ITIL 4 Foundation Practice Exam

What is one key activity of supplier management?

1. Supplier categorization

2. End-user training

3. Incident resolution

4. Daily operations management

The correct answer is: Supplier categorization

Supplier management is a crucial practice within ITIL, focusing on ensuring that an organization's suppliers and their contributions to services are effectively managed. A key activity within supplier management is supplier categorization. This involves analyzing and categorizing suppliers based on various criteria such as the criticality of the services they provide, their performance, and the risks associated with them. By categorizing suppliers, organizations can implement more targeted management strategies that align with their overall service value chain and ensure they obtain maximum value from supplier relationships. In contrast, end-user training is more closely related to service management and user experience, rather than supplier management specifically. Incident resolution relates to managing incidents and ensuring that service interruptions are handled swiftly, which falls under incident management rather than supplier management. Daily operations management focuses on the ongoing operational activities of services rather than the oversight of suppliers. Understanding the distinction and relevance of these activities underlines the significance of supplier categorization in maintaining effective supplier relationships and overall service quality.