What is the usual outcome of the supplier selection stage?

Prepare for the CIPS Commercial Negotiation Test. Use our flashcards and multiple-choice questions. Each question comes with hints and explanations to ensure you're exam-ready!

The supplier selection stage is critical in the procurement process, focusing on identifying and selecting the suppliers who will be invited to participate in the tendering process. This stage involves assessing potential suppliers based on various criteria, such as their capabilities, reliability, and cost-effectiveness, to determine which ones align best with the organization's needs and requirements.

Choosing suppliers to invite for tendering is the logical outcome of this stage, as it sets the foundation for the following steps in the procurement process, including negotiations and contract finalization. Once suppliers are selected, they can compete for the contract, and this competitive aspect can lead to better pricing and value for the purchasing organization.

In contrast, while commercial negotiation is a crucial part of supplier interactions, it typically comes after suppliers have been chosen. Finalizing contracts with selected suppliers occurs later in the process and is contingent upon the results of negotiations. Similarly, beginning the bid evaluation process follows the tendering phase and is also part of the larger procurement strategy rather than a direct outcome of supplier selection. Thus, the correct answer accurately reflects the intended focus of the supplier selection stage.

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