C_ARSUM Ariba Supplier Management Practice Question
What is the primary function of a 'Preferred' status in SAP Ariba Supplier Management?
⚠ Common exam trap
Candidates frequently confuse 'Preferred' status with 'Qualified' or 'Approved' status, failing to recognize that 'Preferred' is a high-level strategic designation for specific categories rather than a baseline requirement.
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 identify a vendor as a recommended choice for specific categories
The 'Preferred' status is an optional, high-level designation used to signal that a supplier is the organization's top choice for specific categories. It helps guide procurement users to use approved and high-performing vendors. This status is typically applied after a supplier has completed all necessary qualifications and is meant to influence buying behavior, ensuring corporate spend is directed toward vetted and strategically aligned suppliers.
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 automatically grant the supplier access to all sourcing events
Why it's wrong here
Preferred status is a categorization for internal procurement guidance and does not automatically grant event access. Event access is controlled via invitation lists in the Sourcing module, ensuring only invited participants can respond to specific RFIs or RFPs, regardless of their preferred status designation.
- ✗
To indicate that a supplier has passed all compliance checks
Why it's wrong here
Passing compliance checks is a requirement for being a 'Qualified' supplier, not necessarily a 'Preferred' one. A supplier can be qualified (compliant) but not preferred (not a strategic or primary choice). Preferred status implies a higher level of strategic endorsement beyond basic compliance.
- ✓
To identify a vendor as a recommended choice for specific categories
Why this is correct
Preferred status is specifically used to highlight vendors that the company wants to prioritize. By marking a supplier as preferred for specific categories or regions, procurement users see this recommendation in the buying process, which drives better spend consolidation and leverages negotiated pricing with trusted partners.
- ✗
To disable the supplier from being used in any transactions
Why it's wrong here
Disabling a supplier is handled via the 'Inactive' or 'Blocked' status. The 'Preferred' status has the opposite effect; it is meant to increase visibility and usage of the supplier. Using it to block transactions would be a complete misuse of the functional status definition.
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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.