Certified Professional Public Buyer (CPPB) Practice Test

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What is the purpose of electronic sourcing?

To limit supplier options to local vendors
To obtain bids from different suppliers via a single online portal
To negotiate contracts only in person
To enhance verbal communication skills in procurement

The correct answer is: To obtain bids from different suppliers via a single online portal

The primary purpose of electronic sourcing is to obtain bids from different suppliers via a single online portal. This approach streamlines the procurement process by allowing buyers to access multiple supplier offerings quickly, facilitating comparisons and ultimately leading to better decision-making. Electronic sourcing systems enable organizations to gather information and bids in a centralized platform, increasing efficiency and transparency while allowing for a wider reach to various suppliers, not just local ones. By utilizing an online portal, procurement professionals can ensure that they receive a diverse range of bids, promoting competitive pricing and enhancing the overall quality of goods and services acquired. This method also allows for easier tracking of supplier performance and communication, which can further optimize future sourcing endeavors. In contrast, limiting supplier options to local vendors, conducting negotiations only in person, and focusing on enhancing verbal communication skills may not effectively leverage the benefits that electronic sourcing provides.