Certification in Supplier Diversity Practice Exam

Which of the following is NOT a step to take when building a spend database?

1. Establishing mapping between category codes

2. Creating a new supplier database without existing data

3. Performing supplier mapping

4. Refining mapping with financial systems data

The correct answer is: Creating a new supplier database without existing data

When building a spend database, creating a new supplier database without existing data is not a recommended step. An effective spend database should be built on a foundation of relevant existing information, which allows for better analysis and understanding of past spending patterns. Utilizing existing data minimizes the risk of overlooking valuable insights that can enhance supplier diversity strategies, promote informed decision-making, and ensure that you can effectively categorize and manage your suppliers. Establishing mapping between category codes is essential, as it helps to organize and standardize the classifications of goods and services purchased. Performing supplier mapping is critical to align suppliers with the accurate spend categories and ensure that all supplier-related data is consistently represented. Furthermore, refining mapping with financial systems data enhances accuracy and allows for a more holistic view of spending by integrating financial insights into the supplier information. These steps are vital for a comprehensive and functional spend database that effectively supports diversity initiatives.