CPM Technology and Information Systems in Purchasing Flashcards

An e-procurement system primarily enables organizations to:

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.

What does ERP stand for in the context of purchasing technology?

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.

A supplier portal in procurement technology is used to:

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.

Electronic Data Interchange (EDI) in purchasing refers to:

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.

Spend analytics software in procurement is primarily used to:

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.

Which term describes purchasing conducted through pre-negotiated contracts on an online marketplace?

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.