed to strategic sourcing or in-depth supplier analysis that might be necessary for items in other quadrants. Knowing how to identify and manage low-risk, low-expense procurements helps organizations streamline operations and reduce unnecessary costs.