Question

You are a buyer who is responsible for managing a category group that includes MROs and general services exclusively. In executing the purchasing process what should your primary concern be?

Note: only one answer is correct!

A. Carefully govern the spending and try to avoid the proliferation of multiple spot, supplier contracts.

B. Scout the market globally, as finding suppliers for these items is very difficult at the local level..

C. Be aware of the market conditions, as prices for these items are very variable according to economic and financial trends.

D.Try to buy customized goods and services that satisfy the specific requests of the final users as much as possible.

Explain your answer

Answer 1

The primary concern when managing MROs and general services should be to carefully govern spending and prevent multiple spot contracts, streamlining the procurement processes and achieving cost efficiency.

Step-by-step explanation:

When you are a buyer responsible for managing a category group that includes Maintenance, Repair, and Operations (MRO) and general services, the primary concern in executing the purchasing process should be to carefully govern the spending and avoid the proliferation of multiple spot, supplier contracts. The correct answer to the question is A. Carefully govern the spending and try to avoid the proliferation of multiple spot, supplier contracts.

MRO and general services are often recurring needs within a company and their procurement can be standardized to some extent. This approach helps streamline processes, controls costs, and ensures consistency in quality and delivery times. For example, instead of having numerous individual contracts with different terms and prices, a consolidated approach through preferred suppliers can lead to better negotiated rates and more efficient order processes. It also reduces the administrative burden and helps prevent maverick spending, which is when employees purchase outside of contracted agreements, often at higher prices.