Which statement below is not a purpose of Supplier Management procedures?

Question

Options

• AThat business transactions between all parties are recorded
• BThat information on the performance of all suppliers can be observed and acted upon
• CThat it is made clear that the supplier cannot subcontract part of the delivered services to the
• DThat the suppliers understand their obligation to the Service Provider

• A
  6% (2)
• B
  8% (3)
• C
  72% (26)
• D
  14% (5)

Explanation

Option C is the odd one out because Supplier Management does not prohibit subcontracting - it manages and governs it. The actual concern is ensuring that any subcontracting is visible, controlled, and that accountability flows back to the primary supplier; blanket prohibition is never the intent.

Options A, B, and D are all genuine purposes: recording business transactions (A) creates an audit trail and contractual accountability; monitoring supplier performance (B) enables continual improvement and informed decisions; and ensuring suppliers understand their obligations (D) underpins contract compliance and service quality.

Memory tip: Think of Supplier Management as a framework for visibility and accountability, not restriction. If an answer choice says something is forbidden or blocked, be suspicious - management processes govern relationships, they don't eliminate them.

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