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.
Read the first 6 CPM Technology and Information Systems in Purchasing flashcards as text
Artificial intelligence in procurement is increasingly used to:
Answer: Automate routine tasks and provide predictive insights for smarter buying decisions
AI tools in procurement automate invoice processing, flag anomalies in spend data, predict supply risks, and recommend preferred suppliers or pricing benchmarks.
RFID technology in supply chain management is used to:
Answer: Track inventory and assets in real time using radio frequency tags
RFID tags attached to goods or assets transmit identification and location data wirelessly, enabling real-time visibility across warehouses, transit, and production floors.
Blockchain technology in procurement offers the primary benefit of:
Answer: Creating an immutable, shared record of transactions that enhances traceability and trust
Blockchain provides a decentralized, tamper-proof ledger shared among supply chain partners, improving transparency and traceability from raw material to finished product.
A supplier information management (SIM) system centralizes which type of data?
Answer: Supplier profiles, certifications, financial health, and compliance documentation
SIM systems maintain a master repository of supplier data—including contact information, certifications, insurance documents, and performance history—to support qualification and risk assessment.
Data analytics in procurement helps purchasing managers identify 'maverick spending,' which refers to:
Answer: Purchases made outside of approved contracts or procurement channels
Maverick spending occurs when employees bypass approved suppliers and contracts, resulting in lost negotiated discounts, compliance risks, and reduced spend visibility.
Which procurement technology term describes integrating purchasing systems directly with supplier systems for automated order transmission?
Answer: System-to-system integration
System-to-system integration (also called PunchOut or cXML integration) allows the buyer's ERP or e-procurement platform to communicate directly with supplier systems to automate ordering.