Companies Purchase Supplies Question Answer 2022

Answers need to present in the point form, include 125 words for each question. Outline the two main methods by which companies purchase supplies and the two broad divisions of supplies needed. What are the organizational implications of introducing e-procurement?

E-Business

Question.1
Outline the two main methods by which companies purchase supplies and the two broad
divisions of supplies needed.
Two methods:
Market Purchasing: It means to purchase goods for receiving benefits of better market
conditions. Purchase is not made to fulfil present demands but for future needs also. This is
useful when future demands are measured perfectly and the purchase is made when good market
situations are there.
Contract Purchasing: The purchasing in the contract generally formal, of demanding materials,
providing of which is regularly spread over for a particular time period. A particular material
quantity is contracted to be delivered and purchased in the near future (Hugos, 2018).
Two Divisions:
Integration: It means that everyone concerned in the manufacturing process that collaborates
and communicates. Integrated groups work together to make sure the goods get to distribution
division.
Operations: Daily operations are the backbone of manufacturers working. Managers regulate
the work performance and assure that processing is on track (Hugos, 2018).

Question 2
What are the organizational implications of introducing e-procurement?
There are certain implications of introducing e-procurement are:
Reduced cost: It saves money by protecting replacement spending, saving associated cost by the
paper-based system, leveraging volume purchasing.
Enhanced productivity: This system is very less time taking than old procurement. Records are
stored in electronically manner makes very easy to fill reusable tenders (Laudon and Traver,
2016).
Reduce Paperwork: With the system, all data and information are stored and saved in an
electronic manner. There is no requirement of the room to save the information.
Standardized Purchasing: Regulating electronic purchase makes it very easy for each
department to ensure organization procurement standards (Laudon and Traver, 2016).
Improved transaction speed: This is efficient and time-saving as well. With the electronic
controlling of actions simplifies and supports the buying process, transaction speed is improved.

References
Hugos, M.H., 2018. Essentials of supply chain management. John Wiley & Sons.
Laudon, K.C. and Traver, C.G., 2016. E-commerce: business, technology, society.