CPM Technology and Information Systems in Purchasing Flashcards
6 cards from real CPM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
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A purchase order management system helps organizations primarily by:
Answer: Tracking, approving, and managing purchase orders throughout their lifecycle
PO management systems automate order creation, route approvals based on spending thresholds, track order status, and match receipts to invoices for efficient processing.
What is a three-way match in accounts payable and purchasing?
Answer: Verifying that the purchase order, receiving report, and supplier invoice agree before payment
Three-way matching validates that the PO quantity and price, goods receipt quantity, and supplier invoice all agree before authorizing payment, preventing errors and fraud.
Which technology uses algorithms to automatically route purchase requisitions through the correct approval chain based on rules?
Answer: Workflow automation
Workflow automation engines apply pre-configured business rules to route requisitions and POs to the right approvers based on dollar thresholds, commodity type, or department.
Robotic Process Automation (RPA) in procurement can be used to:
Answer: Automate repetitive tasks such as invoice data entry and PO creation
RPA bots execute high-volume, rule-based procurement tasks—like extracting invoice data, matching documents, and updating ERP records—faster and with fewer errors than manual processing.
What is the primary advantage of using cloud-based procurement software over on-premise systems?
Answer: Cloud systems offer faster deployment, automatic updates, and lower upfront IT investment
Cloud procurement platforms reduce capital expenditure on hardware, are updated automatically by the vendor, and can be deployed and scaled faster than on-premise installations.
In procurement technology, a contract lifecycle management (CLM) system is used to:
Answer: Automate and track contracts from creation through execution, renewal, and expiration
CLM systems centralize contract creation, negotiation, approval, storage, and renewal tracking to ensure compliance, reduce risk, and capture negotiated savings.