CPM CPM Technology and Information Systems in Purchasing 1 — Questions and Answers
Question 1: An e-procurement system primarily enables organizations to:
- Automate payroll processing
- Conduct purchasing activities electronically, from requisition to payment (Correct answer)
- Replace all human buyers with software robots
- Manage employee benefits enrollment
Correct answer: Conduct purchasing activities electronically, from requisition to payment
E-procurement platforms digitize and automate the entire purchasing cycle—from requisition and approval through ordering, receipt, and payment—improving speed, compliance, and visibility.
Question 2: What does ERP stand for in the context of purchasing technology?
- Electronic Requisition Processing
- Enterprise Resource Planning (Correct answer)
- External Request Protocol
- Equipment Replacement Program
Correct answer: Enterprise Resource Planning
Enterprise Resource Planning (ERP) systems integrate all core business processes—including purchasing, finance, HR, and operations—into a single unified platform.
Question 3: A supplier portal in procurement technology is used to:
- Allow customers to self-service their own orders
- Enable suppliers to view POs, submit invoices, and communicate with buyers online (Correct answer)
- Manage internal employee purchase requests
- Store archived paper contracts digitally
Correct answer: Enable suppliers to view POs, submit invoices, and communicate with buyers online
A supplier portal gives vendors direct online access to purchase orders, delivery schedules, payment status, and communication tools, streamlining collaboration.
Question 4: Electronic Data Interchange (EDI) in purchasing refers to:
- Internal email communication between departments
- Standardized electronic exchange of business documents between trading partners (Correct answer)
- Digital signature capture on paper contracts
- Internet-based supplier discovery platforms
Correct answer: Standardized electronic exchange of business documents between trading partners
EDI enables the automated, computer-to-computer exchange of structured business documents (POs, invoices, ASNs) in standardized formats between buyers and suppliers.
Question 5: Spend analytics software in procurement is primarily used to:
- Generate marketing reports
- Analyze purchasing data to identify savings opportunities and manage categories (Correct answer)
- Schedule supplier site visits
- Automate accounts payable journal entries
Correct answer: Analyze purchasing data to identify savings opportunities and manage categories
Spend analytics tools aggregate and classify purchasing data to reveal spending patterns, maverick buying, consolidation opportunities, and category benchmarks.
Question 6: Which term describes purchasing conducted through pre-negotiated contracts on an online marketplace?
- Spot buying
- Catalog purchasing (Correct answer)
- Reverse auctioning
- Consignment buying
Correct answer: Catalog purchasing
Catalog purchasing allows employees to order from pre-approved supplier catalogs with pre-negotiated prices loaded into the e-procurement system, ensuring compliance.
CPM CPM Technology and Information Systems in Purchasing 1
An e-procurement system primarily enables organizations to: