C_ARSUM Ariba Supplier Management Practice Question
A supplier manager is reviewing a supplier's profile in SAP Ariba Supplier Management and notices that the supplier has a 'Preferred' status for the IT Hardware commodity. The manager wants to understand what this status implies for sourcing events. What does the 'Preferred' status indicate?
⚠ Common exam trap
The trap here is assuming that a favorable status like Preferred grants automatic business or, conversely, acts as a restriction, when it is only a recommendation indicator.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
The supplier has been identified as a recommended or favored supplier for the IT Hardware commodity.
Preferred status in SAP Ariba Supplier Management marks a supplier as recommended or favored for a particular commodity. It guides sourcing teams toward suppliers with favorable qualification, performance, or strategic value, supporting better sourcing decisions. It does not automatically award contracts, block participation, or indicate remediation. The status is commodity-specific, so a supplier can be preferred for one commodity and not another.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
The supplier is automatically awarded all contracts in the IT Hardware commodity.
Why it's wrong here
Preferred status does not automatically award contracts. It signals a favorable standing that may influence sourcing decisions, but contracts still follow the normal sourcing and award process. Automatic award would bypass competitive bidding and approval controls, which is not how the status functions in SAP Ariba Supplier Management.
- ✗
The supplier has failed qualification and is under remediation for IT Hardware.
Why it's wrong here
Preferred status is granted to suppliers in good standing, not to those under remediation. A supplier under remediation would typically have a conditional or disqualified status. Interpreting preferred as a failure indicator inverts the meaning and would cause the manager to misjudge the supplier's standing in the IT Hardware commodity.
- ✗
The supplier is blocked from participating in any sourcing events for IT Hardware.
Why it's wrong here
Preferred status is a positive designation, not a restriction. Blocked or disqualified statuses prevent participation, but preferred status encourages consideration. Confusing the two would lead a sourcing team to exclude a favored supplier, which contradicts the purpose of the designation and could reduce competition unnecessarily.
- ✓
The supplier has been identified as a recommended or favored supplier for the IT Hardware commodity.
Why this is correct
Preferred status indicates that the supplier is recommended or favored for a specific commodity, often based on qualification, performance, or strategic fit. It helps sourcing teams identify suppliers to invite or prioritize, but it does not bypass sourcing rules or automatically award business. It is a guidance indicator within the commodity context.
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JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official SAP exam blueprint
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