Certified Professional Public Buyer (CPPB) Practice Test

Which activity is typically part of the evaluation phase of supplier selection?

1. Finalizing contracts

2. Conducting supplier demonstrations

3. Setting budget limits

4. Initiating market research

The correct answer is: Conducting supplier demonstrations

Conducting supplier demonstrations is a key activity during the evaluation phase of supplier selection because it allows procurement professionals to assess the capabilities and effectiveness of potential suppliers. This phase is critical for employers to gain a firsthand understanding of how a supplier's products or services perform in a real-world setting. During demonstrations, suppliers showcase their offerings, which enables evaluating their quality, functionality, and suitability for the specific needs of the organization. This hands-on approach helps decision-makers gather valuable insights and facilitates comparisons among competitors, leading to a more informed selection process. Finalizing contracts is typically part of the contract negotiation and award phase, where the terms of service and pricing are completed. Setting budget limits is generally an earlier planning activity, done before the evaluation phase to ensure that subsequent evaluations align with the financial constraints of the organization. Initiating market research usually occurs prior to the evaluation phase to gain an understanding of the available suppliers and their offerings.