Certified Professional Public Buyer (CPPB) Practice Test

What is the primary goal of using right measures in procurement?

1. To maintain standard processes

2. To achieve the highest revenue

3. To use measurements to improve process

4. To reduce procurement costs

The correct answer is: To use measurements to improve process

The primary goal of using the right measures in procurement is to utilize measurements to enhance processes within the procurement function. Effective measurement allows organizations to assess their performance, identify areas for improvement, and implement changes that lead to more efficient operations and better outcomes. By focusing on improving processes, procurement professionals can align their activities with organizational goals, resulting in higher quality services, more strategic sourcing decisions, and ultimately, more value added to the organization. While maintaining standard processes, achieving high revenue, and reducing procurement costs are also important objectives, they are largely outcomes of effective measurement and process improvement rather than the primary goal itself. The emphasis on measurements underscores a proactive approach to managing procurement activities, aiming for continuous enhancement rather than merely focusing on cost or process standardization.