C_ARSUM Ariba Supplier Management Practice Question
What occurs when a supplier is marked as 'Preferred' in the SAP Ariba supplier management solution?
⚠ Common exam trap
Candidates often assume that 'Preferred' status automatically restricts users from buying from other suppliers, whereas the system actually provides a visual indicator to guide rather than force the user's choice.
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
✓
Buyers receive a visual indicator when selecting the supplier in the buying process.
The 'Preferred' status is a strategic designation used to guide internal users toward suppliers who have been vetted and approved for high-volume or high-value business. It helps consolidate spend and increase compliance by ensuring employees select high-quality vendors. From a system perspective, it provides a visual indicator to buyers, directly influencing the user experience in the Buying module to favor preferred vendors over non-preferred alternatives, effectively streamlining the procurement process.
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 invited to all future sourcing events.
Why it's wrong here
Preferred status does not imply automatic participation in every event. Participation is determined by event templates and specific sourcing requirements. Automatic invitations would lead to 'bid fatigue' for suppliers and could result in irrelevant RFPs being sent to vendors not suited for specific procurement opportunities.
- ✓
Buyers receive a visual indicator when selecting the supplier in the buying process.
Why this is correct
The preferred status acts as a guide for buyers, showing a visual marker within the buying interface. This prompts buyers to favor these suppliers for transactions, which supports the organization's procurement strategy by driving spend toward vendors with established contracts and proven quality, improving overall operational efficiency.
- ✗
The system automatically increases the supplier's performance score.
Why it's wrong here
Performance scores are based on objective metrics gathered from surveys and transactional performance, not status labels. Increasing a score based on a 'preferred' tag would invalidate the data, as performance metrics should remain unbiased and reflect the actual service delivery of the supplier, not their classification.
- ✗
The supplier is exempt from all future performance reviews.
Why it's wrong here
Preferred status does not mean the supplier is exempt from review; in fact, preferred status usually requires ongoing monitoring to ensure the vendor maintains high standards. Removing performance reviews would create a compliance risk, as the organization would lose visibility into whether the vendor continues to perform.
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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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