SAP Certified Application Associate – SAP S/4HANA Sourcing and Procurement – Upskilling (2021) — Question 10

You want to identity the spend of purchase orders that do NOT have a contract reference, although an existing contract could have been used.
What key performance indicator (KPI) provides this information?

Answer options

• A. Off contract spend
• B. Contract leakage
• C. Purchase order value
• D. Unused contracts

Correct answer: B

Explanation

The correct answer is B, Contract leakage, as it specifically refers to spending that occurs outside of existing contracts, highlighting the potential for cost savings. Options A, C, and D do not directly address the scenario of identifying expenditures that should have utilized a contract reference.