To check whether there is any opportunity to consolidate spend, which of the following should be priority of procurement team?

Procurement team is required to improve leverage with their suppliers through spend consolidation.

To check whether there is any opportunity to consolidate spend, which of the following should be priority of procurement team?
A . Spend analysis
B . Value engineering
C . Price analysis
D . Total cost analysis

View Answer

Answer: A

Explanation:

In order to identify opportunities where you can increase your leverage with supplier, you need to understand your spend. Undertaking spend analysis of your accounts payable (AP) data is an essential first step here.