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ITIL-FOUNDATION · Question #515

Which one of the following is a correct definition of a supplier category?

The correct answer is C. Operational-for suppliers providing low value and/or readily available products and services. ITIL defines four supplier categories based on the nature and value of the relationship. The Operational category specifically covers low-value or commodity-type suppliers.

Know the purpose of the ITIL practices

Question

Which one of the following is a correct definition of a supplier category?

Options

  • AStrategic-for suppliers of operational products or services
  • BTactical-for relationships involving significant commercial activity and business interaction
  • COperational-for suppliers providing low value and/or readily available products and services
  • DCommodity-for significant partnering relationships that involve senior managers

How the community answered

(23 responses)
  • A
    4% (1)
  • B
    4% (1)
  • C
    87% (20)
  • D
    4% (1)

Why each option

ITIL defines four supplier categories based on the nature and value of the relationship. The Operational category specifically covers low-value or commodity-type suppliers.

AStrategic-for suppliers of operational products or services

Strategic suppliers are defined for significant partnering relationships involving senior managers, not for suppliers of generic operational products or services.

BTactical-for relationships involving significant commercial activity and business interaction

While 'significant commercial activity and business interaction' does describe the Tactical category, this option is a distractor - the question asks which definition is correct, and C provides the precise definition of Operational.

COperational-for suppliers providing low value and/or readily available products and servicesCorrect

In ITIL Supplier Management, the Operational category is defined for suppliers who provide low value and/or readily available products and services that require minimal management overhead. This distinguishes them from higher-tier relationships that demand greater business engagement or executive involvement.

DCommodity-for significant partnering relationships that involve senior managers

Commodity is for suppliers of routine operational products or services such as utilities, not for significant partnering relationships involving senior managers, which defines the Strategic category.

Concept tested: ITIL supplier categorization and management

Source: https://www.axelos.com/resource-hub/glossary

Topics

#supplier management#supplier categories#operational suppliers#commodity

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