In vendor selection, what is the most important reason for a reference check?
A.
To independently verify and validate a vendor’s claim
B.
To verify products by other customers
C.
To obtain financial information for vendor negotiation
D.
To identify customers not mentioned on the reference list
The Answer Is:
A
This question includes an explanation.
Explanation:
The most important reason for areference checkinvendor selectionis toindependently verify and validate a vendor’s claim(A). Reference checks involve contacting the vendor’s previous or current clients to confirm claims about performance, reliability, and service quality, ensuring the vendor can meet contractual obligations. This aligns withvendor management best practicesto mitigate risks by validating vendor credibility.
Verify products by other customers (B):Too narrow; reference checks focus on overall performance, not just products.
Obtain financial information (C):Financial data is obtained through financial due diligence, not reference checks.
Identify customers not mentioned (D):Not a primary goal; the focus is on validating provided references.
[Reference:EPI CITM study guide, under Vendor Selection/Management, likely covers due diligence processes, emphasizing reference checks for validation. Check sections on vendor evaluation or due diligence., ]
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