C_ARSUM Ariba Supplier Management Practice Question
What is the primary benefit of using a 'Preferred' supplier status in SAP Ariba?
⚠ Common exam trap
Candidates often assume preferred status automatically blocks other suppliers or represents a legal contract, missing that it simply guides internal users during requisitioning.
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
✓
To prioritize these suppliers during the procurement process.
The 'Preferred' supplier status signals to the entire organization which vendors are strategically chosen for specific commodities or regions. This status is highly visible during the requisitioning process, encouraging users to select preferred suppliers over non-preferred ones. This drives compliance with negotiated contracts, achieves better pricing, and ensures that the company leverages its consolidated spend volume to gain favorable terms, while also simplifying the purchasing experience for employees.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
To increase the number of suppliers in the database.
Why it's wrong here
Preferred status is about vendor consolidation and quality, not quantity. Increasing the number of suppliers without a strategic focus would lead to 'tail spend' fragmentation and inefficiency. The goal is to focus on a smaller, high-quality group of suppliers, not to inflate the number of vendors in the system.
- ✓
To prioritize these suppliers during the procurement process.
Why this is correct
Preferred status acts as a guide for buyers, ensuring they choose vendors that the company has already vetted and with whom strategic pricing and service terms have been negotiated. This reduces risk and improves the bottom line by ensuring that business is directed to reliable, cost-effective partners, while minimizing administrative costs.
- ✗
To hide all other suppliers from the user interface.
Why it's wrong here
Preferred status does not restrict the visibility of non-preferred suppliers; it merely acts as a visual indicator. Users can still select other suppliers if necessary, although it might trigger an exception. This allows for flexibility while still promoting the use of preferred vendors, balancing control with operational needs.
- ✗
To automatically grant these suppliers access to all internal systems.
Why it's wrong here
Preferred status is a procurement designation and does not grant any technical or system-level access permissions. It is strictly a business-process label. Granting system-level access based on procurement preference would be a massive security breach and is not supported by the design of the SAP Ariba supplier management modules.
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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
This C_ARSUM practice question is part of Courseiva's free SAP certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the C_ARSUM exam.