Tutorial 3 (1pm)

What is the primary purpose of e-procurement in digital business?

• Increase product prices

• Automate and digitize the purchasing process

• Outsource procurement activities

• Replace all suppliers with AI

Answer explanation

The primary purpose of e-procurement is to automate and digitize the purchasing process, making it more efficient and streamlined, rather than increasing prices, outsourcing, or replacing suppliers with AI.

Which of the following is NOT a benefit of e-procurement?

• Enhanced transparency

• Improved supplier management

• Increased paperwork

• Cost efficiency

Answer explanation

Increased paperwork is NOT a benefit of e-procurement. Instead, e-procurement aims to reduce paperwork by automating processes, leading to enhanced transparency, improved supplier management, and cost efficiency.

True or False: E-procurement can enhance customer experience by ensuring timely delivery.

• True

• False

Answer explanation

True. E-procurement streamlines purchasing processes, leading to better inventory management and timely deliveries, which ultimately enhances the customer experience.

How does e-procurement contribute to data-driven decision-making?

• Through market speculation

• By offering real-time sales data

• By providing procurement analytics and insights

• Through social media tracking

Answer explanation

E-procurement enhances data-driven decision-making by providing procurement analytics and insights, allowing organizations to analyze spending patterns, supplier performance, and market trends effectively.

One major challenge of implementing e-procurement is:

• Too much automation

• Integration with legacy systems

• Overuse of physical paperwork

• Too many suppliers

Answer explanation

Integration with legacy systems is a major challenge in e-procurement as it often involves complex compatibility issues, making it difficult to streamline processes and fully leverage the benefits of automation.

True or False: E-procurement systems cannot be integrated with other digital systems like ERP or CRM.

• False

• True

Answer explanation

The statement is False because e-procurement systems can indeed be integrated with other digital systems like ERP (Enterprise Resource Planning) and CRM (Customer Relationship Management), enhancing overall business efficiency.

Which of the following is a key risk associated with e-procurement?

• Manual invoice handling

• Cybersecurity threats

• Reduced supplier collaboration

• Lack of digital tools

Answer explanation

Cybersecurity threats are a significant risk in e-procurement as sensitive data is often transmitted online, making it vulnerable to breaches. Other options, while relevant, do not represent key risks as directly as cybersecurity.

What is a common human-related barrier to e-procurement adoption?

• High customer demand

• Regulatory complexity

• Resistance to change

• Low market competition

Answer explanation

Resistance to change is a common barrier to e-procurement adoption, as individuals may be hesitant to shift from traditional methods to new technologies, impacting overall implementation and acceptance.