Certified Professional Public Buyer (CPPB) Practice Test

What is the best next step for a jurisdiction that has compiled purchase history across all departments?

1. Generate a Procurement Profile

2. Gather 2 additional years of purchase history from each department

3. Begin analyzing the departments' spending patterns

4. Assess risk levels for each expenditure category

The correct answer is: Gather 2 additional years of purchase history from each department

The best next step for a jurisdiction that has compiled purchase history across all departments is to begin analyzing the departments' spending patterns. Analyzing spending patterns provides valuable insights into how resources are allocated and where potential efficiencies can be identified. This process involves examining the compiled purchase history to detect trends, understand budget allocations, and uncover opportunities for cost savings or more strategic sourcing. Through this analysis, the jurisdiction can establish benchmarks and identify areas where spending is concentrated or where there are anomalies that may require further investigation. This can ultimately lead to more informed decision-making and improved procurement strategies, facilitating better procurement management practices. While gathering additional purchase history might seem beneficial for greater data accuracy, it’s more advantageous to first analyze the existing data to act on current information and insights. Generating a procurement profile or assessing risk levels can also be important, but these steps are often consequent to a thorough understanding of spending patterns, which lays the groundwork for those further actions.