2 Describe the eprocurement system and its advantages over t

2. Describe the e-procurement system and its advantages over the manual system. Are there any disadvantages to the electronic systems? Do you think the e-procurement system will ultimately replace the manual system? Why or why not? 3. What is the criterion for supplier selection? What is the current trend in terms of number of suppliers used?

Solution

2. E-procurement system is the system of procuring online instead of using manual system. This system helps the work to get faster and accurate. It also decreases manpower. However there are some problems occuring with the system like breakdown or failure but these occur very rare. This system has a fair chance of replacing the manual system if some precautions are taken and will be a good option. However the chances of security breach are high for electronic systems which are definately a threat and must be taken care of.

3.Supplier selection is an important factor which contributes to the successful functioning of the company. Currently the trend of maintaining a single supplier is off the rack. Organisations tend to keep two to three suppliers ,one having major share and other two minor shares. This helps in maintaining quality as well have having alternatives if it is not done by one supplier. This is a very beneficial system and is being followed by many companies.